OPERATIONS MANAGEMENT SESSION 10Faculty: Professor S. Arvind SIBM, Bangalore

PROCESS IMPROVEMENT - THE PDCA CYCLE

The Plan-Do-Check-Act cycle is often referred to as the Shewhart cycle or the Deming wheel and is a popular model used in process improvement.

There are four steps in the model to be followed, once the clear objectives of the process improvement exercise have been established.

1 PlanBegin by studying the current process. Document that process. Then collect data on the process or problem. Next, analyse the data and develop a plan for improvement. Specify objective measures for evaluating the plan.

2 DoImplement the plan on a small scale, if possible. Document any changes made during this phase. Collect data systematically for evaluation.

3 CheckEvaluate the data collected during the previous step. Check how closely the results match the original objectives set during the Plan phase.

4 ActIf the results are successful, standardise the new method and communicate the new method to all people associated with the process. Implement training to all concerned. If the results are unsuccessful, revise the plan and repeat the process or abandon the exercise.

It is important to note that personnel are not authorised to deviate from the current established processes on an ad hoc basis, without the approval of management. Such behaviour would defeat the very purpose of developing and implementing processes. Most firms insist on following a model like the PDCA cycle when processes need improvement. At the end of the cycle, there is a formal system of communicating the new way of working.

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Example: Applying the PDCA cycle to an information security project

Exercise: Applying the PDCA cycle to quality improvement

Objective of the exercise: Reduce customer rejects of bulbs manufactured by us from 3% to 1% within the next 30 days

PHASE ACTIVITIESI. Plan 1 Form quality improvement team

2 Understand scope of the problem 3 Develop performance measures for each possible cause4 Analyse available data5 Determine root causes6 Formulate alternative solutions

II. Do 1 Implement selected solution in a limited manner – perhaps during a single shift or a single production line

III. Check 1 Evaluate outcome of the previous step2 Repeat the previous step across more trials, if required

IV. Act 1 Implement solution across the firm2 Monitor results to see if the objectives of the exercise have been met

TOYOTA’S MODIFICATION OF PDCA CYCLE

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ANALYSE IMPLEMENT REFLECT ADJUST