Tqm Versus Six Sigma

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MANA 6333-N1 4 March 2009 Total Quality Management (TQM) vs. Six Sigma: Measuring Success in the Insurance Industry One of the most frequently asked questions among those in the organizational management world is the difference between Six Sigma and Total Quality Management (TQM). According to BNet Business Dictionary, Six Sigma is defined as “a data-driven method for achieving near perfect quality, analysis can be focused upon any part of production or service activities, and has a strong emphasis on statistical analysis in design, manufacturing, and customer-oriented activities;” TQM as “a philosophy and style of management that gives everyone in an organization responsibility for delivering quality to the customer…show more content…
At the operations level, a goal might be to increase the throughput of a production department. At the project level goals might be to reduce the defect level and increase throughput for a particular process. Obtain goals from direct communication with customers, shareholders, and employees. M Measure the existing system. Establish valid and reliable metrics to help monitor progress towards the goal(s) defined at the previous step. Begin by determining the current baseline. Use exploratory and descriptive data analysis to help you understand the data. A Analyze the system to identify ways to eliminate the gap between the current performance of the system or process and the desired goal. Use statistical tools to guide the analysis. I Improve the system. Be creative in finding new ways to do things better, cheaper, or faster. Use project management and other planning and management tools to implement the new approach. Use statistical methods to validate the improvement. C Control the new system. Institutionalize the improved system by modifying compensation and incentive systems, policies, procedures, MRP, budgets, operating instructions and other management systems. You may wish to utilize standardization such as ISO 9000 to assure that documentation is correct. Use statistical tools to monitor stability of the new systems. Figure 7-Overview of DMAIC
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