Steps Of The Plan Do Check Act ( Pdca ) Cycle

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PDCA Outline
Plan
The first step of the Plan-Do-Check-Act (PDCA) cycle is plan. The planning step of the cycle is extremely important and crucial to the success of the project. I undertook this exact issue as a process improvement project early on in my career and already went through the exercise of analyzing the account activity and assigning a risk score to each and every balance sheet account. At the time, there were 854 individual balance sheet accounts that needed reconciled. Currently this count has grown to 1,047, which means that an additional 193 accounts would need analyzed. The plan for this project now needs to consist of cursory review of the previously assigned accounts and a more in-depth analysis of the additional 193
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There is no reason to waste resources reconciling an account that is no longer being used. The next step of 5S that is beneficial to the process is straightening. The accounts should be straightened into broader categories, rather than looking that them individually, which saves time and is more efficient. For instance, all cash accounts should be grouped and analyzed together, as they will be handled the same. The work is not done when the sorting and straightening has been completed, nonetheless. The newly sorted and straightened list should continue to be shined, another step of 5S, on a routine basis to make sure there are no changes. As previously mentioned, the controller reserves the right to adjust the reconciliation priority at any time. New accounts are likely to be created that will need sorted and straightened and other accounts will also go inactive. 5S is an ongoing process and the sustainability is one of the S’s. The final S stands for standardize. The account reconciliation process should be standardized. Standardization and uniformity in the reconciliation process and the reconciliation work papers add to the quality of the review. It is much easier for a reviewer or auditor to check reconciliations that are prepared in a consistent fashion.
Do
The ‘Do’ step of the PDCA cycle is where the action of the project really happens. The new reconciliation schedule is implemented during this stage. As previously mentioned some accounts will continue to be
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