The Improvement Cycle
Operational improvements focus on the prevention of errors, eliminating defects, cost reduction and doing things faster and more efficiently.
It is best approached as a continuous process, with small, incremental steps. For example, modifying the way a product is fitted to a machine to reduce changeover time, or simplifying the process when making a hotel reservation. It does not matter if successive improvements are small; what does matter is that every week or month or quarter some kind of improvement has taken place.
Organisations use a number of models to carry out continuous improvement. One of these is known as the PDCA cycle.
PDCA stands for:
PLAN The changes that bring about improvement.
DO Small changes.
CHECK To see if the changes are working.
ACT To get benefits from the changes
PDCA is a cycle, not a process with a beginning and an end. This means that your improved business or manufacturing process becomes the new baseline and you continue to look for ways to make it even better for your organisation.
Another cycle which is frequently adapted and applied to procurement is The Experiential Learning Cycle. This is rooted in PDCA, and also promotes small, incremental steps for continuous improvement, based on your organisation’s lived experience.
The four stages are:
- Concrete experience: feel
- Reflective observation: watch
- Abstract conceptualisation: think
- Active experimentation: do
As with PDCA, this is a cycle so there is no beginning and no end. You can jump in at any point. For example, if you see something that you believe can be improved, you can move on to “Abstract Conceptualization” and think about the cause and effect.
More like this
Procurement & Supply Cycle Podcast
I talk to Chukwudi R. Uche, a Procurement and Supply Management Expert, to tell us more about the procurement and supply cycle and how ...
Ask the Expert - Contract Management Operational
In this webinar and downloads, we explore what Contract Management is, how you define and manage contractual terms, the importance of ...
Supplier Performance Management - The Interview
I am joined by Duncan, a U.K expert in procurement and supply. We are talking about managing the performance of your suppliers, and how ...
A Comparison of Covid-19 Vaccine Contracts
In early 2021 the EU suffered supply shortages of a Covid-19 vaccine from AstraZeneca. The EU indicated that the supplier was in breach ...