The Importance of ACT in the PDCA

The PDCA (Plan-Do-Check-Act) is one of the best-known lean methods, and one of the key philosophies for continuous improvement. However, despite its apparent simplicity, there are many struggles involved with its proper use. It seems that especially the Act part is challenging. Hence, let me dig deeper into why and how to Act in the PDCA.

Introduction

PDCA stands for Plan-Do-Check-Act, and it is the key to continuous improvement (kaizen).

• The Plan should be the biggest part. You clarify the problem, break down the problem, set a target, and do a root-cause analysis.
• The Do should be easy if the Plan has been done properly. You develop countermeasures and implement.
• In Check you monitor the process and the results.
• The Act depends on the outcome of the Check. If the targets have been achieved and the improved performance is satisfactory, you standardize and share the results. However, if you find that the results have not been achieved, then you need to redo the PDCA.

All of this combined is the PDCA, the core structure of Toyota Practical Problem Solving, no matter which of the many different PDCA variants you use.

The Challenge

The challenge is how much work and effort you invest in which part of the PDCA. The common PDCA circle representation makes it look like all parts are an equal share of the effort. However, this is not true. At Toyota, the Plan dominates the PDCA, and takes easily more than half of the time and effort. The rest are rather small, and implementing, checking, and acting are comparable efforts (albeit, if you need to order new machinery, the order delay can make the Do also quite long… but then you are just waiting for the parts to arrive).

In many Western companies, however, this looks different. There is often much too little planning, and there is a rush toward Do-ing something. This jump to conclusions is often a short-sighted jump leading to a smaller improvement, or in some cases may even make it worse. The Check is often merely a powerpoint presentation, and the Act may be missing completely.

Why Is Act So Unpopular?

Well, there are two possible outcomes of the Check phase. If the improvement project was a success, then everybody is happy, and everybody loves to talk about it, sharing the success (and looking good doing so). That is not the problem.

The problem is if the Check concludes that the project is not (yet) a success. This means that there will be a delay, and more effort is needed. Unfortunately, in the minds of many, if it is not a success, then it is a failure. And if the project is a failure, then—you guessed it—the project leader has failed. Maybe they should promote someone else?

Clearly, this is not true. First of all, if the process has not reached its goals, then more effort and maybe a different approach is needed. Sometimes projects don’t work out in the first try (and sometimes not at all). There is no company where all projects always succeed. And if there is, then they either have really shitty goals, or (more likely) the reporting is full of lies, data manipulation, and selective truths.

The same applies to the project manager (or in general any manager). If you do something, sometimes it will go wrong. This is especially true in management, where there is often a lack of hard data and a lot of uncertainty in the outcome of the actions. That is just a fact of life, and a valid learning opportunity. If a manger never fails, then he is (most likely) lying through his teeth, fudging the numbers, and blaming others for mistakes. Are you sure you want to promote these managers and create a corresponding corporate culture? (See also my post Visit the Shop Floor or Your People Will Fool You! – Genchi Genbutsu.)

Unfortunately, in many companies having a failed project, even if it is only delayed, is seen as a negative point and can hinder a career. Every company gets the managers they deserve.

However, this (perceived) negative outcome (basically a delay) makes the Check and the Act so unpopular.

Why ACT Is So Necessary!

As mentioned above, sometimes projects do fail (at least on the first try). You could just pretend nothing happened and that it was a success, but this won’t help your company. Hence, the Check is needed to see if it truly works. (Hint: go to the Gemba, the shop floor!) And, if it did not work, then you need to Act and put in more effort, analyze the situation again (i.e., Plan), develop and implement countermeasures (Do), check if it worked on the second try (Check), and then Act depending on the result of the Check. Now, go out, Check and Act on your improvement projects, and organize your industry!