There are three ways in which Hajj can be performed. They are: IFRAD, QIRAN, TAMATTU'.
IFRAD: This form of Hajj consists of entering the state of ihram for only Hajj. In Ifrad, Hajj is performed without Umrah.
QIRAN: This form of Hajj consists of both Umrah and Hajj. A single ihram is adopted for both Umrah and Hajj. Both are rendered together.
TAMATTU': This form of Hajj also consists of Umrah and Hajj. However, two different ihrams are adopted-one for Umrah and one for Hajj. Umrah is performed first--- the whole Umrah or the greater part of the tawaaf of Umrah during the Hajj period. After this the ihram is removed if the performer of Hajj did not bring along hadi (sacrificial animal) and then again entering the state of ihram for Hajj.
If the performer of Hajj has brought along hadi, then ihram will not be removed after having performed the Umrah.
The Umrah and Hajj of the Tamattu' kind are performed in a single journey, i.e. after the Umrah of Tamattu' the Hajji will -not return home, but will wait until after Hajj has been executed.
According to the Hanafi Math-hab, Qiran is the best form of Hajj followed by Tamattu' then by Ifrad.