Topics To Be Covered

Quality Circles
High Involvement Organizations
Total Quality Management

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Quality Circle

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Quality Circle
A quality circle is a group composed of regular

employees who meet together to discuss workplace

improvement, and make presentations to management with

their ideas.

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 Philosophy of Quality Circle
The Philosophy of QCC is based on the concepts of Participative

management and Humanistic management.

Humanistic management refers to management that gives importance to

people and their feelings. This is because people are the most valuable asset of

‘a department.

Participative management means that worker regardless of his /

her position in the organization is given the opportunity to make meaningful

contribution to the department .

QCC is, therefore a mechanism whereby workers are able to participate

in the problem-solving process leading to improvement of quality and

productivity in their department .

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History of Quality Circle
 Pioneered by Japanese.
 Quality circles were first established in Japan in 1962; The
movement in Japan was coordinated by the Japanese
Union of Scientists and Engineers (JUSE)
 1962: First QC Circle was registered with QC Circle Head
Quarters in Japan.
 1974: Lockheed Company, USA started Quality Circle
movement.
 1977: International Association of Quality Circles (IACC)
was formed in USA.
 1980: BHEL (Bharat Heavy Electricals Ltd) Hyderabad first in India
to start Quality Circles.
 1982: Quality Circle Forum of India (QCFI) was founded.
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Other Names of Quality Circles
 Small Groups

Action Circles

Excellence Circles

Human Resources Circles

Productivity Circles

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Objectives of Quality Circle
The objective of QCC is to improve and upgrade quality of work

through:

a) Promote job involvement

b) Create problem solving capability

c) Improve communication

d) Team work

e) The cultivation and assimilation of positive values and work ethics

f) Involvement and interest in work

g) High motivation for work and

h) Reduce errors.

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Structure of Quality Circle
Top
Manageme
nt
Steering
committee

Co-ordinator

Facilitator

Leader

Members

Non Qc - Members
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 Roles & Responsibilities
Top Steering Co- Non-
Member
Manage committ ordinato Facilitator Leader member
s
ment ee r s

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.

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 Roles & Responsibilities
Top Steering Co- Non-
Member
Manage committ ordinato Facilitator Leader member
s
ment ee r s

Steering committee called middle management consists of chief

executive heads of different divisions or a co-ordinator plays a

positive role in quality circles activities for the success of the

efforts. The meetings are conveyed at least once in one to two months

interval.

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 Roles & Responsibilities
Top Steering Co- Non-
Member
Manage committ ordinato Facilitator Leader member
s
ment ee r s

Co-ordinator also acts as facilitators is an individual

responsible for

coordinating and directing the quality circles activities within

an organization and carries out such functions as would make
the operations of quality circles smooth, effective and self-
sustainable.

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 Roles & Responsibilities
Facilitator also acts as a catalyst, innovator, promoter and teacher and is

nominated by the management.

(i) Communicating with all levels of management and

obtaining their support and assistance;

(iii) Maintaining an open and supportive environment;

(iv) Ensuring QCC members direct their activities to

work-related problems;

(v) As a mediator in problem-solving; (in case conflict b/w QC members)

(vi) As a resource person to the Circle; and

(vii) Evaluating the costs and benefits of the QCC programe

and reporting to the Management.

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 Roles & Responsibilities
Leader of the quality circles is chosen by the members among
themselves and they may decide to have a leader by rotation since the
members are the basic elements of the structure of quality circle.

(i) Training members on problems-solving techniques with

the assistance of the facilitator where required;

(iii) Assisting the Circle members in record keeping

(iv) Conducting meetings in an orderly and effective manner;

(v) Showing interest and support to the Circle;

(vi) Encouraging other workers to become members;

(viii) Enforcing team discipline.

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 Roles & Responsibilities
Members of the quality circles are the small group of people from
the same work area or doing similar type of work whereas non-
members are
those who are not members of the quality circle but they are very important
for the implementation and success of Quality Circles.

(i) Attending meetings regularly;

(ii) Directing their efforts towards solving work-related problems;

(iii) Identifying problems, contributing ideas, undertaking research and

investigation (where necessary) and assisting the QCC in problem-

solving.

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What Quality Circles are Not? (Misconcepts)
I. Quality Circles do not tackle just quality problems.
II. Quality Circle is not a substitute or replacement for task
forces, product committees, joint plant councils or works
committees, quality assurance department, suggestion
schemes.
III. Quality Circles do not change the existing organizational
structure or the chain of command.
IV. Quality Circles are not a forum social gatherings
V. Quality Circles are not a means for the management to
unload all their problems.
VI. Quality Circles are not just another technique.
VII.Quality Circles are not a panacea for all ills.

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Pitfalls and Problems
 Lack of faith in and support to Quality Circle activities among management
personnel
 Lack of interest or incompetence of leaders/facilitator
 Delay or non-implementation of Circle recommendations
 Irregularity of Quality Circle activities
 Lack of or non-participation by some members in the Circle activities
 Circles running out of problems
 Inadequate visibility of management support
 Non-maintenance of Quality Circle records
 Language difficulty in communication
 Communication gap between Circles and departmental head
 Change of management
 Resistance from trade unions

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High-Involvement Organizations

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High-Involvement Organizations:
Employee oriented approach
Employees are given the right of power,
information, rewards and knowledge
Participation is a necessary condition of
democracy
Key Features of High-Involvement
Organizations

P.I.R.K.
Power
Information
Rewards
Knowledge & skills

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Power

Power or authority to act and make decisions about

the work in all its aspects
Information

Information about processes, quality, customer

feedback, events and business results
Rewards

Rewards on regular intervals are tied to business

results and growth in capability and contribution

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 Knowledge and skills
Interpersonal or team skills for working
together effectively
Technical knowledge and skills for
providing the service - e.g., how processes
works behinds tasks (production deptt)
Skills for engaging in multiple tasks,
especially tasks like curriculum and
monitoring
Business knowledge and skills for
managing budgets and other fiscal matters

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Relationship Between the Four
Elements
POWER w/o knowledge, info. & rewards = poor decisions

INFORMATION & KNOWLEDGE w/o power = frustration

REWARDS w/o power, knowledge & info. = frustration &

lack of motivation

INFO., KNOWLEDGE & POWER w/o rewards = low

involvement

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High Involvement
Organization Elements
Points for Brining Hio

Flat, lean organization Continuous training

structures programs
Enriched work designs Fair reward systems
Open information systems Participative designed
Sophisticated selection personnel polices
and career systems Conducive physical
layouts

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 Selection
Career System Reward
System

Information Organizational Personnel

System Structure Policies

Job Design Physical

Training Layout
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Total Quality Management

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Total Means….
Complete- 100%
In every field
In every activity
By all the employees
Always

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Total Does Not Mean….
 Less than 100%
 Not even 99.9%
 Because 99.9% quality denotes

1 hour of unsafe drinking water every month

16,000 pieces of mail lost by the U.S. Post Office every hour.
20,000 incorrect prescriptions every year
500 incorrect operations each week
50 babies dropped at birth every day
22,000 checks deducted from the wrong bank account each
hour
2 unsafe plane landings per day at O’Hare Airport in Chicago

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What is Quality?

“The quality of a product or service is a customer’s

perception of the degree to which the product or service
meets his or her expectations.”
Definition
A management approach of an organization centered
on quality based and aiming at long term success
through
customer satisfaction
benefits to the members of the organization and
 to the society.

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TQM
It is the process of individual &
organizational development the
purpose of which is to increase the
level of satisfaction of all the
stakeholders

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What Total Quality Management Is?
Understanding of TQM

Total in this context means the involvement of

everyone and everything in the organization.

Quality is total customer satisfaction.

Management means creating and maintaining the

TQM environment.
Total Quality Management
Doing things right…..

….FIRST time.

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CONTINUOUS IMPROVEMENT
Improve each and everyday - Do not focus on
problems, focus on improvements.

IF YOU’RE NOT PART OF THE SOLUTION,

YOU’RE PART OF THE PROBLEM.

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CONTINUOUS IMPROVEMENT
Customers are not interested in excuses, they’re
interested in results.
Be proactive - because if you don’t someone else
will.
Ishikawa Says The organization which does not
make a change in the 06 months is a dead
organizations
CONTINUOUS IMPROVEMENT

KAIZEN JAPANESE SYNONYM FOR CQI

THE FAMOUS HADITH “HE WAS

DESTROYED WHOSE PAST WAS NOT BETTER
THAN HIS YESTERDAY”
Measurement of Quality
Performance
Features
Reliability
Durability
Serviceability
Aesthetics
Perceived quality/Brand name
Price

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Early TQM successes…in 1990’s
Nashua
Xerox
Motorola
Intel
Dayton-Hudson
Corning
Hewlett-Packard

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Well Known TQM Gurus

Deming
Juran
Crosby
Taguchi
Shingo

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Deming’s 14 Points for Managers
1 Create a plan (for TQM); publish the aims and
purposes of the TQM
2. Adopt new techniques and methods
3. Understand the purpose of inspection ; stop
depending upon inspection
4. Use fewer suppliers, selected based on quality and
dependability instead of price
5. Install programs for continuous improvement of
costs, quality, service, and productivity

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Deming’s 14 Points for Managers
6. Train all employees on quality concepts
7 Teach and institute leadership
8. Eliminate fear, create trust, and encourage two-way
communications between workers and management
9. Eliminate barriers between departments and
encourage joint problem-solving
10. Eliminate the use of numerical goals and slogans to
make workers work harder

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Deming’s 14 Points for Managers
11. Use statistical methods for continuous improvement
of quality and productivity instead of numer. quotas
12. Optimize the efforts of teams, groups and quality
circles.
13. Encourage education and self-improvement
14. Make action to accomplish the
transformation, make it everyone's job.

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TQM Applications Stages
Gain long-term senior management commitment
Train members in quality methods
Start quality improvement projects
Measure progress
Rewarding accomplishment

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What is Sigma?

Sigma is a Greek letter.

It is a measure of variance (variation) or spread of data
about the mean or average of a process.
Sigma indicates how often defects are likely to occur.
Higher the sigma, less likely the defects will occur.

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Sigma Magnitude
2 sigma process capability means 308,538 DMPO
(defects per million opportunities)
3 sigma process capability means 66,807 DMPO (defects
per million opportunities)
4 sigma process capability means 6,210 DMPO (defects
per million business opportunities)
5 sigma process capability means 233 DMPO (defects per
million business opportunities)
6 sigma process capability means 3.4 DMPO (defects per
million business opportunities)
With 6 sigma, defect probability is 0.0003%, success
probability is 99.9997%
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Six Sigma Pioneers

Motorola
Texas Instruments (Designer and supplier of digital
signal processors)
GE (general electric)

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