Page 280 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

Notes 15.4 Quality Circles

The concept of Quality Circle emerged from quality control.

Did u know? Quality circles are quite popular in Japan. Looking at their success, many
organisations in USA and India have also attempted to implement quality circles. It should
be noted the quality circles provide a future-oriented approach. They seek high quality
products in the current production run and in the future.

A quality circle is a small group of employees doing similar or related work who meet regularly
to identify, analyze and solve product-quality problems and to improve general operations.
The quality circles are relatively autonomous units (ideally about 10 workers), usually led by a
supervisor or a senior worker and organised as work units. The workers, who have a shared
area of responsibility, meet periodically to discuss, analyze and propose solutions to ongoing
problems.
Some typical efforts in improving production methods and quality involve reducing defects,
scrap, rework, and downtime, which are expected to lead to cost reduction as well as increased
productivity. In addition, the circles intend to focus attention on the self-development of workers
and the improvement of working conditions. Through this process, there is improvement of
workers’ morale and motivation, stimulation of teamwork, and recognition to their
achievements.
The technique of quality circle has been refined over the years. It is now followed to achieve the
following objectives:

1. Overall improvement of quality of products manufactured by the enterprise.
2. Improvement of production methods and productivity of the enterprise.
3. Self-development of the employees who take part in quality circles.
4. Encouragement of innovative ideas among the employees.

5. Building high morale of employees by developing team-work in the organisation.
15.4.1 Benefits of Quality Circles

Quality circles are supposed to bring the following benefits for the organisation.
1. Formation of quality circles in Japan and other countries has helped in bringing out
several innovations and changes.
2. Quality circles have proved to be a valuable tool for increasing productivity, improving
quality and increasing workers’ job satisfaction.

3. Membership in a circle means a participative environment that provides identification
with work-group. Participation encourages commitment of the employees in producing
quality products. Through quality circles, every one becomes involved with the operation
of the company. Everyone from top to bottom works towards a single goal, i.e., success
through quality.

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