Total Quality Management

Total Quality Management (TQM) is an organized approach for quality improvement along together with
product and service specifications to customer performance. TQM is applying to target producing these
specifications with zero defects. This makes a worthy cycle of constant improvement for production,
customer satisfaction and profits.

Total Quality Management (TQM) is not only adopted by a single person or an employee
but all employees can become involved (including top management to shop floor
management, in other words total or complete involvement, hence, Total) for the
continuous improvement of the production of goods and services within the framework of
organizations to strive for excellence in everything they do to achieve best quality
standards ( customer satisfaction to the quality, hence, Quality) by it's integrated well-
managed (quality can and must be managed with best practiced system or tools hence, Management) system
of various best practiced principles, methods. In other words, it is a combination of quality and management
tools intended for maximizing business, profits and cut down inefficient applications.

Total Quality Management (TQM) tracked on in the United States in the early 1980s when Hewlett-Packard
condemned U.S. chip manufacturers for weak product quality with measure it to with their Japanese
competitors. It is light hearted that when W. Edward Deming first commenced TQM the Japanese accepted
the philosophy while the U.S. rejected its ideology. During those periods Japanese made progress by
adopting TQM with improvement in quality and production. Up till in 1995, ten years after Hewlett-
Packard's sudden introducing TQM to the U.S., domestic companies are still stressed to use of TQM.

The need of TQM

In fact earlier the concept of "mass production" was existed in which whatever goods produced became
demanded in market i.e. market trend of 'sales oriented' or 'product oriented', here a manufacturer known as
king , but completely the opposite scenario is seen today , the market is became "customer oriented" or
'demand oriented' where customer became a king. So, it is obvious to cope up with the various products
demand with the great satisfaction of products, ease of delivery and competitive pricing, manufacturers must
have to make continuous changes.

So it requires management to access

Assess consumer requirement needs

. Identify present and future consumer requirement
. Design products and services that cost-effectively to match with those needs

World class quality of goods or service delivery

. Recognize the important difficult sections in the process and work on them until they reach zero-defect
levels
. Educate employees to operate the new procedure
. Increase successful measures of product and service quality
. Establish motivation supports for quality goals
. Support with a zero-defect philosophy across all actions
. Support of management to lead by example
. Build up opinion or feedback mechanisms to make continuous improvement.

Hence, to enhance productivity; lessen scrap and rework costs; make better product reliability; reduce time-
to-market cycles; reduce customer service problems; improve competitive advantage, total quality
management approach came in the role.

Hence, Total Quality Management is both a management philosophy and a set of principles that ask for
integration of all organizational functions (marketing, finance, design, engineering, and production,
customer service, etc, i.e. from top level to bottom line.) to focus on meeting customer needs and
organizational objectives.
It keeps up organization on continuous improvement by incorporating the knowledge and experiences of
workers. The simple aim of TQM is "Do the right things, right the first time, every time". TQM is
considerably variable and flexible.

Total Quality Management is also considered as a base for actions, which incorporates:

. Complete dedication by senior management and all employees

. Focus on Customer needs
. Decreasing development cycle times
. Just In Time/Demand Flow Manufacturing
. Perfection of teams
. Decreasing product and service costs
. Systems to help expansion
. Line Management possession
. Employee participation and empowerment
. Recognition
. Challenging quantified goals and benchmarking
. Concentration on method / upgrading plans
. Particular merging in strategic planning

Principles of Total Quality Management: The five key principles of TQM are as follows:

. Management Dedication
Plan (drive, direct)
Do (deploy, support, participate)
Check (review)
Act (recognize, communicate, revise)

. Employee Authorization
Training
Suggestion scheme
Measurement and recognition
Excellence teams

. Strong Decision Making

SPC (statistical process control)
DOE, FMEA
The 7 statistical tools
TOPS (FORD 8D - Team Oriented Problem Solving)

. Persistent Improvement
Systematic measurement and focus on CONQ
Excellence teams
Cross-functional process management
Attain, maintain, improve standards

. Customer Orientation
Supplier partnership
Service relationship with internal customers
Never compromise quality
Customer driven standards

Total Quality Management: The Concept of Continuous Improvement

TQM is primarily related with constant development and perfection in all work, from top level to the shop
floor. It stops from that errors or it can be prevented from various tools or measures. It direct towards
continuous improvement in the out come, in all aspects of work, as an effect of continuous improvement of
capable people, more and continuous improved processes, and technology and machine capabilities can be
achieved for zero defects.
Continuous improvement must goes not only with get better results, but further significantly with enhancing
competencies to produce better outcomes in the future. Demand initiation, supply generation, technology,
operations and people capability are the five most important areas of focus for competency improvement.
Here mistakes made by people, by any fault process can be identified and eliminated and replication can be
prevented by varying the process.

Total Quality Management process models and implementation

Initial footstep in TQM implementation is to assess the organization's present pragmatism. Appropriate
prerequisite have to carry out with the organization's history, its current needs, impetuous events leading to
TQM, and the existing employee quality of effective life conditions. Then after identifying the needs of
customer genuine requirements and quality goals appropriate systems etc are projected, further it
implemented it to from top level to bottom level.

A TQM consist of the following steps

. The company analyses the requirements of its customers,

. The company plans the activities (short-term and long-term actions) to meet these customer needs;
. The company sets up and fixed the processes requisite to provide the products and services required by the
customer;
. The company carry out such changes to further improvement in to its processes, products, and services, this
process or steps are continued put in to the practice till the zero defect results.

No two organization use TQM in exactly the same way, however, there many Quality inspection stage; from
old perception of quality management theory like Quality inspection stage, Quality control stage; Quality
assurance stage; to Total quality management stage, there are various TQM models are available, that
organizations can use. These include the Deming's Management Approach, Crosby's Quality Management
Approach, Juran's Quality Management Approach, Feigenbaum's Quality Management Approach,
Ishikawa's Quality Management Approach, Taguchi's Quality Management Approach, and the Malcolm
Baldrige Criteria for Performance Excellence, the European Foundation for Quality Management, and the
ISO quality management standards etc.
 The orientations of TQM are as follows

Customer: TQM's most important section of focus is customer; all the actions are designed according to
customer satisfaction

People (Top level to shop floor level): Participation of all in accomplishing customer attentiveness is a key
principle of TQM. This is accomplished through Teamwork, Voluntary Activities, Consensus Building,
Training, Multi-skilling, Instilling a Sense of Pride, Employee Empowerment and Leadership development.
TQM establishes a contented and well-off environment where all employees are have job satisfaction and
are capable to make use of their potential and realize their future prospective.

Process: Highest consideration paid to the process, for producing the product first time right. Problems
stumble upon are analyzed, a result is accustomed through teamwork, an action plan is built-up and the
executed results are evaluated. The entire process should be made with customer requirement in to focus.

Continuous Improvement: TQM involves a better process thinking approach. It recognizes that everything
done at all level is part of a process not any extra burden, it also includes how well each part of the process
works and the relationship of each part to the process for constant perfection, e.g. The Plan-Do-Check-Act
cycle is a continuous quest of quality, which is firmly driven in TQM. According to the need, a variety of
methods are implemented for TQM, such as,

. Management Methods: Benchmarking, Pokayoke (Error Proofing), ISO 9000, JIT (Just-in-time),
KAIZEN, Quality function Deployment, Total Productive maintenance, Business Process reengineering,
benchmarking, 5s housekeeping, Seven Quality Tools etc.
. Analytical Methods: Cause & Effect analysis, Stratification, Taguchi Methods etc.
. Data Collection, Analysis & Display: Bar Charts, Flow charts, Pie chart etc.

Total Quality Management Practice

By adopting the total quality management programme in the organization, it builds strong employee
commitment towards organization, improves work culture, improves quality of the product, hence the great
retained satisfied customer achievement. The total quality programme varies from organization to
organization and industry to industry. Even Total Quality Management is also applicable to academic
institutions, construction industry, financial services, and advertising agencies for design, software
companies, and library or even in any service industry. Total Quality Management is a never-ending practice
rather than a goal; it sets out to change its corporate culture. Here the entire employee involved with it, it is
'Everyone's Job'.

Edwards Deming's 14 points for quality improvement

1. "Generate steadiness of purpose towards development". Substitute short-term effect with long-term
planning.

2."Accept the new philosophy". The connotation is that management should really accept his philosophy,
rather than just be expecting the workforce to do so.

3."Stop dependence on inspection". If disparity is trim down, there is no need to check manufactured items
for defects, because there won't be any.

4."Progress towards a single supplier for any one item." Various suppliers mean difference between
feedstock.

5."Make better persistently and everlastingly". Persistently strive to reduce variation.

6."Introduce exercise on the job". If people are insufficiently trained, they will not all work the same way,
and this will bring in dissimilarity.

7."Set up leadership". Deming build a division between leadership and mere supervision. The latter is
allocation and target-based.

8."Push out fear". Deming observe management by fear as contradict constructive in the long term, because
it put off workers from performing in the organization's best benefit.

9."Break down obstacle between sections". A further idea central to TQM is the perception of the 'internal
customer', that each department works not the management, but the other departments that use its
productivity.

10."Get rid of slogans". One more vital TQM impression is that it's not people who make most faults; it's the
process they are operational within.
11."Get rid of management by objectives". Deming saw production objectives as promising the delivery of
poor-quality goods.

12."Eliminate barriers to pride of workmanship". Many of the other problems outlined decrease worker
fulfillment.

13."Introduce education and self-improvement".

14."The revolution is everyone's job".

It can be concluded that the principles discussed are key in ensuring the success of TQM in an organization
and that the supervisor is a huge part in developing these elements in the work place. Without these
elements, the business entities cannot be successful TQM implementers. It is very clear from the above
discussion that TQM without involving integrity, ethics and trust would be a great remiss, in fact it would be
incomplete. Training is the key by which the organization creates a TQM environment. Leadership and
teamwork go hand in hand. Lack of communication between departments, supervisors and employees create
a burden on the whole TQM process. Last but not the least; recognition should be given to people who
contributed to the overall completed task. Hence, lead by example, train employees to provide a quality
product, create an environment where there is no fear to share knowledge, and give credit where credit is
due is the motto of a successful TQM organization.
The Concept of Zero Defects in Quality Management
Zero Defects, a term coined by Mr. Philip Crosby in his book “Absolutes of Quality Management” has
emerged as a popular and highly-regarded concept in quality management – so much so that Six Sigma is
adopting it as one of its major theories. Unfortunately, the concept has also faced a fair degree of criticism,
with some arguing that a state of zero defects simply cannot exist. Others have worked hard to prove the
naysayers wrong, pointing out that “zero defects” in quality management doesn’t literally mean perfection,
but rather refers to a state where waste is eliminated and defects are reduced. It means ensuring the highest
quality standards in projects.
What Do We Mean by Zero Defects?
From a literal standpoint, it’s pretty obvious that attaining zero defects is technically not possible in any
sizable or complex manufacturing project. According to the Six Sigma standard, the definition of zero
defects is defined as 3.4 defects per million opportunities (DPMO), allowing for a 1.5-sigma process shift.
The zero defects concept should pragmatically be viewed as a quest for perfection in order to improve
quality in the development or manufacturing process. True perfection might not be achievable but at least
the quest will push quality and improvements to a point that is acceptable under even the most stringent
metrics.
Check out our course on Introduction to Certified Lean Six Sigma Green Belt Certification Training.
Zero Defects – The Theory and Implementation
Zero defects theory ensures that there is no waste existing in a project. Waste refers to all unproductive
processes, tools, employees and so on. Anything that is unproductive and does not add value to a project
should be eliminated, called the process of elimination of waste. Eliminating waste creates a process of
improvement and correspondingly lowers costs. Common with the zero defects theory is the concept of
“doing it right the first time” to avoid costly and time-consuming fixes later in the project management
process.
Zero defects theory is based on four elements for implementation in real projects.
1. Quality is a state of assurance to requirements. Therefore, zero defects in a project means fulfilling
requirements at that point in time.
2. Right the first time. Quality should be integrated into the process from the beginning, rather than solving
problems at a later stage.
3. Quality is measured in financial terms. One needs to judge waste, production and revenue in terms of
budgetary impact.
4. Performance should be judged by the accepted standards, as close to perfection as possible.
Zero Defects – Pros and Cons
The clear advantage of achieving a zero defect level is waste and cost reduction when building products to
customer specifications. Zero defects means higher customer satisfaction and improved customer loyalty,
which invariably leads to better sales and profits.
Nonetheless, a zero defects goal could lead to a scenario where a team is striving for a perfect process that
cannot realistically be met. The time and resources dedicated to reaching zero defects may negatively impact
performance and put a strain on employee morale and satisfaction. There can also be negative implications
when you consider the full supply chain with other manufacturers that might have a different definition of
zero defects.

In the end, the quest for zero defects is an admirable objective in itself, and most companies find that the
pros outweigh the cons. By striving for stringent but accepted standards of defects, companies can build
better processes and create an environment of continuous service improvement.
 QUALITY CIRCLE
Quality Circle is a small group of employees in the same work-area or doing a similar types of works
who voluntarily meet regularly for about an hour every week to identify, analyze and resolve works – related
problems, leading to improvement in their total performance and enrichment of their work-life.
The above definition reveals the following features of Quality Circles:
1. Small group of employees: Experience has shown that the optimum number of members in quality circles is
about 8 to 10. The philosophy behind small groups is it should allow every member to actively participate
and that fairly grade number ‘minimize of employees should be present for the meetings.
2. In the same work-area or doing similar type of works: Quality circle is a homogeneous group and not the
inter-departmental group. Designation of members need not necessarily be equal but the work in which they
all are engaged should be common.
3. Voluntarily: (Quality circle is not adopted practice but voluntary in nature. Employees join Quality Circles
on their own.
4. Meet regularly for about in hour every week: Normally, Quality Circles should meet for about an hour every
week which would help the members to identify and resolve problems as and when they occur.
5. To identify, analyze and resolve work-related problems: The accepted theory is Unit the worker/employees
who do the works day after day better know the problems limiting the excellence. The problems are
identified by the members themselves by brainstorming and also on the request from management and other
departments. The problems are then arranged priority wise to tackle them in a systematic manner.
6. Leading to improvement in their total performance: As the Quality Circle resolves the problem relating to
quality, cost-reduction, safety etc. the total performance of the work-area goes up.
7. Enrichment of their work-life: Quality Circle enriches the quality of work-life. It also helps employees
change attitudes and learn team culture.

The concept of Quality Circle is primarily based upon recognition of the value of the worker as a human
being, as someone who willingly activises 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:
1) Quality Circle is a form of participation management.
2) Quality Circle is a human resource development technique.
3) Quality Circle is a problem solving technique.

Quality circle. It’s Composition?

- It’s a small group comprising of 6 to 12 employees doing similar work

- They meet together voluntarily on a regular basis for identifying improvements in their respective work
areas.
- Their aim to achieve and so also to sustain excellence towards mutual upliftment of employees as well as
the organization.
Undercurrent of Quality Circle:-
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.
History of Quality Circle
Quality circles were originally associated with Japanese management and manufacturing techniques. The
introduction of quality circles in Japan in the postwar years was inspired by the lectures of W. Edwards
Deming (1900-1993), a statistician for the U.S. government. Deming based his proposals on the experience
of U.S. firms operating under wartime industrial standards. Noting that American management had typically
given line managers and engineers about 85 percent of the responsibility for quality control and line workers
only about 15 percent, Deming argued that these shares should be reversed. He suggested redesigning
production processes to more fully account for quality control, and continuously educating all employees in
a firm—from the top down—in quality control techniques and statistical control technologies. Quality
circles were the means by which this continuous education was to take place for production workers.

Quality Circles (India)

1980: BHEL, Hyderabad first in India to start Quality Circles
1982: Quality Circle Forum of India (QCFI) was founded
1983: Tata Motors (formerly Telco) started Quality Circles, by 1985 they had more than 400 Circles
1985: BHEL had 1411 Circles covering around 13362 members
Objectives of Quality Circles
 Promote job involvement
 Create problem solving capability
  Improve communication
 Promote leadership qualities
 Promote personal development
 Develop a greater awareness for cleanliness
 Develop greater awareness for safety
 Improve morale through closer identity of employee objectives
 Reduce errors.
 Enhance quality
 Inspire more effective team work
 Build an attitude of problem prevention
 Promote cost reduction
 Develop harmonious manager, supervisor and worker relationship
 Improve productivity
 Reduce downtime of machines and equipment
 Increase employee motivation
Other Names of Quality Circles
 Small Groups
 Action Circles
 Excellence Circles
 Human Resources Circles
 Productivity Circles
What Quality Circles are Not? (Misconcepts)
Quality Circles do not tackle just quality problems.
 Quality Circle is not a substitute or replacement for task forces, product committees, joint plant councils
or works committees, quality assurance department, suggestion schemes.
 Quality Circles do not change the existing organizational structure or the chain of command.
 Quality Circles are not a forum for grievances or a spring board for demands.
 Quality Circles are not a means for the management to unload all their problems.
 Quality Circles are not just another techniques.
 Quality Circles are not a panacea for all ills.
Quality Circle Meetings
 Meetings are important part of quality circle's working.
 Meetings are attended by all the members of the quality circle.
 In general, meetings take place once a week or once in a fortnight.
 Each meeting lasts for approximately one hour, though variations are possible.
 Apart from the frequency of the meetings, what is important is the regularity of the meetings.
What Takes Place during Quality Circle Meetings?
Any of the several activities may occur during a meeting such as:
Identifying a theme or a problem to work on.
 Getting training as required to enable members to analyze problems.
 Analyzing problem(s).
 Preparing recommendations for implementing solution(s).
 Follow up of implementation of suggestions.
 Prepare for a presentation to the management.
Areas of interest to quality circle
 Quality improvement.
 Efficiency improvement in service organization.
 Cost reduction.
 Process control during manufacturing.
 Safety in materials handling and equipment operations.
 Equipment and manpower utilization.
 Reduction in work in progress.
 Job improvement.
 Reduction in machine maintenance problems
 Reduction in human errors.
Why Quality Circle
It is said that 95% of the problems in workshops can be solved through Quality circle control tools.
The Japanese have experienced this! The qualitycontrol tools useful for QCCs are Pareto Diagrams, Cause-
and-EffectDiagrams, Stratification, Check Sheets, Histograms, Scatter Diagrams, Graphs and Control
Charts. Also, logical thinking and experience are amust for solving problems.
Therefore the main objectives of QC are:
 To improve quality and productivity.
 To reduce the cost of products or services by waste reduction, safety, effective utilization of resources,
avoiding unnecessary errors and defects.
 To identify and solve work-related problems and interfere with production as a team
 To tap the creative intelligence of people working in the org. and make full use of human resources.
 To improve communication within the organization.
 To improve employees loyalty and commitment to the organization and its goals. (Promoting Morale of
employees)
 To build a happy, bright, meaningful work environment.
 To satisfy the human needs of recognition, achievement and self Development
Structure of Quality Circles Program
Six Basic Elements
Top management.
1. Steering Committee
2. Facilitators
3. Leaders
Members.
Non members

ROLES AND RESPONSIBILITIES OF VARIOUS ELEMENTS

Roles of top management
 The success of the quality circles depends solely on the attitude of the Top management and plays an
important role to ensure the success of implementation of quality circles in the organization.
Roles of Steering Committee (Management)
 Formally announce the launching of quality circle initiative in the organization.
 Provide full support and encouragement to quality circle movement in the organization.
 Provide leadership and guidance to develop the quality circle models, structure and policies.
 Design the opportunities for presentations by the quality circles.
 Facilitate the approval and implementation of the solutions presented by quality circles.
 Sanction the necessary monetary budgets for smooth working of quality circles.
 Provide the logistic support as needed (presentation venues, meeting rooms, time, finance, training
facilities etc).
 Plan out and execute various training programs for the existing and prospective quality circle facilitators,
leaders and members.
 Give due recognition to quality circles, their members and their work by way of prizes, felicitations and
other means.
 Develop guidelines for measuring the effectiveness of quality circles and also the quality circle initiative
as a whole.
 Review the performance and progress of quality circles periodically.
Roles of Facilitators
 Act as an effective link between the quality circles and the management.
 Coordinate the work of several quality circles through their respective leaders.
 Act as a resource person for the quality circles being facilitated.
 Arrange for obtaining necessary expertise from other agencies and quality circles.
 Keep the motivation and morale level of all the leaders and members at the highest level.
 Review the progress of each circle periodically and lead them appropriately.
 Continually update the knowledge and skills pertaining to the working of quality circles by studying the
relevant literature and attending the training programs.
 Transfer the knowledge and skills to the leaders and the members.
 Arrange for additional training to the leaders and members as required.
 Arrange for necessary monetary budgets and keep the required records.
 Facilitate and guide the quality circle leaders and members to make the management presentations.
Roles of Leaders
 Decide date and time of each quality circle meeting and inform to all the members.
 Ensure maximum attendance of all the members in the meetings.
 Conduct the meetings effectively.
 Motivate the members for their full participation in the proceedings of quality circle meetings and
related activities.
 Facilitate the members in data collection.
 Maintain the records of quality circles meetings and other related activities.
 Interact with other quality circle leaders.
 Interact with the quality circle facilitator frequently.
 Make presentations of solutions to the management. Involve the members in making the presentations.
 Seek management approvals of the solutions.
 Ensure implementation of the approved solutions with the active involvement of the members.
 Arrange first time training and later on, the refresher training of the members and self in the quality
circles group process, tools and techniques.
Roles of Members
 Focus on organizational objectives through the theme(s) selected for one's quality circle
 Theme/problem should be related to work.
 Do not bring in the personal issues or problems as the themes of quality circles;
 Demonstrate mutual respect.
 Take training in all the aspects of quality circles.
 Acquire the necessary skills in various quality circle tools and techniques.
 Participate wholeheartedly in problem-solving process by giving ideas and views voluntarily and
suggesting the solutions.
 Attend all the meetings of quality circle. When unavoidable to attend the meeting, seek prior permission
of the quality circle leader.
 Participate in implementing the finalized solutions.
How to implement quality circle
Firstly, the management is informed about the quality control circle process that is being planned.
 A committee is formed, and key persons such as a coordinator in-house coach are selected.

 The scope is defined, and areas of application identified.

 First-line supervisors in the identified areas are given QCC presentations. It is important to make these
impressive, and valuable tips on the subject are available.
 This is followed up with extensive training for coordinators and middle management on the process and
their roles.
 Employees are invited to become members of a circle, and trained suitably once they sign up. Thus, a
circle is formed and begins work. These may give rise to other circles.
 Problems are discussed and solved in a systematic manner in the QCCs. It is very important that
solutions are implemented as quickly as possible, to maintain the momentum.
Usually QCC programs must operate in all sections of the company i.e., in the offices, service operations
and manufacturing. But remember, while the size of the company is not important to a program's success,
the following factors certainly are:
Voluntary participation.
 Management support.
 Employee empowerment.
 Training programs.
 Team work.
 Problem solving skills.
Process of Operation of Quality Circles

PDCA CYCLE

How Do Quality Circles Operate?

 Appointment of a steering committee, facilitator and QC team leaders.
  Formation of QCs by nomination/voluntary enrolment of QC members.
 Training of all QC members (by an expert consultant).
 Training of non-participating employees (by an expert consultant).
 Problem data bank and identification of problems for QC work.
 QC problem resolution by QCs through standardized techniques.
 Presentation of QC solutions to management.
 Evaluation of award/recognition.
Stages of Adoption
The quality circles programme has to be introduced very cautiously with care. So, that it can receive the
acceptability and appreciation of one and all.
 This program can be adopted in the following stages :-
1. EVALUATION OF FEASIBILITY.
2. GENERAL AWARENESS PROGRAMMES
3. PLANNING AND ORGANISATION OF CIRCLES.
4. ORIENTATION OF FACILITATORS AND LEADERS.
5. ADOPTATION OF CIRCLES.
6. MONITORING AND REVIEW OF ACTIVITIES
EVALUATION OF FEASIBILITY
 A study of the organization is first necessary to understand its culture and general health, so as to
determine the practical feasibility of introducing circles.
 It is advisable to call in an outside consultant or agency to carry out the evaluation in an unbiased
manner.
GENERAL AWARENESS PROGRAMMES
 Before circles can be started, people in the introducing this idea at all levels have to make aware about it.
 This awareness exercise may consist of informal discussions in suitable groups, talks to large gatherings,
seminars, distribution of brochures and publicity literature on QCs, prepared in the local languages of
workers, slide shows, video shows and films.
PLANNING AND ORGANISATION OF CIRCLES
 Having created the necessary awareness amongst all personnel, the areas in which circles are to be
immediately formed are decided and accordingly, leaders and facilitators are chosen and a steering
committee is formed.
 It should be made explicitly clear that circles are not substitutes for the task, plant council or suggestion
scheme.
 They are voluntary not management inspired or management nominated.
ORIENTATION OF FACILITATORS AND LEADERS
 It is necessary to impart suitable guidelines to facilitators and instructions and training to leaders
regarding the operation of circles.
 This can be arranged in groups either by the experienced and senior staff of the company or by an
outside consultant.
ADOPTION OF CIRCLES
 The leader of the circles can informally discuss the probable points or problems to be taken up and
prepare the agenda in advance. Efforts should be made to select and discuss such problems which can
bring out the innovative ability and potential capacity of workers.
 All required help in the form of data, documents, reports, assistance for analytical study by other
knowledgeable staff or training inputs from outside experts should be made available to circles as per
their requirements
MONITORING AND REVIEW OF ACTIVITIES
 The suggestions and recommendations given by the QC from time to time, have to be studied and
appropriate actions taken for their speedy implementation.
 It has to be ensured that QC once started, function smoothly and perform well for which cooperation
from all concerned must be available.
Problem Solving Tools and Techniques Used by Quality Circles
Given below are the most commonly used tools and techniques. These are called the old QC tools:
Brainstorming.
 Pareto analysis.
 Cause and effect diagram (or fish bone diagram or Ishikawa diagram).
 Histogram.
 Scatter diagram
 Stratification
 Check sheet
 Control charts and graphs
Explanation:
Brainstorming:-
Brainstorming is a group creativity technique by which a group tries to find a solution for a specific
problem by gathering a list of ideas spontaneously contributed by its members. Brainstorming was
developed and coined by Alex Faickney Osborn in 1953 through the book Applied Imagination. In the book,
Osborn not only proposed the brainstorming method but also established effective rules for hosting
brainstorming sessions.
Brainstorming has become a popular group technique and has aroused attention in academia.
Multiple studies have been conducted to test Osborn’s postulation that brainstorming is more effective than
individuals working alone in generating ideas. Some researchers have concluded that the statement is false
(brainstorming is not effective), while others uncovered flaws in the research and determined that the results
are inconclusive. Furthermore, researchers have made modifications or proposed variations of brainstorming
in an attempt to improve the productivity of brainstorming. However, there is no empirical evidence to
indicate that any variation is more effective than the original technique.
Nonetheless, brainstorming can be of great utility when the group accounts for, and works to
minimize, the group processes that decrease its effectiveness.
There are four basic rules in brainstorming (Osborn, 1963) intended to reduce social inhibitions among team
members, stimulate idea generation, and increase overall creativity:
o No criticism: Criticism of ideas are withheld during the brainstorming session as the purpose is on
generating varied and unusual ideals and extending or adding to these ideas. Criticism is reserved for
the evaluation stage of the the process. This allows the members to feel comfortable with the idea of
generating unusual ideas.
o Welcome unusual ideas: Unusual ideas are welcomed as it is normally easier to "tame down" than
to "tame up" as new ways of thinking and looking at the world may provide better solutions.
o Quantity Wanted: The greater the number of ideas generated, the greater the chance of producing a
radical and effective solution.
o Combine and improve ideas: Not only are a variety of ideals wanted, but also ways to combine
ideas in order to make them better.
PARETO ANALYSIS:-
Pareto analysis is a statistical technique in decision making that is used for selection of a limited
number of tasks that produce significant overall effect. It uses the Pareto principle – the idea that by doing
20% of work, 80% of the advantage of doing the entire job can be generated. Or in terms of quality
improvement, a large majority of problems (80%) are produced by a few key causes (20%).
Pareto analysis is a formal technique useful where many possible courses of action are competing for
attention. In essence, the problem-solver estimates the benefit delivered by each action, then selects a
number of the most effective actions that deliver a total benefit reasonably close to the maximal possible one
Pareto analysis is a creative way of looking at causes of problems because it helps stimulate thinking and
organize thoughts. However, it can be limited by its exclusion of possibly important problems which may be
small initially, but which grow with time. It should be combined with other analytical tools such as failure
mode and effects analysis and fault tree analysis for example.
This technique helps to identify the top 20% of causes that need to be addressed to resolve the 80% of the
problems. Once the top 20% of the causes are identified, then tools like the Ishikawa diagram or Fish-bone
Analysis can be used to identify the root causes of the problems.
The application of the Pareto analysis in risk management allows management to focus on the 20% of the
risks that have the most impact on the project.
Steps to identify the important causes using Pareto analysis
 Step 1: Form an explicit table listing the causes and their frequency as a percentage.
 Step 2: Arrange the rows in the decreasing order of importance of the causes (i.e., the most important
cause first)
 Step 3: Add a cumulative percentage column to the table
 Step 4: Plot with causes on x- and cumulative percentage on y-axis
 Step 5: Join the above points to form a curve
 Step 6: Plot (on the same graph) a bar graph with causes on x- and percent frequency on y-axis
 Step 7: Draw line at 80% on y-axis parallel to x-axis. Then drop the line at the point of intersection with
the curve on x-axis. This point on the x-axis separates the important causes (on the left) and trivial
causes (on the right)
 Step 8: Explicitly review the chart to ensure that at least 80% of the causes are captured
Ishikawa diagrams:
Ishikawa diagrams (also called fishbone diagrams, or herringbone diagrams , cause-and-effect
diagrams, or Fishikawa) are causal diagrams that show the causes of a specific event -- created by Kaoru
Ishikawa (1990).[1] Common uses of the Ishikawa diagram are product design and quality defect
prevention, to identify potential factors causing an overall effect. Each cause or reason for imperfection is a
source of variation. Causes are usually grouped into major categories to identify these sources of variation.
The categories typically include:
 People: Anyone involved with the process
 Methods: How the process is performed and the specific requirements for doing it, such as policies,
procedures, rules, regulations and laws
 Machines: Any equipment, computers, tools etc. required to accomplish the job
 Materials: Raw materials, parts, pens, paper, etc. used to produce the final product
 Measurements: Data generated from the process that are used to evaluate its quality
 Environment: The conditions, such as location, time, temperature, and culture in which the process
operates
Ishikawa diagrams were proposed by Kaoru Ishikawa in the 1960s, who pioneered quality management
processes in the Kawasaki shipyards, and in the process became one of the founding fathers of modern
management.
It was first used in the 1940s, and is considered one of the seven basic tools of quality control. It is known as
a fishbone diagram because of its shape, similar to the side view of a fish skeleton.
Cause and effect diagram (or fish bone diagram or Ishikawa diagram):-
This diagram represents the relationship between some “effect” and all the possible “causes.”
 The major causes might be summarized under categories referred to as People, Methods, Materials,
Procedures, Machinery, Environment, and/or Policies. However, a QC may use any major category that
emerges or helps people think creatively.
 From this well-defined list of possible causes, the most likely are identified and selected for further
analysis.
 When examining each cause, look for things that have changed, deviations from the norm or patterns.
For each cause, ask, Why does it happen?” and list the responses as branches off the major causes. This
way, a QC looks for causes that appear repeatedly, and reach a team consensus.
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FEATURES OF SIX SIGMA
 Six Sigma's aim is to eliminate waste and inefficiency, thereby increasing customer satisfaction by
delivering what the customer is expecting.
 Six Sigma follows a structured methodology, and has defined roles for the participants.
 Six Sigma is a data driven methodology, and requires accurate data collection for the processes being
analyzed.
 Six Sigma is about putting results on Financial Statements.
 Six Sigma is a business-driven, multi-dimensional structured approach for:
o Improving Processes
o Lowering Defects
o Reducing process variability
o Reducing costs
o Increasing customer satisfaction
o Increased profits
The word Sigma is a statistical term that measures how far a given process deviates from perfection.
The central idea behind Six Sigma: If you can measure how many "defects" you have in a process, you can
systematically figure out how to eliminate them and get as close to "zero defects" as possible and
specifically it means a failure rate of 3.4 parts per million or 99.9997% perfect.
KEY CONCEPTS OF SIX SIGMA
At its core, Six Sigma revolves around a few key concepts.
 Critical to Quality : Attributes most important to the customer.
 Defect : Failing to deliver what the customer wants.
 Process Capability : What your process can deliver.
 Variation : What the customer sees and feels.
 Stable Operations : Ensuring consistent, predictable processes to improve what the customer sees
and feels.
 Design for Six Sigma : Designing to meet customer needs and process capability.
Our Customers Feel the Variance, Not the Mean. So Six Sigma focuses first on reducing process variation
and then on improving the process capability.
MYTHS ABOUT SIX SIGMA
There are several myths and misunderstandings surrounding Six Sigma. Some of them few are given below:
 Six Sigma is only concerned with reducing defects.
 Six Sigma is a process for production or engineering.
 Six Sigma cannot be applied to engineering activities.
 Six Sigma uses difficult-to-understand statistics.
 Six Sigma is just training.
BENEFITS OF SIX SIGMA
Six Sigma offers six major benefits that attract companies:
 Generates sustained success
 Sets a performance goal for everyone
 Enhances value to customers
 Accelerates the rate of improvement
 Promotes learning and cross-pollination
 Executes strategic change
ORIGIN OF SIX SIGMA
 Six Sigma originated at Motorola in the early 1980s, in response to achieving 10X reduction in
product-failure levels in 5 years.
 Engineer Bill Smith invented Six Sigma, but died of a heart attack in the Motorola cafeteria in 1993,
never knowing the scope of the craze and controversy he had touched off.
 Six Sigma is based on various quality management theories (e.g. Deming's 14 point for management,
Juran's 10 steps on achieving quality).
THERE ARE THREE KEY ELEMENTS OF SIX SIGMA PROCESS IMPROVEMENT:
 Customers
 Processes
 Employees
THE CUSTOMERS:
Customers define quality. They expect performance, reliability, competitive prices, on-time delivery,
service, clear and correct transaction processing and more. This means it is important to provide what the
customers need to gain customer delight.
THE PROCESSES:
Defining processes as well as defining their metrics and measures is the central aspect of Six Sigma.
In a business, the quality should be looked form the customer's perspective and so we must look at a defined
process from the outside-in.
By understanding the transaction lifecycle from the customer's needs and processes, we can discover
what they are seeing and feeling. This gives a chance to identify weak areas with in a process and then we
can improve them.
THE EMPLOYEES
A company must involve all its employees in the Six Sigma program. Company must provide
opportunities and incentives for employees to focus their talents and ability to satisfy customers.
It is important to Six Sigma that all the team members should have a well-defined role with measurable
objectives.
 Under a Six Sigma program, the members of an organization are assigned specific roles to play, each
with a title. This highly structured format is necessary in order to implement Six Sigma throughout the
organization.
There are seven specific responsibilities or "role areas" in a Six Sigma program, which are as
follows.
LEADERSHIP
A leadership team or council defines the goals and objectives in the Six Sigma process. Just as a
corporate leader sets a tone and course to achieve an objective, the Six Sigma council sets the goals to be
met by the team. Here is the list of leadership Council Responsibilities:
 Defines the purpose of the Six Sigma program
 Explains how the result is going to benefit the customer
 Sets a schedule for work and interim deadlines
 Develops a mean for review and oversight
 Support team members and defend established positions
SPONSOR
Six Sigma sponsors are high-level individuals who understand Six Sigma and are committed to its
success. The individual in the sponsor role acts as a problem solver for the ongoing Six Sigma project. Six
Sigma is generally led by a full-time, high-level champion, such as an Executive Vice President.
Sponsors are the owners of processes and systems, who help initiate and coordinate Six Sigma
improvement activities in their areas of responsibilities.
IMPLEMENTATION LEADER
The person responsible for supervising the Six Sigma team effort, who supports the leadership
council by ensuring that the work of the team is completed in the desired manner, is the implementation
Leader.
Ensuring success of the implementation plan and solving problems as they arise, training as needed, and
assisting sponsors in motivating the team are some of the key responsibilities of an implementation leader.
COACH
Coach is a Six Sigma expert or consultant who sets a schedule, defines result of a project, and who
mediates conflict, or deals with resistance to the program.
Duties include working as a go-between for sponsor and leadership, scheduling the work of the team,
identifying and defining the desired results of the project, mediating disagreements, conflicts, and resistance
to the program and identifying success as it occurs.
TEAM LEADER
It is an individual responsible for overseeing the work of the team and for acting as a go-between
with the sponsor and the team members.
 Responsibilities include communication with the sponsor in defining project goals and rationale,
picking and assisting team members and other resources, keeping the project on schedule, and keeping track
of steps in the process as they are completed.
TEAM MEMBER:
An employee who works on a Six Sigma project, given specific duties within a project, and has
deadlines to meet in reaching specific project goals.
Team members execute specific Six Sigma assignments and work with other members of the team
within a defined project schedule, to reach specifically identified goals.
PROCESS OWNER
The individual who takes on responsibility for a process after a Six Sigma team has completed its work.
EXTENDED DEFINITIONS OF ROLES BELT - COLORS
The assignment of belt colors to various roles is derived from the obvious source, the martial arts. Based on
experience and expertise following roles have evolved over the year.
NOTE : The belt names are a tool for defining levels of expertise and experience. They do not change or
replace the organizational roles in the Six Sigma process.
BLACK BELT
The person possessing this belt has achieved the highest skill level and is an experienced expert in
various techniques. As applied to the Six Sigma program, the individual designated as a Black Belt has
completed a thorough internal training program and has the experience working on several projects.
The black belt holder is usually given the role of a team leader, the person who is responsible for
execution and scheduling.
MASTER BLACK BELT
A person who deals with the team or its leadership; but is not a direct member of the team itself. This
may be equivalent to the role played by the coach, or for more technical and complex projects.
The Master Black Belt is available to answer procedural questions and to resolve the technical issues
that come up.
GREEN BELT
The Green Belt designation can also belong to the team leader or to a member of the team working
directly with the team leader.
A Green Belt is less experienced than a Black Belt but is cast in a key role within the team.