partii_set d quality circles

8/7/2019 PartII_Set D Quality Circles

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QUALITY CIRCLES

(QC)

Prof Victor ChoaSchool of CEE


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What is a quality circle?

Quality circle is a problem solving andindustrial management concept.

A voluntary group of workers in the sameworkplace area who meet regularly todiscuss ways of solving workplaceproblems to improve their own works,

company efficiency and operations.

It is a bottom-up approach to problemsolving.


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Objectives

Build strong workplace Improve work methods Enhance morale

Foster harmonious human relations Encourage voluntarism Encourage workers to think well and to use wisdom Broaden the way of thinking

Improve quality assurance Establish a state of control Improve the income of employees Allow specialists to devote their time to proper jobs


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Essential Ingredients ofQC

(by Prof Ishikawa) Management must be supportive of the program.

Participation in the process must be voluntary.

Members should be trained in problem analysis and QCtechniques.

Projects should be team effort, not individual effort.

Projects should be related to the circle members work.

There should be adherence to a win-win, rather than awin-lose style of dealing with others.

A large number of managers at all levels should buy into the merits of the concept.


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Quantifiable Benefits ofQC

Payback 2:1 to 14:1 (USA)

World average payback 5:1 to 8:1

Efficiency up to 20%, cost down by 33%(Taiwan)

16% of total profits (Japan)


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Achievements through QC

Promote and develop teamwork

Improve working relationship

Provide better communication Improve quality and productivity

Draw out workers ability

Improve job satisfaction

Sense of achievement

Development of individual skills


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Overall the QC tends to developa sharper eye to look into

possible areas of improvementin the normal working environment.


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Structure and Implementation

Steering Committee

Consists of representatives of top management,with the CEO as chairman.

Oversees and charts direction for all QCactivities.

Policy making body that establishes operationalguidelines.


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(Contd)

Facilitator

Normally middle management

Responsible for training QC leaders andassisting them to train their members.


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(Contd)Quality circle leader

Usually first line supervisor

Guides or directs activities ofQC, and isresponsible for training the QC membersin basic techniques.


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(Contd)

Quality circle members

Workers from the same workplace.


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Problems within QC

Difficulty in selection of problems/topics Low participation Lack of understanding

Difficulty in data collection Lack of confidence Insufficient knowledge Lack of facilities Shift duties Personality differences Differences in education level


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Problems with Facilitator and

Steering CommitteePay no attention to circles idea

Too little publicity

Lack of support

No monitoring of progress

Insufficient facilitation

Resistance to new ideas or changes

Ineffective steering committee


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Causes of Failure1. Organizational Culture

Not people centered.

2. Economic ConditionsRecession results in retrenchment, disrupts work flow and low moraleof workers.

3. Lack of CooperationLack of cooperation or management support from middlemanagement and first line supervisors due to fear of loss of controlor authority.

4. Lack of TimeIf regular meetings are not held, enthusiasm and momentum wouldsoon be lost.

5. Turnover, Promotion, Transferand RetirementThese changes disrupt the cohesiveness and continuity ofQC activities.


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Causes of Failure (Contd)

6. Non-Observanceof QC PrinciplesMembers must stick to QC principles and make constant effort to

comply.

7. Inadequate ResourcesTop management makes resources available. QC members must

source for means to accomplish tasks.

8. DisillusionmentPeople mistake QC as a means of cost saving and push to extremes toachieve goals at all expense. QC is people-building, not just savings

in dollars and cents.

9. Formationof Elite GroupsResults in rivalry and unhealthy competition, creates lot ofdissatisfaction and disenchantment for some. Management shoulddiscourage formation of such QC groups.

10.OtherreasonsPoor communications, no training, managers do not listen, not for

me attitude, no recognition, etc.


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Problem Solving Sequence in QC

Problem identification

Problem selection

Identification and evaluation of causes

Identification and evaluation of solutions

Decision on a solution

Implementation plan

Potential adverse consequences of plan


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QC

PROBLEMSOLVING


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Process Analysis Techniquesroughly in order of sophistication and

complexity

Flow Charts Work Flow Diagram

Data Collection Worksheets or Tally Chart Graphic Check Sheet Run Chart or Time Plot Scatter Diagram Frequency Histograms Dot Plot or Stem & Leaf

Diagram Pareto Analysis Cause-and-Effects (Fish Bone) Charts Statistical Control Charts


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Example of Flow Chart


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Example of Run Chart


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Example of Check Sheet


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SCATTER

DIAGRAM


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Example of Scatter Diagram


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HISTOGRAM


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PARETODIAGRAM


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WHICH IS THEBIGGESTPROBLEM?


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Pareto Analysis

The Paretoprinciple or the 80-20 rule, says that 80% of alloutcomes can be attributed to 20% of all the causes.A small number of problems account for a large amount of whatgoes wrong.

Pareto analysis tells us that80% of the trouble comes from 20% of the problems,80% complaints comes from 20% stores,80% accidents comes from 20% work sites,80% sales comes from 20% customers,80% errors comes from 20% machines.Now you know why airlines are setting up frequent flyer schemes tolook after the 20% better.

Pareto charts help to identify and to narrow down the processesthat should be tackled first.They provide a clear focus on the vital few important factors wherethere will be a good return on investment.If you address the few categories of occurrences you would solve80% of the problems.


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CAUSE ANDEFFECT

DIAGRAM

FISHBONE


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Cause and Effects (Fishbone)

Charts Also called Ishikawa diagrams after the

Japanese originator and fishbone charts becauseof the shape.

They allow you to map out the factors that seemto play on a problem or a desired outcome. Theyfollow on logically from a Pareto analysis the

Pareto chart identifies the major problems, thecause-and-effect diagram helps to identify thecauses and point the way towards specificimprovements.


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Charts (Contd) Identify and define the effect write down the problem briefly

and draw a line from left to right pointing at the problem.

Work out the most likely causes of the problem using idea

generating techniques, write these as branches off the mainarrow.

Draw smaller lines against each of the branches this helps tocategorize and consolidate.

Prioritize rank according to perceptions of importance.

Verify cause-and-effect diagrams direct attention to possiblecauses, only further data collection and analysis will identify theactual causes of a problem.


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Chart(Contd)


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CONTROL

CHART


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Example of Control Chart


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When to Use the Process

Analysis ToolsIf you aretryingtodetermine use

What the process is Flow chart, work

flow diagramWhat are the historical trends Run chart, frequency

histogram

The cause and effect relationships Scatter diagram

What are the major problems Pareto analysis

What is causing the problems Cause and effectschart

Whether the system is stable or not Control chart


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Ideas Generating Techniques Brainstorming

Slip writing

Mind mapping

Delphi technique Idea matrices Is/Is not matrix, Haddons matrix

Decision process systems

Dot voting

Multi-voting Nominal group technique

Weighted Index


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Delphi Techniques (Contd)


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Mind Mapping

This technique was created by Tony Buzan who haswritten several books on applying the split brain theory.It is basically a way of making your thinking come out ina brain dump but with some structure and organizationabout it.

Take a central theme and write or draw it in the centerof a sheet of paper. Draw a circle around the main idea.As ideas come to you, draw lines radiating around the

main idea. When one idea triggers off another, drawthem as branches coming off the idea that triggeredthem. Write the key words of each idea just above theline that represents it. Keep on until your brain feelsempty.


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Mind Mapping (Contd)

In appearance the mind map may remindyou of the cause-and-effect diagram used

for process analysis. The main differenceis that the mind map is looking inwards forcreative ideas rather than outwards todescribe or define an observed situation.


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Mind Mapping (Contd)


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Thank You

and

Good Luck!

partii_set d quality circles

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