Six Sigma Vs TQM

Six Sigma is a relatively new concept as compared

to Total Quality Management (TQM). However,
when it was conceptualized, it was not intended to
be a replacement for TQM. Both Six Sigma and
TQM have many similarities and are compatible in
varied business environments, including
manufacturing and service industries. While TQM
has helped many companies in improving the
quality of manufactured goods or services
rendered, Six Sigma has the potential of delivering
even sharper results.
Total Quality Management

Total Quality Management is often associated with
the development, deployment, and maintenance
of organizational systems that are required for
various business processes. It is based on a
strategic approach that focuses on maintaining
existing quality standards as well as making
incremental quality improvements. It can also be
described as a cultural initiative as the focus is on
establishing a culture of collaboration among
various functional departments within an
organization for improving overall quality.
Comparison To Six Sigma

In comparison, Six Sigma is more than just a
process improvement program as it is based on
concepts that focus on continuous quality
improvements for achieving near perfection by
restricting the number of possible defects to less
than 3.4 defects per million. It is complementary to
Statistical Process Control (SPC), which uses
statistical methods for monitoring and controlling
business processes. Although both SPC and TQM
help in improving quality, they often reach a stage
after which no further quality improvements can be
made. Six Sigma, on the other hand, is different as
it focuses on taking quality improvement processes
to the next level.
The basic difference between Six Sigma and TQM
is the approach. While TQM views quality as
conformance to internal requirements, Six Sigma
focuses on improving quality by reducing the
number of defects. The end result may be the
same in both the concepts (i.e. producing better
quality products). Six Sigma helps organizations in
reducing operational costs by focusing on defect
reduction, cycle time reduction, and cost savings. It
is different from conventional cost cutting measures
that may reduce value and quality. It focuses on
identifying and eliminating costs that provide no
value to customers such as costs incurred due to
waste.
TQM initiatives focus on improving individual
operations within unrelated business processes
whereas Six Sigma program focus on improving
all the operations within a single business process.
Six Sigma projects require the skills of
professionals that are certified as black belts
whereas TQM initiatives are usually a part-time
activity that can be managed by non-dedicated
managers.
Conclusion

Six sigma is also different from TQM in that it is fact based and data
driven, result oriented, providing quantifiable and measurable bottom-line
results, linked to strategy and related to customer requirements. It is
applicable to all common business processes such as administration,
sales, marketing and R & D. Although many tools and techniques used
in Six Sigma may appear similar to TQM, they are often distinct as in Six
Sigma, the focus is on the strategic and systematic application of the
tools on targeted projects at the appropriate time. It is predicted that Six
Sigma will outlast TQM as it has the potential of achieving more than
TQM.
Summary:
TQM was invented well before Six Sigma, and as
such, Six Sigma broadly inherited many of TQMs
principles.
The focus of TQM is general improvement using
collaborative and cultural approach to a problem,
while Six Sigma is more statistical and data driven.
TQM emphasizes increased performance levels; Six
Sigma stresses acceptance requirements and
minimum standards.
TQMs quality definition is where a product meets set
company standards, while Six Sigmas quality
definition is, to a larger part, determined by the
customer.
Focus on customers.
Improved customer loyalty.
Reduced cycle time.
Less waste.
Data-based decisions.
Time management.
Sustained gains and improvements.
Systematic problem solving.
Employee motivation.
Data analysis before decision making.
Faster to market.
Team building.
Improved customer relations.
Assure strategic planning..
Reductions of incidents.
Measure value according to the
customer.
Better safety performance.
Understanding of processes.
Effective supply chain management.
Design and redesign products/services.
Knowledge of competition, competitors .
Develop leadership skills.
Breakdown barriers between
departments and functions.
Management training.
Improve presentation skills.
Integration of products, services and distribution.
Use of standard operating procedures.
Better decision making.
Improving project management skills.
Sustained improvements.
Alignment with strategy vision, and values.
Increased margins.
Greater market share.
Supervisor training.
Lower costs to provide goods and services.
Fewer customer complaints.
These are only some of the benefits of six sigma. We
continue to discover additional benefits of six sigma
every time a project is completed.
Differences and Similarities Between Six Sigma and
TQM, total quality management.

A question we frequently get asked is the difference between Six Sigma
and TQM, total quality management. First of all, the tools are basically the
same, depending upon the level of TQM, total quality management,
sophistication.

If Six Sigma is used only at the project level to eliminate defects, it is an
incremental improvement approach with some structure and discipline.
This can be very valuable but misses much of the true value of Six Sigma
and the major differences between TQM, total quality management and
Six Sigma.
The real value of Six Sigma starts to show when
it is integrated with the organization's Strategic
Plan helping to implement that plan with a focus
on the paying customers. In order to achieve the
true benefits of Six Sigma, projects will cross
organizational boundaries and be focused on
business processes. This is relatively unusual
for most TQM, total quality management efforts.
Sustained strategic results can be achieved
when this is done. When applied to a business
process the benefits obtained move the
organization toward World Class Performance in
that business process
Following are some key areas with a typical TQM, total
quality management approach followed by the Six
Sigma approach.

1. Core Business:
TQM, total quality management
Frequently not part of the Business Strategy.
Quality Council did not include Senior Managers.
No bottom line accountability

Six Sigma
A strategy from the top of the Business Unit
Champions and Senior Management are the Quality
Council
Projects frequently have a profitability hurdle
Projects are carefully selected with managers
accountable.
2. Goals:
TQM, total quality management
Improve everything
Usually not targeted to a process or
business
Frequently without focus
No projected performance levels.
Six Sigma
3.4 defect per million opportunities
Targeted areas
Projects have a defined scope by
management.
Leadership:

TQM, total quality management
Frequently vocal strong supporters
Most places with active leadership succeeded at
some level
Most management treated it as a fashion
When supporters left so did TQM, total quality
management.

Six Sigma

Mostly successful as the top management
demands implementation
Management takes an active role in all
phases of Six Sigma
If management treats like TQM, Six Sigma
will have the same success/ failure.
Application:

TQM, total quality management

Learn the tools
Don't worry about the bottom line
Use as many tools as possible

Six Sigma
Black Belts are well trained
Projects are expected to meet objectives
Use only the tools necessary for the
projects
Significant improvement expected.
Change:

TQM, total quality management
Within departments
Incremental
Seldom based on customer critical criteria
No time urgency.

Six Sigma

Best results when focused on customer
Business process focus
Crosses departmental functions
Significant improvement for each project
Time frame part of scope.
Organization:
TQM, total quality management
Separate department
Not accountable to the business unit
Collection of "experts"
A career
Not a respected or strong area of the corporation
Parking place for ended careers.

Six Sigma
Champion reports within the Business
Black Belts are in the Business Unit
Black Belts are expected to return to line
function
Quality Council of Senior Leaders and
Champions.
Focus:
TQM, total quality management
Manufacturing
Products
Little on service
Little on logistics
Little on marketing.

Six Sigma
All business processes
Non-manufacturing are often the largest
opportunities.
Six Sigma VS. Total Quality Management (TQM)
TQM vs. Six Sigma
TQM Six Sigma
A functional specialty within the
organization.
An infrastructure of dedicated
change agents. Focuses on cross-
functional value delivery streams
rather than functional division of
labour.
Focuses on quality. Focuses on strategic goals and
applies them to cost, schedule and
other key business metrics.
Motivated by quality idealism. Driven by tangible benefit for a
major stakeholder group
(customers, shareholders, and
employees).
Loosely monitors progress toward
goals.
Ensures that the investment
produces the expected return.
People are engaged in routine duties
(Planning, improvement, and control).
Slack resources are created to change
key business processes and the
organization itself.
Emphasizes problem solving. Emphasizes breakthrough rates of
improvement.
Focuses on standard performance, e.g.
ISO 9000.
Focuses on world class performance, e.g.,
3.4 PPM error rate.
Quality is a permanent, full-time job.
Career path is in the quality profession.
Six Sigma job is temporary. Six Sigma is a
stepping-stone; career path leads
elsewhere.
Provides a vast set of tools and
techniques with no clear framework for
using them effectively.
Provides a selected subset of tools and
techniques and a clearly defined
framework for using them to achieve
results (DMAIC).
Goals are developed by quality
department based on quality criteria and
the assumption that what is enterprise
level to assure that local sub-optimization
does not occur.
Goals flow down from customers and
senior leadership's strategic objectives.
Goals and metrics are reviewed at the
enterprise level to assure that local sub-
optimization does not occur.
Developed by technical personnel. Developed by CEOs.
Focuses on long-term results. Expected
payoff is not well-defined.
Six Sigma looks for a mix of short-term
and long-term results, as dictated by
business demands.