A Presentation on

QUALITY CIRCLE

Submitted to: Submitted by: Dr. A. Bhardwaj Subhash Patel

(2011pme5264)

INTRODUCTION

People are the greatest assets of an organization, because, through people all other resources are converted into utilities. However, management of ‘People Resources’ has always been a vexed problem ever since the beginning of organized human activities. A number of managerial responses have been developed to answer this question.

Quality Circle -A way to Quality Improvement

Quality Circle is a small group of 6 to 12 employees doing similar work who voluntarily meet together on a regular basis to identify improvements in their respective work areas using various techniques for analyzing and solving work related problems coming in the way of achieving and sustaining excellence leading to mutual upliftment of employees as well as the organization. It is "a way of capturing the creative and innovative power that lies within the work force“

DEFINITION

After the Second World War Japanese economy was in the doldrums. Seeing this disastrous effect of war, Americans decided to help Japan in improving the quality standards of their products. General Douglas Mac Arthur who, at that time, was the commander of the occupational forces in Japan took up the task of imparting quality awareness among Japanese to help them improve their products and the reliability of manufacturing systems including men, machine and materials. Thus, by 1975, they were topping the world in quality and productivity. This astonishing and unique achievement in modern history became an eye – opener to the world. Industrialists and politicians from all over the world started visiting Japan to know how they have achieved such magical results in such a short span. The answer to this was painstaking and persevering efforts of the Japanese leaders and workers and the development and growth of the philosophy of small working groups.

GENESIS OF QUALITY CIRCLES

Characteristics of Quality Circle

• Quality circle are small primary groups of employee whose lower limit is three and upper limit twelve.

• The membership of quality circle is most voluntary .• Each circle is lead by area supervisor .• The member meet regularly every week or according to an

agreed schedule.• The circle members are specially trained in techniques of

analysis and problem solving.• The basic role of circles to identify and solve work related

problems for improving quality and productivity.• Quality circle enable their member to exercise their hidden

talents for tackling challenging tasks.

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, 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.

CONCEPT

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 DevelopmentBring out ‘Hidden Potential’ of peoplePeople get to learn additional skills.

c) Development of Team SpiritEliminate inter departmental conflicts.

d) Improved Organizational CulturePositive working environment.Higher motivational level.

OBJECTIVE

How Do Quality Circles Work?

• All members of a Circle need to receive training• Members need to be empowered• Members need to have the support of Senior

Management• Characteristics– Volunteers– Set Rules and Priorities– Decisions made by Consensus– Use of organized approaches to Problem-Solving

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

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-ordinator: He may be a Personnel or Administrative officer who co-ordinates and supervises the work of the facilitators and administers the program.

Who works for Quality Circles?

.Circle leader : Circle leader may be from lowest level supervisors. A circle leader organise and conduct circle activities.

Circle members : They may be staff workers. Without circle members the program 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.The roles of Steering Committee and Circle members are well defined.

Advantages:

• Product improvement• Customer satisfaction• efficiency savings• financial savings• improved company performance• reduced customer complaints• reduced wasted• reduced error• increased accuracy

Limitations:

• The overall productivity may decrease initially.• A large investment and time is required for a concept

that is essentially new .• The chances of error increase initially .• After circle implementation a period of confusion

may arise. This is because people experiment with new ideas , new skill and new roll.

1 Problem identification: Identify a number of problems.

2 Problem selection : 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.

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 comparisons. 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 .

PROCESS OF OPERATION

The following techniques are most commonly used to analyze and solve work related problems.

l Brain storming

l Pareto anaysis

l Cause & Effect Analysis

l Data Collection & Analysis

BASIC PROBLEM SOLVING TECHNIQUES

Inadequate TrainingUnsure of PurposeNot truly VoluntaryLack of Management InterestQuality Circles are not really empowered to make decisions

Problems with Quality Circles

Case Study

• This study was conducted by selecting a problem concerning with the material loss in workshop of University Polytechnic, AMU by forming a quality circle.

• The production involves manufacturing of crankshaft, spindle and metallic numerals in the machine and fitting shop.

• The operation involves in producing the above products comprises of various methods of manufacturing such as facing, drilling, filling, cutting, shaping, threading etc. The operations of these quality circle as given below realize the impact of quality circle.

Case Study

a) Name of the organization : Workshop, University Polytechnic, AMU,Aligarh

b) Number of circle : 01 (one)

c) Section where the circle is : Machine and fitting shop operating

d) Number of meetings held : 10 (ten)

Formation of Quality Circle

The quality circle under consideration has a leader, a facilitator, a coordinator and four members. The object of the present quality circle is ‘reduction of material wastage’. This problem was so chosen for solution because of following facts :

a) Whether there was any reduction in material wastage.

b) Whether there were any saving and financial losses that should be minimized.

c) Whether it had any effect on the working of the workers and relationship between workman and management.

Formation of Quality Circle

• There were differences in the actual and expected material consumption.

• Table 1 gives the detail of material consumption for the year 1999 to 2000, before implementation of quality circle, and

• Table 2 shows the detail of material consumption for the year 2000 to 2001 after implementing quality circle.

• After various discussion and brain storming sessions following causes related to man, machine, material and methods were located.

Table 1 Details of material consumption for the year July 15,1999 to March 31, 2000 (before implementing

quality circle)ITEAMS SPECIFICATIONS MATERIAL

CONSUMPTION PER YEAR, Kg

MATERIAL LOSS IN MACHINING

MATERIAL LOSS

EXPECTED ACTUAL Kg Rs

Mild Steel Rod

Length, mm : 50 Diameter, mm : 3Carbon, % : 0.01 Harden cold rolled

210 105 105 1785.00

Cast Iron Block

Length, mm : 50 Width, mm : 50Thickness, mm : 24Carbon, % : 2-4

135 75 60 1920.00

Mild Steel Flat

Length , mm : 75 Width, mm : 48Thickness, mm : 6

53 30 23 437.00

Total 4142.00

Table 2: Details of material consumption for the year July 15, 2000 to March 31, 2001 (after implementing

quality circle)ITEAMS SPECIFICATIONS MATERIAL

CONSUMPTION PER YEAR, Kg

MATERIAL LOSS IN MACHINING

MATERIAL LOSS

EXPECTED ACTUAL Kg Rs

Mild Steel Rod

Length, mm : 50 Diameter, mm : 31Carbon, % : 0.01-1Harden cold rolled

210 150 60 1020.00

Cast Iron Block

Length, mm : 50 Width, mm : 50Thickness, mm : 24Carbon, % : 2-4

135 105 30 960.00

Mild Steel Flat

Length , mm : 75 Width, mm : 48Thickness, mm : 6

53 45 8 152.00

Total 2132.00

Causes Related to Man

a) Lack of knowledge about the materials

b) Proper instruction not given about the work

c) The materials were cut more than the required amount

d) Lack of knowledge about the operations

e) Lack of knowledge about handling special tools

Causes Related to Machines

a) Machines not operating at optimum condition

b) Frictional wear of machine parts

c) Problem arising due to misalignment of machine components

d) Lack of implementation of new and automatic machines

Causes Related to Methods

a) No proper inspection in the machine shop after the material has been issued from the store

b) No proper care was taken in storing the materials

c) Lack of knowledge of improving the existing method of production

Causes Related to Material

a) No proper inspection of the material dimension before machining.

b) Materials obtained not having the required composition.

Table 3:Saving in the material wastage for the year 2000-2001

Material Wastage before Implementing Quality Circle, Rs

Material Wastage after ImplementingQuality Circle, Rs

Savings AmountRs 1 year

4142.00 2132.00 2010.00

DISCUSSION AND CONCLUSION

Following observation were achieved after implementation of quality circle.

• Improvement of internal personal relationship• Self-confidence was developed in solving more

complex problem related to production.• A good teamwork was achieved among the workman• Material wastage was minimized as a result heavy

monetary gain was obtained.

DISCUSSION AND CONCLUSION cont…

• Table 4 shows a percentage of contribution of various factors that led to material loss in the given order.

• The various reason or causes of each factor were determined and shown in Ishikawa diagram (Fishbone diagram).

• The causes and effect were obtained by calling various quality circle meetings (ten) through brainstorming session and discussion. And hence these factors led to the result of the present study in the following order:

Man, Machine, Method, Material

Table 4: percentage of contribution of various factors

Reason / Cause Percentage, % Cumulative, %

Man 35.5 35.5

Machine 28.6 64.3

Methods 21.4 85.7

Materials 14.3 100

CONCLUSION

• Further this quality circle approach for quality improvement in University Polytechnic workshop may bring new dimension, shifting dependence for decisions and actions towards existing system.

• This change revealed that quest for quality service is in the hand of all employees.

• The sustenance of success will lead to total quality improvement emerging as a centre of excellence of its own in any small enterprise.

Pareto diagram

Figure 3 Pie chart (effectiveness of process variable on material wastages)

Ishikawa Diagram (Fishbone Diagram)

References

• Statistical Quality Control : M.Mahajan• Impact of Quality Circle—a Case Study :By F Talib ,

M Ali• Employer-Employee Based Quality Circles in Japan:

Human Resource Policy Implications for American Firms Author(s): George Munchus, III

• Quality Circle as an Effective Management Tool :A Case Study of Indira College of Engineering & Management Library

Thank You