pdca-cycle

PDCA Cycle: The Plan-do-check-act Cycle In A Nutshell

The PDCA (Plan-Do-Check-Act) cycle was first proposed by American physicist and engineer Walter A. Shewhart in the 1920s. The PDCA cycle is a continuous process and product improvement method and an essential component of the lean manufacturing philosophy.

Understanding the PDCA cycle

It was later popularised by fellow engineer and statistician W. Edwards Deming, widely attributed as the father of modern quality control. Deming called it the Shewhart Cycle after his mentor and applied its principles to improving production processes during the Second World War. 

Today, the PDCA cycle is useful in any industry or setting in multiple contexts. These include:

  • Continuous improvement or the establishment of a new improvement project.
  • Developing or refining the design of a product, service, or process.
  • Clarifying a repetitive work process.
  • Data collection and analysis to verify or identify problems or root causes.
  • Change implementation.

The four components of the PDCA cycle

The PDCA cycle is an iterative, systematic, four-stage approach.

Following is a look at each stage:

  1. Plan (P) – in the first stage, a plan is created from a recognized opportunity for improvement or change. Here, decision-makers need to clarify core problems by developing hypotheses for each. They must also determine what resources they have and what they are lacking. In other words, is the initiative feasible? Could it be scaled? Lastly, goals must be established – under what circumstances would the initiative be considered successful?
  2. Do (D) – then, it is time to develop, implement, and test the solution. Unforeseen problems may occur during implementation, so it is useful to start small and in a controlled environment. Before work is carried out, standardization of roles, responsibilities, and methods must also be established.
  3. Check (C) – arguably the most important stage. Do the test results accept or reject the hypotheses? Furthermore, do the tests support initiative or project objectives? Even successful tests may have problems or inefficiencies that offer room for improvement. Consult a variety of relevant stakeholders to encourage diverse opinions.
  4. Act (A) – in the final stage, a refined initiative is implemented and becomes the new baseline for any future PDCA cycle. Required resources and employee training should be quantified for organization-wide scaling. Metrics that measure and track the performance of the initiative overtime should also be clarified. Failed initiatives move back to the first stage and are adjusted to prepare for a new cycle.

Advantages and disadvantages of the PDCA cycle

Advantages

  • Versatility – as noted earlier, the PDCA cycle can be used wherever change or continuous improvement is required. Applications are possible in change management, product development, project management, and quality improvement. The Mayo Clinic used quality improvement to reduce wait times for candidates qualifying for cochlear implant surgery. Using the cycle, the hospital and research center, it was able to reduce the median cycle time for testing from 7.3 to 3 hours.
  • Intuitiveness – the PDCA cycle is also relatively simple to understand and implement. This reduces inefficiencies arising from misunderstandings or misuse and facilitates buy-in from key stakeholders.

Disadvantages

  • Requires commitment – the PDCA cycle is not something a business can perform once and then file away in a cabinet. This continuous and cyclical process requires commitment which must be demonstrated from senior management to permeate down through the organization.
  • Exhaustive – the PDCA cycle is an effective but rather time-consuming process. Some businesses will see its effectiveness as a major advantage, but it is nevertheless unsuitable for urgent problems, emergencies, or other initiatives requiring speedier resolution.
  • Reactive – the cycle is also somewhat reactive since it assumes everything starts with planning. The basic philosophy of PDCA is planning and performing an activity first and responding to drawbacks later. This approach of correcting (and not pre-empting) mistakes discourage innovation, dynamism, and creativity. Ultimately, this makes it unsuitable for many modern business environments that demand proactive thinking.

Key takeaways:

  • The PDCA cycle is an iterative, four-step problem-solving and continuous improvement methodology developed by Walter A. Shewhart in the 1920s. It was later refined by the father of modern quality control, W. Edwards Deming.
  • The PDCA cycle is an acronym of four distinct stages: plan, do, check, and act. Collectively, the four stages form a cyclical process where initiatives are planned, tested, evaluated, and refined if necessary.
  • The PDCA cycle is a versatile process useful in any scenario requiring change or improvement. However, it is an exhaustive process and requires a display of commitment from upper management. In some cases, it may also be reactive and discourage out-of-the-box thinking.

PDCA Cycle’s Related Frameworks

Value Stream Mapping

value-stream-mapping
Value stream mapping uses flowcharts to analyze and then improve on the delivery of products and services. Value stream mapping (VSM) is based on the concept of value streams – which are a series of sequential steps that explain how a product or service is delivered to consumers.

Five Whys

5-whys-method
The 5 Whys method is an interrogative problem-solving technique that seeks to understand cause-and-effect relationships. At its core, the technique is used to identify the root cause of a problem by asking the question of why five times. This might unlock new ways to think about a problem and therefore devise a creative solution to solve it.

OKR

what-is-okr
Andy Grove, helped Intel become among the most valuable companies by 1997. In his years at Intel, he conceived a management and goal-setting system, called OKR, standing for “objectives and key results.” Venture capitalist and early investor in Google, John Doerr, systematized in the book “Measure What Matters.”

SWOT Analysis

swot-analysis
A SWOT Analysis is a framework used for evaluating the business’s Strengths, Weaknesses, Opportunities, and Threats. It can aid in identifying the problematic areas of your business so that you can maximize your opportunities. It will also alert you to the challenges your organization might face in the future.

PEST Analysis

pestel-analysis
The PESTEL analysis is a framework that can help marketers assess whether macro-economic factors are affecting an organization. This is a critical step that helps organizations identify potential threats and weaknesses that can be used in other frameworks such as SWOT or to gain a broader and better understanding of the overall marketing environment.

Porter’s Five Forces

porter-five-forces
Porter’s Five Forces is a model that helps organizations to gain a better understanding of their industries and competition. Published for the first time by Professor Michael Porter in his book “Competitive Strategy” in the 1980s. The model breaks down industries and markets by analyzing them through five forces

Balanced Scorecard

balanced-scorecard
First proposed by accounting academic Robert Kaplan, the balanced scorecard is a management system that allows an organization to focus on big-picture strategic goals. The four perspectives of the balanced scorecard include financial, customer, business process, and organizational capacity. From there, according to the balanced scorecard, it’s possible to have a holistic view of the business.

Steep Analysis

steep-analysis
The STEEP analysis is a tool used to map the external factors that impact an organization. STEEP stands for the five key areas on which the analysis focuses: socio-cultural, technological, economic, environmental/ecological, and political. Usually, the STEEP analysis is complementary or alternative to other methods such as SWOT or PESTEL analyses.

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Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get The FourWeekMBA Flagship Book "100+ Business Models"