QUALITY CIRCLES By Zaipul Anwar Business & Advanced Technology Centre, Universiti Teknologi Malaysia

Overview  What are Quality Circles?  Summary of History and Practices  How Do Quality Circles Work?  How Can They be Used in an Organization?  Example and Activity  Problems with Quality Circles  Bibliography

Summary of History and Practices Quality Circles were first seen in the United States in the 1950’s Quality Circles were first seen in the United States in the 1950’s Circles were developed by Dr, Kaoru Ishikawa in Japan in the 1960’s Circles were developed by Dr, Kaoru Ishikawa in Japan in the 1960’s Circles were re-exported to the US in the early 1970’s Circles were re-exported to the US in the early 1970’s

Summary of History and Practices (continue) 1980’s brought Total Quality Management and a reduction in the use of Quality Circles 1980’s brought Total Quality Management and a reduction in the use of Quality Circles Quality Circles can be a useful tool if used properly Quality Circles can be a useful tool if used properly

Inspection (1950’s) Quality Control (1960’s) Quality Assurance (1970’s) Total Quality (1980’s) “World Class” Zero Defect, Customer Focus, Quick Response (1990’s) 2000’s ? Summary of History and Practices (continue)

What is a Quality Circle? Voluntary groups of employees who work on similar tasks or share an area of responsibility 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 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 The reduction, by their efforts, of the countless number of problems which impede the effectiveness of their work They operate on the principle that employee participation in decision-making and problem-solving improves the quality of work The reduction, by their efforts, of the countless number of problems which impede the effectiveness of their work Encourage circles to elect their own leaders towards the end of the training period Encourage circles to elect their own leaders towards the end of the training period

Frequency and duration of meetings is set by the group Frequency and duration of meetings is set by the group Circle should be autonomous in that it should select the problems that it wishes to solve QCCs useful for mutual-self-development and process control and improvement within their workshop. Circle should be autonomous in that it should select the problems that it wishes to solve QCCs useful for mutual-self-development and process control and improvement within their workshop. Utilising basic 7 QC Tools. Utilising basic 7 QC Tools. Japanese experience indicated that 95% of the problems in the workshop can be solved through 7 QC Tools Japanese experience indicated that 95% of the problems in the workshop can be solved through 7 QC Tools What is a Quality Circle? (continue)

The Japanese description of the effectiveness of a quality circle is expressed as: “It is better for one hundred people to take one step than for one person to take a hundred’

The World Turned Upside Down! CEO SNR MGT MANAGEMENT SUPERVISORS OPERATORS CONTROL COACH MASS PRODUCTIVITY / SCIENTIFIC MANAGEMENT CEO SNR MGT MANAGEMENT SUPERVISORS OPERATORS CUSTOMER FOCUSED / CONTINUOUS IMPROVEMENT

How Do Quality Circles Work? All members of a Circle need to receive training All members of a Circle need to receive training Members need to be empowered Members need to be empowered Members need to have the support of Senior Management Members need to have the support of Senior Management Characteristics Characteristics Volunteers Volunteers Set Rules and Priorities Set Rules and Priorities Decisions made by Consensus Decisions made by Consensus Use of organized approaches to Problem-Solving Use of organized approaches to Problem-Solving

Formation of Quality Circles Start on the Shop Floor Start on the Shop Floor Base Circle on Training Base Circle on Training Allow the Circle to Form Itself Allow the Circle to Form Itself Do The Training Properly Do The Training Properly Support with Information Required Support with Information Required Provide Skills and Experience Provide Skills and Experience

Requirements of Quality Circles Management Support Management Support Training Training Recognition System Recognition System

How Can They be Used in an Organization? Increase Productivity Increase Productivity Improve Quality Improve Quality Boost Employee Morale Boost Employee Morale

The Premise of Quality Circles Much of the trouble originated from the gulf between management and shop floor Much of the trouble originated from the gulf between management and shop floor Operators were frequently well aware of the cause of quality problems and, with modern standards of education, often knew how to cure them Operators were frequently well aware of the cause of quality problems and, with modern standards of education, often knew how to cure them

Team Exercise Break down into teams of 6-8 people Break down into teams of 6-8 people Establish a leader and rules for your Circle Establish a leader and rules for your Circle Have a brainstorming and problem-solving session to resolve the issue on the next slide Have a brainstorming and problem-solving session to resolve the issue on the next slide

Team Exercise A Collegiate class on Statistical Analysis has a total enrollment of 45 people. A Collegiate class on Statistical Analysis has a total enrollment of 45 people. Average attendance is 18 students Average attendance is 18 students The class consists mainly of lectures The class consists mainly of lectures How can the professor of this class improve the quality of this course and increase student involvement? How can the professor of this class improve the quality of this course and increase student involvement?

The Benefits of Quality Circles A Direct Pay-off (cost/benefits) A Direct Pay-off (cost/benefits) An Operator To Manager Dialogue (involvement, participation, communication) An Operator To Manager Dialogue (involvement, participation, communication) A Manager To Manager Dialogue (awareness) A Manager To Manager Dialogue (awareness) An Operator to Operator Dialogue (attitudes) An Operator to Operator Dialogue (attitudes) A Quality Mindedness (product quality and reliability, prevention of non-conformance) A Quality Mindedness (product quality and reliability, prevention of non-conformance) The Personal Development of the Participants The Personal Development of the Participants

Inadequate Training Inadequate Training Unsure of Purpose Unsure of Purpose Not truly Voluntary Not truly Voluntary Lack of Management Interest Lack of Management Interest Quality Circles are not really empowered to make decisions. Quality Circles are not really empowered to make decisions. Reasons for failure of Quality Circles

Reasons for failure of Quality Circles (continue) They have not had enough training They have not had enough training They have not been given sufficient autonomy They have not been given sufficient autonomy The Quality Circles have been started in isolation and not part of a wider programme of Company-wide Continuous Improvement The Quality Circles have been started in isolation and not part of a wider programme of Company-wide Continuous Improvement

Bibliography Cole, Robert E Managing Quality Fads: How American Business Learned to Play the Quality Game. New York, NY: Oxford Press. Cole, Robert E Managing Quality Fads: How American Business Learned to Play the Quality Game. New York, NY: Oxford Press. Aubrey, Charles A Teamwork: Involving People in Quality and Productivity Improvement. Milwaukee, WI: Quality Press. Aubrey, Charles A Teamwork: Involving People in Quality and Productivity Improvement. Milwaukee, WI: Quality Press. Foster, S. Thomas Managing Quality: An Integrative Approach. Upper Saddle River, NJ: Prentice Hall. Author Unknown Quality Circles in the Community College [online]. Available online via Foster, S. Thomas Managing Quality: An Integrative Approach. Upper Saddle River, NJ: Prentice Hall. Author Unknown Quality Circles in the Community College [online]. Available online via Author Unknown Kaizen and Quality Circles [online]. Available online via Author Unknown Kaizen and Quality Circles [online]. Available online via

QUALITY IMPROVEMENT TEAMS

Team formed where there is a specific problem whose solution is unlikely to reside in a single department and which is large enough to justify the establishment of a team to resolve the problem Team formed where there is a specific problem whose solution is unlikely to reside in a single department and which is large enough to justify the establishment of a team to resolve the problem For example (the combined actions of Production, Testing, Technical Departments as well as the Supplier for persistent equipment breakdown) For example (the combined actions of Production, Testing, Technical Departments as well as the Supplier for persistent equipment breakdown)

CHARACTERISTICS OF QITS Set up by management Set up by management Inter-departmental Inter-departmental Group is usually formed to resolve a problem identified by others Group is usually formed to resolve a problem identified by others Team is usually disbanded once the problem solved Team is usually disbanded once the problem solved

BENEFITS OF QITS Break Down Inter-Departmental Barriers Break Down Inter-Departmental Barriers QIT process is part of team building and ownership of the problem QIT process is part of team building and ownership of the problem Solutions Are More Global In Concept Solutions Are More Global In Concept optimised for corporate rather than departmental goals optimised for corporate rather than departmental goals Improved Communications Improved Communications solutions are sought for the corporate good rather than to shift blame solutions are sought for the corporate good rather than to shift blame Improved Problem Solving Improved Problem Solving create a degree of mobile expertise in problem solving within the company create a degree of mobile expertise in problem solving within the company

THE QIT PROCESS Adequate training in appropriate skills must be provided before the QIT starts work Adequate training in appropriate skills must be provided before the QIT starts work To deny the team the problem-solving tools it needs to carry out the task is inviting failure which will affect not only the issue under consideration but the credibility of the QIT process itself To deny the team the problem-solving tools it needs to carry out the task is inviting failure which will affect not only the issue under consideration but the credibility of the QIT process itself

THE QIT PROCESS Identify the Project And Form The Team Identify the Project And Form The Team Define The Problem Accurately Define The Problem Accurately Identify And Verify Root Causes Identify And Verify Root Causes Plan And Implement Corrective Action Plan And Implement Corrective Action Standardise And Seek Other Applications Standardise And Seek Other Applications Conduct A Review Of The Project Conduct A Review Of The Project

Thank You