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will allow a business to minimize quality costs like customer complaints, waste, levels of reject, and product rework if it is needed. Quality costs will have a direct impact on the bottom line and profitability of a business. Therefore, a quality management system must be in place.

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These systems can be either formal or informal. Informal will be those systems that only exist by word of mouth, and are not documented. Informal systems will rely on supervision and management to ensure that the practices, products, and services of a business stay consistent. Informal systems do not often work as well as formal systems, which are documented. Informal systems will sometimes work within smaller businesses for a time, but formal systems are much preferred. Informals generally have a lack of clarity for the businesses aims and are harder to keep track of. Formals, on the other hand, allow a business to keep their activities documented and followed and the business' goals can be better tracked.

There are many reasons to have a quality management system that is formal and documented. With documentation, there will be both internal and external processes that will control products and services in a manner that customer specifications can be met with consistency. Documented systems allow legislative requirements to be met like personnel legislation, health and safety liability, product and service liability, worker welfare, environmental protection, and corporate social responsibility. Procedures will be in place in case of a product recall with a documented system. Procedures will also be in place for customer complaints. Employees will also be able to be trained more efficiently with a quality management documented system in place. It can also be improved upon more easily than an informal system.