Aayush

QUALITY CIRCLE –
A WAY TO QUALITY IMPROVEMENT
People are the greatest assets of an organization because, through people all the 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.
Participate methods in the work environment and productivity and quality for the
company.
The principles of Total Quality Management (TQM) are now a recognized characteristic
of most of successful business world over. Gone are the days when customers considered
price as the main reason when customers considered price as the main reason for
purchasing a product or service. Quality and reliability are now the overriding factors
which customer’s favour in exercising choice. Meting customer specification,
dependability of service and speed of delivery are the very distinguishing features of
success.
TQM DEFINED

TQM ensures maximum effectiveness and efficiency within a business and secures
commercial leadership by putting in place processes and systems which will promote
excellence and prevent errors. It ensures that ever aspect of the business is aligued to the
customer needs and the advancement of business goals without duplication or waste of
efforts. The commitment to TQM originates at the chief executive level in a business and
is promoted in all human activities. The accomplishment of quality is thus achieved by
personal involvement and accountability, devoted to a continuous improvement process,
with measurable level of performance process, with measurable level of performance by
all concerned. “TQM is an integrated organizational approach in delighting customers
(both internal and external) by meeting their expectations on a continuous basis through
everyone involved with the organization working on continuous improvement in all
products, services and processes along with proper problem-solving methodology.”

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TQM can be conceptualized into the following three processes:

(i) Quality process for understanding who the customers is, what are his/her needs
and taking steps to completely satisfy the needs of this customer.
(ii) Management process for continuous improvement. The term management
refers to managing continuous improvement and does not address any specific
organizational level. The process comprises PGDA cycle and its continuously
evolving policies, objectives and methods to achieve goals, education and
training, implementation, checking causes, checking effects, taking appropriate
action, and preventing rourence. Management process addresses continuous
improvement to keep pace with the:
(a) Changing requirements
(b) Competitive environments, and
(c) Technological advances

(iii) People process : It is initiating and maintaining the TQM. It is carried out
through involvement of all employees on the basis of all three values, namely,
intellectual honesty, self-control and respect for others.
FUNDAMENTALS OF TQM
TQM principles can be better explained by examining those companies which have been
successful. Some Indian companies which have won the Golden Pea-cock. National
Quality Award from Quality Council of India (QCI) and Institute of Director (IOD) are
Telco, Philips, Bharat Electronics, Kirloskar, SAIL and EIL. For this purpose, we may as
well examine thte Malcom Baldrige Award winners in the USA like Motorola; the
Deming Prize winner like Toyota; and the European Quality Award winner like Corning.
On examining these companies, we find that the following fundamentals of TQM are
common in each of these award winning international companies.
• PUTTING THE CUSTOMER FIRST
• MANAGEMENT BY FACT
• PRINCIPLE OF PDCA CYCLE
• FOCUS ON PREVENTION
• PRINCIPLES OF EMPLOYEES INVOLVEMENT
• PRINCIPLE OF CROSS – FUNCTIONAL MANAGEMENT

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What is quality?
Quality is an attitude of mind.

It is mentality of progress, of constant improvement of that which
exist.

It is certainty of being able to do better today than yesterday and less
well than tomorrow

It is the will to improve on the present situation, no matter how good it
may really be.

It is the constant adaptation of economic and social life, to changing
conditions.

It is the continual effort to apply new techniques and new methods.

It is the faith in human progress.

Quality can be expressed by the simple formula:

Q= P
─
E

Where :

P= Performance of results f the product supplied are service rendered,

E = Customer’s expectations

When Q = 1, the customer’s expectations are complied with and full.

This is the idle situation

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Every body Total participation

Control

QUALITY

Maintenance Improvement

Quality circle objectives: The secret to success

Self development

Mutual development improved in communication and attitude

Waste reduction

Job satisfaction

Cost reduction

Improved in productivity

Safety improvement

Problem solving oppurtunities

Team building

Improved participation

Reduce absenteeism and grievances

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QUALITY CIRCLES

WHAT IS A QUALITY CIRCLE?

Quality circle is a small group of employees in the same work area or doing similar type
of work who voluntarily meet regularly for about an hour every week to identify analyse
and resolve work related problems not only to improve quality, productivity and the total
performance of the organization, but also to enrich the quality of work life of employees.
There is a misconception that quality circles and task force are one and the same. But
quality circle is not task force and the former is broader than the later.
A task force is a group of most skilled employees selected and appointed by
management, engaged in various functions with an orientation to problem – solving. The
quality circles are voluntary associations of workers of the same work place. Quality
circles involve people in solving problems and tap their brain power effectively.
HISTORY OF QUALITY CIRCLES

Through the quality circles had been in operation with different names in India the credit
of developing the concept has gone to the union of Japanese Scientists and Engineers
(HUSE) along with Dr. Kaoru Ishikawa of Mushashi Institute of Technology, Tokyo. In
fact, R.S. Dwivedi, rightly felt that, historically Gun Mandal (Quality Circles) have been
used in different social, religious and political settings since the dawn of Indian
civilization to enhance ‘Satvic Qualities’ (i.e., urge for excellence, knowledge and
concern for others, interest, trust and confidence, self – actualization etc.) minimize
rajasic (urge for economic resources, authority and power, concern for personal interest,
restlessness and tension, craze for ego inflation etc.) and tamasic qualities (i.e., poveness
to error, indolence and wickedness, urge to emploit and damage others, distrust, loss of
self identity etc.) Non – application of the science of Bhagvad Gita and Vedas to
Industrial and business organization is one of the reasons for dependence of Indian
organizations on the techniques developed in foreign countries. The concept of quality
circles is not an exception to it.
It was in 1961 that Dr. ishikawa concieved the ideas of quality control circles and
wrote abut it in a journal ‘Gemba to QC’ (Quality Control for the Foreman) brought out
by HUSE in which he became an important functionary. The appealed to the workmen

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and supervisors to form quality circles whereupon they will given the necessary simple
statistical quality control tools with which they can analyze and solve work related
problems after identifying them. In 1962, 20 circles were registered with HUSE. The
number of circles steadily grew to 1.3 million covering 13 million members in 1986:-
The important objectives of Quality Circles are:-

(i) To develop, enhance and utilize human resources effectively;

(ii) To improve quality of products/ services, productivity and reduce cost of
production per unit of output;
(iii) To satisfy the worker psychological needs for self-urge, participation, recognition
etc., with a view to motivating them. Accomplishment of this objective will
ensure enhancement of employee morale and commitment.
(iv) To improve various supervisor skills like leadership problem solving,
interpersonal and conflict resolution; and
(v) To utilize individual imaginative, creative and innovative skills through
participation, creating and developing work interest, including work interest,
including problem solving techniques etc. Achievement of these objectives
effectively requires the use of certain techniques.
DEFINITION
Quality Circle is a small group of employees in the same work area or doing similar type
of work who voluntarily meet regularly for about an hour every week to identify, analyze
and resolve work-related problems, leading to improvement in their total performance
and enrichment of their worklike.
It is necessary to comprehend the significance of every part of this definition to
ensure that it is implemented in the right spirit and that the fundamental differences
between Quality Circles and other techniques that we have so far been used to are clearly
appreciated.
(a) SMALL GROUP OF EMPLOYEES
It has been learnt from experience that the optimum number of members in any
quality circle is about 8 to 10. It has been that any circle formed with less than 5
members would lose its vitality as, due to a high rate of absenteeism in our country,
the absence of a few members at the meetings may cause a circle to become inactive.

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At the same time, more than 15 members in a circle could result in deprivation of
opportunity for active participation by everyone in the circle as also in discussion not
being very purposeful. As such, the minimum and maximum strength of Quality
Circle is recommended as .5 and 15 respectively.
(b) IN THE SAME WORK AREA OR DOING SIMILAR TYPE OF WORK
A Quality Circle is a homogeneous group and not an inter – departmental on inter –
disciplinary one. Members participating in circle activities must be on the same wave
– length. Discussion taking place at the meetings should be intelligible to each one of
members. This is possible only if the composition of the circle includes employee
working in the same work area or engaged in a similar type of work.
(c) VOLUNTARILY
It is the voluntary nature of the membership to quality circles that makes this concept
totally different from all other hitherto adopted practices. Employees decide to join
Quality Circles on their own volition. no coercion or pressure is to be brought on
them to join or not to join. Nor can anyone be barred from joining circles by virtue of
his being a union leader or for lacking in qualifications.
(d) MEET REGULARLY FOR ABOUT AN HOUR EVERY WEEK
Normally, Quality circles should meet for about an hour every week. There are some
instances of meetings of Quality Circles being held once a fortnight. The danger of
having Quality Circle meetings at longer intervals is that the intervals may tend to
lengthen till eventually meetings are stopped altogether. If the meetings is scheduled
for every week, Quality Circles can be excepted to meet at least twice or thrice a
month. Whatever may be the frequency decided upon by the Quality Circles
themselves, the regulating of such meetings is of great importance and must be
adhered to.
(e) TO IDENTIFY, ANALYZE AND RESOLVE WORK RELATED PROBLEMS
This is based on the proven theory that the employees who work in any area day after
day know best what problems are hindering achievement of good quality,
productivity and optimum performance as also how they can be remedied. As such
the members of Quality Circles themselves identify problems through brainstorming.

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They also entertain requests from the management and other departments to look into
certain problems that may be worrying them.
(f) LEADING TO IMPROVEMENT IN THEIR TOTAL PERFORMANCE
As a result of Quality Circles resolving work – related problems relating to quality,
productivity, cost reduction, safety etc. the total performance of the work area
naturally improves, resulting in both quantifiable as well as intangible gains to the
whole organization.
(g) ENRICHMENT OF THEIR WORK LIFE
The spin – off benefits of Quality Circles to the organization include enrichment of
the work – life of their employees apart from attitudinal changes, cohesive team
culture, etc. This is a result of avoidance of drudgery due to repeated rework because
of rejections, an improved working environment, happier relations with co-
employees and greater job satisfaction etc.
What are QC circles activities?
Quality control is a company wide activity, the qc circles activity attempts to promote
quality control on the work shop level, which is the first line of corporation’s activities.
 It acts as a channel to tap and harness people’s brain power
 It utilizes the collective wisdom, and synergy of small groups of workmen.
 It encourages creativity and innovation.
 It provides job satisfaction, fun and recognition.
 It facilates self development and mutual development.

QUALITY CIRCLES IN INDIA

In India, quality circles were first initiated in an engineering company – Bharat Heavy
Electricals (Pure Cables). Starting from the engineering workshops, QCs spread in other
service departments Pure Cables such as personal, purchase, hospital, administration,
training centres, workers canteens etc. Presently at national level quality circles in India
have gradually spread to Chemical, Pharmaceutical and other processing plants including
even the more traditional. Jute and textile industries typical examples of companies are
BASF, Hindustan Antibiotics. Durgapul Steel Plant, Crompton Greaves, JK Jute Mills,
National Textile Corporation, Shriram Fibres etc. There are several other companies

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successfully operating QCs in India both in the public and private sectors. State bank of
Hydrabad, 11M, Calcutta, Air India, Indian Airlines, Apollo Hospital in Chennai, State
Road Transport Corporation of Andhra Pradesh and Kerala, South Eastern Railways,
Back of Baroda, State Bank of India etc. are some of organization in India. Quality
Circles in India have also been reported from certain families and rural area projects.

OTHER NAMES FOR QCS

“A rose will smell as sweet with any other name” said Shakespeare while this may be
true in many other cases but are should think twice before applying this maximum to
quality circles. In the US, different people give different names to QCs. Some of these
QCs names are as follows:
♦ Human Resource Circles
♦ Action Circles
♦ Magic Circles
♦ The Quality Seekers
♦ The Power Minded Circles
♦ Mac Circles
♦ Employees Circles
In India, too, the following names are used for QC:
♦ Quality control circles (as per their origin in Japan)
♦ Productivity circles (some Indian organization uses this nomenclature)
♦ Employees participation circles cat Shriram Fibres, Chennai)
♦ Small group activities (SGAs) (at Telco and Eicher)
♦ Shop Improvement teams (in some PSUs in India)
♦ Thinking at work circles (at JK Synthetics)
♦ Quality circles (at Pure Cables and now QCFI has also retained this name)
ORGANIZATIONAL STRUCTURE OF QUALITY CIRCLES
One of the factors for the success of any organization is the structure and the functional
rapport between the different elements. For the successful operation of Quality Circles, a
well – structured approach is therefore, absolutely necessary. The model of the structure
is indigenous. It is found that it as successful in our country.
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The organizational structure of quality circles consists of several levels:-

1) Non – Members: Non – members play an important role in the Quality Circle
activities. These are the persons who have to help in implementing the
recommendations made by the Quality Circle members. Even the non-members
would become part of the structure in the process of quality circle activities. In fact,
this would produce, a catalytic effect on them either to become members of the
existing circle or form new circles.
2) Members: The basic element of a Quality Circle, of course, is the members
themselves. Hence, the members are the heart of the programme, and proper use of
their untapped brain power is the key to its success. The concept of Quality Circles is
equipment and meetings. Those who are interested in the concept will for a Quality
from the same work place are familiar with the work and it will be useful for them in
meetings.

CO-ORDINATING 6 Top Management

AGENCY
5 Steering Committee

4 Facilitators

3 Leader/Dy. Leader

2 Members

1 Non-members

3) Leader/Deputy Leader: The Quality Circle leader is elected by the circle members.
He is responsible for the operation of this circle and is therefore responsible for the
circle activities. Generally the line manager acts as the leader of the quality circle.
The main functions of quality circle leader as – (a) Conducting meetings regularly (b)
generating enthusiasm for circle activities (c) acting as link between members and

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facilitator (d) keeping the meetings on right track (e) training member is problem
solving techniques.
The leader must have skills in discussion, limitation and promotion of active
participation. He should be trained in group dynamcis, human behaviour and
participative style.
4) Facilitator: Facilitator is an important link between the Quality Circle leader and the
steering committee. The main duties of a facilitator are (a) serving as a Quality Circle
coordinator (b) training members, leaders and management, (c)Initiating the setting
up of Quality Circles by persuading the supervisors by teaching and training (d)
providing feedback to the steering committee about the proceedings and results of the
Quality Circle (e) helping the Quality Circle in preparing the presentations, visual
aids etc., (f) acting as an evaluator and reviewer of Quality Circle operations and
programmes.
The facilitator has to maintain sound inter – personal relations in order to function
as a social leader. He should prove himself successful in acting as a coordinator,
coach, promotor, teacher and innovation. He is expected to be an excellent resource
person for training the managers at higher level.
5) Steering Committee: It is an apex body at the highest level of the plant which would
be responsible for formulating the objectives and for supplying the resources for
operation. The structure of the committee is made up of the departmental heads from
every major function like production, finance, material management, engineering
other services areas headed by the Chief Executive of the plant.
The main functions of the steering committee are:-
(a) Providing training to Quality Circle leaders
(b) Arrangement of meeting halls and associates in the meetings.
(c) Providing budget for Quality Circle activities.
(d) Making Quality Circle activities as part of the organizational goals.
The steering committee would take part in the top management presentation given
by the Quality Circles and respond to Circles recommendations expeditiously. They
may also participate in annual social get-together.

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6) Top Management: The top management is the Quality Structure consists of

Chairman and Managing Director, Directors, Chief Executives, General Manager and
other top executives. Without the faith and commitment, support and encouragement
from this top level the activities of the Quality Circles cannot be deemed to have
complete support for the programme.
7) Coordinating Agency: Although the Quality Circle structure does not asvisage a
separate department to look after its activities, great deal of coordination is called for
convening Steering Committee Meetings, arranging management presentations,
formulating budgets and disseminating relevant information on circles to the parties
concerned etc. The main functions of the Coordinating Committee are:
(a) Preparing agenda and convening meetings of the Steering Committee.
(b) Presenting the report of the Quality Circle activities to the Steering Committee.
(c) Maintaining statistics of the operation of the Quality Circles.
(d) Coordinating training programmes and arranging seminars, workshops,
conventions and top management presentations once in two months.
IMPLEMENTATION OF QCS
Some consideration for implementing QCs in organizations is discussed in the ensuing
text.
In India, few companies have started implementing QCs concept for the last 20 years
factories and all other organizations must implement QCs in an effective manner so that
the nation, as a whole, can reap the full benefits and gains economically. Let us see the
steps that are needed for implementing QCs in any factory or organization.
The QCs organization is an informed one within the formal organization,
supporting each other to attain the corporate objectives.
Some selected managers representing production, quality control, design and process
planning form of QCs Steering Committee (SC). This committee acts as a policy making
body for QCs. The Steering Committee registers and monitors the QCs in factories and
organization.

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TOP MANAGEMENT
Top management must play an important role by attending the orientation courses on
QCs that must be specially designed for them. They must inform all employees of their
decision to implement the QC programme in the company.
Whenever QCs projects are presented, the top management should invariably
attend those meetings. They must address the different training courses on QCs organized
for various lower of buds management and workmen, the top management must express
verbally as well in writing their support and commitment to the QCs programme.

STEERING COMMITTEE
The managing director or CEO of factory or organization must be the chairman and all
HODs members of the steering committee (SC). It must have members from various
relevant departments. The duties of the QCs steering committee are listed below:-
(i) To define the ultimate goals of the QCs programme.
(ii) To formulate long-range plan for the programme viz. Organizing the circles,
selection of departments, formulating policy on QCs promotion, evaluation,
incentives, training etc.
(iii) To select the facilitator and provide support by allocating maximum
resources.
(iv) To stimulate and regulate the QCs meetings
(v) To attend the QCs project presentations.
Thus, the functions of the steering committee are to formulate policies and
implement these in factories and organizations.
MIDDLE MANAGEMENT
A committed middle management is necessary for the success of the QCs programme.
They must establish the departmental work programme in line with the steering
committee programme viz., deciding about the number of circles in each section, the
circles meeting time and facilities etc. Their commitment must include:
(i) attending some QCs meetings through their selected members;
(ii) personal follow-up of QCs activities and training programmes;
(iii) provision of resources for circle activities and

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(iv) Organization of a supervisor circles.

THE FACILITATOR
The facilitator serves as the link between top management, quality circle steering
committee, middle management, circle leader and circle members.
The duties of the facilitator are listed below:
(i) To coordinate the training courses.
(ii) To get the support from top management steering committee, middle
management, circle leaders and circle members.
(iii) To assist circle leaders and deputy leaders in conducting circle activities, and
(iv) To provide the necessary resources.
In some organizations the coordinator will also have to be the trainer he/she has:
(i) To orient top and middle management about QCs.
(ii) To design and schedule courses and
(iii) To teach the circle leaders the concept, tools and techniques of QCs.
The facilitator implements the work programme, through three committees such
as promotion committee, training committee and evaluation committee. The facilitator
recommends the right person for different committees, supervises these committees,
supervises these committees and evaluates their performance. The following are the
functions these three committees:-

Promotion Committee: The promotion committee performs the functions
viz. (i) develops productivity consciousness among management and labour
(ii) generates their interest in QCs activities (iii) conducts contests, inter-firm
visits, intrafirm competitions etc.

Training Committee: The training committee performs the functions viz. (i)
identifying training needs (ii) designing training programmes (iii) evaluating
effectiveness of the training programmes.

Evaluation Committee
This committee’s functions are;
(i) Evaluating the feasibility of proposed projects.

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(ii) Recommending to management for QCs implementation and

(iii) Recommending for necessary motivation.
THE CIRCLE LEADER
Each circle is headed by a circle leader. While introducing the quality circles in a factory,
supervisors can lead the circle initially. Late on, the workmen can take own as QCs
leaders. Each workman will get a chance to become QC leader in rotation. The leader
should maintain the enthusiasm of the members and motivate them in circle activities.
He/She must conduct circle meetings regularly and monitor the circle activities with
respect to formulated work programme. In the absence of the leader, the deputy leader
may conduct QCs meetings.
THE CIRCLE MEMBERS
The circle members must participate actively in the circle activities such as meetings,
discussions and develop the right attitudes towards their work, superior’s etc. for quality
improvements. A number must be conscious about productivity, quality and
improvement, which can be brought out with the operation of QCs in an organization.
Some non-members may also be invited to QC’s meetings. The implementation of QCs
programme in a company must be carefully planned. Initially one or two circles must
only be organized.
Five major stops involved in mechanism of QCs operations are:
(i) Orientation for top management
(ii) Workshop for training middle management
(iii) Training for circle facilitator, leaders and members
(iv) Pilot testing of QCs in selected workareas.
(v) Company-wide full scale implementation.

THE COORDINATOR

He coordinator the activities and meetings of various QCs within an organization.

IMPLEMENTING QCS
It is desired that all factories and other organizations in out country effectively
implement quality circles during the future years and produce goods and services of
world-class lend to earn a good name for our country in the international market. The step
implementations are given below.

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The following two figures show the cause – effect diagram of QCs quality of
work and a flow chart of QCs project proposals, respectively.

Self Development Knowledge

Respect for Others Self Control
Instinctual Honesty

Quality Work of People

Application Education & Training

Cause - Effect Diagram for Quality of Work

Steering Committee Chief Executive

Manager Manager Manager

Promotion Committee

Supervisor Shop1 Supervisor Shop2 Supervisor Shop3

Facilitator Training Committee

Quality
Circles
Evaluation Committee

Steps for implementation of QCs are:

(i) Managers, supervisors and foreman must first understand the concepts and
activities of quality circles.
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(ii) The management’s total support and commitment should be made known to
everyone in the organization.
(iii) The quality circles steering committee is formed with the personal from top
management. It gives direction to the activities of quality circles.
(iv) A facilitator or promotor is selected from among the management staff to train
supervisors or foreman to be quality circle leaders. The facilitator will also
serve as coordinator and adviser to the circles.
(v) Supervisors and foreman must be trained in quality circle techniques.
(vi) Members of each circle should do similar types of work or belong to the same
department or section.
(vii) Membership in the circles is voluntary. Hence, to secure greater interest and
participation. Supervisors and workers should first be exposed to quality circle
activities.
(viii) The first few meetings of a circle generally focus on training of members in
the use of the basic quality circle techniques to analyze and solve problems.
(ix) Each organization should start on a limited scale, i.e., initially organizing one
or two quality circles and then increasing the member as more experience is
gained.
(x) Quality circle meetings must be held regularly once a week at the initial stage
and at least once a mount on completion of the basic training of members.
(xi) Everyone’s suggestions on problems which affect the circles objectives or
goals should be discussed.
(xii) Total participation of team members must be encouraged.

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The QC 7- Step Problem- Solving Formula
Step Basic steps
No.
1 Select topic
2 Understand situation
and set targets
3 Plan activities
4 Analyse causes
5 Consider and
implement counter
measure
6 Check Results
7 Standardize and
establish control
Action Items
• Identify problem
• Collects data
• Decide characterstics to attack set targets
• Decide targets (value and deadline)
• Decide what to do
• Decide schedule, division of
• Check present values of characteristics
• List possible causes
• Analyze causes
Consider countermeasures
• Promote ideas for countermeasures
• Discuss how to put countermeasures into
effect
• Check details of countermeasures
Implement counter measures
• Plan how to implement
• Check result of countermeasures
• Compare results with targets
• Identify tangible
Standardize
• Establish new standards and revised old
ones
• Decide methods of control
Establish control
• Familiarize relevant people with new
methods
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INTRODUCTION TO INDUSTRY

The small scale industries (SSI) constitute one of the vibrant sectors of the Indian
economy in terms of employment generation, the strong entrepreneurial base it helps to
create and its share in industrial production and exports. The Government created the
Ministry of Small Scale Industries and Agro and Rural Industries (SSI&ARI) in October,
1999 as the nodal Ministry for formulation of policy and co-ordination of Central
assistance relating to promotion and development of the small scale industries in India.
The Ministry of Small Scale Industries and Agro and Rural Industries (SSI&ARI) was
bifurcated into two separate Ministries, namely, Ministry of Small Scale Industries and
Ministry of Agro and Rural Industries in September, 2001. Taking into account the high
potential for growth in the SSI sector in terms of output, employment and exports, the
role of the Ministry of Small Scale Industries is to strengthen the SSI sector, to enable it
to remain competitive in market-led economy and generate additional employment
opportunities. For achieving these objectives, the endeavor of the Ministry is to provide
the SSI sector proper and timely inputs like:

Adequate credit from financial institutions/banks;

Funds for technology upgradation and modernization;

Adequate infrastructural facilities;

Modern testing facilities and quality certification laboratories;

Modern management practices and skill upgradation through advanced
training facilities;

Marketing assistance; and

Level playing field at par with the large industries sector;

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CURRENT SCENARIO

New SSI units in the backward areas would be extended the facility of financial
assistance in the shape of Interest Free Loan to be quantified at, 50% of the tax paid on
the sale of goods produced in such industrial units, under the HimachalValue Added Tax
Act, 2003 for a period of 5 years from the date of start of commercial production to be
repayable after a period of 5 years.

INCENTIVES FOR EXPORTING UNITS :

In order to boost the exports and enhance competitiveness of exporting units, subsidy
upto 1% of FOB value of export subject to maximum of Rs.10.00 Lacs per annum shall
be given.

INCENTIVES FOR FOOD PROCESSING INDUSTRIES :

i) Food Processing Industries except wheat and rice will be considered as seasonal
industry and exempted from payment of maximum demand charges for electricity during
closure period of more than three months.

ii) No market fee shall be levied on agriculture and horticulture produce used as raw
material by food Processing Industry within the State except Rice, Wheat, Mustard Oil
and Cotton.

iii) Interest Free Loan at the rate of 75% of the tax paid on the sale of goods
produced in such industrial units shall be given under the HimachalValue Added Tax
Act, 2003 for a period of 5 years from the date of start of commercial production. This
would be repayable after a period of 5 years from the date of start of commercial
production. This would be repayable after a period of 5 years.

iv) Charges for change of land use for Food Processing Units shall be levied @50%
of normal rates in the State declared backward areas.

v) Wine/Liquors/Brandy etc. made from 100% fruit produce in the State will be
exempted from the excise duty in backward areas.

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Special priority shall be given for release of electric connection to Mega Projects,
100% EOUs, IT Industries and FDU Projects.

Incentives and privileges already being enjoyed by units under previous policies
shall continue as mentioned in Appendix I of Industrial Policy-2005.

The new scheme of Incentives shall be applicable to units coming in Commercial

Production after the commencement of this policy. However, Export Incentives shall be
available to existing units as well.

Incentives and Concessions shall be available only of those units which do not fall in
the negative list.

SINGLE WINDOW SERVICE:

For the speedy Redressel of the grievances of the enterpreneurs, Single Window
Services meeting is held under the Chairmanship of Deputy Commissioner, Panipat. All
the Head of the departments which are related to Industries are the members of the SWS.
The Presidents of the various Industrial Associations are called in the SWS meeting to
hear & redress their problems.

MINISTRY OF SSI
The Ministry of SSI designs policies, programmes, projects and schemes in consultation
with its organizations and various stakeholder and monitors their implementation with a
view to assisting the promotion and growth of small scale industries. The Ministry also
performs the function of policy advocacy on behalf of the SSI sector with other
Ministries/Departments of the Central Government and the State and Union Territories.
The implementation of policies and various programmes/projects/schemes for providing
infrastructure and support services to small enterprises is undertaken through its attached
office, namely the Small Industry Development Organization (SIDO) and the National
Small Industries Corporation (NSIC) Ltd., a public sector undertaking under the Ministry.

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INTRODUCTION TO COMPNAY
Mr. Deepak Dogra (Proprietor) founded Pure Cables in the year 2002. The Paonta Sahib,
Himachal(India) based Manufacturer & Supplier offers an array of Hydraulics
Equipment, Tools & Components for different industrial applications. Our range
comprises of Jacks, Cylinders, Hydraulics Cylinder,Industrial Hydraulic Cylinders,
Customized Hydraulic Cylinder, Pumps, Power Pack, Electrical Panel, Gates Pressure
Hose, Hose Assemblers, etc. In addition to the standard precisely engineered products,
we also provide CNC and VMC service to provide custom tools and components to the
clients.
Each of the hydraulic components jacks, gates pressure hose, and hose assemblers is
manufactured to the highest standards. Offered in various configurations, the jacks are
used in several industrial sectors. We offer both, manual and powered driven pumps as
well as a variety of cylinders of different capacities and stroke lengths. From designing,
manufacturing, assembly to quality testing and packaging, our professionals strive to
provide great client service and quality workmanship which creates a high performance
product that the client needs. We are committed to provide our clients with the most
extensive line of equipment, components and tools which would increase productivity,
make work safer and provide the best value. Plus, our experience allow us to serve the
specific requirement of each clients seamlessly and efficiently.
Industries We Serve
Our hydraulic equipment, tools and components are used in many industries, that include:
* Construction
* Industrial Manufacturing
* Mining
* Oil & Gas
* Power Generation
* Petrochemical & Refining

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LOCATION OF PURE CABLES WORK

PURE CABLES is situated in the heart of Paonta Sahib city. The unit is spread over an
area of 1 acre and also has modern residential colony for its employees with all modern
amenities like - hospital, school, club, playground, community hall etc.
The unit is situated in the midway to the railway station and the bus stand. It has
got its own residential colony. There is no problem of waste disposal. The unit has its
own railway line running inside so that transportation of raw material is facilitated. There
are main gates for entry and watchmen are there to look after
One gate opens in the main market of the Paonta Sahib and the other two in the
different direction, which make it well connected to the other parts of the city.

ORGANIZATION PROFILE

PURE CABLES ENGINEERING WORKS PVT. LTD. was established in 1933 at

Lahore (now in Pakistan) and began with the manufacture of Cold Start Horizontal Diesel
Engines. The company was shifted to its present premises after the partition of India.

Later, the company stated the manufacture of Hydraulic Equipment and is presently
manufacturing High Pressure Cylinders, Pumps and Hydraulic Systems up to 700
Bar(10,000psi).

The company is certified for ISO 9001:2000 & ISO 14001 by TUV Cert-Germany.
Majority of its products comply to ASME B30.1-1998 and ISO 10100-2008 & are also
CE marked. The accessories used, also conform to SAE J 517 for hydraulic hoses & EN
837-1 for pressure gauges.

PURE CABLES ENGINEERING is also representing: M/s Roemheld

GmbH,Germany for Hydraulic Work Holding / Elements for Jigs and Fixtures for CNC
Machining Centres.

M/s Hilma-Roemheld GmbH, Germany for Quick Die Clamping / Changing Elements,
Hydro-Mechanical, Mechanical and Hydraulic Vices.

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M/s Plarad GmbH, Germany for Hydraulic / Electric / Pneumatic Torque Wrenches,
Manual Torque Multipliers etc. It has been awarded the coveted Star Export House
status. PURE CABLES ENGINEERING has followed a systematic policy of up
gradation in design and manufacturing. It now offers a complete range of 700
Bar(10,000psi) product range for Hydraulic Jacks, Cylinders, Pumps, Power Packs,
Systems, Valves & Tools, Hydraulic, Systems including Cylinder & Power Packs for
Construction, Mining, Hydro-electric Projects, Tunnelling, Underground Metro’s etc. It is
engaged in a big way in offering CUSTOM DESIGN EQUIPMENT.

We also entered in the field of manufacture of VACCUM PISTON DEWATERING

RECIPROCATING PUMPS with sound proof canopies.

The Products are being exported to a large number of European Countries, USA and
Canada, Australia, UK., Russia, Middle East, East Africa, South Africa, South East Asia
and New Zealand.

Design department equipped with Pro-engineering facilities Surface coating facilities/ Hard chrome plating
/ Zinc plating / Electroless nickel Hard anodizing, 7 Tank phosphating Powder painting Metrology
equipped with calibrating facilities of all measuring instruments, pressure gauges etc. Machine shop
equipped with latest CNC machine Chemical lab. Metallurgical & Sand testing laboratory including Salt
spray test. Foundry equipped with Cupola and Oil fired furnaces.

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We are Government Recognized Export House

In order to meet the goal of meeting each of our client's requirements every time, we do:
* Carefully listen to what they say.
* Incorporate the latest technology and workmanship to complete their orders.
* Provide quality Power Pack, Electrical Panel, Jacks, Cylinders, Pumps, Hydraulic
Power Pack Machine, etc. and excellent service.
* Be flexible and responsive.
* Offer a high-level of expertise and create value.
Hydraulics Equipment, Tools & Components
We manufacture and supply a variety of hydraulic tools, equipment and components,
which are as follows:
* Jacks
* Cylinders
* Pumps
* Power Pack
* Electrical Panel
* Gates Pressure Hose
* Hose Assemblers
* Ermeto Type
* Pressure Control
* Elements For Industrial Applications
* Hydraulic Power Pack Machine

We also provide following Services:

* CNC & VMC Service
Our Facilities
We execute our manufacturing and servicing tasks from our production unit in Paonta
Sahib, Haryana. We distribute our hydraulic equipment, tools and components all over
the country. Our professionals produce products which comply with industry set quality
standards. We are instrumental in undertaking the custom work that client many need.

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We also have a sales office, which we makes it easy for clients to find and order what
they need. The professionals in the sales office provides fast, reliable service and support.

Pure Cables Difference

We are your one stop source for the standard hydraulic equipment, tools and components
as well as engineering requirements.
* Commitment to quality
* Ethical business practices
* Transparent business dealing
* Timely execution & delivery of order
* Easy payment pro
BRIEF PROCESS FLOW DIAGRAM OF
PURE CABLES WORK
PAONTA SAHIB

PURCHASING OF
CHIPPER HOUSE
PULPING
STOCK PREPARED
CABLE MACHINES
CABLE CUTTING
CABLE FINISHING
STICKING IN GO DOWN
DISPATCHED TO CUSTOMERS

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ORGANISATIONAL STRUCTURE

V.P. and M.D.

GROUP II HEAD

CHIEF GENERAL
MANAGER

PEOPLE DEVELOPMENT &

COMMERCIAL
COMMUNICATION & RAW MATERIAL

RESEARCH CABLE ENGG. MEDICAL

AND PRODUCTION SERVICES
DEVELOPMEN
T

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POLICIES OF OBTAINING LEADERSHIP THROUGH QUALITY

PURE CABLES aims to be a world - class organization with a clear headway in terms of
consistent Quality, Low Cost, On Time Delivery.
We will focus on adding value at all points of intersection with each of our customers -
internal and external.
For this, we will redefine standards in responsiveness, excellence in performance and
application of world class technology that ensure zero defect output.
Quality improvement is the job of every PURE CABLES employee.

QUALITY POLICY
We are the manufactures and supplies of various grades of cable and coated cable and
board. It will be our endeavor to continuously improve the quality and service of our
products for better customer satisfaction.
Every individual in the unit shall stand committed and focused to this stage objective by
adopting total quality management (TQM) metrology aimed at continuous improving our
system, practices and preference. Thus constantly reducing cost through minimizing
wastage.We shall be committed to comply with the requirements if international
standards on quality management system and continually improve its effectiveness in its
true sprite through involvement of employees and training.

TQM (DR. N. EDWARDS DENINGS 14 POINTS)

1. Create constancy of purpose toward improvement
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. Minimize total cost.
5. Improve constantly.
6. Institute training.
7. Institute leadership.
8. Drive out fear.
9. Break down barriers b/w department.

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10. Eliminate slogan, target and exhortation for the workforce.

11. 1. Eliminate works standard.
2. Eliminate management by objective
12. Right to pride of workmanship.
13. Program of education and self-improvement.
14. Put everybody in company to work.

ENVIRONMENT POLICY
The Environment policy outlines our commitment and will serve as a guideline
for all our manufacturing sites.
“We reaffirm our commitment to prevention of pollution by minimizing the
adverse impact of our activities and operations on the Environment”.
Pursuant to this goal, we shall:
 Continually improve the environmental performance by setting sound environmental
objectives and targets in each of the manufacturing unit and reviewing at the top
management level as essential elements of corporate management.
 Install, maintain and operate control facilities to comply with all applicable
environmental laws and other regulations pertaining to the unit.
 Promote form foresty for sustainable availability of fibrous raw material.
 Conserve natural resources and energy by constant endeavor to reduce consumption
and wastage.
 Introduce cleaner and energy efficient process in a phased manner to replace
pollution- prone process.
 Create awareness amongst all employees to work in a manner that ensures protection
of the environment.
 Make available the policy to the concerned and agencies on demand

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CORPORATE SOCIAL RESPONSIBILITY

While PURE CABLES is responsible to its shareholders for fair returns on their
investment, it is also committed to its other stakeholders to conduct its business in a
responsible manner that creates a positive and long - term impact on society.
For PURE CABLES, being a socially responsible corporate will mean:
 Using Eco-friendly processes in production for sustaining and preserving the
environment that support us.
 Promoting the well being and development of employees and their families through
an inspiring corporate culture that engenders good values.
 Building active and long term partnership with the communities in which we operate
and foster well being of the most disadvantaged amongst them.
 Employing good business practices with our stakeholders, business partners suppliers
and contractors.
CORE VALUE
 HONESTY : We will be principled , straight-forward and fair in all our dealing.
 INTEGREITY: We will maintain the highest standards of professionalism.
 FLEXIBILITY: We will adopt our selves to always stay a step ahead of change.
 RESPECT FOR INDIVIDUALS: We will give each person room to contribute and
grow.
 RESPECT FOR KNOWLEDGE: We shall acquire and apply leading edge
expresses in all aspects of our business.
 TEAM PERFORMANCE: The team comes first none of us is as good as all of us

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VISION

Our aspiration is to become a leading creator of shareholder value in the

cable industry.
To achieve this, we will use the ENERGY of our people, develop and implement
LEADING EDGE technologies and draw on both to deliver EFFECTIVE world class
solutions to our customers.
As per the leading company in Thapar Groups:
 Maximize shareholders value by the speed and quality of their response
to market forces and business opportunities.
 Be market leader in their core business.
 Achieve and sustain global competitiveness in all their business.
 Be the preferred supplier by providing their customer products and
Service that always exceeds their requirements.
 Grow as institution of strength of their people.
 Be industry leaders in their commitment to safety and the environment.
MISSION
To consistently out perform expectations and deliver superior value to both
our customers and stakeholders.
To achieve this, we will ENERGISE our people with a positive culture that
rewards INNOVATION, breeds INITIAIVE and encourages INTELLIGENT risk
taking.

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SWOT ANALYSIS
STRENGTHS:
 Maximum variety of cable and high quality.
 New cable mill/Factory .
 Good employer - employee relationship.
 Efficient management.
 Totally computerized.
 Team building.
 Fulfilling social responsibility by keeping environment clean.

OPPORTUNITIES:
 PURE CABLES have technology tie - up with world class popular companies.
 PURE CABLES has 25% share in cable in India.
 PURE CABLES has reached in Growth Stage.

WEAKNESS:
 Shortage of funds.
 Unnecessary blockage of funds.
 Flow of funds controlled by head office.

THREATS:
 Imported cable.
 Government policies.
 Increasing competition.

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MARKETING SERVICE DEPARTMENT (MSD)

PURE CABLES
The main function of the marketing service department is to finish paper from the mills
and to dispatch it to its destination. Mainly the marketing of PURE CABLES, as well
as of the unit Shree Gopal depends upon the head office at New Delhi. Apart from that
PURE CABLES is also having zones of India viz. North having zonal office at Delhi,
South having zonal office at Chennai, a west having zonal office at Mumbai and also by
the units is done to the head office. The most important information is taken from history
or to say from the part performance. It is on the basis of this post performance that
current decisions are taken and for this previous years actual performance helps the
marketing services department of Shree Gopal Unit and also the zonal office is taken
one by one.
One the basis of previous year's actual performance, the personal at marketing
services department along with the production department estimates the actual production
rate for the coming year. The production rate is calculated item wise and also machine
down and also the proposed shut days are also calculated. This estimate is done month
wise. It starts from the month January till December. After this a final program is made
and the target s are fixed by calculating for the coming years, the down, shut days and
production rate.
On the other hand, previous year 's actual performance helps the zonal office to
know about the actual sales of the product and in estimating the demand. Also on the
basis of previous year's actual performance, decision relating to the addition of the new
product in the existing product of the new product in the existing product lien are also
taken and also factor of seasonally is also taken into consideration. (These are some
products whose demand rises in particular seasons). Also in all these decisions,
experience and history also plays a vital role.
On the basis of this head office, after taking into account all the factors fixes an
annual sales target for the different zones for example, in the coming years, 400 MT of
executive Bond will be produced and will be sold and hence will distribute this 400 MT
under the z ones and in this way fixes their target.

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North Zone - 180 mt

South Zone - 120 mt
East Zone - 40 mt
West Zone - 60mt.
Once the target have been fixed for the coming year an annual budget is
prepared at the unit and this budget is then divided into the different months, and with
this a rough monthly budget is prepared.

MARKETING OBJECTIVES

Reinstate Category Leadership

Communicate PURE CABLES goals. Strategies and Plans

Bring dealers business goals in line with company Philosophy.

Reward distributors for their support & contribution.

Educate customer on paper features that facilitate perfect printing.

Create brand awareness.

Demand Building for PURE CABLES Emperor and PURE CABLES Royal through
ad. Companies in other

Media's, Direct mailers

Build traffic for help line.

To establish category leadership.

To showcase our product range

To generate head/inquires for PURE CABLES product.

To establish regular dialogue with relevant consumers with then.

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MARKETING EXPECTATIONS
Through some seminars and conferences the PURE CABLES managers observed some
expectations from the customers side in the market. Some market expectations are :-
♦ All zonal office to maintain a regular dialogue with their customers and distributors.
♦ Distributes to participate & contribute towards growth of PURE CABLES.
♦ Zonal office to focus on promoting the coated range arrange consumers.
♦ Consistent quality from the mills.
♦ To cross-sell & up sell PURE CABLES products to existing PURE CABLES
customers.
♦ To arrange trials for PURE CABLES products to Potential customers.

COMPLAINTS HANDLED BY MSD

The Marketing Services Department also deals with the various complaints made the
customer. These complaints can be of following types :-

Process Related

Finishing House related

Godwon Related
PROCESS RELEATED

Creasing Defects:- If the paper is to be used for envelops or
closure then paper reasing is necessary otherwise it turns out very easily.

Rewinding effects:- At the time of paper being rolled on rewinder, many time paper
is not rolled properly. The paper which comes out is rewinding defect & it affects the
paper quality.

Foreign particles defects:- When the paper is manufactured rewinder stocked in
loose form then any dust accumulates on it and it remains on it then it is called
foreign particulars defects.

Bloats/ Splinters/ Specks defects:- These are the marks on thee paper due foreign
particles or something sticks on it. And it leave workers, it is called specks, bloats,
splinters defects.

Size Variation:- When the paper is found to cut under over the required size of the
paper.

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GSM Variation :- If the paper is found to be manufactured over or under the

required GSM to the extent of 2.5%..

Weight Verification:-When the actual ream weight is found to be over or under the
standard ream weight due to excess or less sheets packed in a ream.
FINISHING HOUSE RELATED

Torn Sheets Defects:-When reams are formed and any torn sheets also comes then it
is stated as torn sheets defects.

Liners:-In ever reams at up an downside a simple paper liner is placed and if it is not
placed then it is stated as liner defect for finishing.

Poor finishing:-If the ream is loosely packed and their paper bears moisture due to
give used. To stick labels an the wrap and poor trimming then it is stated as poor
finishing.

Wrong Liabilities;-When label on the ream has specification varying with the
specification of Qulaity packed inside the ream it is a case of wrong labelling.
GODOWN RELATED

Mix up of qualities:-When the quality being dispatched varies to our under dispatch
programme.

Stitching Defect;-When the stiching is poor or there is any damage to the reams due
to loose stiching. When Polythene Sheets are not used in Packing during rainy season.
Poor condition of trucks causing defects to paper dispatched during transit.

Wrong & Leaning :- When the necking on the boules does not tally with
specification maintained in the dispatch programmable.

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OBJECTIVES OF THE STUDY

The main objective of the study is analysis of workers attitude in order to motivate them

in Pure Cables industries to find out certain recommendation to the organisation under

study, the various recommendations of the study may be useful in other organisation

having similar problem, the following research has been undertaken with the following

specific objectives:

• To study the Total Quality Management in Pure Cables, Paonta Sahib.

• To study the type of Quality Circles.
• To study the benefits of Quality Circles to organisation.
• To study the tangible and intangible gains from Quality Circles.
• To study the objectives of Quality Circles.
• To study the pillars of Quality Circles in Pure Cables.
• To evaluate, review, attitude and suggest as out the drawbacks of existing Quality
Circles.

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RESEARCH METHODOLOGY

MEANING OF RESEARCH
Research is a scientific and systematic search for penitent information on a
specific topic. Research is an art of scientific investigation. The advanced learner’s
dictionary of current English lays down one meaning of research as a careful
investigation and inquiry specially through search for new fact in any branch of
knowledge. Some people consider research a movement turn the know to the unknown.
The term research refer to one systematic method consisting of enunciating the
problem, formulating a hypothesis either in the form of solution toward. The concern and
had problems or in certain generalization for some theoretical formulation.
Definition of Research
 Redman and Mory, “Research is a systematized effort to gain new knowledge”.
 D. Slesigner and M. Stephenson, “In the encyclopaedia of social science define
research as the manipulation of thing, concept and symbiosis for the purpose of
generalizing to extent, correct to verify knowledge whether that knowledge aid’s in
the construction of theory , or in the practise of an art”.

STATEMENT OF THE STUDY

I am very grateful in having an opportunity to have Quality Circle as my project. In the
present scenario there is a much consideration laid on the quality of the products with
quantitative production in order to increase profitability of the firm.
This includes better working conditions to the employee with emoluments and it
is of great importance to us.
And so I have opted for Quality Circle as my topic.

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RESEARCH DESIGN

Collection of Data

Organising the Data

Presentation of Data

Analysis of Data

COLLECTION OF DATA Interpretation of Data

This is first one in process, it form the whole data sources. Pure Cables in Paonta
Sahib, pattern, data files and report, personal interview, objectives, maximising relevant
information constraints time secured of survey etc.
ORGANISING OF DATA
The information data collected during data collection process are organised and
presented in a compressible sequences to make them understandable. The data thus,
obtained is the edited, classified and put vita belated from to make it understandable.
PRESENTATION OF DATA
After the data has been properly organised, it is really for presentation like table
chart etc. The main objective is to put collected data in to an easy reliable form.
ANALYSIS OF DATA
After analysis and presenting the data, the research then has to proceed towards
the conclusion by the logical interences. By bringing the raw data to measure data
summarizing the data applying analytical method to manipulate the data that their inter-
relationship and quantitative measuring becomes evident.

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INTERPRETATION OF DATA
Interpretation means to bring to old the meaning of data or to convert more data
the various conclusion are drawn on the basis of logic.

SIGNIFICANCE OF STUDY
 Such study through surveys and studies throw a light upon the value of particulars
factors and sources affecting QCs in the organisation.
 The observation and finding of QCs study is very important to know the individual
respondents.
 By discovering individual respondents company can overcome certain unfavourable
situations.
 By these study we can increase the tangible and intangible gains of QCs.
 If these factor is good then the organisation will improve productivity.

SCOPE OF STUDY
The scope of investigation about QCs is almost unlimited but considering the time factor
and financial, the scope of study is restricted to only on organisation i.e. Pure Cables
Paonta Sahib.
The worker selected in the sample represent and personnel below the rank of
supervisors and foreman either casual or permanents and officers. They are representing
different plants exists in Pure Cables.
SAMPLING DESIGN
Sampling is a technique in which by selecting some of the elements in a
populating, we my draw conclusions about the entire population.
Sample Size :
It indicate the number of individual who would be surveyed, Here the sample size
is 43 respondents.
Sampling area :
My sampling area was Pure Cables.

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COLLECTION OF DATA
Firstly, investigation prepare the final questionnaire after preparing the final
questionnaire the investigators approached the management of the Pure Cables. The
management appreciated the facts of the personal investigation with the permission to
administration the test to the workers.
By collection of data the investigator find out the primary data:
1. Name
2. Age
3. Marital Status
4. Level of Earning
5. Department
6. Education Level
7. Experience in Factory
8. Skilled or Unskilled
In the collection do data in Pure Cables the worker is graduate and diploma
holder mostly in data collection find out skilled semi and unskilled and Marital
Status also.

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LIMITATIONS

The methodological assumptions of my project is that whatever information is collected

by me directly from the consumers.
My whole findings and studies based on response given to me by consumers.
Some consumes are not ready to fill the questionnaire old persons can’t
understand the question in English.

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Analysis &
Interpretation

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ANALYSIS & INTERPRETATION

1. Respondents’ classification Literacy

Table 4.1

Educational Qualification Respondents

Number Percentage
Matric 4 9.3
Intermediate 11 25.6
Graduation 20 46.5
Post Graduation 3 7
Any other 5 11.6
Total 43 100

50 46.5

40
Percentage

30 25.6

20
9.3 11.6
7
10
0
Matric Intermediate Graduation Post Any Other
Graduation
Educational Qualification

Fig. 4.1

Interpretation :

It is evident from table 4.5 that the highest percentage of the respondents are
graduate. It means an average qualification i.e. graduation is needed to be an employee in
the organization.

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2. Respondents’ classification Experience

Table 4.2

Experience (in Years) Respondents

Number Percentage
Less than 10 years 7 16.3
10 – 20 5 11.9
20-30 10 23.3
above 30 21 48.8
Total 43 100

60 48.8
50
Percentage

40
30 23.3
16.3
20 11.9
10
0
Less than 10 10 – 20 20-30 above 30
years
Experience

Interpretation :-
The table indicates that 48.8% of the respondents having the experience of above
30 years and 16.3% of the respondents having the experience of less than 10 years,
indicating that the organisation is having highly skilled employees.
Fig 5

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3. Respondents’ classification Nature of Service

Table 4.3
Category Respondents
Number Percentage
Skilled 41 95.3
Unskilled Nil Nil
Semi-skilled 2 4.7
Total 43 100

120
95.3
100
Percentage

80
60
40
20 0 4.7
0
Skilled Unskilled Semi-skilled
Category

Interpretation :-
Table 4.8 depicts that 95.3% of the respondents are skilled, 4.7% are semi skilled
and none of the respondent are unskilled. It means the company is having skilled
employees in the organisation.

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4. Respondents’ classification Nature of Job

Table 4.4

Nature of Job Respondents

Number Percentage
Casual 3 7
Permanent 40 93
Total 43 100

100 93

80
Percentage

60

40

20 7
0
Casual Permanent
Nature of Job

Interpretation :-
Analysis of table 4.9 shows 93% of the respondents are permanent and 7% of the
respondents are working on the casual basis. No doubt the employees are skilled as well
as permanent.

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5. Existence of Total Quality Management

Table 4.5
Response Respondents
Number Percentage
Yes 43 100
No Nil Nil
Total 43 100

120
100
100
Percentage

80
60
40
20
0
0
Yes No
Response

Interpretation :
Table 4.10 clearly reveals that all the respondents are affirmative regarding
existence of TQM in the organisation. It shows the company is more cautious about the
quality of the product.

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6. Quality Circles in the Organisation

Table 4.6
Response Respondents
Number Percentage
Yes 43 100
No Nil Nil
Total 43 100

120
100
100
Percentage

80
60
40
20
0
0
Yes No
Response

Interpretation :
On the examination of the table 4.11 it is clear that 100% of the respondents agree with
the existence of Quality Circles in the organization.

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7. Levels of Quality Circle

Table 4.7
Level Respondents
Number Percentage
Top Level 4 9.3
Middle Level 9 21
Lower Level 5 11.6
At all levels 25 58.1
Total 43 100

70
58.1
60
Percentage

50
40
30 21
20 11.6
9.3
10
0
Top Level Middle Level Lower Level At all levels
Level

Interpretation
It is evident from the table 4.12 that 58.1% of the respondents believe that Quality
Circles are operated at all levels where as only 9.3% of the respondents believe that
Quality Circles are operated only at the top level.

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8. Number of Members in Quality Circles

Table 4.8
Number of Members Respondents
Number Percentage
Below 5 3 7
5 – 10 26 60.5
10 – 15 14 32.5
Total 43 100

70
60.5
60
50
Percentage

40 32.5
30
20
7
10
0
Below 5 5 – 10 10 – 15
No. of Members

Interpretation:-
It is clear from the Table 4.13 that 60.5% of the respondents say that number of members
in a Quality Circle are in between 5 – 10 while 32.5% says that there are 10 – 15
members and only 7% says that it is below 5. It means that there are between 5-10
members in Quality Circles.

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9. Frequency of Quality Circles Meeting

Meeting Holdings Respondents

Number Percentage
Weekly 16 37.3
Fortnightly 19 44.1
Any other 8 18.6
Total 43 100

50 44.1
37.3
40
Percentage

30
18.6
20

10

0
Weekly Fortnightly Any other
Meeting Holdings

Interpretation:-
Table 4.14 indicates that 44.1% of the respondents say that meetings of the
Quality Circles held fortnightly while 37.23% of the respondents say that meetings are
held weekly.

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10.Objectives of Quality Circles

Objectives Respondents
Number Percentage
Develop and utilize human 1 2.3
resource
Improve quality of product and 9 21
services
Improve supervisory skills Nil Nil
Utilize individual creativity and 6 14
innovative skill
All the above 27 62.7
Total 43 100

70 62.7
60
Percentage

50
40
30 21
14
20
10 2.3 0
0
Develop and Improve quality Improve Utilize All the above
utilize human of product and supervisory skills individual
resource services creativity and
innovative skill
Objectives

Interpretation :-
Table 4.16 indicates that developing and utilizing human resource, improving quality of
product and services, improving supervisory skill and utilizing individual creativity are
the objectives of QCs.

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11.Role of Non-members in Quality Circles

Response Respondents
Number Percentage
Yes 29 67.4
No 14 32.6
Total 43 100

80 67.4
70
60
Percentage

50
40 32.6
30
20
10
0
Yes No
Response

Interpretation :-
It is clear from the Table 4.17 that 67.4% of the respondents are in favour that non-
members also play an important role in Quality Circle and only 32.6% of the respondents
are not in favour that non-members play an important role in Quality Circles. It means all
the members play an important role in Quality Circles.

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12.Help by the Non-members

Role of Non-members Response

Number Percentage
By Recommendations 10 34.5
By implementing the 14 48.3
recommendations
Any other 5 17.2
Total 29 100

60
48.3
50
Percentage

40 34.5
30
17.2
20
10
0
By Recommendations By implementing the Any other
recommendations
Role of Non-Members

Interpretation:-
It is clear from the Table 4.18 that 48.3% of the respondents agree that non-
members implement the recommendations and 34.5% of the respondents agree that they
play a vital role by providing recommendations.

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13. Tangible Gains from Quality Circles

Tangible Gains Respondents

Number Percentage
Better Quality 7 16.3
Greater Cost and effectiveness 3 7
Better Productivity 5 11.6
Better Profitability 6 14
Waste reduction and absenteeism 2 4.6
reduction
All the above 20 46.5
Total 43 100

50 46.5
45
40
Percentage

35
30
25
20 16.3 14
15 11.6
10 7 4.6
5
0
Better Quality Greater Cost and Better Productivity Better Profitability Waste reduction All the above
effectiveness and absenteeism
reduction
Tangible Gains

Interpretation:-
The examination of table 4.21 shows that 46.5% of the respondents agree that all the
above statements are the tangible gains from the quality circles and only 7% of the
respondents agree that greater cost and effectiveness is the only tangible gain provided by
the Quality Circles.

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14.Intangible Gains from Quality Circles

Intangible Gains Respondents

Number Percentage
Enriched quality of worklife. 6 14
Effective team building 3 7
Better human relations 3 7
Participative culture 5 11.6
Human Resource development Nil Nil
All the above 26 60.4
Total 43 100

70 60.4
60
Percentage

50
40
30 14
20 7 7 11.6
10 0
0
Enriched Effective Better human Participative Human All the above
quality of team building relations culture Resource
worklife. development
Intangible Gains

Interpretation :-
Table 4.14 indicates that 60.4% of the respondents believe that all the above
statements are the intangible gains provided by the Quality Circles and none of the
respondents believe the Human Resource development is being provided by the Quality
Circles.

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15. Benefits of Quality Circles

Benefits Respondents
Number Percentage
Improved working environment 6 14
Happier relations 1 2.3
Greater job satisfaction 3 7
All the above 33 76.7
Total 43 100

90
76.7
80
70
Percentage

60
50
40
30
20 14
7
10 2.3
0
Improved working Happier relations Greater job All the above
environment satisfaction
Benefits

Interpretation:-
It is clear from the table 4.25 that improved working environment, happier relations and
greater job satisfaction are the objectives of Quality Circle. It means Quality Circles
provides a greater degree of motivation to the employees in an organisation.

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CONCLUSION
The motive of this chapter is to present a summary of findings of the study and to make
certain recommendations. Certain recommendations. Certain recommendations are given
on how Quality Circles function and how it motivates the employees in the organisation
and how it maintains the quality of the product in order to achieve the organisational
goals.
The results of the study were quite different and contradictory. This situation is
mainly because of the following reasons:
1. Some workers were found to be under the pressure and fear of their supervisors to
join Quality Circles.
2. Also when two workers were called for filling the questionnaire in order to save
time, ones answer were fond to be influenced by other’s answers.

Because of all this, definite conclusions could not be drawn but still some broad
conclusions can be drawn out and trends can be located in regard to the relative
importance of various organisational factors.
The research on Bharat Heavy Electricals Limited, PAONTA SAHIB is divided
into five parts.
 The first part is INTRODUCTION TO QUALITY CIRCLES. This part introduces
about the various step involved in Total Quality Management.
 The second part deals with PROFILE OF BHARAT HEAVY ELECTRICALS
LIMITED.
 The third part is RESEARCH METHODOLOGY. This chapter gives the full detail of
research process of this project report.
 The fourth part is about DATA ANALYSIS AND INTERPRETATION. In this
chapter, data which were collected from the organisation is analysed and result of
analysation is systematically presented in this chapter.
 And fifth part is CONCLUSION AND SUGGESTIONS.
In this chapter, the overall project report is presented with conclusion which I had
come across through and the suggestions which are required to manage Quality Circles.

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From all the above chapters following are the conclusions made:

Maximum respondents are above 50years of age in Bharat Heavy Electricals Limited.

88.4%of the employees are married while 11.6%of the employees are unmarried.

All of the respondents in Bharat Heavy Electricals Limited are male.

All the respondents are male.

Maximum respondents are graduate.

Maximum respondents are having salary between 30,000-40,000.

Maximum respondents are highly experienced i.e. 30 yrs.

Maximum percentage of the respondents are permanent.

All of the respondents are aware about Total Quality Management.

Quality Circle is operated at all levels of organisation.

Quality Circle meetings held fortnightly in the organisation.

The duration of the Quality Circle meeting is 1 hr in the organisation.

Following are the objectives of Quality Circles in the organisation.
• Develop and utilise human resource.
• Improve Quality of product and services.
• Improve supervisory skill.
• Utilise individual creativity and innovative skill.

In the organisation non-members play an important role in Quality Circles by
implementing recommendations.

In the organisation, following are the tangible gains from the Quality Circles i.e.
• Better Quality
• Greater Cost and Effectiveness
• Better productivity
• Better profitability
• Waste reduction and absenteeism reduction.

Almost all the respondents say that absenteeism effect Quality Circles.

In the organisation coercion is not used on the employees to join Quality Circles.

In the organisation improved working environment, happier relations and greater job
satisfaction are the benefits of Quality Circles.

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Top Management is responsible for registering and Monitoring of Quality Circles.

Quality Circles enhances interest of the employees and serves as a catalyst in various
attitudinal changes.

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SUGGESTIONS

We should develop a harmonious environment so that trust and trust worthiness can
develop between management & workmen.

There can’t be a hard and fast rule about whether to consult a union or not before
implementing QCs.

In our way of working, suggestions of quality circles are not implemented quickly.
But if we fail to understand the necessity for implementing them quickly, the Quality
Circle also will meet the same fate.

Managements inputs through statistical techniques and technical expertise to the
circle members should be provided. However, the QC members opinions should be
given due weightage. That means we should not force the ideas on the minds of
quality circle members.

Facilitators having proper expertise and pleasing manners should be selected. Circle
members’ liking in choosing a facilitators should also be given due weightage.

Themes or problems should not be forced on the circle members.

QCs should be regularly reviewed and Amended.

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Annexure
 Questionnaire

 Bibliography

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BIBLIOGRAPHY
1) Ashwathappa K. ; Human resource Management ; X Edition ; Tata-McGraw Hill
2) Dessler Gary; Human Resource Management ; VIII Edition ; Pearson Education
3) Kothari C.R, ‘Research Methodology; Methods and techniques’, New Delhi, New
Age International (P) limited, Publishers, 2004, PP.33-38
4) Rao Suba P. ; Essentials of Human Resource Management & Industrial Relations
(Text cases & Games) ; II Edition ; Himalaya Publishing House
5) Chhabra T. N. ; Human Resource Management Concepts & Issues ; V Edition ;
6) Dwivedi R. S. ; Managing Human Resources Personnel Management in Indian
Enterprises ; I Edition ; Galgotia Publishing Company
7) Bhattacharya Dipak ; Human Resource Planning ; II Edition ; Excel Books
8) Prasad L. M. ; Human Resource Management ; II Edition ; Sultan Chand & Sons
9) Rao V. S. P. ; Human Resource Management (Text & Cases) ; II Edition ; Excel
Books
10) Bernardi John H. ; Human Resource Management ( An Experimental Approach ); IV
Edition ; Tata- McGraw Hill
11) Dowling Peter & Welch Denice ; International Human Resource Management
(Managing People in a Multi National Context) ; IV Edition; Thomson South Western
12) Beardwell Inn & Holden Len ; Human Resource Management- A Contemporary
Perspective ; I Edition ; McMillan India Ltd.

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QUESTIONNAIRE
(A CASE STUDY ON BHARAT HEAVY ELECTRICALS LIMITED
(Pure Cables), PAONTA SAHIB– 249407)
PART-A

1. Name (if you please) _________________

2. Age (in yrs.) _____________
3. Marital Status
a) Married () b) Unmarried ()
4. Sex
a) Male () b) Female ()
5. Educational Qualifications
a) Literate () b) Illiterate ()
6. If Literate:
a) Below Matric () b) Matric ()
c) Intermediate () d) Graduation ()
e) Post Graduation ( ) f) Any Other ()

7. Department ___________________
8. Designation ___________________
9. Monthly Emoluments __________________
10. Experience in years.
In this organization ---
In other organization ---
Total

11. Category
a) Skilled () b) Unskilled ()
c) Semi-skilled ()

12. Nature of Job

a) Casual () b) Permanent ()

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PART – B
1. Do you have TQM in your organization?
a) Yes () b) No ()
2. Do you have Quality Circles in your organization?
a) Yes () b) No ()
3. At what level Quality Circle in your organization are operated?
a) Top level () b) Middle level ()
c) Lower level ( ) d) At all levels ()
4. How many members are there in Quality Circle?
a) Below 5 () b) 5-10 ()
c) 10-15 ()
5. How frequently the meeting of Quality Circles is held in your
organization?
a) Weekly () b) Fortnightly ()
c) Any other ()
6. What is the duration of the meeting?
a) 30 min () b) 1 hr ()
c) 1½ hr () d) 2 hr ()
7. What is the objective of Quality Circle in your organization?
a) To develop and utilize human resource ()
b) To improve Quality of product and services ()
c) To improve Supervisory skill ()
d) To utilize individual creativity and innovative skill ()
e) All the above ()
8. Does non-members play an important role in Quality Circle
activities.
a) Yes () b) No ()

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9. If yes how they help

a) By recommendations ()
b) By implementing the recommendation ()
c) Any other ()
10. What are the functions of leader of Quality Circles in your
organization?
a) Conducting meetings regularly ()
b) Generating enthusiasm for circle activities ()
c) Acting as link between members and facilitators ()
d) Keeping the meetings on right track ()
e) Training members in problem solving techniques ()
f) All the above ()

11. What are the function of the facilitator in your organization?

a) Serving as a Quality Circle co-ordinator ()
b) Training member leaders and management ()
c) Providing feedback ()
d) Acting as an evaluation of QC operations
and programs ()
e) All the above ()
12. What are the tangible gains from Quality Circles?
a) Better Quality ()
b) Greater cost and effectiveness ()
c) Better productivity ()
d) Better profitability ()
e) Waste reduction and absenteeism reduction ()
f) All the above ()

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13. What are the intangible gains from Quality Circles in your
organization?
a) Enriched quality of work life ()
b) Effective team building ()
c) Better human relations ()
d) Participative culture ()
e) Human resource development ()
f) All the above ()
14. Does absenteeism effect Quality Circles?
a) Yes () b) No ()
15. Is there any sort of coercion used on employees to join Quality
Circle in the your organization.
a) Yes () b) No ()
c) Not at all ()

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