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Top Ten Facts on Business Analysis Techniques – PDCA

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PDCA is a Four-Step Management Methodology: PDCA stands for Plan, Do, Check, Act. It is a four-step management methodology developed by Dr. W. Edwards Deming that is used for continuous improvement and problem-solving. The PDCA cycle is also known as the Deming Cycle or the Shewhart Cycle. 

PDCA was Developed by Dr. W. Edwards Deming: PDCA was developed by Dr. W. Edwards Deming, a renowned statistician and quality management expert. Dr. Deming is known for his contributions to the Japanese quality revolution and for his advocacy of continuous improvement and statistical process control. 

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Plan (P) Involves Establishing Objectives and Plans: The first step of PDCA is Plan (P), which involves establishing objectives and plans for improvement. This step includes defining the problem or opportunity, setting goals, identifying resources, and developing an action plan.  

Do (D) Involves Implementing the Plan: The second step of PDCA is Do (D), which involves implementing the plan developed in the first step. This step includes executing the action plan, collecting data, and making observations.  

Check (C) Involves Monitoring and Evaluating Results: The third step of PDCA is Check (C), which involves monitoring and evaluating the results of the implemented plan. This step includes comparing the actual results with the expected results, analyzing data, and identifying any deviations or variances.  

Act (A) Involves Taking Corrective Actions: The fourth and final step of PDCA is Act (A), which involves taking corrective actions based on the results obtained in the Check step. This step includes making adjustments to the plan, standardizing the process, and documenting lessons learned.  

PDCA is a Continuous Improvement Process: PDCA is a continuous improvement process that promotes a systematic approach to problem-solving and process improvement. It emphasizes the importance of iterative cycles of planning, doing, checking, and acting to achieve continuous improvement over time.  

PDCA is widely Used in Quality Management: PDCA is widely used in quality management as a foundational tool for improving processes, products, and services. It is commonly used in industries such as manufacturing, healthcare, information technology, and service sectors to drive continuous improvement initiatives.  

PDCA Supports a Data-Driven Approach: PDCA promotes a data-driven approach to problem-solving and decision-making. It encourages the use of data and facts to drive improvements, make informed decisions, and measure the effectiveness of actions taken.  

PDCA is Compatible with Other Management Systems: PDCA is compatible with other management systems and methodologies, such as Lean, Six Sigma, and ISO 9001. It can be integrated into existing quality management systems to enhance their effectiveness and drive continuous improvement efforts.  

Note: The PDCA cycle is often also referred to as the PDSA cycle, which stands for Plan, Do, Study, Act. The concepts and principles are similar, with "Study" being equivalent to "Check" in the PDCA cycle. 

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Written by Venkadesh Narayanan

Venkadesh is a Mechanical Engineer and an MBA with 30 years of experience in the domains of supply chain management, business analysis, new product development, business plan and standard operating procedures. He is currently working as Principal Consultant at Fhyzics Business Consultants. He is also serving as President, PDMA-India (an Indian affiliate of PDMA, USA) and Recognised Instructor of APICS, USA and CIPS, UK. He is a former member of Indian Civil Services (IRAS). Fhyzics offers consulting, certification, and executive development programs in the domains of supply chain management, business analysis and new product development.

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