Detailed concepts of the Plan Do Check Act Process – Critical to achieving an ROI

Copyright © 2013 BSI. All rights reserved.
Detailed Concepts of the Plan Do Check Act Process

Copyright © 2013 BSI. All rights reserved. 2
Agenda
•The Plan Do Check Act methodology
•Main requirements of process improvement
•The business benefits that can be had from a more
methodological focus on process improvement
•Ways you can integrate this within your business
management system for maximum efficiency
18/03/2014

Background
Walter Shewhart & W. Edwards Deming

Four Phases of PDCA Cycle
•Plan Design or revise business process components to
improve results including KPIs
•Do – Implement the plan and start to measure performance
•Check - Assess the measurements, monitor and evaluate the
processes and results against objectives and specifications
and report the results to top management
•Act - Decide on changes needed to improve the process and
apply actions to the outcome for necessary improvement.
Measure Savings

PDCA Model for Process Improvement
Establish
system
Implement
and Operate
the system
Monitor and
Review the
system
Maintain and
Improve the
system
Interested Parties
Requirements and
expectations
Interested Parties
Managed System
Inputs
Outputs

These are supported by 8 management principles
• Customer focus – Current and future needs
• Leadership – Establish purpose and empower people
• Involvement of people ‐ Full involvement of people at all levels
• Process approach ‐ Resources are managed as a series of interconnecting
processes
• Systems approach to management ‐ Identifying, understanding and
managing interrelated processes
• Continual improvement ‐ Overall performance as a permanent objective
• Evidence‐based approach to decision making ‐ Effective decisions made on
analysis of real of data and information
• Mutually beneficial supplier relationships ‐ Enhances the ability of both
organizations to run efficiently.

Enhancing Processes
18/03/2014
As a general procedure to increase the speed and reduce the
cost of achieving the optimum condition in a process, product or
an organization and with similar approach like PDCA it is known
as Productivity Management.
Improvement moves on the premise of the Plan, Do & Modify
(PDM) Cycle. A closed loop like PDCA that shows the
interrelation of three elements for improvement. Instead of
the elements check and action the modify which consists of
both mentioned items is proposed.

The Benefits
Harvard University Study on the benefits of ISO 9001
• After becoming certified to ISO 9001, adopters subsequently:
• Experienced 10% faster sales growth than non-adopters
• Were more likely to report no (zero!) workers compensation claims.
• Grew employment 10% faster than non-adopters
• Grew payroll 13.5% faster than non-adopters
• Were more likely to survive than non-adopters.
• Smaller firms that adopted ISO 9001 saw a greater growth in employment,
sales and payroll than larger adopters did.
• An earlier study referenced in the Levine and Toffel report; Terlaak and King
(2006), found that ISO 9001 adoption led to faster production growth as well.
Source: Levine and Toffel: Quality Management and Job Quality, Management Science 56(6), pp. 978–996,
8
Copyright © 2012 BSI. All rights reserved. 18/03/2014

Select
improvement
opportunity
Analyze where you
are currently at
Identify
what is
being
measured
Generate and
choose
improvement path
Map out and
implement a
pilot
Analyze the
results
Draw
conclusions
Accept, Adjust or
Abandon
Continuous
Monitoring -
Improve
PDCA Cycle

(Plan) Select Improvement Opportunity
•Define team
•PROBLEM STATEMENT
•Management review and support

(Plan) Select Improvement Opportunity
•Controllable
•Measurable results
identifiable
•Achievable
•Data available or obtainable
•Resources
•Significance of expected
outcome
•Highly visible
•High volume
•High risk
•Variation
•Time-line for completion
•Probability for success
•Team incentive and
involvement - Owners
•Top management support
Selecting a candidate

(Plan) Analyze where you are at currently
•Define process
•Identify the interested parties
•What baseline data is needed
•Performance gaps?
•Look at benchmarks, standards, regulatory requirements
•Composition of team?
•Validate problem and statement
•Management review

(Plan) Identify what is being measured
•Very important step
•Analyze cause and effect relationships
•Select root cause process
•Shared decision making
•Baseline data
•Unbiased and reliable data to verify
•Management review

(Plan) Generate and Choose Improvement Path
• Generate list and select solutions
• Directly linked to root cause and supported by data
• Team brainstorming and shared decision making
• Consider best practices
• Be honest about barriers
• Cultural change while hard must happen
• Choose best solution based on criteria
• Ownership is key to buy-in
• Define and map out solution
• Planned objectives (SMART)
• Handoffs, resources, outputs, accountabilities
• Management review

Copyright © 2013 BSI. All rights reserved. 1518/03/2014
Process Ownership

Copyright © 2013 BSI. All rights reserved. 16STL Section 1304 16
esponsibility
uthority
kills
ccountability
ecognition
Process Ownership

Select
improvement
opportunity
Analyze where you
are currently at
Identify
what is
being
measured
Generate and
choose
improvement path
Map out and
implement a
pilot
Analyze the
results
Draw
conclusions
Accept, Adjust or
Abandon
Continuous
Monitoring -
Improve
PDCA Cycle

(Do) Map Out and Implement a Pilot
•Pilot
•Communication and education/training are key
•Be specific
•New tools, objectives, data etc.
•Implement Pilot
•Small in scale but representative of the process
•Test on a small scale to ensure change will produce
desired output and has potential to affect the bottom
line.

Select
improvement
opportunity
Analyze where you
are currently at
Identify
what is
being
measured
Generate and
choose
improvement path
Map out and
implement a
pilot
Analyze the
results
Draw
conclusions
Accept, Adjust or
Abandon
Continuous
Monitoring -
Improve
PDCA Cycle

(Check) Analyze the Results
•Collect and evaluate results
•Cross-functional team analysis
•Objective or subjective data?
•Revisit process as it was mapped out
•Go-no go or change

(Check) Draw Conclusions
•Team-based discussion
•Was the desired outcome met and/or desired change
occur?
•Did the everything go as planned?
•Was the process improved or root cause eliminated?
•What worked?
•What didn’t work?
•What could be improved/changed?
•What are the lessons learned?
Did we achieve expected outcome?

Select
improvement
opportunity
Analyze where you
are currently at
Identify
what is
being
measured
Generate and
choose
improvement path
Map out and
implement a
pilot
Analyze the
results
Draw
conclusions
Accept, Adjust or
Abandon
Continuous
Monitoring -
Improve
PDCA Cycle

(Act) Accept, Adjust, or Abandon
• Team-based discussion – Includes Top Management
• Accept
• Scale up?
• Formal Communication, education, and training to wider population
• Finalize metrics
• Adjust
• Revise plan and repeat pilot
• Communication, education, and training
• Abandon
• Revisit, root cause analysis and/or list of possible solutions
• Review cross-functional team for possible additional resources

(Act) Continuous Monitoring - Improve
•Standardize the new process
•Ongoing training
•Change policy
•Continue to monitor improvement and validate over time
•Continue reporting to top management
•Move to next improvement opportunity
Expectations of transparency, real-time reporting, improved
quality, and compliance assurance are becoming increasingly
important.

Conclusion
•Clear objective (SMART)
•Cross-functional teams!
• Team needs to own problem and get credit for the solution
~ Process Ownership ~
• Be data driven/evidence-based
• Conduct a thorough analysis
• Solution directly related to the bottom line
• Plan to measure
• Continual communication and feedback loop to top management
• Team Recognition along with Accountability
• Top management support and buy-in are critical

Conclusion
•Meaningless and/or poor activities can be eliminated along
with their associated costs
•Staff resources can be more effectively deployed and
optimized
18/03/2014

To Automate or not to automate
18/03/2014
A tool built fit-for-purpose can empower analysis, by
creating comprehensive views of compliance statistics,
tailoring performance comparisons and establishing
meaningful organizational benchmarks.

Contact Us
2
8
Address: BSI Management Systems America Inc.
12110 Sunset Hills Road
Reston
VA 20190
Email John DiMaria – john.dimaria@bsigroup.com
Main Office
Telephone: 888-429-6178
Fax: 703 437 9001
Email: Inquiry.msamericas@bsigroup.com
Links: http://www.bsiamerica.com

Detailed concepts of the Plan Do Check Act Process – Critical to achieving an ROI

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Detailed concepts of the Plan Do Check Act Process – Critical to achieving an ROI

Similar to Detailed concepts of the Plan Do Check Act Process – Critical to achieving an ROI (20)

Recently uploaded

Recently uploaded (20)

Detailed concepts of the Plan Do Check Act Process – Critical to achieving an ROI