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As all the other managerial activities, total quality management (TQM) has also inputs into and outputs from the process. Therefore, the principal managerial efficiency criteria of maximum outputs with minimum inputs should be applied to TQM. In this paper, the methodology for the performance evaluation of TQM by Data Envelopment Analysis (DEA) was proposed. DEA is used to measure the efficiency of TQM for each firm withe the input and output data obtained by questionnaire. It is found that there are not significant differences between the firms with and without ISO9000 certification and between the large and small‐sized firms with respect to the TQM efficiency.

The purpose of this study is to analyze the efficiency of the service quality activity itself by using the DEA Model, in contrast to previous quality evaluation methods, as an attempt to evaluate the service quality activities of the distribution industry. Furthermore, by complementing the shortfalls of the weighted value of the DEA Model, it recommends a DEA/PS Model that is appropriate in the evaluation of service quality activities. Based on this model, the study proposes the SQAE Model, an evaluation tool to complement the traditional measuring method. According to the results of the analysis of 18 sample distribution businesses, there was a discrepancy by business in the results of the Traditional Scoring System and the Evaluation Measuring System. Therefore, it is most desirable to not only be active in service quality activities but also increase efficiency at the same time.