The QC Circle Phenomenon
J. M. JuranManagement Consultant,
New York, New YorkThe QC Circle is a small group of departmental work leaders and line operators who havevolunteered to spent time outside of their regular hours to help solve departmental quality
problems. The QC Circle movement originated in Japan about four years ago. A
phenomenal rate of growth has taken place. The effect of the movement on the Japanese
drive toward quality leadership may well be dramatic.
On the afternoon of Wednesday, April 20, 1966, a Westerner visiting the Daiichi Seimei
Hall in central Tokyo would have witnessed a remarkable sight. The meeting in progress inthis historic auditorium (General Douglas MacArthur staged his large conferences here)
was billed as the 14th QC Circle Conference. It had started at 1:00 p.m., and, after someceremonial addresses, the technical program got under way. Seven Japanese companies
presented reports on improvements they had made on a variety of company problems. For
example, the first report, by Takenosuke Kakegawa of the Stereophonic plant of Tokyo
Sanyo Electric Company, was on "Finding a Solution to Trouble About Solder." Theseventh report was by a trio, Shoko Yazawa, Reiko Yamada, and Mitsuko Yamazaki, fromthe Car Radio Division of Matsushita Communication Industrial Company, who reported
on "Decrease of Car Radio Defects in Final Assembly." Each report was allowed 15
minutes, with 7 added minutes for discussion from the floor.
To understand what was so remarkable about the conference, let us look in detail at thepresentation made by the trio from Matsushita. They had taken on a project to reduce final
assembly defects in the radios which Matsushita makes for sale and export to automobile
companies. From information of assembly rejections and customer troubles, the trio
prepared a Pareto analysis,"(1) and established that the number one defect was loose control
knobs. This "public enemy number one" accounted for 80 percent of all final assembly
defects. The number two defect, missing mounting brackets, comprised 13 percent of all
defects. The remaining 7 percent were assorted minor defects. Collectively, all defects ran
at a level of 2.2 percent of the product.
Next, the trio considered each of the two principal defects (loose control knobs and missing
mounting brackets) as a project requiring a breakthrough to a new level.

Selected Papers nº 22, 1967

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Copyrights 1994 TPOK/Juran InstituteThe control knob is designed with a blind hole to mate with the control shaft. To provide
enough friction to hold the knob tight, the shaft is slotted to create two springy sides which
are then spread with a screwdriver during the final assembly operation.
However, there was a difference of opinion as to the cause of loose control knobs – was it
parts, operators, tools, methods? The trio mapped out the variables on an Ishikawa diagram,as shown in Fig. 1. This is described in Reference 2.
From analysis and from some experimentation, it was established that the two main causes
were:
1.
2.

Variation in slot size when enlarged by different operators.
Screwdriver not well suited for the operation.

A solution was found by providing screwdrivers with a parallel-sided blade instead of atapered blade.
The missing mounting brackets were the second project. (These brackets are used in the car
factory to mount the radio to the automobile dashboard). The cause of missing brackets was"operator error." Radio assemblers in a prior stage of manufacture have a wide range of
operations to perform, and sometimes omit one or both mounting brackets.
The solution was to fool-proof the final assembly operation. An assembly jig had been
needed anyhow as a holding device during final assembly. Now the job was built, and built
in such a way that the mounting brackets were the means of supporting the radios in the jig.
This simplified handling the radio during final assembly and also eliminated shipment ofradios with missing mounting brackets.
These two quality breakthroughs lowered the final assembly defect rate from 2.2 percent to
0.6 percent.
The trio had divided up their 15 minute presentation into three sections of five minutes
each. Shoko led off, followed by Reiko and Mitsuko, respectively. In the manner of such
Japanese conferences, the visual aids were large painted sheets of paper hung from a long,horizontal, wooden two-by-four, like wash on the line. These sheets showed sketches of theparts, the flow of the process, the methods of analysis, and charts of the results obtained.
The trio made their presentation with a sure-footed grasp of their subject. Even to thisauthor, whose knowledge of Japanese is minimal, the explanation was clear. The wellprepared visual aids helped quite a bit. During the seven minute question period, Mitsuko,
being the final speaker, also fielded the questions from the floor. This was likewise avirtuoso performance, for Mitsuko was plenty alert, and was ready with the answers before
the questions were half finished.
{bmc figure\SP6722_1.dib}

Selected Papers nº 22, 1967

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Copyrights 1994 TPOK/Juran InstituteWhat was remarkable about all this was the fact that the presentation of the seven reports at
this conference involved not a single manager, supervisor, engineer or other management
specialist; nobody from what an American calls the "exempt payroll." Instead, the speakers
were mostly what we call "working foremen" or "work leaders." (The usual Japanese word
is "GEMBA-CHO.") Some speakers were production operators off the assembly floor. All
were either leaders or members of "QC Circles." Shoko, Reiko and Mitsuko were girls off
the assembly line. Their full time job is to assemble car radios. Shoko and Reiko were 21
and 23 years old, respectively. Mitsuko was 18!
Each of these seven reports represented the work of a "QC Circle," QC meaning Quality
Control. This QC Circle movement, which began in 1962, has been snowballing into
something massive. As of April 1966, there were already over 10,000 such circles in Japan,
and every one of them exhibited the following characteristics:••••

the membership consists solely of people at the bottom of the company organization –non-supervisors and working supervisors;
membership is voluntary;
the work of the circles is mostly conducted outside of regular hours;
compensation for this out-of-hours work varies from full time down to nothing.

To understand how a QC Circle, such as the three young girls off the assembly line, could
take on and complete a project like improving the assembly quality of car radios, it isnecessary to go back a few years, and in some respects, a few centuries. We will shortly
return to this.
Results to Date
There is a good measure of results achieved by the QC Circle movement because ameasuring stick has been built in. Each Circle is required, as part of each project
undertaken, to evaluate the results. From these evaluations, the editors of GEMBA TO QC(Quality Control for the Foreman) have determined that:••

the Circles have averaged savings of about $3000 each;the 10,000 Circles have collectively achieved $30 million in improvements.

This is astounding for a movement which is still only a few years old. No less significant is
the fact that this has been done without pre-emptying the time of the managers andengineers, who remain free to devote themselves to inter-departmental and upper levelprojects. The idea that these Japanese companies have found a way of going through all
operations with a fine tooth comb, and without adding to the burdens of the managers andengineers is something to ponder on.
The main effect has been in control, this being inherently the basic role which can be playedby the QC Circle. There has been much analysis of sporadic troubles, and much done to
reduce variation and to prevent recurrence. More and sharper control tools have been madeavailable to the factory floor: clearer interpretation of standards; more complete

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Copyrights 1994 TPOK/Juran Instituteinstrumentation; better data feedback; control charts.
Part of the improvement in control has been an increased awareness of the sequence ofsteps in the control cycle. As quality improvements are worked out, action is taken toincorporate the improvement into revised, standardized methods. Further steps are thentaken to set up the fool-proofing, the feedback and the alarms which will hold the gains.
Beyond improvement of control, a gratifying proportion of the projects are of abreakthrough nature – by systematic study they take the department to better levels of
performance, levels not previously attained.
The intangible by-products of the foregoing results are evident but not measurable:••••

the foreman's ability to control and lead his department is increased. His job of
promulgating instructions is noticeably eased.
the operators have greater interest in their job, and a higher morale. This extends topeople formerly indifferent, and to the older age group as well.
the relationship between the staff people and the line workers has improved noticeably.
there is being developed, on the factory floor, a generation of workers with successful
experience in use of what have to date been regarded as management tools. The
potential of these workers to become the managers of tomorrow is simply breathtaking.

How the QC Circles Started
The QC Circles are not some isolated invention; they are a very logical outcome of theJapanese drive for training and accomplishment in quality control. It is easy to trace thisevolution.
The authoritative Japanese narratives (by Koyanagi, Ishikawa and others) all trace formal
training in modern quality control methods to the early 1950's. The seed courses were
Deming's lectures in statistical methodology (1950) and Juran's courses on Management of
Quality Control (1954). The Japanese zeal for learning and for self-sufficiency brought out
a follow-up of numerous courses, by local experts, for engineers and managers at all levels.
The Japanese were not content to conduct this training for engineers and the supervisorylevels. Japanese concepts of organizing work do not follow the strict Taylor concept ofdivision of work, i.e., planning to be done by the engineers, and execution to be done by theforemen and workers. Instead, the Japanese leave a good deal of planning and creativity to
be carried out by the production force.
These same concepts of organizing work have carried over into the quality function. The
broad based Quality Control Department, with its arrays of Quality Control Engineers,
Reliability Engineers and still other specialist categories, so commonly found in America, is
a minority organization form in Japan. The Japanese approach has been to teach quality
control methodology to managers in all functions – Research, Development, Design,
Production, Purchasing, Sales, Accounting etc. With such a broad base of training, the needfor a broadly-based Quality Control Department is diminished, as is the need for specialist

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Copyrights 1994 TPOK/Juran Instituteengineers. (Japanese engineers are seldom specialized as Quality Control Engineers.) As aconsequence, the Quality Control Department in Japan has mainly an advisory, consulting
and promotional role. A minority of these departments do conduct quality planning. Moreusually. the various line departments have the responsibility for achieving quality by
utilizing modern quality control methods while the quality audit is done by a specialized
staff department.
Under this Japanese system of organizing work it became logical to extend training inquality control to the category of "Gemba-cho." The Gembacho 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 Gemba-cho consists of many thousands of people, it was necessary toresort to mass media of training. Japanese ingenuity rose to the occasion by creating new
training forms as well as by adapting conventional forms.
The conventional forms consisted of textbooks and manuals such as Professor Ishikawa's
textbook, introduction to Quality Control. First published in 1952, the third edition (1964
and 1966) has grown to 350 pages and to two volumes, and now includes much on
management of quality control. The more recent (1959-1960) Quality Control Text Book for
Foremen runs to 234 pages and provides cook-book information on quality improvement aswell as quality control. This manual is edited by Professor Ishikawa's group of consultantsin the Japanese Union of Scientists and Engineers (JUSE) and is published by JUSE Press
Co.
Turning now to the unconventional training forms. the first of these was the radio broadcast
courses in quality control. The pioneering course was a series of 91 lessons of 15 minutes
each, broadcast daily from June through September 1956, and repeated later in the year.
This course was repeated annually through 1962. The radio text for these courses sold over
100,000 copies!
A television lecture series was next. The first of these ran from April 1960 to March 1961
and consisted of a series of weekly lectures, each 30 minutes long.
The journal "Quality Control for the Foreman" (GEMBA TO QC) was launched in 1962 ona quarterly basis. Now on a monthly basis, it has a lively, practical content, and a circulationof over 28,000 copies.
Annual Foremen's QC Conferences started in November 1962. (November is designated as
Quality month in all of Japan, and the Q flags really fly all over.) These conferences arestaged in various industrial cities, with a burgeoning attendance.
With such a background, the logic of extending training to the rank and file becomes moreevident. Given an extensive training of the Gemba-cho, his ability to put this training to use
is in proportion to the use he can make of the resources around him. and especially thehuman resources. It remained to find a mechanism for using these human resources, andthis mechanism turned out to be the QC Circle.
Evidently the initiative for the QC Circle concept came from the editors of GEMBA TO

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Copyrights 1994 TPOK/Juran InstituteQC, who saw in the non-supervisors an immense potential for contribution through training
and motivation. The QC Circle idea was born in about 1962. By August 1966, there wereabout 8,000 registered circles, with a membership of over 120,000 employees. The
unregistered circles probably involve an even greater number of employees.
The regional and national organization for QC Circles followed as a matter of course. The
journal GEMBA TO QC became, naturally, a national journal for the QC Circles as well.
The first regional conference was held in May 1963. A little over three years later, the 20th
conference was in session.
How the QC Circle Movement Spreads
Now that these circles already number in the thousands, the pattern for creating new ones
has become well established.
The concept makes its way into a company through awareness of successful results in othercompanies. This awareness comes from the numerous success stories in GEMBA TO QC;
from attendance at the annual foremen's QC conferences; from attendance at QC Circle
conferences; from visiting companies which have active programs going. Further stimulus
comes from the internal QC staff people or from the external consultants who are on thestaff of GEMBA TO QC, or of the Japanese Union of Scientists and Engineers.
As the gathering awareness creates a favorable atmosphere, various Gemba encourage theformation of QC Circles in their departments. Each circle is trained, mainly off the job, by a
combination of three training methods.
1.

Training by the book. This is a course, of 10 to 20 hours duration, in specifictechniques, mainly:- The Pareto analysis to find the "vital few" problems- The Cause and Effect Diagram (The Ishikawa diagram) .
- Histograms- Graphs- Control charts- Stratification- Binomial probability paper

2.

Discussion of cases worked out in other companies, as reported in GEMBA TO QC

3.

Discussion of internal quality problems, solved and unsolved.

With the training behind them, the Circle identifies a problem to be solved, tackles it andsolves it. It then tackles another, and another. (Some have solved over 60 problems.) The
record of successful internal solutions breeds other QC Circles within the same company,
and the movement spreads. As the number of Circles in one company grows, there arise
new opportunities for stimulating interest and action. Companies organize in-houseconferences of their QC Circles, providing opportunity for publicizing results and for giving

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Copyrights 1994 TPOK/Juran Instituterecognition to the Circles who achieved the results.
At the Matsushita Training Center near Osaka, I saw a large training facility devoted to QC
Circle activities. The walls of this large room were literally papered with the record of
projects successfully carried out at various plants – projects on transformers, tuners,
speakers, resistors, etc. An example is shown in Fig. 2. In addition to the reports, there were
pictures of the members of the Circles which had achieved the results, along with otherforms of recognition.
In the Toyota Motor Company plant in Nagoya, I saw use made of a most interesting
information center in each shop department. The information center consists mainly of alarge bulletin board, plus satellite boards for exhibiting samples of defects and such. The
bulletin boards commonly exhibit:
a diagram of the flow of the process, including location of control stations as well as
control points and control levels at each station;
the Pareto analysis for key defects;
the Ishikawa cause and effect diagram for these key defects;
data on current quality performance, usually in the form of control charts. (The bulletinboards also carry some non-quality information such as departmental cost trends, thesafety record, etc. ){bmc figure\SP6722_2.dib}
An interesting diagram on one board was a matrix listing on one axis the operations
performed in the department, and on the other axis the names of the operators. The chart
showed which operators had qualified to perform which operations, and was displayed for
information and motivation.
The most successful QC Circles have the opportunity to get their projects published in
GEMBA TO QC, and to attend the QC Circle conferences. These are important forms ofrecognition to the foremen and workers involved, many of whom are astonishingly young.
One of the interesting projects reported on the walls of the Matsushita Training Center wasby a QC Circle of four men and three girls whose ages ranged from 16 to 23, with anaverage of 20.3 (Matsushita's car radio assembly line has several QC Circles in addition tothat of Shoko, Reiko and Mitsuko. The ages of these circle members range from 15 to 26,
the average being 19.)
The published reports of projects completed are remarkably well documented. The typicalreport relies heavily on graphic presentation to tell the story. It is the rule, not the exception,
for these reports to show:– Sketches of the product under study.
– The flow diagram of the process.
– The Pareto analysis identifying the vital few troubles.
– The Ishikawa Cause and Effect Diagram mapping out the variables which might becausing the trouble.

Selected Papers nº 22, 1967

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Copyrights 1994 TPOK/Juran Institute–––Histograms, frequency tables. control charts and other statistical analyses of data.
Charts showing the reductions in defects resulting from the project.
A computation of the Yen of cost improvement. In companies with a firm history ofuse of QC Circles, the collective results have begun to show up in the company
planning and budgeting as something substantial and predictable – a form of budgeted
cost reduction.

The Role of the Hierarchy
While participation in the QC Circles is voluntary, the existence of such Circles raises
practical questions of how to coordinate the work of the Circles with that of the hierarchy.
When the company is large, and the QC Circles number in the hundreds, this coordination
can become complex, since the grain of the two structures runs in different directions. To
date, the experience gained has already identified some helpful principles of coordination.
One of these is a dual approach to selection of projects. Projects for the QC Circles areproposed in two ways:
1.

By the Circle itself, based on its job knowledge plus the collective creativity of themembers.

2.

By the management hierarchy. For example, the company goal may be to cut rejects
from 5 percent to 2 percent. Breaking this goal down into sub-objectives can result inprojects for QC Circles.

From the nature of things, the first projects taken on by a QC Circle are those of control –improved control of the local process, reduction of operator controllable defects. As afirmer grip is secured on these control problems, more elaborate projects are chosen,
involving breakthrough into new levels of performance. Here the Circle finds itself
conducting more sophisticated analyses, setting up experiments and otherwise walking
boldly into the unknown.
As these more elaborate projects are tackled, the QC Circle may find itself faced withcauses and influences which are outside of its own department Commonly such matters arebeyond the scope of the Circle, which is necessarily limited to intra-departmental problems.
Except for the Gemba-cho. the members of the Circle are limited in their knowledge of, andaccess to, the happenings in other departments. For example, Kanto Auto-Works Company
has found it useful to set up a two-way feedback of findings of the QC Circles and of the
field service mechanics, to promote the Circle leader's quality and cost consciousness, andto provide special guidance in pre-delivery inspection and maintenance work. Suchcommunications can be made only through the hierarchy.
When problems of an inter-departmental nature are encountered, the approach is to broaden
the communication through a QC Circle leaders' meeting or a QC Circle joint meeting. If a
project of an interdepartmental nature needs to be taken on, it is assigned to a QC Team.
The QC Team is quite different from the QC Circle, as is seen in the following comparison:

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Copyrights 1994 TPOK/Juran InstituteAspect

The QC Circle

The QC Team

Creation

Voluntary

By management order;
hierarchical

Identificationof projects

Mostly by the Circle

Mostly through management
planning

Scope ofactivities

Intra-departmental

Inter-departmental

Membership

Gemba-cho and his
non-supervisors

Gemba-cho and supervisorsand engineersLifeCan be continuous,for project after project

For this project
only

An added problem facing the hierarchy is that of providing the training facilities, thebudgets, the support for aiding the Circles in their work, the follow through to makeremedies effective, and the means for giving recognition. In a large company like Nippon
Kokan K.K., or Kobe Steel (which has about 1000 QC Circles), this requires positive
organization machinery. To date, the companies have gladly paid the price, since the returnon investment has been eminently satisfactory.
There is also evidence to suggest that the QC Circle concept may be broadened
considerably, in two respects.
1.

To deal with non-quality problems as well as with quality problems, i.e., a universal
way of using non-supervisors for projects of all sorts – for improvements in cost,safety, productivity, etc. Some of this has happened. Matsushita's "QC" Circles are infact involved with some non-QC matters. Even the company chauffeurs have a QC
Circle. However, for the QC Circle movement to broaden out into an all-purpose
movement will require, as a pre-requisite, that additional tool kits be developed, one
for each area of subject matter. The success of the Circle movement as applied toquality control has, to an important degree, been due to the existence of a kit of tools
which simplify greatly the attack on quality problems. Some of the tools in this kit,e.g., the Pareto principle, are universals – they are helpful in solving any problem.
However, as applied to other subject matter, the kit is incomplete, and would need tobe supplemented.

2.

As a leading device for strengthening relations between the company and the employee
body. During my April 1966 seminars in Japan, several company directors made thisSelected Papers nº 22, 1967

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Copyrights 1994 TPOK/Juran Institutepoint. In Nippon Kayaku K.K., the managers stimulated a QC Circle movement as partof a defensive program to prevent leadership of the work force from being taken overby radical agitators. The resulting QC Circles played a significant role as part of a total
program of "turning around" the performance of a sick plant.
The Motivational Base
To a Westerner, the most astonishing aspect of the QC Circles has nothing to do withquality control. What is astonishing is the degree to which the Japanese have succeeded inharnessing the energy, ingenuity and enthusiasm of the work force to the unsolved problemsof the company. In the West, (on both sides of Churchill's "Iron Curtain") it is difficult
enough to do this during working hours. The Japanese have gone beyond this – they havedone it outside of working hours as well. It is of the utmost importance to understand how itis that the Japanese have been able to bring this off.
First of all, it must be recognized that the Japanese manager has, for the most part, retained
the leadership of the work force, and has not lost it to the Union, the politician, or theintellectual. In Japan. the usual, traditional relationship of companies to employees has been
one of lifelong employment, with the company voluntarily assuming important social
responsibilities: sick benefits, unemployment benefits, old age benefits, etc. In the nonCommunist West, the tradition has been otherwise. Companies generally did not voluntarily
provide these benefits. (Even those which did usually did it badly – they were guilty of"paternalism.") In consequence, the work force was driven to find elsewhere the solutions
to the problems of unemployment, sickness, old age. New leadership sprang up to propose
collective solutions, and the political power of the many made these proposals effective
over the resistance of the managers. In the process, the leadership of the men passed fromthe managers to someone else, and still rests there. The Western manager may look askanceat the high fringe benefit percentages of Japanese companies (as do some Japanesemanagers). But the Western company has paid the price both ways – it is taxed to pay thebenefits, and has lost the leadership to boot. To regain this leadership is a long journey, andthe present generation of managers will not make it (in my opinion).
Secondly, the Japanese concept of organization of work differs markedly from that
followed in the West, especially that followed in the United States. American companies,
under the Taylor influence, have gone far down the road of separating manufacturing
planning from execution. The engineers play the dominant, if not the exclusive, role inplanning, leaving to the production supervision the execution of the plan. The Western
European countries tend to give the top managers the main role in the planning, really adual role of directing and engineering. However, the Japanese evolution resulted in lessformal planning, either by the engineers or the top managers. There remained a considerable
residue of planning to be done by someone else, i.e., the production supervision. Thisevolution has, of course, enlarged the responsibility of the Gemba-cho. In turn, the carryingout of these broader responsibilities has broadened the skills and effectiveness of theGemba-cho. (We have some of this in America in some job shops and in some service
departments where there has been no tradition of extensive use of engineers for planning. )Selected Papers nº 22, 1967

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Copyrights 1994 TPOK/Juran InstituteFinally, the priority of industrial motivational incentives in the Japanese culture is quite
different from that prevailing in the West. However illogical this priority may seem to theWesterner, it is very logical to the Japanese. As well as I was able to determine, here is theorder of importance:
1.

Improving the company’s performance. Under a tradition of lifetime association with
one company, and with enlightened company practices as to employee welfare
problems, the employee has a stake in the company's health, and responds toopportunities to do something about it. This loyalty to the company is evidently notlimited to the company as an abstraction. There are loyalties to the particular shop andto the local work group which can contribute further to the overall relationshipbetween the company and the work force.

2.

Self-improvement. The Japanese zeal for learning and for doing attaches itself toopportunities for training and for creativity. This self-improvement is also one of thetools for by-passing seniority as the basis for promotion.

3.

Recognition. The QC Circle movement has enlarged the social standing of the Gembacho, who previously had not participated fully in social recognition. Opportunities now
exist for the Gemba-cho to get out to conferences, to visit other companies, and even to
become a member of a team to go abroad to study foreign practice. The journal
GEMBA TO QC is itself a recognition of a status of importance. Collectively it alladds up to quite a rise in social stature.

4.

Creativity amid boredom. Particularly among non-supervisors, and to a degree among
all who work on the factory floor, the day-to-day job can be monotonous and boresome
to an oppressive degree. If essential human needs (ego needs, social needs creativity,
self-fulfillment) are not met on the job the employee must find them elsewhere – in his
hobbies, in sports, in non-company associations. By providing a group opportunity forcreativity with respect to the job (though out of regular hours) the company has
provided a new opportunity to neutralize the problems of boredom and monotony.

5.

Money incentives. It may come as a surprise to a Westerner that this incentive (forjoining a QC Circle) has the lowest priority. Yet such seems to be the case. There is
wide variation in practice so. far as paying for time spent is concerned. Somecompanies make no payment at all. At Kobe Steel Company, one hour a month is paid
for- the rest is not. The Matsushita girls were paid at rates equal to half of their regularpay (not time and one-half) plus tea and cake. Some companies pay at full time rates
for the out-of-hours work of the QC Circles. The above relates to payment for timespent out-of-hours. In the case of results achieved, there is no payment as a directconsequence of such results. There is however, an indirect effect. The results of a
successful project improve the company's profit, and thereby the employee bonuses
which are commonly geared to company profits by one formula for all employees.

As it happens, Matsushita has recently conducted a morale survey among QC Circle
members. All workers mentioned the benefit of learning through the studies. In addition,
they pointed out the following advantages:

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Copyrights 1994 TPOK/Juran Institute1.

By attending the QC Circle meetings, they acquired the ability to speak in public.

2.

They made more friends and this contributed to a more cheerful atmosphere in theworkshop.

3.

They became more conscious of the importance of their jobs and their responsibility,
and through the awareness of this importance, now have more pride in their jobs.

4.

They improved their personality and acquired the ability to concentrate on solution ofproblems. These experiences with the QC Circle they apply in their home life.

Comparison with other Motivational Programs
Inevitably the QC Circle concept must be compared with other motivational forms. What isdifferent about it? In what respects is it limited in application to the Japanese culture, and inwhat respects is it based on universals?
To make this comparison we might look at a wide assortment of motivational schemes aspracticed in the West: the long-standing systems of piece work; the familiar suggestion
systems in force in many companies; the system of Stakhanovism and its derivatives aspracticed in Eastern Europe; the Scanlon plan of joint committees for improving
productivity; and, because of current interest, the Zero Defects (ZD) family of programs.
We may look at these various plans from a number of standpoints:
1.

Voluntary or compulsory? Joining the QC Circle is voluntary, and this characterizes
most motivational schemes. Piece work is an exception. So also is the "voluntary"
signing of ZD pledge cards which can hardly be considered voluntary, though most of
the rest of the ZD activity i$ left to voluntary action.

2.

Out-of-hours or on the job? Here the out-of-hours QC Circle is virtually unique. Thisfeature may be unique to Japan as well. In Western countries it is common for
employees to take training courses on "their own time." However, in no Westerncountry known to me would there be any significant response by the work force tostudying projects on their own time, unless this were negotiated through the Unions,and paid for at acceptable rates of pay. In the Eastern European countries there may besome of this, but I am not clear on this aspect of their practice.

3.

Premises as to need for analysis. The QC Circle concept starts with the assumptionthat the causes of poor quality performance are not known, and that there is need foranalysis to discover what actually causes the poor performance. Except for the Scanlon
plan, the other programs largely assume, as an axiomatic belief, that the work force
could do better but is holding back for no good reason. While in all companies there
are instances which can support this assumption, on a broad basis, the assumption isdefective, and is misleading to many, many managers and companies all over the

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Copyrights 1994 TPOK/Juran Instituteworld.
4.

Need for prior training in use of the tools of analysis. The QC Circle concept is uniquein accepting this need. This is, of course, consistent with the belief that the causes ofpoor performance are not really known. Other motivational systems, founded mainlyon the prior assumption that the work force "can but won't," see no need for training in
how to analyze, i.e., what is there to analyze if we know the causes at the outset? It is atribute to the Japanese that they have recognized this need for prior training.

Elements of the plan

As practiced inConventional motivational plans
QC Circles

Choice of projects

Left up to employee to
identify his own projectSome projects identified bymanagement; others identified by the QC Circle

Training in how to analyze
provideda project

None provided

FormalAnalysis of the project

By employee himself or with Analysis is by the QC Circle,
such aid as he can muster; out-of-hours, using training
otherwise, by formal
tools previously provided
suggestion which isanalyzed by someone else

Payment for time spent

None

training

programOut-of-hours; voluntary

Varies from no pay
to full pay for hours spent

Payment for successful idea Definite payment varying
with value of idea

No payment. Indirect effect oncompany profit and resulting
bonus which uses one formulafor all employees

Non-financial incentives

Opportunity for training;
opportunity for creativity andrecognition; membership in agroup; response to company
leadership

5.

Opportunity of creativity
and recognition; pride ofworkmanshipGroup or individual analysis? The QC Circle is designed for group study. Except for
the Scanlon plan, the rest all look to individuals for contribution.

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Identification of projects. The QC Circle concept provides for projects to be proposedby the company hierarchy as well as by the QC Circle itself. Again except for the
Scanlon plan, other motivational plans look mainly to the individual to identify "hisown" project.

7.

Conduct of the analysis. The QC Circle conducts its own analysis, though with accessto the hierarchy if needed. To a degree, all systems provide for self-analysis, but for themost part the analysis, if any, is left for someone else, e.g., a suggestion blank is filled
out and dropped into a box. Here again, the prior training has served a vital purpose, by
making the QC Circle largely self-sufficient as to analysis.

8.

The reward. The QC Circle emphasis is mostly on non-financial rewards, featuring
improvement (company improvement, self-improvement) as a goal in its own right.
The system of Stakhanovism also has this feature, though emphasizing the abstractionof Communism, or its derivative of "building a better Socialist world." The ZD
schemes stress pride of workmanship. The piece work and the suggestion systems rely
on money incentives, the amount being related to the value of the work or thesuggestion.

9.

Follow through to make changes effective and set up controls. Here the QC Circles
play a larger role than is found in other motivational systems, again because of being
trained in how to play this role.
It is evident that the QC Circle is different enough to be regarded as a new industrial
form. The Scanlon plans have some of the features, but are not really based on thework force – they involve joint committees of managers, Union officials and the workforce. (Union officials are debarred from membership in the QC Circles.)The table above summarizes the foregoing comparison as applied to creative projects.

More than Motivation
Of the utmost importance is the fact that, through the QC Circles, the Japanese have made aclean break with a tired, outworn theory which plagues the West. This is the theory that thecompany's quality troubles are due to operator indifference, blunder and even sabotage.
Under this theory, the operators could solve the company's quality problems if only the rightmotivational lever could be found and thrown.
The QC Circle concept starts with a different set of beliefs:•••

we don't really know the cause of our quality troubles; we don't even know which are
the main troubles. Hence,
we must teach people how to analyze the trouble pattern to identify the main troubles.
Also,
we must teach people how to list the suspected causes of the main troubles, and how to

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Copyrights 1994 TPOK/Juran Institute••discover which are the real causes. Thenwe must help people to secure remedies for these real causes. Finally,
we must teach people how to hold the gains through modern control

All this is in refreshing contrast to the painted, noisy spectacles which characterize all too
many of our motivational programs.(3) The speeches are made, the posters go up, thepledge cards are signed, the hot potato is thrown into the lap of the operators. Yet, except asa show for customer relations, what good is it if the basic assumptions are defective? Havethese assumptions been checked? Are the main troubles really operator-controllable? Can
the operators, by themselves, discover what to do differently from what they have been
doing ? If these assumptions are not sound, the structure built on them cannot be soundeither.
Conclusion
The QC Circle movement, standing by itself, must be characterized as a brilliant
achievement – a tour de force in management leadership. Nowhere else have I seenindustrial companies succeed in so constructively harnessing the interest, the time and theingenuity of the work force to the myriad’s of intradepartmental problems – not only
problems of control, but problems of breakthrough as well.
Whether the QC Circle concept can be adapted to other cultures is at present open to serious
doubt. At the June 1966 Conference of the European Organization for Quality Control (inStockholm, Sweden), I related the QC Circle story from the lecture platform. It turned out
to be the high point of the conference. The questions from the audience re-quired that a
special, added session be set up, devoted solely to the QC Circle story. At this special
session, and in the corridor discussions thereafter, it became evident that no one envisioned
readily how to make the QC Circle concept effective in any other culture. It is amazing thatsuch should be the universal reaction.
Finally, it is well to note the broader setting of which the QC Circles are a part. That
broader setting is the revolution which the Japanese have created in their approach toquality. Here I venture to publish, for the first time, the prediction I have made in my 1966
lectures (in America, Japan, Sweden and Yugoslavia).
This prediction is based on seeing, at first hand, the trend of events in Japan and in a good
many other countries over the last two decades. During those decades the Japanese, througha revolution in quality control practices, have already attained a world competitive position,
though starting with the worst quality reputation among the industrial nations. Now there isevidence that the energy which created this revolution, far from being spent, is still in fullvigor.
In my observation, no other nation is so completely unified on the importance of goodquality achievement, so eager to discover and adopt the best practices being followed inother countries, so avid in training all company levels and functions in modern methods ofcontrolling quality, so vigilant in regulating the quality of exported goods. To be sure there
is progress along these fronts in all countries, but nowhere else is there the broad-based

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Copyrights 1994 TPOK/Juran Institutesense of devotion and especially, the sense of urgency which is so evident among theJapanese. Witnessing their accelerated pace, and comparing this with the pedestrian
progress of other countries, the conclusion is inescapable:
The Japanese are headed for world quality leadership, and will attain it in the next two
decades, because no one else is moving there at the same pace.
References
1.
2.
3.

Juran, J. M., Managerial Breakthrough, McGraw-Hill Book Co., Inc., New York,
1964, Chap. 4, "The Pareto Principle."
Juran, J. M., Ed., Quality Control Handbook, 2nd ed., McGraw-Hill Book Co., Inc.,
1962, pp. 11-13.
Juran, J. M., "Quality Problems, Remedies and Nostrums," Ind. Qual. Control, 22,647-653 (June 1966).

Dr. J. M. JURAN, Dean of American consultants on quality control, was a pioneer in thedevelopment of principles and methods for managing quality control programs. He is aveteran of over four decades of international experience in management at all levels. Hisclients have included industrial giants as well as small companies and government
departments. He has conducted several hundred courses in all pans of the world, not only
on QC management but on other managerial subjects as well. Dr. Juran is the author of ten
books including 'Quality Planning and Analysis', (with F. M. Gryna), 'Managerial
Breakthrough' and 'The Quality Control Handbook', which has been translated wholly or
partly into several languages and which has become the international standard reference
work in the field of QR. (1973)

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