By using conventional tools and techniques in a number of projects it is possible to establish an effective system of quality management and quality improvement. The more efficient the system, the easier it is to identify common points of error and eliminate the consequences of such errors. With a differentiated approach to quality management, and taking targeted corrective and proactive actions in the identified points in the manufacturing process in which errors are generated, certain improvement is achieved. The duration and degree of such improvement depends on numerous factors within the system as well as environmental ones. Location and intensity of common points of error is a variable that may not be affected by the measures that are taken due to a number of known or unknown reasons. Once achieved excellence in various manufacturing processes and operations cannot easily be maintained at the same level. Resources that are used and efforts that are continually made in order to improve quality management do not always give expected results, or if they show good results in one project, they will hardly show the same results in another. Therefore it seems reasonable (more efficient and more effective) to take more radical measures of reengineering the production process and employing some of the modern methods of quality management. As reject is a serious problem and it presents a considerable economic loss, complete reject reduction should be the highest priority in the selection of the new method to be used. The Six Sigma method meets such demands. Furthermore, it is necessary to change completely the common perception of quality and quality management methods. Therefore Lean is a philosophy and a method that is adequate for shipbuilding industry. The combination of these two methods is recognized in the industry and Lean Six Sigma is considered the optimal method which, together with reengineering (restructuring), should give the expected results. The issue of cost and profitability of investing in new quality management methods is always a problem in econometric studies. They are only mentioned in this paper to highlight the importance of quality in maintaining product competitiveness and its survival in the market.