blue ocean strategy

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TQM vs Six Sigma 1
Abstract
This paper will help readers to understand the difference between Six sigma and Total
quality management and it will also describe the background of both concepts with the help of
definitions and different examples. Both concepts have many similarities and differences. And in
the competitive corporate market, it is important for every organization to know the differences
and similarities of these two concepts to run a successful business. Knowledge of TQM and Six
Sigma can help the companies to enhance the quality of their product or service by selecting best
alternative according to their requirement.
TQM vs Six Sigma 2
Introduction
Total Quality Management and Six sigma are important for every company to enhance
the quality of their products or services. Because products with better quality can help the
organizations to create a good brand image in the market. However, for many organizations it is
difficult to select the best alternative and that issue can be solved by comparing both concepts.
Six Sigma
Nowadays many organizations follow Six Sigma to enhance their work process and to
improve the customer satisfaction. Six Sigma uses statistical analysis to get the better outcome
and its focus is on the customer satisfaction, reducing manufacturing defects, and reducing
processing time. As Will Rogers say in the book “What is Six Sigma?”, “Even if you are on the
right track, you will get run over if you just sit there.” When organizations fail to meet their
customer requirements, the chances of losing those customers increases. And because of that
competitors get benefited. And even if organizations do not improve their products according to
the market situation, customers might start complaining about the product. To avoid such
circumstances many company follow Six Sigma approach which uses quantitative tools to
improve the product and customer satisfaction.
Six Sigma Toolkit
Brainstorming
This is most popular method of generating ideas in many organizations. But before
brainstorming, there are some important factors that needs to be considered. Such as, all the team
TQM vs Six Sigma 3
members must be familiar with the problem and they should respect each other’s ideas.
Brainstorming helps the group to come up with more than one solution.
Affinity Diagram
After brainstorming, affinity diagram helps the team members to categorize ideas in
different sections and to evaluate those ideas. For example, after the brainstorming, if a group
has combined ideas about customer satisfaction and product improvements, affinity diagram
helps them to put those ideas in different categories.
Multi-Voting
This method categorizes ideas in different groups according to its priorities. In this tool,
every group member give votes to the most important idea and the idea with maximum votes
becomes priority. In multi-voting, team members must make sure that every team member gets
the same information.
Tree Diagram
This diagram is used to show connection and link between different ideas. It also divides
bigger concepts in different categories. It is the best alternative to compare the outcome of
different alternatives. For example, if team come up with four different paths for cost reduction,
they can use tree diagram to compare each path and use it to find most efficient cost reduction
alternative.
SIPOC Diagram
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TQM vs Six Sigma 4
With the help of SIPOC diagram, managers can create organized chart of the work map.
It shows the clear purpose of the process. SIPOC diagram has five columns which are supplier,
inputs, process, output and customers. In this diagram, team members divide data in five
categories according to the columns. So, they will put supplier related information in the first
column and customers related information in the last column. Usually while making SIPOC
diagram, team members should try to keep the process column as simple as possible so that all
the team members can understand easily.
Flow chart/Process Map
Flow chart is a map which shows different steps of the work process. It usually starts
with inputs and ends with the output. These kind of chart helps to display the relationships
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