Manufacturing units are often facing a challenge regarding the cost-reduction, product quality, and productivity in their operations, customer complaint and reduced customer relationship. To remain competitive, the industry must meet the optimal Production Lead Times and Prices, as well as provide outstanding customer service. As a result, companies are concentrating more on the needs and satisfaction of their customers. Mostly they use the Quality Management System to achieve the aforesaid objectives. This study focuses on the impact of Quality Management System on organizational performance in oil seal manufacturing plants at Madurai. Various literature reviews were studied and the hypothesis was framed. The analysis was done based on factors like customer satisfaction, product and process control, improved SCM, reduction in quality cost and improved employees’ involvement. The result was in favor of the study which suggested that the Quality Management System impacts the organization in a positive way.