The PDCA cycle can be defined as a management process used for the continuous improvement of processes, products, and services. It is typically effective in identifying problems, implementing solutions, and ensuring ongoing learning.
The cycle centers around four main stages: Plan, Do, Check, and Act. For more details on its concept, please refer to a previous article. When properly applied, these stages guarantee continuous improvement and process optimization, facilitate problem-solving, and positively impact cost reduction as well as the quality of products and services delivered to customers.
How to Apply PDCA in Practice
Although it is more common in the fields of administration and business management, PDCA can be applied across all areas and market segments, as it is a management methodology designed to promote continuous improvements.
In practice, it is very easy to use because it is a simple tool that can be repeated multiple times, is versatile, and includes verifiability to demonstrate results.
To vary the usual segment in which we exemplify the tool’s use, we have chosen Quality Management in industries to highlight its versatility. For example, a particular part is taking much longer than planned to be produced, causing delays in the delivery of the final product and, consequently, customer dissatisfaction.
The first step proposed by the PDCA cycle is Plan. Here, we evaluate the situation to define the problem or the objective to be achieved—in this case, producing the part in less time. To make this happen, it is also necessary to design a plan with strategies that can contribute to reducing production time.
In the next step, Do, we implement the necessary actions to fulfill the plan and make changes on a small scale for testing. This may include reviewing the machine responsible for producing the part, evaluating the part and its components to identify possible causes of the unexpected delay, implementing process optimizations, among other actions.
Once things are underway, it is time to Check, to observe the results obtained from the changes. It is important to monitor the right metrics to identify efficiency. In other words, this is the moment of truth: what worked and what didn’t.
After the test period evaluation, we proceed to Act, incorporating the changes that were successful and creating new plans to adjust what is not yet fully functional. After all, we may have reduced production time, but if the target has not yet been reached, it is time to run the cycle again and broaden our perspective by examining different aspects.
However, running the PDCA cycle multiple times doesn’t mean that the previous attempt failed. On the contrary, the first round allowed us to improve even more and get closer to the final goal.
Challenges May Still Exist
Not everything is smooth sailing, and it may not always be possible to apply PDCA so fluidly in every company, as there can be many challenges to overcome.
– Identifying the root cause of a problem may not be straightforward, requiring in-depth analysis. Otherwise, the suggested solutions may be superficial, affecting the effectiveness of the PDCA work plan.
– The lack of updated and reliable data can also become an obstacle, as it hinders the evaluation of the results of proposed changes. Collecting all data throughout the process and storing it digitally can be an alternative that simplifies the procedure.
– Limited knowledge about both PDCA and the process under analysis can also compromise accuracy. Ongoing training and capacity-building efforts can help minimize this issue.
– Resistance to change can create a deadlock and undermine continuous engagement. Building an organizational culture focused on improvement contributes to overcoming these challenges, making PDCA more productive within the company.
Examples of Companies Using PDCA
Companies such as Nestlé and Nike are success stories in the use of PDCA. Nestlé aimed to reduce waste of resources such as ingredients and supplies in its factories. By using PDCA in combination with other methodologies, they created a more effective value generation cycle.
Nike faced a similar challenge, seeking to reduce resource waste to almost zero. Since PDCA works best when there is a very specific goal, it was the chosen methodology that ultimately generated the expected results and doubled their revenue in five years.
At Toyota, the methodology was applied for general problem-solving in their processes.
