You have heard about PDCA but still do not understand this model, as well as its concept. This article will give you an overview of how the famous loop PDCA has helped businesses increase output value.
1. What is PDCA?
The PDCA model has been developed and used in production or business administration to find process flaws and provide solutions to fix them. It is a continuous iterative cycle, so managers can repeat it until they reach the goal
PDCA is the abbreviation of:
- Plan – Make a plan
- Do – Implement the proposed plan
- Check – Check, evaluate the results
- Act – Change, improve
It won’t take you long to go through the introduction to this cycle and continue to explore its benefits below.
2. What benefits does PDCA bring to businesses?
When implementing a PDCA-based strategy, businesses will enjoy many benefits such as:
- Process improvement: The PDCA cycle is continuously improved, ensuring that errors must be changed, following the actual situation of the business.
- As a tool to change the way of administration, to help operate more smoothly.
- Easily apply ISO quality management systems such as 9001, 22000, 14001… in the operating process of the business. PDCA improves quality from planning, collecting, and analyzing statistical data, thereby finding the root cause of problems in governance. It reduces the deviation between the current state and the desired state of the leader board.
- A PDCA cycle will be a powerful tool for leaders to manage performance.
- Increase competitive advantage over competitors in the market.
- In addition, PDCA is not only chosen by businesses, but it also helps individuals evaluate and plan to improve themselves.
In terms of benefits, that is, but when is the right time to apply PDCA to the corporate governance process?
3. When should PDCA be applied?
For an enterprise, PDCA is considered and applied when leaders notice administration issues such as potential human resources, dismal sales and disjointed work processes. The model will participate in correcting errors and improving output continuously. At the same time, when the implementation is successful, enterprises can bring it into the organization as a standard for internal activities.
More specifically, businesses should consider the PDCA model when:
- Launch a new project or a process in the company to ensure the results as set out.
- The management process has problems affecting employee performance, enterprise resources, and it is necessary to identify the causes of bottlenecks and errors in operation.
- Income planning and data analysis to determine business priorities.
- The management wants to optimize the governance by continuous improvement to increase the size of the business, and the official working environment.
These are factors to consider when businesses want to develop and improve their management processes to improve output quality. But before implementing, businesses need to determine that it will take time and reasonable resource allocation to be successful. And this model cannot solve urgent problems, nor need immediate results.
In summary, PDCA is an efficient model for improving continuous loop operations. But it also requires perseverance, and new resources can bring the expected results. Hope the article gives you valuable knowledge in administration. Please continue to follow BEMO to receive many updates.