PDCA Cycle

The Plan-Do-Check-Act (PDCA) Cycle is a four-step problem-solving iterative technique used to improve business processes. Originally developed by American physicist Walter A. Shewhart during the 1920s, the cycle draws its inspiration from the continuous evaluation of management practices and management’s willingness to adopt and disregard unsupported ideas. The method was popularized by quality control pioneer Dr. W Edwards Deming popularized the method in the 1950s and first coined the term Shewhart Cycle after his mentor. It was Deming who realized the PDCA Cycle could be used to improve production processes in the U.S. during World War II.

The PDCA Cycle can help differentiate a company from its competition, especially in today’s corporate world, where anything that can help them streamline their processes to reduce costs, increase profits and improve customer satisfaction can give them an advantage. Whether they know it or not, many managers use the PDCA Cycle to help direct their organizations, as it encompasses the very basic tenants of strategic planning. The four components can be summarized like the following:

Plan: A well-defined project plan provides the framework from which to operate. Importantly, it should reflect organization’s mission and values. It should also map the project's goals and clearly indicate the best way to meet them.

Do: This the step where the plan is set in motion. The plan was made for a reason, so it is important for players to execute it as outlined. This stage can be broken down into three sub-segments, including training of all personnel involved in the project, the actual process of doing the work and recording insights, or data, for future evaluation.

Check: Typically, there should be two checks throughout the project. First, checks should be done alongside implementation to make sure that the project's objectives are being met. Second, a more comprehensive review of the project should be done upon completion to allow for successes and failures to be addressed, and for future adjustments to be made.

Action: Corrective actions are made in the final step. Once past mistakes have been identified and accounted for, the PDCA Cycle can be redefined and repeated anew in the future, perhaps to better results under new guidelines. 

Companies looking to enhance their internal and external processes often deploy PDCA methodology to minimize errors and maximize outcomes. Once put into effect, companies can repeat the PDCA cycle and make it a constant in their organization as something of a standard operating procedure. That one of the four stages is to deploy corrective actions makes the methodology ideal to strive for continuous improvement.