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Deming PDCA Cycle Four Stages, Advantages, and Disadvantages

Deming PDCA Cycle- Four Stages, Advantages, and Disadvantages. PDSA Cycle Pros and Cons. PDSA or Deming Cycle Revolution. 4 Stages of PDCA.

Deming PDCA Cycle

Deming PDCA cycle refers to a repeated four-step management model that ensures the continuous improvement of products and services in the industry. In the 1950s, a famous management scholar Dr. William Edwards Deming, introduced the PDCA method; therefore, it is also known as the Deming Cycle or Deming Wheel. It is a famous method for solving problems to yield the highest quality results. The full meaning of PDCA is the Plan–Do–Check–Act, a four-step action method.

Apart from PDCA, it has many other names, such as the PDSA abbreviation of the Plan–Do–Check–Adjust, the Deming cycle or circle or wheel, the Shewhart cycle, and the control cycle or circle. The Plan-Do-Study-Act (PDSA) cycle is a quality improvement framework commonly used in various industries, including healthcare, manufacturing, and education.

The Four Stages of the Deming Cycle

The Four Stages of the Deming Cycle are Plan, Do, Study or Check, and Act. These are the inevitable elements of the Deming cycle.

1. Plan

PLAN is the initial step of the four-step method that identifies the problem and opportunities to suggest recommendations. In addition, it analyzes and describes the overall current situation of the project. The authority recruits a team to understand the full process of the project in this stage; they will identify the problems that need to be changed and find solutions to fix the problems. You have to find out the answers to some basic questions regarding the project. The questions are as follows;

Firstly, what is the main problem that needs to be solved in your organization?
Secondly, what kind of resources do you have now that you use regularly?
In addition, what resources do you have to have to resolve the problem?
Moreover, what is the solution that you have taken with resources?
Finally, how long will it take to analyze the problems and implement the planning?

2. Do

The DO phase is the second stage of the Deming cycle, where the testing of the solution starts to be executed to identify the results. After completing the planning step, you have to take action to solve the problems. You will apply all plans that you have taken in the first stage. Some unwanted problems can emerge in this stage, so you have to be aware to confront them. To increase your confidence level, you can apply your actions to a small arena in the project. It is a subtle way to control the situation properly as well as avoid an unpredicted big mistake. All team members stay alert at this stage to play their roles and responsibilities. In addition, you with your team members will take some initiatives mentioned below:

  • Keep a record of what happened and what happened.
  • When do you apply the planning?
  • Collect data from the planning stage.
  • Try to use a check sheet, swim lane map, and flowchart to capture data.
3. Study or Check

Study or check is probably the most important step of the Deming cycle. You must pay attention to the CHECK stage if you want to scrutinize the output that is yielded from the earlier stage. It will help you to avoid repeating mistakes and clarify the success of your planning and applying steps. This stage will allow you to audit your plan's performance; you will be confirmed whether the plan works perfectly or not.  Additionally, your team will identify the problematic portion of the project to eliminate them in the future. You would be able to discover the root cause of the problem if something went wrong. In short, this stage will assess the system's effectiveness and help you decide whether the theory is helpful or not.

Example: Appraisals or  Gap analysis.

  • In this stage, you have to answer some questions mentioned below.
  • Is the system effective or not?
  • Do you want to continue this system or need to change it?
  • Have you outlined a list including the unexpected results, failures, successes, and outcomes?
4. Act

ACT is the final stage of the system that finalizes the perfect solution to implement it. In this stage, your organization should follow adapt, adopt, and abandon factors. Adapt refers to changing and modifying the PDSA circle for the next test. Adopt indicates considering expanding the system to all departments in the organization. Abandon means modifying your full approach and repeating the PDCA circle.  In sum, it is the step of standardization that is considered standardized when goals are exceeded.

The Pros and Cons of the Deming Cycle or PDSA / PDCA

Firstly, PDSA is a simple and effective process to resolve a new and recurring problem in the industry. In addition, it is a repeated approach that will allow you to measure results without a waste of time. Moreover, it is a risk-free cycle to apply a small scale in the project; therefore, no need to change the full process if it doesn't work.

In contrast, the full process of the PDSA is slow when applying the four steps in the industry to yield the final result. It is not a straightforward execution process that can apply to urgent problem-solving issues. Additionally, you need to use some resources, including effective team members, to ensure that each circle step is directed perfectly.

The Eight Advantages of PDSA Cycle

The eight benefits of the PDSA or PDCA cycle are systematic strategy, flexibility, iterative process, focus on learning, team empowerment, evidence-based decision-making, rapid improvement, and continuous improvement culture.

Systematic Strategy

The PDSA framework offers a structured strategy to resolve problems to ensure continuous improvement. It shows the step-by-step (Plan, Do, Study or Check, Act), process to assess the improvement. We can address the complex issues and refine them in every section methodically. It allow us to follow one by one systematically.

  • Flexibility: The PDSA cycle is flexible and adaptable to a wide range of settings and industries. It can be applied to small-scale projects or larger initiatives, making it suitable for organizations of all sizes and types.
  • Iterative Process: The iterative nature of the PDSA cycle allows organizations to make incremental improvements over time. By continually cycling through the steps of the PDSA cycle, organizations can refine their processes, systems, and practices to achieve greater efficiency and effectiveness.
  • Focus on Learning: The PDSA cycle emphasizes learning and experimentation as essential components of improvement. By studying the results of each cycle, organizations gain valuable insights into what works and what doesn't, enabling them to make informed decisions and adjustments.
  • Empowerment of Teams: The PDSA cycle encourages collaboration and engagement among teams involved in improvement efforts. By involving frontline staff in the planning, execution, and evaluation of improvement initiatives, organizations empower employees to take ownership of the process and contribute their expertise and insights.
  • Data-Driven Decision-Making: The PDSA cycle relies on data and evidence to drive decision-making. By collecting and analyzing data throughout the improvement process, organizations can identify trends, root causes, and opportunities for improvement, enabling them to make informed decisions and prioritize actions effectively.
  • Rapid Implementation: The PDSA cycle enables organizations to implement changes quickly and test their impact in a controlled manner. By breaking down improvement initiatives into small, manageable steps, organizations can avoid delays and minimize the risks associated with large-scale changes.
  • Continuous Improvement Culture: The PDSA cycle fosters a culture of continuous improvement within organizations. By encouraging ongoing reflection, learning, and adaptation, organizations can create an environment where innovation and excellence are valued and rewarded.
Disadvantages of PDSA Cycle

While the PDSA cycle offers numerous benefits for continuous improvement, it also has some potential disadvantages:

  1. Time-consuming: Implementing the PDSA cycle requires time and effort to plan, execute, and evaluate improvement initiatives. For organizations with limited resources or competing priorities, the PDSA cycle may add to the workload and strain resources.
  2. Complexity: The PDSA cycle involves multiple steps, including planning, implementation, data collection, and analysis. This complexity can be daunting for individuals or teams unfamiliar with quality improvement methodologies, leading to confusion or errors in implementation.
  3. Risk of Inefficiency: In some cases, organizations may engage in the PDSA cycle without clear goals or objectives, leading to inefficient use of resources. Without proper planning or alignment with strategic priorities, improvement efforts may yield minimal results or fail to address critical issues.
  4. Resistance to Change: Implementing the PDSA cycle often requires changes to existing processes, workflows, or behaviors. Resistance to change from stakeholders, including employees, management, or customers, can impede the effectiveness of improvement initiatives and hinder progress.
  5. Limited Scope: The PDSA cycle is best suited for small-scale, incremental improvements rather than large-scale organizational change. For complex or systemic issues requiring comprehensive restructuring or transformation, alternative methodologies may be more appropriate.
  6. Data Quality Issues: Effective implementation of the PDSA cycle relies on accurate and reliable data for decision-making. However, organizations may encounter challenges with data collection, measurement, or analysis, leading to flawed conclusions or ineffective interventions.
  7. Lack of Sustainability: Improvement initiatives resulting from the PDSA cycle may struggle to sustain long-term gains without ongoing support, monitoring, and reinforcement. Without a culture of continuous improvement or organizational commitment, improvements may regress over time.
  1. Cost: While the PDSA cycle can lead to cost savings through efficiency gains or error reduction, there are also associated costs with implementing quality improvement initiatives. These costs may include training, technology investments, or hiring additional staff to support improvement efforts.

Overall, while the PDSA cycle offers a systematic approach to continuous improvement, organizations must carefully consider its limitations and potential drawbacks to maximize its effectiveness and achieve sustainable results.

The Evolution of the Deming Cycle or PDSA

The Deming cycle has been evolved from time to time to make it an effective process. I will discuss how the Deming cycle came to be and how it has evolved from time to time.

Dr. W. Edwards Deming

Deming was an American management consultant who graduated as an electrical engineer, later concentrating on mathematical physics. He has become a famous person in the Japanese industry for his work and initiatives after WWII. In addition, Dr. W. Edwards Deming got recognition as one of the most influential Japanese manufacturing industries who are not Japanese but American. He championed the work of Walter Shewhart, including total quality management, statistic process control, and renamed the Shewhart Cycle. After all, He had a great contribution to the rise of the post-war economic growth in Japan.

The Shewhart Cycle

Deming had been inspired by an American engineer Walter Andrew Shewhart who was also a physicist and statistician. In 1939, Shewhart published a book on the Viewpoint of Quality Control. It was the first book that articulated a three-stage systematic process of specification, production, and inspection. These three stages were developed to test the hypothesis of experiments. Finally, he mentioned that these stages should not go straight, but they should go in a cycle. Thus, the Shewhart Cycle came up with the process of a circle.

The Deming Wheel

In 1950, Deming analyzed Shewhart’s Cycle to modify it. He introduced a new version of Shewhart’s Cycle: a four-step of design, production, sales, and research. This cycle has been known as the Deming’s Circle or Deming Wheel.

PDCA

Some Japanese executives probably modify the Deming cycle or Deming wheel into Plan, Do Check, Act (PDCA), although the exact reason for changing the term name is unclear. This four-step cycle was introduced to identify the problems in the industry and solve them by applying four steps together. The prime objective of this cycle is to standardize if the results are satisfying.

Deming Cycle- Four Stages of Deming Cycle & PDSA Cycle Pros and Cons
Deming PDCA Cycle or PDSA Cycle
PDSA
Deming was not satisfied with the name of PDCA; therefore, he amended it in 1986. He emphasized the core meaning of checking, and he mentioned that checking is not incorporate the cycle. Hence, the PDSA emerged with the recommendation of Deming.
When to Apply PDSA

The PDSA or PDCA framework can develop any process or product by splitting it into a shorter steps. This cycle can be used in every kind of organization in many aspects such as changing management, new service or product deployment, product lifecycle, and so on. This framework is beneficial for assisting the improvement of the six sigma and total quality management process. It is the best option to dig out problems and practical solutions.

Deming Cycle or PDSA Quality Improvement

The Deming cycle is one of the essential parts of the quality improvement process in the big industry. Apart from that, organizations apply other quality improvements program that is much complex QI processes.

  • Continuous Quality Improvement: It is also known as the CQI process that organizations apply to reduce waste, increase efficiency, and increase internal and external satisfaction. It is a management philosophy that assesses how the industry works to develop its process. These more complex quality improvement programs include the following:
  • Lean: The lean process is a manufacturing program that effectively improves efficiency and reduces wasteful practices. This program focuses more on improving services and products based on customer's demands.
  • Six Sigma: The six sigma process is the set of tools and techniques that develop the quality of a process by eliminating defects and minimizing variability in manufacturing.
  • Total Quality Management: It is a process of a management system based on practicing a principle that instills good business culture where every employee maintains a high standard of work. It influences the organization to maintain a high quality of service in every aspect of the company.
  • Quality Improvement Collaboratives: It is a process that usually applies to the healthcare center in which many organizations work together to develop services for patients.
Conclusion

Deming cycle refers to a repeated four-step (PLAN, DO, STUDY, ACT) that ensures the continuous improvement of products and services in the industry. Today, many organizations worldwide use this method to improve the product and service by solving problems.

Demographic Geographic Psychographic Market Segmentation Factors

Demographic Geographic Psychographic Market Segmentation. The 3 Basic types of market segmentation are Demographic Segmentation, Geographic Segmentation & Psychographics Segmentation. Also, Customer Profile Demographics Psychographics Geographics. Target Market Segmentation Theories- Maslow's Hierarchy and VALS Segmentation Model in Consumer Behaviour.

Demographic Geographic Psychographic

Demographic Geographic Psychographic segmentation refers to the market segmentation technique based on the different factors related to the audiences. These are the most effective strategies to divide people into an identical subgroup. The purpose of demographic, geographic, and psychographic segmentation aims to separate people into subgroups to regulate a political campaign, commercial marketing, and advertising.

Market Segmentation

Market segmentation separates people into similar subgroups based on geographic, demographic, and psychographic factors. It is an essential process for social, political, and commercial campaigns and advertising. It is an excellent way of sending messages to a targeted group of people rather than everyone.  A long time ago, audience segmentation was primarily applied for social and political campaigns. Nowadays, it has become trendy in market segmentation. Therefore, audience segmentation is known as market segmentation.

Market Segmentation Examples

For example, a political leader is conducting a campaign asking to vote for his political party. So, the leader targets the voters only to conduct the campaign. In many countries all over the world, the minimum age for being a voter is eighteen years. For example, in the USA, citizens can vote in any public election who are a minimum of 18 years old or older than 18 years. So, the political leader persuades citizens of the constituency an age minimum of 18 years. Here, a citizen of the constituency refers to the habitant of a particular area which is also an example of a geographic factor of market segmentation. Similarly, age is an example of demographic characteristics of market segmentation.

Demographic Geographic Psychographic
Demographic Geographic Psychographic Market Segmentation Variable
Demographic Geographic Psychographic Market Segmentation Factors
Types of Market Segmentation
The 3 Types of Market segmentation are
  1. Demographic Segmentation
  2. Geographic Segmentation
  3. Psychographic Segmentation
Demographic Segmentation

Demographic segmentation refers to the process of separating people into similar subgroups based on demographic factors such as age, gender, ethnicity, education, religion, economic status, and group membership.

For example, a political organization is dividing people based on age. They are looking for voters whose age is more than 18 years. It is an example of demographic segmentation. Demographic questionnaires are crucial to conducting survey and market research.

Demographic Factors

The demographic factors are a set of audiences' characteristics, such as age, gender, ethnicity, education, religion, etc.

The demographic segmentation factors are Age, Gender, Ethnicity, Education, Religion, Economic status, Experience, Group Member, Nationality, Marital Status, Employment Status, Family Status, and Living Status.

Examples of Demographics in Marketing

Demographic Market Segmentation Factors

Geographic Segmentation

Geographic segmentation means separating people into similar subgroups based on geographical factors such as residence, climate, and population. It highlights the location and environment of the audience.

Geographic Factors

The Geographic Factors are Place of residence, Season and Climate, and Population.

Place of Residence

Place of residence refers to rural and urban areas where the audience lives permanently or temporarily. People from urban and rural areas are different in their lifestyles, such as dress up, outlook, and attitudes. Therefore, market segmentation is essential before starting an advertising or social campaign.

 Season and Climate

Season refers to a specific time of year categorized by a particular climate condition. For example, the United States has four seasons, including Autumn, Spring, Summer, and Winter.

For example, Ice cream companies earn more money in the summer season than in winter. In contrast, the blanket-selling company focuses on the winter season for marketing. The company needs to focus on geographic segmentation for the advertising campaigns.

Population

Population means the inhabitants of a particular area; for example, the capital city, metropolitan city, or small town. However, they imply almost similar characteristics but have some differences too.

Psychographic Segmentation

Psychographic segmentation separates people into similar subgroups based on psychographic factors such as values, beliefs, attitudes, and behaviors. These factors indicate the internal mental characteristics of people.

Psychographic Factors

The four psychographic factors of market segmentation are values, beliefs, attitudes, and behaviors—these four factors help understand how the audiences feel and behave.

For example, a political leader's values, beliefs, attitudes, and behaviors are definitely distinguished from a physician's.

Example of Psychographic segmentation

For example, You may feel that giving blood is important (Attitude) because an adequate blood supply is necessary to save a life (Belief) and because you respect human life (Value). Your (Behavior), as you participate in the blood drive and donate blood, is a logical and observable extension of your

 Values

Firstly, values mean a judgment of what is right or wrong, desirable or undesirable. For example, most people share equality, freedom, honesty, fairness, justice, good health, and family. Another example, we respect human life naturally (Value).

Beliefs

Secondly, a belief is something you accept as true, and it is stated as a declarative sentence. For instance, students believe that the use of the internet improves the quality of students' research. Furthermore, You may feel that giving blood is important because an adequate blood supply is necessary to save a life (Belief).

Attitudes

Thirdly, an attitude is a statement expressing an individual's approval or disapproval, like or dislike. Usually, attitudes evolve from our values and beliefs. Many values and beliefs interact to complicate our decision-making.  For example, You may feel that giving blood is very important (Attitude).

Behaviors

Finally, Behavior is an individual's observable action. It is the way of how we act or behave toward others. It is the combination of other psychological factors such as values, beliefs, and attitudes.

For example, You may feel that giving blood is important (Attitude) because an adequate blood supply is necessary to save a life (Belief) and because you respect human life (Value). Your behavior is a logical and observable extension of your outlook as you participate in the blood drive and donate blood.

Advantages and Disadvantages of Psychographic Segmentation
Advantages of Psychographic Segmentation
  1. Deeper Understanding of Customers: Psychographic segmentation provides a more comprehensive understanding of customers beyond basic demographic information like age and income. It helps marketers understand what drives consumer behavior, preferences, and purchasing decisions.
  2. Targeted Marketing Communications: By segmenting the market based on psychographic variables, marketers can tailor their messaging and communication strategies to resonate with specific consumer segments. This personalized approach increases the relevance of marketing efforts, leading to higher engagement and response rates.
  3. Enhanced Product Development: Psychographic segmentation enables companies to develop products and services that align with the needs, preferences, and lifestyles of different consumer segments. By catering to the unique desires and aspirations of target customers, companies can create offerings that stand out in the market and generate greater customer satisfaction.
  4. Improved Customer Retention: Understanding the psychographic profiles of customers allows companies to build stronger relationships and loyalty. By delivering personalized experiences and addressing the values and interests of customers, companies can foster deeper connections and increase customer retention rates.
  5. Effective Market Positioning: Psychographic segmentation helps companies identify niche markets or segments with distinct needs and preferences. By positioning their products or services to address the specific desires of these segments, companies can differentiate themselves from competitors and gain a competitive advantage in the market.
  6. Increased Marketing ROI: Targeting specific psychographic segments allows companies to allocate their marketing resources more efficiently. By focusing efforts on segments most likely to respond positively to their offerings, companies can optimize their marketing ROI and achieve better results with less expenditure.
  7. Adaptation to Changing Trends: Psychographic segmentation enables companies to stay attuned to evolving consumer trends, lifestyles, and preferences. By continuously monitoring and analyzing psychographic data, companies can
Disadvantages of Psychographic Segmentation
  1. Subjectivity and Interpretation Bias: Psychographic segmentation relies on subjective interpretations of consumer attitudes, values, and behaviors, which can introduce bias into the segmentation process. Different analysts may interpret the same data differently, leading to inconsistent segmentation outcomes.
  2. Limited Generalizability: Psychographic segments may not generalize well across different markets or demographics. Consumer preferences and behaviors can vary widely based on cultural, regional, or temporal factors, making it challenging to apply psychographic insights universally.
  3. Complexity in Data Collection: Gathering psychographic data can be more complex and time-consuming compared to demographic or geographic data. It often requires extensive market research, surveys, and analysis to uncover consumers' attitudes, values, and lifestyles accurately.
  4. Overlap Between Segments: Psychographic segments often overlap, making it difficult to create distinct and actionable segments for targeted marketing efforts. Consumers may exhibit characteristics of multiple psychographic segments simultaneously, blurring the boundaries between segments.
  5. Privacy Concerns: Collecting and analyzing personal information related to consumers' attitudes, values, and lifestyles raises privacy concerns. Consumers may be wary of sharing sensitive information, especially in light of data privacy regulations and concerns about data security breaches.
Two Market Segmentation Theories
  1. Maslow's Hierarchy of Psychological Needs theory
  2. VALS Segmentation Model in Consumer Behaviour
Maslow's Hierarchy of Needs Theory

Maslow (1943) initially stated that individuals must satisfy lower-level deficit needs before meeting higher-level growth needs. It is a well-known content theory of motivation. However, he later clarified that satisfaction of a need is not an “all-or-none” phenomenon, admitting that his earlier statements may have given, for example, “the false impression that a need must be satisfied 100 percent before the next need emerges”. According to Maslow's theory, human needs can be divided into five categories. These are physical, safety, belongings, love, esteem, and self-actualization needs.

1. Physical needs: Physical needs are basic human requirements for livelihood, for example, water, food, rest, warmth, and so on.

2. Safety needs Requirements for security and protection purposes, such as personal security, health security, employment, property, etc.

3. Belongings and love needs: Relationship with people around us for giving and receiving affection, for example, intimacy, friendship, family, and friends.

4. Esteem needs: Refers to self-confidence, self-esteem, and self-respect of humans; for example, everyone has a certain talent, so we need to pat on the back from time to time for exploring their intellectuality.

5. Self-actualization needs: Refers to self-fulfillment desiring to become the most that one can be; for example, we need our goals to feel that we have fulfilled our destiny or reached our potential.

VALS Segmentation Model in Consumer Behaviour

The VALS (Values, Attitudes, and Lifestyles) segmentation model is a widely used framework in consumer behavior research and marketing. Developed by social scientists Arnold Mitchell and S. Robert Horton, the VALS framework categorizes consumers into distinct psychographic segments based on their primary motivations, attitudes, and behavioral patterns. Here's an overview of the VALS segmentation model:

  1. Values: The VALS model identifies two primary dimensions of human values: resources and self-orientation. Resources refer to the extent to which individuals prioritize achieving goals related to self-enhancement or self-transcendence. Self-orientation relates to individuals' motivations for seeking stimulation and variety versus stability and order in their lives.
  2. Attitudes: VALS classifies individuals based on their attitudes toward innovation and change, as well as their level of openness to new experiences and ideas. This dimension reflects individuals' willingness to adopt new products, technologies, or lifestyles.
  3. Lifestyles: The VALS model distinguishes between primary and secondary motivations that drive consumer behavior. Primary motivations reflect individuals' core values and priorities, while secondary motivations are situational or contextual factors that influence behavior in specific circumstances.
Based on these dimensions, the VALS segmentation model identifies eight distinct consumer segments:
  1. Innovators: These consumers are characterized by their high levels of resources, self-confidence, and openness to new ideas and experiences. They are often early adopters of innovative products and technologies.
  2. Thinkers: Thinkers value knowledge, education, and intellectual pursuits. They tend to be rational and deliberate in their decision-making process, preferring products and brands that align with their values and beliefs.
  3. Achievers: Achievers are motivated by success, status, and achievement. They strive for material wealth and social recognition, preferring established brands and products that symbolize success and prestige.
  4. Experiencers: Experiencers seek excitement, adventure, and variety in their lives. They are spontaneous, impulsive, and open to new experiences, often seeking out novel and unconventional products and activities.
  5. Believers: Believers are traditional, conservative, and value-oriented consumers. They prioritize security, stability, and family values, preferring established brands and products with a track record of reliability.
  6. Strivers: Strivers are ambitious, aspiring individuals who seek to improve their social and economic status. They are motivated by success and recognition, often emulating the lifestyles and behaviors of higher-status groups.
  7. Makers: Makers are practical, hands-on individuals who value self-sufficiency, craftsmanship, and utility. They prefer functional, no-frills products that offer value and durability.
  8. Survivors: Survivors are cautious, risk-averse consumers who prioritize security, safety, and basic needs. They are typically on fixed incomes or facing financial constraints, preferring low-cost, practical solutions to their needs.
Conclusion

Target market segmentation has become a viral strategy for social, political, and business purposes. Now, people live in a global village as global citizens for the easy accessibility of social media. Therefore, politicians and business persons pay more attention to market segmentation for political campaigns and marketing publicity on social media such as Facebook, Instagram, Twitter, YouTube, etc.