a3 management (part 1 of 2)

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Lean Webinar Series A3 Management – Part I

December 6, 2011

© 2011 Karen Martin & Associates, LLC

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Your Instructor

Early career as a scientist; migrated to quality &

operations design in the mid-80’s.

Launched Karen Martin & Associates in 1993.

Provide business performance improvement and

Lean transformation support in office, service &

knowledge work environments.

Co-author of The Kaizen Event Planner; co-

developer of Metrics-Based Process Mapping:

An Excel-Based Solution; author of forthcoming

The Outstanding Organization (McGraw-Hill,

May 2012).

Instructor in University of California, San Diego’s

Lean Enterprise program.

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Karen Martin, Principal

Karen Martin & Associates, LLC


Webinar Schedule

Content

11:00 am -12:00 pm PT

Q&A

12:00-12:30 pm PT

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2012 Webinars Month Topic

January Strategy Deployment (Hoshin Kanri)

February A Factory of One – Dan Markovitz

March The Outstanding Organization: Achieving Clarity

April The Outstanding Organization: Achieving Focus

May The Outstanding Organization: Achieving Discipline

June The Outstanding Organization: Achieving Engagement

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The Outstanding Organization by Karen Martin

Book launch – May 18, 2012


Agenda

Part 1 - Tuesday, December 6

A3 Overview

“Plan” stage of PDSA

Root cause analysis

Part 2 – Wednesday, December 7

“Do-Study-Adjust” stages of PDSA

How to accelerate building problem owners’ and coaches’

capabilities

Common problem-solving pitfalls

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For Further Study

http://www.amazon.com/gp/product/1563273608?ie=UTF8&tag=karmarass-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1563273608

http://www.amazon.com/gp/product/1934109207?ie=UTF8&tag=karmarass-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1934109207


Why is problem-solving so challenging?

It takes a different kind

of thinking to solve a

problem than the kind

of thinking that produced

the problem.

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— Albert Einstein


What is A3?

The core of Toyota’s renowned management system.

A structured method for applying the PDSA (plan-do-study-adjust) approach to problem-solving.

International designation for 11 x 17” paper.

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The A3 Report

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

thinking.

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

Highly visual – graphics, charts,

maps, drawings, etc.

“Making it pretty” isn’t the goal –

hand drawn A3s are OK.

Neither the format nor the specific

sections are set in stone. 13

The A3 Report is a Communication,

Consensus-Building and Learning Tool

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George Koenigsaecker, Leading the Lean Enterprise Transformation.

The A3 report is

a story board that

reflects the

problem-solving

process.

It is created as

you progress

through PDSA,

not after.

PDSA Cycle – The Scientific Method

Plan

Do

Study

Adjust

Develop

hypothesis &

design

experiment

Conduct

experiment

Measure

results

Analyze

results &

adjust as

appropriate


Problem-Solving Steps

1. Identify the problem

2. Explore the problem deeply What’s the true root cause?

3. Consider potential solutions Hypothesize

4. Test solutions Confirm hypothesis

5. Implement solution(s)

6. Measure results Did the hypothesis prove out?

7. Adjust as needed; prepare to improve again

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Plan

Do

Study

Adjust

{ At least

50% of

the total

time

Sample A3 Report

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Plan Do, Study, Adjust


Benefits of the A3

Creates consistency in how

organizations go about solving

problems, managing projects, and

making decisions.

Builds critical thinking and problem-

solving capabilities across the entire

organization.

Forces a holistic/comprehensive view

of the problem and solutions; requires

collaborative problem-solving.

Reduction in “silo-ism”

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.”

Stimulates data-driven decisions.

Fairness and accountability replace blame and deceit.

Transparency re: problems spawns a commitment to

action.

Develops deep organizational capabilities.

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Common Components of the A3 Report

Theme: ________________________________ Owner: ________________________________


Background

Current Condition

Countermeasures / Implementation Plan

Effect Confirmation

Follow-up Actions

Target Condition / Measurable Objectives

Root Cause & Gap Analysis


A3 Roles & Responsibilities

Problem owner

Individual who’s accountable both for

the results and the process for

achieving results.

Problem owners have the authority to

engage anyone needed and the

responsibility to engage all relevant

parties.

Coach

Person teaching the owner the problem-

solving process.

Typically the owner’s direct supervisor.

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Theme: ________________________________ Owner: ________________________________


Background

Current Condition


Effect Confirmation

Follow-up Actions




Coach / Mentor’s Role

Assure problem is relevant to the

organization’s annual business goals.

Focus resources on the highest priority

problems.

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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 issues.

Avoid judging, concluding re: cause, or offering

solutions.

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.


Background

Current Condition


Effect Confirmation

Follow-up Actions

• What?

• Who?

• When?

• Where? (if relevant)


• Diagram of desired state

• Measurable targets – how will we know that

the improvement has been successful?

• Diagram of current situation or process

• What about it is not ideal?

• Extent of the problem (metrics)

• Problem statement

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


• Graphical depiction of the most likely direct

(root) causes

• What measurable results did the solution

achieve (or will be measured to verify

effectiveness)?

• Who’s responsible for ongoing

measurement?

• Where else in the organization can this

solution 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

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

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

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Sample Background Material

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Gray – highest industry quality scores

Purple – average industry quality scores (benchmark)

Blue – client quality scores

sss

FY 2008 FY 2009 FY 2010

Sample Background Material

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0

0


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 if owner is

unfamiliar with them.

© 2009 Karen Martin & Associates 30

Potential Development Need

Become proficient in visual data display

options:

Bar charts

Histograms

Trend / line charts

Pie charts

Pareto charts

Etc.

© 2009 Karen Martin & Associates 31




Background

Current Condition


Effect Confirmation

Follow-up Actions

• What?

• Who?

• When?










• Context - why is this a problem?



(root) causes



effectiveness)?


measurement?




and communicated?


The A3 Process:

Current Condition

Two primary goals 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, tables, photos, etc.).

Highlight key factors in the current state.

Provide evidence of the problem (data) Avoid qualitative opinions.

Avoid suggesting solutions or judging.

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Background

Current & Target Conditions


Effect Confirmation

Follow-up Actions

• What?

• Who?

• When?


• Include pre- and post metrics table





(root) causes



effectiveness)?


measurement?




and communicated?

Metric Current State Desired Target

Condition

Projected %

Improvement

Lead Time

Quality

Labor Effort

Morale/Turnover

Inventory Turns

Market Share

Returned Parts



Ask probing questions to assure relevant

metrics have been selected.

3-5 key performance indicators

How will we know if we’d been successful?

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Current State Documentation

Options

Go to the gemba! – OBSERVE

Performance / audit data

Mapping

Value Stream Maps (VSM) - strategic

Metrics-Based Process Mapping (MBPM) – tactical

Spaghetti diagrams

Documentation / job aid review

Videotape / photos

Worker interviews

Work samples

Etc.

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Sample A3s – Current State

Missing

inventory

resulting in

write-offs

Poor

correspondence

quality




Background

Current Condition


Effect Confirmation

Follow-up Actions

• What?

• Who?

• When?













(root) causes



effectiveness)?


measurement?




and communicated?


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?

Pointers

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?

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Ask probing questions to assure target

condition meets business needs.

It’s better to set stretch objectives and fall

a little short, than to set objectives that

you’re sure you’ll hit.

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Background

Current Condition


Effect Confirmation

Follow-up Actions

• What?

• Who?

• When?













(root) causes



effectiveness)?


measurement?




and communicated?


The A3 Report:

Root Cause Analysis

Show the root cause of the problem(s) identified

in the current state.

Separate symptoms and opinions from cause-

and-effect determination.

Consider which techniques will be most useful in

gaining root cause insight.

Identify additional tests, if needed, to establish

level of certainty re: cause and effect.

Summarize your findings visually.

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Root Cause Analysis (RCA)

RCA is necessary to:

Avoid jumping to conclusions.

Avoid creating “band-aid” fixes (addressing only the symptoms).

Select proper countermeasures.

Design and implement lasting solutions that truly eliminate the problem.

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Root Cause Analysis Tools

Simple problems

Five Why’s

Problem Analysis Tree

More complex problems

Brainstorm causes (fishbone)

Tally frequency of most likely causes

(check sheet)

Identify relevant few (Pareto analysis)

for countermeasure development

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If

necessary



Teach root cause analysis tools if owner

isn’t yet proficient. (mentor)

Ask probing questions to make sure true

root cause has been found. (coach)

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Nailing the Plan phase of

PDSA is the most

important step in the

entire problem-solving process.

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Tomorrow – Part 2 – Do, Study, Adjust

Theme: ________________________________ Owner: ________________________________


Background

Current Condition


Effect Confirmation

Follow-up Actions




In Summary

A3 reports should become a standardized form

of currency for problem-solving, dialogue, and

decision-making in your organization– creating

an organization of “scientists” who continually

improve operations and achieve results through

constant learning from the work at hand.

— John Shook, Managing to Learn

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Your Questions

How long developing a tactical A3 take (3

levels of A3)?

Who should be involved in developing A3?

Please provide examples of healthcare

organizations where A3 has been used

successfully to achieve improvement.

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Karen Martin, Principal

7770 Regents Road #635

San Diego, CA 92122

858.677.6799

[email protected]

For Further Questions

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a3 management (part 1 of 2)

Business

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a3 report

pdsa plan

building problem owners

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stages of pdsa

problem solvers discoveries

precise thinking