Nowadays, due to high level of competition and survival request in a business world, it requires business firms to measure, analyze and improve their technology diffusion level as they encounter increasing competition from an ever-changing business environment. Thus, the research focuses on technology diffusion practice of metal industries by identifying the critical problems and propose a firm level total technology diffusion method and suggest possible improvement directions towards weak technology diffusion and what determines the speed of the technology diffusion? What are the consequences of diffusion? In the case company, the absence of coordination between diffuser and adopter make the diffusion slow. From this point of view the diffuser skilled man power, R&D and management role are factors for technology capability. On the other hand the adopter side, a capacity of adopting new technology is a factor for technology diffusion. To undertake this research, primary & secondary data were collected through a survey questionnaire, interviews and field visit/ physical observation in the case company as well as referring previous research works and case company records. To analyze and present the data, pie charts, cause and effect diagram are used and also presents a model that is system dynamics to address these problem. The two conditions which determined teechnology diffusion, increase the technology capability by improving the learning capability through R&D simultaneously in order to increase the marketing rate, it is possible to increase the number of adoption rate through advertising and word of mouse in the desired way.It was made possible by the iterative simulation.The quality improvement is the engine of diffusion, and it is carried out by diffuser and adopter. The speed of technology diffusion is affected by the diffuser and adopter in the economy.