This paper describes an application of processes called total quality management on the company Pekarsko-ugostiteljski obrt Fortuna. The company counts 15 employees with more than 20 years of successful business operations in Delnice, Gorski Kotar County. Total quality management is made by the teachings and theories of William Edwards Deming, Joseph M. Juran, Philip B. Crosby, Kaoru Ishikawa and Armand Feigenbaum. The teachings of the quality gurus contributed to the development of TQM as an efficient system which has the goal of maximizing customer satisfaction by optimizing processes within the company. Total quality management contains more than 50 techniques and methods used in various aspects of the business, some of them are: Plan-do-check-act cycle, fish-bone chart, cause and effect diagram, and others. Following the identification of defects in the business, perspective of total quality management gives the most appropriate methods or tools that help in optimizing processes in more economical way. Two of the company’s processes was observed in the paper, the way in which the company stores the raw materials and the process of wholesale. The analysis of the storage process brings forward the complexity of the process, the company inefficiently store raw materials in more scattered warehouses. Solution to storage defect is achieved by merging all warehouses into one, and by implementing a simple system that tracks the entry and exit time of raw materials from warehouse to prevent the build-up or lack of supplies for production in progress. Wholesale is the other process that was observed and analyzed. Most complex process of Fortuna’s business is wholesale, a process that requires a lot of information to predict the demand for daily fresh products. Through the prism of total quality management, the defect was identified in the quantity of return products from customers. Defect was solved by establishing a flow of information between the network of contacts that make up the suppliers, clients and associates of Fortuna. After a long period of implementation and optimizing, the company is expected a reduction in return products for 5 up to 10%. The conclusion puts emphasis on a constant commitment of management to the process as a condition for successful implementation of total quality management on every company.