Quality Circle, Marketing

1. QUALITY CIRCLES
“Quality begins on the inside... and then works its way
out in a circular manner”

2. WHAT IS QUALITY CIRCLES?
• Voluntary groups of employees who work
on similar tasks or share an area of
responsibility
• They agree to meet on a regular basis to
discuss & solve problems related to work.
• They operate on the principle that
employee participation in decision-making
and problem-solving improves the quality
of work.

3. HISTORY OF QUALITY CIRCLES
• Quality circles were first established in JAPAN in
1962; Kaoru Ishikawa has been credited with their
creation.
• The movement in Japan was coordinated by the
Japanese Union of Scientists and Engineers
(JUSE).
• The first circles were established at the Nippon
Wireless and Telegraph Company but then spread to
more than 35 other companies in the first year.
• By 1978 it was claimed that there were more than
one million Quality Circles involving some 10
million Japanese workers.

4. HISTORY OF QUALITY CIRCLES
• There are now Quality Circles in most East Asian
countries; it was recently claimed that there were more
than 20 million Quality Circles in China.
• Quality circles have been implemented even in
educational sectors in India, and QCFI (Quality Circle
Forum of India) is promoting such activities. However
this was not successful in the United States, as it (was
not properly understood and) turned out to be a fault-
finding exercise although some circles do still exist. Ref
Don Dewar who together with Wayne Ryker and Jeff
Beardsley first established them in 1972 at the
Lockheed Space Missile Factory in California.

5. THE CONCEPT
• The concept of Quality Circle is primarily based upon
recognition of the value of the worker as a human being,
as someone who willingly activates on his job, his
wisdom, intelligence, experience, attitude and feelings.
It is based upon the human resource management
considered as one of the key factors in the improvement
of product quality & productivity. Quality Circle
concept has three major attributes:
Quality Circle is a form of participation management.
Quality Circle is a human resource development
technique.
Quality Circle is a problem solving technique.

6. THE OBJECTIVES
• The objectives of Quality Circles are multi-faced.
A) Change in Attitude.
From "I don’t care" to "I do care"
Continuous improvement in quality of work life through humanization of
work.
B) Self Development
Bring out ‘Hidden Potential’ of people
People get to learn additional skills.
C) Development of Team Spirit
Individual Vs Team – "I could not do but we did it"
Eliminate inter departmental conflicts.
D) Improved Organizational Culture
Positive working environment.
Total involvement of people at all levels.
Higher motivational level.
Participate Management process.

7. ORGANISATIONAL STRUCTURE
• A Quality Circle has an appropriate organizational structure for
its effective and efficient performance. It varies from industry to
industry, organization to organization. But it is useful to have a
basic framework as a model. The structure of a Quality Circle
consists of the following elements.
– A steering committee: This is at the top of the structure. It is
headed by a senior executive and includes representatives
from the top management personnel and human resources
development people. It establishes policy, plans and directs
the program and meets usually once in a month.
– Co-coordinator: He may be a Personnel or Administrative
officer who co-ordinates and supervises the work of the
facilitators and administers the program me.

8. ORGANISATIONAL STRUCTURE
– Facilitator: He may be a senior supervisory officer. He
co-ordinates the works of several quality circles
through the Circle leaders.
– Circle leader: Leaders may be from lowest level
workers or Supervisors. A Circle leader organizes and
conducts Circle activities.
– Circle members: They may be staff workers. Without
circle members the programme cannot exist. They are
the lifeblood of quality circles. They should attend all
meetings as far as possible, offer suggestions and ideas,
participate actively in group process, take training
seriously with a receptive attitude. The roles of Steering
Committee, Co-0rdinator, Facilitator, Circle leader and
Circle members are well defined.

9. TYPES OF QUALITY CIRCLES
• There are different quality circle tools, namely:
• The Ishikawa or fishbone diagram - which shows
hierarchies of causes contributing to a problem
• The Pareto Chart - which analyses different causes
by frequency to illustrate the vital cause,
Process Mapping, Data gathering tools such as Check
Sheets and graphical tools such as histograms,
frequency diagrams, spot charts and pie charts

10. PROCESS OF OPERATION USED IN QUALITY CIRCLE
• The operation of
quality circles
involves a set of
sequential steps as
under:
1 . Problem
identification: Identify a
number of problems.
2 . Problem selections:
Decide the priority and
select the problem to be
taken up first.
3 . Problem Analysis:
Problem is clarified and
analyzed by basic problem
solving methods.

11. PROCESS OF OPERATION USED IN QUALITY CIRCLE
4 . Generate alternative solutions: Identify and evaluate causes
and generate number of possible alternative solutions.
5 . Select the most appropriate solution: Discuss and evaluate the
alternative solutions by comparison in terms of investment and
return from the investment. This enables to select the most
appropriate solution.
6. Prepare plan of action: Prepare plan of action for converting
the solution into reality which Includes the considerations "who,
what, when, where, why and how" of solving problems.
7. Present solution to management circle members present
solution to management fore approval.
8. Implementation of solution: The management evaluates the
recommended solution. Then it is tested and if successful,
implemented on a full scale.

12. How Can They be used in an Organization?
• Increase Productivity
• Improve Quality
• Boost Employee Morale

13. BASIC PROBLEM SOLVING TECHNIQUES
• The following
techniques are most
commonly used to
analyze and solve
work related
problems.
1. Brain storming
2 . Pareto Diagrams
3 . Cause & Effect
Analysis
4. Data Collection
5 . Data Analysis
The tools used for data analysis are :
1 Tables
2 Bar Charts
3 Histograms
4 Circle graphs
5 Line graphs
6 Scatter grams
7 Control Charts
• The Quality Circles also are expected to
develop internal leadership, reinforce worker
morale and motivation, and encourage a
strong sense of teamwork in an organization.
• A variety of benefits have been attributed to
Quality Circles, including higher quality,
improved productivity, greater upward flow
of information, broader improved worker
attitudes, job enrichment, and greater
teamwork.

14. BENEFITS AND LIMITATIONS OF QUALITY CIRCLES
• It took more than two decades for the quality control
concept to get acceptance in India, after its introduction in
Japan.
• This may be due to the differences in the industrial
context in the two countries. Japan needed it for its
survival in a competitive market.
• India had a reasonably protected, sellers market, with
consequent lethargy towards efforts to improve quality
and productivity.
• However, with the policy of liberalization of economy and
privatization of infrastructure development, contexts
changed. The concept now needs to be looked upon as a
necessity.

15. LAUNCHING QUALITY CIRCLES
The major prerequisite for initiating Quality Circles in any organization is the total
understanding of, as well as complete conviction and faith in the participative
philosophy, on the part of the top and senior management. In the absence of a
commitment from the Chief Executive to support the Quality Circle movement
totally, it would be inadvisable to seriously attempt the starting of Quality Circles.
The launching of Quality Circles involves the following steps:
1. Expose middle level executives to the concept.
2. Explain the concept to the employees and invite them to volunteer as members of
Quality Circles.
3. Nominate senior officers as facilitators.
4. Form a steering committee.
5. Arrange training of co-coordinators, facilitators in basics of Quality Circle
approach, implementation, techniques and operation. Later facilitator may
provide training to Circle leaders and Circle members.
6. A meeting should be fixed preferably one hour a week for the Quality Circle to
meet. Formally inaugurate the Quality Circle.
7. Arrange the necessary facilities for the Quality Circle meeting and its operation.

16. TRAINING
• Appropriate training for different sections of employees
needs to be imparted.
• Without a proper understanding of the real concept of
Quality Circles, both the workers and management might
look at this philosophy with suspicion.
• Each group should know beforehand the commitments and
implications involved as well as the benefit that can be
obtained from Quality Circles.
• Such training comprises of:
1. Brief orientation program me for top management.
2. Program me for middle level executives.
3. Training of facilitators.
4. Training for Circle leaders and members.

17. Problems with Quality Circles
• Inadequate Training
• Unsure of Purpose
• Not truly Voluntary
• Lack of Management Interest
• Quality Circles are not really empowered to
make decisions.

18. Problems solved by the QC in P.W.D.
of Maharashtra are as follows:
1. Eliminating delay in issuing observation memos after
inspection of site.
2. Preventing accidents on highways.
3. Reducing electricity bill in office.
4. Avoiding duplication of work.
5. Removal of encroachment from Govt. land.
6. Speeding up pot-hole filling on roads during monsoon.
7. Up keeping of service records of employees.
8. Maintaining Govt. offices clean.
9. Stream-lining reservation system of Govt. rest houses.
10. Improvement in maintenance of Govt. Hospital at
Sholapur.

19. Real World Example
• At Penn State University in 1983, a Quality
Circle was formed by Professor Hirsh field, a
Professor of East Asia History.
Selected 8 Students from a large lecture class.
Resulted in increased involvement from the class.

20. Team Exercise
• Break down into teams of 6-8 people
• Establish a leader and rules for your
Circle
• Have a brainstorming and problem-
solving session to resolve the issue on
the next slide
• A Collegiate class on Statistical
Analysis has a total enrollment of 45
people.
• Average attendance is 18 students
• The class consists mainly of lectures
• How can the professor of this class
improve the quality of this course and
increase student involvement?

21. CONCLUSION
Quality Circles are not limited to manufacturing firms
only.
They are applicable for variety of organizations where
there is scope for group based solution of work
related problems.
Quality Circles are relevant for factories, firms,
schools, hospitals, universities, research institutes,
banks, government offices etc.
The P.W.D. of Maharashtra has set an example for the
Government organizations marching on the path of
Quality Improvement.