BBA II Sem HRD Unit 3 Part 2

Quality Circles
Quality circle is defined as a group of workers, who work voluntarily to improve and develop products in
an organization related to the production process, material wastage, quality of finished, semi-finished
goods and raw materials, energy consumption, maintenance, safety, and delay. The definition includes:
• Quality Circle is a voluntary group of 4 to 6 members.
• Members are usually from one section or department.
• One senior member acts as a facilitator
• Identify a problem in the work area, meet and discuss the problem regularly, ideally once a week.
• Identify and implement solutions in a standardized methodology.
It also solves problems related to any of them. Other names like often address the quality circle
• Productivity Circles • H R Circles • Excellence Circles • Action Circles • Small Groups

History of Quality Circle

Dr. Kaoru Ishikawa (1915-89) known as “Father of Quality Circle” for his role in starting Quality Control
Circles(QCC) in Japan in the 1960s to improve Quality, Productivity, and the work environment.

Features of quality circle

1. It is a voluntary group. People are invited to join the circle but not compelled or forced.
2. The size varies from 6-12 members, although everyone belongs to a specific work area. Sometimes
they consult specialists from other areas to gain his perspective and find appropriate solutions.
3. The meetings are held at periodic intervals to discuss and contemplate about the related issues..
4. An organization may have several quality circles depending upon its requirement.
5. Every quality circle has its point of reference and problems and is restricted to its specific product
or service. They do not interfere in the working of other quality circles.
6. It is adept at solving issues and offering an apt solution. The quality circle collects data, identify
and analyze, and lastly come to a solution after several discussions amongst the members. The final
idea is presented to the management by the group and not the leader alone.
7. The quality circle, as the name suggests, identifies analyses, and solves related problems. The
members arrange the meeting as per the demand and requirement.

Objectives of quality circle

1. Identify and analyze problems
2. Work towards the development
improvement of the organization
3. Utilize and enhance human resources
4. Improve the quality of products
5. Reduce costs and enhance productivity
6. Solve problems specific to a product or
service
7. Improve conflict and inter-personal
resolution
8. Utilize innovative and imaginative skills of an
and individual
9. Developing work interest
10. Job involvement
11. Enhance problem-solving abilities
12. Improve communication
13. Promote leadership skills
14. Promote personal development
15. Reduce errors
16. Promote cost reduction 17. Participation in the management process
Structure of quality circle
1. Steering committee: It is headed by the senior executive and has representatives from human
resources development and top-level personnel. The steering committee is the one that drafts and
establishes various plans and policies in place and directs the program towards the right path.
2. Coordinator: The coordinator is generally the administrative officer who supervises the work and
administer the program
3. Facilitator: He is the supervising officer who coordinates the working of numerous quality circles
via the circle leaders
4. Circle leaders: He organizes the activities, gives direction to the members and conducts the
activities of quality leaders

Duties of quality circle leader

• Guiding the members in the right direction
• Taking members in his confidence and sharing all the issues in an open communication
• Show confidence in own endeavors as well as the working of all the other members.
• Channelizing the discussions
• Allow all the members equal opportunities
• Assigning particular tasks to all the members
• Coordination with facilitator

Advantages of quality circle

• A quality circle generates creative ideas that result in an innovative solution
• It increases the productivity, production, and quality of products and services in an organization
• A quality circle is a group that works voluntarily. Its harmonious tendency is carried back to the
organization
• Increases customer satisfaction by working to improve the quality of products and services
• Works towards reducing the production cost
• It tries to identify and solve problems in an effective manner
• Quality circle offers motivation to other employees to work for the betterment of the organization
and infuses team spirit
• Improves the image of employees as they are doing good work voluntarily for the betterment of the
organization.
• Improves the ability of the members in making viable decisions
• Quality circle helps to improve communication in the organization
• It improves leadership skills and encourages problem-solving ability.
• Builds inner confidence and trust
• Enhances corporate pride because of the sense of belonging
 • Works towards a better relationship between managers and employees.
Disadvantages of quality circle
1. Operational problems in the organization can cause delays and fail the process of quality circle
2. Lack of participation can cause the failure of a quality circle
3. If the members are not suited and qualified for the post, it can result in wrong decisions
4. It is important to keep a positive approach, but if any member is unable to maintain his equilibrium
in case of adverse conditions then the quality circle will fail in its intentions
5. As it is a voluntary group, a member can opt-out of it anytime
6. In case the group has a strong-willed member he may try to roughshod over others
7. Sometimes it may be involved in useless issues thus wasting time, energy and effort of the members
8. It grabs the limelight and is often ignored by other people having no time to join such circles
9. It can cause issues with departmental managers as they do not like to see the quality circle gaining
prominence and recognition
10. The fluctuating demand for work can cause a problem in finding a convenient time for the meeting

Developing a quality circle

1. Starting phase: It is important to make people in your organization aware of the concept of the
quality circle. Everyone should have a basic knowledge about its implication and impact on the
members as well as the company.
Participation is voluntary and people itself start understanding its concept and will show their
enthusiasm in joining it. The company can play its part by offering required training to the interested
person to hone and develop their participation skills.
2. Constitution of Quality circle: Quantity circle members belong to the same work area, and their
participation is voluntary. The constitution includes steering committee, coordinators, facilitators, circle
leaders, and circle members who work for the ultimate benefit of the company.
3. Initial problem-solving: Problem-solving includes data collection via records, self-suggestions, and
contacting employees. It includes data analysis that establishes the reason for the issue. Problem-solving
involves the participation of members regularly to put forward their suggestions and viable inputs.
4. Presentation and approval: The members as a whole present the solution to the management either
orally or as a project report/assignment. The presentation improves communication between the workers
and the management so that later on, they can work in tandem.
5. Implementation: The final phase in developing a quality circle is the implementation. The relevant
groups are assigned with vital activities depending upon the suggestions to form a viable quality circle.

Techniques used in a quality circle

1. Brainstorming: This helps to stimulate the idea for decision making and stimulating creativity.
2. Cause and effect diagrams: Members identify the cause of the problem and its effect on the problem
3. Sampling and charting method: Members observe the events and charts the observations to get a clear
idea of the problem.
Quality Circle Training
Quality Circle members use Seven Basic Quality tools to understand the causes and propose solutions for
quality improvement. As a minimum all Quality Circle members should be trained in the Seven Basic
Quality Tools. In addition, some members can be trained in Statistical Quality Control and other advanced
techniques.
 Tool #1: Cause and Effect Diagram
 Tool #2: Check Sheet
 Tool #3: Pareto Chart
 Tool #4: Scatter Plot
 Tool #5: Histogram
 Tool #6: Control Chart (and Run Chart)
 Tool #7a: Flow Chart (and Stratification)

Quality Circles in India

Quality Circle concept was first introduced by BHEL, Hyderabad in the year 1981 in India
In 1982 Quality Circle Forum of India (QCFI) was founded.
A few from other parts of the country also got interested in this concept. JK Jute Mills Ltd., initiated
workers participation in management in 1977.
National Productivity Council also got interested in the concept of Quality Circle and got associated with
this movement. Thus Quality Circle movement started spreading in India in a small way.
So, starting from the manufacturing areas, the concept soon spread to other service departments such as
Personnel, Purchase. Hospital, Administration. Engineering, Technology. Training Centres. Works
Canteen, etc. Similarly, at the National level. Quality Circles gradually spread to Chemical Pharmaceutical
and Processing Plants as well as to traditional Jute and Textile Industries. Typical examples are BASF,
Hindustan Antibiotics. Durgapur Steel Plant. J.K. Jute Mills, National Textile Corporation. Shri Ram
Fibres. Flakt. Crompton Greaves etc., both in the Public and Private Sectors.

The State Bank of Hyderabad and the Indian Institute of Management, Calcutta are a couple of examples of
non-manufacturing institutions where quality of service is crucial, and which have Quality Circles.
An enthusiastic lady Circle Leader of the Sussen Textile Bearings, Baroda has successfully implemented
the concept Some enthusiasts have initiated Quality Circles in Gujarat State near Anand and within a short
time, the “Rural Quality Circle” has been able to resolve problems which had been defying solution for a
long time.
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