Six Sigma Process Improvement (2023 Complete Guide)

Have you ever been in a situation where you felt like your company was just not working well?

When a business doesn't run smoothly, it can significantly impact the lives of the people who work there. It can be frustrating, exhausting, and demoralizing.

In this article, we will examine how companies can improve their processes through Six Sigma process improvement. We'll cover what it is and how it works, as well as some examples to illustrate how it can be used.

What Is Six Sigma Process Improvement and How Does It Work?

Six Sigma is a process improvement methodology that Motorola developed in 1986. It is based on a set of principles and practices that are meant to help companies improve the quality of their products and services by cutting down on mistakes.

Six Sigma Process Improvement (2023 Complete Guide)

Using data from past projects, the Six Sigma method looks for processes that have a lot of room for improvement. It then uses these insights to create a plan for improving the process, which includes creating benchmarks and tracking progress over time.

Six Sigma aims to reduce errors down to 3.4 errors per million opportunities (PPM). If a company achieves this goal, it can be said that it has reached six-sigma status. Moreover, Six Sigma ensures that an organization delivers a product or service of the same quality every time. This means that customers will get the quality they expect, even if the way products are made or delivered changes.

Advantages of Using Six Sigma for Process Improvement

Six Sigma is a method that focuses on making processes more effective and better. There are many advantages to using Six Sigma for process improvement, including:

Reduce Waste in Your Process
Create A Process That is Repeatable and Predictable
Improve The Quality of the Product or Service You Deliver to Customers
Improve Employee Satisfaction and Motivation
Reduce Rework, Scrap, Defects, and Customer Complaints
Ensure Compliance With Regulations and Standards
Provide a Competitive Advantage Over Other Companies in Your Industry

1. Increase Employee Engagement by Cutting Waste from Your Process

The first and most important advantage of using Six Sigma for process improvement is that it can help you reduce waste in your processes. When you're running a business, you want to ensure that every step in your process is as efficient as possible. You don't want any steps that don't add value to your end product or take up too much time or effort.

Processes like this are known as wasteful because they do not add value to the final product or service being offered. In other words, they're just taking up space without adding anything to what's being produced.

Six Sigma helps find these kinds of problems so they can be taken out of the production process or fixed so they don't cause problems in the future.

2. Create a Process That is Repeatable and Predictable

Six Sigma's focus on process improvement means that you're creating a repeatable and predictable system. This can be hugely beneficial for your business in many ways. For example, suppose your company has multiple locations, perhaps even across different regions of the country.

In that case, you'll be able to implement the same processes across each one with little deviation. That way, no matter where a customer goes to purchase your product, they'll have a similar experience every time they do so.

Suppose you're selling online or through other channels besides brick-and-mortar stores. In that case, this consistency is even more critical because it helps ensure that customers will receive the same level of service regardless of how they interact with your brand.

It also makes it easier to make changes in the future if they are needed, while causing as little trouble as possible to the business. something that would be much more difficult if each location had its own unique set of rules and regulations about how things were done (or not done).

3. Improve the Quality of the Product or Service You Deliver to Customers

Improving the quality of your product or service is a pretty big deal. It's what keeps your customers coming back, and it's what helps them recommend you to their friends.

When you use Six Sigma, you can ensure that every step of the process is up to standard. You can be sure that no matter how many times your employees do the same thing, they will always give your customers what they expect. And if there are any problems along the way? No problem. You'll be able to track down where things went wrong and fix them before it happens again!

You'll also find it easier to meet customer requests with this tool at your side because you'll be able to see exactly what they asked for and how closely it matches up with what they got (or didn't get). This means less confusion on both sides of the transaction, which makes everyone happier in the long run!

4. Improve Employee Satisfaction and Motivation

Employee satisfaction and motivation are essential parts of any company's success. When employees are satisfied with their work environment, they tend to be more productive and loyal, which leads to better business performance.

A company can use Six Sigma to improve employee satisfaction by improving the processes that employees have access to. For example, if the company has a process for handling customer complaints, it should be as clear and easy to follow as possible. Employees should also be able to take charge of this process and make any changes that are needed.

Employees will be more motivated when they feel valued, respected, and empowered.

5. Reduce Rework, Scrap, Defects, and Customer Complaints

Rework is the process of correcting errors that have already occurred in a process. Scrap is the process of discarding material that does not meet quality standards. Defects are mistakes made during the manufacturing process. Customer complaints are issues raised by customers about products or services. All four can be reduced by using Six Sigma for process improvement.

Improving a process using Six Sigma will help reduce rework because it ensures that all processes are done correctly the first time and do not require changes to be made later to correct mistakes. This saves time and money for companies that use Six Sigma. They no longer need to pay employees overtime pay or hire more workers to cover shifts due to personnel shortages caused by reworking jobs too many times before they're successfully completed on their first try.

Moreover, if your company sells its products or services directly to consumers, You'll save money by reducing customer complaints, since these will also be reduced due to better quality control measures being put into place during production processes. Fewer defective items will be shipped out into the marketplace (which can lead customers to return the product for a refund or post a bad review online).

6. Ensure Compliance With Regulations and Standards

One of the main reasons companies use Six Sigma is to make sure they follow rules and standards. As part of their quality control program, they can identify processes that are failing to meet those standards and adjust them accordingly.

This is important because some businesses are required by law to follow certain rules about their products or services. For example, if your company sells food products, you must meet specific health and safety standards before selling them. This means that in addition to making sure that your food tastes good, you also need to ensure that it is safe for people who consume it.

7. Give Your Company a Competitive Advantage Over Others in Your Industry

In the competitive business world, it's crucial to have a competitive advantage over your competitors. One way to do this is by using Six Sigma for process improvement.

Six Sigma will allow you to get your processes down to a science, which can be used as a selling point when attracting customers. It's also much easier for your employees to understand what they need to do when clear, simple steps are laid out.

8. Increase Employee Engagement

Six Sigma can help your company increase employee engagement because it gives them a voice in innovation. When your company uses Six Sigma processes, employees can learn new skills and feel more in charge. This collaboration is critical for developing long-term relationships with customers looking for more than just a good product or service. They want something that's going to improve their lives in some way.

By putting Six Sigma into place at your company, you'll be able to find places where you can improve so you can focus on making better products and making sure they're delivered quickly. This means that you will not only be able to satisfy your customers, but you will also be able to keep costs low!

What Problems Does Six Sigma Solve?

Six Sigma is a tool businesses use to eliminate product and service defects. It's been around since the 1980s and is used by companies like GE, Ford Motor Company, and Motorola.

Six Sigma works by focusing on eight different types of problems:

Design Defects
Process Defects
Material Defects
Human Error
Measurement Errors
Customer Satisfaction Issues
Cost Of Poor Quality
Waste (How Much Time/Money is Wasted Because of Errors)

1. Design Defects

Design defects are defects that occur during the design process. This can be a problem with the product itself, but it can also be a problem with how it is marketed or used. For example, if you're designing a new coffee maker and you don't realize that its lid is too small for most cups and will cause spillage when people use it, that would be a design defect.

2. Process Defects

Six Sigma is a tool for identifying and correcting process defects. In other words, it helps you find out where problems are in your business or organization and how to fix them.

Processes can have defects in many ways: they can be inefficient, waste resources, not work correctly, and so on. Six Sigma's goal is to ensure that if something goes wrong with your process, you can fix it quickly. Whether it's a defect or a problem, you know how to identify and fix it so that the same thing doesn't happen again.

3. Material Defects

Material defects happen when a mistake is made in the process of making a product. This can be anything from a misplaced stitch to an improperly sized bolt. Material defects can affect the durability and quality of a product, which is why it's so important to catch them before they're shipped out to customers.

Six Sigma helps prevent material defects in two ways:

First, it makes sure that every step of the production process is tracked and watched, so that any mistakes can be found and fixed before they end up in the final product.

Second, it ensures that every employee knows exactly what they're supposed to do at every production stage. This means that if an employee makes a mistake, they can quickly identify what went wrong and fix it before moving on to their next task.

4. Human Error

Human error is a massive problem for companies. It's the cause of many defects, and it's hard to fix. Humans are fallible creatures. We always make mistakes, whether working on an assembly line or making a phone call. It's also easy to blame human error when something goes wrong, leading to problems.

If a company is focused on eliminating human error and not on making sure its processes are as efficient as possible, it may miss out on opportunities to improve its processes and reduce costs. If you're trying to figure out what problems Six Sigma solves, consider how it can help reduce human error in your organization.

5. Measurement Errors

Measurement errors are a huge problem in business, and they can be especially frustrating when you're trying to figure out how to improve your processes. You invest all this time and money into a new system, only to find out that it doesn't work because of some little thing that slipped your mind, and now you have to start all over again.

It's these kinds of measurement errors that Six Sigma aims to solve. Using statistical methods and tools like control charts, you can determine whether or not your data is valid and reliable enough for analysis. You'll also be able to identify potential problems with the process before they become big issues, so you can fix them before they cause any damage!

6. Customer Satisfaction Issues

Customer satisfaction is a big problem for companies. Even if a company offers good products at low costs, customers may still be unhappy with the experience they have with the company. It could be that the company has poor customer service or that its products are too expensive.

If customers aren't satisfied, they're likely to go elsewhere the next time they need to make a purchase. Six Sigma can help with customer satisfaction by improving your products' quality and your sales team's ability to serve customers quickly and efficiently.

The quality improvements will make your company seem more trustworthy, leading to more repeat business from happy customers who feel they're getting their money's worth when they buy from you. And because your sales team will be better able to deal with customers' needs on the phone or in person, it will feel less overwhelming and more enjoyable for everyone involved!

7. Cost of Poor Quality

The cost of poor quality is a problem that Six Sigma seeks to solve.

Poor quality in a business means that the company is producing products or services that are not up to its customers' standards, which can negatively affect its reputation. In addition, there's a high likelihood that those products and services will need to be repaired or replaced, which costs money.

Six Sigma helps businesses avoid this problem by analyzing their processes and procedures and then improving them to produce better results. This means fewer retries, easier customer service, and less waste overall. All of these factors add up to lower costs over time!

8. Waste (How Much Time/Money is Wasted Because of Errors)

Waste is the biggest problem that Six Sigma solves. When you think about it, the only reason we have errors in the first place is because of waste. It's not a mistake; it's an unplanned event caused by an error in our processes. And where there are errors, there's waste: time, money, and resources wasted on fixing them or trying to prevent them from happening again.

Six Sigma helps us identify where these errors are occurring so that we can make changes to our process to fix them and stop wasting so much time and money!

What Is the Importance of Six Sigma in Decision Making?

Six Sigma is an important part of making decisions because it helps you get rid of mistakes made by people.

Without Six Sigma, you can't be sure that your decisions are accurate. You might think that you're making the best decision for your company and its customers, but what if there's a way to improve it? What if there are ways to make it better? How do you know?

Six Sigma helps companies analyze their processes and determine how to make them more efficient, which means they can get better results faster. The idea behind Six Sigma is that there's always room for improvement. Even if something looks perfect on paper or screen, we should always strive to improve it.

The reason why Six Sigma is so vital in decision-making is that it helps us understand where our weaknesses are as well as our strengths. It also helps us find problems before they happen so we can stop them from happening again in the future!

What Is the Importance of Six Sigma in Business?

Six Sigma is essential to business because it helps companies improve the quality of their products and services. When a company's product or service is of high quality, it can charge more for that product or service. That makes customers happier, which leads to more repeat business from those customers. It also leads to word-of-mouth advertising as people share their experiences with friends and family.

Six Sigma ensures that businesses have high-quality products by helping them identify where there are problems in their production processes. For example, suppose a company manufactures metal parts and finds that 10% of those parts aren't machined correctly. In that case, Six Sigma will help them identify why that's happening and then find a solution. Once they've identified what went wrong, they can adjust the process so similar mistakes don't happen again!

Why Is Six Sigma Important in Business?

Six Sigma is a process that includes steps for quality improvement. It helps ensure that products and services meet customer needs.

Six Sigma is important for project management because it helps make products and services with fewer flaws. This means fewer mistakes are made, and customers are happier with the final results.

Six Sigma can be used by project managers to help their teams come up with new processes and procedures. They may also use it to improve existing processes and procedures. The goal is always to ensure that projects run smoothly and efficiently while meeting customer needs.

Why Is Six Sigma Important in Investing?

Six Sigma is vital in investing not only because it helps investors make better decisions but also because it helps them avoid making bad ones.

Six Sigma can help investors make better decisions by removing unnecessary variables from their analysis and focusing on the most relevant factors. It can also help them spot any potential problems or anomalies in their investment strategies.

Six Sigma is also important in investing because it helps people avoid making bad choices by helping them reduce risk, avoid making mistakes, and learn from what has happened in the past.

Why Is Six Sigma Important in the Workplace?

Six Sigma is a method for making processes in the workplace more efficient and effective. It is important at work because it helps cut costs, improve quality, and make customers happier.

One of the main reasons Six Sigma is essential in the workplace is that it helps reduce costs. By identifying and eliminating sources of waste and inefficiency, Six Sigma can help lower costs associated with materials, labor, and other resources. Six Sigma can also help improve the quality of products and services, which makes customers happier and more likely to buy from the company again.

Another reason Six Sigma is vital in the workplace is that it can improve employees' performance. Six Sigma training can help employees understand how to identify and solve problems and use data and statistics to make decisions. This can lead to increased productivity and improved job satisfaction.

What Are the Three Most Important Elements of the Six Sigma Process Improvement Method?

The Six Sigma process improvement system continuously improves processes by reducing defects and increasing efficiency. The system has three key elements: employee, customer, and process.

These three elements are all interconnected, and each one must be improved if you want your business to grow.

Employees are essential to any successful business because they are the ones who make sure that the company's products or services are produced efficiently and accurately. If you have happy employees who feel appreciated, they will do their best work for you, and your customers will enjoy it too!

Customers are also essential to the Six Sigma process improvement system because they can help you understand how well your business performs compared to its competitors.

Customers tell you what they like about your product or service and what they want to see changed so that their needs are met more effectively by your company's offerings. Listening to what your customers say about your business can help guide future improvements that will make those same customers happier with their experience doing business with you!

Processes are also critical because they dictate how things get done within a company. Without an effective process for producing goods or delivering services, there would be no way for employees to know how best to carry out their responsibilities. Processes also help avoid mistakes and make sure that tasks are done to the highest standards of quality.

What Are the Six Sigma Process Improvement Model Steps?

Define, Measure, Analyze, Improve, and Control (DMAIC) is the Six Sigma process improvement model. It is a five-step approach that can be used to solve any problem in any industry. It is comprised of the following steps:

1. Define: The first step in DMAIC is clearly defining the problem or opportunity you want to solve. By clearly defining your goal, you will be able to evaluate more effectively whether or not it has been successfully addressed at the end of the process.

2. Measure: Once you have defined your goal, it's time to measure how well you're doing against it. You need to identify your metrics, and the quantifiable results that will help you determine whether your solution solves anything.

3. Analyze: Now that you've measured what you're trying to improve and how well you're doing compared with where you want to be, it's time for analysis! This stage involves identifying root causes and determining which ones are within your control so they can be addressed as part of your solution strategy (and which ones aren't).

4. Improve: Now that we know what needs fixing, it's time to improve! In this stage, we'll identify potential solutions and test them before deciding on one final solution we can implement.

5. Control: Now that we have a solution, it's time to monitor how well it works. This stage involves looking at data from the system to see whether our solution is meeting expectations and making adjustments when necessary.

5 Six Sigma Process Methodology Example

Six Sigma Process Methodology Example 1

In a financial institution's loan processing department, there are a lot of mistakes, which causes delays and lost money.

Step 1: Define

Identify the problem: high error rates in loan processing cause delays and lost revenue.

Define the project objectives: reduce error rates by 50% and increase loan processing efficiency by 30% within the next six months.

Step 2: Measure

Collect data on current error rates and processing times for loan applications.

Analyze the data to identify areas for improvement and potential root causes of errors.

Step 3: Analyze

Use data analysis tools like Pareto charts and Fishbone diagrams to find the main causes of the high error rates.

Identify and prioritize the most significant causes of errors

Step 4: Improve

Implement process improvements to address the identified causes of errors, such as implementing automated checks for mistakes and providing additional training for staff

Test and validate the effectiveness of the improvements

Step 5: Control

Establish a monitoring and control system to ensure that the process improvements are sustained over time

Continuously measure and track error rates and processing times to ensure that project objectives are met.

The bank was able to cut the number of mistakes by 55% and speed up the loan processing by 35%. This improved customer satisfaction and brought in more money. In the control phase, a monitoring and control system was set up to make sure that the improvements would last.

Six Sigma Process Methodology Example 2

Problem: Long wait times for customers at a retail store's check-out counter

DMAIC Step 1: Define

Clearly define the problem by gathering data on average wait times and customer complaints.

Identify the key stakeholders involved (store management, customers, employees)

Establish project goals and objectives, such as reducing wait times by 50%

DMAIC Step 2: Measure

Collect data on the current process, including the number of customers, number of check-out counters, and employee duties

Analyze the data to determine the root cause of the problem (e.g., understaffing, lack of efficient processes)

DMAIC Step 3: Analyze

Identify potential solutions, such as hiring more staff, implementing self-checkout, or streamlining current processes.

Evaluate the pros and cons of each solution and determine the best course of action

DMAIC Step 4: Improve

Implement the chosen solution, such as hiring additional staff and training them on efficient check-out procedures

Monitor the process to ensure that the solution is working as intended

DMAIC Step 5: Control

Establish a system for ongoing monitoring and measurement of the check-out process

Implement a plan for maintaining the improved process and addressing any future issues that may arise

Result: The retail store reduced wait times for customers by 50%, resulting in improved customer satisfaction and fewer complaints. The shorter wait times also led to a rise in sales, which was good for the store's overall revenue.

Six Sigma Process Methodology Example 3

Problem: A manufacturing company has a high rate of defects in their product assembly line, resulting in customer complaints and returns.

Step 1: Define

Identify the problem: High rate of defects in product assembly, resulting in customer complaints and returns.

Define the goals and objectives: Cut the number of mistakes by half in three months and keep it at that level for six months.

Step 2: Measure

Use statistical tools like control charts to find out the current rate of mistakes.

Find important metrics like the number of mistakes per assembly, the percentage of mistakes, and the cost of mistakes.

Step 3: Analyze

Use Fishbone diagrams, Pareto charts, and process maps to figure out why the problems are happening.

Identify the main contributors to the defects and prioritize areas for improvement.

Step 4: Improve

Implement solutions to address the root causes of the defects.

Test and validate the solutions.

Step 5: Control

Monitor the process to ensure that the solutions are practical and sustainable.

Put controls in place to prevent the defects from reoccurring.

Result:

Reduced the number of defects by 50% within three months

Maintained a low level of defects for six months

Reduced customer complaints and returns

Improved customer satisfaction and reputation.

Reduced costs associated with defects.

Six Sigma Process Methodology Example 4

In the customer service department of a retail store, there is a lot of employee turnover, which raises training costs and makes customers less happy.

DMAIC Step 1: Define

The problem, according to the store, is that their customer service department has a high turnover rate, which raises training costs and makes customers less happy. They set specific goals for the project, like reducing employee turnover by 20% in the next six months and increasing customer satisfaction by 10%.

DMAIC Step 2: Measure

The retail company measures the current employee turnover rate and customer satisfaction ratings. They also gather data on the causes of employee turnover, such as job dissatisfaction, a lack of training and support, and poor management practices.

DMAIC Step 3: Analyze

The retail company analyzes the data collected in the measurement phase. They identify the root causes of employee turnover and customer dissatisfaction, such as a lack of adequate training and support for customer service representatives, poor management practices, and high stress levels.

DMAIC Step 4: Improve

Analysis The retail company makes changes to address the root causes identified during the analysis phase. They give customer service reps more training and help, improve management practices, and make sure stress-reduction programs are followed.

DMAIC Step 5: Control

The retail company sets up a monitoring and control system to make sure that the changes made in the Improve phase last. They regularly track employee turnover and customer satisfaction rates and make adjustments.

Result:

By using the Six Sigma process improvement method, the retail company can cut the number of people leaving their jobs by 20% and increase customer satisfaction by 10%. This significantly reduces training costs and increases customer satisfaction, improving the company's overall performance.

Six Sigma Process Methodology Example 5

Problem: A car company has a lot of scrap and rework in its production process, which is driving up costs and making the company less efficient.

DMAIC Step 1: Define

High amounts of waste and rework in the production process are what make up the problem.

The goal is to reduce scrap and rework to lower costs and increase efficiency.

DMAIC Step 2: Measure

Data is collected on the current levels of scrap and rework in the production process.

A baseline is established to track progress and measure success

DMAIC Step 3: Analyze

Through data analysis and process mapping, the real reason for the high amount of scrap and rework can be found.

It has been determined that the leading cause is a lack of proper training for employees on the production line.

DMAIC Step 4: Improve

To fix the problem, a training program is put in place for the people who work on the production line.

There are also more process improvements, like adding a quality control check at the end of the production line.

DMAIC Step 5: Control

The training program and process improvements are monitored and maintained to ensure continued success in reducing scrap and rework

Regular audits are conducted to ensure the process remains stable, and the problem does not reoccur

Result:

The amount of scrap and rework has gone down by a lot, which has helped the automotive company save money and work more efficiently. The company saved a significant amount of money and increased production efficiency.

The 7 Roles And Responsibilities Of Of Six Sigma

The seven roles and responsibilities of six sigma are the people who are involved in the training, implementation, and execution of the program. These include:

Executive
Champion
Master Black Belt
Black Belt
Green Belt
Yellow Belt
White Belt

1. Executive

Six Sigma executives are the highest-ranking leaders. Executives have the best training and know-how to make plans and focus the Six Sigma program on the culture and goals of an organization. Executives help a project succeed by managing the Six Sigma process and the methods and structure that go along with it.

2. Champion

The senior or middle executive Six Sigma champion works with executives. The champion must learn a company's vision, objectives, and KPIs to personalize the Six Sigma strategy to its goals. Champions also remove procedural obstacles. Employee reluctance to change and circumstances that delay the project's financial advantages may be obstacles.

3. Master Black Belt

Master Black Belts are Six Sigma specialists. Master black belts coach black belts. They use their advanced problem-solving, leadership, resource management, and project deployment skills to help Six Sigma professionals keep corporate projects on track. Master Black Belts may instruct and certify Six Sigma practitioners.

4. Black Belt

Certified Black Belts are full-time Six Sigma project leaders. They are trained in Six Sigma, DMAIC, DMADV, and lean enterprise. They know how to set up a statistical experiment and can confidently find mistakes that might not be found otherwise.

5. Green Belt

Green Belts help Black Belts and lead smaller initiatives as part-time professionals. They learn problem-solving and DMAIC project principles. They spend less time than Black Belts on smaller, concentrated Six Sigma initiatives. Their expertise in statistical experimental design is generally weaker than the Black Belts'. Thus, they may need help spotting process flaws.

6. Yellow Belt

Yellow Belt certification shows that a company can use Six Sigma's methods for measuring and improving production. They are essential members of the Six Sigma team. Yellow Belts are often subject matter specialists who manage minor improvement projects. Yellow belts indicate processes that require improvement using PDCA. Six Sigma's entry-level Yellow Belt routinely assists Green and Black Belts with projects.

7. White Belt

White Belts teach Six Sigma's fundamentals to beginners. White Belts can solve problems and help with local projects, but they may not be part of a Six Sigma team. The White Belt level provides a foundation for individuals considering continuing with Six Sigma.

Which Industries Use Six Sigma for Proces Improvement?

The industries that use Six Sigma for process improvement are:

1. Manufacturing: Manufacturing companies use Six Sigma to improve their processes, which can lead to increased efficiency, reduced costs, and improved customer service.

2. Healthcare: Healthcare providers use Six Sigma to improve patient outcomes by reducing errors, improving communication between departments, increasing efficiency, reducing costs, and making the hospital more attractive to patients.

3. Military: The military uses Six Sigma to improve its processes, from providing better healthcare for troops in war zones to improving its recruiting efforts at home (by offering more job opportunities).

4. Retail: Retail stores use Six Sigma to offer the best services possible. From product selection and display through delivery, they're getting as many customers through their doors as possible.

5. Government: Governments use Six Sigma because it helps them balance budgets while providing better services for citizens. It's an efficient way for governments to succeed economically while still ensuring they're doing everything they can to help their people.

6. Finance & Insurance: Banks, credit unions, insurance companies, and investment firms use Six Sigma methods to manage risk more effectively by reducing human error during financial transactions.

Frequently Asked Questions

What Is a Six Sigma Belt?

Six Sigma belts show how much a person knows and how responsible they are in a Six Sigma project. The belts include a white belt, a yellow belt, a green belt, a black belt, and a master belt.

How is Six Sigma different from Total Quality Management (TQM)?

Six Sigma and TQM aim to improve the quality of a process, but they use different methods to achieve this goal. Six Sigma is a method that is based on data and uses statistical tools and techniques. TQM, on the other hand, is a way of running a business that emphasizes employee participation and constant improvement.