a3 management (part 2 of 2)

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Lean Webinar SeriesA3 Management – Part II

September 30, 2010

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© 2010 Karen Martin & Associates

Your Instructor

Early career as a scientist; migrated to quality & operations design in the mid-80’s.

Launched Karen Martin & Associates in 1993.

Specialize in Lean transformations in non-manufacturing environments.

Co-author of The Kaizen Event Planner; co-developer of Metrics-Based Process Mapping: An Excel-Based Solution.

Instructor in University of California, San Diego’s Lean Enterprise program.

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Karen Martin,Principal

Karen Martin & Associates


Agenda

Part I - Tuesday, September 28 A3 Overview “Plan” stage of PDCA Root cause analysis

Part II - Thursday, September 30 “Do-Check-Act” stages of PDCA How to accelerate building problem owners’ and coaches’

capabilities Common problem-solving pitfalls

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PDCA: Plan Stage

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Primary problem-solving role: Investigator


PDCA: Do-Check-Act Stages

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Primary problem-solving role: Director

Common Components of the A3 Report

Theme: ________________________________ Owner: ________________________________

Plan Do, Check, Act

Background

Current Condition

Countermeasures / Implementation Plan

Effect Confirmation

Follow-up Actions

Target Condition / Measurable Objectives

Root Cause & Gap Analysis


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

Plan Do, Check, Act

Background

Current Condition


Effect Confirmation

Follow-up Actions

• What?

• Who?

• When?

• Where? (if relevant)

Target Condition / Measurable Objectives• 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?

Root Cause & Gap Analysis• 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?

Building a Lean Enterprise

Process Stabilization

Tools

Building a Lean Enterprise

Flow-Enabling Tools


Once you know the root cause, brainstorm and prioritize solutions

1. List relevant countermeasures.2. Eliminate those that aren’t possible.

Regulatory, budgetary, resource availability, system capability, etc.

3. Combine those that are similar.4. Number the countermeasures sequentially.5. Place countermeasures accordingly on the

PACE Prioritization Grid.

PACE Prioritization Grid

High LowAnticipated Benefit

Ease

of

Imp

lem

enta

tion

Diff

icul

tEa

sy

20

7

513

4 23

1

2289

2

10

16

11

6

12

1419

15

173

21

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Consider all options Be innovate – be willing to challenge your paradigms & help

others challenge theirs.

Make sure the countermeasure is directly very specifically to the root causes.

Make it clear exactly what will be done – by whom, by when, where, how, in what order, etc.

Aim for full implementation by a certain date. The problem owner’s role shifts to advocate and project

manager. Cross-functional involvement & consensus is a key

success factor.

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Implementation / Countermeasures

Sample Implementation PlanTask Type Accountable

Implementation Schedule (weeks)Progress Date

Complete1 2 3 4 5 6 7 8 9 10 11 12

Create visual board to track KPIs. KE Mary W.100 25

75 50

Clearn up data base. Proj George S.100 25

75 50

Create self-quality checklist. KE Sally R.100 25

75 50

Create standard template. KE Sally R.100 25

75 50

Modify weekly report. JDI Bruce M.100 25

9/22/201075 50

100 25

75 50

100 25

75 50

100 25

75 50

100 25

75 50

100 25

75 50

Type: JDI = Just do it; KE = Kaizen Event; Proj = Project

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Sample A3 Countermeasures / Implementation Plan



Plan Do, Check, Act

Background

Current Condition


Effect Confirmation

Follow-up Actions

• What?

• Who?

• When?















The A3 Report:Effect Confirmation

Tie confirmation directly to the target condition.Define 2-5 key performance indicators (KPIs).Determine ways to verify the effectiveness of the

countermeasures, one by one if possible.Plan in advance for the data that will need to be

collected.Identify who will help collect the data and how

frequently.



Plan Do, Check, Act

Background

Current Condition


Effect Confirmation

Follow-up Actions

• What?

• Who?

• When?















The A3 Report:Follow-up Actions

How will you communicate the new process?Who will monitor the process?Which metrics will be used to measure ongoing

performance?Look for similar processes within the department

and across the organization that can benefit from these countermeasures

Ensure ongoing improvement – who will do this?Share the wealth!

Communicate results across the organization and teach others to problem-solve via the A3 process

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Sample Effect Confirmation Option

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Metric Current State

Projected Future State

Projected % Improvement

Actual Results *

Actual % Improvement

Lead Time 36 Days 16 Days 56% 20 Days 44%

Rolled First Pass Yield 55% 75% 36% 80% 45%

Scrap $1.2 M $0.5 M 58% TBD TBD

Labor Effort 5.6 FTEs 3.0 FTEs 46% 3.8 FTEs 32%

* Measured by Sally Turner on 8/20/2010; monthly measurement; improvement efforts continuing.

Effect Confirmation & Follow-up

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Sample A3Effect Confirmation & Follow-up Actions

Follow-up Actions

Effect Confirmation

When Are You “Done”?

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Deming’s PDCA Cycle

Plan

Do

Check

Act

Develop hypothesis & design

experiment

Conduct experiment

Measure results

Analyze results & take appropriate action


Using A3 to develop organizational

capabilities

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The Role of the A3 Coach

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Coaching and Mentoring

Coaching is working in partnership to facilitate learning, improve performance, and create desired results. Primarily in service of the A3 owner’s development. To this end, what will be most supportive?

Mentoring is the process for imparting subject matter expertise and wisdom to a less experienced person. Primarily in service of achieving results. More of a one-way, training-driven relationship

Begin with coaching; move into mentoring as needed.

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Mentoring RelationshipCoaching Relationship

??

Focus: Asking questions Focus: Providing information

Wisdom Wisdom

Coach Coachee Mentor?

? ? ?

Mentee


Problem-Solving Proficiency Needed

Lean analytical, process design, and implementation toolsData analysisVisual display of dataProject & time managementTeam building / people skillsChange management skills / psychology

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Coaching vs. MentoringCoach Mentor

Purpose Growth/development; helping people realize their potential, while also generating results

Role Teacher/consultant; learning/thinking partner

Relationship Built on respect and trust; supportive in nature

Process Drawing out knowledge that resides within coachee

Sharing knowledge that resides within mentor

Questioning; coach engages in inquiry to guide the coachee

Telling; Mentor shares expertise, offering answers and solutions

Focus Primary: Developing strong problem-solversSecondary: Assuring the problem is thoroughly dissected and solved

Primary: Assuring the problem is thoroughly dissected and solvedSecondary: Developing strong problem-solvers

The Wisdom Comes in Knowing When to Coach and When to Mentor

Types of CoachingOwner’s Problem-Solving

Skill Level Focus During Session What to Ask / DoProblem-solving is spot on. Coaching

Goal: “Thought partners”

“How’s it going?”“What’s working well?”“What’s not?”“What have you learned?”“What’s been most surprising?”“What are you doing next?”“Do you need any help?”

Problem-solving is off course and needs correction.

Coaching & MentoringGoal: Get person back on track

Probe using Socratic questioning. Focus on one or two areas of the A3.

Problem-solving is on track so far, but owner’s having difficulty taking next steps.

Coaching & MentoringGoal: Build confidence; remove obstacles; create an action plan

Use Socratic questioning to help person realize his/her strengths & grow competencies; provide mentoring for knowledge transfer (e.g. specific tools).


Why should we avoid telling people what to do?

It robs them of the opportunity to think through the problem themselves.It deprives them of ownership of the

problem.You might be wrong.

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Socratic Questioning

Named for SocratesBased on his belief that the

most effective learning results from a disciplined practice of thoughtful questioning. Way of assuring “rigorous

thinking”Open-ended questions that

cause the learner to think deeply.

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Questioning “Don’ts”

Masked recommendations “Leading the witness” Disguising your recommendation as a question (and

thinking that counts as a question)“Run on” questions

Long questions that contain multiple questions“The inquisition” – asking question after question

Instead of pausing and allowing the person to answerClosed-ended questions

That can be answered with yes, no, or a word or two.

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Questioning “Don’ts”

Harsh or judgmental toneMulti-tasking or half-listening instead of

engaging the person in a focused dialogueIf the problem owner asks, “What do you

think?”, don’t take the bait!

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Building Organizational Capabilities –Model 1 – Leadership Development

Pre-select 4 problems related to annual business goals. Break into 4 teams; team lead is the problem owner; others

play dual role, focused primarily on building coaching skills. 1-day workshop – learn P stage of PDCA. 4-6 weeks to work on projects; heavy support throughout

from seasoned coach/mentor (2nd coach). 1-day workshop – teams present progress; much discussion;

learn DCA stage of PDCA. 4-6 weeks to work on projects; heavy support throughout

from seasoned coach/mentor (2nd coach). 1-day workshop – teams present progress; focus on

sustainability and spreading the learning across the organization.

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Building Organizational Capabilities –Model 2 – One-on-One Development

Specific problem is selected.Identify problem owner and coach/mentor (typically

the project owner’s direct supervisor).Seasoned coach/mentor serves as either:

“2nd coach” – coaches the coach (if coach is skilled in improvement tools)

Primary coach to problem owner, with side-bar coaching discussions with coach.

Support from seasoned coach is heaviest during the P stage of PDCA.

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How A3 Shifts Culture

Cross-functional engagementRoot cause analysis helps break the

“band-aid syndrome”Learning togetherAlignment with organizational strategyCoaching role of leadership helps move

them away from tactical involvement

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Common Problem-Solving Pitfalls

Problem isn’t tied to key business goals.Problem owner isn’t proficient in analytical and

improvement tools.Coach isn’t proficient in analytical and

improvement tools.Consensus isn’t built throughout the process.A3 drags on forever.A3 used for everything.

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Comment on how A3s and VSMs relate to one another, and which one to turn to in the beginning.


Key Success Factors

Engage all stakeholders from the beginning. They must clearly understand why “this” is a problem.

Gain consensus every stage of PDCA. Keep leadership from getting into tactics.

Their role is strategy and policy.

Test/experiment before rolling out an improvement. Assign clear accountability for monitoring the improved

state and continued improvement. Avoid moving forward until true root cause is known. Establish measurable targets. Develop leaders into engaged and active coaches/mentors. Share the process company-wide.

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In Summary

The A3 process 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.

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Other A3 Applications and Common A3 Components

Proposal Theme Background Current Condition Analysis and Proposal Plan Details Unresolved Issues (if

relevant) Implementation

Schedule Total Effect

Status Report Theme Background Current Condition Results Unresolved Issues /

Follow-up Actions Total Effect

During Kaizen Events

Professional Development A3

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For Further Study

© 2010 Karen Martin & Associates 45

Karen Martin, Principal7770 Regents Road #635

San Diego, CA 92122858.677.6799

[email protected]

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a3 management (part 2 of 2)

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