Quality Circles (a.k.a. QCCs)

© Operational Excellence Consulting. All rights reserved.
QUALITY CIRCLES

© Operational Excellence Consulting. All rights reserved. 2
Learning Objectives
Understand the
philosophy and
concept of Quality
Circles
Define the
objectives, benefits
and the modus
operandi of Quality
Circles
Describe the
organizational
structure and roles
and responsibilities
of Quality Circles
Gain practical tips
for managing
Quality Circles and
define the key
success factors
NOTE: This is a PARTIAL PREVIEW. To
download the complete presentation, please
visit: https://www.oeconsulting.com.sg

Contents
Background and Introduction
Quality Circles
Practical Tips for Managing Quality Circles
Overview of PDCA Cycle and QC Tools
A Case Study on QC Problem Solving
Key Factors for Quality Circle Success
Questions for Discussion
2
1
3
4
5
6
7

In the Gallup State of the Global Workplace
2021 Report, only 20% of employees are
engaged at work.

5S
Suggestion
System
Quality
Circles
3 Cornerstones of Small-Group Activities

Introduction to Quality Circles
§ Quality Circle is also popularly known as QC Circle
§ Quality Circles (QC) or Quality Control Circles (QCC) were highly
popular in the 1980’s as part of the TQC/TQM “Quality Movement”
§ Today, although Lean has gained wide acceptance, the quality
philosophy is still very much a key pillar of Lean (Jidoka)
§ The tools and techniques used by QCs are still relevant in kaizen
activities
§ This presentation is focused on Quality Circles

Concept of Quality Circles
§ A Quality Circle (or Quality Control Circle) is a group of employees
performing similar or related tasks, who get together on a regular
basis, to discuss a topic or theme affecting their work or workplace

Philosophy of Quality Circles
§ People take interest and pride in
their work
§ Shared decision-making process
§ Development of individual
capabilities
§ Creating a cordial atmosphere in
the workplace
§ Benefits both management and
staff

“QC circle activities
provide mirror
images of the abilities
of the president and
middle management.”
Dr. Kaoru Ishikawa

Types of Quality Teams
Types of Teams Quality Circle (QC)
Quality Improvement
Team (QIT)
1. Formation § Department-oriented § Project-oriented
2. Theme § Selected by members
§ Simple
§ Assigned by management
§ More difficult
3. Members § Same department § Selected according to
expertise
§ Higher echelon
4. Approach § PDCA
§ 7 QC Tools
§ PDCA
§ 7 QC Tools
5. Upon Completion of
Project
§ Moves to another theme § Disbanded

Objectives of Quality Circles 2
§ To motivate workforce through:
• Opportunities for employees to utilize
their talents
• Recognition given for achievements
§ To improve overall company
performance in the long term through:
• Higher productivity
• Better quality products/services
• Reduced costs, etc.

Benefits of Quality Circle Activities 1
§ Company
• Reduced absenteeism and staff
turnover
• Increase productivity
• Improve quality of products/
services
• Increase revenue
§ Management
• Smooth workflow
• Reduce control and supervision

Fundamentals of Quality Circle Activities
§ Group based
§ Participation by all members
§ Continuous process
§ Application of problem-solving
(“QC”) tools
§ Projects/themes are related to
the work or the workplace

The Quality Circles Structure Parallels the Formal
Organizational Structure
CEO
Division
Managers
Department
Managers
Supervisors
Frontliners
Structure of a Company Structure of Quality Circle Activities
Members
Secretariat
Facilitators
Leaders
Steering
Committee

Quality Circle Roles & Responsibilities 1
Role Responsibilities
Steering Committee
(a.k.a. Management
Committee or Promotion
Committee)
§ Monitor all QC activities of the organization
§ Manage QC publicity drives and campaigns
§ Ensure success of the movement
§ Support all QC activities and events
§ Approve QC projects where applicable
§ Organize training programs and seminars on QC concept and tools
Quality Circle
Secretariat
§ Act as a Project Management Office
§ Maintain Quality Circle records
§ Organize promotional activities
§ Register new teams
§ Keep track of progress of teams
Quality Circle Team
Manager
§ Encourage and motivate QC
§ Monitor all QC activities of his teams
§ Provide meeting place, resources, materials, equipment and supplies
§ Help QC in theme and problem selection
§ Communicate on behalf of his teams with the steering committee
§ Ensure necessary training is provided
§ Implement approved QCs’ recommendations
§ Help the team to prepare for project presentations
§ Be accountable and responsible for the QC activities within own
department

Example of a QC Organization Structure
ILLUSTRATIVE
QC Promotion
Committee
Facilitator
Leader
Members
Leader
Members
Facilitator
Leader
Members
Leader
Members
QC
Secretariat
QC QC QC QC

Setting Up a QC Promotion Office
§ Setting up a promotion office is the first step in promoting QC
activities
§ Assign a full-time staff to be in charge of the promotion office
• Preferably someone with process improvement experience or has in-
depth knowledge of the area’s operations
§ Key responsibilities:
• Promote QC activities
• Provide administrative support

Key Role of Managers & Supervisors:
Creating Skill, Motivation & a Favorable Environment
§ Consider how to increase QC cctivities in their areas
§ Regularly check the themes, estimated date of completion, and
status of each circle in their areas
§ Personally check with circle members. A simple “How is it going?” or
“Any problems?” goes a long way.
§ Actively support circles that are having trouble with ideas and offer
advice to ensure each circle achieves something concrete
§ Personally view the results each circle achieves and personally
thank each team member for his or her efforts

Choosing Quality Circle Leaders
§ People selected as QC team
leaders must have strong
leadership skills to support and
motivate the entire team
§ In some environments,
supervisors act as team leaders
§ In other cases, teams select
their own leaders and
supervisors provide backup
support

Monitoring the Progress of Quality Circles
Form a QC
Register the QC
with Secretariat
Identify Problem
and Set Target
Register Theme
with Secretariat
Prepare QC
Activity Plan
Proceed through
Problem Solving
Cycle (PDCA)
Prepare Notes of
Meetings & Seek
Approval for
Recommendations/
Standardization
Compile Reports
on the Results
Evaluate QC
Performance &
Present QC Story
to Management

Common Reasons for QC Failures in Companies
§ No training
§ No follow-ups on project
§ “Lip service” from
management
§ Poor middle management
support (ownership)
§ No objectives for project
§ No reward and recognition
§ Poor facilitation
§ Too much expectation from
management
§ Changes in management
§ No union involvement
§ Poor monitoring and
evaluation system
§ Poor promotion within the
company
§ No budget and yearly plan for
the QC program

The PDCA Approach to Problem Solving
§ A systematic approach to
problem solving
§ Provides the framework for a
team to carry out improvement
§ The framework is used
together with the 7 QC tools
Plan
Do
Check
Act

The 8 Steps of PDCA Problem Solving
Select the Theme
Plan the Schedule
Grasp the Present Situation
Establish the Target
Analyze the Cause & Identify Corrective Action
Implement Corrective Action
Evaluate the Result
Standardize & Follow-up
PLAN
ACT
CHECK
DO
1
2
3
4
5
6
7
8

“As much as 95% of
quality related
problems in the
factory can be
solved with seven
fundamental
quantitative tools.”
Dr. Kaoru Ishikawa

Theme: Reducing Scrap in the Machine Shop
Source: Sobek & Smalley
QC Storyboard (Using an A3 Report Format)

Ingredients for Quality Circle Success 2
5. A core of trained problem solving
facilitators and leaders
6. A reward and recognition system
that sustains the interest of
problem solving members
7. A comprehensive monitoring
system to track and sustain the
program

Avoid the Division of Labor
§ Avoid the division of labor as
practiced in some companies
where TQC/TQM is handled by
the Quality Assurance division
and the QC activities are handled
by the Human Resources
division
§ That is contrary to the objectives
of QC and will only end up in
failure

Example of an Evaluation Method of QC Activities
Item Points
Selection of the theme 20
Cooperative effort 20
Understanding of the existing condition and the method of
analysis
30
Results 10
Standardization and prevention of recurrence 10
Reflection (rethinking) 10
Total 100

Exercise: Quality Circle Activity
Instructions:
Describe a Quality Circle process with which you are
familiar.
a. What makes it effective (or ineffective)?
b. How might you improve the process?
List your observations and suggestions on a flip chart.
Present your findings to the class.
10 mins
ACTION!

Operational Excellence Consulting is a management training and consulting
firm that assists organizations in improving business performance and
effectiveness. Based in Singapore, the firm’s mission is to create business
value for organizations through innovative design and operational excellence
management training and consulting solutions. For more information, please
visit www.oeconsulting.com.sg

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