Customer goodwill is very important in services. It makes the customer more tolerant when service problems occur. A service as mentioned earlier is a soical interaction. Relationship are the foundation stones on which the edifice of service is built. The more personalized a particular service, the more important it is build this relationship.The statistical process and quality control methods were good and necessary but not sufficient to give a company any competitive advantage. Industries realized that just like service equality product quality has several dimensions. It was also increasingly realized that quality does not merely come through meeting the product service specifications. Quality of a product ( and service) was seen to shine through the quality for the organization. Hence Total Quality Management ( TQM ) became a popular initiative in several organizations.