Meaning of Quality Circles:

Conceptually Quality Circles can be described as a small group of employees of the same work area,
doing similar work that meets voluntarily and regularly to identify, analyse and resolve work related
problems.

This small group with every member of the circle participating to the full carries on the activities,
utilising problem solving techniques to achieve control or improvement in the work area and also
help self and mutual development in the process.

Concept Quality Circles in India:

The concept of the Quality Circle is based on “respect for the human individual” as against the
traditional assumption based on suspicion and mistrust between management and its employees.

The concept of QC has entered Indian organizations recently but the concept is catching the
attention of many organizations. Many companies have tried out QCs. Some have succeeded, others
had to abort half way and some others have just introduced it and are in the experimenting stage.
Some companies which have implemented QC programmes successfully are BHEL, Mahindra &
Mahindra, SKF, Maruti Suzuki, Xerox Modicorp, Modi Rubber, and so, on.
For creating awareness and imparting skills in implementing QC concept in Indian organizations,
Quality Circle Forum of India (QCFI) was founded in 1982. It is a non-political, non-profit
organization. Initially, the Forum concentrated on developing QCs in industrial sector.
However, over the period of time, the Forum has made efforts in other areas too particularly in
service sector. The Forum has established Quality Circle Excellent Centre (QCEC) which is an
institution of learning. It provides various types of training related to establishment and operation of
QCs.
Indian organizations have not established QCs on the same scale as Japanese organizations have
done. This is probably due to the fact that QCs require very high level of participation which Indian
organizations lack

Characteristics of Effective Quality Circles

The quality circle thus has the following characteristics:

1. A small group of people who do similar work

The quality circle essentially consists of people who do similar work. But it does not imply that the
circle cannot consult the specialists or others. In fact, ideas and solutions can be sought from any
corner.

2. The members in the circle should not be many

It is argued that smaller the circle better the coordination and homogeneity. The circle should look
like a team and not a committee. It should consists of members between three and ten depending
upon the size of the department. As suggestions for removing any snag or improving the productivity
are invited from every member of the department no one would feel neglected or side tracked.

3. Voluntarily meeting together

People are invited to join the quality circle but they are not compelled. The members feel the need
to meet together to discuss and devise ways to improve the functioning of their areas concerned.
Hence, joining a quality circle is voluntary and not forced upon.
4. Meeting regularly every week
The duration and frequency of meetings even vary in Japan (where this concept originated), it is
favored to have meetings at least an hour every week. But actually, the frequency and duration of
each meeting should be decided by the circle members who will take all factors into account such as
the severity of the problem, urgency of problem, number of problem etc. The date of holding a
meeting is also decided by the circle members so that their meeting does not disturb the production
schedule.

In practice, the quality circles have proved to be a boon in disguise for the industries. They may hold
the meetings during a maintenance period, a job change over or after completion of weekly work
schedule. They may meet at the beginning or end of the shift or during lunch break.

5. Under the leadership of their own supervisor

The quality circle is purely concerned with work-related problems. Therefore, supervisors of the
work area prove to be the best persons to lead the group, as they are thorough with the functioning
of the department. The idea of electing or selecting the leader from the quality circle members is not
encouraged as it does not work out effectively.

6. Identification, Analysis and Solutions

The circle identify their own problems in their own work area. The circle members are not
encouraged to highlight the fault of others.

7. Presenting Solutions to Management

After collection of data, working out new ideas in consultation with all kinds of people, the members
come to a conclusion which if implemented will deliver the goods. The final idea (solution) should be
presented to the management together by the group members (not by the leader alone or any other
member). Interestingly the circle solutions (projects) are so meticulously thought out that their
outright rejection (not favored for implementation) by the management is rare.

8. Self Implementation
The quality circles are made for implementation of their solutions as they deal with the problems
over the fence in the next department are completely isolated from it. Only each department has to
care for their babies.

9. Meeting time any time

The meetings of the circle members may not be arranged essentially during their normal working
hours. As it may affect their working and thereby production. Also, if the work is done in shifts then
the circle members may come different shifts and a common free time for all may be difficult to
spare within normal working period. Hence, such meetings could be held any time in a working day
and holiday.

Quality Circle – Objectives and Purpose

S. Ingle (1985) has identified objectives of quality circles which are related to people and task. The
principle objective of Qc is to ensure delivery of the quality goods and services to confront challenges
against competitors so that organization can survive, grow and develop.
So the objectives of Qc include:
i. Self-development
ii. Mutual development
iii. Satisfaction of psychological needs
iv. Improvement in communication and attitude
v. Problem prevention
vi. Team building
vii. Linkage among people
viii. People improvement
ix. Participation
x. Reduction of absenteeism and grievances
xi. Improvement in quality
xii. Reduction of wastes, scraps
xiii. Reduction of cost
xiv. Improvement in productivity
xv. Safety improvement
xvi. Problem solving
xvii. Promoting human relation
xviii. Reduction of error
xix. Creation of a reservoir of committed workforce
xx. Promoting sense of belongingness.

Organisation and Working of Quality Circles:

Q.C. was conceived in Japan in 1962 as a forum for training its work force for improving the quality of
products. Q.C. is a voluntary one. Employees are free to join or not to join. In it, 8 to 10 employees
including the Supervisor from same workshop doing similar work join together as a group. The
Supervisor can become leader of the group, if the members of Q.C. so desire.

It is a part time activity; members of Q.C. are allowed to meet for an hour every week. During the
various meetings, these groups progressively identify, select, analyse and solve the problems. Later
they offer their proposed solutions to management for consideration, approval and implementation.

Additionally a senior officer from same workshop is nominated as facilitator who guides the activities
of the group.

A Management Committee at senior level is also formed, which overview the progress of Quality
Circles.

Training of members, leaders and facilitators is very important for the success of programme.

Rules for Quality Circles:

(a) Each member can contribute an idea on his turn in rotation.

(b) Each member offers only one idea per turn regardless of how many he or she has in mind.

(c) Not everyone has an idea during each rotation, when this occurs just say “Pass”.

(d) No criticism or comments should be passed on the ideas being contributed by the member
whatever old it may look to be, welcome their ideas.

(e) During brain-storming, no evaluation of suggested idea should occur. This applies equally to
leader, phrases such as “We have tried it before”, “Impractical”, “Well” “May be it would work”.
“Doubtful”, “Very good” etc. should not be uttered.
(f) Members can vote by raising their hands.

(g) Only supporting votes are taken. Votes against the ideas are not allowed.

(h) The time allotted for brain-storming session should be variable. The length of time that can be
spent profitably will vary widely with nature of problem and the group itself. As a general practice,
one hour is probably the minimum.

(i) While members give their ideas, they are recorded by the Recorder on a large sheet.

(j) It is often helpful to set a goal originally, i.e. Let us start for 30 ideas.

(k) When all members say “pass” then the first phase of brain-storming session is over. This means
all ideas have been exhausted.

(l) Now all the ideas recorded on the sheet are displayed.

(m) These massive number of ideas are then narrowed down by the process of voting. The voting
technique works because the members are experts in their areas. Members vote on each idea. The
leader records each vote next to the idea.

(n) Members can vote for as many ideas as they feel have value. Only supporting votes are taken.

(o) Leader draws a circle around those ideas that receive the most votes. The members thus find that
many of the top ideas will be so identified.

(p) Now the members can focus on a few important ideas instead of being somewhat confused by a
large number of them. These few important ideas are voted on to give ranking to the circle ideas.
Leader writes the ranking number beside each idea that has been circled.

(q) A member can ask for voting on any idea and argue for or against it. Others can join, if they wish.
Only when the discussion has finished then the voting take place.

Duties of Circle Leader:

For the success of Quality Circles, circle leader must have following duties:
(i) He must assume the responsibility of guiding the members.

(ii) He must make his members sure about what is going on.

(iii) He must channelise the discussions.

(iv) Every member is allowed equal opportunity.

(v) Specific task be assigned to each member.

(vi) He must work in coordination with facilitator.

Steps for Setting up Quality Circles:
For starting Quality Circles in an organisation, following steps should be taken:
(i) First of all Managers, Supervisors and Foremen must be made to understand the concepts and
activities of Q.C.

(ii) Management’s total support and commitment should be made known to everyone in the
organisation.

(iii) Steering committee is formed with the top management personnel to give direction to Quality
Circle activities.

(iv) A facilitator (or sometimes known as promoter) is selected from the senior management level,
who will serve as coordinator and advisor to the circle.

(v) Supervisor and foreman are then trained to act as Q.C. leaders.

(vi) Members of each circle must be selected from the persons who are doing similar type of work or
belong to the same department or section.

(vii) Membership to the circle is voluntary.

(viii) First few meetings of the circle are held with a view to train them.

(ix) To start with, only one to two circles should be formed in an organisation, and then increase the
number gradually as more and more experience is gained.

(x) Meetings must be held regularly, may be once in a week initially and once in a month on
completion of basic training of members.

(xi) Everyone’s suggestion or problem matching with the circle’s objectives is discussed.

(xii) Total participation of team members must be encouraged.

(xiii) Recommendations of the circle must be considered and decisions should be taken without
delay.

Benefits of Quality Circles (Q.C.):

1. Through the forum of Q.C. the chronic problems-of organisations which really create hurdles in
work get resolved by the grass root employees of organisation, whose knowledge and experience
otherwise is not fully utilized.

2. With such a capable work force, any organisation can easily undertake more difficult and
challenging assignments for its growth and profit.

3. As the employees gain experience they take more challenging projects, in due course they
undertake projects on cost reduction, material handling, quality improvement, preventing wastage,
improving delivery schedule, improving customer service, improving inspection and test methods,
preventing accidents improving design and process etc.

4. Cost reduction.

5. Increased productivity.
6. Improved quality.

7. Better communication.

8. Better house-keeping.

9. Increased team work.

10. Smooth working.

11. Better mutual trust.

12. Greater sense of belongingness.

13. Increased safety.

14. Better human relations.

Launching of Quality Circle Programme:

The typical steps for launching programme are as under:
(i) Orientation Programme for Senior Management Personnel.

(ii) Orientation Programme for Managers and Executives.

(iii) Orientation Programme for Selected Supervisors.

(iv) Orientation Programme for Workers (selected area).

(v) Formation of Circles (Minimum 2 and Maximum 4).

(vi) Training of Facilitators.

(vii) Training of Leaders.

(viii) Q.C. meetings for projects.

3.1 Structure of Quality Circles:

The structure of quality circles is governed by the unique conditions in different

countries and organizations. Eventually, quality circles get integrated into the company’s
total operations and therefore, it is advisable not to give a separate entity to the structure
of quality circles in any organization. Every department and every work area should feel
personally responsible to
 make the operation of quality circles a success. The aim is to see that the concept gets
woven into the very fabric of the organization and becomes way of life with every one in every
sphere of work (Olga L. Crocker, 1986).
The following figure depicts organization of quality circles.

Figure 3.2 Organization of Quality Circles

 CO – Coordinating agency
 SC – Steering Committee
 DC- Department Committee
 F – Facilitator
 L –Leader
 DL – Deputy Leader
 M – Member
 NM – Non - Member

The main role and responsibilities of each one are:

QC Circle member
 Participate in the discussions.
 Weekly meeting adherence.
 Brainstorm and select problems.
 Discuss and sort out useful ideas.
 Implement and check the benefits.
 Present to the top management.

This organistional structure is applicable to medium and large size organizations, having a
number of departments with a large work force. In small organizations the structure can
be simplified to suit the requirements. Sometime individual unions have to make
certain changes in the suggested structure depending upon their unique needs.

3.5-1 Members

Membership is strictly voluntary and anyone who wishes to join is encouraged to

join. Hence the members are heart of the circle programme and proper utilization of
their untapped brain power is key top its success.

Functions of Members

An effective member should:

 Attend all meetings on time

  Learn problem solving techniques

 Follow the code of conduct

 Stay within all quality circle policy/rules

 Promote the quality circle programme

 Help other members in the work of the circle

 Participate in solving problems

3.5-2 Leader

The quality circle leader is elected by the circle members. Experience proves that
circle activities will have a better chance of success when the supervisor or foreman is the
leader. Leader is like the thread in a garland of flowers. It is the thread which binds the
individual flower into a garland. In a good garland, the thread is unseen. Flowers are
prominent. Similarly, in an effective circle the leader will not be prominent but the members
will be prominent. In other words, the leader is the binding for the effectiveness of the circle.
The leader –

 acquire skills in quality circle techniques

 motivate potential members to join circle

activities
 schedule circle meetings

 decide the time frequency and duration of the meeting

 ensure effective participation of all members

 prepare agenda for effective utilization of meeting

 ensure that the problems discussed are work related problems
 stimulate group discussion, by giving necessary inputs and inputs and
encouragement
 conclude each meeting with the responsibilities and assignments clearly
defined
 ensure the minutes of the meeting are properly recorded and distributed
 arrange for management presentation

 maintain report with the facilitator

 plan the agenda to be meaningful and effective

 hold discussion with the facilitator before and after the meeting
 be responsible for people building
  encourage non members to become members

 records the minutes of each meeting

 maintain the members, attendance long maintain a member training status

record

3.5-3 Deputy Leader

Like leader deputy leader is also elected by the circle members.

The deputy leader –

 generates enthusiasm for circle activities

 takes care for the operation of the circle

 meets with the circle once in a week

 calls upon the facilitator for assistance

 responsible for circle records

 creates co-ordination and harmony in the circle

 serves as a key link between members and management

 attends leadership training

 works closely with the foreman

 seeks advice and asks for help if required

 keeps the meetings on track

 enforces a code of conduct

 maintains a good attitude about circles

 gives assignments

 starts and ends meetings on time

 helps to get new members for the circle

 promotes the quality circle programme

3.5-4 Facilitator

The facilitator is an important link in the structure that is responsible for coordinating
and conducting quality circle activities. He is a person who should make things happen
through people. He is a combination of a coach, coordinator, communicator, innovator,
promoter, teacher, statistician and catalyst - all in one.

The facilitator should be selected by the steering committee immediately after taking
a definite decision to implement quality circle. In fact, the first task of the steering committee
is to select the facilitator.
 The facilitator is a senior officer of the department, where quality circles are working
and is nominated by the management. Because of the crucial role that the facilitator plays in
making quality circles operation a success this selection has to be done carefully.
The Facilitator –

 forms the link between the circles and the rest of the organization
 works closely with the steering committee

 continuously coach the circle leader

 trains the circle leader

 helps the leader during training of the members

 maintains circle records

 arranges meeting with outsiders if necessary

 publicizes the programme

 preparation for presentation – invitations, papers, visuals

 prepares training material

 organizes meetings

Thus the facilitator forms the link between the teams and rest of the
organization and works closely with
 steering committee. The facilitator may be assisted by a number of department coordinator.

3.5-5 Steering Committee

This committee comprises heads of major functions as members and the chief executive
of the organization as the chairman. For the successful implementation of quality circles, the top
management’s support must not only be available but also visible to all.

Steering committee sets goals and objectives for quality circle activities. It also formulates
and establishes operational guidelines and controls the rate of expansion. The steering
committee should be formed immediately after taking a decision to implement quality circle
activities.
The steering committee is policy making group. The success of quality circles in any
organisation depends upon how the steering committee can use its expertise for achieving the
primary objectives of the organization. The responsibility of steering committee is to create
successful and harmonious quality circle activities. Te success of quality circle depends on the
effectiveness of the frame work of the five most important principles of management viz. (1)
Setting objectives (2) Planning (3) Staffing and scheduling (4) Directing and (5) Control. In other
words, the steering committee is the Board of Director of the quality circle activities.

The Steering Committee –

 takes an overview of the operation of quality circles in the organization as a

whole. On the basis of reports from the coordinator and the facilitators, problem
areas are identified and
remedial action suggested.

 takes decisions on important recommendations of quality circles falling outside

the competence of other levels of management which are reported to the
steering committee.
 gives major policy guidelines and directions for the healthy propagation of the
concept.
 sanctions major programmes and financial support to give thrust to the
promotion of the quality circles
 attends management presentations and get together
 meets regularly once in two to three months are convened by the coordinator.

3.5-6 Coordinating Agency

While the facilitator nurtures the quality circles in his section/department the
 coordinating agency coordinates the activities of circles throughout the orgaisation. In the
coordinating agency depending upon the number of circles in operation, full time coordinators
have to be nominated. The department to be nominated for coordination depends on the
convenience of the organization. The formal naming of the department for the work of
coordination is important for institutionalizing the movement as, individuals may get shifted,
departments normally are permanent in any organization and therefore continuity of the quality
circle’s propagation is assured by earmarking a particular department for this task.

The Coordinating Agency –

 organises training programmes for members as and when new circle are formed
 convenes the steering committee meeting regularly once in two to three
months and maintains the minutes thereof
 organizes top management presentations regularly once in two to three months
 centrally registers circles as and when formed and also maintains records of
number of members, frequency of management representations, etc.
 coordinates and evolves a consensus for norms to assess the performance of
different quality circles and of different divisions
 coordinates and ensures availability of common facilities to all quality circles
 prepares a budget for the functioning of quality circles and submits the same to
the steering committee for adoption
 organizes social get together, conventions and conferences, etc., from time to
time as decided by the steering committee
 coordinates the deputing of quality circle leaders and members to other
orgnisation and programmes
 helps in resolving problems that may be encountered in the implementation of
quality circles with the help of the steering committee, if necessary
 arranges for publication of the activities of the quality circles in newsletters
and journals
 arranges for guest speakers to talk on subjects of interest to quality circles
 maintains a library of publications on quality circles for the benefit of those
interested
 assists the steering committee in affording adequate level of motivation and
recognition to quality circles in operation so as make the movement a self
sustained one and help it to grow from strength to strength.

3.5-7 Top Management

 The top management has an important role to ensure the successful
implementation of quality circles in the organization.

The top management –

 must demonstrate unequivocally its understanding and faith in the concept of

quality circle.
 must make provision in the annual budget for meeting the expenditure of
operation of quality circles
 encourages healthy growth through competition between quality circles by
instituting an award to the division/department which performs best
in propagation on quality circles as well as to the quality circles which makes
the best presentations at any centrally organisaed convention or conference.
 gives necessary guidance to employees at different levels for making the quality
circle movement a self sustained success.
 includes propagation of quality circles as one of corporate objectives.

3.5-8 Non-Members

It would be difficult for the members of the quality circles to implement their own
suggestions without the cooperation of non-members. In fact non-members would be enthused
to participate in quality circle activities and also to witness the presentations being given by
quality circles from time to time. If this were to be done, non members’ would gradually change
their attitudes, appreciate what they, as individuals would get out of participation in circle
activities and may then decide to join the existing circles or form new ones. Under no
circumstances should a climate of conflict be created in any work area between members and
non-members. The lines of communication should be kept open to the non-members. Non-
members should encourage to present ideas to the circle.
The structure of quality circles as described above is relevant to large
organizations with a large work force. It is not necessary for small organizations to
adopt such an elaborate structure. The suggested set up may be suitably simplified to meet
their requirements. A centrally organized top management presentation would be adequate for
giving everyone of the small number of circles a chance to present their case studies and
achievements.