Six-Sigma Quality Improvement Approach to Continuous Loop Management

Abstract

Six Sigma is a quality management method for identifying and eliminating defects and helping companies improve current processes, products, or services. The aim is to streamline the quality control of manufacturing and business processes so that there are no major differences throughout the operation. This paper describes a management model that emerges by overlaying Nonaka's knowledge creation theory over decision-making and value creation processes borrowed from six-sigma quality improvement practices. The resulting Continuous Loop Model (CLM) illustrates how these Japanese and Western concepts and practices work together in harmony to increase the rate of knowledge creation through continuous feedback loops making the firm more agile, adaptable, innovative, and valuable. The results of this study provide empirical data suggesting that firms that successfully cultivate cultures that are strong in fairness, credibility, respect (collectively trust), pride, and camaraderie significantly outperform comparable firms in several key areas; value, operating effectiveness, and growth.