Total Quality Management - CII Institute of Logistics

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Total Quality Management 5.3 Six Sigma and Total Quality Management (TQM) If we combine the wisdom of Dr. Deming, Dr. Juran, and Crosby, TQM could be explained as under: TQM involves continuous improvement in quality to meet or exceed customer norms at the lowest cost by releasing the potential of employees of the concerned organization. Let us ponder the expressions in bold. Continuous Improvement is based on the principle “Standing Still is Going Backwards”. This is very profoundly embedded in Six Sigma. Benchmarking Customer Satisfaction, Product, Process, and Service Quality are the corner stones upon which the entire Six Sigma is built. We also know that Benchmarking is an integral part of TQM. Customer Norms are the specifications and expectations of the customers. Six Sigma process starts from the voice of the customer and does everything to more than satisfy the customers. In fact, the cardinal principle of defects per million opportunities (DPMO) is deep rooted in the Six Sigma soil because anything that inhibits customer satisfaction is a defect. So, it focuses on opportunities to go wrong from the customers’ angle or perception. Metrics are built around Total Customer Satisfaction (TCS) in a very committed manner in Six Sigma. Cost of poor quality is an extremely important measure in Six Sigma. It is expressed as percentage to sales revenues. Please recall from the Motorola story, how reduction in cost of poor quality helped Motorola achieve a quantum jump in profit! This is a key area in Six Sigma that will produce results for the corporate. CII Institute of Logistics 98 Website: www.ciilogistics.com
Total Quality Management Employees play a pivotal role in Six Sigma as much as in TQM. The concept of empowerment, autonomy, accountability, teamwork, training workshops, and leadership are as vital in Six Sigma as they are in TQM. Then what are the differences? 1. Six Sigma emphasizes much more on metrics and measurement than TQM and the feedback and control of information system is significantly more impeccable in Six Sigma than in TQM 2. There is a clear focus on Corporate Profit that permeates through out Six Sigma operations which is not the case in TQM operations. 3. Six Sigma is articulated and implemented as a breakthrough strategy that incorporates mind-boggling radical reforms in order to achieve significant improvements both in quality and in finance function. This is not the case in the orthodox TQM practices. 3. TQM focuses on continuous improvement in individual operations with unrelated processes whereas Six Sigma focuses on continuous improvement in all operations within a process. As a result of this difference in approach, Six Sigma can get a company to perform phenomenally in profit enhancement and in elimination of defects. It is interesting to note that a modified TQM that incorporates a strong measurement system interwoven with statistical analysis, continuous improvement in all operations within a process, and a focus on corporate profitability is indeed Six Sigma! CII Institute of Logistics 99 Website: www.ciilogistics.com
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