What is the PDCA cycle?

The PDCA cycle (Plan, Do, Check, and Act) is a repetitive, continuous improvement process. It allows for simple, effective problem-solving and change management. The PDCA cycle, also known as the PDSA cycle (where the S stands for study), is a method of measuring the effectiveness of changes to a process, procedure, or service on a small scale to ensure their optimization before implementing larger-scale changes. The key to the PDCA cycle success is to repeat the process until you have satisfactory measurable improvements.

Dr. William Edwards Deming established the Plan, Do, Check, Act cycle in the 1950s to improve processes and products that weren’t working as he’d hoped. This simple approach of using a continuous feedback loop is now a popular strategy for organizations across various industries looking to implement improvements.

Why is the PDCA cycle important?

The PDCA cycle can help organizations differentiate between failure, mediocre success, or grand success. The PDCA model is essential for:

• data-driven decision making;
• increased efficiency and effectiveness;
• continuous improvement;
• better teamwork and collaboration;
• effective problem solving.

The four phases of the PDCA cycle

You can implement changes using the PDCA cycle by rigorously and methodically testing solutions through four phases—Plan, Do, Check, and Act.

Plan

The planning stage is where you identify the problem you wish to solve or the process you want to improve. For example, when your marketing process isn’t producing your desired results, or a product or service isn’t up to your preferred standards. After identifying the problem, explore all the data surrounding the issue to generate improvement ideas. Screen your theories to create a detailed implementation plan, including your success criteria and how you’ll measure the results.

Do

The second stage puts your theories to work. Safely test your ideas on a small-scale project to see if your proposed changes achieve your desired results. Working with a small sample prevents disrupting the rest of your operations. For example, focus your small-scale trial on a single department, a specific geographical area, or a particular demographic. Collect sufficient data throughout your trial project to prove whether the changes work.

Check

Take the criteria you deemed necessary for success during the first stage and use it to analyze your project results to determine if the test was successful. If unsuccessful, return to stage one and start over. If your test was successful, proceed to phase four. Alternatively, test more change theories to see if other ideas work better before committing to a finalized version, and then move to the fourth stage.

Act

This is where you take your small-scale project and implement your solution company-wide. Because the PDCA cycle is a continuous loop, you can use your revised process or system as your new baseline and continuously try to improve it.

When to use PDCA

Organizations can use the PDCA framework in various businesses across every industry. This approach takes time and resources to break down a product, process, or procedure into smaller segments and explore ways to improve each one, so ensure you have sufficient time to perform the tests. The PDCA model works well, but better approaches may exist for an urgent problem. You can’t rush the PDCA cycle if you want clear, concise, and accurate data for true results. Consider using a different approach to confirm your success when requiring immediate changes.

The PDCA method works best for:

• developing new products or services;
• detecting and removing process issues;
• optimizing current products, services, or processes;
• exploring new ways to improve continuously;
• beginning a new process improvement project;
• implementing company-wide changes.

Tips for using the PDCA model

Here are some practical tips to help you implement the PDCA cycle successfully.

Define the opportunity or problem requiring improvement

You must define the opportunity or problem requiring change before improving it. Understanding all issues before starting the planning phase is crucial to a successful outcome. Define problems by gathering data and feedback from customers, employees, and stakeholders.

Involve your employees during the planning phase

Employee commitment and buy-in are essential for the PDCA method to work. PDCA cycles are more likely to succeed when employees agree with the proposed changes. Involve your employees in the change process from the beginning and show them how the PDCA cycle benefits them. Invite them to submit solutions, involve them in brainstorming, and use their ideas to create action plans. The more employee involvement you have, the more invested they’ll be in company success, and you’ll see better-quality solutions, increased commitment to the process, and improved employee engagement.

Set clear intentions and metrics for success

Setting clear intentions and metrics for success before implementing any changes is essential. Your metrics and objectives must be specific, relevant, achievable, time-bound, and measurable so you can track the progress of changes and measure their effectiveness.

Take small steps when implementing changes

Significant changes often lead to employee resistance and implementation challenges. Taking small steps when introducing change enables you to evaluate and test each one before proceeding with the next.

Monitor and make necessary adjustments

The PDCA cycle is a continuous loop where you must monitor changes and make ongoing adjustments as necessary. Do this by gathering feedback from customers and employees, tracking metrics, and adjusting your action plans as needed.

Benefits of the PDCA cycle

Implementing the PDCA cycle has several benefits, from minimizing errors to maximizing outcomes. Once you establish a PDCA cycle that works for your organization, you can successfully repeat it and make it part of your standard operating procedures. PDCA methodologies include other benefits like:

• Understand your challenges to find possible solutions: Following the four-cycle stages, Plan, Do, Check, and Act, you can systematically analyze your current processes and procedures, identify gaps, determine the root cause of problems, and brainstorm solutions.
• Implement more effective changes: Breaking down your improvement process into more manageable steps helps employees feel less overwhelmed, reducing the risk of failure. Because each cycle builds on the previous one, PDCA encourages ongoing improvement. Toyota is an excellent example of striving for continuous improvement. The car manufacturing company uses the PDCA cycle to improve production processes, resulting in lower costs, higher quality, and increased efficiency. Toyota uses the PDCA model to identify improvement areas, apply changes, and continuously adjust and monitor its processes.
• Versatility: Organizations can use the PDCA cycle throughout various business environments and for many applications.

Challenges of the PDCA cycle

There are some challenges businesses may face when implementing the PDCA cycle, such as:

• Resistance to change: Employees can be skeptical of new procedures and processes, especially if they’ve done things the same way for years. When employees aren’t on board, it can lead to a lack of engagement, making it difficult to implement necessary changes. Overcome this challenge by involving your team in the process from the start: ask for their feedback on current processes, include them throughout the planning stage, and give them adequate resources and training to implement the changes successfully. When you involve employees in the process, they typically feel a sense of ownership and are more likely to embrace change.
• Lack of accurate data: You can’t accurately determine the root cause of your problems or assess the effectiveness of your changes without reliable data. Not only does this lead to inefficient improvements, but it also can exacerbate your problems. Overcome this challenge by investing in data collection and analysis tools, including employee engagement surveys and customer feedback surveys, and tracking metrics such as productivity and sales. Concrete data helps you make more informed decisions and ensures effective changes.
• The need to follow through: Some organizations make changes using the PDCA cycle but fail to follow through with continued monitoring and adjusting. Lacking follow-through will eventually lead to the same recurring problems or new issues. Overcome this challenge by scheduling regular evaluations of the implemented changes, monitoring customer and employee feedback, and making necessary adjustments. Stay competitive in your industry and ensure continuous improvement by following through the entire PDCA cycle.

Among its challenges, the benefits of the PDCA cycle make it an effective approach for testing and managing small-scale change, solving problems, and implementing strategies for continuous business improvement.