What is the PDCA cycle and how do you go through it?

What is the PDCA cycle?

The PDCA cycle, also known as the Deming circle, is a method for systematic process optimization in organizations. This cycle consists of four essential phases: Plan, Do, Check, and Act. Each phase contributes to a structured approach for identifying, implementing and evaluating improvements.

The origin of the PDCA cycle dates back to the 1950s, when the American quality expert W. Edwards Deming introduced this method. The goal was to help companies continuously improve their processes and increase the overall quality of their products and services. Since then, the PDCA cycle has developed into an indispensable tool for organizations that strive for operational excellence and customer satisfaction.

The four phases of the PDCA cycle explained

The PDCA cycle consists of four consecutive phases that provide a logical and systematic approach to problem solving and process improvement:

1. Plan: In this phase, we identify the problem or the opportunity for improvement. We analyse the current situation, set goals and develop an action plan. It is crucial to formulate measurable goals and involve the right people in the process.

2. Do: During this phase, we implement the drawn up plan. We carry out the planned actions, collect data and document the results. It is important to closely monitor progress and note any deviations from the plan.

3. Check: In the Check phase, we analyze the collected data and assess whether the actions carried out have yielded the desired results. Here, we compare the current situation with the established goals from the Plan-phase. It's important to look at what works well and where improvements are needed. This insight forms the basis for further optimization.

4. Act: The ACT phase is about anchoring what turned out to be successful and modifying what did not work. Here, we make structural improvements so that they become part of the standard processes. If necessary, we restart the cycle with adjusted goals and strategies. This phase ensures that we continuously learn and improve.

How do you implement the PDCA cycle in your organization?

Successfully implementing the PDCA cycle requires a structured approach and involvement from the entire team. Start raising awareness about the importance of continuous improvement. Organize workshops to familiarize employees with the PDCA method and its benefits. Make sure there are clear guidelines for going through each phase and appoint a person responsible to supervise the process.

Integrate the PDCA cycle into existing business processes by incorporating it into project management methodologies and quality systems. Use digital tools to monitor progress and visualize results. Encourage a culture of openness and learning, where mistakes are seen as opportunities for improvement. Celebrate successes and share best practices to keep motivation high.

Benefits of going through the PDCA cycle

Consistent application of the PDCA cycle offers organizations numerous advantages. First, it leads to a significant improvement in the quality of products and services. By continuously evaluating and adjusting processes, inefficiencies are eliminated and customer satisfaction is increased. In addition, the PDCA approach promotes a culture of continuous improvement, where employees are encouraged to proactively contribute ideas about optimization options.

Another important advantage is increased efficiency and cost reduction. By systematically addressing bottlenecks and streamlining processes, organizations can significantly reduce their operational costs. In addition, the PDCA cycle contributes to better decision-making, because decisions are based on data and facts rather than assumptions. This results in a more agile organization that can respond quickly to changes in the market.

Common challenges when applying PDCA

Although the PDCA cycle is a powerful tool for continuous improvement, organizations can face various obstacles in implementation. One common challenge is resistance to change. Employees may be reluctant to change existing practices or invest extra time in going through the cycle. To overcome this, it's essential to clearly communicate the benefits and celebrate successes.

Another challenge is maintaining momentum. After the initial enthusiasm, attention to the PDCA method may weaken. It is therefore important to embed the cycle in daily activities and to regularly evaluate progress. Provide sufficient resources and support to help teams go through all phases consistently. Train managers to facilitate the PDCA approach and make it part of performance reviews.

PDCA vs. other improvement methods

In addition to the PDCA cycle, there are other popular improvement methods such as Six Sigma and Lean. Although these methods each have their own focus and techniques, they share the common goal of process optimization and quality improvement. Six Sigma focuses primarily on reducing variation and defects in processes, while Lean focuses on eliminating waste and increasing customer value.

The PDCA cycle stands out for its simplicity and broad applicability. It can be used in almost any industry and for any type of process. In addition, the PDCA method places a strong emphasis on continuous improvement and learning, making it particularly effective for organizations that want to create a culture of continuous optimization. In practice, we often see that organizations combine elements of different methods to create an approach that best suits their specific needs and goals.

PDCA in combination with OGSM

The PDCA cycle and OGSM model complement each other perfectly in strategic planning and execution. The OGSM model provides a structured framework for defining a clear ambition (Objective) with measurable goals (Goals) and converting it to a sharply chosen direction (Strategies) with measurable actions (Measures). The PDCA cycle provides a systematic approach to achieve these ambitions and goals and to continuously improve your Strategies.

With OGSM, the PDCA Plan phase is strengthened by establishing concrete strategies and measuring points. The DO phase is about implementing these strategies. Through the CHECK phase, the results of the OGSM strategies are evaluated, where progress is tested against the pre-determined measurement indicators. In the ACT phase, adjustments are made based on this evaluation so that goals are effectively achieved and improvements are sustainably integrated. Thus, the combination of OGSM and PDCA creates a powerful basis for strategic development and continuous optimization.

Starting with OGSM? Download a free template here.