Quality Circles: Implications for Training. Information Series No. 243

DOCUMENT RESUME CE 033 970 ED 220 725, AUTHOR TITLE INSTITUTLON SPONS AGENCY PUB DATE CONTRACT NOTE AVAILABLE FROM EDRS PRICE DESCRIPTORS IDENTIFIERS Harshman, Carl L. Quality Circles: Implications for Training. Information Series No. 243. ERIC Clearinghouse on Adult, Career, and Vocational Education, Columbus, Ohio. National Inst. of Education (ED); Washington, DC. 82 400-81-0025 73p.. National Center Publications, National Center for Research in Vocational Education, 1960 Kenny Road, Columbus, OH 43210 (IN243, $6.50). MF01/PC03 Plus Postage. Delivery Systems; *Job Training; Management Development; *Program Content; *Program Design; Program Evaluation; *Program Implementation; *Quality Control; *Training Methods Japan; *Quality Circles; United States ABSTRACT This paper explores the background to and process of quality circles as well as the implications of circles for training. In the-first secticn, the emergence and growth of quality circles in Japan and the United States are traced. Next, the theoretical and conceptual bases of quality circles are examined, while section 3 looks at implementation in detail. Discussed are the goals of circles; steps in implementation; the principles of operation, organization, and staffing; the operation of quality circles; and the evaluation 'of benefits of quality circles. The fourth section describes the extent and types of quality circle training that can be delivered. It is followed by a discussion of quality circles and implications for training, giving an overview of who is trained, what kind of training is received, what kinds of considerations are made in designing and conducting training, and the outcomes or end results of the training process. A final section considers some unresolved issues relative_ to the concept and practice of quality circle training. Essentially, basic problems and needs are named in the areas of management/supervision, research, and education. Appended materials include abstracts of circle activities in various companies around the country, a case study, and results of a survey of several companies' involvement with quality circles. (CT) *********************************************************************** Reproductions supplied by EDRS are the best that can be made from the original document. *********************************************************************** QUALITY CIRCLES: IMPLICATIONS FOR TRAINING INFORMATION SERIES NO. 243 Carl L. Harshman Saint Louis University The ERIC Clearinghouse on Adult, Career, and Vocational Education The National Center for Research in Vocational Education The Ohio State University 1960 Kenny Road Columbus, Ohio 43210 U.S. DEPARTMENT OF EDUCATION NATIONAL INSTITUTE OF EDUCATION E UCATIONAL RESOURCES INFORMATION CENTER IERICI nes document has bean reproduced as rceived friwn thr person or organization originating a Minor changes have been mado to uhprove reproduction quallta Points 0( vev, or Winans stated in this docu represent official NIE mem do not necessarily posuirai ia Oaf ye 1982 THE NATIONAL CENTER MISSION STATEMENT The National Center for Research in Vocational Education's mission is to increase the ability of diverse agencies, institutions, and organizations to solve educational problems relating to individual career planning, preparation, and progression, The National Center fulfills its mission Generating knowledge through research Developing educational programs and products Evaluating individual program needs and outcomes Providing information for national planning and policy Installing educational programs and products Operating information systems and services Conducting leadership development and training programs For further information contact: Program Information Office National Center for Research in Vocational Education The Ohio State University 1960 Kenny Road Columbus, Ohio 43210 Telephone: (614) 486-3655 or (800) 848-4815 Cable: CTVOCEDOSU/Columbus, Ohio Telex: 8104821894 FUNDING INFORMATION Project Title: ERIC Clearinghouse on Adult, Career, and Vocational Education Contract Number: N IE-C-400-81-0025 Educational Act Under Which the Funds Were Administered: 41 USC 252 (15) and PL 92-318 Source of Contract: U.S. Department of Education National Institute of Education Washington, D.C. 20208 Contractor: The National Center for Research in Vocational Education The Ohio State University Columbus, Ohio 43210 Executive Director: Robert E. Taylor Project Director: Juliet V. Miller Disclaimer: This publication was prepared pursuant to a contract with the National Institute of Education, U.S. Department of Education. Contractors undertaking such projects under government sponsorship are encouraged to express their judgment in professional and technical matters freely. Points of view or opinions do not, therefore, necessarily represent official National Institute of Education position or policy. Discrimination Prohibited: Title V of the Civil Rights Act of 1964 states: "No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal assistance." The ER IC Clearinghouse project, like every program or activity receiving financial assistance from the U.S. Department of Education, must comply with these laws. Pi This publication was prepal'ed with funding from the National Institute of Education, U.S. Department of Education, under Contract No. N I E-C-400-81-0025 . The opinions expressed in this report do not necessarily reflect the position or policies of N I E or the Department of Education. `.t TABLE OF CONTENTS Page LIST OF FIGURES vii FOREWORD ix EXECUTIVE SUMMARY INTROOUCTION 1 THE HISTORY OF QUALITY CONTROL CIRCLES 3 3 4 The Japanese Experience The American Experience THEORETICAL AND CONCEPTUAL BASES OF QUALITY CIRCLES ORGANIZATION AND IMPLEMENTATION OF QUALITY CIRCLES 7 11 11 Goals of Quality Circles Steps in Implementing Quality Circles Principles of Operation The Benefits of Quality Circles 12 12 17 TRAINING FOR QUALITY CIRCLES 21 Training for Management Facilitator Train ing Team Leader Training Circle Member Training 21 22 22 24 QUALITY CIRCLES AND THE IMPLICATIONS FOR TRAINING 27 27 28 29 29 30 Who Is Trained? What Kind of Training? Considerations for Training Outcomes of the QC Process and Training Summary t) TABLE OF CONTENTS - Continued Page SOME UNRESOLVED ISSUES IN THE QUALITY CIRCLE PHENOMENON 31 31 31 The Role of Management and Supervision Research Education Summary 32 32 APPENDIX A: Excerpts of Reports on Quality Circle Activities in Various Industries APPENDIX B: Sample Took of Problem Analysis and Solution: Dover Elevator Q Squad Case APPENDIX C: Results of a Survey of Eighteen Companies' Involvement in Quality Circles 33 39 53 63 REFERENCES 67 SELECTED BIBLIOGRAPHY iv LIST OF FIGURES Page 8 Figure 1. Human development theory bases of quality circles Figure 2. Organizational structure and the place of quality circles 14 Figure 3. The Martin Marietta model of quality circle measures 18 Figure 4. Examples of task and group process training modules for QC team leaders 23 FOREWORD The Educational Resources Information Center Clearinghouse on Adult, Career, and Vocational Education (ERIC/ACVE) is one of sixteen clearinghouses in a nationwide information system that is funded by the National Institute of Education. One of the functions of the Clearinghouse is to interpret the literature that is entered into the ERIC database. This paper should be of particular interest to vocational education practitioners and decision makers, human resource developers, and personnel managers within business and industry. The profession is indebted to Carl L. Harshman of Saint Louis University for his scholarship in the preparation of this paper. Dr. Harshman has worked as an hourly employee in industry, a construction superintendent, and a college dean. In 1972, after completing his Ph.D. at The Ohio State University, he joined Saint Louis University and worked in institutional research and academic planning. From 1975-82, he served as dean of Metropolitan College and professor of education. Currently he is on leave from the University, working as a consultant to industry for quality of work life and worker participation programs. Recognition is also due to Wayne S. Rieker, President, Quality Control Circles, Inc.; Robert H. Vaughn, Lakeland Community College, Mentor, Ohio; and to Roy L. Butler and Kenneth F. Huddleston, the National Center for Research in Vocational Education, for their critical review of the manuscript prior to its final revision and publication. Susan Imel, Assistant Director at the ERIC Clearinghouse on Adult, Career, and Vocational Education, coordinated the publication's development. She was assisted by Sandra Kerka, Catherine Thompson and Judith 0. Wagner. Carmen Smith, Catherine Smith, and Brenda Hemming typed the manuscript, and Janet Ray served as word processor operator. Connie Faddis of the National Center's Editorial Services edited the paper. Robert E. Taylor Executive Director The National Center for Research in Vocational Education vii EXECUTIVE SUMMARY This paper explores the background to and process of quality circles as well as the implications of circles for training. In the first section, the emergence and growth of quality circles in Japan and the United States are traced. Next, the theoretical and conceptual bases of quality circles are examined, while section 3 looks at implementation in detail; discussed are the goals of circles, steps in implementation, the principles of operation, organization, and staffing, the operation of quality circles, and the evaluation of benefits of quality circles. The fourth section describes the extent and types of quality circle training that can be delivered. It is followed by a discussion of quality circles and implications for training, giving an overview of who is trained, what kind of training is received, what kinds of considerations are made in designing and conducting training, and the outcomes or end results of the training process. A final section considers some unresolved issues relative to the concept and practice of quality circle training. Essentially, basic problems and needs are named in the areas of management/ suparvision, research, and education. Appended materials include abstracts of circle activities in various companies around the country, a case study, and results of a survey of several companies' involvement with quality circles. Literature relating to the topic of the quality circle and its implications for worker training can be found in the ERIC system under the following descriptors: *Training Methods; *Program Design; *Program Content; Program Implementation; Program Evaluation; Delivery Systems; *Job Training; Management Development; Problems. Asterisks indicate descriptors having particular relevance. ix ci INTRODUCTION The United States may be experiencing the most significant change in the work place since the Industrial Revolution. The movement involves changing relationships among owners/managers, supervisors, and employees. The umbrella label for the movement is cuality of work life. Quality of work life, or OWL, was defined by one group as: a broad expression covering a vast variety of programs, techniques, theories, and management styles through which organizations and jobs are designed so as to grant workers more autonomy, responsibility, and authority than is usually done. (Jenkins 1981, p. 7) OWL efforts include such things as job redesign, work restructuring, socio-technical systems, and job enrichment (Walton 1979). An increasingly popular work improvement effort is the quality control circle (QCC) or simply quality circle (QC).* Rieker (1981a) provides a comprehensive list of the key elements of a quality control circle (his term): 1. members of the normal organizational work crew and their supervisors, 2. meeting on a voluntary basis, 3. at regularly scheduled periodic meetings, 4. to receive training in problem-solving techniques, 5. then identifying and prioritizing problems, investigating and analyzing causes, 6. and developing and implementing solutions when the authorization to do so is within its purview. (pp. 172) Based on a concept imported from Japan in the early 1970s, the quality circle has become a fastgrowing national phenomenon involving thousands of supervisors and employees. Quality circles did not occur by accident. They were one response to a much larger, more complex social/cultural work movement of the last three decades. Some elements of the movement, according to Rendall (1981), were 'There is some debate about the appropriate label for the phenomenon. The Japanese call their groups "quality control circles," and adherents to the concept use the term. Because of the narrow interpretation of "quality control" in the U.S., many organizations allow groups or teams to address problems other than those related to quality. In many cases these organizations or groups prefer the term "quality circle," For the sake of consistency, this paper uses the term quality circle (QC) as a generic phrase for the concept. "Emphasis is the author's. a shift from workers who were predominantly self-reiiant to those who were more dependent on their peer group; workers who became more outer-directed and demanded more from jobs that had become "standardized, specialized, and fragmented tasks devoid of challenge" (p. 29); production systems that were extremely cost-effective, but those same qualities dehumanized work and underutilized the human resources in the system. Franklin (1981) reported on two studies that affirmed these problems. In one, a poll of one hundred seventy-five thousand workers in 159 companies revealed that most felt they were not respected as individuals and that their jobs were not challenging. The other study revealed extensive negative attitudes about work, but also affirmed that more money, shorter hours, or longer vacations would not solve the problem. At the same time that the American work force was changing, additional motivation for installing QCs came from leadership uf companies faced with economic hard times. These companies acknowledged the human elements of the process but, in many cases, saw QCs primarily as economic/productivity tools. The early circles appeared in industrial or manufacturing organizations. They were dedicated to improving product quality, increasing productivity, and containing costs. Although those outcomes looked like payoffs for the company only, the benefits for workers were (1) increased job security because of enhanced company performance, (2) the opportunity to achieve deeper and more intensive relationships to their work (an intrinsic reward), and (3) the chance to make a difference in the work place. The purpose of this paper is to explore the background and process of quality circles, as well as the implications of circles for training. To that end, the paper contains sections on the history of quality circles, the theoretical and conceptual bases of QCs, the implemention of quality circles, and the training components of circles. The final section looks at some of the unresolved issues surrounding quality circles. There are three appendixes to the report. Appendix A contains abstracts of circle a'Jtivities in various companies around the country. Appendix B "walks through" an actual problem solved by a circle at Dover Elevator. It shows how the circle members selected the problem, how they analyzed it, and how they solved it. Appendix C contains the results of an in-depth survey of several companies' involvement with QCs. The survey was designed to aather data on the growth of QCs, as well as on some quantitative aspects of circle programs. 2 THE HISTORY OF QUALITY CONTROL CIRCLES This section-traces the emergence and growth of quality circles in Japan and the United Japan, States. As the history reveals, there is an increasing movement of ideas from the U.S. to and back to the U.S., over a twenty-five year period. The Japanese Experience* _- According to Beardsley (1981), by the early 1940S the Japanese were known as the "junk contributions to a merchants of the world." In the post-World War II era Americans made two Douglas MacArthur to put change in Japanes9 production. One was the commitment of General efforts, was the the Japanese economy back on its feet. The other, related to MacArthur's example, provided for support the effort. Legislation, for Japanese government's willingness to existing standards Japanese Engineering Standards, which provided guideHnes for upgrading including quality, to companies that met various standards, (Cole 1980a). The law also allowed use the Japanese Industrial Symbol (JIS) on their products (Yager 1981). Deming. who gave the The second major American contribution came from Dr. Edward S. Japanese Union of Japanese information on methods of statistical quality control. In 1951 the Deming award. Scientists and Engineers (JUSE) honored Deming's contribution by creating a companies rated excellent for tneir The "Deming Application Prize" is now awarded nationally to application of statistical quality control methods. States to the founder of the ln 1952 Deming introduced Dr. Joseph M. Juran of the United Japan for two months to Engineers. In 1974 Juran went to Japanese Union of Scientists and deliver lectures on the "management of quality control." By this time, the Japanese had identified to acquire some technical tools to some of the causes of their quality problems and had begun how to integrate the techniques into industries. upgrP,d quality, but lacked an overall strategy on "engineers wRh limited shop The general strategy shifted responsibility for-quality control from decided that the way to do (Cole 1980a, p. 25) The Japanese experience to ... each employee." adopted an innovative tis was through education and, because of the target group, they strategy. Juran described it as follows: Under the Japanese system of organizing work, it became logical to extend training in quality control to the category of "GEMBA-CHO". The Gemba-Cho is a sort of "working foreman," i.e., he is partly a work leader and teacher, and sometimes a production worker. Since this category of Gem ba-Cho consists of many thousands of people, it was necessary occasion by creating to resort to mass media for training. lpanese ingenuity rose to the forms. (1967, p. 331) new training forms as well as by adapt ng conventional and Engineers (1968), is °Kaoru Ishikawa's QC Circles Activities, published by the\ Union of Japanese Scientists recommended for a more in-depth historicil review of C)Gcs. 3 Education strategies included a series of ninety-one, fifteen-minute radio programs first aired in 1956 and repeated every year until 1962. In addition, one hundred thousand copieS of a text on quality control were sold in the first year. In 1960 the Japanese,designated November as "National Quality Month," and a television series on quality control was aired. In 1961, the Japanese Quality Control Magazine held a symposium for shop foremen. As a result of discussion and ideas, a new magazine emerged (first called "Gemba-To-QC" and later "FQC [QC for the foreman]"). It was aimed more at the shop floor level, and a new awareness of the possible contribution of these workers arose. At about the same time, Dr. Kaoru Ishikawa developed a charting technique for breaking down a problem. This is now referred to as causeand-effect analysis. According to Patchin, "JUSE ... coupled the works of Dr. Ishikawa and the Americans, and doveloped the first Quality Control Circles training materials in 1962." (1981, p. 7) Soon after, the materials were promoted to Japanese industry, but surprisingly; Patchin said, companies were slow to respond. In the beginning, three QC circles registered with JUSE. Twenty more registered by the end of 1962 and eight thousand by August, 1966. By 1967 there were twelve thousand circles registered and an estimated sixty thousand not registered (Yager 1981). Cole said that there were (1981a), there are an estimated eighty-seven thousand circles by 1978 and according to Rieker now over one hundred twenty-five thousand circles registered with tne JUSE. The American Experience In the mid-1960s the United States became aware of the gradual upgrading of the quaHty of Japanese products. In addition, U.S. scholars and managers began to realize that ohe of the Magazine first reasons for these improvements was the quality control circle. In 1971 Production firm. reported a quality circle-type experience in a California medical instrument manufacturing of employees began meeting to formulate Encouraged by the head of the company, a group suggestions and recommendations for improvements (Patchin 1981). Gregerman (1979) reported that Powell Niland's 1971 book, The Quality Control Circle: An Analysis, was one of the first publications in this country to define and describe the Japanese OCC phenomenon. What is gererally considered the first U.S. quality circle project took place in Lockheed's Missile System Division in 1973. The manufactt ing manager, Wayne Rieker, took a Lockheed group *o Japan to study QCCs. According to Rieker (1981a), Lockheed implemented the Japanese approach in its pure form (versus "Americanizing" it). It took at- ut a year to get necessary approvals and to develop training materials. Initially, four pilot groups were set up. After a short period a survey was taken of the people involved. According to Rieker, the results were as follows: 90% voted to continue and expand the program; 92% said communications had improved; 7) 85% said quality improved; and 71% found their jobs to be more enjoyable. (1981a, p. Rieker reported that a similar 1979 survey at Westinghouse confirmed the earlier Lockheed findings. There were two major characteristics of the American experience with quality circles. The early first was the phenomenal growth of companies and organizations involved in QCs. The Company, entrants to the trend included such companies as Hughes Aircraft, Ford Motor General Electric, Bank of America, and General Motors. By now hundreds or even thousands of other companies have instituted QCs. Although the initial thrust came from industrial 4 organizations, Yager says, "a significant interest has been shown in this country by hospitals, banks, service organizations, accounting, engineering and professional fi.rms" (1981, p. 99). The se...:ond characteristic was the adoption of a relatively standard process for implementing OCs. These included the formation of a steering committee (may be seen less frequently than other components), the appointment of a staff facHitator, the selection of members, training, and so forth. Even though there has been significant growth of the phenomenon in the US,, Robert Cole, a recognized authority on OCs, has some major concerns about the appearance and implementation of OCs. For one, he is concerned about the motives of institutions: Despite the variety of explanations company officials give for their interest, the desire to raise productivity and improve quality seems paramount, often in the face of increasing competition from the Japanese. With these concerns goes the recognition that perhaps they have underutilized the worker as an organizational resource. (Cole 1980b, p. 28) This seems to indicate a concern more for profit than for people. (Many argue that the two must go hand-in-hand in OCs.) A second concern is the relationship of unions to the effort. According to Cole, the unions in JP.pan are part of the collaborative planning process for circles. In this country, involvement is not consistent. In some cases union involvement is mandated by the master collective bargaining agreement; in others it is a function of the company. A strong advocate of union-management cooperation is Irving Bluestone, retired vice president of the United Auto Workers' (UAW) General Motors Department. Bluestone (1978) maintains that any effort directed toward increasing the dignity and respect of workers and increasing workers' fulfillment requires mutual cooperation between management and the union. Bluestone's position on the necessity of cooperation between union and management is supported by D. L. "Dutch" Landen, director of Organizational Research and Development for General Motors. According to Landen: No two systems which have a natural interdependency can create or maintain an optima) existence if the forces that energize both systems are antagonistic with one another. (1980, p. 24) The initial support for joint efforts occurred in the UAW and has now spread to other unions. From many modern union leaders, the message is clear: if you are going to do something like quality circles, both parties should be involved, Finally, there is a question about whether quality circles are appropriate to this country. Cole raises the question because there are Japanese companies with successful OC efforts in Japan that have not installed circles in their U.S. plants. Other Japanese companies, such as Honda, have successfully installed OCs in U.S. plants. Even with these concerns, it is clear that quality circles are fast becoming a way of life in American industry. The next section of this paper deals with the theoretical and conceptual bases of the movement. 5 THEORETICAL AND CONCEPTUAL BASES OF QUALITY CIRCLES The Japanese acquired the concept and technology of quality control, developed the tools for problem analysis, and integrated them into the people-oriented culture of the work place. The American experience took the opposite-tack. The U.S. had technology and such things as statistical control techniques, but lacked skills in managing the human side of the enterprise. As a result, the development of OCs in this country focused as much energy on the human development theory base as the Japanese did on the quality control theory. Much of what is written about the bases of QCs focuses on the human characteristics of the system. Beardsley says, "The Quality Circle process is a .. system based upon a philosophy' which recognizes individual workers as total human beings who desire to participate in decisions affecting their work." (1981, p. 1-2-1) The theory bases address the three major elements of the QC process: . Management style Elements of satisfying work Satisfaction of human needs (motivation) The works of McGregor (1960), Herzberg (1966), and Maslow (1954) provide most of the theoretical background for QCs. The relationship of these various theories to quality circles is outlined in figure 1. In order for circles to grow and develop, management must view employees as more than labor resources or extensions of machines. In addition, management must be willing to accept input from employees. McGregor's contribution lies in his analysis of the relationship between managers assumptions about human beings (Theory X or Theory Y) and the management style adopted to get maximum results from people ("tough" versus "soft"). McGregor felt that Theory Y was preferable. According to Hall: Theory Y represents an approach to accomplishing work through others which is based on a recognition that people want to do meaningful work and that, if given the opportunity, they will act responsibly and creatively in order to make their work meaningful. (1965, p. 5) This theory provides a rationale for the management style needed to institute and maintain quality circles. 7 Organizational Aspect Theory Management Style McGregor's Theory X Elements of the Theory Theory YThe management Theory Y style views employees positively and incorporates them into the management proccess. Elements of Work Herzberg's Two-Factor Theory There appear to be factors that enhance and detract from job satisfaction. Such things as achievement, recognition, advancement, growth, responsi- bility, and the work itself are possible enhancing factors. Motivation: Satisfying Human People have different kinds/levels Maslow's Hierarchy of Needs of needs Physiological Security/Safety Social/Belonging Ego/Self Esteem Needs Self Actualization Work can meet, to some extent, all of these needs Figure 'I. Human development theory bases of quality circles. Herzberg's theory (1966) describes the factors that contribute to job satisfaction. Since there workers with their jobs, and are considerable data about the deep dissatisfaction of the American since most of the jobs generating dissatisfaction do not embody Herzberg's characteristics, it is assumed that jobs with other characteristics would produce more satisfactory results. Quality circles are designed to add many of the characteristics of Herzberg's job enrichment strategy to work, thus providing a climate for motivating people. Finally, the American work place has used a fairly simple "carrot and stick" approach to motivation. Such an approach ignores a whole range of human needs, such as belonging, selfenhancement (ego development), and so forth. Maslow's theory assumes that if jobs incorporate elements that satisfy some higher-order human needs, they then provide additional motivating potential. Quality circles provide many opportunities to fulfill higher-order human needs The proposition The author has interviewed over 500 hourly (union) and salaried employees in the last eighteen months. is strongly supported in these interviews. 8 (belonging, recognition, achievement, and so forth) and, as such, should add to the motivation of the American worker. k.Nith a deeper understanding of the various theories, one begins to see the relationship between the propositions about human beings, the discrepancies between people and the structure of their work, and how QCs might bridge the gap. In addition to the human development theory, there is an organizational development (OD) theoretical base that some think is pertinent. The basic question about the relevance of OD theory is whether quality circles are an addition to the existing structure* of the organization (with appropriate organizational modifications to make them work), or whether they are part of a larger, long-term intervention that requires or will result in fundamental changes in the organization. For example, the question of whether or how to involve the union(s) would be handled differently if the installation of QCs was viewed as an addition to the system rather than a reflection of a' larger effort to change some long-standing traditions and relationships. This topic has been largely ignored in the literature to date. For two views on the issue of QCs as an OD tool, the reader is referred to Cole (1980b) and Mills (1981). 'See, for example, Yager (1981). 9 ORGANIZATION AND IMPLEMENTATION OF QUALITY CIRCLES This section discusses the elements of implementation of quality circles. There are discussions of the goals of circles; steps in implementation; the principles of operation, organization, and staffing; the operation of QCs; and the evaluation of benefits of QCs.* Goals of Quality Circles There are two kinds of goals inherent in the creation and pperation of quality circles. Some goals reflect the interests of the organization (and, indirectly, the interests of the employees), while other goals reflect the interests of the employees (and, inditectly, the interests of the organization). The key to long-term success of QCs is for the twd. kinds of goals to complement each other. Examples of goals that serve the organization are to improve the quality of the product manufactured or the service provided; to reduce the costs of the product or service by eliminating such things as unnecessary errors or defectS; production to increase productivity by solving problems that interfere with reasonable capability; to improve communication within the organization. While such goals indicate one kind of outcome for the quality circle process, other goals serve the interests of the employees. Examples of these goals are to permit employees to use a greater amount of knowledge and skill than most jobs allow; to provide a vehicle whereby relationships among workers improve; their work by allowing to provide employees the opportunity to gain more control over them more input to factors that affect it; to enrich jobs through greater involvement in the work process. a company or organization In the procesS of organizing and implementing quality circles,reasonable balance. This should explore both types of goals, and be certain that there is a balance will help ensure the success and permanence of the QC effort. *The training components of OCs are discussed in the following section. 11 Steps In Implementing Quality Circles Kaoru Ishikawa's (1968) publication on formation principles for quality control circles is a basic source on how to implement QCs. The process recommended by Dr. Ishikawa includes (1) being certain that the key groups in the organization (e.g., management, engineers) thoroughly understand the process; (2) familiarizing middle managers and first-line supervisors with the process; (3) deciding on implementation through a democratic process; (4) monitoring the process closely; and (5) developing a set of rules and regulations for administering the process. The basic approach in this country is similar to Ishikawa's, but takes a slightly different tack because of the nature of American organizations. Understanding and commitment of top management is the critical first step. At or near the beginning of the installation process, the labor union (if present) should be involved. In Japan, such involvement would come naturally, but that may not be the case in this country. Evidence of successful efforts to date indicate that union involvement is important. The subsequent steps, according to Philip Thompson, program coordinator at the Martin Marietta Michoud Division, are as follow: A "middle down" strategy that actively involves middle managers and supervisors in the process of circle formation, training, and operation. Intensive training for all participantsmanagers, technical specialists, supervisors, employees, and advisors (part-time or full-time). Preparation of the organization so that it can effectively offer incentives for employees to participate, provide technical expertise to circles, implement circle proposals, and measure the impact of the quality circle process. Establishment of rules and procedures for the quality circle process, such as circle formation, leader selection, management presentation, reporting, and variations in circle structure (n.d., p. 5). The process should be slow and systematic in implementing the steps. Taking shortcuts or skipping steps in order to get circles functioning may risk the long-term viability of the effort. Principles of OwatIon The American experience with QCs has yielded a number of principles required for success in this country. The principles, gathered from several sources (Cole 1980b; Beardsley 1981; Rieker 1981a) are divided into two categories: those applicable to the overall effort, and those that apply to the respective circles. The principles applicable to the overall effort are as follow: Top management and critical staff (e.g., engineers) must be committed to and support QC teams over the long-term. (There is an implicit contract that management will not use teams for their own ends only.) Everyone understands that, first and foremost, quality circles are a people-building process. Involvement should be voluntary at all levels of the organization. 12 Management must recognize accomplishments of circles (and not punish mistakes or failures). There must be an extensive investment in training. Circles must be allowed to solve problems, not just identify them. The process takes time; patience is required. The process should start small and expand slowly. With these principles guiding the overall effort, there are complementary guidelines for the teams themselves, including the following: Members work as a team, not as individuals. Everyone is responsible for the success or failure of the team. Teams should choose their own problems. All members of the team should participate in the problem selection and solving processes. Team members should criticize ideas, not people. Teams must communicate openly develop good listening skills be open to new ideas. These principles help teams establish an environment in Which the teams model behavior they would like to see in the larger organization. Organization and Staffing The quality circle process fits into the existing structure of the organization rather than altering the structure. The relationship between the structure of the organization and quality circles is shown in figure 2. The QC consists of Members of the normal work team. The immediate supervisor, if possible, becomes the team leader for the circle. In the circle, however, the normal hierarchy of supervisor-employee is adjusted to a problem-solving team structure. The only position added to the existing structure is the QC facilitator. The facilitator is the staff person who coordinates the overall effort and works with the QC Steering Committee (if one exists). There are up to six different roles involved in the QC process: management, steering committee, support personnel, facilitator, team leader, and team members. The respective functions of each role are described below: 13 4; t..) MANAGER QC STEERING COMMITTEE GENERAL GENERAL SUPERVISOR SUPERVISOR QC FACILITATOR FIRST LIN1E ( UPER V I SORS .LALLIL,A.L.LLLA ALIL \ OPERATORS/ N HOURLY PERSONNEL OR LEADER (SUPERVISOR) (HOURLY) OPERATORS/ HOURLY PER$ONNEL QUALITY OPERATORS/ HOURLY PERSONNEL CIRCLE OPERATORS/ HOURLY PERSONNEL OPERATORS/ HOURLY PERSONNEL Figure 2. Organizational structure and the place of quality circles. 14 Function Role Management Management's role is to develop the overall commitment to the effort. Once circles begin to operate, management must be supportive of the total effort in order for-it to grow and develop. Steering Committee A steering committee, if used, will normally consist of representatives of the major organizational functions, and may include one or more representatives from labor. The committee serves in an advisory capacity and may perform such functions as planning, policy development, and evaluation. Support Personnel Many specialists (e.g., industrial engineers, management information systems personnel) in the organization will provide key help to circles. They will provide information critical to analysis, expertise in problem solving, and help in implementing solutions. Facilitator The facilitator keeps the QC process moving. He or she helps with organization, training, and support of the teams. There is also a critical interface role between circles and people critical to problem solving (e.g., support personnel, vendors, supervisors). Circle Leader Circle Members These groups work together in the Q This is the person (or persons) responsible for the overall success of the circle. The leader(s) must guide without taking control of the circle and must be supportive of the members. The leader is responsible for scheduling meetings, presiding at the meetings, keeping records, making between-meeting assignments, and so forth. These are the volunteers who comprise the team. They are trained in problem solving anc, quality control tools, and apply this learning to problems of their choosing. process, which is described next. Thepperation of Quality Circles The basic purpose of quality circles is to identify and solve work-related problems. Circles circle may consist of five to are formed by soliciting volunteers from specified work areas The cited as the preferred number. fifteen members, with seven or eight often C: Once a team is formed, members choose a leader or co-leaders. It is desirable to have the current supervisor of the work team in the circle serve as one of the circle's leaders. In this way, circle activities reinforce and strengthen the existing work team. Circles normally meet once a week or at least every two weeks for one to one-and-one-half (see later section for hours. In the early meetings, time is devoted to training the circle members 15 discussion of training). Once they have the fundamental problem-solving and quality analysis tools, they begin to wor'k on problems. The QC will follow a cycle of activities to solve work-related problems. The steps are as follows (steps may vary as a function of the QC model employed): 1. 2. Identify and Select a Problem The circle identifies a number of problems that need to be solved, and uses a technique to select one on which to woric. .Analyze the Problem The circle may use a process called cause-andeffect analysis to identify the root cause(s) of the problem. In the process, the circle may employ techniques such as sampling, histograms, charts, and so forth. 3. Develop Alternative Solutions After getting to a clear understanding of the cause(s) of a problem, the circle develops alternative solutions. 4. Choose the Best Solution From the alternatives developed in the previous step, the circle chooses the best solution. 5. Develop an Action Plan 6. Present the Solution 7. Implement Solutions The circle may, if appropriate, implement a solution approved by management. 8. Monitor the Solution Once implemented, the circle monitors the solution to be certain it really does what it was meant to do. The circle goes beyond choosing a solution to developing a plan for making the solution a reality. The action plan includes consideration of the who, what, when, where, how, and why of solving the problem. An important feature of the QC process is the opportunity for the circle to present its solutions and action plans to management. Usually the first one or two plans are presented in person. After that, the circle may use written proposals for some problems, se'ecting only major ones for presentation. and begin The overall cycle of circle functioning is repeated as teams solve one problem choosing the next one. and encouraged to start new As circles mature and increase in skill, more leaders are trained additional training teams. Circles that develop good problem-solving skills at one level may want regression analysis). to move them to another level of skill (e.g., learning to use statistical 16 The Benefits of Quality Circles There are three questions addressed in discussing the benefits of quality circles: Why measure benefits? What do we measure? What is the evidence of benefits to date? Why Measure Benefits? On the first question, Rieker says that management will require measurement as evidence of return on investment (ROI), because "deep down, at the really gut level, workers are considered to be extensions of machines; therefore, they are subject to the same mechanical computations we apply to those machines." (1981b, p. 157) This would be a case of circles having to do the right thing (evaluate themselves) for the wrong reasons. Rieker is by no means opposed to measurement, but says that even though the need to measure the impacts of QCs is generally accepted, "it is going to be difficult, if not impossible, to measure the full impact that QCs have on the performance of a group of such complex individuals." (Ibid.) Experience shows that things happen to people and in organizations that we do not customarily measure or that we do not have the technology to measure. outcomes Even with the limitations, Rieker concedes some possible reasons to measure the of QCs: To convince management to continue a program To convince the work force to continue to support a program To assess the need to adjust or change a program (and how) To justify the allocation of funds to circles' efforts To satisfy management expectations A reasonable rationale and perspective on measurement is presented by Tortorich et al. (1981): quality We need to measure to justify quality circles to budget-minded managers, to sell implementation efforts and to guide circle members circles to skeptics, to guide our own and managers involved in the quality circle. Any one of these reasons is enough to warrant a measures program. Together they make it an imperative. We do not We have to measure to survive and succeed. But we need not get carried away. work. What we scientifically rigorous sense that quality circles have to prove in a controlled, improvina the have to do is show that they are "working" in our organizationthat they are have to monitor, not prove. (p. 26) performance of the organization. We 17 What Do We Measure? Based on the rationale cited above, Tortorich et al. provide a classification scheme for different kinds of measures. The measures fall into three categories: (1) program outcomes, (2) person& outcomes, and (3) organizational outcomes. A summary of the elements under each heading is shown in figure 3. I. Organization Outcomes* A. Production rates B. Defect rates C. Scrap rates D. Attrition rates E. Lost time F. Grievance rates G. Accident rates II. Personal Outcomes (use attitude instruments to assess) A. Quality circle process B. Perceptions of jobs C. Perceptions of self D. Perceptions of co-workers E. Perceptions of supervision F. Perceptions of management G. Perceptions of the organization III. Program Outcomes A. Numbers trained (supervision, hourly) B. Circles formed C. Success rate (circles formed versus those now existing) D. Voluntary rate E. Types of problems chosen F. Direct cost savings Figure 3. The Martin Marietta model of quality circle measures. To this list can be added a fourth category, consisting of evaluation measures of circles: IV. Evaluation of Circles A. Ingenuity of solutions B. Difficulty of problem vs. application of tools to problem C. Enthusiasm of the group D. The design and conduct of the management presentations (Rieker 1981b) The two lists (figure 3 and Rieker's) provide a comprehensive catalog of the possible outcomes of QCs. *Tortorich et al. (1981) include some actual results of measures of organizational outcomes in this same article. 18 L)- What Is the Evidence of Benefits to Date? Although there is a long list of factors t:iat could be measured to assess the benefits of QCs, there seem to be few published results other than those related to cost savings of the actual projects. A related form of cost infdrmation commonly reported is the ratio of cost (of circles) to savings. The estimates range from 4:1 to 8:1 (Tortorich et a, 1981; Yager 1981). The Michoud Division of Martin Marietta has assembled an impressive array of nonfinancial data about its' QC program (see Tortorich et al. 1981). The company reports, for example, the types of problems studied:* Quality Improvement Cost Savings Safety Tooling Training Shop Flow Other 15% 12% 12% 8% 3% 12% At Martin Marietta, slightly over half of the problems deal with quality and cost savings. Other data available from the Martin Marietta program indicate a positive relationship between participation in QCs (six months or longer) and employee ittitudes, a lower rate of grievances from QC members than from non-QC members, and fewer safety incidents and accidents among QC members than others. A controlled attempt to assess changes in attitude is reported by Steel et al. (1982). The group monitored progress of a QC program begun at a Department of Defense installation in December 1980. The rese3,chers had a two-fold purpose: (1) to assess the impact of QC activity on attitudes, and (2) to bui)- 1, research paradigm that would provide valid and reliable data on the effects of QCs. The results`of the initial pretest/posttest analysis indicate no significant difference (p.<,05) between quality circle members and a control group on variables of job satisfaction, work group effectiveness, general organizational climate, and supervisory because it effectiveness. The authors caution,\however, that final conclusions cannot be drawn plan meas6\rement period to see the effects of QCs. They may take longer than the first additional analyses at various times ir this project. The folloWing are overall conclusions from the review of the literature on the benefits of QCs: Management is probably going to demand accountability from QC efforts, and the , / efforts (including circles) need management feedback. There is a wide range of measures that can be used in judging the impact of QCs. At present, the majority of reported results of QCS are in the areas of quality improvements and cost Savings; there is almost no information on the impacts of QCs on workers: for the fact that 11 the Martin Mahetta data on cirole activity are representative of the larger arena, they may account most of the existing results are for cost savings and quality. 19 TRAINING FOR QUALITY CIRCLES This separate section is devoted to training because training is the key.element in moving OCs from idea to reality. Most of the existing models of QCs are built around extensive training components. Training is directed at the four levels of people in the systemmanagers, facilitators, team leaders, and circle members. This section also describes the types and extent of QC training that can be delivered. Training for Management There are two kinds of QC training for managers, depending on their level in the management system. The first type is a seminar for top executives to help them understand the QC process, to move them toward a decision to implement QCs or not (or choose another approach), and to make them aware of the extent of management commitment required. The second type of manager training is targeted at middle managers. According to Cole: that A concerted training program which involves all of middle management is necessary so its needs and for the program, they will fully understand at least if they do not volunteer operations. (1980b, p. 15) Middle-manager training can take the form of a general orientation program in which aH middle managers become aware of the QC process, or it can be designed to provide middle managers with specific skills to encourage and support the QCs. For example, Honeywell Corporation which (Kacher and Soule 1982) developed a three-module middle-manager training program includes1. reinforcing team leader skills 2. diagnosing team problems 3. improving team leader performance. leaders or Donovan says that building management support "is as important as training circle knowledgeable about 78) In order for managers to become attending circle meetings." (1981, p. concept, (2) on (1) understanding the QC quality circles, Donovan recommends segments developing ownership of the QC process, (3) developing personal value for managers in the QC techniques to process, (4) developing team support behaviors, and (5) using program evaluation provide feedback to teams. According to the literature, the training for middle managers ranges from awareness experiences to the development of specific skills to support the process. which team training modules 'One exception is the Champion International model (Tewksbury and Kessinger 1982), in experience, but after that choose training with a tour-hour "appreciation training" are optional. Teams are started appropriate to their needs. 21 Facilitator Training As the internal persons responsible for coordinating the QC process, facilitators receive the most extensive training. Quality Control Circles, Inc., for example, begins facilitator training in Phase I (decision to implement) of the implementation process and continues it through Phase III (first circle meetings). J. F. Beardsley (1981) uses a training program for facilitators with a manual that is almost three hundred pages in-length, The facilitator has to learn three kinds of things: The elements of the QC process How to train others in many aspects of the QC process How to manage the QC process in the larger system As such, the facilitator needs content knowledge, some training ability, and systems skiHs. In many companies, the facilitator can involve the training department in the QC process in order to delegate some of the responsibility for the process. According to Reed and Olson (1982), the typical facilitator training course would include introduction to quality circles problem-solving techniques advanced problem-solving techniques case study exercise (how it works) communication skills group dynamics skills now to implement quality circles how to administer quality circles. With this amount of knowledge and skill, it is easy to see why the faciHtator becomes the key person in the QC process. Team Leader Training There is general consensus that QC team leaders need training in task skills and group process skills (Aymie, Greene, and Vickstrom 1982; Darnell 1982). Task responsibilities include such things as the elements of the problem-solving process (e.g., cause-and-effect analysis) and administration (e.g., record keeping). Darnell (p. 85) lists the following group process responsibilities: GEstekeepinghelping others to participate Consensus testing . 22 Harmonizing Encouraging Compromising The leader training modules address the various task and group process skills. Because there are a number of different approaches to leader training,* a summary of the kinds of training provided is shown in figure 4. GROUP PROCESS-ORIENTED MODULES TASK-ORIENTED MODULES Introduction to quality circles Introduction to quality circles Approaches to problem solving Approaches to problem solving Brainstorming techniques Group dynamics Data gathering Motivation Pareto analysis Communication skills Cause-and-effect analysis Listening skills Presentation techniques Human behavior Use of audio visual aids Team building Record keeping Conflict resolution Goal setting (team) Member counseling Evaluation techniques DecisiOn making by consensus Assigning priorities Delegating responsibility Figure 4. Examples of task and group process training modules for QC team leaders. Companies normally use training programs for circle leaders developed by consultants. Other companies adapt "canned" modules or add modules appropriate to their needs. The latter was the case with Westinghouse, which added a number of special supervisory training modules to its QC program (Jones 1982). 'See, for exampi& Aymie, Greene, and Vickstrom (1982); Darnell (1982). Team leader training has considerable oVerlap with team training, since the two roles cooperate to solve problems. 23 Circle Member Training Quality circle members need two tYpas of skillstask skills and group process skills. The task training focuies primarily on problem-solving skills (see figure 4, Task list). The task or basic problem-solving training provided by Quality Control Circles, Inc. (Rieker 1981a), for example, covers the following topics: Introduction to Quality Circles Brainstorming Cause-and-Effect Diagrams Cause-and-Effect DiagramsPart II Pareto Diagrams Histograms Checklists Case Study I (Examples of use of techniques) Graphs Management Presentations Beardsley and Associates (Beardsley 1981) recommend a ten-module program: Introduction to Quality Circles Productive Circle Meetings Brainstorming Cause-and-Effect Analysis Developing an Action Flan Data Gathering: Sampl,ng and Checksheets Control Charts Histograms and Pareto Charts Charts and Graphs Management Presentation Techniques 24 .o The two lists give a good indication of the kinds of basic task skills required for effective OCs. In addition to basic modules, most training providers have advanced courses or modules in such topics as sampling and stratification, data-gathering techniques, control charts, data arrangement, and so forth. of Although there is a tendency for laypersons to think only of the task-oriented component problem solving, the human relations or group process skills are equally important. Rykiel (1982) lists a number of group process skills that quality circle members need: Listening Clarifying Responsibility for self Participation Team ownership Group orientation Does not avoid conflict Conflict dealt with openly Understand and appreciate individual differences Taking responsibility for group's productivity skills in QCs, there is Even though there is a stated need for group process and human relations is that group in these areas. The assumption, it seems, limited evidence of planned training should get the training. responsibility and that, therefore, he or she process is the facilitator's effective if Companies that have a goal of self-sufficiency for teams, or that think teams are more circles. add group process training modules for QC members have skills as leaders, may Westinghouse (Hattrup, Reed, and Rykiel 1981), for example, has added training in communications and team building to help circles develop. The basic conclusions about circle training are the following: The universal training for circles is in problem solving (task). The task training is sequential (i.e., some training modules should follow other modules). Many OCs receive training in group process or maintenance skills. The training should probably be ongoing. Certain kinds of skills cannot be used until groups develop to a certain point, and a group may want additional training as needs arise. 25 3 Special training may be needed for certain kinds of organizations and people (see, for example, Ingle 1982). The scope and duration of training is a function of the goals of the particular organization, the goals of the QC effort, and the people involved. 26 QUALITY CIRCLES AND THE IMPLICATIONS FOR TRAINING The implications for QCs and training depend,-in part, on the view of the nature and purpose of quality circles. There will be one set of implications for training if the purpose of QCs is to improve productivity and quality control. A different set of implications will evolve if the QCs are viewed not only as problem-solving tools for productivity and quality control standards, but also as vehicles for bringing about deeper changes in the organization. This section reviews the implications of who is trained, what kind of training is received, when training is done, what kinds of considerations are made in designing and conducting training, and the outcomes or end results of the training process. Who Is Trained? The QC process requires training at all levels of the organization and for the various roles involved: Executives Union officers, committees, and so forth Middle managers Facilitator(s) Team leaders Team members Failure to train any of these groups increases,the chances that there will be difficulties in the long run with quality circles within the organization. The major implications for training are as follow: 1. The quality circle process is one of the few in which training occurs at all levels of the organization. 2. The training tends to be "bottom heavy" in the organization, i.e., team leaders and circle members receive more training than executives and middle managers. The value of involving everyone in the organization in some part of the training is mentioned often. In the long run, however, the process may reveal the need for more training at the middle part of and upper management levels in order for the process to become a strong and permanent the organization. 27 What Kind of Training? There are three variables that affect training. First, training differs as a function of level and role (except perhaps for team leaders and members). Second, the task versus the process distinction is especially evident in facilitator and team leader training. Third, there is a less obvious explicit versus implicit distinction in training. The content training differs by level as a function of the 00 implementation process. Possible audiences and types of training are summarized below: Content of Training Who Executives Orientation to QCs, roles, implementation, and so forth, designed to increase awareness and commitment. Middle Managers Understanding the OC process, middle management's role (e.g., decision making) and'support skills (e.g., coaching). FacHitator(s) Receives the most extensive training. Covers problem solving, group process, managing the 00 process, how to train others, and so forth. Team Leaders Receive problem solving, group process, presentation, and 00 team management training. Members Receive extensive training in problem-solving and quality control skills. May receive group process training. It can be seen that training audiences learn task skills and group process skills. Case studies reveal, however, that there are no clear boundaries for who ought to be trained or for the type of training that respective groups should receive. In general, there is a feeling that the more thorough each level's training, the better. The difference between explicit and implicit training . wolves the distinction between specific skill training and the resulting change in the organization. For example, while team leaders require skills in problem solving and group process (explicit training), their role as team leaders teaches them a new relationship to their employees and perhaps increases their leadership ability (implicit training). Team members learn problem solving (explicit training), but they may also learn that (1) the organization cares about them, (2) they can be recognized for their contributions, and (3) power can be redistributed via participation in solving problems (implicit training), The impHcations for training are 1. the organization needs to consider the training needs of various levels and roles in the organization; 2. the training plan should include task skills and group process skills; 28 3. consideration must be given to the potential for and effects of implicit training. Because QCs are still generally in their infant stage in this country, there is still a great deal to learn about additional forms of training for quality circles. Considerations for Training There is increasing evidence that the type of organization and the target population influence some aspects of training. For example, some types of workers may be able to move more quickly to sophisticated statistical analysis techniques than other types. Or, it may be necessary to construct a different training plan for a high-technology communications company circle than for a circle in a blast furnace at a steel mill. A second consideration is that training should reflect the goals of the QC effort. If the effort is designed to focus primarily on quality, then teams' training will be heavily weighted with quality control techniques. If a long-term goal is to make teams self-sufficient, then group process and meeting management skills should be added to training. Third, the stage of development of the process (or teams) will influence the training schedule and content. For example, once a team learns the basic problem-solving process and applies it a few times, there may be an opportunity to teach the members more sophisticated data-gathering and analysis techniques. As one looks at the previous considerations, it is clear that no single approach to training or curriculum is appropriate to or sufficient for the installation of QCs in a given setting. Outcomes of the OC Process and Training The outcomes of the QC process provide implications for quality circle training. Based on the survey of quality circles literature, the following are some examples of the outcomes of OCs and their relationship to training. Relationship to Training Outcomes Improved quality and productivity Most of the existing training is dedicated to these Organization functions better By putting the QC system together, more problems get solved, relationships improve, and so forth. Training should identify these possibilities and build toward them (e.g., communications, data gathering). Role change Supervisors or team leaders become team builders, helpers, trainers, and so forth. Workers become more responsible, use more of their talent, and so forth. Training should explore, analyze, and reinforce the skills needed for new ends. roles. 29 3 3' As many of the case studies indicate, the early evidence on outcomes of quality circles is very good (See Appendix A). Benefits associated with quality circle installations include improved quality, increased productivity, and reduction or elimination of unnecessary costs. The key to long-term survival is sound planning, effective training, and continuing support. Probably the most important fact to remember is that there are no "canned," perfect training approaches for QCs. Beyond certain basics, the type and extent of training will vary with the setting and the people. Summary Training is the heart of the QC movement. As such, the start-up and maintenance of a QC effort require careful attention to who is trained, the content of the training, the adaptations required for different types of organizations and different audiences, and the relationship between training and the intended outcomes of the QC effort. One major effect of the training in and methods of QCs will be vastly different work forces in many American businesses, industries, and agencies. 30 SOME UNRESOLVED ISSUES IN THE QUALITY CIRCLE PHENOMENON Most of this paper has been devoted to explaining the nature and functioning of quality circles. Yet, some topics have not been discussed. These have primarily to do with the implications of QCs for management/supervision, research, and education. This final section touches briefly on some issues in these areas. The Role of Management and Supervision Most managers and supervisors have learned the basic skills necessary to survive, if not excel, in their present roles. Some move easily to a problem-solving relationship with QCs, others do not. What happens to these people if one of the following is the case? The controlling people in the organization are not really convinced of the value of QCs and hence do not lend a great deal of overall support. The organization begins to discover that there are too many supervisors doing the wrong things (e.g., controlling people versus solving problems) in their present jobs. In the long run, if organizations adopt the philosophy and principles of QCs, there will be other problems arising with which the current organization may not be prepared to deal. Surely the role of management and supervision in the future is one of these issues. Research The QC movement proceeds with little or no supporting research. Something is known about the positive quantitative effects of the QC movement in Japan, and some results are available on the effects of group problem solving versus individual problem solving. There is little or no information about some of the following questions: To what extent does culture (philosophy, mores) help or hinder the QC process? How is the process or content modified from Culture to culture (or should it be)? To what extent have the underlying human development theories been tested in interaction with each other? Why do QCs fail in some organizations? (Reports from the early years concern only the ones that work.) What long-term organizational changes are necessary to sustain the QC concept? How will the QC movement fare if tho nation's economy gets better and the U.S. regains a superior world market position? 31 How does a successful QC experience change employees (socially, psychologically, technically and so forth)? These are but a few of the quastions pertinent to a better understanding of the QC phenomenon. At this point, however, far more energy is being devoted to "doing" QCs than to asking and answering significant questions about them. There is a need to conduct on-going research and evaluation of the phenomenon so there is some basis for interpreting success or failure. Education Very little has been said about what changes may have to occur in education as American companies adopt QCs. The educational system has been certifying managers and providing skilled workers for American business and industry for most of this century. Will schools of management have to revise curricula to include sections on managing the new workers? Will vocational-technical schools have to add modules on being a participative employee? Perhaps there is a deeper question: Will educators who may never have experienced the kind of work place which created the economic and work problems we now have understand what to do to help support the kind of changes that are taking place? The problem may be that by the time most educational institutions catch up with the QC movement, American companies will be off into something else. Summary The quality circle movement is so new and is growing so rapidly that some important adjuncts to changethe people who manage people, research, and educationare lagging behind the process. This seems to increase the risk that something could go wrong, simply because we are moving so quickly and with so many unanswered qLestions. Yet, if the process were to wait for the questions to be answered, the next century might get here before OCs. The phenomenal growth of OCs speaks for the need. We can only hope that the QC movement will become a permanent, integral part of the work lives of Americans. 32 3 APPENDIX A Excerpts of Reports on Quality Circle ActivitIris In Various industries The text outlines the history and development of quality circles but presents little information Selected examples of on the kinds of problems circles solve and the impact of their solutions. OC efforts are included in Appendix A to give the reader a better understanding of the quality circle process. Sources: Rieker, W. S. Quality Control Circles: The Key to Employee Performance Improvement. Saratoga, CA: Quality Control Circles, Inc., 1981b. Rieker, W. S. Update. Saratoga, CA: Quality Control Circles, Inc., November 1981c. Rieker, W. S. Update. Saratoga, CA: Quality Control Circles, Inc., February, 1982. Seib, R., ed. "Circles: Casting Employees Rally 'Round Product Quality." Ford World, Ohio Section (June 1980). Reprinted by permission. 33 Update, Saratoga, CA: Quality Control Circles, Inc. (Rieker 1981c) Martin Marietta (Orlando, Florida) The Ocala Target Detectors initiated a scrap solder reclaiming program "that has saved nearly $5,000." The Ocala Miracle Workers developed a method of close tolerance trimming of printed circuit flex harnesses, using a steel rule instead of the current hand scissors method. Result will be a significant reduction in scrap rate as well as an estimated 410-hour savings. Pertec (Chatsworth, California) A cost accounting circle updated physical inventory procedures, and set up support procedures and training classes for their use. More than $23,000 was saved in the last, physical inventory as a result of its suggestions. Another group created storage area for PCBAs by salvaging unused shelves, and painting and assembling them on their own time. One member stated, "Now that I can have an impact, I'm working with the company, not just for it." OWIP Division, Exxon Office Systems Company (Altarnonte Springs, Florida) The Troubleshooters, Inc., Team recommended change to a manufacturing test process which resulted in reduced use of specialized test equipment and removal of unnecessary parts in each unit. The suggestion was approved, with projected savings of over $50,000 in the next eighteen months. Bank of America (San Francisco, California) adopted, saving us The Kan Do Its, a data-entry circle, made a simple suggestion that "was $46,000." It proposed use of rubber bands instead of staples to attach batch headers in been a order to preclude batchers stapling over data which had to be keyed. This had Patching procedures constant source of irritation to 400 keyers. The Nightcrawlers changed In the Los and saved an average of fourteen person-hours a day with the new method. meetings, Angeles area, QC Silents, a circle of deaf operators, are using sign language in their tapping a human resource otherwise unavailable and enabling them to present recommendations to management. Total savings by Bank of America's circles to September were $162,900, with more expected. Polaroid Corporation (Norwood, Massachusetts) The Straight Line circle targeted the need for improved flow of information from the better oraanyed designer to the drafter. The circle developed a folder of more "ietailed, data needed to complete the assembly. The result information that includes all necessary was improved efficiency and less duplication of effort. 35 Naval Air Rework Facility (NARF)-North Island (San Diego, California) The 81 Packer circle of the Preservation and the Packaging Shop suggested that sheet cardboard be pre-cut to specific sizes and stored for' use as needed. Previously, items had to be measured and the box cutter constantly adjusted to suit the many sizes of boxes, resulting in production delays. Six months after implementation, documented savings were $208,838. In the Cleaning, Processing and Sandblast Shop of the NARF Components and Metals Division, a circle found the current procedure could not remove most of the paint from componeni:s. It suggested the use of an epoxy dip tank stripper, and asked the Chemical Branch of the Materials Engineering Lab to test the idea. The group agreed and a refined version was implemented. A four-month savings of $150,000 is estimated due to reduced material costs and processing time. Update, Saratoga, CA: Quality Control Circles, Inc. (Rieker 1982) General Electric (Louisville, Kentucky) The Door Fabricators circle is still lowering scrap and rework costs on refrigerator doors by reducing handling dents. So far, it has saved $6,000 through its efforts, and a 1982 savings of $77,000 is projected. The second-shift Sundowners circle's system of reworking valve plate leaders has been proven to save 70 percent of the "leakers" formerly scrapped, with an annual savings of $22,000. General Telephone and Electronics Switching and Telephone Corporation (Genoa, Illinois) One circle, the Quality Octagons, has been astutely addressing quality in the coil winding area on many levels and has proposed several solutions. It has designed a new potting nozzle head, reviewed oven cycle time, and changed inspection methods. Another circle, the Brainstorm Buddies, has Saved considerable time and money through its collective ideas: $20,900 through manufacturing changes to the DSS console; $7,000 by eliminating shellacking of lever keys; and $6,000 through a new staging procedure for housings. Bank of California (San Francisco and San Diego, Californ(a) Literally hundr,eds of potential projects have been pinpointed. One circle is addressing the' problem of what to do about the incorrect processing of merchant deposits by mail and telephone. The Mail Raiders circle is grappling with the chronic problems caused by needing at least two staff members present to deal with registered mail. The Brainy A/R Swingers circle developed uniform microfilm procedures to deal with the flood of corporate client transactions. Stanadyne (Chicago, Illinois) Facilitator Roy Foellmer writes of a resoundingly successful open house held recently at the plantthe first of its kind that has been held anywhere by a company's circles. A crowd of 36 fifteen hundred attended, including employees, families, friends, managers, and the local union's president. Visitors toured the plant and saw first-hand the efforts of a dozen circles. Exhibits included a new, improved feeding belt suggested by the Glass House circle and a more efficient method of resetting drill heads contributed by the Cone circle. RCA (Scranton, Pennsylvania) Though many new circles have been launched, the Pioneers, one of the three originals circles at RCA, is still turning out clever, original ideas. This circle collected a suggestion awardRCA shares its savings with employeestotalling $8,917.50! The Pioneers saved $59,450 as a result of its collective brainpower, and then began working-on ways to help alleviate product flow problems in the Mount Seal/Exhaust Department. Suggestions included adding line monitors to some conveyors, storage racks for scrap, and rework and procedure change. Franklin Electric (Siloam Springs, Arkansas) The majority of circles began analyzing vendor-related problems a year ago. Meetings between vendors and circles were arranged and problems discussed. Triggered-by the support and interest of the company's purchasing agent, the meetings developed solutions, one of which has saved $18,000 to date. Another circle created a new procedure for separating acceptable from faulty parts soon after receipt, thereby allowing the firm to return the defective parts for a cost-credit. "Circles: Cast Employees Rally 'Round Product Quality." Ford World, Ohio Section (Seib 1980) Many accomplishments of the quality circles at Cleveland Casting Plant pertain only to the casting business. Others are more general, involving safety and convenience as well as quality. The following are examples. Many elements go into the cores and molds used to make iron castings at Cleveland Casting Plant. These elements include sand and water, which are blended in a giant mixer called a mullor. One circle, named the Pathfinder circle, fecommended installation of load meters that can determine, by changes in amperage, the proper consistency of the batch. Said Pathfinder circle leader John Vargo: "The mixer operator can check the load meter to see if the mixer motor is drawing the proper amounts of electrical current. If the load is too wet or dry, or if some other element is not right, the operator can stop it and make necessary corrections." Another quality circlethe Stop Our Scrap (SOS) circlerecommended installation of a larger work platform for core inspectors on a mold line. "The inspectors' job is to check for defective cores as they arrive from the core room," said leader Jerry Simcak. "The new platform provides a-workingarea almost twice as big as the old one. The inspectors can move around and have better visibility as they inspect the moving cores." The SOS circle also recommended relocation of mold spray booth controls. "Before iron is poured into a mold, we spray it with a refractory that improves the finish on the casting," explained Simcak. "Previously, the operator had to leave his position if he wanted to adjust the spray application. Now he can adjust it easily from his work position." 37 4;2 Quality Control Circles: The Key to Employee Performance Improvement, Saratoga, CA: Quality Control Circles, Inc. (Rieker 1981b). Lockheed: Savings Savings at 6 to 1 Improved styles and types of test bases $ 65,600 Spray-coated PC boards instead of flow coating them (reduced defects) 380,000 Developed process to desolder and remove hybrids from PC boards without damage to hybrids 388,000 Buddy check systems; a systemized team effort in assembling cables reduced the NCRs A method of applying silver solder to triaxial cables; this reduced number of cable rejects 54,000 6,250 American Airlines Weld Shop circleVerified that reconditioned hand grinders saved person-hours and money versus using old ones 115,000 Mechanical circleRedesigned shop area to eliminate $50/hour down-time on machinery and provide supervisors's office space on shop floor 250,000 Harley Davidson Company Problems Solution Defective centers Reprocess parts to standardize to fewest size center possible. Clean centers with flexible abrasive stick (save $1,200 year). Wrinkles in fiberglass Update process data sheet to inform operators how to improve quality. Lack of operator training New training format recommended. 3M Company Problem Solution Difficulty in locating tools Establish system of color codes. Management agreed to suggested color coding of plant. Crowded work area; redesign of pallet handling along with alterations of material flows, resulting in 10,000 square ft. of space saved. 38 APPENDIX B Sample Tools of Problem Analysis and Solution: Dover Elevator 0 Squad Case This appendix contains an abbreviated case of a problem solved by a quality circle. The summary data for each step are shown on the respective pages. (Note: Dates shown with headings indicate time progress from start to finish.) Source: Dover Elevator Quality Squad. "Quality Cost Schedule." Presented at the Third Annual 1A0C International Conference, Louisville, KY, March 4-6, 1981. Reprinted by permission. 39 Dover Elevator (Louisville, Kentucky) QUALITY CIRCLE MEMBERS DEPT. 581: "B" ASSEMBLERS & PACKERS Zella Baldwin B Assembler Barbara Beltz Packer Jettie Conn B Assembler Rosiland Hall (Secretary) \ B Assembler Terest: Harris B Assembler Utility I Joe Hill B Assembler Ann Keel Stylant Kylce Packer Herman Rice (Assistant Leader) Packer B Assembler Harriet Thompson Packer Elvis Walker B Assembler Earnie Womack LEADER: Industrial Engineer Charlotte Ruppelt FACILITATOR: Richard Twilley SPECIAL ASSISTANCE: Training Specialist Joe Jenkins 41 INTRODUCTION The Q Squad is made up of "B" Assemblers and Packers in Department 581. The "B" Assemblers are usually reclassified from Utility I. The utility classification has had very little training in recognition of parts, and the handling of tools. There is a high turnover in this classification. Generally, the packers reclassify from "B" Assembly and have become familiar with the parts and tools. In determining our theme we all thought much assistance was needed in this area. Thereby, we strongly urge effective training of new "B" Assemblers prior to actual performance in their new classification. Also, any tool information and requirements should be listed in its proper place. We feel this would eliminate trying to find out - What to use - Where to use -How to use. We will achieve a better Q.C.S. (quality) in our product. 42 BRAINSTORMING FOR PROBLEM THEME (5-8-80) As a first step in the process, the team members contribute problems on which they would like to work. The list developed by the squad is shown below. (No. 8 was selected in this case.) 1. Lift truck availability 2. Bad time standards 3. Parts identification (what does it look like) 4. Training - A - Blueprint Reading B - Shipping Memos 5. Tour R and D Lab 6. Looking for "Contract" Special Items to assemble or pack 7. Part N. on all Bagged Items *8. Tools to Work With A. Who Furnishes What B. Listed on Routings 9. 10. Training in use of tools Material availability A. Vendor and Dover Made Parts 43 ANALYSIS OF THE PROBLEM The respective problem-solving steps were followed and analysis tools used to work toward a solution. THEME: Tools to Work With (6-12-80) 1. Tools furnished by operator were identified. 2. Tools furnished by Dover were identified. 3. Tools were listed on routings by Operation and work center. 4. Tool changes per week by work centers were computed. 5. Lost time cost without proper tools was estimated. 6. Training A. How to use tools. B. Safety in operation of tools. 7. QuaHty was analyzed. 44 CAUSE AND EFFECT CHART (6-12-80/8-14-80) Tools required for operation listed on route sheets. Tools Req. by Operator Tools Furnished by Dover Storage Location Lockup Tools Not Listed Tools Required Identify Tools Qty. of Tools Required Tool Maintenance Work Loters Assign to aoiAti 5101 2905 2104 5106 Sect. 18 TOOLS REQUIRED FOR OPERATION LISTED ON ROUTE SHEETS Loss Efficiency Cost Training How to Use Tools When to Use Tools 45 TOOLS FURNISHED BY OPERATOR - IDENTIFIED (7-17-80) B ASSEMBLER 1. Hammer 2. Screwdriver a. Straight b. Phillips 3. Adjustable Wrench 4. Pliers a. Standard b. Needle Noso 5. Wrench - 9/16" open end 6. Tape Measure 7. Standard Sockets a. Sizes: 5/16 - 7/16 - 9/16 - 3/4" 8. Punch PACKERS 1. Claw Hammer TOOLS FURNISHED BY DOVER IDENTIFIED (7-17-80) B ASSEMBLER 1. Air Power Tools: Screwdriver - Impact Wrench - Stapler Sealer 2. Power Bits, Adaptors, Deep Well Sockets in special sizes. Sockets 15/16" -1-1/8" 3/4" 11/16" 3. Nylon or Rawhide Hammers 4. Hand Files 5. Hand Tape Dispensers 6. Special Stamps and Stamp Pads 7. Extra Large Pipe Wrenches 8. Vise 9. King Size Felt Tip Marker, Black and White Markal Paint Sticks 10. Snap Ring Pliers: External Internal PACKERS 1. Signode Air Bander 2. Duo Fast Staple Gun 3. Signode Pascode Nailer 4. Special Stamps and Stamp Pad 1H Sect. 18 a. 2 in box b. 4 in box c. Date d. Clock No. e. Handle With Care f. High Pot Test g. Figure Adjustable Stamp with 5. Hand Tape Dispenser 6. Utility Knife 7. Marker Felt Tip 8. Steel Bander and Dispenser Spal Lettb-s 47 a. Hacksaw and Saw Blades b. Crescent Wrench Pareto Chart on Tool Changes (7-29-80/8-7-80) This pareto chart represents the number of operations by work centers for a period of one week. To develop this data each member made a cifeck sheet for one week. These check sheets were tallied for final analysis. 80 75 0 70 65 A 60 55 0 N 50 45 PE R 40 35 30 25 20 15 10 5 WORK CENTERS 5106 5101 2904 49 2905 Pareto Chart on COST OF TIME LOST - TOOL CHANGES This pareto chart represents the cost of time lost on tool changes by work centers during one week. Through time studies we found an average of .1 per hour occurred per operations when tools were not listed on the route sheet or were not availbble. 5106- 80 operations X .1 Hrs. = Total of 8.0 Hrs. Crew of 2 at $11.80 x 8.0 Hrs. = $95.00 2904- 75 operations X .1 Hrs. = Total of 7.5 Hrs. Crew of 2 at $11.53 X 7.5 Hrs. = $87.00 5101- 31 operations X .1 Hrs. = Total of 5.5 Hrs. Crew of 1 at $5.63 X 5.5 Hrs. = $31.00 2905- 10 operations X .1 Hrs. = Total of 1.0 Hrs. Crew of 1 at $5.63 X 1.0 = $6.00 COST SAVINGS WITH TOOLS LISTED ON ROUTE SHEETS 0 100.00 Weekly Monthly 90.00 A Yearly $219.00 $876.00 $10,950.00 80.00 70.00 0 60.00 PER 50.00 40.00 30.00 25.00 20.00 15.00 10.00 5.00 WORK CENTERS 5106 2904 5101 50 fr 2905 THE SOLUTION: PROPOSED TRAINING PROGRAM Section I Slideshow on Dover (30\ minutes) A. To explain what Dover does; what we make. B. Slideshow on "What is an Elevator?", to explain the parts, the function of an elevator, what types Dover makes; parts of an elevator. C. Test: To evaluate what we learned. Section II Instructor from Q Squad (1 hour) A. List all the tools for "B" assemblies and how they are used. B. Instructions on the safety of using the tools. C. *Loss of production occurs when employee is hurt. D. Test: To evaluate how many tools we know, and how to use them safely. Section III How to Fill Out Forms Correctly (30 minutes) A. Time cardS, route sheets, etc. B. Assembly procedure: Step-by-step instructions. Section IV Classroom (1 hour) A. Very basic course in blueprint reading: Assemble parts from prints. 51 IMPLEMENTATION 1. 0 Squad members have finished the posting of required tools to each operation on respective routing copies 2. Industrial Engineering put into CRT and adjust I.E. file folder $ -0- 8 hours = $ 48.00 The I.E. will make tool. assignment on new parts and ECOs during normal processing of routings. This will assist in training new I.E. in fool requirements for various assemblies in Department 581. 3. 4. Training 4 hours for each "B" Assembler. $5.63 per hour X 4 hours = $22.53. In the past year our records indicate 18 people transferred to "B" Assembly. 18 X $22.53 = yearly cost of $405.54 Department 581 budget on small tools, bits,- sockets the past four (4) years has averaged $450.00 per year. The Power Tools in 77-78 cost $953.00. The 79-80 is $1,034.00. These figures represent "A" & "B" Assemblies. This cost is not incorporated as it is already budgeted $ -0- Total Cost/Year $553.54 5. Yearly Savings Yearly Cost Total Savings $10,950.00 553.00 $10,397.00 APPENDIX C Results of a Survey of Eighteen Companies' Involvement In Quality Circles Source: Wilson, D. "Quality Circle Survey Results." Quality Circle Digest 2 (February 1982): 16-29. Reprinted by permission. control and are fairly equally dis- The following pages contain the tabulated results of the Quality Circle Questionnaire conducted in August by tributed among both administrative and factory personnel Sperry Marine Systems. Eighteen In ranking areas of Quality Circle impact, respondents cited: responded, companies Communications (ranked 28% of those who received the ques- or 1 2 by 72%) Morale (ranked 1 or 2 by 33%) tionnaire. Overall, survey responses indicate that Quality Circles, as a Productivity (ranked 1 or 2 by concept, is healthy and will continue to grow over the next few years. Re- 33% and 3 or 4 by 30%) sponse statistics indicate that: In 95% of the cases, respondents agreed that Quality Circle achievements outweigh operating problems. On the average, over 83% of all Quality Circle suggestions are implemented For all of you, I hope the information will be as useful and thought provoking as it has been for us here at Departments with Circles run the gaumut from accounting to quality Sperry. February 1982, Quality Circle Digest PROCESSES ADMINISTRATION (continued) Response Lay& Mang. Steering Committee Training 1 Top, Middle, First-Line 2 Top . Rank Most Necessary Ingredients for Quality Circle Success Mang. Supp. Awards 2 3 4 1 (Incent. Profit ROICircles must get results . Share.) 2 5 3 Top, Middle, First-Line 3 1 4 Top 3 1 2 5 Top, Middle 2 1 3 6 Middle 3 1 4 2 7 Top 3 5 2 1 8 Middle 2 1 3 9 Top, Middle, First-Line 4 1 3 10 1 2 1 1 5 11 Middle 2 12 Top, Middle 2 1 13 Top, Middle 3 1 14 Top (At the Location) 15 Top, Middle 1 16 Top, Middle, First-Line 2 17 Middle 4 2 (Union) C' 5 4 3 4 3 4 2 4 ' 2 3 4 4 1 3 ( Emp. on PeopleBuilding) . 3 4 1 li 18 4 3 Circle Members Top, Middle 4. 4 (Top & Middle) No Response Other 4 2 3 1 $ Return Rocog. 2 1 3 2 Voluntary Participation 4 (Enthusiastic Facilitator) 55 ADMINISTRATION GENERAL Response No, Employsed 6 1 Began Circles . No. Circles 1/81 1 % Employees In Circles 100 Departments with Circles Ship. & Rec., Adm. No Facilitator All No Steering Committee Facilitator reports to Staff Middle Mgt., Top Mgt., Line Supv., . 2 250 Late '79 24 87 Acctg., Eng., Mfg., Sales Full.Time Facilitator 3 320+ 5/80 12 55 Dist. (Whse.), Production, Quahty Control, Secretarial/Clerical Full.Time Facilitator . 4 5 1,046 1/80 4 4 180 6/80 12 60 (Mfg. lowa-350 M/W-550 6 3/79 Eng., Whse., Quality Control ........... Electronic Assy.. Electronic Test, Mechanical Assy Mechanical Insp. PartTtme Facilitator General Mgt., Engineering, Production Acctg., Insptction, Materials & Stores, Mfg., Mfg. Eng., Production Control, Full.Time Facilitator Mfg.. Test, Inspection, Ind. Rel., Materials & Stores. Mfg. Eng., Production Control, Controller Test (Doer.) Steering Commirtee Representation How Administered 13 50 Maintenance, Office/Clerical. Production, Tool Room Full.Time Facilitator lowaAll Plant Mgt. 10/81 7 3,500 '75, 50 50 Acctg., Maintenance, Marketing, Mfg Production Part.Time Facilitator All Major Dept., Eng., Product Assurance, Production 8 6,000 6/78 26 20 Aircraft Maintenance, Component Maintenance, Computing, Engi. Part.Time Facilitator Quality Assurance, Production Engineering, Financial, Matertal Control, Mfg., Personnel, Purchasing, Quality Control 25 Full.Time Facilitators Eng., Financial, Material Control, Mfg., Personnel, Purchasing, Quality Control, Design, Element Dept., Engineering, Office, Piece Parts Part.Time Facilitator Chief of Eng., Factory Employees, Maintenance, Material Control, Mfg.. Tool Room Full.Tane Facilitator Electronic Dev., Industrial Engineering, Quality Control, Supt, Mfg., Supt. Tooling & Trades, Training neering Secretartes, Machine Processes, Power Plant, Maintenance 20,000 9 10 800-1,000 1,100 11 200+ 10 4/80 13 9-10 8/80 15 10 '77 Sales Mfg Mgt., Personnel, Quality Control 7 ADMINISTRATION GENERAL % Employees In Circles Steering Committee Representation No. Employed Began 450 5/81 a 16 Engineering, Production, Production Control Full.Time Facilitator General Manager, Process Eng., 12 13 350 3/80 10 15 Paint (1st & 2nd), Press 11st & 2ndl, Production Control (1st), Shelf Fab. (1st & 2nd), Tube (1st), Welding (1st & 2nd) Part,Time Facilitator Industrial Eng., V.P. Mfg., Personnel, Production, Purchasing 14 200,000 12/80 37 (5 loc.) 10-20 Telephone: Business Office. Central Office Equipment, Outside Construction Manufacturing, Acctg , Assembly, Engineering, Inspection, Production Control, Test Full.Ttme Facilitator Usually Acctg.. Eng., Material, Mfg., Personnel, Production Control 15 1,943 '78 38 Assembly, Inspection, Machining, Office, Stock Rooms, Tool Design 2 Fuil-Time Fact!, Mors (Usually! Administration, Eng Materials, Mfg., Quahty Circles, Quallty Control MaIntenance, Mfg., Purchasing Quality Control, Receiving Part.Ttme Facilitators Part Time Coordinator Eng., Maintenance, Mfg., Purchasing Receiving Clerical, Engineering, Maintenance, Mfg., Quality COntrol Full-Time Facilitator Part-Time Facilitator Eng , Mfg., Operations Manager, Personnel, Purchasing, Quality Control Administration. ComPonent Mfg., Communications, Design Auto mation Div.. Instrument Div , Purchasing/Distribution, Servtce, Tech Group 19 Full.Time Facilitators Response 16 1,956 Circles No. Circles 41 5/81 14 12 '78 95 1 How Administered Departments with Circles Production, Quality Assurance 1 Coordinator , 17 18 60,000 (Domestic) 17,700 . 11/79 15 56 All Participating Areas Response PROCESSES - Continued Rank Areas Whore 0 Circles Have Most Impact Quality Productivity S Savings :ommunications Morale 2 1 1. Distributed workload more evenly 2. Reduced shipment turnaround 50% 3 1 2 Quality Circie Achievements Other 1. Reduced costs by S500.000 in 1981 2. Added 10% value increase in Mfg. a. Increased employee training and motive ion 4 3 2 1 3 3 2 4 1 5 4 2 3 5 4 1 5 1 3 4 2 1. Assembly procedures 2. Forms control and standardization 3. Rejects reduced 1. Rejects Reduced 2. Training Aids 3. Work Flow 1. Customer comments praising quality increase 2. Rework reduced, factory margin irnproved 3. Communication improved at all levels 4. Est. Savings-5110,000 per year 6 2 3 4 1. Wrote Assembly Specification Manual 2. Oev. special tool and procedure to 1 clean test tank drain system 3. Recommended use of smaller brazing rod-result: 30% cost reduction 7 3 8 4 4 1 -1, Increased productivity 2. Increased communication 2 1. 5100.000/yr. saved with weld shop 3 1 handgrinder standardization 2. 5200,000/yr. saved with better environmental and maintenance controls in paint booth 3, '540,000/yr. saved by using thread protecting s,eeve on major engine bolt 9 4 10 3 5 3 2 4 1 1. 1st-, 2nd-, 3rd-shift communications 2. Scrap reduced 2. Purchased part problems resolved 1 1, 2 Cleanliness of plastic piece parts- SO% cleaning to 2% 2. Better locations/quality of coOiers 1 Found lost tools-510,000/yr. saved 11 3 5 4 1. 2 1 Small tools for operators 2. Clarified quality standards 3. Improved operator training 12 3 3 3 13 2 3 4 14 3 2 15 2 4 16 2 1. 1 Feeling that Mgt. listens-personal employee growth 2. First year-2 to 1 payback over costs 3, Improved quality 1. 1 No response 1 3 Increase in employee morale/sense of purpose Improved supervisor/employee communication 2. Cleaner shop 3, Improved quality 1. 1 3 2 4 2 4 Safety 1. Saved 522,000/yr with improved work order system 2. Saved 51,800/yr. and improved safety with Mechanical Barrel Handlers 17 3 5 1 1 2 3 18 3 4 5 2 1 57 Improved working conditionslighting, temperature Improved tooling Improved work instructions 30% attendance increase lone Dept.) 2. Procedures documented 3 Overtime/waste reduced 1 PROCESSES - Continued Response 2 3 Yes Minor Major 1 Lack of Supervisor support/training 2. Lack of Group leadership 1. Total Management Support No X None 1 Time constraints on Facilitator X 1. Production priorities X -2. Action on recommended 1. 1, X 1, Selection of problems X by some Circles 2, Effect of turnover. on Circle momentum X 1. Overtraining Circle Members initially in problem solving techniques 7 1. Continuing interest 1. Problem resolution X 8 1 Lack of Middle Mgt. support High rate of Circle 1. Delay in forming Steering Committee X Lack of Middle Mgt. support 1, Time 20 meet 2. Training X 1. Shutting line down X Establishing people building philosophy 2, Having Quality Circles as a "way of life" X 1 Graphs 2. Charts 3. Cost Analysis 1. Projected savings 2, Impact on Quality, Productivity 1. No. accepted recommendations 2. % of total Dept. in Circles 3. Recommendation -eialtty 1. S saved 2, Communication Improved 1.. Calculated 1st year benefit to total actual cost 2. Attitude surveys 1. Participetior increase 2. Problems solved for 1 hour 2. Replacing Circle member while in Circle meeting Leader unprepared for meeting 1. 1. 12 13 1. 3. Productivity studies 'infant mortality" 10 Quality Improvement 3. S saved or cost avoided 4. Attitude surveys 6 9. Objectives 3. Management feedback on better communic mons transfers, and resIgnations 2 1. 2. , Routings/split orders Matntaining member enthusiasm over time 1. Turnaround 2. Observed employee attitude 2. Cost savings 3. Value added gains 2, Rejects at final 3, Training 5 I How? 1. Company attitudes I solutions 4 Criteria 20 Measure S uccess Opera ing Prob. Outweigh Achievements Quality Circle Operating Problems 3. Member/Leader turnover X Having a designated meeting area 2 1 Early 2 in prog 3 - Clash between meeting 1 1. Operating costs 2. S saved Scrapirework reduced S saved Volunteer rate, employee attitude, verbal feedback - 1 2 time/production req. Foremen not wanting to $ payback Attitude survey be leaders 3 14 15 1 If meetings on 0/T. problem with baby utters, rides, EIC X Difficulty of some 1 2 Layof f/transfer of Leader/Members 3 4 1. Coordinating training modules and equipment X 1 2 3. Leaders not motivating the,r people 17 1 2 1 X Supervisors, Managers, 1 2 Circle meeting room conflict 16 18 1 2 Circles hnding problems of Interest to tackle ef fectively Personnel transfers Managers not 1 Public speaking apprehension Sustained attendance . Facilitator turnover X X participating 58 1 Subjective Mgt. evaluation Employee attitude survey S saved Performance measures Scrap/rework costs reduced Operation costs reduced Observations relative to morale, rapport, etc. Measured achievements in peoplebuilding 2. Rejection rates Labor efficiency 1. Circles meeting 1. 2. Circles increasing 3. Attitude surveys, output, attendance PROCESSES Response 1 2 continued Measuring System Effectiveness 50 Not measured How Managemelt Supports Circles Inactive Circle' How Determined Circle Sugg. Imp. I Attend meetings 2. Provide meeting place 80 N. A 60 Circle participation mandatory 1. Very supportive' I. Becoming supportive Action taken by Board of I. Good 1. Good in most areas 3 50 60 4 80 90 5 80-90 100 Directors as specified in by-4am wiapproval of President Determined by Circle Feedback to Facilitator, Steering Committee 7 50 50 Become inactive by them 1 selves 2 Circle makes consensus decision I. Ostensiblyput lack 80 lapprox I. Articles in house organ 1 Mention at Dept. 1. Circle newsletter meetings 1. Own meeting room 2. Hats & shirts Visit meetings Attend Mgt. presenta. lions 3 Casual discussions with employees N,A 75 1 Presentations 85 Approx Other approaches to recognition 2. Emphasis on crosstraining Attend all Mgt, 2 Vtie re happy 8 Mandatory participation Profit sharing 1 2 members 6 with it Shortened up.front training frOm 8 hr. to 3 hr. 1 1, Verbal 2. Plant meetings 3. Attend Circle meetings 1. Steering Committee Innovations Middle Top 1 2 1. Part-time Facilitators On Steering Committee Recognition 3 Awards genuine enthusiasm 1 Most take hands-of f 1. aPProach 2 2 Mgt. Presentations video. taped Improved 3day Leader Training 3 Mgt. Circles Too soon to measure Determined by group Mutual agreement within Circle Attend meetings 2 Of f -site training 3. Staff presentations 1 Union coordinatori Staff presentations in Union Hall 3 Social/technical Plant 2 systems have evolved 10 N,A 100 Line moves out of plant 2. Lack of interest 3. No members lef t 11 90 100 By Circle 1 Idea ,mplementation 2 Work order issuance 3 Meeting attendance I Participate in Circle Activities 1 Provide areas, time. materials 2 1 I Whole page in company newspaper Current members train new members 2 Non-members attend 3 Promote circle growth 12 Can't be determined Unknown now Not encountered On Steering Committee Donate time, knowledge, expertise 3 APProve expenditures 1 2 1, Guest lecturers, recogni- tion "teas" 2. Colorcoding blueprints. tool identification 3. Member badges; training certificates 13 75 95 By Circle 1 2 14 90 90 15 60 90 Circle decision 1 No attendance 2 No protect selected Company Pres. supports in ail ways / P for Mfg.lip service Provide Facilitator facilities 2 Attend Mgt Presenta tions 3 Provide recognition Attend Circle meetings and Mgt Presentations 2 Provide assistance in formation 3 Obtain outside help Circle decision 16 1 Attend meetings, 3 Providing meeting 18 Unable to 'sniate ,rnpact so 90 Lack of participant 1 1 Two-day workshop for 2nd and 3rd4evel Managers 1st and 2nd-shift Circles meet 1 ing together on same protect 2 Rotation system for Leaders all members serve as Leaders 3 Non-departmentai person is Circle CoLeader t P resentai-ons 2 PrOwde assistance figures 17 Justification only 1 1 Teach basic course in statistics 2. Teach ProleCT Cost 1 Steering Committee compositiondiagonal slice of organization 2 Trainingdeveloped and conducted in house Onrecpiracrite time Facilitator room/supplies 3 Participation Implement suggestions NA Interest 2 Decision by Circle. Mgt or both Attend Mgt Presenta uons 2 Talk abont Circles 3 Have Mgt Circles 3 Emplcyee newsietters 1 59 1 Circie guidehries 2 More emphasis On goal setting with Mgt 3 Measurement system setuP result of graduate student proiect RECOGNITION PROCESSES-Continued MONETARY AWARDS Ways for Circle Recognition Benefits Offsetting cost? Response Cons rros Types of Awards -No Opportunity to participate in making Mgt decisions 1 2 Company newspaper Mgt. Presentations 1 2 ...._ .. _ Certificates Quality banners-ind . and fine 3 Newspaper 'photos 3 1. 2 4 Published in Company journal Bulletin Boards 1 2 5 4,5 1 1. Circle pins 2. Training certificates 3. Departmental meeting mention 4 Newsletter ret 6 1 2 Monetary for Cost 1 2 1. Certificate 2. Photo 3. Banner Should be in concert with other monetary recognition Individual & Circle recognition None - - Same as Recognition 9 1 10 1 A quarterly Proht.Sharing Plan would promote Participation Dont recommend specific monetary rewards Newspaper Monetary and symbolic Promotes short,range interest Recognition needs to be longrange 12 Presentations Presen tation 2. Company newspaper articles Mgt. Presentation Pictures in Company newspaper I 2 1 ret. NiA 2 N 'A 13 Newsletter articles 2. Recognition lunches, teas 3. Bulletin board displays 4 Photos posted 1 Better Mgt. Presentations reenacted at monthly Staff Meetings 1 2 1 IPI Can breed "hard feelings" 1 2. Difficult to administer Same as RecOgnition 2. Plant displays 11 in personal or take-home has been effective Companytlocal newspaper articles Bulletin boards 1. Mgt. Presentations 2. Company newspaper articles 3. Aisle displays 4 Town newspaper articles I ret Motivation in America green 2. Bulletin boards 8 only Reductions 3 Hats 7 Money motivates for shortterm None Workers more Interested in eliminating various work f rustrations than getting paid Suggestion Program Awards when received Training 2. Recognition 1 1. Within work itself 2. Possible salvation of a job Training Certificates Money necessary to implement group needs Can't buy commitment 1. Possible ideasteahng 2. How to recognize who did what % Of work 3. Money might control problems worked 1. Circle Members don't want special awards 2. Not part of program 1. Certificates 'Duplicate to Person net files) 2. Membership Badges None Not planned 1 Circle Members Proud of accomplishments 1 If used, someone always close but not a winner 2. Money doesn't always reflect degree of 1 thoughtreffort 3 14 15 16 1 Mgt Presentations T-shirts 2 Company newspaper 3 Belt buckles for leaders 4 Bulletin boards 1 1 Jackets caps. Tshirts Certificates,PlaCques 3. Company newspaper 2 17 1 2 Team name Posters. emblems 3 Newspaper articles 4 Bulletin board 18 1 2 Mgt Presentation Newsletters Intrinsic 1 2 Company merchandise 1. Present none 2. Developing Service Award Plan Personal Mgt thanks 2. Mementos I 3 Photos 4 .Bulletin boird 1 1 2 If Herzberg & Maslow correct, better motivators exist Perceived inequity Hard to measure real work output in dollars Difficult to administer Tend to emphasize snort-term Not People.building philosophy 3 Circles may work on "money" Ormects first 1 Most participants consider pro, fessional stature over rewards 2 Personai recognition and lob secunty more ,mportant announcements 1 2 Certifica te Lunch 3 Photos in newsletter Profit Sharing 4 60 1 2 Perceived unfairness Difficult to administer FUTURE UNIONS Response] % Union Union Involvement 1 N/A fl.A 2 N/A N/A 3 N/A N/A NA Sustamment Sustainment None N. A 1. Increased training 2. Inter-team cooperation and involvement in problems 1. Gradually phasing out Facilitator Supervisor training 1. Include 60% of plant 2. Recommendation emphasis 1. Reach cost effectiveness 4.1 1. More developments in recognition 2. Refine measuring criteria N/A on quality and productivity 3 Gain total Mgt. support NA Ni A NA No Response 5 N,A NA NiA Continued growth 2. Involve other Dept & Div. 6 Hourly- Neutral to positive Install in MIN plant lowa-3 of 5 Union 1 Union Committee persons in Circles . 3. More Leader recognition and development No Response 4 100 Innovations/Changes? 24-Month Plans 12Month Plans Union Reaction 1. Move more to problem prevention 2. Joint meetings to solve department-wide problems 1 Expand to both plants 2. Train all Supv. 3. All employees get chance to participate No Response Advanced training for Circle 1 Leaders/Members None at present 1 union person on Steering Committee at WV 7 8 They participate 5 75 approx. Most members are Union members 9 85 Equal with Mgt. 10 90 Have participated since start Continue Quietly suppo rtive. have monitored pro. Expand in current location gram since start 2. Union Stewards Circle Leaders So-so 1 Asked, .1.61hy didn't we do this 25 years Expand as Circles evolvenot faster Don't know No Response Expand into other Company locations No Response Same 1. More MiddleMgt. training 2. Use statistical 3. Training-training.traming 12 additional Circles 2. Foremen as Leaders 1. Better training material ago? 11 12 NA NiA N 'A Favorable NiA . NiA N,A 1. 6 more Circles in Assembly 2. More active Steering Com mittee 3. Develop new leaders 1. Expand to 25 Circles 2. Training in basic statistics 3. White collar Circles i. Expand to other production 1 3. Circles working with Circles 1. Parttime Facilitator from Middle & Top 1. Combine Circle groups. Ex Mfg. & Design Mgt. 2 Greater use of control charts to monitor 1. Closely monitor program for No Response changes and improvements areas 2. Introduce to Supv , Production Support, and Clerical Staf f 13 WA NA NA No Response 14 80 1 Some support from sidelines 2 Others want to negotiate conditions and Usually neutral to positive Careful expansion No Response No Response More expansion No Response co.manage Circles 15 65 Union members offered Leader training 2 Union bargain,' ing member a Circle Leader 1 1 encouragement or discouragement . 16 NA NA 17 90 Pre-implemen tation briefing 2 Circle participation by Stewards 18 Ni4 N'A 1 Wait and see 1 N41 1 Positivegood support N/A Have Quality Circles in 1 Increase to 75 Circles 2 85'ii of all employees in Circles 100 Circles in third plant 2. No apparent 2 Add 15 Circles 1982 1 2. Fully implement recog nition program Moderate growth at plant level Maintain & expand. 2. More Mgt Circes 1 3. Use statistical techniques 4 New reporting system 'Iowa Right To Work State so Ur i not union m mbers 61 Add 15 Circles 1983 1 Add tool designers, process engineers, industrial engineers, and quality control people to 1 existing Circles Move toward Circle self, 1 maintenance so that no one 2. Add "white-collar" person is totally concerned with Circle activibes Circles Continued growth 1 Continue training Man, agers and employees in statistical techniques No Response 1 Increase use of statistical techniques _ REFERENCES Aymie, M.; Greene, M.; and Vickstrom, R. "Intercompany Leader Training." In Transactions, Fourth Annual Conference, St. Louis, Missouri, March 1-4, 1982. Midwest City, OK: International Association of Quality Circles, 1982: 11-18. Beardsley, J. F. Quality Circle Facilitator Manual (1982 Edition). Campbell, CA: Beardsley and Associates, 1981. Bluestone, I. "Human Dignity Is What It's All About." Viewpoint, AFL-CIO Industrial Union Department, Third Quarter, 1978. 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