Total Quality Management vs Six Sigma: Choosing Excellence

Did you know? The Tata Motors’ Six Sigma project reduced cylinder head gasket failure costs from ₹20 lakhs to ₹0.15 lakhs, significantly enhancing engine reliability.

TQM is a company-wide philosophy introduced in the 1950s, emphasizing continuous improvement, employee involvement, and customer focus. It relies on qualitative tools like the PDCA cycle. In contrast, Six Sigma is a data-driven method developed by Motorola in the 1980s. It aims to reduce defects to fewer than 3.4 per million opportunities using statistical tools.

This blog explains everything you need to know about Total Quality Management vs Six Sigma, how quality practices have evolved, and the core principles behind both approaches.

What Is Six Sigma Total Quality Management?

If you're trying to improve your process efficiency and team culture, Six Sigma Total Quality Management (TQM) offers the best of both worlds. It’s a hybrid approach that combines Six Sigma's data-driven tools with TQM's people-first mindset.

You can use Six Sigma techniques like DMAIC (Define, Measure, Analyze, Improve, Control) and statistical analysis to reduce errors and fix process issues. These tools help you find the actual root cause of problems instead of guessing.

At the same time, you can apply TQM principles like employee involvement, training, and a culture of continuous improvement. That means you’re also making sure your team is aligned, motivated, and focused on quality every day.

What Is Six Sigma? 

Six Sigma is a data-driven methodology designed to reduce process variation and eliminate defects. It focuses on measurable outcomes and uses structured steps to fix problems.

The term "Six Sigma" refers to a statistical level of process performance where the defect rate is just 3.4 defects per million opportunities. The ultimate goal of Six Sigma is to achieve near-perfect quality by minimizing variability and ensuring processes are consistent and reliable.

Six Core Principles of Six Sigma:

1. Focus on the Customer: Deliver what the customer needs with minimal defects.
2. Use Data to Identify Problems: Make decisions based on facts, not assumptions.
3. Eliminate Variation: Reduce inconsistencies to improve reliability.
4. Involve the Entire Team: Quality is everyone’s responsibility.
5. Be Proactive: Solve issues before they grow using preventive methods.
6. Ensure Sustainable Results: Use structured methods to maintain improvements over time.

Let’s now look at the essential components that enable this structured process.

Core Components of Six Sigma

It's important to understand how Six Sigma functions in real-world situations. You don’t make decisions based on guesswork. Instead, you start by clearly defining the problem and measuring its frequency. After collecting the necessary data, you analyze the root causes, test potential solutions, and implement long-term improvements. This structured approach avoids surface-level fixes and focuses on solving deep, systemic issues.

Here's a clear breakdown of how each component fits into the Six Sigma methodology:

1. DMAIC Framework

The DMAIC framework is a step-by-step method for addressing inefficiencies in existing business processes. It helps you avoid jumping to quick fixes by first understanding what’s actually going wrong. By following DMAIC, teams don’t guess. They fix real problems with real evidence.

Here’s how it works:

• Define: First, clearly identify the problem. For example, let’s say you are facing too many customer returns. That’s the issue you need to solve.
• Measure: Then, you collect data to understand the severity of the problem. You might examine return rates from different regions or months.
• Analyze: Once you have data, you investigate why the issue is occurring. For example, certain products may have defects, or instructions may be unclear.
• Improve: After finding the cause, you test and apply changes, like redesigning packaging or providing clearer user guides.
• Control: Finally, you implement systems (like checklists or dashboards) to prevent the problem from returning.

2. Statistical Tools

After collecting data, you use these tools to make informed decisions based on facts rather than opinions. They help identify patterns and trends in the data, leading to more accurate and effective solutions.

• Control Charts show how a process performs over time. For example, if you're tracking delivery times each week, a control chart can help you see whether delays are random or part of a bigger issue. In Six Sigma, this enables you to monitor stability and know exactly when to take action.
• Regression Analysis tells you how one variable affects another. Suppose you find that as the number of items in a shipment increases, the breakage rate goes up too. That insight can help you redesign packaging or adjust shipping methods. In Six Sigma, this enables you to identify root causes, monitor process stability, and know exactly when to take action for improvement.
• Hypothesis Testing is like a small experiment. You make an assumption (like “Switching to a new supplier will reduce defects”) and then use your data to test if that’s really true. Six Sigma uses this method to help you confirm that changes you make are actually improving the process.

3. Root Cause Analysis

This approach helps avoid quick fixes and ensures that the root cause of the problem is addressed. It enables you to go beyond surface-level symptoms and fix the problem at its source, so it doesn’t keep happening again. During the Analyze phase of Six Sigma, you typically use tools such as:

• Fishbone diagrams: Also called cause-and-effect diagrams, these help you and your team brainstorm possible causes of a problem. You map out areas like people, processes, materials, and methods to see where things might be going wrong. This makes it easier for teams to collaborate and spot patterns.
• 5 Whys: You ask “Why?” five times in a row. With each answer, you dig deeper until you reach the true reason behind the issue. It’s simple but powerful for uncovering hidden problems.

4. Process Control Methods 

After improvements are made, it’s crucial to monitor progress to prevent backsliding. Continuous monitoring and feedback loops ensure that improvements stay intact over time.

• Control plans: Control Plans are detailed guidelines that document the new process to ensure consistent execution. For example, “Check all product labels before shipping” might be added as a control step.
• Monitoring systems: Tools like Power BI dashboards can help watch key metrics (like return rates or delivery time). If anything unusual happens, the team can spot it early and act fast.

Also Read: How to Become a Power BI Developer

What Is Total Quality Management? 

Total Quality Management (TQM) is a management approach that centres quality at the center of your organization's work. It encourages you to build a work culture where every team member contributes to maintaining high standards, no matter their role. 

Instead of placing the burden of quality on a single team, TQM promotes shared responsibility across departments. Whether it's sales, operations, or customer support, everyone works together to improve processes and deliver better results. Here’s how TQM works in practice:

• Shared responsibility across your organization: TQM encourages cross-functional collaboration. Your marketing team, development team, and even the admin staff all have a role in maintaining quality standards. It’s not limited to one department.
• Focus on excellence at every step: With TQM, you don’t wait until the final stage to check for errors. Quality checks and improvements happen at each step of your process so you can catch issues early.
• Customer satisfaction is your priority: Every improvement you make is tied to what your customers need. You look at feedback, fix pain points, and aim to exceed expectations consistently.

The 8 Principles of Total Quality Management 

Total Quality Management (TQM) drives continuous improvement and enhances customer satisfaction. When you adopt these principles, you work together to improve processes and outcomes. Here’s how each one plays a role:

1. Customer Focus

Everything starts with your customer. Your success depends on meeting their needs and going beyond their expectations. Every improvement you make should aim to boost customer satisfaction and deliver real value that they care about.

• Example: Toyota uses real-time customer feedback to refine vehicle features and enhance production quality.

2. Total Employee Involvement

Quality is everyone’s responsibility. From the CEO to the newest employee, everyone must be involved in the quality improvement process. The collective effort drives innovation and ensures that customer expectations are met consistently.

• Example: Infosys empowers all employees to suggest process improvements through their internal “Zero Defect” quality initiative.

3. Centered on Processes

If you want better results, focus on improving your processes. By enhancing how you operate, you directly improve the quality of your output and, by extension, customer satisfaction. Define, monitor, and refine your processes to ensure continuous improvement.

• Example: Amul standardized its milk processing steps to reduce wastage and improve shelf life.

4. Integrated Business Processes

As your company grows, different departments may start following their processes. This creates confusion and slows things down. With TQM, you’re expected to align all key business processes across your organization so that everything runs smoothly and consistently.

• Example: Tata Steel streamlined cross-departmental workflows using TQM to reduce order processing delays.

5. Continual Improvement

There’s always room to improve. TQM encourages you to adopt a mindset of constant progress, where you and your team are always looking for opportunities to improve. It's about asking, 'How can we do this better?' rather than settling for, 'This is good enough.

• Example: Asian Paints constantly upgrades its supply chain model to reduce delivery times and costs.

7. Fact-Based Decisions

Data should drive decisions, not assumptions. Metrics and measurable results are key in guiding strategy and actions. By using facts, you can identify areas for improvement, track progress, and adjust the course if needed to achieve the desired outcomes.

• Example: Maruti Suzuki uses Six Sigma metrics and control charts to reduce assembly line errors.

8. Communication

Effective communication is the foundation of TQM. For your organization to thrive, information must flow freely from top to bottom and vice versa. You need to understand the challenges and insights of your team, while your employees should be aware of your company's goals and strategies. Two-way communication ensures alignment and collaboration throughout your company.

• Example: Wipro holds monthly town halls and cross-functional syncs to align goals and share insights across teams.

Now that you understand the key principles of TQM, let’s look at real-life examples where Total Quality Management TQM and Six Sigma have delivered measurable results.

Examples of Six Sigma Total Quality Management in Action

Many companies worldwide have implemented Total Quality Management TQM and Six Sigma to improve their processes, reduce waste, and deliver consistent results. These examples help show how different industries use these methods to address real business problems.

Here's a simple comparison of how various companies apply Total Quality Management TQM and Six Sigma in real-world scenarios:

Now, let’s explore how TQM aligns with Six Sigma and how both approaches complement each other in driving long-term quality improvements.

Total Quality Management vs Six Sigma

Traditional quality improvement methods often focus on visual checks and past experiences. For example, you might rely on manual inspection to catch stitching errors in garments. However, this approach can miss systemic issues that only data can uncover. In contrast, Six Sigma and Total Quality Management combine organizational discipline with statistical analysis to identify root causes and permanently fix them.

Philosophical and Methodological Differences

Both Total Quality Management (TQM) and Six Sigma aim to improve quality, but they approach it differently.

• TQM is about building a culture of quality across your entire organization. Every employee, no matter their role, is encouraged to take responsibility for quality. This happens through regular training, open communication, and involving employees in decision-making and problem-solving. As a manager, you support your teams by setting clear quality goals and recognizing efforts that improve performance.

The goal is to make small, ongoing improvements that prevent problems before they occur. It’s less about strict rules and more about creating an environment where everyone works together to get better over time.

• Six Sigma, on the other hand, is more structured and data-driven. It uses detailed measurements and statistical analysis to find where errors are happening and then eliminates the root causes. It follows a specific process (DMAIC: Define, Measure, Analyze, Improve, Control) and usually requires trained specialists like Green Belts or Black Belts to lead projects.

If you want long-term cultural improvement, TQM is more suitable. If your goal is to fix a specific issue, such as reducing shipping errors by 40% in three months, Six Sigma works better. In many cases, combining both can offer the greatest long-term value.

Here's a side-by-side comparison to clearly show how Total Quality Management and Six Sigma differ in their approach, structure, and outcomes.

Also Read: What is Quality Control (QC)? How Does QC Work? 

Key Tools and Techniques Compared

When deciding between Total Quality Management (TQM) and Six Sigma, it's essential to understand how each method would approach a problem. Let’s look at the differences in how both methods would handle quality issues in a typical scenario:

TQM Approach:

• Focus on Process and Culture: TQM is all about creating a culture of quality across your organization. It emphasizes involving everyone, from the highest-level executives to the floor workers, in continuous improvement.
• Weekly Reviews: TQM involves holding regular team meetings, in which everyone contributes ideas to identify potential problems. These meetings aim to make incremental improvements over time.
• Standardization and Consistency: Tools like checklists or standard operating procedures (SOPs) ensure consistency in quality and prevent mistakes.
• Continuous Feedback: Regular feedback from workers and customers helps you ensure that quality is maintained at every stage of the process.

Six Sigma Approach:

• Focus on Problem-Solving: Six Sigma is more structured and data-driven, focusing on eliminating defects and solving specific problems.
• Defining the Issue: Before starting, Six Sigma would clearly define the problem, such as a certain defect rate in fabric stitching. It uses data to understand exactly what the issue is.
• Measurement Tools: Six Sigma uses tools like control charts and Pareto analysis to track defects and identify patterns. This helps you reduce variation and ensure the process is always under control.
• DMAIC Framework: Six Sigma follows the DMAIC process (Define, Measure, Analyze, Improve, Control) to tackle specific problems. This structured approach is usually led by a trained Green Belt or Black Belt, ensuring the project follows the right steps.

When should TQM vs. Six Sigma be used?

Choosing between Total Quality Management (TQM) and Six Sigma depends on your organization's goals and the specific challenges you're facing. Here’s a breakdown of when each approach is most effective:

Use TQM if:

• Building a Quality Culture: You want to instill quality in every aspect of your organization, making it a core value. TQM is ideal if your goal is to create a company-wide commitment to quality.
• Involving Everyone: TQM works best when every employee is encouraged to contribute to quality improvement, no matter their role. It’s about creating a sense of ownership at all levels.
• Continuous Improvement: If you focus on ongoing, long-term improvements, TQM fosters a mindset of constant progress. You actively seek ways to improve, rather than just fixing one specific problem.

Use Six Sigma if:

• Addressing Specific Problems: Six Sigma is ideal if you’re dealing with a specific, measurable issue, such as high defect rates or a bottleneck in production. It’s more targeted than TQM.
• Data-Driven Solutions: If you need rapid improvements, Six Sigma’s structured approach with measurable goals helps you track progress and make quick changes.
• Trained Resources: Six Sigma requires specialized training for key personnel, like Green Belts or Black Belts. If you have these trained resources, Six Sigma provides a clear, methodical framework to solve complex problems.

When to Use Both:

Many large organizations, especially in manufacturing, use TQM and Six Sigma together. For instance, Infosys might promote TQM across its culture, making quality everyone's responsibility. At the same time, it could use Six Sigma to fix specific process issues. This dual approach helps maintain a broad focus on quality while also driving targeted improvements where needed.

Similarities in Total Quality Management and Six Sigma

Despite their differences, Six Sigma and TQM approaches share several core goals and tools. By considering factors like your business size, maturity, workforce, and goals, you can choose the right balance of TQM and Six Sigma for your needs. Here are the main similarities:

• Both aim to improve overall quality and customer satisfaction. Whether using cultural change or statistical tools, the end goal is higher product and service quality.
• Use data-driven approaches for continuous improvement. Regular tracking of metrics is key in both methods.
• Both focus on reducing defects, waste, and inefficiencies. They aim to optimize processes by identifying and removing what doesn’t add value.
• Emphasize process standardization and employee involvement. TQM does this through training and communication. Six Sigma does it through defined roles and structured projects.

Also Read: What is Six Sigma? 5 Steps of Six Sigma [Detailed Guide]

Now that we’ve explored the key differences between TQM and Six Sigma, let’s see which approach might be better suited to your organization’s needs.

Total Quality Management vs Six Sigma

Deciding between Total Quality Management (TQM) and Six Sigma is about finding what fits your business structure, maturity, and goals. You should select between them based on whether they’re aiming for a cultural shift or solving targeted quality issues with precision. The table below breaks down the differences in focus, tools, and success metrics, making it easier to decide which approach best suits your business.

Business Impact of Six Sigma Total Quality Management

Implementing Total Quality Management (TQM) and Six Sigma methodologies can significantly enhance operational efficiency, reduce costs, and improve customer satisfaction. These approaches have been successfully adopted across various industries in India, leading to measurable improvements in quality and performance. 

The following case studies illustrate how organizations have used TQM and Six Sigma to achieve substantial business benefits.​

• Tata Motors' Commitment to TQM and Six Sigma: Tata Motors used Six Sigma tools to find the real cause behind frequent cylinder head gasket failures. At the same time, TQM helped different teams take ownership and follow a consistent process to fix the issue. Together, these approaches reduced costs from ₹20 lakhs to just ₹0.15 lakhs. The improvements continued for 12 months, showing how combining data and teamwork improved product reliability and customer trust. 
• TQM and Six Sigma Integration in Taiwan: A study conducted by Kinpo Electronics (KE) in Taiwan explored the integration of Six Sigma within their existing Total Quality Management (TQM) system. By incorporating Six Sigma’s structured methodology into its TQM practices, KE was able to make significant improvements in process efficiency. 
• Infosys's Commitment to TQM and Employee Involvement: Infosys applied TQM to build a quality-first culture across internal teams, focusing on continuous improvement and employee involvement. At the same time, Six Sigma techniques helped standardize processes and track quality metrics more accurately. The combined approach strengthened process efficiency and improved service delivery. This alignment resulted in better client satisfaction and long-term operational gains.

Become an Expert in Six Sigma Total Quality Management

Choosing between Six Sigma and Total Quality Management is a strategic approach to improving business processes. Whether you’re focused on driving long-term cultural change with TQM or tackling specific defects with Six Sigma, both methodologies offer powerful tools to enhance efficiency and customer satisfaction.

Investing in the right training and certification can equip you with the skills needed to lead successful projects, making your journey toward operational excellence more impactful. Below are upGrad’s courses that can help you get started:

• Post Graduate Certificate in Product Management
• SAFe 6.0 Product Owner Product Manager (POPM) Certification
• PMP Certification Training Course
• Advanced General Management Program
• Post Graduate Diploma in Management

Are you not sure where to go next on your Six Sigma journey? upGrad’s personalized career guidance can help you explore the right learning path based on your goals. You can also visit your nearest upGrad center and start hands-on training today!  

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