(Tiểu luận) group assignmentquality management coursetopic deming cycle (pdca)

PDCA also known as Deming cycle is a quality management system that is used as a continuous improvement tool that is widely used in the service and manufacturing sectors which was popula

NATIONAL ECONOMICS UNIVERSITY Faculty Of Business Management

** GROUP ASSIGNMENT

Quality Management Course

Topic: Deming Cycle (PDCA)

Nguyễn Huyền Anh : 11210524

Lê Thị Hồng Ánh : 11210852

Nguyễn Thị Thanh Hoài : 11212315

Nguyễn Ngọc Mai : 11213675

Lê Phương Mai : 11213658

Class : Quản trị Kinh doanh CLC 63

Hà Nội, tháng 8 năm 2023

I Introduction 3

1 What is PDCA? 3

2 History of PDCA 4

II The stages of PDCA 5

1 Plan 5

2 Do 6

3 Check 7

4 Act 8

III When to apply PDCA Cycle 9

IV Example 10

1 Improve learning processes and outcomes 10

2 Improving the quality of service in a restaurant 10

V Advantages of PDCA cycle 11

VI Disadvantages of PDCA cycle 12

VII Conclusion 12

REFERENCES 12

1 What is PDCA?

PDCA (also known as Deming cycle) is a quality management system that is used as a continuous improvement tool that is widely used in the service and manufacturing sectors which was popularized by Dr Edwards Deming, an American quality management expert in the field of 1950 PDCA activities consist of four steps namely Plan, Do, Check, and Action with repeated stages forming like a circle [CITATION Sar20 \l 1066 ]

 Plan: consists of setting goals and processes to achieve specific results

 Do: Implement a solution

 Check: Evaluate the results

 Act: Change, improve

With the image of a rolling circle on an inclined plane (clockwise), the PDCA cycle illustrates the essence of quality management as continuous improvement that never ceases Instead of applying the PDCA cycle just once, the continuous improvement PDCA cycle allows for ongoing progress and development in processes or products The most important aspect of PDCA lies in the "act" stage after the completion of a project when the cycle starts again for further improvement, while ensuring that the process or product is continuously adjusted and enhanced to meet ever-increasing quality requirements and standards [ CITATION MSo10 \l 1066 ]

PDCA was developed in the 1920s and gained prominence in the 1950s when William Edwards Deming, a leading quality management expert of the 20th century, implemented the logical sequence of planning, implementing, analyzing, and improving a major project: the reconstruction of Japan's industrial infrastructure after World War II Deming referred to it as the "Shewhart cycle" because he drew inspiration for this cycle from his mentor and idol - Walter Shewhart [CITATION Ron09 \l 1066 ]

 Inspired by the scientific method (hypothesize, experiment, evaluate), Walter Shewhart wrote, in 1939, a cycle of steps to ensure quality in a manufacturing process The required iteration of steps are; specification, production, and inspection

 Deming had a hand in editing Shewhart’s work In a series of lectures in 1950 at the Japanese Union of Scientists and Engineers, he modified the Shewhart cycle

into what became known as the Deming Wheel Edward Deming expanded the Shewhart cycle into a four-step pattern for Japanese audiences The Deming cycle related heavily to the concept of product quality, innovation, and learning-by-doing over the entire life cycle of a product Specifically, the Deming cycle runs:

1 Design the product with appropriate testing

2 Make the product and test it in production and in the lab

3 Sell the product to the market

4 Test the customer experience and redesign for improvement

 In 1951, the Japanese Union of Scientists and Engineers (JUSE) altered Deming’s framework into the more recognizable PDCA cycle[ CITATION Wil50 \l 1066 ] Although well over half a century has passed since the introduction of the Deming cycle to executives in Japan, most open-ended approaches still seek to repeat learning cycles as rapidly as possible, for obtaining customer feedback and making improvements in all pertinent areas

 The PDCA cycle has helped many organizations and business sectors develop the necessary strategies to adapt, create test cases, and then improve to respond to constantly changing markets

II The stages of PDCA

1 Plan

The purpose of this phase is to investigate the current situation, fully understand the nature of any problem to be solved, and to develop potential solutions to the problem that will be tested [ CITATION Cer \l 1066 ]

achieve through the PDCA process This goal should be clearly stated, measurable and achievable This could include improving product quality, enhancing process efficiency, reducing wait times, enhancing customer satisfaction, or any other goal tailored to a particular situation

- Collect data on the current process Baseline data that describe the current state are

critical to further understanding the process and establishing a foundation for measuring improvements Data can include parameters, statistics, test results, customer feedback or any other information related to the issue at hand You can use methods such as surveys, direct observations, review of reports or available documents to collect data

- Identify all possible causes of the problem and determine the root cause While

numerous causes will emerge when examining the quality improvement opportunity, it is critical to delve in and carefully identify the underlying, or root, cause of the problem, in order to ensure that an improvement or intervention with the greatest chance of success is selected

- Identify potential improvements to address the root cause, and agree on which one to

test Once the improvement has been determined, carefully consider any unintended consequences that may emerge as a result of the implementing improvement This step provides an opportunity to alter the improvement and/or develop countermeasures as needed to address any potential unintended consequences Revisiting the aim statement and revising the measurable improvement objectives are important steps at this point

- Develop an action plan indicating what needs to be done, who is responsible, and

when it should be completed The details of this plan should include all aspects of the method to test the improvements – what data will be collected, how frequently data are collected, who collects the data, how they are documented, the timeline, and how results will be analyzed

Example: Mai plans to go on a trip to Thailand by the end of this year to play with friends, but Mai's money is not enough To make this trip, Mai needs at least 10 million VND and Mai plans to save money by applying the PDCA model for the trip

+ Plan: Mai sets a goal of saving 2 million VND per month To do that, Mai will get a part-time job at a cafe and reduce all food costs in each month

2 Do

The purpose of this phase is to implement the action plan This is the actual step to test the plan and check if it works as intended Businesses should ensure that all activities are followed in the correct sequence and exactly as planned [ CITATION MSo10 \l 1066 ]

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- Implement the improvement: This step involves implementing the improvements

outlined in the "Plan" phase In this step, necessary activities and changes are made to apply new methods, processes or solutions to actual operations Implementation of this improvement may include changing workflows, training employees, providing new tools and materials, or implementing technology changes

- Collect and document the data: This step entails collecting and recording data regarding the process or system that has made improvements This data may include parameters, measurements, records, reports and feedback from users Collecting and recording this data helps evaluate the effectiveness of improvements and provides the information needed for the Check (Check) and Action (Act) steps in the PDCA cycle

- Document problems, unexpected observations, lessons learned and knowledge gained: This step is intended to document problems, unexpected observations, lessons

learned, and knowledge learned during improvement implementation This recording enhances an organization's or individual's knowledge and experience, and provides important information for future process evaluation and improvement

- Create multiple solutions and decide which solutions to test: This step involves

creating various solutions to the problem or improvement proposed From the list of new solutions, processes or methods, implementers decide which solutions should be tested and evaluated next Creating multiple solutions and selecting solutions to test helps ensure the effectiveness and feasibility of proposed improvements before widespread deployment

Example: With “Do”, Mai started taking part-time jobs and refrained from tactfully refusing to go out to eat with friends

3 Check

The purpose of the "check" stage in the PDCA (Plan-Do-Check-Act) cycle is to evaluate and assess the results of the actions taken during the "do" stage This phase involves analyzing the effect of the intervention Compare the new data to the baseline data to determine whether an improvement was achieved, and whether the measures in the aim statement were met Pareto charts, histograms, run charts, scatter plots, control charts and radar charts are all tools that can assist with this analysis [ CITATION Cor20 \l 1066 ]

- Collect data: Collect data related to the process or product that was performed during the "Do" phase This can include data on quality, performance, accuracy, time, cost, customer feedback, and any other information relevant to the goals set

- Comparison check: Compare the data collected with the standards or goals set during

the "Plan" phase This helps evaluate whether goals have been achieved and identify discrepancies between actual and target data

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actual and target results This may include applying statistical methods and data analysis

to identify trends, fluctuations, root causes, and potential problems

- Evaluate results: Evaluate results and performance based on data and analysis Identify

successes and failures, identify the strengths and weaknesses of the process or product, and evaluate the extent to which goals have been achieved

Example: With “Check”, After a month of implementation and checking the results, Mai received unsatisfactory results Mai only saved 1 and a half million, although the cost of clothes has been reduced, but the reason is because her hobby of online shopping has made the savings amount less than the goal of up to 500,000 VND

4 Act

This phase marks the culmination of the planning, testing, and analysis regarding whether the desired improvement was achieved as articulated in the aim statement, and the purpose is to act upon what has been learned Options include: [CITATION Cer \l 1066 ]

- Adopt: Standardize the improvement if the measurable objective in the aim statement

has been met This involves establishing a mechanism for those performing the new process to measure and monitor benchmarks on a regular basis to ensure that improvements are maintained Run charts or control charts are two examples of tools to monitor performance

- Adapt: The team may decide to repeat the test, gather different data, revise the

intervention, or otherwise adjust the test methodology This might occur, for example, if sufficient data weren’t gathered, circumstances have changed (e.g., staffing, resources, policy, environment, etc.), or if the test results fell somewhat short of the measurable improvement goal In this case, adapt the action plan as needed and repeat the “Do” phase

- Abandon: If the changes made to the process did not result in an improvement,

consider lessons learned from the initial test, and return to the “Plan” phase At this point the team might revisit potential solutions that were not initially selected, or delve back into a root cause analysis to see if additional underlying causes can be uncovered, or even reconsider the aim statement to see if it’s realistic Whatever the starting point, the team will then need to engage in the Plan cycle to develop a new action plan, and move through the remaining phases

Example: With “Act”, overcome existing limitations and start planning again the first step To be able to achieve 2 million VND in savings per month, in addition to working

overtime and reducing spending on food, Mai must reduce spending on shopping - this is the main reason for Mai's savings to be reduced

→ Continue to do steps 2, 3, 4 and repeat until Mai completes the set goal

III When to apply PDCA Cycle

The PDCA cycle is a versatile tool that works well in almost all types of organizations It helps organizations systematically analyze problems, test solutions, and make data-driven decisions However, when to apply PDCA is not clearly identified Not all continuous improvement initiatives require use of PDCA, however purposeful improvement in large

or complex systems will be appropriate to use PDCA Common understanding about when to apply the method could be an advantage in order to avoid frustrated employees that do not know what type of continuous improvement initiatives they shall apply the PDCA method on [ CITATION Eir12 \l 1066 ]

However, there are certain situation which PDCA cycle would be especially helpful: [ CITATION Mar17 \l 1066 ]

- In the process of continuous improvement: PDCA provides a structured framework to

identify and address areas for improvement The "Plan" phase helps in setting goals, defining objectives, and creating a plan for improvement The "Do" phase involves implementing the planned changes The "Check" phase allows for the measurement and evaluation of the results against the established goals Finally, the "Act" phase involves reflecting on the outcomes and taking appropriate actions to standardize and sustain the improvements By repeating this cycle, organizations can continuously improve their processes

- During the implementation of changes: When implementing changes, it is essential to have a systematic approach to ensure the effectiveness of the changes and minimize risks PDCA provides a structured method to plan the changes, execute them, evaluate the results, and make adjustments if necessary It allows organizations to learn from the implementation process and make informed decisions based on feedback and data

- During a downtime between one phase of a project and the next: Downtime between project phases provides an opportunity to reflect on the completed phase and prepare for the next one PDCA can be used during this downtime to review the achievements, analyze the challenges faced, and identify areas for improvement It enables project teams to plan the upcoming phase, considering the lessons learned, and make necessary adjustments to enhance project performance

- During the implementation of a new solution: When implementing a new solution or

introducing a change, it is crucial to monitor its effectiveness and make necessary modifications to ensure its success PDCA allows organizations to systematically test and