PDCA: Features and Benefits for Business

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What is it about? The PDCA cycle is used to create new products, improve customer service, and manage projects in general. It is based on four stages: Plan, Do, Check, Act, which translate as planning, action, verification, adjustment.

What to pay attention to? PDCA is used in various fields of activity: IT, manufacturing, healthcare and even for personal self-improvement. In business processes, the 14 principles of Deming, one of the creators of the cycle, are additionally used.



The article explains:

The essence of PDCA
The structure of the PDCA cycle
Deming's principles in the PDCA cycle
Examples of using PDCA in different areas of activity
The required number of cycles in PDCA
Pros and Cons of PDCA
Planning requirements for PDCA
Frequently Asked Questions about PDCA

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The essence of PDCA
The abbreviation PDCA stands for:

P (Plan) – planning;

D (Do) – execution;

C (Check) – check;

A (Act) – impact (correction).

The point of this cycle is to periodically repeat the decision-making process. This method, which is essentially a simple algorithm of actions, is a powerful management tool for achieving goals.

PDCA abbreviation

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Deming slightly improved the PDCA cycle and adjusted the decision-making process system itself.

Deming based his methodology on statistical quality control. In his opinion, to improve quality, all processes at the enterprise should be brought to a single cycle: planning – implementation – study – adjustment.

So the Deming cycle looks like this:

P (Plan) – plan;

D (Do) – do;

S (Study) – study;

A (Act) – influence.

In accordance with the Deming system, the phases of the cycle become more extensive and are focused on improving quality.

Deming said that the success of society as a whole depends on the success and development of both manufacturers and consumers. This is the main goal of any enterprise. The goal can only be achieved through continuous quality improvement. This concept, without changing the original meaning of the PDCA cycle, was formed precisely in accordance with this.

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The Deming cycle is based on the human factor and scientific approach.

The essence of the scientific approach is that all processes are carried out in different variants and can change. Therefore, in order to achieve high quality of a product or service, and therefore the life of society, it is necessary to reduce the variability of processes that take place within the enterprise and in society as a whole. Variability can be reduced by continuous collection and evaluation of data. From this point of view, the meaning of the Deming cycle is lost without the use of a scientific approach.

The concept of the cycle is based on the scientific method developed in 1620 by Francis Bacon: hypothesis – experiment – ​​evaluation (analysis).

PDCA Cycle

Source: shutterstock.com

The human factor can be summarized as follows:

"Everyone is one team." That is, the staff must work in a coordinated manner to ensure that the efficiency of the single mechanism is higher than if everyone worked separately.

"People want to work well." This is consistent with Theory Y, which suggests that the productivity of companies with a "soft" management style is higher than in the case of an authoritarian-bureaucratic management, since in this case the person and his role in the company come first.

"Leadership". Personnel management should be based on authority, knowledge, practical work and adequate attitude. The manager should be a leader, leading the team, and not just use the power of administrative pressure in work.

"Training" means continuous improvement of employees' skills to increase their efficiency.

This approach to management in accordance with the PDCA cycle places responsibility for unsatisfactory performance not on the performer, but on the head of the organization.

There is an 85/15 rule, which means that 85% of problems arise due to management decisions and only in 15% of cases problems begin due to the fault of the performers.

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