To run a successful and competitive warehouse, you need to improve your flow and organization constantly.
I often meet warehouse organizations with ambitions working with continuous improvement. However, what often happens is they are stuck in “analysis paralysis” they do not have the courage for several reasons to implement suggested solutions in production. This can be due to several reasons. It is common that organizations have a culture who have too much focus on failure instead of highlighting success. Warehouse management becomes unsecure and try to analyze too much in theory before implementing change.
It is important to understand you can´t analyze every improvement in theory before implementing in production. Even if you have a university degree, it is impossible to predict the consequences. That is why PDCA is the perfect tool for warehouse logistics.
PDCA (plan–do–check–act or plan–do–check–adjust) is an iterative four-step management method used especially in production environments for continuous improvement and quality work. Concept of PDCA is based on the scientific method developed from the work of Francis Bacon (Novum Organum, 1620). The scientific method is often written as “hypothesis–experiment–evaluation” or as “plan–do–check”. The fundamental principle of PDCA is iteration, once a hypothesis is confirmed (or negated), executing the process again will extend the knowledge further. Repeating the PDCA cycle can bring its users closer to the goal, usually a perfect operation and output.
PDCA stimulates critical thinking and involves all people in the organization from the floor to the top. You want warehouse staff to have a critical thinking and try new things in the warehouse production in order to have continuous improvement. The warehouse assistants is the real experts in the warehouse flow. In order to stay ahead of the competition you want a problem-solving culture with innovation mindset.
When PDCA is used for more complex or business critical operations, checking with senior management should happen before the Do stage, since changes to projects that are already in detailed design can be costly; this is also seen as Plan-Check-Do-Act. This is important to remember and need to be clearly communicated in the whole organization.
PDCA is very simple but that is what I like about it. It reminds me of “trial and error” but in a scientific approach.
- Plan – Study and analyze the current process on the floor. Often the person performing the process already done this and have a suggestion for improvement.
- Do – Carry out the objectives from the previous step. After having a standing meeting the management and staff decides to try the proposal.
- Check (or study) – The check phase is very important, now you evaluate the change. Do you see any positive effects in KPI as you expected? It can be efficiency or quality for example. Compare historically data with current. Talk to the staff performing the process. You cannot measure everything; there can be ergonomic side effects and so on. Two-way communication is essential. Remember the PDCA cycle is iterative look at the process again maybe there is things you need to “fine tune”. If you do not have the expected outcome return to step one.
- Act (also called adjust) – This is where you implement your solution and standardize the process with documentation like manuals for example. However I say again, remember that PDCA/PDSA is a loop. The improved process is the new baseline for more future improvements.
This is continuous improvement when it is best! PDCA is a simple and educational tool that fits perfectly in warehouse logistics. It involves people and make the staff feel ownership. You take advantage of the expertise closest to the processes in the warehouse flow. It is a system for building critical thinking. A culture with this mindset is more able to innovate and stay ahead of competition.
With e-commerce and omni-channel in warehouse logistics, you need all improvement and innovation you can get.
Roberth Karlsson