I was surprised to recently learn that this diagram was actually created by Deming's teacher Shewhart. Anyway a problem with these diagrams is the reader does not know where to start. Let's look at another example from NIEM (National Information Exchange Model) - this diagram is available at NIEM's website.
The labels on each of the stages of the life cycle change their orientation causing the reader to tilt and re-tilt their head. The inputs and outputs from each stage are scattered all over the outside of the circle making it difficult to know what goes into and what comes out of each stage.
Here is the NIEM diagram re-drawn to keep the words in the same orientation and a clearer representation of inputs and outputs:
If you really want to use a circle to show that the process is iterative then consider the following style:
The horizontal arrows allow the reader to see where to start and make it easier to annotate with deliverables. The circle at the end gives force to the concept of iteration.
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