a3 management - from structured problem-solving to workplace development (part 1 of 2)
DESCRIPTION
Recorded webinar: http://bit.ly/L6umx0 Part 2: http://slidesha.re/1hzb0Qo Subscribe: http://www.ksmartin.com/subscribe Karen’s Books: http://ksmartin.com/booksTRANSCRIPT
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.
© 2011 Karen Martin & Associates 4
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.
© 2011 Karen Martin & Associates 7
The A3 Report Should Reflect the Process
© 2011 Karen Martin & Associates 8
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
© 2011 Karen Martin & Associates
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.
© 2011 Karen Martin & Associates 10
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.
© 2011 Karen Martin & Associates
Typically the owner’s direct supervisor.13
Common Components of the A3 Report
Theme: Owner:
Plan Do, Check, Act
Theme: ________________________________ ________________________________
Background Countermeasures / Implementation Plan
Current Condition
Effect Confirmation
Target Condition / Measurable Objectives
Follow-up ActionsRoot Cause & Gap Analysis
Common Components of the A3 Report
Theme: Owner:
Plan Do, Check, Act
Theme: ________________________________ ________________________________
Background Countermeasures / Implementation Plan
Current Condition
Effect Confirmation
Target Condition / Measurable Objectives
Follow-up ActionsRoot Cause & Gap Analysis
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.
© 2011 Karen Martin & Associates 16
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
© 2011 Karen Martin & Associates
y p
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Common Components of the A3 Report
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
© 2011 Karen Martin & Associates
“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
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Coach / Mentor’s Role
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
© 2009 Karen Martin & Associates 22
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 23
Common Components of the A3 Report
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?
Current Condition
Who?
• When?
• Where? (if relevant)
Di f t it ti
Context why is this a problem?
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: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
© 2011 Karen Martin & Associates
Avoid suggesting solutions or judging.
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Common Components of the A3 Report
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?
Current & Target Conditions
Who?
• When?
• Where? (if relevant)
I l d d t t i t bl
Context why is this a problem?
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
achieve (or will be measured to verify effectiveness)?
• Who’s responsible for ongoing measurement?
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?
• How will the improved state be standardized and communicated?
Coach / Mentor’s Role
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
© 2011 Karen Martin & Associates
Etc.
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Sample A3s – Current State
Poor correspondence p
quality
Missing inventory
resulting inresulting in write-offs
Common Components of the A3 Report
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?
Current Condition
Who?
• When?
• Where? (if relevant)
Di f t it ti
Context why is this a problem?
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 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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y
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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?
© 2011 Karen Martin & Associates 32
Coach / Mentor’s Role
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
© 2011 Karen Martin & Associates33
Common Components of the A3 Report
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?
Current Condition
Who?
• When?
• Where? (if relevant)
Di f t it ti
Context why is this a problem?
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 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.
© 2011 Karen Martin & Associates 35
Root Cause Analysis
© 2011 Karen Martin & Associates 36
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.
© 2011 Karen Martin & Associates 37
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
© 2011 Karen Martin & Associates
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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
© 2011 Karen Martin & Associates 41
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
© 2011 Karen Martin & Associates 42
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
© 2011 Karen Martin & Associates
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
||||| ||||| |||
© 2011 Karen Martin & Associates
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.
© 2011 Karen Martin & Associates 47
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
Coach / Mentor’s Role
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.
© 2011 Karen Martin & Associates49
Nailing the Plan phase ofPDCA is the mostPDCA is the most
important step in theentire problem-solving process.
© 2011 Karen Martin & Associates 50
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
© 2011 Karen Martin & Associates
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
© 2011 Karen Martin & Associates
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
© 2011 Karen Martin & Associates 53
© 2011 Karen Martin & Associates 54
Thursday – Part II – Do, Check, Act
Theme: Owner:
Plan Do, Check, ActTheme: ________________________________ ________________________________
Background Countermeasures / Implementation Plan
Current Condition
Effect Confirmation
Target Condition / Measurable Objectives
Follow-up ActionsRoot Cause & Gap Analysis
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.
© 2011 Karen Martin & Associates 56
For Further Study
For Further Questions
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858 677 [email protected]
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