1

In technical usage, quality can have two meanings: (1) the characteristics of a product or service that bear on its
ability to satisfy stated or implied needs and (2) a product or service free of deficiencies.”Total Quality
Management (TQM) is the continuous process of reducing or eliminating errors in manufacturing, streamlining
supply chain management, improving the customer experience, and ensuring that employees are up-to-speed with
their training.

Total Quality Management (TQM) is a management approach to long-term success through customer
satisfaction. TQM focuses on the development of products and services that meet the needs and exceed the
expectations of key customer groups.

This is accomplished by creating an integrated “system” that is process centered, has total employee
involvement and is completely customer focused. Creating a culture that is customer focused and collecting and
studying data that supports efforts for the customer are critical components to the system.

Steps to Creating a Total Quality Management System

1. Clarify Vision, Mission and Values

Employees need to know how what they do is tied to organizational strategy and objectives.

All employees need to understand where the organization is headed (its vision), what it hopes to accomplish
(mission) and the operational principles (values) that will steer its priorities and decision making.

Develop a process to educate employees during new employee orientation and communicate the mission, vision
and values as a first step.

2. Identify Critical Success Factors (CSF)

Critical success factors help an organization focus on those things that help it meet objectives and move a little
closer to achieving its mission. These performance based measures provide a gauge for determining how well the
organization is meeting objectives.

Some example CSF:

 Financial Performance
 Customer Satisfaction
 Process Improvement
 Market Share
 Employee Satisfaction
 Product Quality

Muhammad Kaleem GCT Peshawar

2

3. Develop Measures and Metrics to Track CSF Data

Once critical success factors are identified, there needs to be measurements put in place to monitor and track
progress. This can be done through a reporting process that is used to collect specified data and share information
with senior leaders. For example, if a goal is to increase customer satisfaction survey scores, there should be a
goal and a measure to demonstrate achievement of the goal.

4. Identify Key Customer Group

Every organization has customers and understanding who the key customer groups are is important so that
products and services can be developed based on customer requirements. The mistake a lot of organizations make
is not acknowledging employees as a key customer group.

Example Key Customer Groups:

 Employees
 Customers
 Suppliers
 Vendors
 Volunteers

5. Solicit Customer Feedback

The only way for an organization to know how well they are meeting customer requirements is by simply asking
the question. There should be a structured process to solicit feedback from each customer group in an effort to
identify what is important to them. Organizations often make the mistake of thinking they know what is important
to customers and ask the wrong survey questions. This this type of feedback is obtained through customer focus
groups.

6. Develop Survey Tool

Next develop a customer satisfaction survey tool that is based on finding out what is important to customers. For
example, customers might care more about quality than cost but if you are developing a product and trying to keep
the cost down and skimping on the quality, you are creating a product that might not meet the needs of the
customer.

There are lots of survey software available. One I like is Survey Gizmo which is an easy to use online survey
tool. You can play with it and try it for free to see if its something that would benefit your organization.

7. Survey Each Customer Group

Each customer group should have a survey customized to their particular requirements and they should be
surveyed to establish baseline data on the customers’ perception of current practice. This provides a starting point
for improvements and demonstrates progress as improvement plans are implemented.

Muhammad Kaleem GCT Peshawar

3

8. Develop Improvement Plan

Once the baseline is established you should develop an improvement plan based on customer feedback from each
group. Improvement plans should be written in SMART goals format with assignments to specific staff for follow
through.

Goals May Include Some of the Following:

 Process improvement initiatives, such as: customer call hold times

 Leadership Development: Walk-the-Talk
 Management Training/Development: How to manage employees in a quality environment
 Staff Training/Development: Customer Service
 Performance Management: Setting expectations, creating job descriptions that support the vision and
holding staff accountable.

9. Resurvey

After a period of time (12-18 months), resurvey key customers to see if scores have improved. Customer needs and
expectations change over time so being in-tune to changing needs and expectations is critical to long-term success.

10. Monitor CSF

It is important to monitor CSF monthly to ensure there is consistent progress toward goals. This also allows for
course correction should priorities and objectives change during the review period.

11. Incorporate Satisfaction Data into Marketing Plans

Once you’ve achieved some positive results with your satisfaction data, use it as a marketing tool! A lot of
successful organizations miss the boat by not letting others know what they do well. Customers want to know how
an organizations internal processes work especially if those process help to deliver an outstanding product or
service!

12. Technology

Make sure technology is user-friendly and supports targeted improvements. For example, a website should be easy
to navigate as well as easy to find (SEO) and the content should be easy to understand.

Final Thoughts

Make sure employees understand the vision as well as their role in supporting it. Look for ways to ensure that all
internal processes are standardized and that employees receive the training to understand the standardization.

Successful quality initiatives require ongoing Senior Leadership sponsorship and support through structure,
process and staff transitions. Designated resources are also critical in supporting these endeavors.

The advantages of total quality management (TQM) include:

Muhammad Kaleem GCT Peshawar
 4

 Cost reduction. When applied consistently over time, TQM can reduce costs throughout an organization, especially
in the areas of scrap, rework, field service, and warranty cost reduction. ...
 Customer satisfaction. ...
 Defect reduction. ...
 Morale.
Key element
To be successful implementing TQM, an organization must concentrate on the eight key elements:
 Ethics.
 Integrity.
 Trust.
 Training.
 Teamwork.
 Leadership.
 Recognition.
 Communication.

Total Quality Management Models. Total Quality Management is a combined effort of both top level management as
well as employees of an organization to formulate effective strategies and policies to deliver high quality products which not
only meet but also exceed customer satisfaction.

The advantages of total quality management (TQM) include:

 Cost reduction. When applied consistently over time, TQM can reduce costs throughout an organization, especially
in the areas of scrap, rework, field service, and warranty cost reduction. ...
 Customer satisfaction. ...
 Defect reduction. ...
 Morale.
The eight principles are:
 1 Customer focus. ...
 2 Leadership. ...
 3 Involvement of people. ...
 4 Process approach. ...
 5 System approach to management. ...
 6 Continuous improvement. ...
 7 Factual approach to decision making. ...
 8 Mutually beneficial supplier relationships.
The seven tools are:
 Cause-and-effect diagram (also known as the "fishbone" or Ishikawa diagram)
 Check sheet.
 Control chart.
Muhammad Kaleem GCT Peshawar
 5

 Histogram.
 Pareto chart.
 Scatter diagram.
 Stratification (alternately, flow chart or run chart)
Basic principle of TQM

Total quality management (TQM) is achieved and becomes part of the overall organizational culture when the five
principles - produce quality work the first time,focus on the customer, have a strategic approach to improvement, improve
continuously and encourage mutual respect and teamwork - are practiced by all ...

The main features of TQM are:

 Customer-oriented. TQM focuses on customer satisfaction through creation of better quality products and services
at lower costs.
 Employee involvement and empowerment. ...
 Organization-wide. ...
 Continuous improvement. ...
 Strategic focus. ...
 Process management. ...
 Change in corporate culture.
TQM Strategy

A core definition of total quality management (TQM) describes a management approach to long–term success through
customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products,
services, and the culture in which they work.

A quality management system (QMS) is a set of policies, processes and procedures required for planning and execution
(production/development/service) in the core business area of an organization. (i.e. areas that can impact the organization's
ability to meet customer requirements.)

Importance of TQM

Quality is critical to satisfying your customers and retaining their loyalty so they continue to buy from you in the
future. Quality products make an important contribution to long-term revenue and profitability. They also enable you to
charge and maintain higher prices.

Six Sigma Advantages. The main advantage of Six Sigma compared to other approaches to quality control is that Six
Sigma is customer driven. Six Sigma is defined as a limit of 3.4 defects per one million products or service processes, where
anything not acceptable to the end customer is considered a defect.

The ISO 9000:2015 and ISO 9001:2015 standards are based on seven quality management principles that
senior management can apply for organizational improvement:
 Customer focus.
 Leadership.
 Engagement of people.
 Process approach.

Muhammad Kaleem GCT Peshawar

 6

 Improvement.
 Evidence-based decision-making.
 Relationship management.
This document introduces seven quality management principles (QMPs). ISO 9000, ISO 9001 and related
ISO quality management standards are based on these seven QMPs. One of the definitions of a “ principle ” is that it is a
basic belief, theory or rule that has a major influence on the way in which something is done.

6 Sigma tools

This includes Six Sigma tools like control charts, SIPOC and others.
 5 Whys.
 5S.
 Affinity Diagram/KJ Analysis.
 Analysis of Variance (ANOVA)
 Analytic Hierarchy Process (AHP)
 Brainstorming.
 Calculators.
 Capability Indices/Process Capability.
Management tools

 Pillars of TQM
The four pillars of the TQM implementation involve satisfying customers, system/process, people, and improvement tools.
Building on the work of founders of the TQM approach, Creech identified what he called five pillars of TQM: Product
(service), Process, Organization, Leadership and Commitment (Rowitz, 2003).

Importance of TQM in organization

Total Quality Management (TQM) is an approach that organizations use to improve their internal processes and increase
customer satisfaction. ... Whatever other resources you use, you should adopt these seven important principles of Total
Quality Management as a foundation for all your activities.

The seven characteristics that define data quality are:

 Accuracy and Precision.
 Legitimacy and Validity.
 Reliability and Consistency.
 Timeliness and Relevance.
 Completeness and Comprehensiveness.
 Availability and Accessibility.
 Granularity and Uniqueness.
 W. Edwards Deming
 TQM was demonstrated on a grand scale by Japanese industry through the intervention of W. Edwards
Deming—who, in consequence, and thanks to his missionary labors in the U.S. and across the world, has
come to be viewed as the "father" of quality control, quality circles, and the quality movement generally.

Muhammad Kaleem GCT Peshawar

 7

Lean manufacturing includes a set of principles that lean thinkers use to achieve improvements in productivity, quality, and
lead-time by eliminating waste through kaizen. Kaizen is a Japanese word that essentially means "change for the better" or
"good change."

TOTAL QUALITY MANAGEMENT IMPLEMENTATION AND SYSTEMS

Note: “Total quality management” as a term to describe an organization's quality policy and procedure has fallen out of favor as
international standards for quality management have been developed. Please see our series of pages on Quality Management
Systems for more information.

When planning and implementing a total quality management system or quality management strategy, there is no one solution for
every situation.

Each organization is unique in terms of the culture, management practices, and the processes used to create and deliver its products
and services. The quality management strategy will then vary from organization to organization; however, a set of primary
elements should be present in some format.

Generic Strategy Model for Implementing TQM Systems

1. Top management learns about and decides to commit to TQM. TQM is identified as one of the organization’s strategies.
2. The organization assesses current culture, customer satisfaction, and quality management systems.
3. Top management identifies core values and principles to be used, and communicates them.
4. A TQM master plan is developed on the basis of steps 1, 2, and 3.
5. The organization identifies and prioritizes customer demands and aligns products and services to meet those demands.
6. Management maps the critical processes through which the organization meets its customers’ needs.
7. Management oversees the formation of teams for process improvement efforts.
8. The momentum of the TQM effort is managed by the steering committee.
9. Managers contribute individually to the effort through hoshin planning, training, coaching, or other methods.
10. Daily process management and standardization take place.
11. Progress is evaluated and the plan is revised as needed.
12. Constant employee awareness and feedback on status are provided and a reward/recognition process is established.

Examples of Total Quality Management System Strategies

Strategy 1: The TQM element approach

The TQM element approach takes key business processes and/or organizational units and uses the tools of TQM to foster
improvements. This method was widely used in the early 1980s as companies tried to implement parts of TQM as they learned
them.

Examples of this approach include quality circles, statistical process control, Taguchi methods, and quality function deployment.

Muhammad Kaleem GCT Peshawar

8

Strategy 2: The guru approach

The guru approach uses the teachings and writings of one or more of the leading quality thinkers as a guide against which to
determine where the organization has deficiencies. Then, the organization makes appropriate changes to remedy those deficiencies.

For example, managers might study Deming’s 14 points or attend the Crosby College. They would then work on implementing the
approach learned.

Strategy 3: The organization model approach

In this approach, individuals or teams visit organizations that have taken a leadership role in TQM and determine their processes
and reasons for success. They then integrate these ideas with their own ideas to develop an organizational model adapted for their
specific organization.

This method was used widely in the late 1980s and is exemplified by the initial recipients of the Malcolm Baldrige National
Quality Award.

Strategy 4: The Japanese total quality approach

Organizations using the Japanese total quality approach examine the detailed implementation techniques and strategies employed
by Deming Prize–winning companies and use this experience to develop a long-range master plan for in-house use.

This approach was used by Florida Power and Light—among others—to implement TQM and to compete for and win the Deming
Prize.

Strategy 5: The award criteria approach

When using this model, an organization uses the criteria of a quality award, for example, the Deming Prize, the European Quality
Award, or the Malcolm Baldrige National Quality Award, to identify areas for improvement. Under this approach, TQM
implementation focuses on meeting specific award criteria.

Although some argue that this is not an appropriate use of award criteria, some organizations do use this approach and it can result
in improvement.

Muhammad Kaleem GCT Peshawar

9

Muhammad Kaleem GCT Peshawar

10

Muhammad Kaleem GCT Peshawar

11

Muhammad Kaleem GCT Peshawar

12

Introduction and Implementation of Total Quality

Management (TQM)
Total Quality Management is a management approach that originated in the 1950s and has steadily become more popular
since the early 1980s. Total Quality is a description of the culture, attitude and organization of a company that strives to
provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the
company’s operations, with processes being done right the first time and defects and waste eradicated from operations.

Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous
improvement of the production of goods and services. It is a combination of quality and management tools aimed at
increasing business and reducing losses due to wasteful practices.

Some of the companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon,
Motorola and Toyota Motor Company.

TQM Defined
TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design,
engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives.

TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve
these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is “Do the right
Muhammad Kaleem GCT Peshawar
 13

things, right the first time, every time.” TQM is infinitely variable and adaptable. Although originally applied to
manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic
management tool, just as applicable in service and public sector organizations. There are a number of evolutionary strands,
with different sectors creating their own versions from the common ancestor. TQM is the foundation for activities, which
include:

 Commitment by senior management and all employees

 Meeting customer requirements
 Reducing development cycle times
 Just in time/demand flow manufacturing
 Improvement teams
 Reducing product and service costs
 Systems to facilitate improvement
 Line management ownership
 Employee involvement and empowerment
 Recognition and celebration
 Challenging quantified goals and benchmarking
 Focus on processes / improvement plans
 Specific incorporation in strategic planning
This shows that TQM must be practiced in all activities, by all personnel, in manufacturing, marketing, engineering, R&D,
sales, purchasing, HR, etc.

Principles of TQM
The key principles of TQM are as following:
Management Commitment
 Plan (drive, direct)
 Do (deploy, support, participate)
 Check (review)
 Act (recognize, communicate, revise)
Employee Empowerment
 Training
 Suggestion scheme
 Measurement and recognition
 Excellence teams
Fact Based Decision Making
 SPC (statistical process control)
 DOE, FMEA
 The 7 statistical tools
 TOPS (Ford 8D – team-oriented problem solving)
Continuous Improvement
 Systematic measurement and focus on CONQ
 Excellence teams
 Cross-functional process management
 Attain, maintain, improve standards
Customer Focus
 Supplier partnership
 Service relationship with internal customers
 Never compromise quality
 Customer driven standards

Muhammad Kaleem GCT Peshawar

 14

The Concept of Continuous Improvement by TQM

TQM is mainly concerned with continuous improvement in all work, from high level strategic planning and decision-making,
to detailed execution of work elements on the shop floor. It stems from the belief that mistakes can be avoided and defects
can be prevented. It leads to continuously improving results, in all aspects of work, as a result of continuously improving
capabilities, people, processes, technology and machine capabilities.

Continuous improvement must deal not only with improving results, but more importantly with improving capabilities to
produce better results in the future. The five major areas of focus for capability improvement are demand generation, supply
generation, technology, operations and people capability.

A central principle of TQM is that mistakes may be made by people, but most of them are caused, or at least permitted, by
faulty systems and processes. This means that the root cause of such mistakes can be identified and eliminated, and repetition
can be prevented by changing the process.1
There are three major mechanisms of prevention:

1. Preventing mistakes (defects) from occurring (mistake-proofing or poka-yoke).

2. Where mistakes can’t be absolutely prevented, detecting them early to prevent them being passed down the value-added
chain (inspection at source or by the next operation).
3. Where mistakes recur, stopping production until the process can be corrected, to prevent the production of more defects.
(stop in time).

Implementation Principles and Processes

A preliminary step in TQM implementation is to assess the organization’s current reality. Relevant preconditions have to do
with the organization’s history, its current needs, precipitating events leading to TQM, and the existing employee quality of
working life. If the current reality does not include important preconditions, TQM implementation should be delayed until the
organization is in a state in which TQM is likely to succeed.

If an organization has a track record of effective responsiveness to the environment, and if it has been able to successfully
change the way it operates when needed, TQM will be easier to implement. If an organization has been historically reactive
and has no skill at improving its operating systems, there will be both employee skepticism and a lack of skilled change
agents. If this condition prevails, a comprehensive program of management and leadership development may be instituted. A
management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of
change. An organization should be basically healthy before beginning TQM. If it has significant problems such as a very
unstable funding base, weak administrative systems, lack of managerial skill, or poor employee morale, TQM would not be
appropriate.
However, a certain level of stress is probably desirable to initiate TQM. People need to feel a need for a change. Kanter
(1983) addresses this phenomenon be describing building blocks which are present in effective organizational change. These
forces include departures from tradition, a crisis or galvanizing event, strategic decisions, individual “prime movers,” and
action vehicles. Departures from tradition are activities, usually at lower levels of the organization, which occur when
entrepreneurs move outside the normal ways of operating to solve a problem. A crisis, if it is not too disabling, can also help
create a sense of urgency which can mobilize people to act. In the case of TQM, this may be a funding cut or threat, or
demands from consumers or other stakeholders for improved quality of service. After a crisis, a leader may intervene
strategically by articulating a new vision of the future to help the organization deal with it. A plan to implement TQM may be
such a strategic decision. Such a leader may then become a prime mover, who takes charge in championing the new idea and
showing others how it will help them get where they want to go. Finally, action vehicles are needed and mechanisms or
structures to enable the change to occur and become institutionalized.

Muhammad Kaleem GCT Peshawar

15

Steps in Managing the Transition

Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to a new system such as TQM:
identifying tasks to be done, creating necessary management structures, developing strategies for building commitment,
designing mechanisms to communicate the change, and assigning resources.

Task identification would include a study of present conditions (assessing current reality, as described above); assessing
readiness, such as through a force field analysis; creating a model of the desired state, in this case, implementation of TQM;
announcing the change goals to the organization; and assigning responsibilities and resources. This final step would include
securing outside consultation and training and assigning someone within the organization to oversee the effort. This should
be a responsibility of top management. In fact, the next step, designing transition management structures, is also a
responsibility of top management. In fact, Cohen and Brand (1993) and Hyde (1992) assert that management must be heavily
involved as leaders rather than relying on a separate staff person or function to shepherd the effort. An organization wide
steering committee to oversee the effort may be appropriate. Developing commitment strategies was discussed above in the
sections on resistance and on visionary leadership.6
To communicate the change, mechanisms beyond existing processes will need to be developed. Special all-staff meetings
attended by executives, sometimes designed as input or dialog sessions, may be used to kick off the process, and TQM
newsletters may be an effective ongoing communication tool to keep employees aware of activities and accomplishments.

Management of resources for the change effort is important with TQM because outside consultants will almost always be
required. Choose consultants based on their prior relevant experience and their commitment to adapting the process to fit
unique organizational needs. While consultants will be invaluable with initial training of staff and TQM system design,
employees (management and others) should be actively involved in TQM implementation, perhaps after receiving training in
change management which they can then pass on to other employees. A collaborative relationship with consultants and clear
role definitions and specification of activities must be established.

In summary, first assess preconditions and the current state of the organization to make sure the need for change is clear and
that TQM is an appropriate strategy. Leadership styles and organizational culture must be congruent with TQM. If they are
not, this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist.

Remember that this will be a difficult, comprehensive, and long-term process. Leaders will need to maintain their
commitment, keep the process visible, provide necessary support, and hold people accountable for results. Use input from
stakeholder (clients, referring agencies, funding sources, etc.) as possible; and, of course, maximize employee involvement in
design of the system.7
Always keep in mind that TQM should be purpose driven. Be clear on the organization’s vision for the future and stay
focused on it. TQM can be a powerful technique for unleashing employee creativity and potential, reducing bureaucracy and
costs, and improving service to clients and the community.

Conclusion
TQM encoureges participation amongst shop floor workers and managers. There is no single theoretical formalization of total
quality, but Deming, Juran and Ishikawa provide the core assumptions, as a “…discipline and philosophy of management
which institutionalizes planned and continuous… improvement … and assumes that quality is the outcome of all activities
that take place within an organization; that all functions and all employees have to participate in the improvement process;
that organizations need both quality systems and a quality culture.”

Total quality management (TQM) consists of organization-wide efforts to install and make permanent a climate in which

an organization continuously improvesits ability to deliver high-quality products and services to customers. While there is no

Muhammad Kaleem GCT Peshawar

16

widely agreed-upon approach, TQM efforts typically draw heavily on the previously developed tools and techniques of quality

control. TQM enjoyed widespread attention during the late 1980s and early 1990s before being overshadowed by ISO 9000, Lean

manufacturing, and Six Sigma.

History
In the late 1970s and early 1980s, the developed countries of North America and Western Europe suffered economically in
the face of stiff competition from Japan's ability to produce high-quality goods at competitive cost. For the first time since the
start of the Industrial Revolution, the United Kingdom became a net importer of finished goods. The United States undertook
its own soul-searching, expressed most pointedly in the television broadcast of If Japan Can... Why Can't We? Firms began
reexamining the techniques of quality control invented over the past 50 years and how those techniques had been so
successfully employed by the Japanese. It was in the midst of this economic turmoil that TQM took root.
The exact origin of the term "total quality management" is uncertain. It is almost certainly inspired by Armand V.
Feigenbaum's multi-edition book Total Quality Control (OCLC 299383303) and Kaoru Ishikawa's What Is Total Quality
Control? The Japanese Way (OCLC 11467749). It may have been first coined in the United Kingdom by the Department of
Trade and Industry during its 1983 "National Quality Campaign".[1] Or it may have been first coined in the United States by
the Naval Air Systems Command to describe its quality-improvement efforts in 1985.

Quality Defined:
“A subjective term for which each person has his or her own definition. American Society for Quality (ASQ)

A Quality Management System is “The organizational structure, processes, procedures and resources needed to
implement, maintain and continually improve the management of quality.” American Society for Quality (ASQ)

Six Sigma
Six Sigma (6σ) is a set of techniques and tools for process improvement. It was introduced by engineer Bill
Smith while working at Motorola in 1986. Jack Welch made it central to his business strategy at General
Electric in 1995.
It seeks to improve the quality of the output of a process by identifying and removing the causes of defects and
minimizing variability in manufacturing and business processes. It uses a set of quality management methods,
mainly empirical, statistical methods, and creates a special infrastructure of people within the organization who are
experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of
steps and has specific value targets, for example: reduce process cycle time, reduce pollution, reduce costs,
increase customer satisfaction, and increase profits.
The term Six Sigma (capitalized because it was written that way when registered as a Motorola trademark on
December 28, 1993) originated from terminology associated with statistical modeling of manufacturing processes.
The maturity of a manufacturing process can be described by a sigma rating indicating its yield or the percentage
of defect-free products it creates. A six sigma process is one in which 99.99966% of all opportunities to produce

Muhammad Kaleem GCT Peshawar

17

some feature of a part are statistically expected to be free of defects (3.4 defective features per million
opportunities). Motorola set a goal of "six sigma" for all of its manufacturing operations, and this goal became a
by-word for the management and engineering practices used to achieve it.

Doctrine

The common Six Sigma symbol

Six Sigma doctrine asserts:

 Continuous efforts to achieve stable and predictable process results (e.g. by reducing process variation) are of
vital importance to business success.
 Manufacturing and business processes have characteristics that can be defined, measured, analyzed, improved,
and controlled.
 Achieving sustained quality improvement requires commitment from the entire organization, particularly from
top-level management.
Features that set Six Sigma apart from previous quality-improvement initiatives include:

 A clear focus on achieving measurable and quantifiable financial returns from any Six Sigma project.
 An increased emphasis on strong and passionate management leadership and support.
 A clear commitment to making decisions on the basis of verifiable data and statistical methods, rather than
assumptions and guesswork.
The term "six sigma" comes from statistics and is used in statistical quality control, which evaluates process
capability. Originally, it referred to the ability of manufacturing processes to produce a very high proportion of
output within specification. Processes that operate with "six sigma quality" over the short term are assumed to
produce long-term defect levels below 3.4 defects per million opportunities (DPMO). Six Sigma's implicit goal is
to improve all processes, but not to the 3.4 DPMO level necessarily. Organizations need to determine an
appropriate sigma level for each of their most important processes and strive to achieve these. As a result of this
goal, it is incumbent on management of the organization to prioritize areas of improvement.
"Six Sigma" was registered June 11, 1991 as U.S. Service Mark 1,647,704. In 2005 Motorola attributed over
US$17 billion in savings to Six Sigma.
Other early adopters of Six Sigma include Honeywell and General Electric, where Jack Welch introduced the
method. By the late 1990s, about two-thirds of the Fortune 500 organizations had begun Six Sigma initiatives with
the aim of reducing costs and improving quality.
In recent years, some practitioners have combined Six Sigma ideas with lean manufacturing to create a
methodology named Lean Six Sigma. The Lean Six Sigma methodology views lean manufacturing, which
addresses process flow and waste issues, and Six Sigma, with its focus on variation and design, as complementary
disciplines aimed at promoting "business and operational excellence". Companies such as GE, Accenture, Verizon,
GENPACT, and IBM use Lean Six Sigma to focus transformation efforts not just on efficiency but also on growth.
Muhammad Kaleem GCT Peshawar
18

It serves as a foundation for innovation throughout the organization, from manufacturing and software
development to sales and service delivery functions.
The International Organization for Standardization (ISO) has published in 2011 the first standard "ISO
13053:2011" defining a Six Sigma process. Other "standards" are created mostly by universities or companies that
have so-called first-party certification programs for Six Sigma.

Difference between related concepts

Lean management and Six Sigma are two concepts which share similar methodologies and tools. Both programs
are Japanese influenced, but they are two different programs. Lean management is focused on eliminating waste
and ensuring efficiency while Six Sigma's focus is on eliminating defects and reducing variability.

Methodologies
Six Sigma projects follow two project methodologies inspired by Deming's Plan-Do-Check-Act Cycle. These
methodologies, composed of five phases each, bear the acronyms DMAIC and DMADV.

 DMAIC ("duh-may-ick", /dʌ.ˈmeɪ.ɪk/) is used for projects aimed at improving an existing business process.
 DMADV ("duh-mad-vee", /dʌ.ˈmæd.vi/) is used for projects aimed at creating new product or process designs.
DMAIC

The five steps of DMAIC

Main article: DMAIC
The DMAIC project methodology has five phases:

 Define the system, the voice of the customer and their requirements, and the project goals, specifically.
 Measure key aspects of the current process and collect relevant data; calculate the 'as-is' Process Capability.
 Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are,
and attempt to ensure that all factors have been considered. Seek out root cause of the defect under
investigation.
 Improve or optimize the current process based upon data analysis using techniques such as design of
experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set up
pilot runs to establish process capability.
 Control the future state process to ensure that any deviations from the target are corrected before they result in
defects. Implement control systems such as statistical process control, production boards, visual workplaces,
and continuously monitor the process. This process is repeated until the desired quality level is obtained.
Some organizations add a Recognize step at the beginning, which is to recognize the right problem to work on,
thus yielding an RDMAIC methodology.

Muhammad Kaleem GCT Peshawar

19

DMADV or DFSS

The five steps of DMADV

The DMADV project methodology, known as DFSS ("Design For Six Sigma"),features five phases:

 Define design goals that are consistent with customer demands and the enterprise strategy.
 Measure and identify CTQs (characteristics that are Critical To Quality), measure product capabilities,
production process capability, and measure risks.
 Analyze to develop and design alternatives
 Design an improved alternative, best suited per analysis in the previous step
 Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s).
Quality management tools and methods
Within the individual phases of a DMAIC or DMADV project, Six Sigma utilizes many established quality-
management tools that are also used outside Six Sigma. The following table shows an overview of the main
methods used.

 5 Whys
 Statistical and fitting tools
 Analysis of variance
 General linear model
 ANOVA Gauge R&R
 Regression analysis
 Correlation
 Scatter diagram
 Chi-squared test
 Axiomatic design
 Business Process Mapping/Check sheet
 Cause & effects diagram (also known as fishbone or Ishikawa diagram)
 Control chart/Control plan (also known as a swimlane map)/Run charts
 Cost-benefit analysis
 CTQ tree
 Design of experiments/Stratification
 Histograms/Pareto analysis/Pareto chart
 Pick chart/Process capability/Rolled throughput yield
 Quality Function Deployment (QFD)
 Quantitative marketing research through use of Enterprise Feedback Management (EFM) systems
 Root cause analysis
 SIPOC analysis (Suppliers, Inputs, Process, Outputs, Customers)
 COPIS analysis (Customer centric version/perspective of SIPOC)
Muhammad Kaleem GCT Peshawar
20

 Taguchi methods/Taguchi Loss Function

 Value stream mapping

Implementation roles
One key innovation of Six Sigma involves the absolute "professionalizing" of quality management functions. Prior
to Six Sigma, quality management in practice was largely relegated to the production floor and to statisticians in a
separate quality department. Formal Six Sigma programs adopt a kind of elite ranking terminology (similar to
some martial arts systems, like judo) to define a hierarchy (and special career path) that includes all business
functions and levels.
Six Sigma identifies several key roles for its successful implementation.

 Executive Leadership includes the CEO and other members of top management. They are responsible for
setting up a vision for Six Sigma implementation. They also empower the other role holders with the freedom
and resources to explore new ideas for breakthrough improvements by transcending departmental barriers and
overcoming inherent resistance to change.
 Champions take responsibility for Six Sigma implementation across the organization in an integrated manner.
The Executive Leadership draws them from upper management. Champions also act as mentors to Black Belts.
 Master Black Belts, identified by Champions, act as in-house coaches on Six Sigma. They devote 100% of
their time to Six Sigma. They assist Champions and guide Black Belts and Green Belts. Apart from statistical
tasks, they spend their time on ensuring consistent application of Six Sigma across various functions and
departments.
 Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific projects. They
devote 100% of their valued time to Six Sigma. They primarily focus on Six Sigma project execution and
special leadership with special tasks, whereas Champions and Master Black Belts focus on identifying
projects/functions for Six Sigma.
 Green Belts are the employees who take up Six Sigma implementation along with their other job
responsibilities, operating under the guidance of Black Belts.
According to proponents of the system, special training is needed for all of these practitioners to ensure that they
follow the methodology and use the data-driven approach correctly.
Some organizations use additional belt colours, such as Yellow Belts, for employees that have basic training in Six
Sigma tools and generally participate in projects and "White belts" for those locally trained in the concepts but do
not participate in the project team. "Orange belts" are also mentioned to be used for special cases.
Certification
General Electric and Motorola developed certification programs as part of their Six Sigma implementation,
verifying individuals' command of the Six Sigma methods at the relevant skill level (Green Belt, Black Belt etc.).
Following this approach, many organizations in the 1990s started offering Six Sigma certifications to their
employees. Criteria for Green Belt and Black Belt certification vary; some companies simply require participation
in a course and a Six Sigma project.There is no standard certification body, and different certification services are
offered by various quality associations and other providers against a fee. The American Society for Quality for
example requires Black Belt applicants to pass a written exam and to provide a signed affidavit stating that they
have completed two projects or one project combined with three years' practical experience in the body of
knowledge.

Muhammad Kaleem GCT Peshawar

21

Etymology of "six sigma process"

The term "six sigma process" comes from the notion that if one has six standard deviations between the
process mean and the nearest specification limit, as shown in the graph, practically no items will fail to meet
specifications.This is based on the calculation method employed in process capability studies.
Capability studies measure the number of standard deviations between the process mean and the nearest
specification limit in sigma units, represented by the Greek letter σ (sigma). As process standard deviation goes up,
or the mean of the process moves away from the center of the tolerance, fewer standard deviations will fit between
the mean and the nearest specification limit, decreasing the sigma number and increasing the likelihood of items
outside specification. One should also note that calculation of Sigma levels for a process data is independent of the
data being normally distributed. In one of the criticisms to Six Sigma, practitioners using this approach spend a lot
of time transforming data from non-normal to normal using transformation techniques. It must be said that Sigma
levels can be determined for process data that has evidence of non-normality.

Graph of the normal distribution, which underlies the statistical assumptions of the Six Sigma model. In the centre
at 0, the Greek letter µ (mu) marks the mean, with the horizontal axis showing distance from the mean, marked
in standard deviations and given the letter σ (sigma). The greater the standard deviation, the greater is the spread of
values encountered. For the green curve shown above, µ = 0 and σ = 1. The upper and lower specification limits
(marked USL and LSL) are at a distance of 6σ from the mean. Because of the properties of the normal distribution,
values lying that far away from the mean are extremely unlikely: approximately 1 in a billion too low, and the
same too high. Even if the mean were to move right or left by 1.5σ at some point in the future (1.5 sigma shift,
coloured red and blue), there is still a good safety cushion. This is why Six Sigma aims to have processes where
the mean is at least 6σ away from the nearest specification limit.

Role of the 1.5 sigma shift

Experience has shown that processes usually do not perform as well in the long term as they do in the short
term. As a result, the number of sigmas that will fit between the process mean and the nearest specification limit
may well drop over time, compared to an initial short-term study. To account for this real-life increase in process
variation over time, an empirically based 1.5 sigma shift is introduced into the calculation. According to this idea,
a process that fits 6 sigma between the process mean and the nearest specification limit in a short-term study will
in the long term fit only 4.5 sigma – either because the process mean will move over time, or because the long-
term standard deviation of the process will be greater than that observed in the short term, or both.
Hence the widely accepted definition of a six sigma process is a process that produces 3.4 defective parts per
million opportunities (DPMO). This is based on the fact that a process that is normally distributed will have 3.4
parts per million outside the limits, when the limits are six sigma from the "original" mean of zero and the process
mean is then shifted by 1.5 sigma (and therefore, the six sigma limits are no longer symmetrical about the mean).
Muhammad Kaleem GCT Peshawar
22

The former six sigma distribution, when under the effect of the 1.5 sigma shift, is commonly referred to as a 4.5
sigma process. However, it should be noted that the failure rate of a six sigma distribution with the mean shifted
1.5 sigma is not equivalent to the failure rate of a 4.5 sigma process with the mean centered on zero. This allows
for the fact that special causes may result in a deterioration in process performance over time and is designed to
prevent underestimation of the defect levels likely to be encountered in real-life operation.
The role of the sigma shift is mainly academic. The purpose of six sigma is to generate organizational performance
improvement. It is up to the organization to determine, based on customer expectations, what the appropriate sigma
level of a process is. The purpose of the sigma value is as a comparative figure to determine whether a process is
improving, deteriorating, stagnant or non-competitive with others in the same business. Six sigma (3.4 DPMO) is
not the goal of all processes.
Sigma levels

A control chart depicting a process that experienced a 1.5 sigma drift in the process mean toward the upper
specification limit starting at midnight. Control charts are used to maintain 6 sigma quality by signaling when
quality professionals should investigate a process to find and eliminate special-cause variation.
The table below gives long-term DPMO values corresponding to various short-term sigma levels.
These figures assume that the process mean will shift by 1.5 sigma toward the side with the critical specification
limit. In other words, they assume that after the initial study determining the short-term sigma level, the long-
term Cpk value will turn out to be 0.5 less than the short-term Cpk value. So, for example, the DPMO figure given
for 1 sigma assumes that the long-term process mean will be 0.5 sigma beyond the specification limit (Cpk = –
0.17), rather than 1 sigma within it, as it was in the short-term study (Cpk = 0.33). Note that the defect percentages
indicate only defects exceeding the specification limit to which the process mean is nearest. Defects beyond the far
specification limit are not included in the percentages.
The formula used here to calculate the DPMO is thus

Muhammad Kaleem GCT Peshawar

23

Sigma Sigma (with 1.5σ Percent Percentage Short-term Long-term

DPMO
level shift) defective yield Cpk Cpk

1 −0.5 691,462 69% 31% 0.33 −0.17

2 0.5 308,538 31% 69% 0.67 0.17

3 1.5 66,807 6.7% 93.3% 1.00 0.5

4 2.5 6,210 0.62% 99.38% 1.33 0.83

5 3.5 233 0.023% 99.977% 1.67 1.17

6 4.5 3.4 0.00034% 99.99966% 2.00 1.5

7 5.5 0.019 0.0000019% 99.9999981% 2.33 1.83

Application
Six Sigma mostly finds application in large organizations. An important factor in the spread of Six Sigma was
GE's 1998 announcement of $350 million in savings thanks to Six Sigma, a figure that later grew to more than
$1 billion. According to industry consultants like Thomas Pyzdek and John Kullmann, companies with fewer
than 500 employees are less suited to Six Sigma implementation or need to adapt the standard approach to
make it work for them. Six Sigma however contains a large number of tools and techniques that work well in
small to mid-size organizations. The fact that an organization is not big enough to be able to afford Black Belts
does not diminish its abilities to make improvements using this set of tools and techniques. The infrastructure
described as necessary to support Six Sigma is a result of the size of the organization rather than a requirement
of Six Sigma itself.
Although the scope of Six Sigma differs depending on where it is implemented, it can successfully deliver its
benefits to different applications.
Manufacturing
After its first application at Motorola in the late 1980s, other internationally recognized firms currently
recorded high number of savings after applying Six Sigma. Examples of these are Johnson and Johnson, with
$600 million of reported savings, Texas Instruments, which saved over $500 million as well as Telefonica de
Espana, which reported $30 million euros of revenue in the first 10 months. On top of this, other organizations
like Sony and Boeing achieved large percentages in waste reduction.
Muhammad Kaleem GCT Peshawar
24

Engineering and Construction

Although companies have considered common quality control and process improvement strategies, there’s still
a need for more reasonable and effective methods as all the desired standards and client satisfaction have not
always been reached. There is still a need for an essential analysis that can control the factors affecting
concrete cracks and slippage between concrete and steel. After conducting a case study on Tinjin Xianyi
Construction Technology Co, Ltd., it was found that construction time and construction waste were reduced by
26.2% and 67% accordingly after adopting Six Sigma. Similarly, Six Sigma implementation was studied at one
of the largest engineering and construction companies in the world: Bechtel Corporation, where after an initial
investment of $30 million in a Six Sigma program that included identifying and preventing rework and defects,
over $200 million were saved.
Finance
Six Sigma has played an important role by improving accuracy of allocation of cash to reduce bank charges,
automatic payments, improving accuracy of reporting, reducing documentary credits defects, reducing check
collection defects, and reducing variation in collector performance. Two of the financial institutions that have
reported considerable improvements in their operations are Bank of America and American Express. By 2004
Bank of America increased customer satisfaction by 10.4% and decreased customer issues by 24% by applying
Six Sigma tools in their streamline operations. Similarly, American Express successfully eliminated non-
received renewal credit cards and improved their overall processes by applying Six Sigma principles. This
strategy is also currently being applied by other financial institutions like GE Capital Corp., JP Morgan Chase,
and Sun Trust Banks, with customer satisfaction being their main objective.
Supply Chain
In this field, it important to ensure that products are delivered to clients at the right time while preserving high-
quality standards from the beginning to the end of the supply chain. By changing the schematic diagram for the
supply chain, Six Sigma can ensure quality control on products (defect free) and guarantee delivery deadlines,
which are the two major issues involved in the supply chain.
Healthcare
This is a sector that has been highly matched with this doctrine for many years because of the nature of zero
tolerance for mistakes and potential for reducing medical errors involved in healthcare. The goal of Six Sigma
in healthcare is broad and includes reducing the inventory of equipment that brings extra costs, altering the
process of healthcare delivery in order to make more efficient and refining reimbursements. A study at the
University of Texas MD Anderson Cancer Center, which recorded an increase in examinations with no
additional machines of 45% and reduction in patience preparation time of 40 minutes; from 45 minutes to 5
minutes in multiple cases.

Criticism
Lack of originality
Quality expert Joseph M. Juran described Six Sigma as "a basic version of quality improvement", stating that
"there is nothing new there. It includes what we used to call facilitators. They've adopted more flamboyant
terms, like belts with different colors. I think that concept has merit to set apart, to create specialists who can
be very helpful. Again, that's not a new idea. The American Society for Quality long ago established
certificates, such as for reliability engineers."

Muhammad Kaleem GCT Peshawar

25

Inadequate for complex manufacturing

Quality expert Philip B. Crosby pointed out that the Six Sigma standard doesn't go far enough—customers
deserve defect-free products every time. For example, under the Six Sigma standard, semiconductors which
require the flawless etching of millions of tiny circuits onto a single chip are all defective, he claims.
Role of consultants
The use of "Black Belts" as itinerant change agents has fostered an industry of training and certification.
Critics have argued there is overselling of Six Sigma by too great a number of consulting firms, many of which
claim expertise in Six Sigma when they have only a rudimentary understanding of the tools and techniques
involved or the markets or industries in which they are acting.
Potential negative effects
A Fortune article stated that "of 58 large companies that have announced Six Sigma programs, 91 percent have
trailed the S&P 500 since". The statement was attributed to "an analysis by Charles Holland of consulting
firm Qualpro (which espouses a competing quality-improvement process)". The summary of the article is that
Six Sigma is effective at what it is intended to do, but that it is "narrowly designed to fix an existing process"
and does not help in "coming up with new products or disruptive technologies."
Over-reliance on statistical tools
A more direct criticism is the "rigid" nature of Six Sigma with its over-reliance on methods and tools. In most
cases, more attention is paid to reducing variation and searching for any significant factors and less attention is
paid to developing robustness in the first place (which can altogether eliminate the need for reducing
variation). The extensive reliance on significance testing and use of multiple regression techniques increases
the risk of making commonly unknown types of statistical errors or mistakes. A possible consequence of Six
Sigma's array of P-value misconceptions is the false belief that the probability of a conclusion being in error
can be calculated from the data in a single experiment without reference to external evidence or the plausibility
of the underlying mechanism. One of the most serious but all-too-common misuses of inferential statistics is to
take a model that was developed through exploratory model building and subject it to the same sorts of
statistical tests that are used to validate a model that was specified in advance.
Another comment refers to the often mentioned Transfer Function, which seems to be a flawed theory if
looked at in detail.Since significance tests were first popularized many objections have been voiced by
prominent and respected statisticians. The volume of criticism and rebuttal has filled books with language
seldom used in the scholarly debate of a dry subject. Much of the first criticism was already published more
than 40 years ago. Refer to: Statistical hypothesis testing#Criticism for details.
Articles featuring critics have appeared in the November–December 2006 issue of USA Army
Logistician regarding Six-Sigma: "The dangers of a single paradigmatic orientation (in this case, that of
technical rationality) can blind us to values associated with double-loop learning and the learning
organization, organization adaptability, workforce creativity and development, humanizing the
workplace, cultural awareness, and strategy making."
Nassim Nicholas Taleb considers risk managers little more than "blind users" of statistical tools and
methods. He states that statistics is fundamentally incomplete as a field as it cannot predict the risk of rare
events — something Six Sigma is specially concerned with. Furthermore, errors in prediction are likely to
occur as a result of ignorance for or distinction between epistemic and other uncertainties. These errors are the
biggest in time variant (reliability) related failures.

Muhammad Kaleem GCT Peshawar

26

Stifling creativity in research environments

According to an article by John Dodge, editor in chief of Design News, use of Six Sigma is inappropriate in a
research environment. Dodge states "excessive metrics, steps, measurements and Six Sigma's intense focus on
reducing variability water down the discovery process. Under Six Sigma, the free-wheeling nature of
brainstorming and the serendipitous side of discovery is stifled." He concludes "there's general agreement that
freedom in basic or pure research is preferable while Six Sigma works best in incremental innovation when
there's an expressed commercial goal."
A BusinessWeek article says that James McNerney's introduction of Six Sigma at 3M had the effect of stifling
creativity and reports its removal from the research function. It cites two Wharton School professors who say
that Six Sigma leads to incremental innovation at the expense of blue skies research. This phenomenon is
further explored in the book Going Lean, which describes a related approach known as lean dynamics and
provides data to show that Ford's "6 Sigma" program did little to change its fortunes.
Lack of systematic documentation
One criticism voiced by Yasar Jarrar and Andy Neely from the Cranfield School of Management's Centre for
Business Performance is that while Six Sigma is a powerful approach, it can also unduly dominate an
organization's culture; and they add that much of the Six Sigma literature – in a remarkable way (six-sigma
claims to be evidence, scientifically based) – lacks academic rigor:
One final criticism, probably more to the Six Sigma literature than concepts, relates to the evidence for Six
Sigma’s success. So far, documented case studies using the Six Sigma methods are presented as the strongest
evidence for its success. However, looking at these documented cases, and apart from a few that are detailed
from the experience of leading organizations like GE and Motorola, most cases are not documented in a
systemic or academic manner. In fact, the majority are case studies illustrated on websites, and are, at best,
sketchy. They provide no mention of any specific Six Sigma methods that were used to resolve the problems.
It has been argued that by relying on the Six Sigma criteria, management is lulled into the idea that something
is being done about quality, whereas any resulting improvement is accidental (Latzko 1995). Thus, when
looking at the evidence put forward for Six Sigma success, mostly by consultants and people with vested
interests, the question that begs to be asked is: are we making a true improvement with Six Sigma methods or
just getting skilled at telling stories? Everyone seems to believe that we are making true improvements, but
there is some way to go to document these empirically and clarify the causal relations.

1.5 sigma shift

The statistician Donald J. Wheeler has dismissed the 1.5 sigma shift as "goofy" because of its arbitrary
nature.[47] Its universal applicability is seen as doubtful.
The 1.5 sigma shift has also become contentious because it results in stated "sigma levels" that reflect short-
term rather than long-term performance: a process that has long-term defect levels corresponding to 4.5 sigma
performance is, by Six Sigma convention, described as a "six sigma process." The accepted Six Sigma scoring
system thus cannot be equated to actual normal distribution probabilities for the stated number of standard
deviations, and this has been a key bone of contention over how Six Sigma measures are defined.The fact that
it is rarely explained that a "6 sigma" process will have long-term defect rates corresponding to 4.5 sigma
performance rather than actual 6 sigma performance has led several commentators to express the opinion that
Six Sigma is a confidence trick.

Muhammad Kaleem GCT Peshawar