Premium Essay

Six vs Tqm

In:

Submitted By maqdoom
Words 9146
Pages 37
Int. J. Six Sigma and Competitive Advantage, Vol. x, No. x, xxxx

1

Six Sigma and Total Quality Management: different day, same soup? Bengt Klefsjö* and Bjarne Bergquist
Division of Quality and Environmental Management, Luleå University of Technology, SE-971 87 Luleå, Sweden E-mail: Bengt.Klefsjo@ltu.se E-mail: Bjarne.Bergquist@ltu.se *Corresponding author

Rick L. Edgeman
Department of Statistics, University of Idaho, Moscow, Idaho 83844-1104, USA E-mail: redgeman@uidaho.edu
Abstract: For decades now TQM has been a dominant management concept for improving competitiveness and financial results. In recent years, however, TQM seems to have lost some of its nimbus with other concepts and approaches such as Lean Enterprise and Six Sigma launched and increasingly in vogue. The aim of this paper is to look at TQM and Six Sigma, their backgrounds, definitions and ingredients, and their similarities and differences to see whether the two concepts really are different dishes or contain the same ingredients in different proportions. Keywords: quality; Quality Management; Six Sigma; Total Quality Management (TQM). Reference to this paper should be made as follows: Klefsjö, B., Bergquist, B. and Edgeman, R.L. (xxxx) ‘Six Sigma and Total Quality Management: different day, same soup?’, Int. J. Six Sigma and Competitive Advantage, Vol. x, No. x, pp.xxx–xxx. Biographical notes: Bengt Klefsjö is a Professor of Quality Technology and Management at Luleå University of Technology in Sweden. He has published over 100 papers in Reliability Theory and Applications and in Quality Technology and Management in International Journals and Conference Proceedings. Furthermore, he is a co-author of more than 20 published books on Mathematics, Statistics, and Quality Management. One of these, ‘Quality from customer needs to customer satisfaction’ is in its second edition sold by ASQ

Similar Documents

Premium Essay

Lean Six Sigma

...can be described as multinational companies, it is expected to have results that will support differences in TQM adoption, regarding the transfer of practices and obstacles observed, when compared with the different regions in the world, especially with the early adopters, such as Japan and United States of America. In addition, it is of importance to state that in the testing process the Statistical Package for Social Science, Version 16, was used and that the exploration of the tests are in compliance with the framework proposed. The report starts with the brief introduction, then proceeds to the brief literature review that synthesizes expectations of the tests, that are fully explained and utilized, and concludes with proposals and remarks for the further tests and explorations. Literature review “Characteristic or standard measure of excellence; basic characteristic of something. Quality is a measure of the degree to which something meets a standard” (Jack P. Friedman Barron's Dictionary of Business Terms, 2001.) Total Quality Management (TQM) can be described nowadays as an established concept that manages to capture various improvement mechanisms through incorporation of different management practices (Crainer and Dearlove, 2006). The actual notation of the term today does not only presupposes theories that are arguing that within sharp competition TQM is predominant approach, but explains in what manner one, at first theoretical,...

Words: 3502 - Pages: 15

Premium Essay

Process Improvement Essay

...Camry sedans, which would replace the bulk of Japanese imports of the same model. In 1992, TMM was expected to supply 240,000 of all the new Camry’s, whose sales were up by more than 20% since the model change in fall 1991. The new Camry joined the ranks of midsize family sedans, with constituted one third of the total American car market and returned an average 17% pretax profit margin on margin on a sticker price averaging $18,500. For the first time, in March 1992, TMM started producing wagon versions of the new Camry exclusively within Toyota’s worldwide plant network. Total Quality Management (TQM) Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the...

Words: 2370 - Pages: 10

Premium Essay

Six Sigma

...development for many companies. The implementation of programs such as Total Quality Management (TQM) and Six Sigma help companies increase production and quality control, evaluate employee performance, and receive customer feedback. The Internet is also a magnificent tool that allows businesses and customers to communicate and help improve the performance of the company. The goal of most companies is to provide products and services that meet the quality expectations of their customers. Programs such as Six Sigma and TQM are essential for companies to compete with one another. Meeting the standards of customers is critical for businesses to succeed, and companies must continually improve on their products and services to meet the increasing demand of consumers. “Quality is the most important aspect of products and services, and the basis for the purchase of consumers. It has been reported that the quality movement has one core idea, and that is, goods and services must achieve the highest attainable quality, or nothing else will do. Thus, the past decade or so has seen the rise of a philosophy aimed at maximizing organizational quality and understanding it” (Connor, 1997). While there are other considerations, such as price, delivery, and flexibility, quality is still of utmost importance. This paper will discuss the advantages and disadvantages of implementing such practices as Six Sigma and Total Quality Management. Is one more beneficial than the other is, or is it best to...

Words: 4343 - Pages: 18

Premium Essay

Global Supply Chain

...Contents Executive Summary 2 Introduction 3 Implementation of TQM & LEAN into MPA objective 4 TQM application to MPA reliability 4 Lean approach vs MPA competitiveness 7 Benefits & Limitations 8 Environmental Issues 8 Sustainable Environment 9 Carbon Emissions 10 Implementation of LEAN in the Environmental Issues 11 Conclusion 12 References 12 Executive Summary: The port of Singapore comprises a number of facilities and terminals that handle a wide range of cargo transported in different forms. In addition, the government has established The Maritime and Port Authority of Singapore (MPA) as a body that is responsible for the overall development and growth of the port of Singapore, overseeing most if not all the activities that are carried out as far the port logistics are concerned. However, the purpose of this paper has been divided into two tasks, one of which involves a critical evaluation of the application of Lean and TQM (Total Quality Management) in logistics and supply chain networks to achieve MPA objectives such as quality of service, competitiveness, reliability and efficiency. In addition the benefits and limitations from a practical perspective for MPA is evaluated. The second task of the paper aims to critically evaluate the key environmental sustainability issues in Cargo maritime logistics for MPA and an analysis of how implementing lean practices by MPA can reduce the environmental impact of an inward and outward...

Words: 3989 - Pages: 16

Premium Essay

Gobal Supply Chain

...Word Count: Tutor Name: Victor Hoon Executive Summary This reports aimed to identify the key performance indicator of MPA. Results show that how TQM and Six Sigma is being applied to improve the key performance of the MPA. Using SERVQUAL is an effective approach it’s can analysis of the difference between customer expectations and perceptions has been highlighted with support of an example. In the SERVQUAL instrument can measure the performance across these five dimensions, such tangibles, reliability, responsiveness, assurance and empathy as using a seven point like scale measuring both customer expectations and perceptions. Research for this report included a review of current literature on applying MPA website, TQM and Six Sigma journals, and others journal. The research findings in TQM show that reducing customer’s waiting time would increase the service quality. The reliability in TQM would be focusing on the port defects which would affect customers trust to the port. Six Sigma show that the reducing of processes in the port to increases the quality of service through operation. The research findings indicate the environmental, economic and social sustain issues. And the approaches of sustainable will actually help to sustain it. This report recommends that TQM and Six Sigma are beneficial to keep MPA improving the customer satisfaction and also leads to quality improvements to keep the machine functioning in a good way...

Words: 3363 - Pages: 14

Premium Essay

Quality Methodology

...For the past twenty years many quality improvement methodologies have been used, including international standardization 9000, Zero Effect, Six Sigma, Lean, Total Quality Management, Work-Out, Balanced Scorecard, Baldridge, Business Process Re-engineering, and Plan-Do-Check-Act. Team Orange initially discussed using Total Quality Management, also called TQM, as a methodology for success as it involves customers and stakeholders as well as requesting input from all employees as a means to constantly improve quality. However, given the fast pace of this project, TQM ultimately was rejected because it lacks structure and a means to measure outcomes (Antony, 2009). Six Sigma was discussed nest, and eventually selected this methodology for its project, based on the consensus that Six Sigma will support assurance to stakeholders concerning the quality of implementing a Cloud based infrastructure including the associated software as a service and content delivery network into the NewwDeal information technology portfolio. Six Sigma tools and practices will also support the timely delivery of the project, create value for its stakeholders, and promote continuous improvement (Antony, 2009). The rationale for the decision is further described in the paragraphs below. According to Fehlmann (2004): Applying Six Sigma to software development makes software projects transparent to both management and customers. Transparency requires an important cultural change. As a result...

Words: 929 - Pages: 4

Premium Essay

Tqm in a Organization

...Contents Introduction 3 What does TQM cover? 3 Deming 14 Principles of TQM 3 Total Quality and Six Sigma 5 Six sigma DMAIC process elements 6 Application where Six sigma is better 6 Difference between Six Sigma & Total Quality Management 6 Reasons for adopting Total quality Management 7 Accurate time to adopt Total Quality Management (TQM) 8 Total Quality Management Tools 9 Principles of Total Quality Management 11 1. Customer centric approach 12 2. Employee involvement 12 3. Process approach 13 4. Integrated system 13 5. Strategic & systematic approach 13 6. Fact-based decision making 14 7. Continual improvement 14 8. Communication 14 The Concept of Continuous Improvement by Total Quality Management 14 Benefits of Total Quality Management in an Organization 16 Conclusion 17 References: 18 Introduction Total Quality Management (TQM) is a philosophy with the enthusiasm of accomplishing the overall performance of the organization. This globally recognized strategic technique has several benefits that make TQM trustworthy and applicable toward the business people. These benefits may include improving consumer satisfaction, focusing on employee motivation, reducing waste and improving overall performance of the organization. TQM is a problem solving technique that particularly focuses on continuous improvement of the quality of product, process and service. In this approach the management and employee can work together for the overall...

Words: 4289 - Pages: 18

Premium Essay

Chapter 6

...Global implications: Cost of Quality: The cost of doing things wrong – that is, the price of nonconformance Prevention costs: Anticipated, proactive measures Appraisal costs: Evaluation, reactive measures Internal failure: External costs: Prize Awards: Malcom Baldrige: USA Deming Prize: ASIA International Quality Standards: ISO 9000: A set of quality standards develop by the International Organization for Standardization (ISO) ISO 14000: A series of environmental management standards established by the International Organization Standardization (ISO) Total Quality Management (TQM): Management of an entire organization so that it excels in all aspects of products and services that is important to the customer. Continuous Improvement: Plan – Do – Check – Act (PDCA): A continuous improvement model of plan, do, check and act. Six Sigma: A program to save time, improve quality, and lower costs. Employee Empowerment: Enlarging employee job so that the added responsibility and authority is moved to the lowest level possible I the organization. Quality Circle: A group of employees meeting regularly with a facilitator to solve work – related problems in their work area. Benchmarking: Selecting a demonstrated standard of performance that represents the very best performance for a process or an activity. Just In Time (JIT): JIT cuts the cost of quality JIT improves quality Taguchi Concepts:...

Words: 627 - Pages: 3

Premium Essay

Lean Thinking

...The Lean Enterprise System, Total Quality Management, Six Sigma And Related Enterprise Process Improvement Methods Kirkor Bozdogan Center for Technology, Policy and Industrial Development Massachusetts Institute of Technology Cambridge, MA USA 02139 Tel. 617 253-8540 bozdogan mit.edu ESD-WP-2010-05 August 2010 esd.mit.edu/wps ESD Working Paper Series Towards An Integration Of The Lean Enterprise System, Total Quality Management, Six Sigma And Related Enterprise Process Improvement Methods Kirkor Bozdogan Center for Technology, Policy and Industrial Development Massachusetts Institute of Technology Cambridge, MA USA 02139 Tel. 617 253-8540 bozdogan mit.edu ESD-WP-2010-05 August 2010 esd.mit.edu/wps TOWARDS AN INTEGRATION OF THE LEAN ENTERPRISE SYSTEM, TOTAL QUALITY MANAGEMENT, SIX SIGMA AND RELATED + ENTERPRISE PROCESS IMPROVEMENT METHODS Kirkor Bozdogan # Center for Technology, Policy and Industrial Development, Massachusetts Institute of Technology, Cambridge, MA USA 02139 August 5, 2010 Key Words: Lean manufacturing; just-in-time-production (JIT); Toyota Production System (TPS); lean enterprise system; total quality management (TQM); six sigma; lean six sigma; theory of constraints (TOC); agile manufacturing; business process reengineering (BPR); enterprise change and transformation; evidence-based management practices Abstract: The lean enterprise system, total quality management, six sigma, theory of constraints, agile manufacturing, and...

Words: 10496 - Pages: 42

Free Essay

Ba-106

...relationship with that good. When a good's price increases, the demand for its substitute will increase because consumers will go looking for a cheaper alternative. Conversely, when a good's price decreases, the demand for its substitute will decrease. For example, margarine is a substitute for butter because a consumer can meet similar needs by using margarine. So, when the price of butter rises, the demand for margarine will likely increase. Competitors - someone who is trying to win or do better than all others especially in business or sports - Organizations that produce goods and services that are similar to a particular organizations’ goods and services. Example: Petron Vs. Shell Pepsi Vs. Coke Potential Competitors – organizations that presently are not in the “environment” but could enter if they so choose. - Rivalry between competitors is potentially the most threatening force that owners or managers deal with - Strong competitive rivalry results in price competition and falling prices reduce access to resources and lower profits Definition of...

Words: 1132 - Pages: 5

Premium Essay

Six Sigma, Iso and Baldirdge

...Pittsburgh Headquarters 105 Bradford Road Suite 400 Wexford, PA 15090 724.934.9000 724.935.6825 Fax info@SRIRegistrar.com www.SRIRegistrar.com Six Sigma, ISO 9001 and Baldrige Many organizations ask “How Do these programs, processes and standards support each other?” These initiatives are not mutually exclusive, in fact, understanding and applying all, some or part can greatly improve your business performance. The following is an overview of how they work together. What is Six Sigma? Six Sigma is a statistically-based process that strengthens organizational capacity for ongoing process improvement. “Six Sigma” or “six standards of deviation” aims to reduce defects to a rate of 3.4 defects per million defect opportunities by identifying and eliminating causes of variation in business processes. In defining defects or errors, Six Sigma focuses on developing a clear understanding of customer requirements and is therefore very customer focused. The DMAIC Methodology. The Six Sigma process is based on a concept called DMAIC: • Define – clearly identify the problem, the requirements of the project and objectives of the project • Measure – to fully understand the current performance • Analyze – the measurements collected to determine and validate the root cause(s) • Improve – developing ideas to remove the root causes of variation and implement the solutions • Control – to establish standard measures to maintain performance and to correct problems as needed Motorola invented this...

Words: 1535 - Pages: 7

Premium Essay

Global Supply Chain Management

...in global maritime logistics and the MPA. In this report, the utilisation as well as impacts of Lean and Six Sigma strategies will be analysed. In addition to this, the two strategies will be compared and contrasted. Lean and Six Sigma assist in working efficiently and reducing wastes. In recent times, IT has proven to be a vital tool in assisting organisations and global maritime logistics. This report will examine the relationship between IT and quality (TQM), efficiency (Lean) and collaboration and has shown assist them in their objectives and gain a competitive edge. This report has shown that IT has proven to be effective in helping organisations and global supply networks work and communicate among one another effectively and efficiently. 1.0 INTRODUCTION In this report, its main focus is on determining the most optimal cost reduction strategies in the implementation of green strategies in global maritime logistics such as the Singapore maritime logistics network or Maritime and Port Authority of Singapore (MPA) and for this particular paper, the researcher has chosen two specific cost reduction strategies specifically: Six Sigma and Lean. Container ports the world over are increasing at an alarming rate and ports have to take into account of its efficiency, throughput and green performance. TASK 1 2.0 COST REDUCTION STRATEGIES TO ACHIEVE OBJECTIVES Six Sigma and Lean are the strategies that will be critically examined and analysed to be implemented in the...

Words: 3028 - Pages: 13

Premium Essay

Lss for Mba

...BA8039 | LEAN SIX SIGMA | L T P C | | COURSE OBJECTIVE: | | 3 0 0 3 | | | | | | To gain insights about the importance of lean manufacturing and six sigma practices. COURSE OUTCOME: The student would be able to relate the tools and techniques of lean sigma to increase productivity UNIT I LEAN & SIX SIGMA BACKGROUND AND FUNDAMENTALS | 9 | Historical Overview – Definition of quality – What is six sigma -TQM and Six sigma - lean manufacturing and six sigma- six sigma and process tolerance – Six sigma and cultural changes – six sigma capability – six sigma need assessments - implications of quality levels, Cost of Poor Quality (COPQ), Cost of Doing Nothing – assessment questions UNIT II THE SCOPE OF TOOLS AND TECHNIQUES | 9 | Tools for definition – IPO diagram, SIPOC diagram, Flow diagram, CTQ Tree, Project Charter – Tools for measurement – Check sheets, Histograms, Run Charts, Scatter Diagrams, Cause and effect diagram, Pareto charts, Control charts, Flow process charts, Process Capability Measurement, Tools for analysis – Process Mapping, Regression analysis, RU/CS analysis, SWOT, PESTLE, Five Whys, interrelationship diagram, overall equipment effectiveness, TRIZ innovative problem solving – Tools for improvement – Affinity diagram, Normal group technique, SMED, 5S, mistake proofing, Value stream Mapping, forced field analysis – Tools for control – Gantt chart, Activity network diagram, Radar chart, PDCA cycle, Milestone tracker diagram, Earned...

Words: 449 - Pages: 2

Premium Essay

Success

...Inventory Managers, Quality Managers, R&D Managers, Innovation Managers, Project Managers, Entrepreneurs, and Operations Management Consultants. Course Objectives:  * Provides an understanding of operations management framework * Offers experiential analysis to understand the challenges of COOs and Operations Managers * Provides an understanding of the functions and practices of production and operation managers * Training topics include supply chain management, research and development (R&D), manufacturing, project management and quality management * Provides insights on how to develop strategies, initiatives and programs to introduce and sustain competitive operations in organizations * Focuses on lean six sigma best practices, tools and models to develop and implement an effective operations management system * This course emphasizes operations management decision-making. It does not cover  engineering, technical or mathematical topics Course - Training Focus: * Develop the core operations management skills and competencies. The core competencies include operations knowledge, planning, control, problem-solving and communication. The...

Words: 1175 - Pages: 5

Premium Essay

Six Sigma

...The current issue and full text archive of this journal is available at www.emeraldinsight.com/0954-478X.htm TQM 19,1 6 Dynamics of organizational learning and continuous improvement in six sigma implementation Taina Savolainen Department of Business and Economics, University of Joensuu, Joensuu, Finland, and Arto Haikonen Genworth Financial, Helsinki, Finland Abstract Purpose – The purpose of this paper is to examine the dynamics of organizational learning and continuous improvement (CI) in the context six sigma implementation in business organizations operating in multicultural environments. Design/methodology/approach – A specific research question is: does learning mechanisms and continuous improvement practices support each other and how, and what type of learning can be identified in the improvement of business processes. The question is linked to one of the fundamental issues currently discussed in the field of organizational learning; how do organizations get “from here to there”, in other words, what is the dynamics of the processes of learning and how progressive learning is achieved. A case study of a few Finnish companies is made and a procedural implementation model is applied. Findings – The findings suggest that the learning process is characterized by measurement, detection and correction of errors, and cost reduction. In six sigma implementation, learning is a single-loop type of learning. It is an incremental change process which reminds a technical...

Words: 5954 - Pages: 24