Enhancing Productivity through People

Involvement

-- A Quality Circle Approach at VSP – RINL

Author
Aloke Kumar Dutta
Guide
Dr. D Prabhakar Rao
 Enhancing Productivity through People Involvement
Quality Circle -- Genesis
Japan, consequent upon total devastation in
Second World War, had requested American
experts to help them put their shattered
economic and industrial scenario back to rails.
The then newly formed Union of Japanese
Scientists and Engineers was familiar with Dr.
W.Edward Deming's work and invited him to
Japan in 1950 to advise the Allied occupation
government. Accepting JUSE's invitation, Deming
addressed Japanese industry's top 50 executives
expaining the importance and need of Statistical
Quality Control and Quality Management in
different organizations of Japan.Deming's ideas
became very influential in Japan, and in 1951,
JUSE established the annual corporate and
individual Deming awards for achievements in
quality improvement. A 1954 lecture series in
Japan by American quality control expert Dr. J.M.
Juran emphasized the participation of
Management in implementation of Quality
control and gave further impetus to the
development of quality control circles.
Japanese studied the lecturer’s recommendations
and put them into practice on a large scale with
an important modification of making even gross
root level employees responsible for Quality
instead of keeping it in the domain of Quality
Control specialists only by involving workers to
identify, analyze and solve their work related
problems using their talent and creativity.
With this intention, Dr Ishikawa, the father of
Quality Circle(QC), started the first Quality Control
Circle in Japan in 1962.At Toyota QC started in
1969 and had 760 circles by 1976 involving 4000
employees. Almost all of them were blue collar.
The company won Deming Prize in 1970.
Subsequently QC movement gained momentum
and become a part of work life in all the
organizations of Japan.
-- A Quality Circle Approach at VSP - RINL
Around one crore employees took part in this QC
movement and the concept got extended to
service sectors like Hospitals, Banks, Schools etc.
At present around 40 countries of the world are
following this concept in different organizations.
QC- Definition & Objectives
Definition
A Quality Circle typically is a small group of
volunteers consisting of first-line employees who
meet regularly to identify, analyze and solve
problems in their area of work to continually
improve the quality, productivity and related
issues of their work, products and services.
These Small groups:-
Operate autonomously, Utilize quality control
Concepts and Techniques and other Improvement
tools, Tap members’ creativity and promote self
and mutual development.
The Size of the QC group should be 7(max.)
including facilitator (No. of executives in the QC
group should not exceed 2 including facilitator). It
can be more than two, for the departments
where executive strength is considerably more.
Objectives:-
•
To provide a forum for active participation
and involvement of employees in bringing
•
continuous improvement.
To recognize the efforts and positive
contribution of member involved in bringing
•
improvements in the quality of their work life.
To encourage and motivate the employees to
participate in Teams towards achieving the
•
organizational excellence.
To develop employees capabilities to solve
the work related problems through collection
and analysis of data and make the work place
more pleasant.
QCs in America circles among its Buick, Oldsmobile, Cadillac,
Chevrolet, and Fisher Body divisions.
The interest of U.S. manufacturers in Quality
Circles was sparked by the dramatic QCs in India
improvements in the quality and economic For the first time in India, Dr.S.R. Udpa, the then
competitiveness of Japanese goods in the post- GM of M/s BHEL started QCs in M/s BHEL in 1980
World War II years. In their volume Japanese in Hyderabad unit with a view to empower and
Quality Circles and Productivity, Ross and Ross involve working level employees in solving their
defined a quality circle as follows: "A quality circle work related problems.
is a small group of employees doing similar or
related work who meet regularly to identify, Quality Circle Forum of India (QCFI)
analyze, and solve product-quality and production In order to propagate the QC concept to the rest
problems and to improve general operations. The of the Country, Dr. S.R. Udpa founded a non-
circle is a relatively autonomous unit (ideally profit body called Quality Circle Forum of India
about ten workers), usually led by a supervisor or (QCFI) in 1982 at Hyderabad. Subsequently
a senior worker and organized as a work unit." chapters were started in different regions to
Active U.S. interest in Japanese quality control spread and co-ordinate the QC activity in India.
began in the early 1970s, when U.S. aerospace
manufacturer Lockheed organized a tour of
QCs in Visakhapatnam Steel Plant
Japanese industrial plants. This trip marked a (VSP) of RINL
turning point in the previously established Visakhapatnam Steel Plant started QC movement
pattern, in which Japanese managers had made way back on 1990 immediately after
educational tours of industrial plants in the commissioning of First coke oven battery to
United States. Lockheed's visit resulted in the encourage employees' Participation for improving
gradual establishment of quality circles in its work life.
factories beginning in 1974. Within two years,
Lockheed estimated that its 15 quality circles had Organisation Structure of QC Activities
saved nearly $3 million, with a ratio of savings to in VSP
cost of six to one.
In VSP a well-defined structure allow employees
As Lockheed's successes became known, other to participate in QC activities. This structure is no
firms in the aerospace industry began adopting way connected with the Company's organization
quality circles, including Hughes Aircraft, structure.
Northrop, Sperry Vickers, Martin Marietta, and In VSP Quality Circles Structure is as follows:
Westinghouse.
Thereafter quality
circles spread rapidly
throughout the U.S.
economy; by 1980,
over one-half of firms
in the Fortune 500 had
implemented or were
planning on
implementing quality
circles. By the early
1980s, General Motors
Corp. had established
about 100 quality
TM - Top Management consisting of GM and
above taking strategic decisions for QC movement
of the organization.
SC - Steering Committee consisting of HODs laying
broad policies for functioning, periodical progress
review and suitable recognition of QCs.
Facilitator – Nominated by HOD and responsible
for development of skills of the members. He
should encourage the QC activities of his area
while serving as a resource person of the circles.
Leader – selected by the members of the group
for a particular project. He leads the team with
following activities:
1. Clarification doubts of members
2. Conducting QC meetings regularly
3. Maintain records of circle activities and
4. Preparation of reports and presentations.
Member
Employees belonging to the same work area
become members of the QC group.
Member should attend QC meetings regularly to
contribute to the success of the group through
individual experience, knowledge and QC problem
solving tools / techniques.
Non-Member
Employees who extend necessary help to the QC
group shall become non-numbers. Non-members
are not part of the group. Non-members can be
co-opted by the QC group as per the requirement.
Coordinating Agency:
•
•
Co-ordinates QC movement
Conducts training programmes on QC
•
techniques
•
Assist in report generation and presentation
•
Organizes functions for recognition of QC
Project the QC movement in VSP
QC Presentation
Quality Circle Forum of India evolved norms for a
uniform evaluation of the QC case study
presentation. By following these norms the QC
team members can communicate well, explain
their case stage by stage effectively, which make
a desired impact on those witnessing the case
study, including the judges. The steps involved in
problem solving should include the following 12
(twelve) steps for proper understanding.
12 Steps for QC Problem Solving
1. Identification of work related problems –
usually done through 2 or 3 rounds of brain
storming by Stratifying those problems into A,
B, C (Categories). A-within the scope of the
circle. B-Needing assistance from other areas.
C-Needing management's assistance.
2. Selection of Problem – the problem will be
selected from "A" as it has greater chance of
being solved and implemented easily. But to
choose ONE from the many in category "A”
The following method can be adopted.
a. Consensus method - all members
agreeing on one problem.
b. Weight method - giving weightage to
each problem, a scale of 1-5 can be
used. 1 for lowest and 5 for highest One
bagging highest score is chosen.
c. Ranking method - Rank the problems as
I,II,III,IV and so on. The problem getting
highest number of rank 1 would be
chosen.
3. Defining the problem – should be well
focused and data based reasoning out
rejection, deviation etc.
4. Analysis of the problem- through different
tools like Pareto, Flow diagram, Cause and
Effect Diagram etc.
5. Identification of causes –through tallest
column of Pareto
6. Finding the root causes – through 5 why and 1
how technique etc.
7. Data analysis – by various Statistical tools
scoring highest mark for QC
8. Developing the solution – through cross
fertilization of ideas generated by brain-
storming
9. Foreseeing probable resistance – for
implementation and overcoming the same
10. Trial implementation and check performance
– for validation
11. Regular implementation – after validation
12. Follow up / Review – to arrive at tangible/ impact of QC in VSP, an integrated Steel Plant in
intangible benefits Public Sector.
Summary of various Elementary Statistical Tools
along with the purpose/ use in QC are as follows :

Recently introduced Seven Tools are: Case Study

QC Name DISHA
a) Affinity diagram - to reduce the number of
Develop People for
ideas to a workable one by consensus. Theme
better tomorrow
b) Relation diagram - for finding appropriate
Date of Formation 01-04-2009
solution strategies using why, why technique.
c) Tree diagram - to develop a succession of Date of Completion 25-03-2010
strategies for achieving an objective (target, Higher availability of
Project Name
goal or result) systematically and logically. Steel Transfer Car
d) Matrix diagram - enable the data based on No. Of people involved in
8 (Eight)
ideas to be employed effectively for the QC group
examining the relationships. Department Steel Melt Shop
e) Priorities matrix - to find importance of the Converter Shop –
Area
task in scarce resource situation. Electrical
f) Arrow diagram – for planning the order of
operation, their sequence, relationship and Introduction
criticality in time schedule.
g) Process decision program charts – for About the Organization
planning and designing the activities needed
to solve the problem when the information is Visakhapatnam Steel plant (VSP) is the first shore
incomplete or the situation is fluid and hard based integrated steel plant in the country under
to forecast. the corporate entity of Rashtriya Ispat Nigam
Limited (RINL) located at the east coast of Andhra
Quality Circle movement in Visakhapatnam Steel Pradesh in India. Steel Melt Shop, one of the vital
Plant has spread its root deep down in production departments, convert hot metal into liquid steel
areas. We may now peep into one case study of in Basic Oxygen Furnace (LD Converter) for casting
QC in Steel Melt Shop, the core production unit of into blooms in Continuous Casting Machines.
VSP, to understand the QC activity in VSP and the
overall QC news of VSP to gather knowledge on
About the Department
Converter shop converts Hot metal received from
Blast Furnace to Liquid Steel by blowing oxygen
and adding additives like flux, ferro-alloy etc.
There are 3 nos.of 150 Ton LD Converters with
removable bottom for refractory lining, skirt for
suppressed combustion, bulk material and ferro-
alloy charging system, gas cleaning plant and steel
transfer car.
Salient features of LD converter:
• Wheel Diameter - 1000 mm
• Wheel Type - Double Flanged
• Wheel Load (Max.) - 64 T
• Acceleration - 0.15 m/sec2
1. Identification of Problem causing production
delay was done through Brainstorming using
Round Robin method with the data captured
for different critical equipments of the area.
Total 28 problems were identified.
2. Selection of the problem started by
prioritization through A B C analysis.

• Capacity = 150T Result of the analysis

• Effective volume= 133 M3
• Sp. Volume = 0.886 M3/T
• Height = 8.870 m
• Diameter = 7.86 m
• H/D Ratio (Shell)= 1.13
• H/D Ratio (Lined) = 1.35
• Tilt Speed = 0.1 to 1.0 m/min
• Category A : 9 problems
• Category B : 16 problems
• Category C : 3 problems
Data was collected year wise for category A
problems. They are as follows :

About the Working Area Down Down Down Down

Equipment Time(Hrs Time(Hrs)- Time(Hrs)- Time(Hrs)-
Steel Transfer Car (STC) is used to transport Liquid )-2005 2006 2007 2008
Steel in Steel Ladles from Converter shop to
SPTC 22.05 16.71 22.56 21.10
Continuous Casting Shop.. It is a self-propelled
car, driven by a motor. Every STC has 2 motors. At STC 16.08 24.98 36.66 46.38
a time only one motor is put into operation Lance 3.31 7.75 14 8.25
keeping the other as stand-by. Supply to the
working motor is given through a changeover Tilt 7.2 6.5 20.05 2.65
switch (COS) kept in the car. Electrical power is Slag Cutoff 2.1 0.66 0.66 0
supplied to car by a flexible trailing cable
Skirt 11.78 14.48 15.06 12.26
arrangement using a cable reeling drum (CRD) of
Stemman Germany make. This cable is wound on ID Fan 0.833 0 2.25 0
a car mast from where it is terminated at the COS. HMTC 0 0.83 9.75 0.33
This cable, trailing along the floor on rollers, are
vulnerable to damages from spilled hot metal
under the Converter and Argon rinsing area, Pay- Further by Pareto diagram of category A problems
loaders, uprooted curve angles and dislodged identified STC as the major problematic area
cable rollers. among the Vital Few.

Car Data
• Travel Length - 157 m
• Traveling Speed - 54 m /min
• Acceleration Time - 6 s
• Load carrying cap - 200 T
• Center-to-Center distance bet. Rails -
3600 mm
• Type of Rail - CR120
3. Definition of the Problem 8. Developing Solution : PDCA cycle was tried
Production Loss due to STC Breakdown with the following two alternatives :
Alt 1 : Extending cable carrying channel. It failed
With the selection of the problem, the Objective in Check stage as cable was getting
and Goal was set. entangled.
Alt 2 : Increasing height of mast, diverter and
Objective roller by 600mm, 500mm and 200mm
To reduce downtime of STC. respectively. This got passed and accepted.
GOAL 9. Foreseeing Probable Resistance:
To Reduce Breakdown Delays and Increase The 1. Operational resistance for problem like mast
Availability of STC getting hit by ladle and cleaning of mast and
Then Milestone Chart was prepared. diverter at height was foreseen.
4. Analysis of the problem 2. Resistance from maintenance group for extra
Flow Chart was prepared to have clear height was also foreseen.
understanding of the process. The resistance was overcome through formal and
5. Identification of Causes was done by Ishikawa/ informal meetings with Operation and Mechanical
Fish-bone /Cause & Effect diagram to identify the Maintenance group by showing them the benefit
following major causes of Production Loss due to of higher production and productivity to be
STC breakdown achieved through this modification.

• Damage of Flexible trailing cable 10. Trial Implementation: was done in STC#2 on
• Motor Burning 15-06-2009 and found working alright.
• Faulty Electrical Drive
• Car Jamming
6. Root Cause Analysis was done by scatter
diagram with calculation of correlation values
between downtime of each element and the total 9
STC-2 Down time due to CRD cable

down time. 8

7. Data Analysis of the above correlation values 7

helped in finding the percentage of influence of 6

HOURS

each element on the total down time. The same 4

Improvement
is seen
was tabulated as follows : 3

1
Element Causing Breakdown of STC Percentage of 0

influence on total down 2005-06 2006-07 2007-08 2008-09 2009-10

Element Causing Percentage of influence on

Breakdown of STC total down time(%)
Cable Damage 92 11. Regular Implementation : was done in
Motor Failure 68 STC#1 on 25-09-2009
Electrical Drive Failure 41.7 STC#3 on 22-12-2009
Car Jamming 79

Thus it was obvious that the CRD cable fault had

direct influence on total downtime
Original System Mast Lifting Picture 2

Metal Spillage during Tapping.

30% of the total cable burns occur during tapping

Mast Lifting Picture 1

Diverting Unit Lifting (Drawing)
Diverting Unit Lifting (Picture)

Improved (Modified) System

12) Follow up and Review Loss (Margin) per Ton = Rs. 5600/-
So, Production Loss saved in 2009-10 = Rs.
Tangible Benefits 5600*143*15 = Rs 1.2 Crs
Thus Total Savings in 2009-10 = Rs. (1.2 + .215)
Crs = Rs 1.415 Crs.

Cost of Implementation
• Modification job was completed by 2 skilled

•
and 2 unskilled workers in 2 days
Total Cost/STC = 2 x (2 skilled + 2 unskilled)
= 2 ({2 x 235} + {2 x 155})

•
= Rs. 1560/-

•
Cost for 3 STCs = 3 x 1560 = Rs. 4680/-
Cost of Materials / STC (Roller & Plate Cost) =

•
Rs.10000/-
Total Cost for QC Project = Rs.4680/- +
Rs.30000/- = Rs.34680/-

Thus Final Total Savings in 2009-10

= Rs. 14150000 – Rs.34680
Financial Savings in 2009-10 = Rs. 14115320 = Rs.1.412 Crs. (say)

By way of reduction in cable consumption

Other Intangible Benefits
• Improved Productivity
• Higher Confidence Level
• High Morale
• Employee Satisfaction

By way of reduction in Break-Down Time

Average Breakdown Time per Year (from 2005 to
2008) = (16.08+24.98+36.66+4638) Hrs/4 =
31.025 Hrs
Breakdown Time in 2009-10 = 15.98 Hrs
Time saved in Breakdown = (31.025 – 15.98) Hrs =
15 Hrs(Approx.)
Production Loss in 1 Hr. = 1 Heat = 143 Ton of
Liquid Steel
Chance of QC failure
Japanese industry emphasizes on life-long
employment and seniority based career growth,
whereas west advocate for labour mobility and
skill. Japanese workers take pride in
company/place of work but western workforce is
more loyal to their profession/occupation. So
critics argue the success of application of QC in
US/ Western cultural settings. Matsushita Electric,
a leader of QC in Japan, does not have Quality
circle in its Chicago(US) plant as it does not
consider American culture/ worker suited for
Circle activities.
The other major causes of QC failure are as
follows :
1. Lack of training
2. Lack of motivation
3. Lack of Top Management support
4. Lack of commitment
5. Lack of data
6. Lack of communication between various
levels of hierarchy etc.
Remarkable success in VSP, an Indian
Public Sector Unit
The above case is a sample of successful QC in
VSP which gets reflected in the following table of
overall QC movement of VSP since inception:

Sl. No. of QC Projects Employee Involvement Estimated Savings

Year
No. Target Achieved No. Ref. Manpower % (In Rs. Lakh)
1 1990-91 25 51 280 2 13
2 1991-92 50 83 700 5 59
3 1992-93 100 164 1200 8 190
4 1993-94 150 233 1600 10 295
5 1994-95 200 425 3300 17 335
6 1995-96 500 1281 5758 33 844
7 1996-97 1500 3152 7200 41 1008
8 1997-98 3000 3187 7800 44 2018
9 1998-99 3250 3250 8575 49 1200
10 1999-00 3322 3350 9450 54 900
11 2000-01 3370 3400 9900 59 850
12 2001-02 3400 3450 10500 62 900
13 2002-03 3450 3777 11200 68 950
14 2003-04 3500 3838 11500 16197 71 1100
15 2004-05 3555 3916 12201 16714 73 1400
16 2005-06 3600 4131 12311 16503 74.6 1725
17 2006-07 3700 4185 12377 16503 75 1855
18 2007-08 3750 4207 12235 16265 75.2 1900
19 2008-09 3800 4251 12817 17044 75.2 1920
20 2009-10 3850 4277 13287 17668 75.2 1995

This study may exude confidence in the management of Public Sector Units of
India that simple motivational QC technique can become a powerful tool to
enhance PRODUCTIVITY, which is key to the prosperity of Industry in particular,
and the whole Nation in general.