Digital transformations can benefit from the PDCA cycle approach
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Digital transformations can benefit from the PDCA cycle approach
The Plan-Do-Check-Act approach to continuous improvement can be applied to enterprise-wide projects , as well as incremental improvements . Big change projects such as digital transformations can benefit from the never-ending cycle of PDCA steps , but too often this is not the case .
According to Deloitte , 70 % of Digital Transformation results in failure , and even when organisations succeed , it can take them years before they are ready to compete in the digital market .
Speaking to Supply Chain Digital , Sunil Kardam , Head of Supply Chain and Logistics at data science company Gramener , says a misalignment between business goals and digital strategy is often to blame .
Kardam says : “ For example , if your ultimate business goal is to reduce inventory costs then investing in a realtime tracking platform might not be a wise move .
“ Although such a solution can provide real-time insights into shipment status and allow you to quickly identify any potential issues or delays , it will not contribute to lowering inventory expenses .”
He adds : “ If you are willing to commit to a consistent , structured approach , you can also implement a continuous improvement program that will make your supply chain operations more efficient .”
Steffes defines continuous improvement in a logistics context as being “ a proactive approach to superior customer service that prioritises the elimination of waste and relies on employee involvement to develop solutions to challenges as they arise ”.
He identifies six phases that together can result in “ incremental improvements in processes and products , with the objective of increasing quality and reducing waste ”.
These steps are built on the PDCA formula , and include :
• Assess current state
• Identify problem
• Establish target goal
• Create strategy map
• Measure effectiveness
• Celebrate successes It is that last step that is most notably different to the traditional PDCA approach , but an extremely important one , says Steffes .
114 April 2024