Quality circle and Demings principle

Quality circle and Demings principleBijoy Dripta Barua ChowdhuryLecturerDept. of IPE, BUET

Summary of History and Practices of Quality circleQuality Circles were first seen in the United States in the 1950sCircles were developed by Dr. Kaoru Ishikawa in Japan in the 1960sCircles were re-exported to the US in the early 1970s1980s brought Total Quality Management and a reduction in the use of Quality CirclesQuality Circles can be a useful tool if used properly

2What is a Quality Circle?Voluntary groups of employees who work on similar tasks or share an area of responsibilityThey agree to meet on a regular basis to discuss & solve problems related to work.They operate on the principle that employee participation in decision-making and problem-solving improves the quality of work

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The Japanese description of the effectiveness of a quality circle is expressed as:It is better for one hundred people to take one step than for one person to take a hundred4Characteristics of Quality CirclesVolunteersSet Rules and PrioritiesDecision made by consensusOrganized approach to problem solvingMembers of a circle need to receive trainingSupport of senior management requiredMembers need to be empowered

5Major Attributes to Quality CircleQuality Circle is a form of participation management.Quality Circle is s human resource development technique.Quality Circle is a problem solving technique.

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Objectives of Quality CircleChange in attitudeSelf development Development of team spiritImproved organizational cultureHelp in improving the productivity Promote individuals self-developmentEnhanced interest in jobs.

7 Functions of quality circle Encourage a team culture and team environment; Encourage the flow of new ideas; Improve customer relations and service delivery; Improve levels of communication; Improve operational efficiency; and Create problem prevention attitudes.

8Structure of quality circleA steering committee: This is at the top of the structure. It is headed by a senior executive and includes representatives from the top management personnel and human resources development people. It establishes policy, plans and directs the program and meets usually once in a month. Coordinator: He may be a Personnel or Administrative officer who co-ordinates and supervises the work of the facilitators9Structure of quality circleFacilitator: He may be a senior supervisory officer. He co-ordinates the works of several quality circles through the Circle leaders. Circle leader: Leaders may be from lowest level workers or Supervisors. A Circle leader organizes and conducts Circle activities.Circle members : They may be staff workers. Without circle members the programme cannot exist. They are the lifeblood of quality circles.108 Steps in Quality circlesProblem IdentificationProblem SelectionProblem AnalysisGenerate Alternative SolutionsSelect the most appropriate solutionPrepare plan of actionPresent solution to management circle members present solution to management for approvalImplementation of solution

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Brain stormingPareto DiagramsCause and Effect AnalysisData CollectionData Analysis

Basic Problem Techniques12Increased in quality consciousness of employees developmentPromote individuals self-developmentPromote team work and fellowship Improve over all company performance and corporate image

Benefits of quality Circles13When QC can be ineffective?Inadequate trainingNot entirely voluntaryLack of Top Management interestUnsure of PurposeDecision making does not necessarily take place

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TOTAL QUALITY MANAGEMENTDemings 14 PointsCreate constancy of purpose for improvement of product and serviceAdopt the new philosophy. In a new economic ageCease dependence on mass inspection to achieve quality . . . but from improving the production processEnd the practice of awarding business on the basis of price tag alone. Instead, minimize total costImprove constantly and forever the system of production and service to improve quality and decrease costInstitute trainingAdopt and institute leadership with the aim to help people and machines do a better job15TOTAL QUALITY MANAGEMENTDemings 14 Points (Cont.)Drive out fear, so everyone may work effectivelyBreak down barriers between staff areasEliminate slogans, exhortations and targets for the work forceEliminate numerical quotas for the work force and numerical goals for people in managementRemove barriers that rob people of pride of workmanshipInstitute a vigorous program of education and self improvement for everyoneTake action to accomplish the transformation. Put everyone to work to accomplish the transformation16Demings 14 Key principles 1Constancy of PurposeCreate constancy of purpose for continual improvement of products and service to society, allocating resources to provide for long range needs rather than only short Term profitability, with a plan to become competitive, to stay in business, and to provide jobs.

Developing the organizations goals and philosophy

Long term viewStating the Organizations goals and philosophySelf examination where are weDeveloping a Mission StatementMaking the Mission Statement a Living document

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Demings 14 Key principles 2 Adopt the new philosophyWe are in a new economic age, created in Japan. We can no longer live with commonly accepted levels of delays, mistakes, defective materials, and defective workmanship. Transformation of Western management style is necessary to halt the continued decline of business and industry.

Understanding the Philosophy of never-Ending Improvement

Customer satisfactionManaging for success instead of failureIdentify and remove barriers to achieving qualityGet everyone involved in the quality journey18

Demings 14 Key principles 3Cease the need for mass inspectionEliminate the need for mass inspection as the way of life to achieve quality by building quality into the product in the first place. Require statistical evidence of built in quality in both manufacturing and purchasing functions.

Replacing mass inspection with Never-Ending improvement

Develop a plan that minimizes the total cost of incoming materials and final productInspect all or none ruleCommit to examining the process over time

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Demings 14 Key principles 4End lowest tender contractsEnd the practice of awarding business solely on the basis of price tag. Instead require meaningful measures of quality along with price. Reduce the number of suppliers for the same item by eliminating those that do not qualify with statistical and other evidence of quality. The aim is to minimize total cost, not merely initial cost, by minimizing variation. This may be achieved by moving toward a single supplier for any one item, on a long term relationship of loyalty and trust.

Changing the philosophy of purchasing

Price has no meaning without a measure of quality being purchased do not make cost the sole decision factorMove from multiple to single source relationshipsLong term relationship between the vendor and buyerThe lowest price or bidder means poorer quality20Demings 14 Key principles 5Improve every processImprove constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.

Improving the system

Management has responsibility for the systemContinual reduction of wasteContinual improvement in quality in every activityManagement to define operational definitions/communicationUse of Control Charts, flow Charts, Check Sheets, Pareto Diagrams, Brainstorming, Fishbone (cause and Effect), Histograms, Scatter Diagrams for managing qualityShewhart Cycle Plan/Do/Check/Act

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Demings 14 Key principles 6Institute training on the jobInstitute modern methods of training on the job for all, including management, to make better use of every employee. New skills are required to keep up with changes in materials, methods, product and service design, machinery, techniques, and service.

Instituting Modern Training Methods

Training in the organizational philosophyOn-going integrated approach to an employees growthLearn how to perform the jobAll employees should learn Dr. Demings 14 pointsRealize that training is part of everyones jobUse statistical methods to determine workers capability Training that offers employees a share in the overall philosophy and goals for the organization

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Demings 14 Key principles 7Institute leadershipInstitute leadership - the aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.

Supervising Never-Ending improvement

People are penalized for things beyond their controlManagement should remove causes for system variationCreate a positive supportive atmosphereEliminate fear and mistrustEncourage coachingExtract feedbackWorkers have to give new systems a chance23

Demings 14 Key principles 8Drive out fearEncourage effective two way communication and other means to drive out fear throughout the organization so that everybody may work effectively and more productively for the company.

Driving out fear:

Fear causes stress, emotional problems, and absenteeismCaused by feeling powerless and having no controlDo not use as a motivator get people to work in teamsElimination of fear starts at the topOpen channels of communicationInteraction with the organization - Training in company goalsOrganize and structure teamsWhat is the job, is acceptable, what is not acceptableReward teamwork, quality, and creativity

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Demings 14 Key principles 9Break down barriersBreak down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.

Breaking down organizational barriers:

Employees roles become functionalProblems in competition, communication and fear ariseStaff areas have to work as an integrated wholeCustomer and employee surveys should be doneImprove communication upwards and downwardsEliminate performance appraisalsTraining to reduce barriers25

Demings 14 Key principles 10Eliminate exhortationsEliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.

Replacing numerical goals, posters and slogans with Never- Ending improvement

Change to system to help employees achieve goalsIdentify problems/barriers that are causing goals not to be met and eliminate them get rid of management by objectivesGoals must be focused on the companys mission in the futureGoals must have an organizational purpose and aligned with the job

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Demings 14 Key principles 11Eliminate arbitrary numerical targetsEliminate work standards (quotas) on the factory floor. Substitute leadership. Eliminate management by objective. Eliminate management by numbers, Numerical goals. Substitute aids and helpful leadership in order to achieve continual improvement of quality and productivity.

Replace management by numbers with Never-Ending Improvement

Quotas and standards focus on quantity not qualityReplace with statistical methods, leadership and trainingIdentify process improvementsBy focusing on quality through the use of statistical methods, management provides a roadmap for never-ending improvement27

Demings 14 Key principles 12Permit pride in workmanshipRemove barriers that rob the hourly worker of his right to pride of workmanship.

Promoting pride of workmanship:

The responsibility of supervisors must be changed from sheer numbers to quality. This means, inter alia," abolishment of the annual or merit rating and of management by objectivesInvolve employees at all levels of process improvementOperationally define job descriptionsMeet basic work-related needs of employeesSupply employees with the proper tools, materials, & methods

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Demings 14 Key principles -13Encourage educationInstitute a vigorous program of education and self- improvement,. What an organization needs is not just good people; it needs people that are improving with education.

Educating and retraining everyone:

Should develop employees for changes in their current jobsIn the organizations mission and goalsStatistical trainingView training as long term for the individualIn fields related to the employees current jobThe employees personal improvementFailure to do this creates loss of resources in the future29

Demings 14 Key principles 14Top management commitment to actionPut everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

Clearly define top management's permanent commitment to ever improving quality and productivity, and their obligation to implement all of these principles. Indeed, it is not enough that top management commit themselves for life to quality and productivity. They must know what it is that they are committed tothat is, what they must do. Create a structure in top management that will push every day on the preceding 13 Points, and take action in order to accomplish the transformation. Support is not enough: action is required!

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Thank You All31