Review this Slideshow and pay particular attention to the re-productive section. This is a description of incremental improvement or PDCA.
I cannot over-emphasize the importance of the Check stage of PDCA or the feedback mechanism that you use in the iteration. James O. Coplein, author of the Lean Architecture: for Agile Software Development states, “A good feedback cycle has the appearance of causing problems. It will cause emergent and latent requirements to surface. That means rework: the value of prototypes is that they push this rework back into analysis, where it has more value. And most important, good end user engagement changes end user expectations. It is only by participating in a feedback loop that’s grounded in reality that customers get the opportunity they need to reflect on what they’re asking for. If your customer changes their expectations in the process, you’ve both learned something. Embracing change doesn’t just mean reacting to it: it means providing the catalysts that accelerate it.”
Jim’s book proved a complete framework for building a Lean culture without ever calling it that. In a podcast with him, we talked about the evolution and interpretation of Lean and/or Toyota Production System (TPS) and their relationship with Scrum. It is interesting how they complement each other. In one sense, it is interesting how Scrum is hardly more than a PDCA cycle. But on the other hand, it is an enhancement of the PDCA cycle in the spirit of teamwork and flow.
- In the first stage, Plan is defined as companies connecting in a new way to bring new knowledge. This connection may have occurred through the web, conferences, experiences or research. It is the accumulation stage where the organizations share their knowledge and determine the next learning opportunity.
- In the 2nd stage, Do is defined as converting the new knowledge needed in processes, practice, material and culture to each organization. In this stage, the company intends to distribute and utilize knowledge between the experts in service, IT, supply, finance, etc. to assure value is delivered between companies. The goal is to create an all for one, one for all approach.
- In the 3rd stage, Check is the measurement of understanding. We do not only evaluate the knowledge shared but the process and workflow. Creating the flow of knowledge and optimizing the interactions typically becomes the most valued part of the interaction. Simple questions are asked such as: What are we here to do? What are we learning? Who will do what by when? How are we doing? What needs more of our attention?
- In the 4th stage, Act is the application of knowledge and interaction is transformed into competitive advantage. Utilization and re-utilization of these components on real problems and the ability to deliver the product/service as required is answered here. This cycle may only be one step in a multiple-decision-making process or at the point of a purchase decision.
It is worth repeating: PDCA should be repeatedly implemented in spirals of increasing knowledge of the system that converge on the ultimate goal, each cycle closer than the previous. This approach is based on the belief that our knowledge and skills are limited, but improving. Especially at the start of a project, key information may not be known; the PDCA provides feedback to justify our guesses (hypotheses) and increase our knowledge.