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Six Sigma and Total Quality Management (TQM): similarities, differences and
relationship
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Abdur Rahim
University of New Brunswick
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Abdur Rahim
Faculty of Business Administration,
University of New Brunswick,
P.O. Box 4400, Fredericton, NB E3B 5A3, Canada
Fax: 1-506-453-3561
Email: Rahim@unb.ca
Reference to this paper should be made as follows: Salah, S., Carretero, J.A.
and Rahim, A. (2009) ‘Six Sigma and Total Quality Management (TQM):
similarities, differences and relationship’, Int. J. Six Sigma and Competitive
Advantage, Vol. 5, No. 3, pp.237–250.
Biographical notes: Souraj Salah is a PhD candidate studying at the
Department of Mechanical Engineering at the University of New Brunswick,
Canada. He is a certified Master Black Belt working in manufacturing sector in
Canada.
1 Introduction
One key success factor for an organisation is how effectively it implements process
improvement methodologies. Among various process improvement methodologies, Total
Quality Management (TQM) and Six Sigma are two key methodologies widely used by
various organisations.
TQM has been a dominant management concept for continuous improvement
utilising Deming’s basic concepts including Plan-Do-Check-Act (PDCA) (Snee, 2004).
The Six Sigma Methodology is a well-disciplined and structured approach used to
enhance process performance and achieve high levels of quality. TQM and Six Sigma
share the same goals of pursuing customer satisfaction and business profit. However,
TQM cannot be fully replaced by the Six Sigma. On the other hand, TQM has not
achieved the radical results that have been achieved by Six Sigma (Yang, 2004).
2 Six Sigma
every product, achieving a high defect-free level is very necessary so that the combined
opportunity for failure stays as low as possible.
Table 1 Six Sigma levels and corresponding DPMO as adapted from Sheehy et al. (2002) and
Raisinghani et al. (2005)
In 1987, Motorola’s Six Sigma Quality Program was created by B. Smith (Devane,
2004). Also, W. Smith (Kumar et al., 2007) and Harry and Schroeder (2000) developed
the concepts of Six Sigma as a way to improve the reliability and quality of products.
The Six Sigma methodology starts with the identification of the need for an
improvement project. When the project starts, a financial analysis is performed to quantify
its expected financial savings. This is estimated based on an improvement target for a
certain measure of the outcome of a process. The process current performance is measured
and analysed for critical causes for improvement and solutions are implemented. The
performance is monitored and the achievement is proven by the end of the project based
on the data on hand. Antony (2008) indicated that Six Sigma helped organisations reduce
defect rates, reduce costs of operation and increase value for customers and shareholders.
Welch of GE claimed savings of hundreds of millions of dollars as a result of embracing
a Six Sigma methodology for process improvement. This reported success has helped
spread this methodology (Raisinghani et al., 2005). Welch’s commitment was essential to
the success of Six Sigma deployment as effective implementation depends heavily on
how passionate leadership is in its support (Antony, 2006).
Six Sigma principles include (Friday-Stroud and Sutterfield, 2007):
• aligning key processes and customer requirements with the strategic goals
• identifying champions for each project, obtaining necessary resources and
securing help to overcome the resistance to change
• instituting a standard measurement system and identifying appropriate metrics
• training, deploying improvement teams and setting stretch improvement goals.
3 TQM
Quality management evolved through different stages in the last several decades such as
inspection, control, assurance and TQM (Basu, 2004).
TQM has been a dominant management concept for continuous improvement
utilising Deming’s basic concepts of PDCA. TQM can be defined as a quality
management system or a corporate culture continuously evolving and consisting of
values and tools focusing on customer satisfaction and the use of fewer resources. There
are seven quality control tools and seven management tools frequently mentioned in the
TQM literature (Arnheiter and Maleyeff, 2005). The seven quality tools are as follows:
Six Sigma and TQM 241
• control charts
• histograms
• check sheets
• scatter plots
• cause and effect diagrams
• flowcharts
• Pareto charts
The seven management tools are as follows:
• affinity diagrams
• interrelationship diagraphs
• tree diagrams
• matrix diagrams
• prioritisation matrices
• process decision program charts
• activity network diagrams
Short and Rahim (1995) viewed TQM as a philosophy used by organisations to drive
Continuous Improvement (CI) across its business activities. TQM depends on the
effectiveness of how an organisation manages its human resources (Morrison and Rahim,
1993). Out of different aspects of individual human resources management, Yang (2006)
found that training, incentives and development had the greatest impact on TQM.
Six Sigma represents a new wave of the quality management evolution (preceded by
TQM evolution) towards operational excellence (Basu, 2004). The definition of TQM is
different from that of Six Sigma but the aims are similar (Anderson et al., 2006).
Six Sigma has additional data analysis tools and more financial focus than what is
found in TQM (Kwak and Anbari, 2004). TQM has a comprehensive approach that
involves and commits everyone in a company while Six Sigma has a project management
approach that is associated with a team (Anderson et al., 2006). Arnheiter and Maleyeff
(2005) have indicated that a number of components of Six Sigma can be traced back to
TQM. This explains that Six Sigma is an extension of TQM and that they both share
similar principles.
Snee (2007) suggested there are benefits for integrating Lean and Six Sigma with the
Baldrige assessment (a TQM model) and ISO9000. Antony (2004) stresses that it is
important to remember that Six Sigma has a better record than TQM since its inception in
the mid 1980s. Table 2 represents a summary of a literature review on Six Sigma, TQM
and their comparison:
242 S. Salah, J.A. Carretero and A. Rahim
It is seen from Table 2 that Six Sigma and TQM share common ground in terms of
theory, philosophical approach, CI focus, aims, principles, links to the teachings of
Deming, focus on people, approach to design, focus on customer, focus on process and
dependence on management support. On the other hand, Six Sigma and TQM are
different in terms of mutual relationship (Six Sigma can be seen as part of the holistic
TQM. TQM can help Six Sigma and Six Sigma extends TQM), financial focus and
scope, incentives and career development, strategic link, project selection approach,
training focus and intensity, team approach, structure, progress monitoring, basis for
motivation, tools, performance target, focus on suppliers and record of results. However,
these differences can be considered as additional strengths for the integration of TQM
and Six Sigma as the weaknesses of one are completed by the strengths of the other.
Based on observation of many firms, Lucas proposed that (Yang, 2004):
Current business system + Six Sigma = TQM (2)
Schroeder et al. (2008) proposed that the introduction of Six Sigma to organisations that
already have TQM would help them realise incremental benefits in their financial results
and customer service. The application of Six Sigma can help strengthen the values of
TQM within an organisation (Anderson et al., 2006). Thus, TQM and Six Sigma are
similar in many aspects and compatible with each other. They share numerous values and
aims and both can benefit from the advantages that each can provide where TQM can be
the holistic and comprehensive umbrella that reaches to all stakeholders and Six Sigma
can be the extension that provides a strong structure for achieving greater process
improvements. Six Sigma has roots traced back to TQM (Upton and Cox, 2008).
Six Sigma principles are embedded in TQM (Sheehy et al., 2002) and it could be seen as
a concept supporting the aims of TQM.
Figure 1 Integrated framework of TQM, Six Sigma and other business blocks (see online version
for colours)
246 S. Salah, J.A. Carretero and A. Rahim
Figure 1 explains more the high-level framework that shows how TQM and
Six Sigma are linked to other key building blocks in the business. The process
improvement and management is the block in the centre which plays a key role relative
to all other blocks. The operational excellence and customer satisfaction block on the
top represents a key goal for the business. All forms of management are directly
connected to the process improvement block including strategic management, initiative
management, change management, operations management, daily management, knowledge
management, human resources management and performance management. The training
block is stressed by being introduced as a block and finally the ‘change leadership and
culture building’ block is an important piece of this integrated framework. This
framework achieves an integration of management principles, implementation practices
and cultural changes.
5 Conclusion
TQM and Six Sigma are very powerful continuous improvement methodologies that
share common goals and grounds. They also complement each other and can be
integrated where Six Sigma can fit under the umbrella of TQM to form a better
methodology that overcomes the shortcomings of the individual methodologies.
Despite their differences, there are many areas where TQM and Six Sigma intersect
and there are compatible areas where one of them may excel forming an opportunity to
help the other one. Thus, the integration of the two was concluded to be possible and
beneficial. Also TQM and Six Sigma were presented as part of a framework for
continuous process improvement.
In sum, a thorough comparison between Six Sigma and TQM was performed in this
work. It was shown that TQM and Six Sigma are similar in many aspects and compatible
with each other. They both share numerous values and aims and can benefit from the
advantages that each can provide. More specifically, TQM can be the holistic and
comprehensive umbrella that reaches to all stakeholders and Six Sigma can be the
extension that provides a strong structure for achieving greater process improvements.
Acknowledgements
The financial assistance of NSERC for supporting this research is greatly appreciated.
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List of abbreviations
American Society for Quality (ASQ)
Continuous Improvement (CI)
Cost Of Poor Quality (COPQ)
Defects Per Million Opportunities (DPMO)
Define, Measure, Analyse, Design and Verify (DMADV)
Define, Measure, Analyse, Improve and Control (DMAIC)
Design For Six Sigma (DFSS)
General Electric (GE)
International Organisation for Standardisation (ISO)
Plan-Do-Check-Act (PDCA)
Quality Function Deployment (QFD)
Total Quality Management (TQM)