Total Quality Management (TQM) and Six Sigma are quality improvement programs that reduce defect rates in manufacturing processes. TQM allocates resources to independent quality management departments, while Six Sigma sets goals for results within every department to achieve business goals and growth guided by customer satisfaction ratings. They share some methodologies but differ in their approaches to management involvement and expectations.
Both Total Quality Management and Six Sigma are quality improvement programs designed to reduce defect rates in manufacturing processes. Total Quality Management (TQM) was developed by a group of engineers and started in the 1950s. Featuring the allocation of resources to independent quality management departments across businesses, TQM has spread widely among companies, helping to reduce defect rates and wasted time and resources within manufacturing environments. Six Sigma was developed in the 1980s by a group of corporate chief executive officers (CEOs) to broaden and refine the goals set by TQM. In contrast to TQM, Six Sigma argues that quality should not be a separate department within an organization but an integral part of business practices.
While TQM and Six Sigma offer defect rate reductions, they do so from several motivating factors. The guidelines and philosophies developed by TQM engineers were loosely defined to fit many business models and did not offer a clear endpoint strategy. Six Sigma, on the other hand, capitalized on TQM’s successes in making the manufacturing process more efficient, while recognizing the need to prioritize the strategic goals of a company’s top executives. Six Sigma sets goals for results within every department of a company, not just the production line, to achieve business goals and achieve growth guided by customer satisfaction ratings.
TQM and Six Sigma share some methodologies, such as the use of standard statistical analysis and cost/benefit analysis. However, Six Sigma only uses those analysis tools that focus on individual project goals and generally takes a closer look at expenses to ensure investments are achieving expected returns. TQM seeks to ensure standard performance, according to industry recognized ISO 9000 measurements; however, Six Sigma tries to raise expectations in order to push growth. The roles of people managing TQM and Six Sigma programs also differ. TQM devotees generally hold career positions within a quality assurance department, while a Six Sigma leader only serves temporarily to ensure a department’s compliance and maximum achievement goals.
In particular, TQM favors the development of a few discrete quality management experts who can work almost as a neutral party to evaluate programs and processes within a company. Instead, management involvement in Six Sigma practices is required at all levels – from top to bottom – with leadership roles assigned in a hierarchical ranking. Executive leaders develop visions, allocate resources for new projects, and organize information flows and processes for production. Individuals in middle management implement close monitoring of compliance with Six Sigma standards and coach or train subordinates in their methodological applications to their specific assigned projects. While TQM and Six Sigma both aim to achieve the same results, they operate in business environments in very different ways.
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