New trends in manufacturing organizations:

Quality circles and higher productivity

Dr. K. Kuhathasan CEO: CENLEAD

Trust, dignity, respect and involvement. All these Management tools must become part of industrial norms of an organization. It should form part of the daily management approach. Treatment of people with dignity and respect is the secret of industrial success.

People can contribute to organizational goals, beyond the physical manifestation of their jobs, if their capacity is properly pooled and developed. Modern management thinking has encouraged institutions to introduce quality circles in their organizations. Quality circles are certainly viable mean of improving the work environment and enhancing productivity.

Asian countries bound together by the cultural ties and religious links are now trying to adopt what is termed the ‘Look East Policy’. All these countries are involved in developing a productivity model based on co-operation, and better Labour-Management relations.

The post-war industrial giants of Asia, let by Japan, Taiwan and South Korea developed a true Asian Concept of participative management known as the Quality Circles. Quality circle is based and built on the Eastern concept of “Industrial Family System” - where everyone in the industry is considered belonging to one family unit and take part in the progress and prosperity of the concern in a spirit of shared efforts and sincere involvement.

The concept of quality circles is based on the simple premise that every one from the most senior Director to the newly recruited younger member of the organization has something to contribute towards the efficiency of the organization and to the quality of its products or services.

The quality circles are formed from voluntary groups of employees generally under the leadership of a supervisor, with well defined areas of responsibility to identify, analyze and solve industrial as well as administrative problems aimed at total efficiency and higher productivity.

Small groups

The quality circle is made up of a small group of between three to 12 workers who do some of the similar work, voluntarily meeting regularly for about one hour per week during office hours to identify, analyze and solve problems usually under the leadership of their own supervisor. In other words, Quality circle is a voluntary group of workers, who have a shared area of responsibility. They meet weekly to discuss, analyze and propose solutions to quality and productivity problems as well as work life problems.

Providing workers with an opportunity to participate in solving problems of importance to them should be accompanied by providing them with the knowledge and skills for dealing with those problems effectively.

A vital aspect of quality circles is the scope it offers to the workers to give expression to their ideas for changing their work methods and their work environment so as to provide relief from monotony. This will help them to feel that they are not a mere cog in the wheel but partners in the organizational development.

Employees should see themselves as “equal partners” in managing their own job affairs, so that they do not just watch things happening to them, but make things happen to improve the quality of their work life.

This is not just another suggestion program whereby employees present with complaints or ideas for others to investigate and implement. Rather, it is a group process that ranges from finding causes and proposing appropriate solutions to implementing those solutions where possible.

The key is the involvement of the employee in every aspect of his work. This process of group activity will often shift from problem prevention. In this way, workers learn to perform their job better. They experience personal growth and development and they learn to communicate with each other, their supervisors and the management. The problem solving nature of quality circle activity serves as an outlet for the basic human need.

A fall out of this creativity outlet is that the circle gets to the heart of motivation. Through the quality circles it is possible to increase in productivity by tapping the workers’ innate interest in the activities in which they are engaged.

The quality circle concept taps the energy and identity of workers. A worker must feel responsible for his or her own work.

Workers will more enthusiastically carry out solutions to problems that they had a hand in solving. The expansion of communication lines between management and other personnel is a constructive activity, which if it alone does not produce benefits, may lead to organizational identity and job satisfaction.

The objectives and areas of responsibility of the quality circles may vary from industry to industry depending on the nature of its services. However, the common areas can be identified as:

* Reducing Errors

* Enhancing Quality

* Increasing Productivity

* Cost Reduction

* Industrial Safety

* Improvement of Workers Morale

* Efficiency

* Teamwork and

* Job Enlargement

Over the years, the quality circles have developed an attitude of:

- Problem Prevention

- Improved Efficiency

- Harmonious Labour–Management Relations

- Effective Leadership Qualities

- Safety Awareness

- Cohesiveness and Teamwork

The quality circle program is an integrated system consisting of the members, the circle leaders, the program co-ordinator and the steering committee. The process of working involves problem identification, problem selection, problem analysis and recommendation to management.

The Steering Committee which is presided over by the Chief Executive and with representatives from the major division sets the goals and objectives.

Being a companywide voluntary set up the quality circle concept serves as a medium for motivating the employees and meets the needs of self-fulfilment or self-actualisation. It also brings about a greater awareness in the workforce in optimizing production and productivity. It also results in attitudinal change in middle level management to operate as a collective team.

As workers are encouraged and motivated to participate, a sense of involvement is inculcated in them. This sense of involvement and importance should be infused in the workforce, especially in countries where the workforce is highly educated.

When workers know that their recommendations are taken seriously and that they form an important segment of the whole production process and when they feel that they have contributed towards the quality of the final product, they will be motivated to contribute even more.

Quality circles enable management and labour to determine what action, changes and improvements are necessary to achieve the goals of an improved quality of work life for all members of the organization, and greater effectiveness and productivity for the industry.

Dignity of work

Quality Circles also enhance the dignity of work. They provide the unique and much demand opportunities for workers to use their creativity and intelligence in the work they are engaged in. In this process, the workplace becomes more pleasant, a more homely atmosphere, where workers can feel that their work has some real meaning and significance.

It is a process that stimulates everyone to achieve greater self-satisfaction in their everyday work environment. This process includes mutual trust, group participation, information sharing and decision-making within the framework of existing agreements and sound business practices. This will require that everyone recognizes the values of individual ideas, needs and feelings.

Industrial society is now entering a new era in which workers are treated as the most valuable asset. The human resource approach may be defined as the process of promoting and increasing the knowledge, skills and capacities of all individuals engaged in the activities of the organization.

The human resources approach encourages tapping of innovative capacities of the workers and fosters quality vigilance and productivity awareness through the process of workers participation.

Industries must invest in human resources and develop human capacities through education and training.

Where success of industry and trade depends largely on workers creativity, innovations and quality awareness, workers participation is assuming broader dimensions.

Thus, the rapid spread of quality circles in Sri Lanka is understandable. Quality circles in many organizations in Sri Lanka have facilitated management and labour to determine what action, changes and improvements are necessary to achieve the goals of an improved quality of work life for all members of the organization and greater effectiveness and productivity for the industry.

QCs are based on the principle that the people who work are those who understand the operating problems and are, therefore, the most appropriate people to resolve them.

However, in selecting problems for solution, there may be a tendency to choose those caused by another group. Guidelines should be made available to the circles to ensure that the problems selected relate to the member’s own work.

The QC concept is based upon trust, respect and co-operation. These are essential to develop self-reliance and competence within the circle.

The circle leader should receive sufficient training in social skills to enable him to handle this situation and equip him to chair the meeting so that all members have a chance to be heard. He should also provide training and development opportunities to circle members. They in turn will use this new knowledge, together with their experience, in improving product quality.

Quality circles, through a process of indirect training, provides workers with knowledge, skills and attitudes which enable them to produce quality goods or services. It raises their productivity, increase the service concept of undertakings and thus contributes to the general economic development.

Advantages of quality circles

Quality circles through a process of indirect training provides workers with knowledge, skills and attitudes which enable them to produce quality goods or series. It raises their productivity, increases the service concept of undertakings taps the energy and ingenuity and thus contributes to the general economic development. The advantages in establishing quality circles are:

* It will enhance quality and create cost awareness

* Requires little or no change in organizational structure

* Is educational and work oriented

* Rewards are in the work itself

* Is flexible and adaptable to any organization

* Improves Communication

* Reduce Conflicts and improves understanding

* Links all levels and functions of the Organization

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Energizing quality circles

Quality Circles can work well only when:

* Activities are carefully planned.

* Team members are well trained regularly.

* Monitor individual team members’ progress in performing assignments

* Selection of right type of team leaders to the right type of Circles.

* A statement of long-term objectives of the circle must be laid down and the members should be constantly told about the objectives.

* Adequate internal resources and skills must be made available.

- Meeting techniques

- Brainstorming

- Consensus

- Decision-making

- Action plan

- Evaluation

Energizing QC’s through training

People cannot be expected to solve problems in new ways unless they are taught to do so. They cannot lead meetings that reach decisions without the appropriate skills. High quality leadership training is essential to the continued success of quality circles. Quality circle members should have a basic idea of the way the economic system works and should be given an elementary overview of the functions of modern business and government agencies.

Why failure?

In a few institutions, quality circles have not taken firm roots. A study undertaken reveals that the following areas need strengthening.

The QC concept is based upon trust, respect and co-operation. These are essential to the development of self reliance and competence within the circle.

* Poor leadership (of course the leading factor): no clear-cut leadership; too strong or to weak; struggle for leadership.

* Poor cooperation: no interaction between people or groups; competition when collaboration is needed; people unwilling or unable to help one another.

* Regimentation: feelings of pressure; tyranny; undemocratic.

* No reward for the individual: rewards not linked to performance; individuals do not see effects of their contributions no feedback on performance; absence of personal satisfaction.

* Lack of common concerns: no shared feelings of purpose; no spirit of oneness; lacking in unity; everyone on their own.

Poor communication: no opportunity to exchange information; meet only to discuss problems; inability to communicate; withholding of information.

Disregard for the individual: dehumanization; poor working environment; inability to do one’s best; not people-oriented.

* Poor organization: no deadlines; problems don’t get soles; lack of understanding of how to get things done.