QUALITY CIRCLES

OPERATIONS & TOTAL QUALITY MANAGEMENT

JOHN FLOCERPIDO R. ANTONICO

BSBA FM 3-3
JULY 2021

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OPERATIONS &
TOTAL QUALITY
MANAGEMENT

Quality Circles
Quality circle is an alternative to the dehumanizing concept of the division of labor, where workers
are treated like robots, to quote certain criticism of Taylor’s scientific management principle. This week
illustrates how the quality circles are formed and function to encourage the workers to take part in all
shop floor decisions to achieve overall improvement in performance.

Keywords:

 Scientific management and Quality circles

 Quality Control Circles (QCC)
 Small group activity (SGA)
 International quality circle conventions
 National Labor Relations Board (NLRB)
 BHEL and TELCO
 Quality Circle Forum of India (QCFI)

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  Structure of a Quality Circle

TABLE of CONTENTS
QUALITY CIRCLES

Table of Contents 3

7.1 What is Quality Circles? 4

7.2 Origin of Quality Circles 5

7.3 The American Scenario 6

7.4 The Indian Scenario 7

7.5 Significance of Quality Circles 8

7.6 Objectives of Quality Circles 8

7.7 Nature of Problems That Can Be Solved by Quality Circles 8

7.8 Ten Conditions for Successful Quality Circles 10

7.9 Roadmap to be Followed in a Quality Circle Meeting 11

7.10 Characteristics of an Effective Quality Circle Meeting 12

7.11 Structure of a Quality Circle 14

7.12 Conclusion 15

Sources 16

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7.1 What is a Quality Circles?

A QUALITY CIRCLE is a volunteer group of workers, usually led by their supervisor, who are
trained to identify, analyze, and solve work-related problems and present their solutions to
management in order to improve organizational performance and motivate and enrich employees'
work.

I. Definition – A Quality Circle is volunteer group composed of members who meet to talk about
workplace and service improvements and make presentation to their management with their
ideas (L.M. Prasad, 1998)

II. Purpose
1. To contribute to the organization's or a department's improvement and development.
2. To break down any barriers that may exist within the current organizational structure in
order to foster an open and free exchange of ideas.
3. To cultivate a positive attitude and a sense of involvement in the service's decision-
making process.
4. It is worthwhile to respect humanity and to create a happy workplace.
5. To fully demonstrate human capability and, in the long run, to draw out the incite
possibilities.
6. To improve product and service quality.
7. To improve competence, which is one of all organizations' goals.
8. To reduce long-term costs and redundant efforts.
9. Greater efficiency reduces the time it takes to convene information and its
subassemblies.
10. For customer satisfaction

III. Benefits of Quality Circles

1. Personal growth
2. Social development
3. Opportunity of gaining knowledge
4. Leadership skills development
5. Improved communication skills
6. Job fulfillment
7. Healthy work environment
8. Organizational benefits

IV. Quality Circle Control and It’s Process

Quality circles have been shown to be an effective method of encouraging continuous improvement
in almost any type of workplace. There have even been empirical studies that show that when
implemented correctly, quality control circles allow for more work to be completed with fewer people
than jobsites that do not use this concept.
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 With each meeting, most quality circles will go through a
predetermined process. In general, this will adhere to the Plan, Do,
Check, Act process, which is ideal for projects involving continuous
improvement. Following this process not only makes it easier to
identify potential solutions and implement them, but it also has an
established flow for moving from one process improvement to the
next. This is significant because this type of group meeting is
scheduled on a regular basis, with new problems identified and
resolved on a regular basis.

7.2 Origin of Quality Circles

Quality circles were founded in the 1950s by W. Edwards Deming,
who pioneered the concept. Toyota liked the concept and began
implementing it in a variety of ways across their manufacturing facilities and
other areas. Companies all over the world began to implement this strategy,
and by 1978, there were over a million circles in operation, with ten million
workers involved in Japan alone.
J.M. Juran, a world-renowned expert in the field of quality, was
invited to speak on ‘Quality Management' by the Japanese Union of
Scientists and Engineers (JUSE) in 1954. Juran emphasized the importance
of viewing every function in the organization as a 'Quality Function,' thereby
spreading quality throughout the organization.
Dr. Korau Ishikawa, widely considered as father of ‘Quality Circles’,
saw the potential of significant contribution from the large work-force to
quality, productivity and other work-related issues. JUSE funded research in 1961 that combined
behavioral science theories with quality control concepts. Dr. Ishikawa led this research work.
He formed the first Quality Circle in Nippon Telegraph and Cable Company in 1962. The concept
spread like wildfire, engulfing the entire Japanese industry within a few years.

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7.3 The American Scenario
QC activity has skyrocketed in the last five years. According to a 1982 study conducted by the
New York Stock Exchange, 44 percent of all companies with more than 500 employees had quality
circle programs. Almost three out of every four had begun after 1980. Although no hard data are
available, a good estimate is that over 90 of the Fortune “500” companies now have QC programs in
their structures. They are widely used by well-known companies such as IBM, TRW, Honeywell,
Westinghouse, Digital Equipment, and Xerox. In any discussion of the prevalence and popularity of
quality circles, the question "Why are they so popular?" inevitably arises. There is no simple answer, as
there is with most management trends. The success of high-quality Japanese products at competitive
prices in the United States is most likely the single most important reason.

The Japanese invasion of the US auto, steel, and electronics markets prompted many people to
investigate what the Japanese were doing to explain their success. The press, as well as many academics,
attributed Japan's success to its superior management approach, which includes quality circles. As a
result, people began to see quality circles as a means for American companies to regain competitiveness.
Positive press coverage of some early applications of quality circles in the United States bolstered this
perception. Some qualities of quality circles have also aided in their popularity.

First, the programs are affordable: for a set fee, executives can purchase a standardized package
that includes training and support materials as well as instructions on how to proceed. Many managers
like the turnkey approach because it is similar to how they buy other things, such as machines and
training programs. Second, because quality circles do not have to include everyone, management can
easily control the number of people involved as well as the program's size and cost (primarily for start-
up and training). It can test the waters with a small number of quality circles and expand the number if
they work with little risk.
Third, because quality circles lack decision-making authority, managers are not required to
relinquish any control or prerogatives. Also, because they are parallel to the organization’s structure, top
management can easily eliminate them if they become troublesome.
Finally, as everyone knows, quality circles are a fad. Some companies have tried quality circles
on a trial basis simply because they symbolize modern participative management. In a number of cases
we studied, the CEO of the company had seen a TV program or read a magazine article praising circles
and decided to give them a try.

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7.4 The Indian Scenario
QCFI-QUALITY CIRCLE FORUM IN INDIA – the concept was first introduced by BHEL 1,

Ramachandrapuram Hyderabad in the year 1981 in India with the initiation of Mr. S.R. Udupa - GM-

Operations. It was introduced to impart training, education, about quality circle to industries. The

summary of concept was discussed as follows.

 Expose middle level executives to the concept.

 Explain the concept to the employees and invite them to volunteer as members of Quality
Circles.
 Nominate senior officers as facilitators.
 Form a steering committee.
 Arrange training of coordinators, facilitators in basics of Quality Circle approach,
implementation, techniques, and operation. Later facilitator may provide training to Circle
leaders and Circle members.
 A meeting should be fixed preferably one hour a week for the Quality Circle to meet.
 Formally inaugurate the Quality Circle.
 Arrange the necessary facilities for the Quality Circle meeting and
its operation.

INDIAN COMPANIES OBJECTIVE OF QUALITY

CIRCLE

 People – building philosophy, providing self-

motivation.
 Philosophy of managing.
 Is bound to succeed where people are
respected and are involved in decisions.
 Calls for a progressive attitude.

1
BHEL is an Indian government owned engineering and manufacturing enterprise based in New Delhi, India.

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7.5 Significance of Quality Circles
A quality circle is a participative management technique that enlists employees' assistance in
resolving problems related to their jobs. Circles are formed by employees who work together in an
operation and meet at regular intervals to discuss quality issues and devise solutions for improvement.
The concept allows circle members to use their wisdom, creativity, and experience to improve the work
they are doing by converting difficult problems into opportunities, which contributes to the
development of the employees and benefits the organization as well. The concept fosters a sense of
belonging in circle members, and they believe they play an important role in the organization.

7.6 Objectives of Quality Circles

The Quality Circle's broad objectives include:
1. Improving quality, productivity, safety, and cost reduction.
2. To provide employees with opportunities to apply their knowledge and creativity.
3. To promote teamwork and a cohesive culture among employees of various levels and sections.
4. To encourage self- and mutual development, including the development of leadership skills
5. To meet employees' self-esteem and motivational needs.
6.

7.7 Nature of Problems That Can be Solved by Quality

Circles2
1. Decreased performance levels - Employees may experience periods when they are less
productive than usual. A drop in productivity can have an impact on other team members and
overall goals, so it's critical to keep employees motivated.

2. Being understaffed - Managers must recognize when it is necessary to hire another team
member to assist in the fulfillment of responsibilities within their department. Because the hiring
process takes time, it is beneficial to seek assistance from other managers and human resources
professionals when looking for a new candidate.

2
Source: https://www.indeed.com/career-advice/career-development/management-challenges

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 3. Lack of communication - Another difficulty that managers face when supervising teams is
ensuring effective communication. Because each team member has a unique personality, there is
always the possibility of miscommunication.
4. Poor teamwork - When employees spend a lot of time on individual tasks, they may lose focus
on collaboration. Managers should revisit the purpose of a project to re-establish teamwork.
Managers who take the time to recognize their team's efforts and clarify the purpose of their
work frequently see an increase in motivation.

5. Pressure to perform - Some managers, particularly new managers, may feel pressured to
achieve greatness from the start of their role. If you are frequently stressed about your
leadership position, take some time to reflect on why you were hired for the position in the first
place. Recognize that leaders learn from experience and mistakes. While planning helps, you will
likely face unexpected situations. Your ability to lead is reflected in how you choose to resolve
conflicts and respond to challenges.

6. Absence of structure - The absence of structure is a common challenge for managers in the
workplace, especially when overseeing a new team. Depending on the work environment, some
teams may require more close supervision than others to maintain productivity levels.

7. Time management - Managers frequently struggle with balancing their own tasks because
they are responsible for supervising their team members and communicating with other
department heads. Scheduling time throughout the day to do specific work is one way to
prioritize your own work responsibilities. Let your team know the times you'll be available to
them and the times you plan to focus on your work.

8. Inadequate support - Managers may require approval from a company's executive team or
the business owner before proceeding with a project. When the decision-making process takes
longer than expected, the team's overall progress may be slowed. The most important thing to
do in this situation is to be honest with your team members.

9. Skepticism - Teams frequently question management's transparency when they feel

disconnected from their supervisors, especially if certain employees believe they are doing more
work than others. When people believe they are not a part of the plan, their trust is eroded.

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 10. Difficult employees - Managers are sometimes in charge of employees who cause conflict in
the workplace. One common challenge that managers face is determining how to properly
address any issues before they become major issues. To address specific concerns, request
feedback from your team members to learn about any issues they may have with completing
work or communicating with team members.
11. Transition from coworker to manager - People who are promoted at work frequently find
themselves in charge of former coworkers. This situation may appear awkward at first, but with
time and the right leadership, it may become less so. Ensure team members that you're there to
support their efforts and ensure they have everything they need to accomplish their goals.

12. Weak workplace culture - When teams feel like they're not connected with the rest of the
workplace, they could experience a decrease in motivation. Teams that feel like they are part of
a bigger picture have more confidence and trust. One way to promote a strong work culture is
by planning lunch outings and rewarding employees who exceed expectations.

7.8 Ten Conditions for Successful Quality Circles

1. Be punctual
2. Everyone to contribute (to teach and to learn)
3. To listen
4. Don’t judge
5. Don’t take offence
6. Respect each other’s cultural differences
7. Respect for all ideas
8. All feel free to speak
9. Don’t be critical
10. Take every idea and run with it

7.9 RoadMap to be Followed in a Quality Circle Meeting

1. QC Circle meetings help members to work together towards the same goals. Members
exchange ideas and information, get to know each other, and develop a spirit of cooperation

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 and a sense of solidarity. But if the meetings are poorly managed, the activities will stagnate,
and members will become demotivated.

2. If meetings are to be effective:

a. They should be well planned.

b. All members should attend.
c. Roles should be distributed: moderator, secretary, presenter, and others.
d. The purpose of the meeting should be agreed.
e. Brainstorming sessions should be held to generate new ideas.
f. All members should give their opinions.
g. Minutes should always be taken.

3. To plan meetings, you need to decide on their duration, frequency, timing, and place:

a. Duration: The length of meetings will vary according to such factors as workplace
conditions, the agenda, and their frequency. However, the average meeting will last
for 30 to 60 minutes.

b. Frequency: The number of meetings per month will vary according to their average
duration. However, they should take place at least twice a month. It is best to set a
target number of meetings to be held in the next one-month period and try to keep
to this target.

c. Timing: The times when meetings are held will vary according to work requirements
and the other demands on QC Circle members’ time. When they meet during
regular working hours, they must obtain the approval of a manager in advance. It is
advisable to:
i. Include QC Circle meetings in the monthly operational schedule.
ii. Set up specific dates for meetings.
iii. Use a message board to determine when all members can meet.
d. Place: Meetings should be held in one of the following places:
i. The workplace.
ii. Conference rooms near the workplace.
iii. Dining rooms or rest areas.
iv. Outdoor locations within the factory grounds.
v. Locations away from work, such as recreational areas, coffee shops, and
educational facilities.

7.10 Characteristics of an Effective Quality Circle Meeting3

1. A small group of people who perform similar tasks.

3
Source: https://accountlearning.com/quality-circles-meaning-characteristics-advantages-problems/

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 The quality circle is made up of people who do similar work. However, this does not
preclude the circle from consulting specialists or others. In fact, ideas and solutions can be
found in unexpected places.

2. The number of people in the circle should be limited.

According to some, the smaller the circle, the better the coordination and homogeneity.
The circle should resemble a team rather than a committee. It should have between three and
ten members, depending on the size of the department. No one will feel neglected or
sidetracked as suggestions for removing any snags or improving productivity are solicited from
every member of the department.

3. Meeting on one's own initiative.

People are invited to join the quality circle but are not required to do so. The members
feel the need to meet together to discuss and devise ways to improve the functioning of their
areas concerned. Hence, joining a quality circle is voluntary and not forced upon.

4. Holding regular weekly meetings.

Meeting duration and frequency vary even within Japan (where this concept originated),
with meetings lasting at least an hour every week being preferred. However, the frequency and
duration of each meeting should be determined by the circle members, who will consider all
factors such as the severity of the problem, the urgency of the problem, the number of
problems, and so on.

5. They work under the supervision of their own supervisor.

The quality circle is solely concerned with workplace issues. As a result, supervisors of
the work area are the best people to lead the group because they are well-versed in the
department's operations. The idea of electing or selecting the leader from among the quality
circle members is discouraged because it does not work well.

6. Identifying, Analyzing, and Solving.

The circle identifies their own issues in their respective work areas. Members of the
circle are not encouraged to point out the flaws of others.

7. Providing Management with Solutions.

Following the collection of data and the development of new ideas in consultation with a
diverse range of people, the members reach a conclusion that, if implemented, will deliver the
goods. The group members should present the final idea (solution) to management together
(not by the leader alone or any other member). Surprisingly, the circle solutions (projects) are
so meticulously planned that their outright rejection (not preferred for implementation) by
management is uncommon.

8. Self-Deployment.
The quality circles are formed to facilitate the implementation of their solutions as they
deal with problems across the fence in the next department, which is completely isolated from
it. Only each department is responsible for their babies.

9. Meetings can take place at any time.

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 Meetings of circle members may not be scheduled primarily during their normal working
hours. As it may affect their working and thereby production. Also, if the work is done in shifts,
then the circle members may come different shifts and a common free time for all may be
difficult to spare within normal working period. As a result, such meetings could take place at
any time during the working day or on a holiday.

10. Cooperation of all the group members.

Every member of the circle should be aware of their role and purpose with the activity
that should be accomplished by the circle. Each and everyone’s effort will contribute to the
effectiveness of the circle as a whole, thus promoting quality in every projects.

7.11 Structure of a Quality Circle

1. Steering Committee

 This committee comprises of senior managers with executive powers and will have following
functions to perform towards Quality Circle activity.
 Give full support to the activity in their respective areas.
 Develop working methodology and overall framework for QC activity.
 Establish program objectives and requirement of resources.
 Provide policy guidelines and directions.
 Nominate coordinator and facilitators.
 Attend Management presentations of QCs
 Obtain feedback from the facilitator and act on his recommendations.
 Decide on the rewards to QCs, based on their performance.
 Continuously monitor the QC activity.

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2. Facilitator

 He is a senior officer of the department nominated by the Steering Committee to carry out
following functions, which will help and consolidate the Quality Circle activities in his
department.
 Attending the Quality Circle meetings at least for a brief time.
 Giving guidance to Circles for conducting the meetings as per laid down system and ensuring
that proper records are maintained of each meeting.
 Arranging for the necessary training to Circle members with the help of the coordinator.
 Providing the necessary facilities and resources to the Circles.
 Arranging for any external help required by the Circles.
 Resolving the problems faced by the Circles.
 Acting as a link between Circles and the Management.
 Collection and dissemination of information, publications, literature etc. related to Quality Circle
activity.
 Arranging periodic get-togethers of the Circle members with participation of Management
personnel.
 Cultivating and promoting participative culture within his department.

3. Leader

 A person chosen by the Circle members from amongst themselves. Leader can change by
rotation. During starting phase of a Circle, a supervisor can be the Leader but eventually, any
member can be nominated as a Leader by the Circle members. Functions of the Leader are:
 Convening and conducting the Circle meetings as per the laid down schedule.
 Maintaining all the documentation related to the Circle activities.
 Arranging for the necessary training of the Circle members with the help of Facilitator.
 Ensure involvement of every member.
 Setting goals and reviewing progress during each meeting.
 Drawing an action plan and delegate responsibilities to the Circle members.

4. Members

 Members are the basic and most important element of Quality Circles. They are mostly drawn
from the work area where the Quality Circle is formed and continue to be members of the Circle
as long as they are the part of that work area. Their functions are:
 Be regular and punctual for the Quality Circle meetings.
 Get conversant with various statistical tools recommended for problem solving.
 Identify problems in the work area and put these forth for consideration in the Circle meeting.
 Contribute ideas for problem solving.
 Cooperate with other members and the leader to form a cohesive team.
 Take part in Management presentations.

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7.12 Conclusion
Quality Circle is not a one-time attempt by the organization; rather, it is a long and consistent
process that is implemented whenever a problem persists. Regular meetings are held, problems are
identified, strategies are reinforced, and ongoing monitoring is carried out. No reward is offered to the
members of the Circle for such meetings and trouble shooting. However, whether overtly or covertly,
such quality circles benefit both individuals and organizations. Furthermore, Quality Circle boosts
employee confidence, bringing out their hidden talent to benefit the organization. Employees enjoy
greater harmony when all members meet on a regular basis. As a result, top management should take
steps to create such an environment so that management and employees can work together to ensure
the organization's smooth operation.

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Sources
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Perspective
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 Edward, L. and Susan, M. January 1985. Quality Circles After the FAD
Retrieved from: https://hbr.org/1985/01/quality-circles-after-the-fad

 Ms. Harleen, K. August 08, 2016. Role of Quality Circle as A Problem-Solving Tool in An
Organization.
Retrieved from: http://www.ijstm.com/images/short_pdf/1472032999_190_IJSTM.pdf

 Nikhila, C. (n.d). Quality Circles (Q.C): Meaning, Objectives and Benefits

Retrieved from: https://www.businessmanagementideas.com/management/quality-
circles/quality-circles-q-c-meaning-objectives-and-benefits/6302

 Sharma, B. (2014). Quality Circles and It’s Significance.

Retrieved from: https://prezi.com/kuydsgzpliic/quality-circle-and-its-significance/

 Vinayakanv, C, (2014). Importance of Quality Circle in an Organization

Retrieved from: https://www.slideshare.net/vinayakanvkannur/quality-circle-41661990

 Vienna, (2007). United Nations Industrial Development Organization. A Roadmap to Quality; An

E-learning Manual for Implementing Total Quality Management Vol.2
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