TQM -v- six-sigma

Six Sigma is not just a new term for Total Quality Management (TQM) . They have many similarities and are compatible in many business environments. TQM has brought great improvements and value to many companies. Six Sigma can do more.

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TQM objectives
Total Quality Management (TQM) is a structured system for satisfying internal and external customers and suppliers by integrating the business environment, continuous improvement, and breakthroughs with development, improvement, and maintenance cycles while changing organizational culture. TQM aims for quality principles to be applied broadly throughout an organization or set of business processes.

TQM can be defined as:

A management philosophy for continuously improving overall business performance based on leadership, supplier quality management, vision and plan statement, evaluation, process control and improvement, product design, quality system improvement, employee participation, recognition and reward, education and training, and customer focus.

TQM involves six fundamental principles:

1. It is management’s responsibility to provide commitment, leadership, empowerment, encouragement, and the appropriate support to technical and human processes. It is top management’s responsibility to determine the environment and framework of operations within a firm. It is imperative that management foster the participation of the employees in quality improvement, and develops a quality culture by changing perception and attitudes toward quality.
2. The strategy, policy, and firm-wide evaluation activities are emphasized.
3. The importance of employee education and training is emphasized in changing employees’ beliefs, behavior, and attitudes; enhancing employees’ abilities in carrying out their duties.
4. Employees should be recognized and rewarded for their quality improvement efforts.
5. It is very important to control the processes and improve quality system and product design. The emphasis is on prevention of product defects, not inspection after the event.
6. Quality is a systematic firm-wide activity from suppliers to customers. All functional activities, such as marketing, design, engineering, purchasing, manufacturing, inspection, shipping, accounting, installation and service, should be involved in quality improvement efforts.

Six Sigma
Six Sigma is not just another quality initiative or process improvement program. It is more than that because it is a robust continuous improvement strategy and process that includes cultural methodologies such as the various TQM approaches. Six Sigma is complementary to TQM initiatives such as ISO 9000 registration, which is mainly procedural; Total Quality Management (TQM), which is mainly cultural, and Statistical Process Control (SPC), which is primarily statistical process control monitoring. All of these initiatives attempt to improve quality levels but typically reach a plateau. The Six Sigma approach goes to the next level.

Comparison with Six Sigma
TQM and Six Sigma have a number of similarities including the following:

• A customer orientation and focus
• A process view of work
• A continuous improvement mindset
• A goal of improving all aspects and functions of the organizations
• Data-based decision making
• Benefits depend highly on effective implementation

Differences between TQM and Six Sigma

• Six Sigma focuses on prioritizing and solving specific problems which are selected based on the strategic priorities of the company and the problems which are causing the most defects whereas TQM employs a more broad based application of quality measures to all of the company’s business processes.
• TQM tends to apply quality initiatives within specific departments whereas Six Sigma is cross functional meaning that in penetrates every department which is involved in a particular business process that is subject to a Six Sigma project.
• TQM provides less methodology in terms of the deployment process whereas Six Sigma’s DMAIC framework provides a stronger platform for deployment and execution. For example, Six Sigma has a much stronger focus on measurement and statistics which helps the company define and achieve specific objectives.
• The focus of TQM initiatives differs from the focus of Six Sigma programs. One, TQM programs focus on improvement in individual operations with unrelated processes. Six Sigma focuses on making improvements in all operations within a process. Two, Six Sigma involves dedicated, full-time resources—the “black belts”­ —versus TQM, which is usually a part-time activity of non-dedicated managers.
• The breadth and depth and the precision of Six Sigma and TQM also differ. Six Sigma has a well-defined project charter that outlines the scope of a project, financial targets, anticipated benefits, milestones, etc. It’s based on hard financial data and savings. In TQM, organizations go into a project without fully knowing what the financial gains might be. Six Sigma has a solid control phase (DMAIC – Define-Measure-Analyze-Improve-Control) that makes specific measurements, identifies specific problems, and provides specific solutions that can be measured.

Combining TQM with Six Sigma

Most of the methodologies have a good foundation and are beneficial. However, organizations use them as a way to brand their way forward strategies and then blame the lack of progress on employees. Subsequently, this creates a good excuse to downsize. Six Sigma is complementary to TQM because it can help to prioritize issues within a broader TQM program and provides the DMAIC framework which can be used to meet TQM objectives.

However, a methodology requires commitment and employee training. The leader starts with the vision and creates individual missions from the vision. The mission must be measurable so that the leader can track progress towards the vision.

The people believe rhetoric too easily when it comes from someone in authority. The current trend is rhetoric not supported by cash, or planned failure all dressed up to appeal to the masses. Capitalism is at its worst when it cannibalizes the organization. The organization is comprised of the people that it employs and serves. To capitalize on the gullibility of the customer and employee is the first sign that an organization is out of control (think Enron). Enron cannibalized their customers, employees, and stockholders while all the time branding a strategy to motivate everyone in the opposite direction.

So what is needed? Integrity, ethics, cash, commitment, and honesty. All of the things that the UK is supposedly founded upon, but apparently lacking. Many of us fight against false methodologies masquerading as TQM, Six Sigma, etc every day.

What do you think? Leave your comments below:

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Originally posted 2008-10-17 22:22:50.

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