Management seeks to develop effective ways to manage production and product quality. There are several approaches to solving this problem. Introducing the authors of the theory continuous improvement processes of Walter Shewhart and William Deming, whose control cycle is known throughout the world. They assume that, despite the large difference in production, the algorithm of actions for all systems is the same. Let's talk about what the essence of this theory is and how to apply this model in practice.
The concept of production management
The organization of any process, the impact on different objects is called found not only in production, each person has to organize his life, make many different decisions, achieve goals. Therefore, management is such a broad field of activity that goes far beyond the scope of creating products or services. The idea of W. Deming, whose management cycle we are considering, is that management exists in almost all areas of human activity, and they have general order actions. Any management is associated with the collection and processing of information, decision-making, coordination of processes, forecasting, control and evaluation of efficiency. Modern management considers many processes, including production ones, as projects. Quality is an essential attribute of any project. In this connection, there is such a special area as quality management.
Basic principle of quality management
In any sphere of production, quality management systems are being introduced today, in accordance with international standards. They are aimed at ensuring the stable quality of manufactured goods or services. Quality management is based on several basic principles. These include focusing on the customer and their needs, engaging and motivating employees, making realistic decisions based on facts, managerial leadership, and continual quality improvement. It was about the implementation of the last principle that the researchers who created the Deming and Shewhart cycle thought. Quality improvement is a permanent goal of every organization. It covers all levels of the enterprise from individuals to the manager, the work environment and the final product. One of two methods can be used to improve quality: breakthrough and incremental. It is achieved through the introduction of standardization, analysis and measurement, as well as optimization and rationalization.
The concept of Shukharat
As far back as the 1930s, the American management consultant, the famous scientist Walter Shewhart, deeply explores the issues of industrial product quality management. His work on control charts, which are a means of recording observations of the stability and predictability of any processes, has become a major milestone in the development of management. Over the years, he has collected statistical data on control production processes. And the top of it scientific work became the Deming-Shewhart management cycle. In his books, he argues statistical method control of stable quality of production processes and final products. Shewhart identifies three main stages in management: development terms of reference and specifications for the release of future products, production in accordance with the specification, checking the quality of products and their compliance with specified parameters. Later, the scientist transforms this scheme into a 4-step model:
- Product design.
- Product manufacturing and laboratory testing.
- Release of the product to the market.
- Checking the goods in action, consumer evaluation.
W. Shewhart put forward the process method as the most productive in management. His ideas had a huge impact on the development of management theory.
Deming's concept
W. Shewhart's student William Edwards Deming undertook to refine and improve his theory. He became the creator of the concept and general organizational method total quality management. Deming substantiated the point of view that the enterprise quality improvement is associated with the improvement of three areas: production, personnel and products. Also, as a result of many years of research, a system appeared that is primarily associated with the developments of Deming. The quality improvement cycle, according to the scientist, has no end, but has a circular character. He identified two main mechanisms for business improvement: quality assurance (production improvement, etc.) and quality improvement. According to the scientist, it is not enough to maintain a decent level of quality, one must constantly strive to improve its level. The updated Deming cycle includes stages of a slightly different nature. These are: planning, implementation, verification and action. Let us dwell on the characteristics of each stage in more detail.
Planning
First of all, the Shewhart-Deming cycle includes such milestone like product development and production design. According to the researchers, entrepreneurs should constantly plan for product improvement. And for this, set new goals, evaluate resources, draw up an optimal plan of action, appoint executors and deadlines. At this stage, it is important to find problems and ways to solve them. To find reserves for improvement, it is necessary to carefully analyze the situation, the production process, the market. Analytical activities will help identify potential for improvement. Also at this stage, detailed plans improvements, a production strategy is developed. A quality plan allows you to foresee force majeure circumstances and lay a solid foundation for your business.
Performance
Implementation of the plan is an important part of management. The Deming cycle involves the allocation of a separate stage of quality management to the "execution" stage. At this stage, Deming recommends starting on a small scale first in order to prevent large-scale losses in case of failure. When implementing plans, it is important to strictly follow the developed instructions and specifications. The manager must carefully track the actions at each technological step in order to comply with all requirements. In Deming's concept, this stage is rather a stage of testing, approbation, rather than serial production. Launching into a series no longer requires such close attention from the manager, but the first launches are extremely important. The manager must be 100% convinced that all technologies are followed, because this is the guarantee of quality.
Examination
After the launch of mass production, scientists recommend a diagnostic study. The Deming Cycle includes a large analytical stage in which it is necessary to evaluate how the process is going, to try to find new potential for quality improvement. It is also necessary to evaluate the characteristics of the perception of the product or service by the consumer. To do this, conduct tests, focus groups, analysis of customer reviews. Also at this stage, it is necessary to carry out diagnostics of the processes, their compliance with technological standards. In addition, the assessment of the work of personnel is carried out, the quality of the work of employees and products is monitored according to key indicators efficiency (KPI). If any deviations from the specified parameters are found, then the reasons for this are searched.
Actions
The last stage of the Deming cycle is the elimination of detected violations and shortcomings. At this stage, all possible actions are taken in order to obtain the planned product quality. Documentation and written consolidation of the results obtained in the form of specifications and instructions is also carried out. The Deming cycle, whose stages are associated with different stages of quality control, involves a circular motion. Therefore, after all the shortcomings and points of possible loss of quality have been eliminated, you should return to the first level and start looking for new opportunities for improvement. The gained experience of the cycle is necessarily used on the next round, it helps to minimize costs and improve product quality.
Deming's main principles
Deciphering his theory, the scientist formulates a number of postulates, which are called "Deming's Principles". The quality improvement cycle is based on them and proceeds from them. To the most important principles include the following:
Persistence of goals. Quality improvement, as the dominant goal, must be consistently achieved both in strategy and in tactics.
The leader is personally responsible for quality.
Quality control should not be mass, it should be built into the production system itself.
Norms and targets should be carefully justified and realistic.
It is necessary to encourage the desire of personnel for education, to motivate employees to improve their skills.
Quality improvement should become part of the mission and philosophy of the company, and first of all, managers should become its adherents.
Employees should be able to be proud of the results of their work.
Subsequently, on the basis of these postulates, the main principles were formulated international system quality.
Application of the Shewhart-Deming Cycle
The Deming-Shewhart model is called the "PDCA cycle" and is actively used in modern management practice. The Deming cycle, an example of which can be found in the organization of the work of almost all major world corporations, is a recognized tool for improving product quality. This concept was most fully and consistently accepted in this country. In this country, Deming was perceived as a national hero, he received several awards, including from the hands of the emperor. The Deming Prize has also been established in Japan. At the beginning of the 21st century, the concept began to be actively used in Russian management, it is the basis for the development of international and domestic quality standards.
ECONOMIC THEORY
A.M. Zhemchugov
analyst,
OOO " Enterprise Systems management"
M.K. Zhemchugov
cand. tech. Sciences, Chief Specialist, LLC "Corporate Management Systems"
PDCA CYCLE OF DEMING. MODERN DEVELOPMENT
Annotation. Dr. Edwards Deming is deservedly considered one of the creators of the Japanese economic "miracle", the founder of the process of reviving the Japanese economy in the postwar years. He called for an approach to problem solving that became known as the Deming cycle, or the PDCA cycle. Deming's approach has been developed by many authors, but the issue is still far from complete, especially in terms of hierarchical systems. This article is devoted to summarizing the experience of using the Deming cycle and its further development.
Keywords: Deming cycle, PDCA cycle, SDCA cycle, organization, process, process approach, strategy, policies, goal, plan, result, innovation, gemba, development, kaizen, efficiency, system.
A.M. Zhemchugov, LLC «Corporate Management Systems»
M.K. Zhemchugov, LLC «Corporate Management Systems»
PDCA CYCLE DEMING. CURRENT DEVELOPMENT
abstract. Dr. W. Edwards Deming is deservedly considered as one of the founders of the Japanese economic "miracle", of the Japanese economy postwar years revival. He urged to apply a problem-solving approach, which became known as the Deming Cycle, or the cycle of PDCA. This approach has been developed by many authors, but the issue is far from complete, especially in terms of hierarchical systems. This article is dedicated to the summary of Deming cycle studies and its further development.
Keywords: Deming cycle, PDCA cycle, SDCA cycle, organization, process, process approach, strategy, tactics, policy, goal, plan, results, innovation, development, kaizen, gemba, efficiency, system.
Dr. Edwards Deming is deservedly considered one of the creators of the Japanese economic "miracle", the founder of the process of reviving the Japanese economy in the postwar years. In 1946, he gave a series of lectures on statistical quality control methods to a group of top executives in Japanese companies. Deming urged the Japanese to take a systematic approach to problem solving. This approach became known as the Deming Cycle or PDCA (Plan, Do, Check, Action). Further, the Deming approach was developed by many authors, this is kaizen, and 7 quality steps, and the PDCA-SDCA cycle system. However, this question is quite complicated and is still far from complete, especially in terms of hierarchical systems. This article is devoted to summarizing the experience of the development of the Deming cycle and its further development.
1. Shewhart-Deming cycle
All manufactured products, both tangible and intangible, can be described
Introduction
sat - make a specification. It is also possible to describe what is not yet in reality, but what we want to create, what we foresee. It is possible to describe all the required organizational principles and processes, both current and those that we see as more effective in the future. However, firstly, compliance with the specification, as Shewhart said, is very illusory: “Someone could determine what he wants, someone else could take this specification as a guide and make this thing, and the inspector or quality judge could test the product and determine if it meets the specifications. A beautifully simple picture! .
This approach is depicted schematically by Shewhart in Figure 1a. Secondly, in this way it is possible to recreate only some semblance of a specified item, nothing better than something that is defined by a specification cannot be created in this way! Deming simply noted: "From the specification, I cannot understand what I need to know." Only earlier, until the middle of the last century - during the period of the dictatorship of the manufacturer, this was not required. However, since the beginning of the second half of the 20th century, the situation has changed - the dictates of the consumer began to set in. The struggle for the consumer began, the struggle for the quality of products, for its compliance with the needs of the consumer. arose new approach, coming from Shewhart, which he depicted in Figure 1b.
Figure 1 - Old and new system Shewhart quality management
Shewhart transformed the line in Figure 1a into a closed circle (Figure 1b), which he identified with "the dynamic process of acquiring knowledge." After the first cycle, a lot can be learned from the results, identify deviations and their causes, optimize and improve not only the given item itself (its compliance with the specification), but also the process of its production, improve the specification itself - create new technologies (specifications) and items to meet the growing needs of the consumer. And then improve on each subsequent cycle. As a result, we have a constantly improving product quality, its compliance with the ever-increasing requirements of the consumer, and we have constantly improving performance.
Deming introduced this cycle in Japan in 1950 and called it the Shewhart cycle. However, in Japan, he quickly came into use under the name of the Deming cycle.
Deming himself showed the old and the new way of production in this way (Fig. 2).
b) A new way of production
Figure 2 - Deming's new and old way of quality management
Manufacturers used to think of production as a three-step process, as shown in Figure 2a. Success depended on fortune-telling on the coffee grounds - what goods or services will be bought, how many of them will be produced. In the old circuit, in Figure 2a, the three steps are not connected. Accordingly, the results are low.
With the new method, the administration introduces, usually after studying consumers, the fourth stage (Fig. 2b):
1. Design the product.
2. Make it; test on the production line and in the laboratory.
3. Put it on the market.
4. Test it in operation; find out what the consumer thinks about it, and why someone who did not buy it did not buy it.
Figure 3 - Shewhart-Deming cycle
This cycle is often referred to as the "Deming Wheel". The cyclic continuation of these four steps leads to a spiral of constant customer satisfaction, at ever lower costs. "Repeat the cycle again and again, with continuous quality improvement and ever lower costs".
At the same time, Deming presented the Shewhart cycle in this way (Fig. 3). This cycle is often called
called the Deming Quality Cycle. 2. RBSL Deming cycle
Perhaps the first mention of the RBSL cycle was made by Deming during his seminar in Japan.
Figure 4 - Version presented by Deming during a workshop in Japan
Here the cycle contains four stages (Fig. 4):
Plan for changes or trials to improve.
Try to implement (preferably on a small scale).
Study the results. What have we learned.
Take action.
It differs from Shepard's cycle, in fact, only in that Shepard's "check" stage is explicitly divided into two stages: the check itself (3) and the action on the results of the check (4). This cycle is often referred to as the PDCA (Plan - Do - Control - Act) cycle. Deming preferred to call it the PDSA (Plan-Do-Study-Act) cycle, but that name never caught on.
Figure 5 - Management cycle of 4 stages with the selection of 6 principles
Deming wrote: “The process of production, having begun at some stage, changes form and proceeds to the next. Each stage has a consumer - the next stage. At the final stage - the product or service goes to the final consumer, that is, the one who buys the product or service. At each stage there will be: Production; Constant-
naya Optimization of methods and procedures". With this, Deming clearly showed that in his RBSL cycle, the processes of production and optimization take place simultaneously.
The Deming cycle can be applied in any, and not only in the areas noted, is a process of scientifically based improvements (innovations), and it does not matter in which area.
Ishikawa presented the RBSL cycle in a slightly different way, breaking it down into 6 principles (Fig. 5).
He said that management should be based on these 6 principles, which have proven to be the basis for success. And these six steps of the RBSL cycle are as follows (Table 1):
Table 1 - Six steps of the RBSL cycle
1. Definition of goals and objectives R
2. Determination of methods for achieving goals
3. Conduct education and training B
4. Implementation of activities
5. Checking the effect of doing work C
6. Taking Appropriate Measures L
Let us dwell, briefly, only on Ishikawa Principle 1: “Defining goals and
Here Ishikawa noted that as long as top management policy is not developed, no goals can be set. And “Management cannot exist at all where there are no policies and goals.”
Once the policy is defined, the goals and plans become clear. However, every department head and every decision-maker should have policies and goals: from general policies and goals, a transition must be made to regular and everyday policies and goals. In other words, policies and goals, management itself, is a hierarchical system.
It can be seen that the First Principle of Ishikawa, also known as the P stage of the RBSL cycle, corresponds to the development of the organization's strategy. James Quinn defined strategy as follows: “A strategy is a pattern or plan that integrates an organization's major goals, policies, and actions into a coherent whole. ... The strategy should contain three essential components: (1) main chains of activity; (2) the most significant policy elements that direct or limit the field of action; and (3) a program of main actions aimed at achieving the set goals and not going beyond the chosen policy. The subsequent stages of the RBSL cycle are the implementation of the strategy. Those. in this case and the development of the strategy, and its implementation, and production in accordance with the new strategy, are carried out in one single cycle. Deming's RBSL cycle both sets the strategy and implements it.
3. RBSL cycles: gradual and abrupt improvement
Deming noted that in one cycle of RBSL, changes must be made in
"preferably small scale". This is due to the fact that the development and implementation of changes, real activity and its analysis, are carried out here simultaneously in a single cycle, so it is rather difficult to understand: what determines the results achieved - the shortcomings of new standards or the shortcomings of their implementation.
TQM addressing this shortcoming is provided by methods of gradual and abrupt improvements. The gradual ones are PDCAi, 7 steps and kaizen. Sharp (innovation) is the PDCA-SDCA system. Masaaki Isai described the need to divide improvement into two types: “What is cultivation? It can be broken down into kaizen and innovation. Kaizen means making small improvements in ongoing work that do not change the status quo. Innovation is a fundamental transformation that changes the status quo and is carried out as a result of major investments in new technology and/or equipment.
Incremental change is the Deming PDCA cycle in which emerging problems are resolved "on a small scale". Even fewer problems in special cycles PDCA1, 7 steps and kaizen focused "very local solutions”, to eliminate the sources of problems one by one.
Drastic changes are the achievement of the goal set by the organization by setting and achieving several interrelated goals, “with special goals subordinate to the general whole” - this is a strategy, and gradual changes are organization and successive achievement of individual goals are tactics. At the same time, upon achieving individual tactical results, the strategy “links the actual partial results“ into one independent whole ”and uses it as it seems possible in accordance with the purpose of the organization” . Abrupt changes are proposed to be carried out by the system of two PDCA-SDCA cycles. Here, the functions of standards development (strategically, systemically) and their implementation are divided between the PDCA (standards development) and SDCA (standards implementation, production) cycles. At the same time, the PDCA cycle, as can be seen, is already different from the Deming PDCA cycle (it no longer includes production and analysis of production results).
At the same time, it is impossible to limit ourselves to innovation, or only small improvements (just as one cannot limit oneself to only strategy or only tactics), Imai wrote: “If a company wants to survive and develop, both innovation and kaizen are needed. The reason is that the system created as a result of the introduction of innovation gradually degrades if no efforts are made first to maintain it, and then to improve it.
3.1. Gradual improvement. Kaizen methodology
Kaizen means perfection. Masaaki Isai wrote that the starting point for improvement is the identification of a need. This requires acknowledging that there is a problem. If it is not revealed, then there is no need for improvement.
nii, there is no room for improvement. Therefore, this concept emphasizes the recognition of the problem and gives the key to identifying it. If the problem is known, it needs to be addressed. The kaizen methodology maintains and raises current standards through small, incremental improvements, a slow process that takes small steps.
A successful kaizen strategy unequivocally assumes that the responsibility for maintaining standards rests with the worker, and the improvement of standards is the responsibility of management. At the same time, the worker is also responsible for putting forward proposals for improvement. In addition, the worker and independently can carry out the improvement of their activities, if it does not go beyond the specified standards. The Japanese understanding of management boils down to the following: maintain and raise standards.
If during the RBSL cycle according to the kaizen methodology the proposed solution to the problem was implemented in practice, the next step is to check its effectiveness. In the case when it is found that the solution really improves the situation, it is fixed in the new standard (Fig. 6).
Figure 6 - Kaizen Decision Cycle
Note that the “Do” stage includes not only the implementation of the developed countermeasures, but also the production itself with the implemented countermeasures, otherwise it will simply be impossible to provide the “Check” stage - verification can only be carried out based on the results of real production.
"Kaizen is process oriented because to get better results, you must first improve the process." In kaizen, it is believed that the process is no less important than a very specific intended result - sales! And this is understandable, sales volume does not say anything about how to improve the process. Sales volumes (profits) are the starting point for serious marketing research and innovation and setting new goals.
Let us make a comment here about the term “result”, which is used in two meanings: as “the result of the process” (the quality of the process, the volume and quality of products at the output of the process) and as the “result of the organization” (the result of the implementation
products received by the system in which the production process is carried out). This issue is discussed in more detail in Section 6.
3.2. Gradual improvement. Cycles 7 quality steps and PDCA1
In TQM, the PDCA cycle “7 steps” is also known (7 steps of quality control, 7 QC steps, 7 QS). These steps are a standard methodology for improving weak processes. At the same time, the number of steps, in specific cases, can be less than 7 and more than 7, some companies use six or eight steps in their standard reactive problem solving process, and there are discrepancies among the seven standard techniques themselves, this issue is not fundamental.
Similar to kaizen, the 7-step PDCA cycle is used to find and reduce the largest source of controllable probability - one main cause. These steps are shown in Table 2.
Table 2 - 7 Quality Control Steps
1. Select a topic (a specific improvement such as "reduce post-delivery defects seen in product X").
2. Collect and analyze information (decide which types of defects are most common). P
3. Analyze the causes (identify the main cause of the most common defect).
4. Plan and implement a solution (prevent the root cause from recurring). D
5. Evaluate the effect (check new data to make sure the solution worked). C
6. Standardize the solution (constantly replace the old process with the improved one). A
6. Explore other issues as well to see if there are more important issues that require our solution.
We also note that step 4, as in the kaizen cycle, includes not only the implementation of solutions, but, as Deming noted, the production activities themselves in accordance with the implemented solutions.
At the same time, since changes are carried out in real time, on the job, then: “It is more reliable to plan very local solutions, clearly highlighting the elimination of the key cause, leaving most of the system intact” . After eliminating this cause, the next key cause is identified and eliminated in the next cycle.
Sheba also gave a scheme for conducting the RBSA cycle, which aims to improve the process and its results one by one, eliminating the main shortcomings, which are shown in table 3.
Let us note in conclusion - subsections 3.1 and 3.2 - that the successive non-systemic elimination of individual identified causes (evolutionary changes) leads to the accumulation of contradictions in the system, which can give rise not just to causes, but to a crisis that can only be eliminated by a complex cycle of ROSA-BOSA (revolutionary changes).
rational change).
Table 3 - RBSA1 cycle
P Select the main flaw that introduces deviations in the results, analyze the root causes of the flaw, and plan a series of measures to eliminate it.
D Perform upgrade.
C Check that the improvement was effective.
A Properly standardize improvement and start next.
3.3. Sharp improvement. System of cycles RBSA-8BSA
As Deming himself noted, his PDCA cycle operates "preferably on a small scale." Breakthrough improvements in this Deming cycle are very difficult to make because the development of improvements, their implementation, production, and analysis of the results are all done together. This leads to the fact that if the planned results are not achieved, it is almost impossible to understand what caused it: either the improvement itself or the shortcomings of its implementation are to blame.
On a large scale, with dramatic improvements, the PDCA-SDCA cycle system is already working, based on the division of the planning and production functions of the classic Deming cycle into two autonomous PDCA and SDCA cycles (Fig. 7). The PDCA cycle here already differs from Deming's PDCA cycle: "PDCA is understood as a process during which new standards appear" . It no longer has production and analysis of production results. The SDCA cycle works, constantly focusing only on production. Having received new standards S from the PDCA cycle (Fig. 7), it introduces these standards into production activities - makes the required changes, then carries out real activities (stage D), controls production results (stage ^ and takes the required corrective actions in case of deviations of the results (stage A). ).
Figure 7 - Alternating SDCA and PDCA cycles
In the PDCA cycle of the PDCA-SDCA cycle system, which develops new standards to be passed to the SDCA cycle, only the following stages remain:
1. P - development (correction) of a plan for creating a new standard.
2. D - the process of creating a new standard.
3. C - checking the results.
4. A - corrective actions, setting a new standard.
The BOCA cycle has the following stages, mostly excluded from Deming's ROSA cycle:
1. B - knowledge of the standard, the introduction of a new standard.
2. B - real production activity in accordance with the standard.
4. A - certain corrective action depending on the results:
Initiation of a breakthrough cycle of RSOA (significant process and product deviations from standards are identified, or significant process and product improvement methods are identified).
As you can see, stage B of the BOCA cycle either confirms the standard, or implements a new received standard. At stage B of the BOSA cycle, the processes of creating new standards are not carried out, only their implementation and production activities are carried out in accordance with the standards. At stage B of the ROSA cycle, only activities are carried out to create new standards, but there is no production activity. And it is clear why these cycles can only work together: "BOSA is used to stabilize and standardize the situation, and ROSA is used to improve it."
Let us note what caused the emergence of the ROSA-BOSA cycle system. Imagine, for example, that a company operating in the Deming ROSA cycle has only released a small batch of its new product to the market “on a small scale”. What will happen? Numerous clones will instantly appear that will flood and take over the market, leaving no room for the company itself. In reality, companies first carry out all the development completely (moreover, in strict secrecy) and only then introduce the development immediately into mass production, and capture the maximum segment of the market. As the famous saying goes: "Measure seven times, then cut." Work through, analyze, model, test seven times, and only then launch it into real life with all your might. At the same time, we simultaneously ensure the confidentiality of innovations, reduce resources and time. practical implementation, we provide stability and efficiency of real activity.
The need for such a development of the Deming ROSA cycle into the ROSA-BOSA cycle system is explained by the fact that the first began to develop in the early 50s of the 20th century, when the dictate of the manufacturer was just beginning to be replaced by the dictate of the consumer and competition between companies was just beginning to intensify. And the ROSA-BOSA cycle system appeared later, when competition had already intensified so that innovations in products began to be cloned literally in months, which simply did not allow launching limited batches of new products on the market. And innovations in the organization of activities
The problems have become so complicated that in Deming's RBSL cycles, gradually and "on a small scale", it has already become impossible to implement them without damage to production.
If we show the inputs and outputs of processes in the system of cycles RBSL-BVSL (Fig. 7), we will get a diagram of the process of sharp improvement (Fig. 8).
To code Exit
Figure 8 - Breakthrough Process
4. A system that provides both sharp and gradual improvement
Sharp improvements alone, as noted, cannot be dispensed with. A system that provides both abrupt and incremental improvements is shown in Figure 9.
Figure 9 - A system that provides both abrupt and gradual improvement
Figures 9a and 9b show three cycles. The main cycle is the BBSL cycle that ensures current production activities, controls and corrects deviations in the quality of processes and products - deviations from existing standards. If a problem arises that requires a change in standards or the development of new standards, one of the RBSL cycles is turned on: gradual (RBSL ^ or sharp (RBSL 2) improvement. A more complete system is shown in Figure 9b. Here, plans coming from above are taken into account, analysis external environment, the interaction of the cycles here is practically the same as in Figure 9a. It is noted that the RBSL2 cycle is a strategy - the solution of strategic tasks coming from production (the RBSL cycle) and the external environment.
Only this diagram does not show the input and output of the system. As can be seen (Fig. 9a, 9b), real activity is carried out at stage B of both the BBSL cycle and the RBSL cycle, respectively, production must constantly switch from the BBSL cycle to the RBSL1 cycle and vice versa. Apparently, for this reason, it was not possible to show the input and output of the process in this diagram, and another solution must be sought.
Considering the 7-step cycle, Shiba noted that it has the properties of both the RBSL cycle and the BBSL cycle: "it is an RBSL cycle in which the last few steps are the BSSL cycle (standard, use, check, reaction)". It can be seen that all stages of the RBSL cycles of gradual improvement (except for the P stage) also have the properties of both the RBSL cycle and the BBSL cycle. You can even call them BBSL cycles, noting that its stage L of such a BSBL cycle also provides for the improvement of the standard. Further, this cycle of BSBL will be called the "cycle of BSBL of improvement".
At the same time, the RVSL-BBSL system with the BBSL improvement cycle will function in accordance with Figure 10.
Figure 10 - System of RSVL-BSBL cycles with the BSBL improvement cycle
The BBSL improvement cycle has the following stages:
1. B - standards coming from above: the quality of processes and products, production volumes (plans), the introduction of new and improved standards.
2. B - real production activity in accordance with the standards.
3. C - analysis of the compliance of processes and products with standards.
4. L - a certain corrective action, depending on the results, providing:
Preservation of the standard - no correction is required (the process and products meet the standards, no improvement methods have been identified);
Bringing the process to the standard (deviations of the process from the standard were found);
Improvement of the standard (deviations of products from the standard or methods for improving the standard and products (with limited change in standards) were identified);
Data transfer to the RSBL cycle of a sharp improvement (significant deviations of the process and products from the standards were identified, or significant methods
process and product improvement).
The BSBL improvement cycle shown in Figure 10 differs from the classic BSBL cycle only in the presence of the above-mentioned (above in the text and in italics in Figure 10) the possibility of improving the standard at stage (L). All other functions are identical. The correspondence of the BSBL cycle of improvement to the RBSL cycles of gradual improvement is shown in Table 4 using the example of the RBSL cycle according to the kaizen methodology.
Table 4 - Correspondence of the stages of the BSBL and Kaizen cycles
Stage RBSL cycle according to kaizen methodology Stage BSBL improvement cycle
P Definition of the problem A Definition of the problem
P Analysis of the problem A Analysis of the problem
R Establishing causes A Establishing causes
P Planning of countermeasures A Planning of countermeasures: Depending on the results and analysis achieved: Standardization Bringing the process to the standard; Improvement of the standard; Transferring data to the RSBL cycle to launch a separate improvement cycle.
B Implementation of countermeasures 8 Implementation of new and improved standards.
Production B B - production according to standards
С Confirmation of the result С Analysis of the compliance of processes and products with standards.
A Standardization See stage A above
Only the shift of the stages of the BSBL cycle of improvement in relation to the RSBL Kaizen cycle is visible, which is completely unimportant: the correspondence of the cycles is complete. Similarly, one can show the correspondence between the BCBL improvement cycle and other RLSL cycles of gradual change. However, it is absolutely impossible to compare the RBSL and BBSL cycles of improving the system of RVSL-BBSL cycles in this way.
Another argument for thinking of the well-known incremental improvement cycles as the BBSL improvement cycle is that the goal of both of these cycles is the quality of processes and products and their stage B is the actual production. Cycle management comes from below, from production. The purpose of the RBSL cycle is completely different - the creation of new standards. Its management mainly comes from above, from the goals and strategy of the organization, and only in case of serious problems with production, it comes from below.
The complete process of the organization's activities with the BSBL improvement cycle
is shown in Figure 11. Compare with Figure 9b, which does not even indicate the inputs and outputs of the system.
Vnod Vnod
Figure 11 - The process of the organization's activities, including abrupt and gradual changes with the BBSL improvement cycle
Note that here the RBSL cycle does not rotate constantly, but only during the development of a new standard, the rest of the time, being in the standby mode. At the same time, in the standby mode, stage R of the RBSL cycle functions and analyzes the information coming from the external environment and the BBSL cycle of improvement (from stage L). As soon as the need for the development of a new standard is identified at stage P, the RBSL cycle is launched (without affecting the BBSL cycle until the development of the standard is completed).
Such an extension of the BBSL cycle does not change the essence of the ongoing processes, but facilitates their description and understanding (compare Figs. 9a and 9b, and 11). The content of the RBSL and BBSL cycles and the RBSL-BBSL system are shown in Table 5.
Table 5 - PDCA and SDCA cycles of improvement, PDCA-SDCA system
PDCA cycle of PDCA-SDCA system BBSL improvement cycle RBSL-BOSL system with BBSL improvement cycle
Purpose Planning. Development of dramatic improvements Production. Stabilization or incremental improvement Planning. Production. Sharp improvement, stabilization or gradual improvement
Strategy/tactics Strategy development Tactics Strategy and tactics
Direction of information flows Top down with possible iterations from the bottom up Bottom up with possible iterations from the top down Planning - from top to bottom, production - from bottom to top (with possible counter iterations)
Approach Orientation to the result of the organization (foreseen goal) Process approach (orientation to the process and the result of the process) Orientation to the result of the organization (foreseeable goal); Process approach
Monitoring of the External Environment Processes and their results External and internal environment
5. System of 8BSA-RBSA cycles in a hierarchical organization 5.1. Hierarchical organization model
Sheba presented the hierarchical system of cycles of the BVSL-RBSL in the organization as a system functional groups(divisions) at each level of the hierarchy (Fig. 12).
Figure 12 - Application of the cycle of qualitative improvement within functional groups (here "new. STD" - new standard)
However, we note that:
Such a model is obvious for an organization with directive authoritarian management, but not for the democratic management peculiar to Japan, where it was developed. Figure 12 shows that the RVSL-BBSL cycles are closed within one unit, there is no coordination between units.
At all upper levels there is no real production, and there can be no stage B of the BBSL cycle, which works only at the lowest level of specific production operations and not at the leadership level.
Figure 12 shows only a limited model of functional groups, not the full model shown by Sheba in Figures 9a and 9b.
Shiba eliminated the first drawback by introducing "interfunctional relationships" (Fig. 13).
Actually, this Figure 13 only shows the idea that a particular production work, performance analysis, standards support (BBSL cycles) should be carried out according to a hierarchical system. And goal-setting, the development of strategies, programs and action plans, the standards of activity themselves (RBSL cycles) - according to a democratic (parallel) system: "Parallel structures that carry out activities in the field of qualitative improvement create new work experience, standards for the hierarchical organization of daily work" . However, these ideas could not be depicted in the form of a complete unified model.
Real activity: management, control, especially policy development and goal setting cannot be carried out by one leader personally: "When developing policy, executive management must always keep the big picture in mind" . Such a general picture can only be formed joint activities RU-
leader and his subordinates (and possibly with the involvement of other specialists and experts), who always have a better command of the situation in all their areas. In the same time effective work can only be done if the size of the group is limited, preferably no more than 7-9 people. This is just the size of the group leader and his direct reports. The involvement of other lower-level managers also has no effect and may lead to worse results.
Figure 13 - Application of the quality improvement cycle within functional groups
At the highest levels, this is a group of a superior leader and subordinate managers of a lower level of the hierarchy, at the lowest level, a group of a leader and ordinary employees who manage the means of production. Only in force majeure situations can one-man authoritarian management be applied (we note that for this the leader must have authority).
4 Structural element 100
Third party С101
Structural subdivided 110
Structural unit 120
Structural subdivision 1p0
2 2 2 2 2 □ □ □ □ □
Structural element 100
Structural element1p0
Figure 14 - Structural (management) element. a) element scheme, b) symbol, c) recursive union of structural elements
The article noted that the social model should focus not on one leader, but on the primary group of interacting individual leaders (superior and directly subordinate) with their established relationships, their culture, their interests, agreed goals -
for the primary team. The elementary cell of the organization is indivisible in the social sense - a structural element, is shown in Figure 14.
At the highest level, the structural element includes only the owner and head of the organization (with possible involvement specialists and experts), at the lowest level - the head of the lower level of the hierarchy and his ordinary employees with the means of production (Fig. 15).
Structural element 100
Structural unit 100 Formal organization Informal organization (subculture)
Employee Employee Employee
Means of production
Means of production
Means of production
Formal organization - Informal organization (organization culture)
production element
Figure 15 - Structural (production) element, a) element diagram, b) element symbol
All linear (vertical) links are bidirectional. The coordination of subordinate structural units in Figures 14 and 15 is marked with a solid line penetrating these units and going beyond the boundaries of the unit, here it is both formal and informal coordination on the principle of “each with each”. Given the bidirectional vertical connections, the principle of "each with each" applies to both the leader and subordinates, the formed subculture and the commonality of interests and goals, the social structural cell is a single whole.
This structural production element (Fig. 15) takes special place in management in Japan, there the level of production is called "gemba", literally meaning "a place where work is done" or "a place where value is added". Imai says to go to the gemba, the place where the process takes place, whenever something unusual happens, or if you want to know the current state of affairs, to solve problems. Whether it's a shop floor process or a customer service window, gemba is the source of all information. Note that the information of production processes is mainly tactical information coming from the internal environment, and the processes of customer service and market research are mainly strategic information coming from the external environment. "Gemba service is the main purpose of management, which will not be easy for Russian managers to accept and get used to".
Taking such a structural element as an elementary cell of the system ensures the integrity of the entire system (Fig. 16).
It can be shown that the model shown in Figure 16 fully corresponds to the idea of Sheba shown in Figure 12. We only note that the BBSL cycles of improvement in the model (Figure 16) (in contrast to the Sheba model shown in Figure 16)
12) are present only at the lowest level, at the gemba level. We will discuss this in detail in the following subsections. However, in this case (unlike the one shown in Figure 12), the model is a single and inseparable whole - all elements of this system intersect (if the cycles are depicted as circles, then all of them will also intersect). And all this one system follows the achievement of the goal set for it, and does not act chaotically, but in accordance with the developed single strategy: different levels hierarchies with different time horizons, with constant promotion short term plans lower levels and correction of long-term plans of the upper levels, depending on the conditions and progress in achieving actual results at the lower levels. Here we can clearly distinguish the development of this program of activities (the RBSL cycle) - the organization of activities, the practical activity itself with the analysis (the BBSL cycle of improvement) of "the conditions and progress of achieving actual results at the lower levels."
Figure 16 - complete model systems
5.2. RBSL cycle in hierarchical organization
The RBSL cycle according to the hierarchical structure of the organization is carried out recursively, it is described in the article. In each cycle, not one leader takes part, but a group that includes the leader and all his direct subordinates. Cycles unfold from top to bottom, covering the entire organization. Each cycle unfolds as shown in Table 6.
As can be seen from Table 6, each cycle works with all members of each elementary structural cell (Fig. 14 and 15). In each cycle, only the leader works at first, then, when he already has a vision of the issue, the leader considers the issue in more detail with his subordinates, then the leader makes a decision. The main flow of directives comes from the top down, but it is also met by the flow of possible corrections, from the bottom up.
As can be seen from Figure 14, this development can involve not only the head and his immediate subordinates, but also specialists and experts from other departments and third-party organizations, including external consultants, the need for which significant changes in the goals set and the serious changes required, is quite large. All this provides the required interfunctionality during the RBSL cycle.
This complex recursive cycle is carried out recursively at all levels of the organizational hierarchy, starting from the top. It ends with the fact that at each level
hierarchy, for each division and final contractor, goals, plans, programs, standards are set, the necessary resources are allocated.
Table 6 - RBSL cycle in an elementary structural cell of a hierarchical organization
R Formation of goals and policies by the head based on the goals and policies received from above and analysis of the internal and external environment. Building a leader's vision that ensures the achievement of the goal. Setting private strategic goals for subordinates to achieve the vision, programs and projects for the practical implementation of the vision (production, internal and external environment).
B Coordination with subordinate managers of their strategic goals, programs and projects of the enterprise. coordination between them. Determination of the structure of subordinate units and requirements for their leaders. Development of necessary changes. Clarification of goals and required resources to subordinate units.
C Verification of compliance of the complex of subordinate goals with a given goal.
L Coordination with subordinate leaders of their strategic goals, programs and projects. Preliminary approval of the goals and programs for their achievement by the unit. Possible refinement of the goals of the entire unit (repetition of the cycle).
Figure 16 shows the system of RBSL cycles (they are shown by rectangles). Each cycle works with the parent department and all departments subordinate to it. It can be seen that they intersect. Each subordinate cycle, depicted by a black small rectangle, is expanded as a cycle of subordinate subdivisions with subdivisions already subordinate to it (small unfilled rectangles are conventionally not disclosed for simplicity). The lowest level is the workplaces of the final performers (they do not have subordinates, only the means of production), along which intermediate products are promoted from the input of the organization (source materials) to its output (final products). In an organization, the top left filled rectangle is the relationship to the owner. As a result, we have a monolithic single cycle of organization.
When setting goals and activity programs, information in the RBSL cycles goes from top to bottom with possible iterations from bottom to top.
5.3. The 8BSL cycle in a hierarchical organization. Hierarchical system of cycles RVSL^BSL
The BBSL cycle, as noted above, is present only at the lowest level of the organizational hierarchy. He introduces the standards developed in the RBSL cycle into the production of products (and then improves them). The basis of the cycle is the control and analysis of the quality of production processes and product quality. This data is immediately sent from the workstations to the masters who control the BBSL cycle. In this cycle, the main interaction is between, for example, the master and the workers who control production equipment. If deviations are found, which
What can be eliminated by small changes in processes or improvement of standards, this is done in the BBSL improvement cycle. If these deviations are more significant and require elaboration, the RBSL cycle (the ROSL-BOSL system) is launched, in which the same foreman and workers participate. If the deviations are very significant, and they do not have enough competencies and resources to eliminate them, then they must submit an appropriate report to a higher level of the hierarchy (Fig. 17). And this, as Shiba noted, already requires a strategic decision: it requires a correction of goals or allocated resources. If there are not enough competencies and resources at a higher level, the decision is transferred to an even higher level of the hierarchy.
Figure 17 - System of RBSL-BVSL cycles of a hierarchical organization
In general, reports on the achievement of individual (tactical) results (or deviations) during the BBSL cycle climb up the hierarchy (with little or no cross-functional coordination), at each level checking the set indicators and, if necessary, immediately taking corrective actions (or starting a new one). RBSL cycle) from top to bottom. This does not have to be from the highest level of the hierarchy: both corrective actions and the RBSL cycle can be carried out starting only from the level of individual departments. As a result of such a construction of the cycle, the system is "doomed to produce high-quality activities in a short time" . Note that this is already a strategy (analysis of the system of results “with special goals subordinated to a common whole”), which, as noted above, “links the actual partial results“ into one independent whole ”and uses it in a way that seems possible in accordance with for the purpose of the organization. At the same time, the P stage of the RBSL cycle is here
conducts the composition of plans up the hierarchy and checks the control of plans and results at each level of the hierarchy.
Thus, the BBSL cycle functions only at the level of real production - the gemba level. At higher levels, and down (decomposition and planning), and up (composition, reports, analysis comprehensive results) the RBSL cycle works. This is clearly seen from Figure 17, the upper levels of the hierarchy are built in a similar way. At the same time, when composing reports, the RBSL cycle does not rotate, only one of its stages P works. The RBSL cycle is launched only when significant deviations of reports (forecasts) from plans are detected (or when there are deviations in the internal environment).
Note that the RBSL cycles actually intersect, since the same leaders are included in both the upper cycle and the lower cycle (Fig. 16), and the lower RBSL-BBSL cycles are mainly performed by the same teams. At the lowest level, each BBSL cycle involves, for example, the foreman and workers who control the means of production. At the second level from the bottom, the same craftsmen and the head of production participate. At the third level from the bottom, the director and his subordinates, the same production manager and heads of other departments, participate. Thus, despite the apparent disconnection of the system, all its elements intersect (Fig. 16). You can compare the circuit shown in Figure 17 with the circuit shown in Figure 12.
Note the lowest level of RBSL cycles. This cycle can set a strategy - the organization by the production site of achieving several interrelated goals, "with special goals subordinate to the general whole", or tactics - the organization and achievement of individual operational goals. For production with a high degree of formalization, this lower level is more tactical, for production with a low degree of formalization, this level is more strategic.
Thus, at the upper levels, from top to bottom, the strategy is developed by RBSL cycles (at the lower levels, RBSL cycles can also develop tactical issues). Then, when all the standards are set for all workplaces, production activities are determined by the BBSL cycles (with the introduction of new standards and the improvement of processes and standards) - tactics. Next comes the upward flow of reports from the bottom up - a strategy that "links the actual partial results" into one independent whole "and uses as much as is possible in accordance with the purpose of the organization" .
6. Process approach and result orientation
One of the main features of the system are connections with environment for the exchange of resources. It is the exchange of resources that makes it possible to ensure the development of the system: “At the input of the system is the receipt of materials, work force, capital. Technological process organized for the processing of raw materials into the final product. The end product, in turn, is sold to the customer" and the organization "uses the profits generated to support development."
The product at the output of the organization as a system is what it produces in the course of processes and offers to the consumer. The result of the organization is what it receives from its activities, from the sale of its products to the consumer. This is a product of the organization-consumer system - these are the resources received by the organization from the consumer: tangible, intangible and, mainly, economic. Obtaining a product of the organization-consumer system is the goal of the organization (the expected result), the goal, the achievement of which ensures the self-preservation and development of the organization. The organization's output, in and of itself, cannot be the purpose of the organization.
Note that the economic result of the organization is not the proceeds from the sale of products to the consumer, it is the output pure product- an indicator of the volume of production of the enterprise in monetary terms, characterizing the cost of the newly created product. It is defined either as gross output minus material costs and depreciation charges, or as the sum wages, spent on the creation of products, and the profit of the enterprise from the sale of manufactured goods. It is an analog of national income at the enterprise level.
The process approach - this is the maintenance and continuous improvement of processes and products - covers feedback on the result of the process: the quality of processes and products (current and predicted) at the outputs of the processes. It is provided by the BOSA cycles of maintenance and gradual improvement and the system of ROSA-BOSA cycles - at the gemba level.
Result orientation is the analysis of the external environment and setting new higher goals for the organization (the goal is the expected result) and focusing on dramatic improvements to achieve these goals. Including new and changed processes ( new products, upgraded products, new technologies, etc.). Covers feedback on the result of the organization (current and predicted). The result that gives the organization the sale of the product to the consumer. It is provided by the RBSL (innovation) cycle.
The process approach (orientation to the result of the process) is mainly closed within the organization at the gemba level. Orientation to the result of the organization includes both the consumer of products, and the processes of selling products to the consumer, and monitoring the external environment. It is produced in the organization-consumer system (Fig. 18).
I_____________________________I
Figure 18 - Process Outcome and Organizational Outcome
The difference in the time characteristics of these two feedbacks is obvious: if feedback on the quality of processes and products can be carried out in real time (with fast processes, even per minute), then with feedback
Zyu according to the result, the situation is completely different. So, for example, the profit received can be found out only after a quarter, or even a year.
Accordingly, it is also obvious that both feedbacks are necessary. Moreover, for commercial companies, the quality of processes and products is not a goal, but a means of obtaining a result: if the highest quality (in terms of accepted standards) processes and products do not bring profit to the company, they must be completely revised with a focus on results. In general, any organization that exists in the external environment is focused on the result of the organization (survival and development), on what it receives from the external environment. Quality processes and outputs are the means by which an organization achieves results.
The process approach, when the system is configured to support processes and products to specified standards and improve them in real time (in a temporary separation from the implementation results) is operational management. And, only when a change in demand is detected (or a sharp drop in the results of processes), feedback on the result of the organization (strategic management) is activated. As Shiba pointed out, it is necessary to find a compromise between the result orientation of the organization and the process orientation (on the result of the process), not only long-term results-oriented goals (organizations), but also "intermediate process-oriented goals" are needed.
Japan has traditionally focused on the process, the United States - on the result. The main shortcomings of the Japanese system are the leveling and slow promotion of young employees, as well as their low wages. However, the system of remuneration and promotion based solely on age and seniority is becoming obsolete in terms of efficiency. Or already outdated. But only in recent years, the Japanese began to modernize it, gradually introducing contracts, internal competition, accounting for personal contribution, a pay system based on results, and other elements of Western management.
Process approach - cycles BBSL and RBSL-BVSL - the lowest level of the hierarchy (gemba). Where the upper RBSL cycles work, there the question is already about goals and resources, and this is already a result orientation. For example, the issues of production planning in terms of volume and nomenclature do not come from the processes, but from the goals of the organization, if necessary, they change the processes. As we climb higher through the RBSL cycles (Fig. 17), the analysis of the external environment becomes more and more important, the orientation towards results in a dynamic external environment increasingly dominates process management by defining and replacing and modifying the processes themselves. The main orientation at the upper levels is on goals and resources (foreseen results), and this is already a result orientation.
7. Orientation to the results of organizational units
Figure 18 shows that only the entire organization as a whole works for the result of the organization, while the divisions work only for the process. Therefore, the result achieved by each unit (what it receives for its activities) is determined by
is divided administratively and subjectively (distribution from above from the “common pot”).
At the same time, each division of the organization (each stage of the process) has its own consumer - the next division (the next stage). At the final stage - the product or service goes to the final consumer. Here, each of the divisions is "a place where value is added". And the result achieved by each division should not just be assigned from above, it should be determined by the value added by that division. To do this, there are various methods, for example, internal cost accounting, budgeting, transfer prices, etc. To introduce these methods, the units must have sufficient independence.
Figure 19 depicts an organization with three separate divisions (with processes running within them) and with feedback on the result of divisions.
Monitoring
Wednesday Result 1 subdivision
Environmental monitoring
Department¡Result (process)
Result
2 divisions
Environmental monitoring
Organization! Organization result
Department [Result (process)
Department (process) Result ■ ^ Customer
process ^ (product) 1
Figure 19 - Organization with three independent divisions
In this case (Fig. 19) there is no administrative distribution (Fig. 19 the central leadership is not even conditionally depicted). Revenue from the sale of products goes to the final unit of the organization, however, this is not the result of this unit, but of the entire organization. The final division passes the results of other divisions down the chain from output to input. And the very first division pays for both input materials and components (not shown in Fig. 19). Here, the real result of each division is determined by the added value created by it (after the sale of the final product to the consumer), and each division is focused on obtaining its maximum added value. The process approach here is implemented within departments.
Such an organization with a focus on results is most consistent with the mentality of the West and Russia, but Japan, as noted above, has taken the path of increasing the role of performance-based pay in recent years. At the same time, both in the West and in Russia, the process approach is increasingly being used.
It can be noted that, in the limit, result orientation can be brought to each employee of the organization, only it is required to observe the optimum between payment for an individual result, for a collective result, and for the quality of processes and products.
1. A well-known development of the Deming RBSL cycle is: the system of RBSL-BBSL cycles of abrupt improvement, in which the change development functions (RBSL cycle) and the change implementation functions (BBSL cycle) are divided between these two cycles, and the RBSL cycles of incremental improvement: kaizen, 7 steps , RBSL1. The first allows for sudden changes, the second - gradual.
2. The “SDCA improvement” cycle proposed in the article for the PDCA-SDCA system allows you to solve all the issues of both sharp and gradual improvement without additional cycles, in one system of cycles.
3. The proposed system of PDCA-SDCA cycles provides for all activities of the organization. At the same time, the PDCA cycle is basically a strategic management system, the SDCA cycle is all tactics and all real production.
4. The process approach (process result orientation) is defined by the SDCA cycle and the lower level of the PDCA-SDCA system, while the organization's result orientation (strategic approach) is determined by the higher PDCA cycles.
5. For a hierarchical organization, a system of PDCA-SDCA cycles was built, which forms an inextricable intersecting hierarchy, in which the subject of each elementary cycle is a group that includes at least the leader and his immediate subordinates.
6. In a hierarchical organization, the SDCA cycle only functions on the lowest production level hierarchy (gemba), but the results of the processes are passed to the PDCA cycles (P stages) up to the highest level of the hierarchy, triggering the required PDCA cycles on deviations.
7. The process approach works at the lowest level of the hierarchy (gemba). At the upper levels, where PDCA cycles work, the orientation is towards goals and resources (foreseen results), and this is already a result orientation.
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Note that all processes in the QMS model can be applied to a methodology known as the cycle PDCA, or the Deming cycle. E. Deming developed W. Shewhart's concept of continuous (process) quality improvement and put into practice production management using a loop PDCA. The Deming cycle is a continuous quality improvement model. It consists of a logical sequence of four iterative steps for continuous quality improvement: Plan, Do, Check, Act. plan(planning) - development of policies, goals and processes necessary to achieve results in accordance with customer requirements; Do(implementation, action) - implementation of processes; Check(control) - constant verification of products, processes for comparison with policies, goals and requirements for products; act(action) - actions to continuously improve the performance of processes.
The Deming cycle is usually illustrated by a management scheme for any kind of activity, including the quality management process (Fig. 4.6).
Rice. 4.6.
The Deming cycle is primarily aimed at fighting the three main, as the Japanese believe, enemies - 3MU:
- losses (all kinds of activities that consume resources without creating value) - muda;
- inconsistencies (any deviation from the process, good or bad) - tiga;
- irrational actions (overload, work with voltage) - muri.
Cycle PDCA can be applied to all processes and the quality management system as a whole. On fig. 4.7 shows how sections 4-10 of GOST R ISO 9001-2015 can be grouped according to the cycle PDCA.
Section 5. Leadership. Top management shall demonstrate its leadership and commitment to the quality management system by:
- taking responsibility for the effectiveness of the quality management system;
- ensuring that quality policies and objectives are developed that are consistent with the organization's environment and strategic direction;
- ensuring the integration of the requirements of the quality management system into the business processes of the organization;
- promoting the application of the process approach and risk-based thinking;
- spreading throughout the organization an understanding of the importance of effective quality management and conformity with the requirements of the quality management system;
- ensuring that the quality management system achieves its intended results;
- engaging, guiding and supporting the participation of workers in ensuring the effectiveness of the quality management system;
Rice. 4.7.
- ensuring the availability of resources needed for the quality management system;
- improvement support;
- supporting other relevant leaders in demonstrating leadership in their areas of responsibility.
Section 6. Planning. Planning in the standard is considered in the following areas (Fig. 4.8): 1) actions in relation to risks and opportunities; 2) quality objectives and planning for their achievement; 3) change planning.
Chapter 7. Means of support. The standard refers to the means of ensuring resources, competence, awareness, information exchange.
Resources. The standard refers to resources human resources, infrastructure, environment for the operation of processes, resources for monitoring and measurement, knowledge of the organization.
Competence. The organization must first determine the necessary competence of persons doing work under its control that affects the performance and effectiveness of the quality management system; secondly, to ensure the competence of these persons on the basis of appropriate education, training and experience.
Rice. 4.8.
Awareness. The organization shall ensure that relevant persons doing work under the control of management are aware of the quality policy; relevant quality objectives; its contribution to the effectiveness of the QMS, including the benefits of improved performance; consequences of non-compliance with the requirements of the QMS.
Information exchange. The organization shall determine how to communicate internally and externally information related to the quality management system, including: what information will be communicated; when it will be transmitted; to whom it will be transferred; how it will be transmitted; who will pass on the information.
Section 8. Activities at the stages life cycle products and services. This section describes the activities of the organization at the stages of the product life cycle in the following areas: planning and managing activities; analysis of requirements for products and services; design and development of products and services; managing processes, products and services supplied by external providers; production of products and provision of services; output; managing nonconforming process outputs.
Section 9 Performance Evaluation. Performance evaluation includes the following areas: monitoring, measurement, analysis and evaluation; internal audit; management analysis.
Section 10. Improvement. The organization shall identify and select opportunities for improvement and take the necessary actions to meet customer requirements and improve customer satisfaction. This procedure includes: improving products and services in order to meet requirements, as well as to meet future needs and expectations; correction, prevention or reduction of the impact of undesirable impacts; improving the performance and effectiveness of the quality management system.
- Buzyrev V. V., Yudenko M. N. Quality management in construction: textbook, allowance. St. Petersburg. : GIORD, 2009. S. 129.
- Yudenko MN Quality management systems in construction: textbook, allowance. St. Petersburg. : St. Petersburg State University of Economics, 2017.
What is the PDCA cycle?
PDCA is a methodology that values a company's culture of continuous improvement. It is a type of interactive management method used to both control and continuously improve products, services and processes in general.
Why use? Those who wish to improve the management of their company on an ongoing basis need to learn the PDCA methodology - Plan, Do, Check, Act - as soon as possible. It consists of four stages and allows you to constantly improve your company.
How to do? The practical application of this methodology can be done in any company using the PDCA Cycle Worksheet. Below we will see 4 steps and how this application should be.
How to do PDCA
Before diving into the PDCA cycle, you need to choose one of the company's foundational processes. Any: the process of selling, the production of a product, the provision of a service, financial closure, and finally, the user himself must choose what initially requires the most attention.
Don't bother choosing carefully because the idea behind the PDCA methodology should be included in the corporate culture forever and ever. In other words, in the end, all processes will eventually be considered.
Each process has bottlenecks, and it is on them that the loop acts. What bottleneck do you think hinders the selected process the most? Use indicators to measure waste at each step of the process. The measurement can be done in several ways:
a) conversion losses
It is very common to analyze the effectiveness of the negotiation and sales process, for example, by converting between stages. The contact, or leader, as some companies like to call it, goes through several stages until a contract is awarded. Where is the biggest loss? The sales process can consist of Call > Meeting > Offer > Contract. If the majority potential clients drop the offer step, it's likely to have more important bottlenecks.
b) Waste of time
Some processes do not have conversion between stages, such as closing accounting. However, these are processes that must meet a deadline in the monthly or yearly schedule of companies. In this activity, you can identify bottlenecks by the duration of each step. For example, it is very common to realize that the finance team spends a lot of time identifying accounts in other areas when it comes to bank reconciliations. In this case, the PDCA cycle can ideally act as a bottleneck for communication between areas.
c) loss due to waste
In processes related to the production of products, efficiency is usually measured by the waste generated at each stage. Measuring the steps that generate the most losses in that direction, and acting on the bottlenecks that lead to this, is another hypothesis for using the PDCA cycle.
Stages of the PDCA cycle
Having passed this preliminary stage, we have actually entered a cycle. It consists of four steps. It:
1. Planning - from the English "Plan"
The first step in the PDCA cycle is to draw up plans to eliminate bottlenecks, which are eliminated as expected in terms of the goals of the organization and the process under consideration.
When expectations are set early in the management process, the consistency, consistency, and accuracy of the implementation of the set of elements is itself objective. It's interesting to start small and monitor to test for effects.
At this stage, you can identify changes in the way things are done, involving more or less people, and using supporting tools. It's important to think about the small tests that can be done from these resolutions before looking at big changes in the company as a whole.
2. Performance - from English "Do"
In fact, this is the phase that covers most of the “hands-on-hands” of the PDCA methodology. In which all - and each - of the plans identified in the first stage must be carried out. Data collection should also be done at this stage - although this information is only used in later stages.
3. Confirmation - from the English "Check"
Now is the time to take a deep dive and analyze the data collected in Do. Based on this, a fairly accurate comparison can be made of what was received and what was expected at the planning stage. Differences must be taken into account - whether positive or negative, in order to critically analyze the entire process.
4. Action - from the English "Act"
In the last step of the PDCA method, all possible measures will be taken to correct the route and possible distortions that have deviated from the expected results in order to determine the causes.
If there is nothing to improve, the methodology can be a little more detailed in order to put into practice possible improvements at the time of repeating one of the stages.
There are usually two possible outcomes in the Act step. First, it must be acknowledged that the cycle worked in terms of eliminating bottlenecks. Therefore, the proposed changes should be implemented and incorporated into the culture of the company. The cycle must be done again, looking at other processes or bottlenecks.
The second possible outcome is the realization that the proposed plans have not eliminated the perceived bottlenecks, probably due to errors in diagnostics. In this case, the cycle must be repeated, focusing on the same process or bottleneck. If the responsible team does not feel that the process is mature enough.
The PDCA Quality Cycle is an abbreviation for the process approach to business management. It was developed by W. Shewhart in 1939. and then finalized by E. Deming when implementing the Total Quality Management (TQM) system in Japanese companies.
E. Deming formulated the formula for business success: ensure quality and raise quality. If you are working on continuous quality improvement, it means that you are constantly working on process that creates this quality.
The Deming Cycle (PDCA) is the work of continually improving a business.
As applied to sales management, you are working on continuous improvement at each stage. sales process.
The Deming cycle model (PDCA) consists of 4 elements, each stage contains certain actions. Stages are closed in a cycle.
Since there is no end to the cycle, PDCA activities must be repeated over and over again in order to continually improve the process.
PDCA is the concept of management, its style. When applied to sales, this is the continuous implementation of improvements in sales process.
DEming CYCLE (PDCA): WHEN TO IMPLEMENT
If your sales team is not yet "living" according to the PDCA model, implement it in the following situations:
- When sales drop*** You have audited the sales system, made a SWOT analysis, chosen a sales development strategy, formulated SMART goals, developed an Action plan and are starting to implement it. Implement changes only along the PDCA improvement cycle. You will achieve a quality result many times faster.///
- When you implement new tool sales***You are implementing a CRM system or sales scripts, launching a new sales channel or motivation system - any implementation of changes will not go smoothly and immediately. Follow the PDCA cycle to identify a system error in a timely manner and correct it.///
- When you work with key clients***In the process of attracting and serving key strategic customers (VIP, A+ and A categories), plan your actions according to the steps of the PDCA cycle. It will keep you within the framework of continuous quality improvement: the approach to the client will definitely change from "shipment on request" to "constant attention and development of the client." A key customer will never leave you for a competitor.
The Deming Cycle (PDCA): PLANNING
PLANNING
In this step, you formulate a goal, make assumptions, and develop theories. Determine the result and the method of its measurement, develop an Action plan to achieve it.
During the planning stage of the Deming cycle, you make a plan - what exactly you plan to achieve.
On the one hand, you are dealing with a business process, and you are aware of a bottleneck that needs to be improved. It could be an operational component or something about your product and/or service.
On the other hand, you are constantly testing your analysis and forecasting the development of the situation. To what extent can you accurately diagnose and describe the problem? How accurately can you evaluate your achievements? What problems may arise during the work, and which of them could not be foreseen?
The planning stage in the Deming cycle is an attempt to analyze and understand the work of your department or business as accurately as possible.
You analyze what is wrong with the product, with the sales strategy or sales methods. Trying to figure out what changes you can make. And what results can improve the process.
Your actions in the Deming cycle during the planning stage:
- Specify the purpose of the change;***
- Determine the causes in the current state that prevent the system from achieving the goal;***
- Determine the baseline measurements of the existing process;***
- Understand the causes that make up the problem;***
- Decide what needs to be changed to fix the problem;***
- Develop a change plan.
DEMING CYCLE (PDCA): INTRODUCTION
INTRODUCTION (DO)
At the Do stage, conditions are created and necessary training or additional support to complete the plan. It is important that the sales/marketing departments fully understand the goals and the plan and agree on the procedures required to complete the plan. The work is then carried out in accordance with these procedures.
- Implement changes in a trial form: start with a little testing;***
- Make changes in multiple iterations if necessary;***
- Document what you learned, both expected and unexpected.
At this point in the PDCA cycle, Deming is suggesting more than just making a decision and suddenly rethinking and redesigning all the operations of the process.
It is very important to implement changes in iterations, watching how your hypotheses are confirmed or refuted.
It is as if you are conducting a scientific experiment - this is the key to success and achieving quality in the Deming cycle.
The Deming Cycle (PDCA): A STUDY
CHECK OR STUDY
The Study phase is more than just a Check.
You need to check the results and study them. It is important for you to understand at this point in the Deming Cycle whether the process has improved and why it has improved.
If the outcome is not what you predicted, you need to understand why you failed to anticipate that outcome.
At this point in the PDCA cycle, it's important for you to ask yourself not just "Did it work?" but "Why did it work?".
In managing the sales department at this stage of the Deming cycle, you perform the main analytical actions: analyze the collected sales statistics, evaluate the result, and make a forecast.
This stage is the main one in the PDCA cycle: the better you study the result, the higher the probability of further accelerating the implementation of changes and avoiding mistakes.
Your actions at the Check-Study stage:
- Analyze data;***
- Compare data with forecasts;***
- Summarize what was learned from the trial;***
- Proceed to full implementation if the results are acceptable, or return to the PLAN phase.
DEMING CYCLE (PDCA): IMPACT
IMPACT (ACT)
At this point in the Deming cycle, you implement the recommended changes. You fix the bugs you find. Consolidate the acquired knowledge in regulations and standards, specifications and instructions.
At this point in the cycle, you are laying the groundwork for moving into the next PDCA cycle, the planning stage.
- Standardize the changes received during the implementation process.
- Complete the data analysis and check for the target.
- Install the process/controls required for monitoring.
- Maintain improvement over time.
- Determine when the next improvement cycle is needed.
All the new results that you have achieved in the Deming cycle after their implementation will again create the prerequisites for new bottlenecks that you can improve.
You will start a new PDCA cycle all over again.
DEMING CYCLE (PDCA): APPLICATION EXAMPLES
EXAMPLE #1: SALES PLANNING
At the stage planning when forming sales plans you have studied the market, made a forecast for each segment of the client base, used the SMART methodology and set, decomposed your goal, calculated performance indicators KPIs, put them into the system material motivation, held a meeting and prepared the team for the fact that it starts new stage development and works according to new plans.
Further, within 2 weeks, according to the next stage of the Deming cycle - Implementation– you implement planned indicators and control their implementation, collect analytics. At this stage, you develop a vision and understanding of bottlenecks and gaps. But in order to formulate the right decision regarding the actions that you must take in order to correct the original plans, you must go to the next stage - Analysis / Study / Education.
Stage 3 of the Deming Cycle The study- Conduct a weakness analysis. Where did you make a mistake in the forecast? What can be done so that the planned plan is still carried out by the sales department? What resources are needed for this?
You study the implementation of sales plans. Compare the results with the forecast. If deviations are found, investigate the causes to prevent their recurrence.
You are forming in and identifying and understanding bottlenecks in the marketplace, sales process, or sales techniques that prevent you from meeting your sales targets.
At this point in the Deming Cycle, you are developing an understanding of the sales interventions that will help you achieve your goals. this plan sales. Or correct it.
At the impact stage Deming cycle, you implement adjustments to the conditions for fulfilling sales plans. This may be a change in the structure of the department, adjustment of the distribution of client segments by managers, tightening operating mode and so on .
Eliminate quality losses with sales techniques. If successful, then leave the sales plans the same, if not, then adjust them downwards.
EXAMPLE #1: NEGOTIATIONS WITH A CLIENT
A very important practice of introducing new skills active sales on your team. This method has been repeatedly used in
After training sales managers, implement "double meetings" - a visit to the client with a mentor. The mentor works with the supervised manager strictly according to the Deming cycle.
The mentor performs the following actions in preparing, conducting negotiations and analyzing the results after the meeting:
- Planning: before negotiations with the client The mentor instructs the manager to prepare for the meeting and according to a special algorithm given to the sales manager at the SPIN sales training, he instructs him to report on the goal of the negotiations and the strategy for achieving it 30 minutes before the meeting. At this stage of the Deming cycle, sales success is laid.///
- Implementation: in negotiations with the client, the sales manager and the Mentor implement the negotiating strategy agreed upon at the Planning stage. At this stage of the Deming cycle, the seller makes mistakes.///
- Education: immediately after the negotiations, the mentor and the manager analyze the course of the meeting and its result using a special algorithm. At this point in the Deming cycle, the mentor teaches and the salesperson recognizes mistakes.///
- Impact: at the evening debriefing, the sales manager reports to the sales team on the result achieved, reports what circumstances contributed to the achievement of the goal or hindered it, what methods of negotiating and influencing the client should be improved and what resources the manager and the sales department have for this, takes on commitment to these improvements. This stage of the Deming cycle reinforces new sales skills.
This method of using the Deming cycle has shown excellent results in teaching salespeople complex selling techniques in complex long cycle deals.
Thanks to the PDCA techniques of the Deming cycle, ROP reduces the time spent on training the entire department. The process of implementing changes in training and consolidating active sales skills is very effective.
The Deming cycle has no end, it is a continuous cycle of improving the sales process, strengthening the customer base, improving sales techniques.
Adhere to the Deming Cycle Algorithm (PDCA) to continuously improve the sales process and increase sales.
You have learned what elements the Deming Cycle Management Principle (PDCA) contains and how to apply it to sales management.