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Forecasting Management Philosophy


Life Cycles: A Comparative Study
of Six Sigma and TQM
RICHARD J. GOEKE AND O. FELIX OFFODILE, KENT STATE UNIVERSITY
© 2005, ASQ

Six Sigma has been implemented at many organiza-


tions, and has reportedly generated billions of dollars INTRODUCTION
in cost savings. Despite claims that Six Sigma is not A relatively recent management philosophy, Six Sigma
another management fad, its basic tenets and history has drawn intense interest from the business commu-
thus far appear analogous to total quality manage-
nity. With a growing number of proponents reporting
ment (TQM), which was labeled by many as a man-
agement fad. By looking at the number of articles billions of dollars in savings, Six Sigma has become a
published by year, the degree of similarity between the strategic initiative for many firms (Dusharme 2001;
two management philosophies was measured using Harry and Schroeder 2000; Johnson and Swisher 2003;
the Kolmogorov Goodness-of-Fit test. This study found New Straits Times-Management Times 2003). Some
significant similarity between the distributions of TQM have noted, however, that Six Sigma bears a striking
and Six Sigma article counts, and gave impetus for
resemblance to total quality management (TQM). J. M.
the authors’ use of analogy forecasting to offer an
estimate of Six Sigma’s remaining life cycle. The Juran, one of the most respected quality experts of this
authors’ results show that Six Sigma has about seven century, claimed that “Six Sigma is essentially a new
years left in its life cycle. name for quality improvement” (Elliot 2003). Others
Key words: analogy forecasting, life cycles, Six Sigma,
are even more critical, dismissing Six Sigma as another
TQM management fad (Clifford 2001; Costanzo 2002;
Dangleish 2003; Dusharme 2001).
The implication that any management practice is a
fad often stirs up great emotion, because the term
“fad” is usually seen as negative. This negativity, how-
ever, is shortsighted, as management fads usually cre-
ate something positive within the adopting firm.
Indeed, management fads introduce change to the
organization (Fichman 2004), and, if effective, can
become part of good, mainstream management prac-
tice (Gibson and Tesone 2001). In addition, manage-
ment fads add to the firm’s knowledge and experience
base (also known as absorptive capacity), which
allows firms to learn more efficiently (Cohen and
Levinthal 1990). Heightened absorptive capacity eases
the transition to new fads, as fads often build upon the
knowledge gained from previous fads (Abrahamson
1996). Finally, early adopters of a fad are often consid-
ered more progressive than their later-adopting peers
(Carson et al. 1999; Gibson and Tesone 2001).

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Forecasting Management Philosophy Life Cycles: A Comparative Study of Six Sigma and TQM

Management fads, like consumer fads, exhibit a create forecasts in many different fields, including the
hump-shaped life cycle, where a period of great inter- adoption of DirectTV (Bass, Gordon, and Githens 2001),
est is followed by a period of declining interest. the replacement of oil rigs (Kaiser, Mesyanzhinov and
Indeed, management fads at some point lose their Pulsipher 2004), and the success of new retail stores
individual identities, as they either succeed (the fad (Mendes and Themido 2004). The authors intend to
becomes part of mainstream management practice), extend analogy forecasting to management philoso-
or they fail (the fad is dismissed as passé with little phies, and propose that a forecast for Six Sigma’s
lasting benefit) (Gibson and Tesone 2001). In either remaining life cycle can be based upon the life cycle of
case, the distribution of articles published on the fad TQM, if the two management philosophies are suffi-
has been shown to mirror the fad’s life cycle in terms ciently analogous.
of the amount of attention and notoriety the fad is The remainder of this article compares Six Sigma
receiving (Abrahamson 1996; Abrahamson and with TQM, and then reviews management fads and
Fairchild 1999). As noted earlier, actual use of the fad analogy forecasting. Hypotheses are then proposed,
may continue long after it has faded from the spot- with a discussion of results and significant findings.
light, especially when the fad succeeds and becomes The authors then offer implications for management,
part of mainstream management practice. However, and conclude with directions for future research.
the number of publications is one of the most quan-
tifiable and objective methods of displaying a fad’s
attention-generating power. Therefore, it is the fad’s LITERATURE REVIEW
individual identity, and not its actual use, that this
study seeks to explore. Determining where one is in Six Sigma Versus TQM
the fad’s life cycle, however, is difficult in real time. All The authors’ objective in this section is to summarize
of the management fad studies the authors found and compare the principal tenets of Six Sigma and
analyzed the fad only after its number of citations had TQM, as a complete analysis of both topics is not within
fallen from peak levels. the scope of this study.
Harry and Schroeder (2000) define Six Sigma as
“…a business process that enables companies to
The implication that any management practice
increase profits dramatically by streamlining opera-
is a fad often stirs up great emotion, because
tions, improving quality, and eliminating defects or
the term “fad” is usually seen as negative.
mistakes in everything a company does….” It can
This negativity, however, is shortsighted, as
help an organization reduce defects and improve
management fads usually create something
profitability using several basic tenets (Harry and
positive within the adopting firm. Indeed,
Schroeder 2000; Johnson and Swisher 2003; Pande,
management fads introduce change to the
Neuman, and Cavanagh 2000; Williams 2003), as
organization, and, if effective, can become part
shown in Table 1.
of good, mainstream management practice.
Table 1 lists the chief tenets of Six Sigma, and also
puts forth many of the major components of TQM.
This study seeks to go beyond prior work, by observ- Although Table 1 does not list all of the major facets of
ing the Six Sigma management philosophy in real TQM, indeed, a formal definition of TQM does not
time, and then offering a forecast for its remaining life exist (Kujala and Lillrank 2004), it does summarize
cycle. This can be done via analogy forecasting, which many of the prescriptions offered by quality experts
holds that the forecast for the adoption of a new tech- such as W. Edwards Deming, J. M. Juran, Kaoru
nology can be modeled upon an existing technology Ishikawa, Armand V. Feigenbaum, and Philip B.
when the two technologies are sufficiently analogous Crosby, and is consistent with the TQM review as put
(Martino 1983). Analogy forecasting has been used to forth by Douglas and Judge (2001).

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Forecasting Management Philosophy Life Cycles: A Comparative Study of Six Sigma and TQM

Table 1 Comparison of Six Sigma to TQM.


improvement the primary goal of each project. This
represents a significant departure from TQM, as the
Item Six Sigma TQM
authors have found nothing in the TQM literature
Customer focus √ √ requiring a certain level of profit improvement from
Process focus √ √
each project.
Despite the difference TQM and Six Sigma place on
Management by fact √ √ profit improvement, the two philosophies do have many
Collaboration √ √ common themes. Therefore, based on the literature
review, it appears that as a management philosophy,
Organizational learning √ √
Six Sigma is analogous to TQM.
Profitability focus √

“Better is cheaper”

Benchmarking



Management Philosophies as Fads
Carson et al. (1999) describes management fads as
© 2005, ASQ
“Hidden factory” √ √ “managerial interventions, which appear to be inno-
vative, rational, and functional and are aimed at
Quality in service economy √ √
encouraging better organizational performance.”
Abrahamson (1996) equated the term fad with fash-
Based on the previous comparison, it appears that ion, and defines management fashion as “a relatively
the basic tenets of the two management philosophies transitory collective belief, disseminated by manage-
have much in common. Auxiliary concepts men- ment fashion setters, that a management technique
tioned by Six Sigma, such as “better is cheaper,” leads rational management progress.” Due in part to
“benchmarking,” “hidden factory,” and improvement their temporary nature and limited lives, manage-
in a service economy (Harry and Schroeder 2000), ment fads often receive a lot of attention, prompting
have roots in the TQM philosophy as well (Crosby Gibson and Tesone (2001) to posit that fads have life
1979; Feigenbaum 1983; Ishikawa 1985; Juran 1951). cycles of their own, such that the “fad loses its specific
In addition, the impetuses and adoption rates of Six identity as an intervention strategy, which results in
Sigma and TQM appear similar. the decline of its notoriety.”
TQM rose in prominence during the 1970s and The “temporariness” of fads may have cultural
1980s, due in part to severe profit erosion caused by elements as well. Quality circles (QC) were considered
heightened foreign competition (Gehani 1993), which to be a fad in the United States, yet in Japan, QCs were
is a primary impetus for adopting Six Sigma today seen much differently (Gibson and Tesone 2001).
(Costanzo 2002; Harry and Schroeder 2000; New After World War II, Japan was eager to rid itself of the
Straits Times-Management Times 2003; Williams negative connotations associated with the label “Made
2003). Adoption rates for the two philosophies appear in Japan,” and embarked on a prolonged, compre-
similar as well. At the peak of its popularity, TQM was hensive program to improve quality and productivity.
implemented in 75 percent of U.S. and British firms In Japan, QCs were just one part of the quality
(The Economist 1992), whereas Six Sigma was recently improvement effort, as prescribed by Deming and
found to be implemented in 70 percent of surveyed other quality experts. When obstacles arose, Japanese
companies (Johnson and Swisher 2003). managers made the commitment to see them
Table 1 demonstrates a striking similarity between through, in part because they took a long-term view.
Six Sigma and TQM, with the chief difference being the In the United States, however, business saw QCs as the
importance of profitability improvement. While TQM embodiment of quality improvement, and when
implied that improved profits would result from obstacles arose, U.S. managers could not make the
improved product quality, Six Sigma makes profit same commitment, in part, because of the intense

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Forecasting Management Philosophy Life Cycles: A Comparative Study of Six Sigma and TQM

pressure for quick results. So in the United States, period, which emphasizes the main tenets of TQM and
quality improvement efforts have often been winked at is a coveted goal for thousands of organizations (Hart
as something temporary that will disappear when the and Bogan 1992; Gehani 1993).
next fad arises. Digestion (stage 3), which represents the climax of
The life cycle of a fad, however, does not necessar- the fad, likely occurred during 1992 to 1993. This
ily undermine its effectiveness. Fads can profoundly period saw many articles, especially in the business
change companies by introducing useful ideas, even press, that questioned the effectiveness of TQM
as the fad itself fades (Miller and Hartwick 2002). As (Fuchsberg 1992; Mathews and Katel 1992; Szwergold
organizations incorporate the fad, the adoption of new 1992; Jacob 1993; Greising 1994). The next stage, dis-
fads often improves and builds upon the preceding illusionment, occurred from 1993 to 1996, as several
fad(s) (Gibson and Tesone 2001; Taylor and Wright studies found widespread disappointment among firms
2003). Therefore, although fads may be temporary in and their TQM efforts (Choi and Behling 1997; Ernst
nature, they often leave long-standing, positive influ- and Young/American Quality Foundation 1992).
ences on the organization. Stage 5, hard core, occurred from 1996 through
today, with supporters who remain loyal to TQM, even

The Life Cycles of Management as it seemed to have slipped from prominence. Several
empirical studies from the late 1990s found evidence
Fads confirming the relationship between TQM and stock
In exploring the life cycles of management fads, price performance and/or operating earnings (NIST
Gibson and Tesone (2001) defined separate stages in 1996; Lemak and Reed 1997; Hendricks and Singhal
the fad’s life, and Abrahamson (1996) used the num- 1997). In addition, several studies using firm self-
ber of journal citations to establish the distribution of reported data found strong relationships between TQM
the fad’s life cycle. Using the framework proposed by and firm performance (Powell 1995; Agus and Sagir
Ettorre (1997), Gibson and Tesone (2001) observed 2001; Agus 2001; Agus and Abdullah 2000). Therefore,
five separate stages in a management fad’s life cycle: although citations in the literature may have tailed,
1) discovery, 2) wild acceptance, 3) digestion, 4) disil- this does not necessarily imply that use of the fad has
lusionment, and 5) hard core. In stage 1, the fad been discontinued. Rather, it implies that the fad has
begins by receiving some public attention, with a few been taken over by another one or assimilated into
articles appearing in the literature. During stage 2, mainstream management practice.
the fad becomes very popular, with many citations in The aforementioned review summarizes how
the literature and wide adoption in the business com- Gibson and Tesone (2001) applied their five stages of
munity. Stage 3, however, signals the fad’s climax, as the management fad life cycle to TQM. In addition,
articles appear that question the fad’s effectiveness. they analyzed four other management fads using the
Disillusionment sets in at stage 4, so that by stage 5, same life-cycle framework, with the results of TQM
only the hard-core supporters remain. and QC fads shown in Table 2. The table demonstrates
For TQM, Gibson and Tesone (2001) placed stage that fads can vary widely regarding the length of their
1, discovery, between 1950 and 1971, as this was the discovery and wild acceptance stages. Digestion and
period in which many of TQM’s founders were pre- disillusionment, however, appear much less variable,
senting their codified prescriptions to the business as for both fads, digestion lasted two years and disillu-
community. Wild acceptance (stage 2) likely occurred sionment lasted four to five years.
between 1971 and 1991, as several studies reported Separately, Abrahamson (1996) viewed manage-
wide use of TQM (Eskildson 1994; The Economist ment fads as fashions, and sought to determine how
1992). In addition, the U.S. government initiated the management fashion arose, who were the fashion set-
Malcolm Baldrige National Quality Award during this ters and followers, and whether management fashions

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Forecasting Management Philosophy Life Cycles: A Comparative Study of Six Sigma and TQM

Table 2 Life cycle stages of the TQM and Figure 1 Number of quality circle articles in
QC fads (Gibson and Tesone 2001). ABI-Inform, by year (Abrahamson 1996).
Stage TQM QC 50
Discovery 1950-1971 1977-1979 40

Number of Articles
Wild acceptance 1971-1991 1979-1981
30
Digestion 1992-1993 1981-1982
20

© 2005, ASQ
Disillusionment 1993-1996 1982-1986
10
Hard core 1996 and later 1986 and later

© 2005, ASQ
0
77 78 79 80 81 82 83 84 85 86
were beneficial to shareholders, employees, managers, Year
and other stakeholders. By counting and plotting the
number of articles covering QC by year in the ABI- based upon the known history of an existing technol-
Inform database, Abrahamson postulated the rise and ogy, if the two technologies have sufficient similarity
fall of the QC fad, as shown in Figure 1. As seen in the between them. The authors propose to extend analogy
figure, the number of articles covering QCs showed forecasting to predict the life cycles of management
little increase from 1977 to 1980. Between 1980 and fads, because Six Sigma appears to be analogous to
1982, the number of articles surged, reflecting the TQM. Specifically, a forecast of Six Sigma may be
popularity of QCs in business. However, after the peak possible by using TQM as a model.
in 1982, the number of articles decreased, reflecting To use TQM as the basis for creating a forecast for
the decline of QCs as a management fad. the remaining life cycle of Six Sigma, the authors will
It appears that the two studies, though using two compare the distributions of articles on TQM with that
separate methodologies, achieved similar results of articles on Six Sigma using the Business Source
regarding the QC management fad. The peak year for Premier database. If there is enough similarity
QC citations in the Abrahamson (1996) study is 1982, between the distributions using a goodness-of-fit test,
which is the same time frame that Gibson and Tesone then the remaining life cycle of Six Sigma can be
extrapolated from the distribution of TQM articles.
(2001) found as the climax (that is, stage 3 ending
Before this can be done, however, the authors must
and stage 4 beginning). Since the two studies agree
first establish that:
on the peak of the QC management fad, the authors
will seek to replicate the aforementioned agreement 1. Business Source Premier is an adequate substitute
for TQM. If Abrahamson (1996) and Gibson and for ABI-Inform.
Tesone (2001) are similar for TQM, and if TQM and 2. The distribution of TQM articles is similar to the
Six Sigma have similar article count distributions, TQM life-cycle stages as proposed by Gibson and
then by using analogy forecasting, a forecast for the Tesone (2001) in Table 2.
life cycle for Six Sigma may be offered based on the
Requirement 1 is necessary since the ABI-Inform
life cycle of TQM.
database is not available for this research, but
Business Source Premier is. Therefore, one must first
FORECASTING LIFE CYCLES validate that Business Source Premier is an adequate
substitute for ABI-Inform by replicating the
AND HYPOTHESES Abrahamson (1996) methodology for QC, using the
Analogy forecasting, as proposed by Martino (1983), former database. The distribution of QC from Business
can be used to predict the adoption of a new technology Source Premier can then be compared to that from

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Forecasting Management Philosophy Life Cycles: A Comparative Study of Six Sigma and TQM

ABI-Inform (Abrahamson 1996), and the degree of Figure 2 Number of quality circle articles in Business
similarity between the two can be assessed using a Source Premier and ABI-Inform, by year.
goodness-of-fit test. Therefore, hypothesis 1 is:
50
H1: Business Source Premier will serve as an adequate
40
substitute for ABI-Inform by validating that the distri-
bution of QC citations from Business Source Premier 30

Count
has significant similarity to that from ABI-Inform 20
(Abrahamson 1996). 10
The degree of similarity between two distributions 0

© 2005, ASQ
can be assessed using nonparametric statistics. Two 77 78 79 80 81 82 83 84 85 86
Year
tests, the Kolmogorov goodness-of-fit test (Kgf test)
Bus Src Prem ABI-Inform
and the Wilcoxan signed rank test (Wsr test) may
have applicability, depending on the nature of the distributions. In addition, the Wsr test may be
distributions represented by the plots (Conover 1980). employed, if its underlying assumptions can be met.
If the Kgf test and the Wsr test (if applicable) sup-
port hypothesis 1, then Business Source Premier can
be used as a substitute for ABI-Inform with regard to Hypothesis 1
the QC management fad. However, one then must To test hypothesis 1, the authors counted the number
validate that Business Source Premier accurately of QC articles in the Business Source Premier database
reflects the TQM life cycles as proposed by Gibson and for each year between 1977 and 1986. This was done
Tesone (2001) in Table 2. This will be accomplished by searching for the phrase “quality circle” in the
by repeating Abrahamson’s (1996) methodology for default fields of Business Source Premier, using both
TQM, then comparing the resulting distribution of peer-reviewed and nonpeer-reviewed articles. The
TQM articles to the life-cycle stages for TQM as pro- results of this study, along with the results from
posed by Gibson and Tesone (2001) in Table 2. Abrahamson (1996) in Figure 1, are combined in
Therefore, hypothesis 2 is: Figure 2.
H2: There is adequate agreement between the distri- To measure the degree of similarity between the
bution of TQM citations from Business Source Premier two distributions, the Kgf test was used. This test
and the TQM life-cycle stages proposed by Gibson and measures the degree of similarity between two distri-
Tesone (2001). butions, providing exact results and confidence lev-
els, even when the samples are small (Conover 1980).
If hypothesis 2 is supported, then one can apply
In addition, the Kgf test is the least restrictive in
Abrahamson’s (1996) methodology to Six Sigma
terms of assumptions, only requiring that the two dis-
using the Business Source Premier database. If the
tributions be random. The authors contend that the
distributions of Six Sigma and TQM are sufficiently
two distributions being compared — the first from
similar, then by using analogy forecasting (Martino
ABI-Inform and the other from Business Source
1983), a forecast for Six Sigma can be modeled on
Premier — are random distributions, in that the
the life cycle of TQM. Therefore, hypothesis 3 is:
number of articles published each year has no bearing
H3: The distributions of Six Sigma citations will be on the number of articles published in the next year.
significantly analogous to that of TQM from hypothesis To assess the degree of similarity between two
2, such that a forecast for the Six Sigma life cycle can distributions, the Kgf test employs the cumulative
be offered. relative frequency (crf) of each distribution, then
As in hypothesis 1, the Kgf test will be used to assess calculates a test statistic based on the largest vertical
the level of similarity between the TQM and Six Sigma distance between the two crfs. The two distributions

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Forecasting Management Philosophy Life Cycles: A Comparative Study of Six Sigma and TQM

Figure 3 Kolmogorov goodness-of-fit test values would be correct as well (Becker 1995). The
(ABI-Inform vs. Business Source Premier). medians for the ABI-Inform and Business Source
Premier distributions calculate at 18.5 and 15.5,
1.0000
Cumulative Relative Freq

respectively. However, the median for ABI-Inform


0.8000 could in fact be equal to the median of Business
0.6000 Source Premier, as 15.5 lies between the fifth and sixth
observations of ABI-Inform (that is, 12 and 25). The
0.4000
last assumption required by the Wsr test, that the two
0.2000
distributions be symmetric, is problematic, as the sym-
0.0000 metry of the two distributions is debatable. Therefore,

© 2005, ASQ
77 78 79 80 81 82 83 84 85 86
Year the Wsr test was calculated, but under the condition
Bus Src Prem ABI-Inform that one of its assumptions may not be supported.
The Wsr test measures the similarity between two
are considered similar at the given probability level distributions by determining both the vertical differ-
if the maximum vertical distance is not significant. In ence between two points and the direction (positive or
using the Kgf test, the null hypothesis assumes that negative) of that difference. The differences are
two distributions are equal. Therefore, the p-value ranked and totaled, and this summation is then
indicates the probability at which the two distribu- divided by the square root of the total squared ranks.
tions are equal, so a higher p-value is desired. The This calculation in effect creates a T-statistic, which
results of the Kgf test are summarized in Figure 3. can be tested for significance using t distribution
For the two distributions shown in Figure 3, the tables (hence the need for symmetric distributions).
largest distance separating their crfs occurs in 1982, Results for the Wsr show the sum of the signed rank
where the difference is .1967 (that is, test statistic is of differences by year, = 19.5, with the square
.1967). This test statistic, when compared with the root of the sum of squares = 16.86, and
Kolmogorov Two-Sided Test Statistic of 0.489 for a
sample of 10 (Conover 1980, Table A14), reveals that test statistic (T) = = 1.1566. Using
the two distributions are similar at a significance level a t distribution table, this indicates that the two
corresponding to α = .01 and .05, thereby supporting distributions (that is, ABI-Inform and Business
the authors’ hypothesis that Business Source Premier Source Premier) are similar at a significance level
is substitutable for ABI-Inform. corresponding to α = .01 and .05.
The Wsr test may have applicability as well, but Since the Kgf test and Wsr test both confirm similar-
several more assumptions must be met before it can ity between ABI-Inform and Business Source Premier at
be used (Conover 1980). Specifically, each distribu- a significance level corresponding to α = .01 and .05,
tion must be symmetric, be mutually independent, hypothesis 1 is supported. With hypothesis 1 supported,
have the same median, and have measurement scales Business Source Premier can be used as the basis for
that are at least interval. The authors contend that confirming the Gibson and Tesone (2001) fad life-cycle
two requirements—that the distributions are mutu- stages as applied to TQM.
ally independent and both have interval measurement
scales—are valid. Another assumption, that the two
distributions have the same median, has support as Hypotheses 2 and 3
well. When calculating the median for a distribution The methodology for hypothesis 2 was identical to
with an even number of observations, the halfway hypothesis 1, except that the key words “total quality
point between the two values that flank the median is management” were used in the search’s default fields.
typically used. However, any point between the two The resulting distribution is shown in Figure 4.

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Forecasting Management Philosophy Life Cycles: A Comparative Study of Six Sigma and TQM

Figure 4 Number of TQM articles in Business Figure 6 Number of TQM and Six Sigma articles
Source Premier, by year. in Business Source Premier, by year.

600 600
500 500
400 400

Count
Count

300 300

200 200

100 100

© 2005, ASQ
0 0

© 2005, ASQ
81 84 87 90 93 96 99 02 1 3 5 7 9 11 13 15 17 19 21
Year Year
Six Sigma TQM

Figure 5 Number of Six Sigma articles in


later (1993-1994). Since the peak for TQM was found
Business Source Premier, by year.
to be in the same time frame in both studies, the
200 authors contend that hypothesis 2 is supported.
For hypothesis 3, the methodology from hypothe-
150 ses 1 and 2 was repeated, but the phrase “Six Sigma”
was used to search in the default fields of Business
Count

100 Source Premier. The results of this search are shown


in Figure 5, which shows that the number of articles
50 covering Six Sigma remained flat until 1997, but has
increased steadily each year since then. This increase
© 2005, ASQ

0 indicates that Six Sigma is still in stage 2 (wild


91 92 93 94 95 96 97 98 99 00 01 02
Year acceptance) of the fad life cycle as proposed by Gibson
and Tesone (2001). It is not clear from Figure 5,
Figure 4 shows that the number of articles covering however, if Six Sigma has reached stage 3 (diges-
“total quality management” grew steadily until its tion), which marks the peak of the fad’s popularity.
peak in 1993-1994, and has seen a steady decline ever This may be the case, as several firms that have
since. The authors contend that these results display implemented Six Sigma are now experiencing finan-
adequate similarity to those proposed by Gibson and cial difficulty (Philips and Kampmeier 2002). In
Tesone (2001) in Table 2, as both studies found the addition, a number of recent articles openly question
peak for TQM to be within one year of each other. the effectiveness of Six Sigma (Clifford 2001;
The authors previously found that Abrahamson Costanzo 2002; Dangleish 2003).
(1996) and Gibson and Tesone (2001) achieved simi- These events by themselves, however, are not suffi-
lar results for the QC management fad, because both cient to declare that Six Sigma is in stage 3 (digestion)
identified the fad’s peak to be in the same time frame. and therefore has reached its peak as a management
In hypothesis 2, the Abrahamson (1996) methodolo- fad. To better gauge how close Six Sigma is to stage 3,
gy repeated for TQM and the Gibson and Tesone this study extends analogy forecasting to manage-
(2001) life-cycle stages for TQM show similarity as ment philosophies, by predicting the life cycle of Six
well. Gibson and Tesone (2001) posited that TQM Sigma based on the life cycle of TQM. Therefore, the
grew in popularity until its peak in 1992-1993, results of Figures 4 and 5 are combined, and shown
whereas this study found the peak to be just one year as Figure 6.

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Forecasting Management Philosophy Life Cycles: A Comparative Study of Six Sigma and TQM

Figure 7 Kolmogorov goodness-of-fit test of stage 4, forecasted to occur in about seven years,
(Six Sigma vs. TQM). only the hard-core supporters of Six Sigma (stage 5)
will remain.
1
Cumulative Relative Freq

0.8

0.6
MANAGERIAL IMPLICATIONS
0.4
OF THE STUDY
Management fads, like consumer fads, generate sub-
0.2
stantial interest in a short period, and then seem to
0 disappear. For this reason, many managers view fads
1 2 3 4 5 6 7 8 9 10 11 12

© 2005, ASQ
Year as something to be tolerated, or even worse, ignored.
Six Sigma TQM This line of reasoning, however, is flawed and short-
sighted, as management fads can and do change the
Figure 6 demonstrates that, at least for the first 12 organization for the better. Management fads can
years of both philosophies, the life cycles of Six Sigma help the organization by becoming a mainstream
and TQM appear to be similar. As in hypothesis 1, the best practice, adding to the firm’s absorptive capacity
Kgf test was employed to assess the degree of similarity and helping the company’s image.
between the two distributions. In order to calculate the Management fads, when successful, disappear from
Kgf test statistic, the distributions shown in Figure 6 view because they have become part of good, main-
were converted to cumulative relative frequencies (crf), stream management practice. Two examples include
and shown in Figure 7. management by objective (MBO) and QCs (Gibson and
The largest vertical distance separating the two Tesone 2001). Prior to MBO, goals were set at the top
crfs was calculated to be .1436, which occurs in year and then forced down through the organization. MBO
ten. This indicates that the two plots in Figure 7 (that represented a radical departure from previous practices,
is, Six Sigma and TQM) are similar at a significance and though it gets little attention today, MBO has been
level corresponding to α = .01 and .05, as .1436 is incorporated into today’s corporate best practices.
less than the Komogorov Two-Sided Test Statistic for Similarly, QCs may have been a fad, but live on in
a sample of twelve (.449 and .375, respectively) today’s self-managed work teams, which are hallmarks
(Conover 1980, Table A14). The second test, the Wsr of the most progressive companies.
test, could not be administered, as the plots for Even when management fads don’t work out as
the first twelve years are clearly not symmetric. planned, they still benefit the organization by adding
Nonetheless, based on the results of the Kgf test, the to the firm’s collective knowledge. This collective
distributions of Six Sigma and TQM are significantly knowledge allows firms to learn new ideas and methods
similar, and hypothesis 3 is supported. Therefore, more efficiently in the future. Indeed, fads often build
because of the similarity between Six Sigma and upon prior fads, and the investment in prior learning
TQM, analogy forecasting can be used to propose a pays off by lowering the learning curve to the next fad.
forecast for the remainder of Six Sigma’s life cycle. In addition, firms are viewed as more progressive when
Using analogy forecasting and prior fad life cycles they have adopted a progressive management, espe-
as proposed by Gibson and Tesone (2001), the authors cially when it is early in its life cycle.
forecast that Six Sigma will likely reach its peak as a The results of this study will help managers
management fad in two years. This peak (stage 3) understand where Six Sigma is in its life cycle.
will be immediately followed by stage 4 (disillusion- Regardless of the stage a company is in the Six Sigma
ment), and based on Gibson and Tesone (2001), will implementation strategy, the results of the study
last approximately four to five years. At the conclusion could have far-reaching implications in several ways.

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Forecasting Management Philosophy Life Cycles: A Comparative Study of Six Sigma and TQM

First, for firms that have not yet adopted Six Sigma, and Wright 2003; Yong and Wilkinson 2002), and the
the authors’ results may provide some advantage for effort required to initiate TQM was very different from
them, especially with regard to training costs. Indeed, the effort required to maintain TQM (Bullington et
one of the hallmarks of Six Sigma is the “belt” train- al. 2002). If necessary, Six Sigma consultants are still
ing program, which can be very expensive (Dusharme widely available to help, since it is still in the wild
2001; Friedman and Gitlow 2002). One reason that acceptance stage. Once Six Sigma moves too far
costs may be so high is simple economics—demand beyond its peak, however, consultants will be much
exceeds supply, because Six Sigma is still in the wild more difficult to find. As evidence, the number of TQM
acceptance stage. However, if the fad peaks in two years consultants available today is dwarfed by the number
as predicted, then demand will likely diminish for of Six Sigma consultants.
training, which should result in lower training costs In closing, it is difficult to imagine any organiza-
for the client company. tion that has not incorporated some aspect of TQM into
its mainstream management practices, whether or not
it considered TQM to be a management fad. Even
Even when management fads don’t work out
though Six Sigma appears analogous to TQM, it most
as planned, they still benefit the organization
certainly has something to offer the adopting firm.
by adding to the firm’s collective knowledge.
Therefore, all firms, whether they’ve adopted Six Sigma
This collective knowledge allows firms to
or not, would be wise to assess what Six Sigma has to
learn new ideas and methods more
offer, and then be aware that the next management
efficiently in the future.
philosophy may be just around the corner.

If the nonadopting firm has previously imple-


mented TQM, then it may be prudent to determine CONCLUSION
what benefit is expected from Six Sigma, since this The findings of this research may be significant on
study found substantial similarity between the two. several fronts. First, these findings confirm the
Conversely, if the organization has not previously methodology by Abrahamson (1996) in measuring
implemented TQM, then managers may need to the life cycle of QC. This study found a high degree
assess their ability to leapfrog to Six Sigma without of similarity between Business Source Premier and
first investing in TQM. ABI-Inform as sources of data with regard to the
Second, for firms that have already adopted Six number of articles published by year. Second, this
Sigma, these results indicate that something new will study largely confirms Gibson and Tesone (2001)
be arriving soon. Indeed, Abrahamson and Fairchild regarding the TQM life cycle, as the peak years in
(1999) have aptly demonstrated how the decline of one both studies were nearly identical. Third, this study
fad precipitates the rise of the next. For example, the found a high degree of similarity between the life
decline of QCs coincided with the rise of TQM. cycles of TQM and Six Sigma, as they exist thus far.
Therefore, firms with Six Sigma knowledge and experi- Finally, using analogy forecasting, a forecast for the
ences will be better able to “catch the next wave.” remaining life cycle of Six Sigma can be offered, based
However, adopting managers may need to assess on the similarity of its main tenets and its current life
their current Six Sigma program. If Six Sigma is not cycle to TQM.
delivering results as expected, then managers may be This study does, however, have several limitations,
able to look to prior programs (that is, TQM) for which should be noted. First, the creation of any fore-
guidance. For example, successful TQM implementa- cast is necessarily fraught with risk, as the authors
tions were highly dependent on senior management are seeking to predict an unknown future. Analogy
support (Bandyopadhyay and Sprague 2003; Taylor forecasting allows one to create a forecast for one

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Forecasting Management Philosophy Life Cycles: A Comparative Study of Six Sigma and TQM

phenomenon if it is sufficiently analogous to another. only in the their main tenets, but in how closely their
While this study found significant similarity between life cycles track each other. This study found significant
Six Sigma and TQM, there is no guarantee that their similarity between the distributions of articles on each
futures will be identical simply because their pasts philosophy, and offered a forecast for the life cycle of
are similar. Six Sigma. Based on the results of this study, it appears
It deserves repeating that even though a manage- that Six Sigma is in the latter years of stage 2 (wild
ment philosophy may be considered a fad, this does acceptance) and will likely reach its peak in popularity
not diminish its usefulness to the organization. For (stage 3) within two years. Following this peak, Six
example, even though TQM may be a management Sigma will then experience disillusionment (stage 4)
fad that is well past its peak, there still is a substantial for four to five years, such that in seven years, only
amount of interest in the subject. In 2002, more than the hard-core supporters (stage 5) will actively pursue
200 articles were written on the subject of TQM, 10 Six Sigma.
years after its peak. This indicates that long after its
peak, a management fad may still have significant ACKNOWLEDGMENT
impact on an organization. Therefore, even if Six The authors would like to thank Dr. Michael Hu, whose guidance
Sigma is nearing stage 3, it will likely deliver positive with the statistical analysis is much appreciated.
benefits long after its popularity has peaked with the
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Forecasting Management Philosophy Life Cycles: A Comparative Study of Six Sigma and TQM

New Straits Times-Management Times. 2003. Six Sigma: The new BIOGRAPHIES
corporate buzzword. (March 5).
Richard J. Goeke is a teaching fellow in the College of Business
Pande, P. S, R. P. Neuman, and R. R. Cavanagh. 2000. The Six
Administration at Kent State University in Kent, Ohio. His teaching
Sigma way: How GE, Motorola and other top companies are
and research interests focus on issues germane to large corpora-
honing their performance. New York: McGraw-Hill.
tions, including quality management, R&D management, informa-
Philips, E. J., and C. Kampmeier. 2002. Book Review: Six Sigma: tion systems, and human resources. Previously, Goeke worked 17
The breakthrough management strategy revolutionizing the years in industry, where he was a member of numerous quality
world’s top corporations. Consulting to Management — C2M 13, improvement teams in retail, accounting, and information systems.
no. 4: 57-59. He can be reached by e-mail at rgoeke@kent.edu.
Powell, T. C. 1995. Total quality management as competitive
O. Felix Offodile is a professor in the Management & Information
advantage: A review and empirical study. Strategic Management
Systems Department at Kent State University in Kent, Ohio. He
Journal (January): 15-37.
received his doctorate in industrial engineering from Texas Tech
Szwergold, J. 1992. Why most quality efforts fail. Management University, and has taught graduate and undergraduate courses
Review (August): 5. on a wide range of manufacturing and quality topics, including
Taylor, W. A., and G. H. Wright. 2003. A longitudinal study of quality and cost control. Offodile has been a process and quality
TQM implementation: Factors influencing success and failure. consultant to industry, and his research interests continue to focus
Omega (April): 141-154. on issues related to manufacturing and quality management. His
research has been published in such journals as Technometrics,
Williams, T. 2003. Six Sigma is legit. Quality (March): 6.
IIE Transactions, International Journal of Production Research,
Yong, J., and A. Wilkinson. 2002. The long and winding road: Journal of Manufacturing Systems, Omega, and International
The evolution of quality management. Total Quality Management Journal of Management Science. He can be reached by e-mail
(January): 101-121. at foffodil@bsa3.kent.edu.

46 QMJ VOL. 12, NO. 2/© 2005, ASQ

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