QUALITY CIRCLES

(QC)

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What is a quality circle?
 Quality circle is a problem solving and
industrial management concept.

 A voluntary group of workers in the same

workplace area who meet regularly to
discuss ways of solving workplace
problems to improve their own works,
company efficiency and operations.

 It is a bottom-up approach to problem

solving.
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Objectives
 Build strong workplace
 Improve work methods
 Enhance morale
 Foster harmonious human relations
 Encourage voluntarism
 Encourage workers to think well and to use wisdom
 Broaden the way of thinking
 Improve quality assurance
 Establish a state of control
 Improve the income of employees
 Allow specialists to devote their time to proper jobs

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Essential Ingredients of QC (by
Prof Ishikawa)
 Management must be supportive of the program.
 Participation in the process must be voluntary.
 Members should be trained in problem analysis and
QC techniques.
 Projects should be team effort, not individual effort.
 Projects should be related to the circle members’ work.
 There should be adherence to a win-win, rather than a
win-lose style of dealing with others.
 A large number of managers at all levels should buy in
to the merits of the concept.

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Quantifiable Benefits of QC

 Payback 2:1 to 14:1 (USA)

 World average payback 5:1 to 8:1
 Efficiency up to 20%, cost down by 33%
(Taiwan)
 16% of total profits (Japan)

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Achievements through QC
 Promote and develop teamwork
 Improve working relationship
 Provide better communication
 Improve quality and productivity
 Draw out workers ability
 Improve job satisfaction
 Sense of achievement
 Development of individual skills

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Achievements through QC (Cont’d)

“Overall the QC tends to develop

a sharper eye to look into
possible areas of improvement
in the normal working environment.”

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Structure and Implementation
 Steering Committee

 Consists of representatives of top management,

with the CEO as chairman.

 Oversees and charts direction for all QC

activities.

 Policy making body that establishes operational

guidelines.

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Structure and Implementation
(Cont’d)
 Facilitator

 Normally middle management

 Responsible for training QC leaders and

assisting them to train their members.

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Structure and Implementation
(Cont’d)
 Quality circle leader

 Usually first line supervisor

 Guides or directs activities of QC, and is

responsible for training the QC members
in basic techniques.

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Structure and Implementation
(Cont’d)

 Quality circle members

 Workers from the same workplace.

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Problems within QC
 Difficulty in selection of problems/topics
 Low participation
 Lack of understanding
 Difficulty in data collection
 Lack of confidence
 Insufficient knowledge
 Lack of facilities
 Shift duties
 Personality differences
 Differences in education level

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Problems with Facilitator and
Steering Committee
 Pay no attention to circle’s idea
 Too little publicity
 Lack of support
 No monitoring of progress
 Insufficient facilitation
 Resistance to new ideas or changes
 Ineffective steering committee

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Causes of Failure
1. Organizational Culture
Not people centered.

2. Economic Conditions
Recession results in retrenchment, disrupts work flow and low morale
of workers.

3. Lack of Cooperation
Lack of cooperation or management support from middle
management and first line supervisors due to fear of loss of control or
authority.

4. Lack of Time
If regular meetings are not held, enthusiasm and momentum would
soon be lost.

5. Turnover, Promotion, Transfer and Retirement

These changes disrupt the cohesiveness and continuity of QC activities.

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Causes of Failure (Cont’d)
6. Non-Observance of QC Principles
Members must stick to QC principles and make constant effort to
comply.

7. Inadequate Resources
Top management makes resources available. QC members must
source for means to accomplish tasks.

8. Disillusionment
People mistake QC as a means of cost saving and push to extremes to
achieve goals at all expense. QC is “people-building”, not just savings
in dollars and cents.

9. Formation of Elite Groups

Results in rivalry and unhealthy competition, creates lot of
dissatisfaction and disenchantment for some. Management should
discourage formation of such QC groups.

10.Other reasons
Poor communications, no training, managers do not listen, “not for
me” attitude, no recognition, etc. 15
Problem Solving Sequence in QC
 Problem identification
 Problem selection
 Identification and evaluation of causes
 Identification and evaluation of solutions
 Decision on a solution
 Implementation plan
 Potential adverse consequences of plan

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Process Analysis Techniques
roughly in order of sophistication and
complexity
 Flow Charts
 Work Flow Diagram
 Data Collection Worksheets or Tally Chart
 Graphic Check Sheet
 Run Chart or Time Plot
 Scatter Diagram
 Frequency Histograms – Dot Plot or Stem & Leaf
Diagram
 Pareto Analysis
 Cause-and-Effects (Fish Bone) Charts
 Statistical Control Charts
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Thank You

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