Work performance does not meet the requirements, product quality is not stable and operating costs, increasing the challenges businesses face in the business process. To be able to develop sustainable, businesses need an effective tool to continually improve processes and enhance the quality as the model PDCA (Plan – Do – Check – Act). So What is PDCA cycle and how to apply the model for improvement process operate?
PDCA stands for Plan – Do – Check – Act cycles, continuous improvement is widely used in quality management. This model is viewed as a loop, endlessly, to help businesses improve processes, products and services in an effective way.
Cycle of continuous improvement PDCS
Improved model operating procedures, manufacturing quality PDCA cycle consists of 4 components:
Plan (plan): Identify issues in need of improvement, set clear goals and detailed planning to achieve that goal.
Do (implement): Implement the plan was set, collect data and related information.
Check (Check): Evaluate the results of implementation in comparison with set goals, identify what has been achieved and what has not yet been achieved.
Act (Action): Perform the action to adjust the plan, standardized what was successful and remove what is not effective.
PDCA help businesses maintain continuous improvement, thereby improving the quality of products and services, while minimizing risks and costs. The deployment PDCA help businesses react quickly to problems, optimize processes and increase competitiveness. With this model, businesses can easily identify and fix the points of congestion in the workflow, from which optimized performance.
2. Applying the model PDCA process improvement business operation
How to deploy models what is PDCA cycle? Here are 4 steps to apply the model PDCA to improve operational processes business::
4 Steps applicable model PDCA process improvement business operation
Step 1: Plan – plan details
First of all, you need to clearly define the problem or specific goals that the business wants to achieve, for example, reduce the rate of defective product, improve workflow, increase productivity, or optimize customer service.
Understanding the cause helps to build a more efficient plan, so after determining the issue, please proceed to the analysis of root causes using tools like the Ishikawa diagram (fishbone diagram) or methods 5 Whys (5 questions why?).
Setting goals and detailed planning before deployment model PDCA
Based on the analysis, planning, action, detail, including the specific steps required resources, the time taken and the index measurement. Ensure that this plan is feasible and has the commitment from the stakeholders in the business.
It should be noted, the goal should be clear, specific and measurable (SMART – Specific, Measurable, Achievable, Relevant, Time-bound). Because this will help businesses easily track progress and evaluate the results after implementing the plan.
Step 2: Do – implement the plan
Before deploying comprehensive, you should test the plan on a small scale to assess the feasibility, reduce risk and identify early potential problems.
When receiving results in the process of testing to assess whether the measures were implemented has achieved its objectives or not. Data collected from this stage will be very important in making decisions in the following steps.
After the experiment is successful, businesses need to conduct standardized process to ensure that all operations will be performed synchronously and consistently on a large scale.
However, at this stage, many businesses still have trouble missing data to evaluate the effectiveness of cycle improvements. To solve these problems, the business can use the software to manage the workflow, such as LV-DX Dynamic Workflow to view visual reports on all indicators in the process of data analysis, scientific reviews.
Step 3: Check – monitor and check
Conduct follow-up indicators laid out in step Plan to evaluate the effectiveness of the measures already taken. This helps you determine whether goals have been achieved or not.
Compares the actual results with the original goal to determine the level of success. If the result is not satisfactory, should cause analysis and identify the problem still exists.
Compares the actual results with the original goal to determine the level of success
Use the analysis tool to review the data collected, from which assess what factors have contributed to the success or failure of the process.
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Step 4: Act – Classification results & decisions
Based on the analysis and classification of the results achieved.
Success: deployment widely applied in business.
Problems have arisen: Need to identify the causes and propose solutions to improve.
Classification results and based on that decision
Then, the administrator will make a decision the next measure to be taken, including the adjustment plan, improve, add, process, or even completely change the approach if the result is not satisfactory.
3. Example of the PDCA cycle in business production
Enterprise specialized in production and sales of household products on an ecommerce website. Recently, you noticed that the rating level of customer satisfaction are significantly reduced. After the review, the business discovered that customers constantly complain about the delivery late and damaged product in the shipping process. This does not only affect the reputation of the business but also reduce revenue.
To solve this problem, the business decided to apply the PDCA cycle to improve operating procedures.
Step 1: Plan – plan details
Target: Improve delivery time and reduce product damage during shipping.
Problem analysis: Determine that the problem is mainly located at the stage of carriage where the products are not handled properly and the delivery time is prolonged.
Plan: Testing a service provider transport new reputation for the quick delivery and careful handling within a month. Select a customer group sample to test and compare the results with the shipping service current.
Step 2: Do – Run testing & standardization
Make: Within a month, you use the house offers shipping service for all orders of customer group form.
Track: Throughout the testing process, recorded back in time delivery and satisfaction level of customers for each order is delivered.
Step 3: Check – maintain observation and inspection
Test result: After a month, collect data on time delivery and satisfaction level of customers from the sample group.
Compare: The results showed that the new service provider has helped significantly reduce the delivery time and minimize significantly the case of damaged products. The level of customer satisfaction has increased markedly.
Analysis: You analyze the data to determine whether the change in service provider, shipping can really bring better results and there are other factors that can affect this result.
Step 4: Act – Classification results & decisions
Decision: Based on positive results from the testing, the business decided to switch to using service provider shipping for all orders.
Action: Official business cooperation with this supplier and inform the whole staff about the process of shipping. At the same time, businesses also consider the possibility of improvement more other processes, such as product packaging to minimize the risk damaged.
Preparing for loop PDCA next: Continue to monitor the satisfaction level of the customer, the relevant indicators to ensure that this improvement is maintained and prepared for the round PDCA next to the route continuously improved.
4. Barriers to implementing the PDCA cycle & solutions for business
The barriers when implementing the PDCA cycle is what? Here are 2 common challenges businesses are often encountered when applying the model PDCA and the perfect solution to be able to overcome them.
4.1 database
Data is a core element in assessing the effectiveness of processes and decisions for improvement. However, many businesses have difficulty in collecting, storing and analysis of accurate data. This leads to the no facility to measure results or detect the points to improve in the process.
Business is difficulty in collecting, storing and analyzing data
4.1 Lack of monitoring tools, process
Lack of continuous monitoring of the implementation process can lead to the plans are not made properly, or not achieve the results as expected. The main shortcomings, this can also make business does not timely detection of problems arise, from that influence the effectiveness of process improvements.
An effective solution to overcome the barriers on is applied LV-DX Dynamic Workflow – an advanced technology to help optimize workflow and improve business.
Improved performance with the standard process is digitized to operate throughout the unbroken: LV-DX Dynamic Workflow enables enterprises to digitize critical processes, thereby ensuring that all the activities happening in a uniform and unbroken. Thanks to the digitization, businesses can save time and resources, while minimizing errors in the implementation process.
Improved performance with LV-DX Dynamic Workflow
The entire aggregate data consistency on 1 platform, not discrete, dispersed: LV-DX Dynamic Workflow gather and manage data from all parts of the business on a single platform. This eliminates the scattering data, allowing managers to easily monitor, evaluate, and analyze information. At the same time, when data is unified management, businesses can detect the points of congestion in the process and take measures to improve accuracy.
The entire aggregate data consistency, not discrete, dispersed with LV-DX Dynamic Workflow
Fix, improve, correct score, bring the efficiency, saving cost: With the centralized data and analysis in a comprehensive way, the business can identify clear points to improvements in the process. Overcoming the correct points not only enhance performance but also to help businesses save on operating costs, thereby improving the competitiveness on the market.
Hope that through post of Vietnam business can understand What is PDCA cycle and how it applies to models in the process of improving business efficiency. Remember, PDCA is not just a tool for improvement but also as a philosophy commissioning help businesses to stay ahead in the journey to improve quality, streamlined workflow. By applying the model the right way, the business completely solve the current issues and build a solid foundation for the sustainable development in the future.
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