Plan-do-check-act cycle definition
/What is the Plan-Do-Check-Act Cycle?
The plan-do-check-act cycle describes the process of continuous improvement needed to enact change. It is particularly useful when applied to high-volume processes, since even small changes to these processes can translate into substantial gains for an organization. The cycle involves a series of steps, which are followed iteratively to ensure that change is reinforced over time. The steps are noted below.
Related AccountingTools Courses
Quality Management Fundamentals
Step 1. Plan
Study the current process to determine where it is failing and how it can be improved. This can involve a detailed analysis of all process steps, including who is involved in the process, the actions taken by each of these people, and whether these actions are non-value-added.
Step 2. Do
Enact change, preferably on a small scale. A small-scale change reduces the amount of investment involved, making the cycle quite cost-effective.
Step 3. Check
Measure the outcome of the implemented change.
Step 4. Act
If the measured result represents an improvement, go ahead and implement the change across the organization. If the check stage resulted in a failure, then go back and try a different improvement plan.
The lessons learned from each iteration of the cycle are incorporated into the next iteration, so that the process improves over time. This approach can result in an ongoing rate of change that is incorporated into a firm’s budget as an expected reduction in expenses.
Who Developed the Plan-Do-Check-Act Cycle?
The plan-do-check-act cycle was developed by William Edwards Deming in the 1950s.