PDCA Cycle

AAA

DEFINITION of 'PDCA Cycle'

A four-step problem-solving iterative technique used to improve business processes. The four steps are plan-do-check-act. The PDCA Cycle can be used to effect both major performance breakthroughs as well as small incremental improvements in projects and processes. Also known as the Deming wheel or Shewhart cycle.

INVESTOPEDIA EXPLAINS 'PDCA Cycle'

The concept was originally developed by statistician Walter Shewhart during the 1930s. It was subsequently popularized by quality control pioneer Dr. W. Edwards Deming in the 1950s.

RELATED TERMS
  1. Quality Management

    The act of overseeing all activities and tasks needed to maintain ...
  2. Productivity

    An economic measure of output per unit of input. Inputs include ...
  3. Return On Assets - ROA

    An indicator of how profitable a company is relative to its total ...
  4. Human Capital

    A measure of the economic value of an employee's skill set. This ...
  5. Kaizen

    A philosophy that sees improvement in productivity as a gradual ...
  6. BCG Growth Share Matrix

    A planning tool that uses graphical representations of a company’s ...
Related Articles
  1. Options & Futures

    Find Investment Quality In The Income Statement

    Use these key attributes to uncover top-level investments.
  2. Fundamental Analysis

    The Financial Characteristics Of A Successful Company

    There are many factors that contribute to a profitable business. Find out what they are here.
  3. Investing Basics

    How To Evaluate A Company's Balance Sheet

    Asset performance shows how what a company owes and owns affects its investment quality.
  4. Options & Futures

    Find Quality Investments With ROIC

    Return on invested capital is a great way to measure the true value produced by a company. Learn to use the ROIC metric and increase your chances of finding successful investments.
  5. In recent years, companies have discovered that there are limits to the gains created by having all major business activities in one organization.
    Investing Basics

    Why do companies decide to unbundle their lines of business?

    In recent years, companies have discovered that there are limits to the gains created by having all major business activities in one organization.
  6. Investing

    How do name-brand products compete with their generic competitors?

    On April 2, 1993, Phillip Morris announced that it was cutting the price of its cigarettes to compete with the growing number of generic brands selling for much less. The announcement had an ...
  7. Economics

    The Nash Equilibrium

    Nash Equilibrium is a key concept of game theory, which helps explain how people and groups approach complex decisions. Named after renowned mathematician John Nash, the idea of Nash Equilibrium ...
  8. Investing Basics

    The Basics Of A Financial Analysis Report

    Running financial analysis on a company or industry is a key skill every investor must learn and understand how to undertake without which an ineffective financial report and investment recommendation ...
  9. Economics

    How Education And Training Affect The Economy

    Education and training benefit not only the worker, but also the employer and the country as a whole.
  10. Active Trading

    Viewing The Market As Organized Chaos

    Find out how a cat and a ladybug prove markets are both random and efficient.

You May Also Like

Hot Definitions
  1. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
  2. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  3. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  4. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  5. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  6. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
Trading Center