AbstractEmerging over the last ten years from a protected and regulated role, the Steel Authority of India (SAIL) is now facing the realities of international competition. Using the principles and tools of total qualify management (TQM), SAIL is undergoing a total quality transformation. Poor quality has cost the company in terms of greater inventory, scrap costs, and by‐product ratings, and therefore values have been degraded. SAIL'S new companywide TQM program focuses on quality of products and services, human resources, continuous innovation, customer service and satisfaction, and capitalization of corporate resources.