PDCA-cycle - the philosophy of continuous improvement of business

PDCA-cycle (Deming cycle) is one of the basic concepts in modern management theory. It also underlies the standards of the ISO 9000 series, which are used throughout the world for quality management in enterprises of all sizes and types.

Definition

Deming PDCA-cycle is a technology of continuous process improvement both in business and in any other field of activity. The name of this method is an abbreviation of 4 English words, meaning the logical sequence of the stages of improvement:

• P - Plan (plan);
• D-Do (do it);
• C - Check (check, analyze);
• A - Act.

Everything is logical and simple: first you need to think through the actions. Then they are executed in accordance with the plan. The third step is the analysis of the results. And, finally, the last stage - Act - involves the introduction of specific changes to improve the process and / or setting new goals. After that, the planning stage begins again, on which everything that has been done before this should be taken into account.

Schematically, the PDCA control cycle is represented as a wheel, which demonstrates the continuity of this process.

Now consider each step in detail.

Plan (Plan)

The first stage is planning. It is necessary to clearly formulate the problem, then to determine the main directions for the work and to come up with the optimal solution.

A typical mistake is to develop a plan based on subjective guesses and assumptions of management. Not knowing the root causes of the problem, it is possible at best to neutralize its consequences, and then temporarily. What tools can I use to do this?

Method "5 Why"

It was developed back in the 40's, but gained popularity after 30 years, when it began to actively use the company Toyota. How to conduct such an analysis?

First it is necessary to formulate and write down the problem. Then ask: "Why is this happening?" And write down all the reasons. After that, you need to do the same for each answer. Next, we follow the same pattern, while the question "Why?" Will not be set 5 times. As a rule, it is the fifth answer that is the real reason.

Diagram of Ishikawa

This method allows you to graphically represent the cause-effect relationships of any phenomena in business. Named after its creator, chemist Kaora Ishikawa, and is widely used in management.

When constructing a diagram, five possible sources of problems are identified: man, materials, environment (environment), equipment and methods. Each of them, in turn, may contain more detailed reasons. For example, the work of employees depends on the level of qualifications, health, personal problems, etc.

The sequence of building the Ishikawa diagram:

1. Draw a horizontal arrow to the right, and near its point write down the clearly formulated problem.
2. Under the slope to the main arrow, depict the five main factors of influence, of which we spoke above.
3. Use the small arrows to show detailed reasons. If necessary, you can add smaller branches. This is done until all the possible causes are written out.

After that, all the options obtained are written out in a column, from the most realistic to the insignificant.

"Brainstorm"

Collective discussion with experts and key staff, in which the task of each participant is to name as many potential causes and possible solutions to the problem, including the most fantastic ones.

After the theoretical analysis it is necessary to find the actual factual data, confirming that the causes of the problem are determined correctly. Act on the basis of guesswork ("most likely ...") is impossible.

As for planning itself, the specifics are also important here. It is important to set the timeframe for execution, to write down a clear sequence of actions and measurable results (including intermediate results) to which they should lead.

Do (Do)

The second phase of the PDCA cycle is the implementation of the plan, the introduction of changes. Most often it is more expedient to first implement the decisions taken on a small scale, conduct a "field test" and check how it works in a small area or facility. If there are failures in timing, delays, it is important to understand the reasons (unrealistic planning or lack of discipline on the part of employees). Additionally, they implement an intermediate control system that allows not only to wait for results, but to constantly monitor what has already been done.

Check

In simple words, now it is necessary to answer the one and only question: "What have we learned?". The PDCA-cycle implies a constant evaluation of the results achieved. It is necessary to assess progress against the set goals, determine what works well, and what needs to be improved. Basically, it is done by checking the reports and other documentation of the enterprise.

To successfully implement the Shuharta-Deming cycle (PDCA) in business, it is necessary to regularly report on the work done and discuss the results with employees. An ideal tool for this is the introduction of key KPI performance indicators, on the basis of which a system of motivation and promotion of the most productive employees is built.

Act

The last step is, in fact, actions. There may be several options:

• Implement a change;
• To abandon the decision if it turned out to be ineffective;
• Repeat all the steps of the PDCA-cycle one more time, but make certain corrections in the process.

If something works well and can be repeated, this decision should be standardized. For this purpose, appropriate changes are made to the company's documentation: work regulations, instructions, checklists, staff training programs, etc. In parallel, one should assess the possibility of introducing improvements to other business processes where similar problems may arise.

If the developed plan of action does not bring the expected results, you need to analyze the reasons for the failure, and then return to the first stage (Plan) and try another strategy.