PDCA Methodology: What is Plan Do Check Act in Lean?

The Plan-Do-Check-Act (PDCA) cycle is an iterative methodology to improve products and processes via a 4-step loop. It’s a systematic tool to test and implement new ideas with minimal disruption, part of the Lean philosophy of continuous improvement.

In this guide, we delve deeper into the PDCA cycle, exploring its definition, ideal application scenarios, benefits, the distinct stages involved, and real-life examples of its successful implementation across different industries.

PDCA Meaning: What is the Plan Do Check Act Methodology?

Plan Do Check Act (PDCA) methodology is a Lean Management tool for improving processes continuously. This scientific method involves testing the possible solutions, assessing the results of the test cases, and implementing the ones that worked.

While Dr. Walter Andrew Shewhart first developed the PDCA cycle in 1939, Dr. William Edwards Deming popularized it in the 1950s (also known as the Deming Cycle). He introduced and applied the concepts of planning, executing, analyzing, and improving to rebuild an industrial infrastructure in post-war Japan. 

The ultimate goal of the PDCA cycle is to solve problems and manage changes without disrupting operations.

Why is PDCA a Cycle?

The PDCA framework is cyclical: after implementing your proposed solution in the “Act” phase, you revisit the “Planning” phase to tackle new challenges and refine the process until it reaches perfection.

These repeated steps make PDCA a cycle of continuous improvement rather than a linear one-time process.

When to Use Plan Do Check Act Methodology?

Businesses can apply the PDCA framework to identify and refine existing processes or introduce new ones. Here are some scenarios where you can apply the PDCA concept:

• Solving Problems: The PDCA approach of continuous improvement offers a structured method to identify the root cause of the problem, test possible solutions, and implement the ones that work the best.
• Optimizing Existing Processes: You can use the PDCA concept to identify and reduce waste that makes the process costly, unsafe, or prone to error.
• Introducing Major Changes: When introducing a significant change in your organization, such as new software, PDCA can help companies plan, test, monitor, and refine the changes before their full-scale implementation.
• Launching New Product: PDCA lets you test the new product’s features in small batches, gather user feedback, and refine the product before the full rollout.
• Quality Management: You can use PDCA in quality management to ensure the existing processes or operations are optimized to meet the standards.
• Project Management: Managers can break down the projects into testable phases to identify and address issues early on, leading to smoother execution, monitoring, and better outcomes.

PDCA Cycle Benefits

PDCA system offers several key benefits within the Lean management philosophy of continuous improvement.

Firstly, it provides a structured framework for testing and implementing changes, which minimizes disruption and waste. Next, PDCA in Lean ensures that problems associated with new processes or features are detected and addressed before full implementation, reducing rework.

Businesses can use it to identify opportunities for improvement, leading to greater efficiency, better quality, and a higher bottom line. Furthermore, PDCA’s cyclical nature creates a learning and adaptation culture.

PDCA Process Improvement Steps: Stages of PDCA Cycle

The PDCA improvement process, also known as PDCA steps, consists of 4 stages – Plan, Do, Check (or Study), and Act. Let’s look at the PDCA cycle stages in detail:

Stage 1: Plan

This is the largest and the most elaborate stage of the PDCA problem-solving method. In fact, you can divide the “Plan” PDCA stage into various sub-stages. Remember, depending on the project, these may require repeated iterations.

• Start by specifying the scope of the problem and set SMART Goals with your team.
• Observe and collect data to understand the problem and its impact on the business. Talk to people, and visit the shop floor in person to observe the processes. (Gemba Walk).
• Depending on your analysis, propose solutions. Also, ask your team members or external consultants for refinement suggestions. 
• Out of different ideas, pick one that you think is the best and offers the biggest bang for your buck.

To summarize, in the planning stage, you define the scope of the problem, set a goal, analyze the situation, hypothesize solutions, and select the best one to be tested in the “Do” phase.

Stage 2: Do

Now is the time to test the solution finalized in the first phase. However, you will likely face challenges that you had not anticipated. To avoid a costly negative impact, apply the potential solution on a small scale in a controlled environment such as a specific project, department, location, or demography.

Standardization can be of great help at this stage. It communicates expectations and ensures everyone is aware of their responsibilities. Introduce tools like digital factory checklists, outlining the standard operating procedures and checks.

Workers can access them through their mobile devices, and you can monitor compliance through a dashboard.

Stage 3: Check (or Study)

Did your implemented strategy work? Did you achieve the set target? The PDCA “Check” or the “Study” phase answers all these questions. At this stage, you conduct a PDCA audit and analyze the impact of your proposed solution.

Besides evaluation, this stage will also help you identify inefficiencies present in the processes and eliminate them in the future. 

If the implemented solution doesn’t go as planned, you can revert to the first stage (“Plan”) to make adjustments and try alternatives. However, if the proposed solution is a success, you can proceed to the next phase.

Stage 4: Act

Now that you have developed, tested, and checked the proposed solution, it is time for its full implementation in production. To make the best of the Act stage, address the following questions:

• What can be done to train the workers on the new process?
• How can the process be standardized?
• How can compliance with the set standards be monitored?
• In what ways can we measure the impact of the solution?
• What are some other areas of improvement?
• How can we use the learnings of the PDCA model to devise other experiments?

Remember, the PDCA concept is a cycle. The new process may require more PDCA cycles for further enhancements until it becomes the standard baseline.

PDCA Examples: Industry-Specific PDCA Cycle Real-Life Examples

Companies have applied PDCA in tandem with Kaizen and Lean across industries – from healthcare and nursing to manufacturing and construction.

Let’s look at some industry-specific examples in detail.

PDCA Cycle Example in Manufacturing

Nike embraced Lean Manufacturing and Kaizen Principles to commit to a culture of continuous improvement and deliver quality products.

When faced with allegations of paying low wages and offering poor working conditions, the leading shoe manufacturer applied the PDCA lean model to empower its workers, partners, and customers. Nike offered incentives to manufacturing facilities to improve their working conditions and developed a scoring system to assess their performance.

Outcome? Improved working conditions, reduced wastage, a value-oriented culture, and a stronger brand image. (Source: NIKE, Inc. Corporate Responsibility Report)

PDCA Example in Healthcare

The Mayo Clinic conducted a study to estimate the patient’s waiting time and to improve their quality control. The healthcare facility employed Kaizen and PDCA to tighten specific treatment procedures, patient record management, and waiting times.

This approach significantly reduced the median cycle time for candidacy testing, slashing it from 7.3 hours to just 3 hours. Additionally, total inventory stock saw a significant decrease of 31%. (Source: PubMed).

FAQs About PDCA Methodology