a3 management - from structured problem-solving to workplace development (part 1 of 2)

A3 Management: From Structured Problem-Solving to Workforce g

Development

Part I 0f II

Company

LOGO

Why is problem-solving so challenging?

It takes a different kindIt takes a different kindof thinking to solve aproblem than the kindof thinking that producedof thinking that producedthe problem.

-- Albert Einstein

© 2011 Karen Martin & Associates 2

Deming’s PDCA Cycle

PlanDevelop

hypothesis & design

experiment

DoAct Conduct experiment

Analyze results & take DoAct experimenttake appropriate action

© 2011 Karen Martin & Associates

Check Measure results

What is A3?

The core of Toyota’s renowned management systemsystem.

A structured method for applying the PDCA (plan-do-check-act) approach to problem-(plan do check act) approach to problemsolving.

International designation for 11 x 17” paper.


For Further Study

Sample A3 ReportPlan Do, Check, Act

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The A3 Report

A concise “story board” that reflects the problem solver’s discoveries and thought process along the waydiscoveries and thought process along the way. Limited “real estate” develops precise thinking.

A “living document” that reflects the iterative nature ofproblem solving and enables organizational learningproblem-solving and enables organizational learning.

Highly visual – graphics, charts, maps, drawings, etc. “Making it pretty” isn’t the goal – hand drawn A3s are OK Making it pretty isn t the goal hand drawn A3s are OK. Neither the format nor the specific sections are set in

stone. Beware of using “templates.” Serve the iterative nature of the problem-solving process.


The A3 Report Should Reflect the Process


George Koenigsaecker, Leading the Lean Enterprise Transformation.

Benefits of the A3

Creates consistency in how the organization goes about solving g g gproblems.

Builds problem-solving capabilities across the entire organi ationacross the entire organization. Trains everyone how to drill complex

problems down to their most essential l telements.

Forces a holistic/comprehensive view of the problem and solutions; requires p ; qcollaborative problem-solving. Reduction in “silo-ism”

Th h t l d


Thorough root cause analyses reduce the risk of “band-aid” solutions.

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Benefits of the A3 (continued)

Ownership role drives accountability and reduces risk of “it’s everything else’s problem ”it s everything else s problem.

Stimulates data-driven decisions. Fairness and accountability replace blame and deceit. Fairness and accountability replace blame and deceit. Transparency re: problems spawns a commitment to

action. Develops deep organizational capabilities.


Problem-Solving Steps

1. Identify the problem2 E l th bl d l

Plan2. Explore the problem deeply

What’s the true root cause?3 Consider potential solutions

At least 50% of

th t t l 3. Consider potential solutions Hypothesize

4. Test solutions

the total time

4. Test solutions Confirm hypothesis

5. Implement solution(s)Do6. Measure results

Did the hypothesis prove out?Check

A© 2011 Karen Martin & Associates

7. Adjust as needed; prepare to improve again

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Act

Common Components of the A3 Report

Theme: Owner:

Plan Do, Check, ActTheme: ________________________________ ________________________________

Background Countermeasures / Implementation Plan

Current Condition

Effect Confirmation

Target Condition / Measurable Objectives

Follow-up ActionsRoot Cause & Gap Analysis

A3 Roles & Responsibilities

Problem owner Individual who’s accountable both for

the results and the process for achieving results.achieving results.

Problem owners have the authority to engage anyone needed and the

ibilit t ll l tresponsibility to engage all relevant parties.

CoachCoach Person teaching the owner the problem-

solving process.


Typically the owner’s direct supervisor.13


Theme: Owner:

Plan Do, Check, Act

Theme: ________________________________ ________________________________


Current Condition

Effect Confirmation



Coach / Mentor’s Role

Assure problem is relevant to the organization’s annual business goals. Focus resource use on the relevant few rather

than the trivial many problems.


The A3 Process: Define the Theme

What is our area of focus?Articulating the right theme will force you to

focus on the right problem.Should be closely aligned with organizational

goals to avoid spending limited time and resources on trivial issuesresources on trivial issues.

Avoid judging, concluding re: cause, or offering solutionssolutions. E.g.: Flawed order entry process vs. Streamline order

entry process


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Theme: “What is our area of focus?” Owner: Person accountable for results.

Plan Do, Check, Act

Theme: What is our area of focus? Owner: Person accountable for results.

Background Countermeasures / Implementation Plan• What?

• Who?

• Problem statement

• Context - why is this a problem? (visual)

Current Condition

Who?

• When?

• Where? (if relevant)

Di f t it ti

Context why is this a problem? (visual)

Effect Confirmation

• Diagram of current situation or process

• What about it is not ideal?

• Extent of the problem (metrics)• What measurable results did the solution

Target Condition / Measurable Objectives• Diagram of desired state

• Measurable targets – how will we know that

achieve (or will be measured to verify effectiveness)?

• Who’s responsible for ongoing measurement?

Follow-up Actions

gthe improvement has been successful?

Root Cause & Gap Analysis • Where else in the organization can this l ti b li d?• Graphical depiction of the most likely direct

(root) causessolution be applied?

• How will the improved state be standardized and communicated?

The A3 Process:Background

Include a problem statement State the problem; do not offer a solution State the problem; do not offer a solution

Background – information for understanding the importance and extent of the problem.

H d th bl l t t l ? How does the problem relate to company goals? How was the problem discovered? How long has it

been a problem?’ ? What evidence demonstrates that there’s a problem?

What degree of variation exists currently compared to a previous state?

Tailor information for the audience.Present information visually.“S ll” th d f i t t f


“Sell” the need for improvement; create a sense of urgency.

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Sample Background Material

sss

Gray – highest industry quality scoresP l i d t lit (b h k)

FY 2008 FY 2009 FY 2010

Purple – average industry quality scores (benchmark)Blue – client quality scores

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Sample Background Material

0

00

21


Ask probing questions to assure proper background has been obtained and depicted as concisely as possible. Aiming for emotional impact – why is this a

problem?Don’t tell the problem owner what to

include!Teach visual display options is owner is

unfamiliar with them.u a a t t e


Potential Development Need

Become proficient in visual data display options: Bar charts Histograms Trend / line charts Pie charts Pareto charts Etc.




Plan Do, Check, Act



• Who?


• Context - why is this a problem?

Current Condition

Who?

• When?


Di f t it ti

Context why is this a problem?

Effect Confirmation








Follow-up Actions





The A3 Process:Current Condition

Two primary goalsP id th di ith i f th t Provide the audience with an overview of the current process.

Demonstrate a fact-based understanding of the problem.Content

Provide a visual overview of the current state process or system (strong use of charts maps graphs tablessystem (strong use of charts, maps, graphs, tables, photos, etc.).

Highlight key factors in the current state. Provide evidence of the problem (data)

Avoid qualitative opinions. Avoid suggesting solutions or judging


Avoid suggesting solutions or judging.

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Plan Do, Check, Act



• Who?



Current & Target Conditions

Who?

• When?


I l d d t t i t bl


Effect Confirmation

• Include pre- and post metrics table

• What measurable results did the solution

Metric Current State Desired Target Condition

Projected % Improvement

Lead Time

Quality

Labor Effort



Labor Effort

Morale/Turnover

Inventory Turns

Market Share

Follow-up ActionsRoot Cause & Gap Analysis • Where else in the organization can this

l ti b li d?

Returned Parts

• Graphical depiction of the most likely direct (root) causes

solution be applied?



Ask probing questions to assure relevant metrics have been selected. 3-5 key performance indicators How will we know if we’d been successful?

© 2011 Karen Martin & Associates27

Current State Documentation Options

Go to the gemba! – OBSERVE P f / dit d t Performance / audit dataMapping

Value Stream Maps (VSM) - strategic Value Stream Maps (VSM) strategic Metrics-Based Process Mapping (MBPM) – tactical

Spaghetti diagrams Documentation / job aid review Videotape / photosW k i t iWorker interviewsWork samples Etc


Etc.

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Sample A3s – Current State

Poor correspondence p

quality

Missing inventory

resulting inresulting in write-offs



Plan Do, Check, Act



• Who?



Current Condition

Who?

• When?


Di f t it ti


Effect Confirmation








Follow-up Actions





The A3 Report:Targets / Measurable Objectives

Purpose How will we know that the improvement has been

successful? What standard or basis of comparison will be used? What standard or basis of comparison will be used?

Pointers Use measurable objectives when possible Use measurable objectives when possible. Consider how data will be collected and shared to

evaluate the effectiveness of the implemented solution(s). Begin planning for the Effect Confirmation section, but don’t

focus on it yet.


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Target Condition vs. Effect Confirmation

When setting target metrics, begin thinking how you’ll confirm performance (effect confirmation section). Who? How frequently? How?



Ask probing questions to assure target condition meets business needs.It’s better to set stretch objectives and not j

quite reach them than set objectives that you’re sure you’ll hit.y y




Plan Do, Check, Act



• Who?



Current Condition

Who?

• When?


Di f t it ti


Effect Confirmation








Follow-up Actions





The A3 Report:Root Cause Analysis

Show the root cause of the problem(s) identified i th t t tin the current state.

Separate symptoms and opinions from cause-d ff t d t i tiand-effect determination.

Consider which techniques will be most useful in gaining root cause insightgaining root cause insight.

Identify additional tests, if needed, to establish level of certainty re: cause and effectlevel of certainty re: cause and effect.

Summarize your findings visually.


Root Cause Analysis


Root Cause Analysis (RCA)

RCA is necessary to: Avoid jumping to conclusions. Avoid creating “band-aid” fixes

(addressing only the symptoms)(addressing only the symptoms). Select proper countermeasures. Design and implement lasting Design and implement lasting

solutions that truly eliminate the problem.


Root Cause Analysis Tools

Simple problems Five Why’s Problem Analysis Tree

More complex problems Brainstorm causes (fishbone) If Brainstorm causes (fishbone) Tally frequency of most likely causes

(check sheet)

If necessary

( ) Identify relevant few (Pareto analysis)

for countermeasure development


p

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Five Why’s ExampleProblem: Report is taking too much of an employee’s time;

1. Why is the error report being prepared?

Problem: Report is taking too much of an employee s time; team questions whether the report is needed

1. Why is the error report being prepared? My supervisor told me to.

2. Supervisor – Why are you asking for this report?One of the standard reports to be prepared per my One of the standard reports to be prepared per my predecessor – I have yet to determine its usage.

3. Predecessor – Why did you initiate this report? Report was required in the past because personnel in

order entry were making data input errors.4. Data entry – Why were orders being input with errors?

Orders received via fax were blurry and hard to read. 5. Data entry - Why were the fax orders hard to read?

Fax machine was old and of low quality. It was replaced q y p10 months ago and errors no longer are occurring.

Problem Analysis TreeProblem: Documents are not being translated well and on time

Lost docs*

In physical transit

In cyberspace

In in-basket

No tracking

Large batches

Late or poorly

In out-basket

Poor original

Confusing formats

Faxed / poor resolution

Late or poorly translated documents

Translation

Translator doesn’t understand original

original

Translator skills

Random vocabulary

Selection

problems** Translator understands

original, but still poor translation

skills

Wrong technical

vocabulary

Lack of training

No standard

Training

poor translation vocabulary

Poorly expressed

No standard

Unclear expectations

Poor editing

* Lost and found = 40%; lost & never found = 5%; stuck in system = 55% ** Rework on over 50% of documents

p

Uneven workload

Cause-and-Effect Diagram (aka Fishbone, Ishikawa)

Brainstorming tool used to identify most likely causes for an undesirable effectcauses for an undesirable effect

Explores potential causes in 6 categories (6 M’s): People (“Man”) People ( Man ) Material/Information - Inputs used in the process Method - Procedures, work instructions, processes Machine - Equipment, computers, tools, supplies Measurement - Techniques used for assessing the

quality/quantity of work, including inspectionq y q y , g p Environment (“Mother Nature”) - External & internal

Use other categories if appropriate


Cause-and-Effect Diagram (continued)

Effective brainstorming tool Forces teams to consider all possible causes

Decreases the likelihood that something is being l k doverlooked

Shows us the possible causes, but not how much each contributes if at all to the problemmuch each contributes, if at all, to the problem

Does not provide solutions / countermeasures


Cause-and-Effect Diagram

People Material / Info Method

Lack of experience No stnd spread sheet Changing scheduleLack of experience

Time availability

No sense of import

No stnd spread sheet

No standard work

Input rec’d late

Changing schedule

Budgets Submitted Late

Email vs. FedEx

Forecast in other system

Manual vs. PC No milestones Weather delays

M hi M t E i t

System avail. $ vs. units

y

Dispersed sales force

Machine Measurement Environment

Techs Moving Product

Skill Set

ManMan Power Flexing Between Families

Schedule

MachineMethodsBatching

Blue affect productivity

Yellow Most affect TAT

Estimates

Sap Data Entry

Shared Equipment

FIFO for Repair Units

Cherry Picking Troubleshooting

Variation in complexity

Data Collection

GMP

R

Complaints Sent to W.R.

Testing GuidelinesTech Documentation Ease of Use Flex Schedule/Breaks

Repair TAT

Reason

Low BacklogPlanning

No Std Repair

Productivity

Non Standard Bench Set Up

Bag Refill Process

Labor Time Collection

Demand Variation

Bag Refill Process

Component PartsFeed Back Frequency

Shipping By product Line

MaterialsMeasures

Incorrect Dates Recorded

Environment

Check Sheets

Helps collect and record process data in an i d ?organized way?

How often are various events occurring?P id f t b t t d i d tProvides facts about a process to drive data-

based conclusions.Include the “likely candidates” from the CauseInclude the likely candidates from the Cause-

and-Effect diagram.Basis for Pareto analysisBasis for Pareto analysis.Note: Data collection must be easy and time-

limited or it won’t happen


limited or it won t happen.

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Root Cause Analysis: Late Shipments

Check Sheets Quantify OccurrencesReason TallyReason Tally

Material shortage ||||| ||Quality issue requiring |||||Quality issue requiring rework

|||||

Staffing/absenteeism ||||||Order entry error ||||| |||||Changing customer ||||| ||||| |||requirements w/ no adjustment to expected delivery

||||| ||||| |||


Equipment failure |46

Pareto Analysis

Named after Wilfredo Pareto (18th century Italian economist/statistician) who discovered the 80 20economist/statistician) who discovered the 80-20 principle. 20% of the people held 80% of the wealthp p

Focuses our attention on the VITAL FEW issues that have the greatest impact to avoid spending

th TRIVIAL MANYenergy on the TRIVIAL MANY.A type of bar graph that displays

information/data in order of significanceinformation/data in order of significance.A visual aid for defining & prioritizing problems.


Pareto Chart Credit Application Delayspp y

290986%

100%97%

94%3000

3500

90%

100%

2493

77%86%

2500

nces

60%

70%

80%

41%1500

2000

Occ

urre

n

40%

50%

60%

627 561

1000

20%

30%

40%

561

242 180

0

500

0%

10%

20%

No Signature Insufficient BankInfo

No prior address CurrentCustomer

No Credit History Other

Reason for Delay


Teach root cause analysis tools if owner isn’t yet proficient.Ask probing questions to make sure true p g q

root cause has been found.


Nailing the Plan phase ofPDCA is the mostPDCA is the most

important step in theentire problem-solving process.


Planning Reminders

Background Need to quantify the problem to reduce

subjective / emotional responses Financial Financial Labor effort (which can be monetized) Lead time / responsiveness (which can be

monetized) Market share Compliance-related Compliance-related

Problem definition – proper scoping is vital! Include a precise problem statement in


p pbackground section.

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Planning Reminders (continued)

Target Condition / Desired stateLi t t t d f t i t th l ti ! List targeted performance metric, not the solution!

Must include measurable objectives Include both % improvement and the raw numbers (fromInclude both % improvement and the raw numbers (from

what to what)

Root cause You cannot solve a problem without knowing it’s root

cause! Avoid making assumptions “Do you think or do you Avoid making assumptions - Do you think or do you

know?” When multiple root causes exist, quantify and select


the relevant few for countermeasure development.

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Plannning Reminders (continued)

Displaying information visually aids tremendously in the absorption rate of thetremendously in the absorption rate of the information Pie charts, trend charts, graphs, bar diagrams, , g p , g Drawings Photographs

P bl t fi hb di P t h t Problem trees, fishbone diagrams, Pareto charts Value stream maps, process maps Representations of the people involved Representations of the people involved Anything that communicates information more quickly

and effectively than words


Thursday – Part II – Do, Check, Act

Theme: Owner:

Plan Do, Check, ActTheme: ________________________________ ________________________________


Current Condition

Effect Confirmation



In Summary

A3 reports should become a standardized formA3 reports should become a standardized formof currency for problem-solving, dialogue, anddecision making in your organization creatingdecision-making in your organization– creatingan organization of “scientists” who continually

i ti d hi lt th himprove operations and achieve results throughconstant learning from the work at hand.


For Further Study

For Further Questions

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858 677 [email protected]

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a3 management - from structured problem-solving to workplace development (part 1 of 2)

Business

a3 process

karen martin

problem owners

right problem

a3 report theme

elses problem

sample a3 report plan

act theme