Three types of Planning Cycles in Daily management - Mechstudytips

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Three types of Planning Cycles: 

The three types of planning cycles are:

a) Retainment cycle (Level -1)

b) Improvement cycle (Level -2) 

c) Innovation Cycle (Level - 3)


 (a) Retainment cycle:

 This is level - 1 of the planning cycles.  The Retainment cycle is what is known as Standardization.  It is represented by the SDCA Cycle  Standardization is to be practiced prior to moving to the next levels of the planning cycle, namely, the Improvement cycle and Innovation cycle.

Aim : Consistency

Objective : To provide consistent quality to customers


The PDCA process

Plan    : Establish Standards

Do      : Execute as per SOP

Check : Check for abnormality

Action : Restore process to original condition


Process Control

Control Points of SOP


Examples

Operation Standards

Control Plans

SOP's

Work Instructions, Etc.,


(b) Improvement cycle: 

These are incremental in nature and can be called Kaizens, meaning continuous improvement.  This is achieved by the process of Daily Management.  The improvements are achieved, standardized, and so on....

Aim : Kaizen


Objective : To improve the daily performance continuously


The PDCA Process:

Plan      : Establish objectives

Do         : Execute the functional strategy

Check  : Check the gap in performance - hourly/daily/weekly

Action : Take action to close the gap


Process Control

Monitoring of the checking points on an  hourly/daily/weekly


Examples:

* Reducing loss

* Increasing sales

* Improving productivity

* Reducing rejections

* Reducing cost,etc.,


(c) Innovation Cycle:

In a TQM company, the innovative plans are generally the outcome of the policy establishment.  They are spearheaded by top management When they are deployed, they become Improvement cycle and Retainment cycle at operating levels. 

Aim : Breakthrough


Objective : 

To Achieve the annual goals of the company ( breakthrough plans)


The PDCA Process:

Plan    :  Establish annual goals

Do       :  Implement annual plan

Check : Review the progress

Action : Take action to close the gap


Process Control :

Review through Policy audit

Rotation of breakthrough PDCA


Examples:

* Business diversification

* New products

* New markets

* New Plans

* Mergers and acquistions, etc.,

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