An Introduction to PDCA

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An Introduction to PDCA

A presentation to Senior Leaders in

Toyo EngineeringC P Chandrasekaran

1C P CHANDRASEKARAN


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Dr W E Deming(1900-1993)

Dr Demings words:

With Quality, you improve productivity,

with increased productivity you bring down cost,

you give employment to people. With more employment,

you bring prosperity. So simple. Dr Deming 2C P CHANDRASEKARAN


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Why PDCA?

We would like to spend a few minutes on the

immediate need for us to learn about P D C A.

3C P CHANDRASEKARAN


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Actually, most of the time We are

stuck in D C Cycle

Do Check becomes culture

C P CHANDRASEKARAN 4

DO

Check


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Then it becomes a vicious cycle

Then Do check assumes

this form


DO

Check

Re DO

Re

Check


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Real life conversation

Inspector: According to the report, there was abug in the software you released, Wont itreappear?

Engineer (proudly): No, that bug is fixed. It wontreappear.

Inspector: Heres a similar bug. Wont it reappeareither?

Engineer: No sir, That one is also fixed. It wontreappear. Shirou Fujita Strategy for Corporate Innovation p no

21



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We need to break the vicious cycle

This Do check Re do Recheck results in systemnot getting improved because we assumethere are filters to remove defects.

Implementing PDCA is the only way to fightthis and ensure continual improvement ofprocesses in the organisation.

PDCA is called Iterative improvement whichmeans there are successive PDCA iterations inthe process selected.

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Let us get to know the cycle

Planning

Doing

Checking

Acting

8C P CHANDRASEKARAN

Addition of ing is mine to

emphasize present tense


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Plan

Planning

Doing

Checking

Acting

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Planning

Planning is not equal to plan.

Planning is

understanding the process

understanding the controls understanding people and

setting the targets for improvement proactively ascareful setting of target is important. (Hoshin Kanri).

Sometimes we may need to listen to voice ofcustomer while doing this.

So, Significant efforts are required for planning.

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Plan is nothing. Planning is

everything-Eisenhower


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Means Planning

Planning includes

A Strategy for change at the organisational level.

A system for deployment of the strategy in terms

of goals to certain key processes.

A team of process owners who have visibility of

these processes.

A process map for each process. A system of measures (more about this later)

So we do endsplanning and meansplanning both.



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Deployment of Policy becomes input for

planning for improvement at process level

Deliveryin

days

April 2014March 2015

CEO s statement: Improve customer satisfaction by

Reducing delivery time by 25%. The process target

may not exactly match the figure of 25%.

30

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The goal gets included as the objective

of the processTargetedStakeholders

Empl

oyee

Busin

ess

Outcome of

the process1. Employee perception about fairness of the process 2. Capability improvement at individual level 3.Creation of a

Learning organisation

Objectives of the Process

Employee satisfaction on fair rewards : 75% of people should choose good or better. 2) Positive correlation between employeepayouts financial results of company

S No Sequence

GIL

Corp

SBU

Head

Functio

nHead

Dept

Head

Mana

ger

Assoc

iates

Ex

Com

Control

doc

measure Link from Link to Remarks10Release of BSC defining

goals for the SBU

P

BSCStrategic goals from SBUStrategic Planning

201st cycle (long term

qualitiative) meeting

Discussions on broad trends

affecting business whiletaking into account the BSC.

P



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A few points relevant for means

planning

What are our organisation level strategic

goals?

How many of them need breakthroughs?

How do we deploy these to the key processes?

Have we got the buy-in for these from the

team?



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Exit conditions for Planning stage

A process map/process maps to which theobjective can be deployed.

Definition of goal in terms of present state to

future state. Eg From the average delivery time in Jan, Feb,

Mar 2014, achieve 25 % reduction as

measured in Jan, Feb, Mar 2015. A team for working on improvement.

A charter for the improvement project.



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II Phase in the cycle-DO

Planning

Doing

Checking

Acting





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Do-ing

The routine tasks are monitored by outputmeasures which are available most of thetime.

Unfortunately, they have limitations when itcomes to continuous improvement.

For improving we need two sets of indices

Managing points and check points. To install them and communicate them will be

part of implementation of DO.



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In Japan, they call Daily work

management

Daily work management consists of

Defining Managing points and check points

Having these two sets of measures at sub process

and sub process level too.

Managing points are more for output eg days

taken to place PO

Check points are more for in process/inputmeasures eg errors in Purchase requisition



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Institutionalising DWM

At least for few key processes, we need to

cascade the MP CP measures to the sub

processes and if need be sub sub processes.

People will not follow up for specific tasks or

customers but would turn their attention to

MPs and CPs.

It requires discipline but it can be done.



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Check-ing

What do we check?

Rate of improvement in MPs.

Check points are more yes/no and so not verysuitable to represent visually.



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Birds eye view and worms eye view

We need to have both micro and macro

analysis.

Micro is to have a trend chart for a month say

daily plotting of a managing point.

Macro is to know how the process is moving.

We may construct a box plot for

understanding this .



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Box plot of delivery days for ordeers in

April- June 2014

Delivery in days35

40

45

50

55

60

65

70

75

3 rd

Quartile

Outlier

I Quartile

Median


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Box plot is deceptively simple

Box plot is a valuable tool which is not

understood because it is simple.

Outliers in box plot indicate that the process

has become unstable on a couple of instances

Unequal length of whiskers indicate imminent

instability.

A large box size indicates too much variabilty.

In short, Box plot is a MUST for DO phase.



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Act-ing

Act would mean

Restoring stability to the process by taking

corrective action on the outliers of MPs

Preempting sources of instability by occurrence

prevention.

Refining the target setting and planning process .



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Recurrence Prevention

Recurrence Prevention is by

Cause and Effect diagram

Other 7 QC tools



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A variation of PDCA

People have experimented with a variation of

PDCA by starting with check. It is called CAPDo

cycle.

It starts with check- data analysis for the

process moves on to Act and then to Plan and

then Do.

In case the finer aspects of planning prove to

be a barrier one can implement CAP Do also.



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An Introduction to PDCA

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