Sample Quality Circle Policy- KIMIN

1. Introduction

Quality Circles: Quality circles are small groups of volunteering employees who meet regularly to
identify, analyze, and solve problems related to efficiency, cost, quality, productivity, and their work
environment. They aim for continuous improvement through teamwork and collaboration. QCs
delve deeper into addressing wider organizational issues through teamwork and collaboration.

Focuses on:

a) More complex or cross-functional problems: QCs typically address broader issues that
might involve multiple departments or functions within the organization. They often require
collaboration and input from various stakeholders.
b) Teamwork-driven approach: QCs are comprised of a group of employees from different
areas who meet regularly to discuss, analyze, and propose solutions to problems.

This policy establishes the framework for Quality Circles (QCs).

2. Objectives

The primary objectives of QCs are to:

 Identify and solve problems: QCs should prioritize improving productivity, process
efficiency, optimization, quality, debottlenecking, equipment utilization, safety, and cost-
effectiveness while eliminating manual activities and saving energy, whether thermal or
electrical
 Improve communication and collaboration: QCs provide a platform for employees from
different departments to share ideas and work together towards common goals.
 Boost employee morale and engagement: Active participation in QCs empowers
employees and gives them a sense of ownership over their work.
 Promote continuous improvement: By identifying and addressing problems
systematically, QCs contribute to a culture of continuous improvement within the company.

3. Membership and Formation

 There will be 3 types of team members:

1. Regular Team Members: Participate in all the activities of the QC Project. Includes
Process Owners ( Circle leader) & knowledgeable execution team members. 5-6
Execution team members are considered a good number on average. Also, regular team
members should not be asked to serve more than one quality circle project.
2. Ad hoc Team Member: Provides expertise on an as-needed basis. A senior leader who
oversees the project at the highest level also acts as a Facilitator, Sponsor or champion.
Helps in locating the resources for the teams.
3. Resource Team Members: Usually, members of ancillary departments such as
accounts, Human resources, etc.

 QCs will be formed voluntarily by groups of employees who are knowledgeable & share a
common work area or interest.
 Select employees who have access to & understanding of the data required to learn about &
measure the process or problem.

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 Management will provide support and resources to QCs, including training, meeting
space, and access to necessary data.

4. Activities and Meetings

 Each QC will have a designated Circle leader at least at the rank of process owner.
 The Circle leader chairs the QC meetings & will be responsible for ensuring proper
documentation of Meeting plans, meeting minutes, and progress reports, which will be shared
with the Facilitator & management regularly.
 The Facilitator will be an Ad hoc team member preferably at a rank of senior management,
and will ensure that QC activities are on the right track & are in line with the organization's
objective of improving Process efficiency and cost-effectiveness.
 The Execution team members will be the knowledgeable members, who can identify the
problem/ scope of improvement, brainstorm for the root cause, and develop, test & implement
the improved solution.
 QCs will meet regularly, at least once every 15 days to discuss chosen topics and work on
problem-solving activities.
 Discuss the progress in the process review meeting every week.
 Meetings will follow a structured agenda that includes problem identification, Gemba walk,
root cause analysis, solution development, implementation, and evaluation.
 QCs are encouraged to use creative problem-solving techniques such as the PDCA (Plan-Do-
Check-Act) cycle and fishbone diagrams and data analysis tools to identify and address
issues effectively.

5. Process of Quality Circles

Quality Circles follow a structured process:

 Identification of Problems: Team members identify problems/improvements related to the

following and define their scope:
a)Process efficiency.
b)Cost Effectiveness.
c) Process/ Product quality.
d)Repeating problems.
e)Downtime/Changeover time
f) Process Bottlenecks
g)Manual Activity elimination
h)Energy savings - Thermal or Electrical.

 Data Collection and Analysis: Data is gathered and analyzed to understand the root cause
of the problems.
 Generation of Solutions: The team brainstorms and generates potential solutions to the
identified problems.
 Selection and Implementation: The best solution is chosen, and a plan is formulated for
implementation.
 Review and Evaluation: The results of the solution's implementation are reviewed, and
adjustments are made as needed.
 Standardization: Successful solutions are standardized into existing processes to ensure
continuous improvement.
 Timeline: It is recommended that every Quality Circle be completed within three months,
followed by a three-month performance review, stabilization, and running as a normal routine
process.

6. Recognition and Reward

 The company recognizes the valuable contributions of QCs to overall improvement.

 QCs that demonstrate exceptional performance and achieve significant results will be
recognized and rewarded through various means, such as public recognition, team outings,
and performance appraisals.

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 Individual members who consistently demonstrate leadership, initiative, and problem-solving
skills within their QCs may be eligible for individual recognition or career development
opportunities.
 Participation in improvement activities will be an integral aspect of personal KRAs, which
enables transparent measurement of individual contributions and results.

 Selection Criteria: The Core committee will evaluate the submitted Quality circle reports,
problem-solving process, and implemented solutions and will announce the QC appraisal
every 6 months. The selection can be made based on criteria such as:

a) Based on the effectiveness of benefit after solution implementation.

b) Based on quantifiable improvements in areas like cost reduction, defect reduction,
process efficiency, resource utilization, downtime/ changeover reduction, increased
revenue, or customer satisfaction, etc.
c) Significance and impact of the identified problem.
d) Collaboration and teamwork demonstrated throughout the process.
e) Complexity of the solved problem/ improved process.
f) Most innovative solution.

7. Continuous Improvement

 The QC program will be reviewed periodically (preferably in operations/core committee

meetings) to assess its effectiveness and identify areas for improvement.
 Feedback from QC members, management, and other stakeholders will be used to refine the
program and ensure it continues to meet the needs of the company.

8. Additional Provisions

 All QC activities must comply with company policies and procedures, as well as all applicable
health, safety, and environmental regulations.
 Participation in QCs is voluntary, and employees will not be penalized for declining to
participate.
 Management is committed to providing a supportive environment where QCs can thrive and
contribute to the success of the company.