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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
© 2010 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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© 2010 Karen Martin & Associates
PDCA: Plan Stage
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Primary problem-solving role: Investigator
© 2010 Karen Martin & Associates
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
Common Components of the A3 Report
Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Check, Act
Background
Current Condition
Countermeasures / Implementation Plan
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
© 2010 Karen Martin & Associates
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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© 2010 Karen Martin & Associates
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
Common Components of the A3 Report
Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Check, Act
Background
Current Condition
Countermeasures / Implementation Plan
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?
© 2010 Karen Martin & Associates
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.
Common Components of the A3 Report
Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Check, Act
Background
Current Condition
Countermeasures / Implementation Plan
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?
© 2010 Karen Martin & Associates
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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© 2010 Karen Martin & Associates
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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© 2010 Karen Martin & Associates
Deming’s PDCA Cycle
Plan
Do
Check
Act
Develop hypothesis & design
experiment
Conduct experiment
Measure results
Analyze results & take appropriate action
© 2010 Karen Martin & Associates
Using A3 to develop organizational
capabilities
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© 2010 Karen Martin & Associates
The Role of the A3 Coach
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© 2010 Karen Martin & Associates
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
© 2010 Karen Martin & Associates
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).
© 2010 Karen Martin & Associates
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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© 2010 Karen Martin & Associates
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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© 2010 Karen Martin & Associates
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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© 2010 Karen Martin & Associates
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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© 2010 Karen Martin & Associates
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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© 2010 Karen Martin & Associates
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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© 2010 Karen Martin & Associates
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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© 2010 Karen Martin & Associates
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.
© 2010 Karen Martin & Associates
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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© 2010 Karen Martin & Associates
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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© 2010 Karen Martin & Associates
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
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For Further Questions