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Quality Circle at Indian 
companies 
Abhishek Jindal 
101303006
Quality-What it stands for? 
Q: Quest for Excellence 
U: Understanding Customer Needs 
A: Action to achieve customer Appreciation 
L: Leadership Determination to be leader 
I: Involving all people 
T: Team Spirit 
Y: Yard strict measure progress
Quality Circle- 
A way to Quality Improvement
Quality Circle 
• A quality circle is a volunteer group composed 
of workers , who do the similar work, usually 
under the leadership of their own supervisor . 
• They meet to identify and solve work-related 
problems and present their solutions 
to management and implement the solutions 
themselves in order to improve the performance 
of the organization. 
• It is a way of capturing the creative and 
innovative ideas lies within the workforce.
Concept of Quality Circle 
• The concept of the quality circle is 
primarily based upon recognition of the 
worker as a human being,as someone 
who willingly works on his job, his wisdom, 
intelligence, attitude and feelings. 
• It is based on the human resource 
management considered as one of the key 
factors in the improvement of product 
quality and productivity.
Objectives of Quality circle 
• Change in Attitude- From “I don’t care” to 
“I do care”. 
• Self Development- Bring out “Hidden 
Potential” of people in company. 
• Development of Team spirit- “I could not 
do but we can do it”. 
• Improved organisational Culture- Positive 
working environment.
Process of Quality Circle
PDCA(Deming Circle)
Quality circles at BHEL 
(Bharat heavy electricals 
limited) 
• BHEL is the largest 
engineering and 
manufacturing 
enterprise in India in 
energy related or 
Infrastructure sector.
• BHEL offers around 180 products and 
provides system and services to meet the 
needs of core sectors like power, 
transmission, industries etc..
• Hyderabad unit of BHEL was initiator of 
incorporating the concept of Quality circles 
with 5 QC in that unit. 
• This concept was first sold to the 
company’s top level executives, but later it 
was felt that this movement will not gain 
momentum without the support of middle 
level management.
The managers of BHEL realised that QC 
didn’t only focus on improving quality but 
also the following :- 
• Improving human relations 
• Improving productivity 
• Improving participative culture 
• Improving communication 
• Promoting leadership development
Results 
• By the end of 1998 there were more than 
1700 QCs. 
• In 2005, BHEL notched up its highest 
turnover of Rs 105.2 million crossing Rs 
100 million mark for 1st time. 
• QCs contributed to about savings of Rs 20 
million !!
Hyderabad BHEL 
plant was 
adjudged the 
“Best 
Organisation in 
promoting Quality 
Circles” by QCFI 
Chapter 
Convention.
Quality circles at SMCEL (SM 
creative electronics limited) 
Company is currently 
engaged in the following major 
activities 
•Manufacturing and marketing of 
all important constituents of DC Power 
Plants
•Telecom and networking division is organised to support 
varying needs of Telecom operator and enterprises 
through supply,installation and maintainence. 
•Strategic Electronic Division (SED) is another important 
division which, 
along with its Power Technology Group (PTG) is 
specially organised to cater to strategic needs like 
defense,satellitle applications, nuclear power plants etc..
Results after implementing 
QCs 
• After implementing QCs the saving-cost 
ratio was found to be between 5:1 and 
10:1, which indicates very good 
performance of this company. 
• QCs have tripled since inception of 
program. 
• The percentage of employees who attend 
the introductory presentation actually end 
up joining the QC programme is 70%.
Quality circles at 
BSNL(Bharat Sanchar Nigam 
limited) 
•World’s seventh largest 
Telecommunication 
Company providing 
comprehensive 
range of telecom services in India. 
• It has become one of the 
largest public sector unit in India.
• The branch has only two circles, with an 
average of around 35 members each. Also, a 
circular calling for volunteers was good enough 
to generate interest among the employees as 
many participated in the programme. 
• The absenteeism and grievances were reduced. 
• Though QCs were less but there were high no. 
of employees per circle .
Results 
• The saving cost ratio was in between 5:1 
to 10:1 which is high inspite of less no. of 
proposals being accepted. 
• Though no. of circles were less but the 
suggestions that were accepted were very 
effective and caused significant cost 
reduction.
Other Prominent Organizations
Advantages of Quality Circles 
• It makes full use of workers potential. 
• It provides the workers autonomy and 
sense of achievement. 
• It ensures greater participation and 
involvement of workers in day to day 
functioning of his department. 
• It helps in finding solutions to several 
problems
Thank You
Questions???

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Quality Circles

  • 1. Quality Circle at Indian companies Abhishek Jindal 101303006
  • 2. Quality-What it stands for? Q: Quest for Excellence U: Understanding Customer Needs A: Action to achieve customer Appreciation L: Leadership Determination to be leader I: Involving all people T: Team Spirit Y: Yard strict measure progress
  • 3. Quality Circle- A way to Quality Improvement
  • 4. Quality Circle • A quality circle is a volunteer group composed of workers , who do the similar work, usually under the leadership of their own supervisor . • They meet to identify and solve work-related problems and present their solutions to management and implement the solutions themselves in order to improve the performance of the organization. • It is a way of capturing the creative and innovative ideas lies within the workforce.
  • 5. Concept of Quality Circle • The concept of the quality circle is primarily based upon recognition of the worker as a human being,as someone who willingly works on his job, his wisdom, intelligence, attitude and feelings. • It is based on the human resource management considered as one of the key factors in the improvement of product quality and productivity.
  • 6. Objectives of Quality circle • Change in Attitude- From “I don’t care” to “I do care”. • Self Development- Bring out “Hidden Potential” of people in company. • Development of Team spirit- “I could not do but we can do it”. • Improved organisational Culture- Positive working environment.
  • 9. Quality circles at BHEL (Bharat heavy electricals limited) • BHEL is the largest engineering and manufacturing enterprise in India in energy related or Infrastructure sector.
  • 10. • BHEL offers around 180 products and provides system and services to meet the needs of core sectors like power, transmission, industries etc..
  • 11. • Hyderabad unit of BHEL was initiator of incorporating the concept of Quality circles with 5 QC in that unit. • This concept was first sold to the company’s top level executives, but later it was felt that this movement will not gain momentum without the support of middle level management.
  • 12. The managers of BHEL realised that QC didn’t only focus on improving quality but also the following :- • Improving human relations • Improving productivity • Improving participative culture • Improving communication • Promoting leadership development
  • 13. Results • By the end of 1998 there were more than 1700 QCs. • In 2005, BHEL notched up its highest turnover of Rs 105.2 million crossing Rs 100 million mark for 1st time. • QCs contributed to about savings of Rs 20 million !!
  • 14. Hyderabad BHEL plant was adjudged the “Best Organisation in promoting Quality Circles” by QCFI Chapter Convention.
  • 15. Quality circles at SMCEL (SM creative electronics limited) Company is currently engaged in the following major activities •Manufacturing and marketing of all important constituents of DC Power Plants
  • 16. •Telecom and networking division is organised to support varying needs of Telecom operator and enterprises through supply,installation and maintainence. •Strategic Electronic Division (SED) is another important division which, along with its Power Technology Group (PTG) is specially organised to cater to strategic needs like defense,satellitle applications, nuclear power plants etc..
  • 17. Results after implementing QCs • After implementing QCs the saving-cost ratio was found to be between 5:1 and 10:1, which indicates very good performance of this company. • QCs have tripled since inception of program. • The percentage of employees who attend the introductory presentation actually end up joining the QC programme is 70%.
  • 18. Quality circles at BSNL(Bharat Sanchar Nigam limited) •World’s seventh largest Telecommunication Company providing comprehensive range of telecom services in India. • It has become one of the largest public sector unit in India.
  • 19. • The branch has only two circles, with an average of around 35 members each. Also, a circular calling for volunteers was good enough to generate interest among the employees as many participated in the programme. • The absenteeism and grievances were reduced. • Though QCs were less but there were high no. of employees per circle .
  • 20. Results • The saving cost ratio was in between 5:1 to 10:1 which is high inspite of less no. of proposals being accepted. • Though no. of circles were less but the suggestions that were accepted were very effective and caused significant cost reduction.
  • 22. Advantages of Quality Circles • It makes full use of workers potential. • It provides the workers autonomy and sense of achievement. • It ensures greater participation and involvement of workers in day to day functioning of his department. • It helps in finding solutions to several problems