In: Accounting
What is PDCA?
PDCA, sometimes called PDSA, the "Deming Wheel," or "Deming Cycle," was developed by renowned management consultant Dr William Edwards Deming in the 1950s. Deming himself called it the "Shewhart Cycle," as his model was based on an idea from his mentor, Walter Shewhart.
PDCA / PDSA is an iterative, four-stage approach for continually improving processes, products or services, and for resolving problems. It involves systematically testing possible solutions, assessing the results, and implementing the ones that are shown to work.
The four phases are:
A fundamental principle of the scientific method and PDCA is iteration—once a hypothesis is confirmed (or negated), executing the cycle again will extend the knowledge further. Repeating the PDCA cycle can bring its users closer to the goal, usually a perfect operation and output
Another fundamental function of PDCA is the "hygienic" separation of each phase, for if not properly separated measurements of effects due to various simultaneous actions (causes) risk becoming confounded
PDCA (and other forms of scientific problem solving) is also known as a system for developing critical thinking. At Toyota this is also known as "Building people before building cars" Toyota and other learn manufacturing companies propose that an engaged, problem-solving workforce using PDCA in a culture of critical thinking is better able to innovate and stay ahead of the competition through rigorous problem solving and the subsequent innovations.