Quality Control Circles (QCC)

The concept of quality circles or quality control circles originated in Japan. In April 1962, Dr K. Ishikawa presented this idea in the inaugural issue of JUSE’s journal Gemba to QC. In the last 36 years, this concept has been introduced in as many as 130 countries. How­ever, the quality circle concept is well established only in ASEAN countries such as Japan, South Korea, the Peoples Republic of China, Taiwan, etc.

Quality control circle (QCC) or quality circle (QC) is a small team of people usually from the same work area who voluntarily meet on a regular basis to identify, investigate, analyse and solve their work-related problems. QCCs adopt a democratic process and introduce a participative management culture in the organization. In the QCC philosophy, the circle members share their ideas and expertise with the management. All people in the circle put their minds together to solve work-related problems. The circle presents the solutions to management and implements them after approval. Review and follow up after implementa­tion are also responsibilities of the circle.

1. Concept of Quality Circle

The quality circle concept has three major attributes—(1) QC is a form of participative management, (2) QC is a human resource development technique and (3) QC is a problem­solving technique.

It is based on the concept that suggestions affecting the workplace should come from those who perform the work and who have the greatest knowledge about the job. The con­cept assumes that people closest to the problem better understand the nature of the prob­lem and what is or is not a feasible solution. It assumes that a group of individuals working together will invariably come up with better solutions than one individual working alone. Quality circles are a specifically structured form and mode of participative management.

2. Philosophical Foundation of Quality Circles

• The belief that people will take pride and interest in their work if they have autonomy and control over the decisions that affect them.
• It helps to develop a sense of belonging in employees towards the organization. The con­cept of quality circles relies entirely upon intrinsic motivation, i.e. from increased satisfac­tion, involvement in decision making and the opportunity to satisfy higher order needs (such as high achievement orientation, individual dignity, etc.)
• A belief that each employee desires to participate in making the organization a better place to work.
• The recognition of the importance of the development of human resources. It implies the development of their skills, capabilities, confidence and creativity through the process of education, training, work experience and participation.
• A willingness to allow people to volunteer their time and effort for any improvement in the performance of the organization.
• The importance of each member’s role in meeting organizational goals. Quality circles were thought of and created as an effective means of enabling every one involved in the organization to share responsibility, knowledge, experience a team effort for quality, pro­ductivity and perfection.
• An involved and respected employee is a productive employee whose work is of the highest quality.⁶ Table 9.5 indicates how a healthy group such as a quality circle is an important vehicle through which individual needs can be satisfied.

3. Characteristics of Quality Circles

The characteristics of quality circles as a management tool for improving quality are listed below:

1. Quality circles are small primary groups of employees/workers with a group size ranging between 2 and 3.
2. The membership in a quality circle is voluntary.
3. The area supervisor leads each circle. They are normally coordinated centrally in an orga­nization by a person who has been trained as a facilitator.
4. The members meet regularly according to an agreed schedule.
5. The circle members are specially trained in the techniques of problem solving and anal­ysis in order to play their roles effectively.
6. The basic role of quality circles is to identify and solve work-related problems for improv­ing quality and productivity.
7. QCs enable their members to exercise their hidden talents, creative skills and compe­tence for tackling challenging tasks and thus contribute to their self-development.
8. It also promotes the mutual development of members through cooperative participation.

9. The circle work is characterized by attributes such as high skill variety, task identity, task significance, autonomy, goal setting and feedback. These attributes contribute to job enrichment of the members.
10. It also contributes to job satisfaction of members by creating feelings of accomplish­ment from identifying and solving challenging problems.
11. It provides members with opportunities for receiving public recognition from the com­pany’s management in the form of company-wide presentation of their work.
12. The members also receive recognition in the form ofmementos, certificates and privileges. In some cases they also share in productivity gains that might be the result of their work.
13. It also contributes to their self-esteem and self-confidence through the acceptance of their recommendations by the management.
14. The circle members participate in the organization’s decision and policies by way of identification and solution of work-related problems and the acceptance and imple­mentation of their recommendations by the management.

4. Objectives of Quality Circles

The main objectives of quality circles are:

• To improve the quality and productivity and thus contribute to the improvements and development of the enterprise.
• To reduce the cost of products or services by waste reduction, safety, effective utilization of resources, avoiding unnecessary errors and defects.
• To identify and solve work-related problems that interfere with production.
• To tap the creative intelligence of the persons working in the organization and to make full use of its human resources.
• To motivate employees to apply their knowledge and skill to complete a range of challeng­ing tasks.
• To improve communication within the organization.
• To increase employees’ loyalty and commitment to the organization and its goals.
• To respect humanity and build a happy bright workplace environment.
• To enrich human capability, confidence, moral, attitude and relationship.
• To satisfy the human needs of recognition, achievement and self-development.

5. Basic Organizational Structure of Quality Circles

A quality circle should have an appropriate organizational structure for its effective and efficient performance. The organizational structure of quality circle may vary from indus­try to industry, but it is useful to have basic framework as a model. In a typical organiza­tion, the structure of a quality circle may consist of the following elements:

A steering committee: The steering committee is at the top of the structure of the quality circle. The General Manager or Works Manager or Senior Executive heads it. Its member­ship includes representatives from the top management personnel and human resource development executives. It may also include the union representative. It establishes policy, plans and directs the programme as a whole including organizing training for the personnel. The steering committee meets usually once in a month.

Coordinators: The coordinators may be personnel or administrative officers. They coor­dinate and supervise the work of the facilitators and administer the programme. In small organizations (with less than 500 employees), one person acts as both the administrator and facilitator. Large organizations (usually with more than 5,000 employees) generally need cor­porate and unit level coordination and several facilitators. The coordinators help in case of difficulties and facilitate arrangements and interdepartmental communication. The admin­istrator is a person from the middle management level.

Facilitator: A facilitator may be a senior supervisory officer or a foreman. He coordinates the work of several quality circles through the circles leaders. His role is to keep the circles on track and enthusiastic. A facilitator may manage up to ten circles. A facilitator is usually from one of the three departments—quality control, production or training.

Circle leader/deputy leader: Circle leaders may be from among the lowest level of supervi­sors. A circle leader organizes and conducts circle activities. Circle leaders interact among themselves, and with the facilitator besides their own group members. Initially, many organi­zations train supervisors to become circle leaders. However, when the organization develops a quality circle culture, even non-supervisory personnel can become effective circle leaders.

Circle members: Circle members may be line and/or staff workers. The programme cannot exist without circle members. They are the largest part of the quality circle structure. They are the lifeblood of quality circles. The circle members should attend all meetings as far as possible, offer suggestions and ideas, participate actively in group process and attend train­ing programmes seriously with a receptive attitude.

6. Role of the Quality Circle Member

• Be focused on organizational problems/objectives related to the work at hand at all times.
• Not press for inclusion of personal problems.
• Demonstrate mutual respect.
• Offer views, opinions and ideas freely and voluntarily during the problem-solving process.
• Attend all meetings except when unavoidable.
• Contribute to finding solutions to problems.
• Contribute to implementing solutions.
• Attend training seriously with a receptive attitude.
• Acquire skills to contribute to the problem-solving activities of the circle.

7. Role of the Quality Circle Leader

• Conduct meetings and ensure participation by all members.
• Help in collecting data related to problems.
• Transmit QC suggestions to facilitator.
• Interact among themselves and facilitator beside their own group members.
• Present solutions/suggestions to management.
• Maintain relevant records of meetings.
• Ensure implementation of solutions by the group.
• Keeping the circles informed about the status of previously submitted suggestions.
• Keeping meetings positive and on track.
• Train circle members in group processes and in the use of tools and techniques for gener­ating ideas and problem solutions.

8. Role of the Facilitator

• Coordinate the work of several QCs through leaders.
• Serve as a resource to the group/circle.
• Arrange for expertise from other groups/agencies.
• Keep the circles on track and enthusiastic.
• Acquire skills through training programmes.
• Transfer skills to members of QCs.
• Transmit proposals/solutions to management.
• Arrange for training of QC members.
• Provide feedback to members.
• Provide feedback to the management.
• Maintain budgets and keep cost records.
• Help circles to provide presentations to the management.

The success of QCs depend mainly upon the proper selection of suitable personnel as facilitators. A facilitator has to serve as a coach for the circle leaders, a process consultant to the circles and a liaison man to the management.

9. Qualities Required for a Facilitator

• He should be able to train QC leaders and members in QC techniques.
• He should have leadership qualities and organizational abilities in participative manage­ment.
• He must have skills to motivate people and keep QCs on track.
• He must be able to express his ideas and the QC philosophy.
• He must be able to plan, organize and conduct meetings and make presentations to management.
• He must have the ability to contact and gain support from all levels of management.

10. Role of the Management (Steering Committee)

• Officially announce the initiation of the QC movement and stress the necessity to estab­lish QCs and highlight its features and utility.
• Assist/contribute to the development of the QC models and structure.
• Provide opportunities to QCs to present their solutions and to implement accepted solu­tions after evaluation.
• Provide resources—space, time, training facilities and finance (if needed).
• Ensure adequate training opportunities to facilitators, QC leaders and members.
• Consider suggestions of QCs fairly and justly.
• Recognize the contributions of the facilitator and the quality circle members.
• Encourage the movement in general.
• Communicate the decisions to QCs generally in two weeks.
• Arrange for external specialist help when requested by circles.
• Develop guidelines for measurement of circle activities so that cost effectiveness can be monitored.
• Periodically review the progress.

11. Steps for Establishing QCCs

The following steps can be used to establish QCCs:

1. The management is made aware of the QCC process through management briefing.
2. The feasibility of the QCCs is analysed.
3. A steering committee is formed.
4. A coordinator and an in-house instructor are selected.
5. Potential areas for initial circles are selected.
6. QCC presentations are made first to line supervisors in identified areas, divisions or departments.
7. Coordinators and middle management receive extensive training on the process and their roles.
8. Supervisors who are interested volunteer and receive training.
9. Following training, QCC presentations are made to the employees who report to the newly trained supervisors.
10. Employees volunteer to be members of a circle and receive training.
11. A circle is formed and begins work.
12. A circle usually consisting of 6-8 members is formed.
13. Circle members should meet, ideally, once a week on a regular basis.
14. In the first meeting, the circle members select a name for their circle and elect a leader to conduct deliberations of their meetings.
15. The members of the circle fix a day, time and venue for their weekly meeting.
16. Circles work on a systematic basis in solving problems and not just discussing them.
17. Management must ensure that solutions are implemented quickly once they have been accepted.
18. Management recognizes appropriate and proper recognition for the solutions.

Box 9.3 discusses how Solar Semiconductor received a prestigious award for its quality circle activities.

12. QCC Operation Cycle

The basic purpose of quality circles is to identify and solve work-related problems. The circle members normally meet once a week for one hour. In the early meetings, time is devoted mainly to train the circle members. Once they have acquired the fundamental skills for problem solving and mastered the quality analysis techniques they start working on prob­lems. During the quality control circle process, each problem passes through various stages of the operational cycle (shown in Figure 9.3).

Box 9.3 Solar Semiconductor Quality Circle Bags Quality Award

Solar Semiconductor produces innovative, high quality PV modules using mono- and multi­crystalline cells and offers its products and services to the worldwide solar PV module market. As a socially responsible, global energy producer, Solar Semiconductor offers an unwavering commit­ment to its customers. Solar Semiconductor bagged the Par Excellence Award at the 22nd National Convention of Quality Circles, organized by Quality Circles Forum of India (QCFI), at Vadodara, Gujarat in November 2008.

The three-day meet attracted 664 quality circles and 6000 delegates, from top notch companies which included the Tata Group, the Birla Group, the Reliance Group, the TVS Group, MNCs like Fag Bearings, Saint Gobain, giant public-sector undertakings such as BHEL, BEL, NMDC, Nalco, Balco, SAIL, Vizag Steel Plant, HAL, Mahindra & Mahindra, etc. All the 664 quality circles presented their case studies which were evaluated and awards were announced in the categories of “Par Excellence,” “Excellence,” “Distinguished” and “Meritorious.”

Solar Semiconductor, a young company compared to all major competitors and the only one in the domain of manufacturing Solar Photovoltaics, participated for the first time in the National Convention and was awarded the “Par Excellence Award.” Another Quality Circle team from Solar Semiconductor also bagged the “Excellence Award.”

Vishnu Reddy, Vice President of the company said, “Even though we are a young company, we have formed as many as 21 quality circles in a very short time. Our quality circle teams have been working with the right attitude and enthusiasm to make Solar Semiconductor a world class organi­zation in the field of Solar Photovoltaics.”

Source: Adapted from www.solarsemiconductor.com, accessed March 2010.

13. QCC and Employee Empowerment

The management needs to address issues concerning the empowerment of its people. The fundamental philosophy of QCC is human resource-oriented. Therefore, QCC activities should reflect the following:

• Employees should clearly understand what is required of them.
• All the tools needed for the successful performance of the particular work should be avail­able and accessible to the employee.
• People should know how the company defines success.
• Rewards must be based on clearly defined performance standards.
• People should have knowledge and skills to do the job.
• People should take part in problem solving at their workplace.

14. How to Empower Employees?⁷

The ten tasks that management must identify and do in order for individual employees to be empowered are:

1. Understand that there is a need for change. Change is a process with a beginning and without an end. As a consequence, the organization must effectively communicate why it needs to change for continual growth.

2. Provide a clear role to play. The individual will lose interest unless specific roles of authority and responsibility are defined. The participant must know where he or she is going before the plan is made.
3. Provide for appropriate education and training. Education provides the whys, whereas training provides the hows. Both are important. However, make sure that the combina­tion is not at the expense of one or the other.
4. Provide the resources to get the job done. No amount of delegated authority or responsi­bility can guarantee success, unless applicable resources are within the jurisdiction of the empowered team.
5. Allow the participants the freedom to be creative and innovative. In the process of exer­cising this freedom, mistakes may happen. Do not hold it against the team’s career path or retaliate with a demotion or withholding a merit increase. Instead, look at the failures and mistakes as learning experiences and incorporate them in your experiences.
6. Allow and encourage the freedom to “rock the boat” without fear. The days of label­ing someone as a troublemaker or a person with an attitude problem must be done away with. The person who challenges status quo fears of any kind is truly practising empowerment. It is through this challenge that different and/or improvement events will happen. Unless something changes, you will never change. Rocking the boat is one way to bring about change.

7. Give people the authority to exercise their best judgement. Again, members must be allowed to exercise their judgement without the fear of retaliation of any kind. To be sure, this judgement may not meet the organization expectations; however, always make it part of the learning process.
8. Give people the responsibility to improve continuously. If the delegated authority does not include the responsibility, nothing will happen. In order for the process to improve continuously, team members must be allowed to experiment and must be given the responsibility of owing that process.
9. Give people the recognition they deserve. As long as the task is completed, regardless of the level of success, recognition should be part of the closure. Recognition does not have to be monetary; rather, it can be the acknowledgment of a job well done, a token of appreciation, a thank-you note, a letter in the personnel file, etc.
10. Give people a sense of ownership. Be prepared to answer the question: What’s in it for me? Once employees recognize that the process is their own, and there is a per­sonal interest in the improvement, then they will be able to take reasonable risks for improvement. To give a sense of ownership, you must be willing to let go.

Source: Poornima M. Charantimath (2017), Total Quality Management, Pearson; 3rd edition.