Top Banner
www.leanuk.org John Kiff 5 th November 2013 Managing to LearnA3 Thinking Workshop Lean Enterprise Academy 1
109

A3 Thinking Masterclass by John Kiff

Nov 01, 2014

Download

Education

shown at the Lean Summit 2013 - Lean Transformation: Frontiers and Fundamentals on 5th, 6th & 7th November
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: A3 Thinking Masterclass by John Kiff

www.leanuk.org

John Kiff5th November 2013

“Managing to Learn”

A3 Thinking Workshop

Lean Enterprise Academy1

Page 2: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Objectives

To explore the lessons and insights of Managing to Learn from 4 perspectives by: Following the stages of learning as illustrated in

Managing To Learn Examining how the A3 changes with each revision

to develop you to recognize effective A3 stories Showing you how to create the Title, Background,

Current Situation, Goal, Analysis and Recommendations sections of an A3

Showing you various formsand uses of the A3 format

Lean Enterprise Academy2

Page 3: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Agenda

What is an A3? Working through Porter’s A3 Reading, reviewing and responding to A3s Applying A3 Thinking to your own work

Problem Solving Draft Problem Situation Present / Review Revise Extend to Analysis and Countermeasures…

Discuss the use of the A3 Process also for: Proposals Status Reports

Lean Enterprise Academy3

Page 4: A3 Thinking Masterclass by John Kiff

www.leanuk.orgLean Enterprise Academy4

Day 1 Agenda Timetable Approach08.30 – 09.00

09.00 – 09.30 Introduction, Agenda, Expectations Expectations exchange

09.30 – 10.00 What is an A3? Presentation & Discussion

10.00 – 10.30 Working through Porter’s A3 Reading & Discussion

10.30 – 10.45 Break

10.45 – 11.30 Working through Porter’s A3 (continued) Reading & Discussion

11.30 – 12.00

12.00 – 12.30

12.30 – 13.00 Lunch

13.00 – 13.30 Read, review & respond to A3s Presentation & Discussion

13.30 – 14.00 Applying A3 Thinking to your own work Presentations & Exercises

14.00 – 14.30

14.30 – 15.00

15.00 – 15.30 Break

15.30 – 16.00 Applying A3 Thinking to your own work (cont’d) Presentations & Exercises

16.00 – 16.30

16.30 – 17.00

17.00 – 17.30 Reflection Discussion

17.30 – 18.00

Page 5: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Managing Expectations

This workshop will address the objectives… But it won’t make you an expert

in A3 Thinking Only practice will…!

Lean Enterprise Academy5

Page 6: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Expectations

Lean Enterprise Academy6

This workshop will have been a success & made good use of my time if…

Page 7: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Agenda

What is an A3? Working through Porter’s A3 Reading, reviewing and responding to A3s Applying A3 Thinking to your own work

Problem Solving Draft Problem Situation Present / Review Revise Extend to Analysis and Countermeasures…

Discuss the use of the A3 Process also for: Proposals Status Reports

Lean Enterprise Academy7

Page 8: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Initial Discussion

What makes a “good A3” good?

What is good use of an A3?

What benefits to an organization do you see in the A3 process?

8 Lean Enterprise Academy

Page 9: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Background

Problem solving deeply influenced by the methodology developed by Walter Shewhartat Bell Laboratories in the 1930’s Later adopted and

made popular by W. Edwards Deming

Methodology based onPlan-Do-Check-Act (PDCA)– The Deming Cycle – 8-Step problem solving process

Lean Enterprise Academy9

Key texts: John Shook (2008) “Managing to Learn”Durward Sobek II & Art Smalley (2008): “Understanding A3 Thinking”

Page 10: A3 Thinking Masterclass by John Kiff

www.leanuk.orgLean Enterprise Academy10

Plan Do, Check, Act

Page 11: A3 Thinking Masterclass by John Kiff

www.leanuk.org

The A3 Thinking Steps

What is the problem?

Who owns the problem?

What is the root cause of the problem?

What are some possible countermeasures?

How will you choose which countermeasure to propose?

How will you get agreement among everyone concerned?

What is your implementation plan? What timetable?

How will you know if your countermeasure works?

What follow-up issues can you anticipate?

How will ensure learning and continuous improvement?

Lean Enterprise Academy11

Page 12: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Lean Managers do two things

Get each person to take initiative to:- solve problems and - improve his or her job

Ensure that each persons’ job is aligned to: - provide value for the customer and - prosperity for the company

Lean Enterprise Academy12

Ref: John Shook: Leadership for Value Stream Management

Get the work done AND

develop your people at the SAME time

Page 13: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Lean Managers do two things

Get each person to take initiative to:- solve problems and - improve his or her job

Ensure that each persons’ job is aligned to: - provide value for the customer and - prosperity for the company

A3 process designed to make it easy: To see problems To improve To learn from

Lean Enterprise Academy13

Ref: John Shook: Leadership for Value Stream Management

Get the work done AND

develop your people at the SAME time

Page 14: A3 Thinking Masterclass by John Kiff

www.leanuk.org

How do you want to manage?

Do you want to manage…..With a process or structure that

makes it easier to: Gain agreement (alignment?) Clarify responsibilities (ownership?) Mentor people on the job

(ask questions & develop people?)

Lean Enterprise Academy14

Page 15: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Problem Solving In order to learn by doing we will practice on

real problems Let’s start by reading about a production

problem that a certain Supervisor had to solve…

Lean Enterprise Academy15

Page 16: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Solving Problems

Lean Enterprise Academy16

Date: _____Dept. ________________Name _______________________

What is the problem?

List of possible causes List of possible countermeasures

Exactly what should be done about it? When by? Who do you need to help?

Page 17: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Smith’s Problem HandoutBrown, the drill press operator in Department A was working at his job, drilling the #1 hole in angle plates. He had cut his finger while moving tote pans of material to the work area.

The standard specifications for the job called for gauging one piece in twenty for size. Brown did this and although the pain from his finger was diverting his attention all that he gauged seemed to be good.He therefore had no indication that the drill was dull nor that the machine wasn’t running at the correct speed. It was just as the set-up man had left it.

By mid-morning he had completed five tote pans for a total of 100 pieces.Smith the Supervisor suddenly called Brown to his desk and reprimanded him for carelessness in his work.Brown was angry and felt discouraged. He told the supervisor he was going home at noon.Smith the Supervisor was worried because Department B needed the work now or they would stop production. The Inspector had told him that a great many of the angle plates were off specifications

Lean Enterprise Academy17

Page 18: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Agenda

What is an A3? Working through Porter’s A3 Reading, reviewing and responding to A3s Applying A3 Thinking to your own work

Problem Solving Draft Problem Situation Present / Review Revise Extend to Analysis and Countermeasures…

Discuss the use of the A3 Process also for: Proposals Status Reports

Lean Enterprise Academy18

Page 19: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Porter’s A3#1

In pairs, please read the text describing the background to Porter’s Problem Pages 14-18 left hand column only

Using A3#1 (pages 22-23) discuss:1. What is Porter claiming in his A3?2. What does he (and what do you) actually know?3. Would you agree to sign this A3 if you were Porter’s manager?4. What is Porter ASSUMING?5. What is Porter not grasping about the situation?6. What does Porter need to do next?

Lean Enterprise Academy19

Page 20: A3 Thinking Masterclass by John Kiff

www.leanuk.orgLean Enterprise Academy20

I. BackgroundNew domestic plant expansion has massive technical requirements that must be translated from Japanese to English. The size and complexity of the project are creating errors and delays

A3#1 Create Robust Process for Translating Documents

II. Current ConditionsCost overruns, delays, and errors due to:• Sheer volume of documents• Multiple and varied vendors (pricing, quality, ease)• Involvement of various departments and working styles

III. Goals/Targets• Simplify and standardise the process• Reduce costs by 10%

IV. Analysis• Challenge of translating from Japanese to English• Multiple varied vendors create a complex, nonstandard

process• Overall improvement can be defined by reduction in cost

overruns

VI. PlanEvaluate current vendorIdentify new vendor candidatesDevelop bid package, distribute, and choose winning bid

VII. FollowupMonitor cost to proposalReview performance at end of one-year contractPut contract up for bid again if performance goals are not met

V. Proposed CountermeasuresSimplify and improve process performance by choosing one vendor based on competitive bid process

DP6/1/08

Page 21: A3 Thinking Masterclass by John Kiff

www.leanuk.orgLean Enterprise Academy21

Is this the issue?

“Massive”?

How big or important is

this problem?

How much?How long?How many?

??????

Why 10%?

What do ‘challenge’

and ‘ complex’ mean?

What problem and what cause?

What does the number of

vendors have to do with the problem?

How can we know that any

of this will work when we do not even know the

problem or the root cause?

Page 22: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Questioning Mind

22

Lean is not acting on assumptions or jumping to conclusions.

Lean Enterprise Academy

What we actually know?(About the problem)

How to confirm it? (How do we know it?)

What do we need to know? How can we learn it?

Page 23: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Go See…and Listen

23

“Data is of course important, but I place greater emphasis on facts.”

-Taiichi OhnoAnd where do you find the FACTS of a situation?

At the Gemba –the place where the problem is actually happening.

Not in a conference room or at a desk.

Grasp the actual condition, firsthand

Lean Enterprise Academy

Page 24: A3 Thinking Masterclass by John Kiff

www.leanuk.org

The Problem with Problem Solving

Our Natural Human Tendency?

Lean Enterprise Academy24

Perception of a

Problem

The SOLUTION

Facts

Black Hole

FactsImpressions & Assumptions

Theory

Page 25: A3 Thinking Masterclass by John Kiff

www.leanuk.org

How we can solve problems more effectively?

Ask questions to help ourselves to see:What is actually happening?What do I actually know?

Lean Enterprise Academy25

The Real or Main

ProblemA SOLUTION

Impressions & Assumptions

Theory

FactsFactsFactsFactsFactsFactsFacts

Page 26: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Oh! Gettin’ away from the Gemba!

About what actually happened and what it means

Conclusions about the nature of situations and events and what “really” occurred

Recognition of patterns, trends, types and familiar elements in situations and events

What is directly seen, heard, sensed, felt and perceived from the actual conditions of a situation or event

Lean Enterprise Academy26

What We Tend to Report

Assumptions:

Interpretation:

Impression:

Experience:

Page 27: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Oh! Gettin’ away from the Gemba!

“I guess I shouldn’t rely on Ben to do the team’s safety and quality reports by himself.”

“Ben doesn’t pay attention to standards and details the way he should.”

“It sounds like he’s not checking the torque on his wrench often enough.”

“Inspection says they caught 4 bolts that Ben didn’t tighten enough this morning.”

Lean Enterprise Academy27

Assumptions:

Interpretation:

Impression:

Experience:

Page 28: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Porter’s A3#2

In pairs, please read the text describing the background to Porter’s Problem Pages 28-33 left hand column only

Using A3#2 (page 34) discuss:1. How is Porter’s 2nd A3 better problem solving than his 1st attempt2. What did Porter learn and how did he learn it?3. What pitfalls in problem solving thinking does Porter avoid this time?4. What does he still need to work on to have a better grasp of the

problem situation and his responsibility?

Lean Enterprise Academy28

Page 29: A3 Thinking Masterclass by John Kiff

www.leanuk.orgLean Enterprise Academy29

I. BackgroundAcme plant to double capacity!

Much document translation required!• Poor English translations of Japanese documents caused many problems at

original plant start up• Expansion plans call for aggressive launch timeline and cost reduction

A3#2 Deliver Perfect Translations

II. Current Conditions

IV. Analysis

VI. Plan

VII. Followup

V. Proposed Countermeasures

DP6/3/08

Problems in document translation at time of initial plant launch:

Cost = High

Delivery = Highly variable

Quality = Many errors!

Problems in document translation process have not been corrected!

250

Document translation problems could impede plant launch!

500

Documenttranslations

tsunami

Current Expansion

Now Begin translation Launch12 months 6 months Translators

EngineeringJobinstructions

Officedocuments

Technicalengineeringdocument

Gen

Documents bydepartment

Documents bytype

How high?How variable?

How many errors?

Is this the right title?

Don’t get ahead of

yourselves

EngineeringHR,other

IT

Page 30: A3 Thinking Masterclass by John Kiff

www.leanuk.org

What is a Problem?

Lean Enterprise Academy30

A “problem” is… the gap between the way things are now & the way they’re supposed to be, or you want them to be, in the future

A manager has a problem when the work assigned fails to produce the expected results (Ref: TWI Training Materials)

Page 31: A3 Thinking Masterclass by John Kiff

www.leanuk.org

“A problem clearly defined is a problem half-solved”

What do we mean by “clearly defined”? Gap between:

- what is actually happening (current condition) and: - what should/needs to be happening… …described in performance terms.

Gap broken down to concrete, observable conditions (smaller problems in the gap or in the related work processes) that are contributing to the gap & can be investigated first hand

Lean Enterprise Academy31

Page 32: A3 Thinking Masterclass by John Kiff

www.leanuk.org

What is the GAP? How can you measure it?

32 Lean Enterprise Academy

Page 33: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Breaking down Porter’s problem

Why don’t the employees have the translated documents when they need them? The documents don’t get into the

system on time Why don’t the documents get into

the system on time? Because the translators take too

long to complete them Why do the translators take too

long to complete them? Because the translators work at

different paces Why do they work at different

paces?

Lean Enterprise Academy33

Page 34: A3 Thinking Masterclass by John Kiff

www.leanuk.org

CausedGAP

CreatedGAP

A Gap: The two types of Gaps:

34 Lean Enterprise Academy

Page 35: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Exactly what is and what is not the problem?

Clarify the Problem

3535

Technical Documents

Office Documents

JobInstructionDocuments

Departments Generating Documents

Types of Documents

Lean Enterprise Academy

Page 36: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Porter’s A3#3

In pairs, please read the text describing the background to Porter’s Problem Pages 43-44, 49-50 and 52-57 left hand column only

Using A3#3 (page 58-59) discuss:1. What did Porter have to do to get all the information about the problem

situation that he has now?2. What three tools did Porter use to grasp the problem situation?3. What is Porter focusing on now as the REAL Problem(s)?4. What has Porter learned?5. What does he need to do Next?

Lean Enterprise Academy36

Page 37: A3 Thinking Masterclass by John Kiff

www.leanuk.orgLean Enterprise Academy37

A3#3 Support Launch Objectives with Accurate, Timely Document Translation

Next Steps

IV. Analysis

DP6/6/08

Document translation problems could impede plant launch!

I. BackgroundAcme plant to double capacity!

Much document translation required!• Poor English translations of Japanese documents caused many problems at original

plant start up• Expansion plans call for aggressive launch timeline and cost reduction

II. Current Conditions

III. Goals/Targets

Problems in document translation at time of launch:Cost = 10% over budget

Delivery = Over 50% lateLong, variable lead times

Quality = Much rework >50% Many errors reach customer

Overall = Constant expeditingPoor qualityMuch reworkOvertimeEveryone unhappy

Problems in document translation process have not been corrected!

250

500

Documenttranslations

tsunami

Current Expansion

Now Begin translation Launch12 months 6 months Translators

Officedocuments

Gen

EngineeringHR,other Job

instructions

OfficedocumentsIT

Gen

Documents bydepartment

Documents bytype

Jobinstructions

Officedocuments

Technicalengineeringdocument

Quality - 0 defects at launch- Rework less than 10%

Delivery - 100% on-time

Cost - 10 % decrease – Rework down; overtime down

What Who When

Confirm agreement of the analysis Porter Next week

Begin generation and evaluation Porter Next two weeksof countermeasures

Volume Deliveryand LTproblems

Errorgeneration

100%Job

inst’s

Techeng

docs

Officedocs

Current-state map

Lost

in t

rans

lation

Lost

Translationproblems

In physical transitIn cyberspaceIn in-basketIn out-basket

Random causes: No ability to track Unclear expectations

Large batches of work

Confusing formats

Random use of vocabulary

Written explanations ofcomplex operations

Unclear expectations,lack of training

Selection

Training

No standard vocabulary

No or poor editing

Unclear expectations

Uneven andunpredictable workloads

Poor original

Translator’sskills

Wrong technicalvocabulary

Poorly writtenor expressed

Translator can’tunderstand original

Translatorunderstands

original but stillpoor translation

Proc

ess

char

acte

rist

ics

and

weak

ness

es

Vendorprocesses

Acmeinternalprocesses

Originaldocumentcreation

Vendor’s documentprocessing variance

Translator’s differentexpertise

No quality check

No timing check

Send to randomtranslators

Varying technicalexpertise

Varying Englishability

Varying documentformatting ability

Varying skillsin writingdocuments

Differentvocabulary for

same itemVarying languageused by differentshops and depts

No central oversight Each shop or departmenthandles independently

No monitor ofquality or timing

Poor process toselect vendors

No ability tostandardise

Huge variationin process

Random sending torandom vendors

Have you shown the problem breakdown,

clearly?

Is the root cause clear?

Page 38: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Porter’s Problem Analysis Tree

Lean Enterprise Academy38

Page 39: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Porter’s Current State Map

Lean Enterprise Academy39

“Cost overages come from rework,expediting, and overtime – most of which come from errors!”

Page 40: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Porter’s Problem Analysis Tree

Lean Enterprise Academy40

Page 41: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Porter’s A3#4

In pairs, please read the text describing the background to Porter’s Problem Pages 67-72 & 76-77 left hand column only

Using A3#4 (page 84-85) discuss:1. What has Porter done in the Analysis section of this A3?2. What is he doing in the Countermeasures section?3. How are the two sections related?4. What has Porter learned?5. What does he need to do next?

Lean Enterprise Academy41

Page 42: A3 Thinking Masterclass by John Kiff

A3#4 Support Launch Objectives with Accurate, Timely Document Translation

Next Steps

DP6/13/08

Document translation problems could impede plant launch!

I. BackgroundAcme plant to double capacity!

Much document translation required!• Poor English translations of Japanese documents caused many problems at original

plant start up• Expansion plans call for aggressive launch timeline and cost reduction

II. Current Conditions

III. Goals/Targets

Problems in document translation at time of launch:Cost = 10% over budget

Delivery = Over 50% lateLong, variable lead times

Quality = Much rework >50% Many errors reach customer

Overall = Constant expeditingPoor qualityMuch reworkOvertimeEveryone unhappy

Problems in document translation process have not been corrected!

250

500

Documenttranslations

tsunami

Current Expansion

Now Begin translation Launch

12 months 6 months Translators

Officedocuments

Gen

EngineeringHR,other Job

instructions

OfficedocumentsIT

Gen

Documents bydepartment

Documents bytype

Jobinstructions

Officedocuments

Technicalengineeringdocument

Quality - 0 defects at launch- Rework less than 10%

Delivery - 100% on-timeCost - 10 % decrease – Rework down; overtime down

What Who When

Confirm agreement of countermeasure evaluations Porter Next two weeksAnd target-state mapBegin consolidation of plan and overall timeline Porter Next three weeksVolume Delivery

and LTproblems

Errorgeneration

100%Jobinst’sTech

engdocs

Officedocs

Current-state map

IV. Analysis

Lost

in t

rans

lation

Lost

Translationproblems

Large batchesRandom causses: No ability to track Unclear expectations

Poor document creation skillsMany document formatsRandom use of technical vocabularyUnclear expectationsWritten descriptions of complexoperations

Poor or wrongly skilled translatorNo or poor editingUnclear expectationsLarge batches and uneven and unpredictable workloads

Target-state map

Cause Counter Description Eval. Benefit-measure

A

B

Central document-flowTrackingprocess

Overall process ownership established

V. Countermeasures

How much consensus does the organisation have around

the countermeasure?Who agrees/disagrees?

How did you determine the evaluations?

Is this do-able?Is there any risk?

What is the incremental cost?What is the expected ROI?

Page 43: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Porter’s Problem Analysis Tree: 3 Root Cause Groupings

Lean Enterprise Academy43

Lost

in t

rans

lati

on

Lost

Translationproblems

Lost & never found 5%

Lost & found 40%

Just stuck 40%

Never lost 15%

Large batchesRandom causes: No ability to track Unclear expectations

Incomprehensibleoriginal documents

Incorrect or difficult tounderstand translations

(even with clear originals)

Poor document creation skillsMany document formatsRandom use of technical vocabularyUnclear expectationsWritten descriptions of complexoperations

Poor or wrongly skilled translatorNo or poor editingUnclear expectationsLarge batches and uneven andunpredictable workloads

3 common issues: 1) Lost documents, 2) Translation problems due to problematic originals, and 3) Translation problems due to a poor translation process

Page 44: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Two Levels of Cause

Direct Cause An occurrence or

condition that is confirmed to be the reason a specific problem (effect) exists.

It is a link in a cause/effect chain that can be pursued and addressed at the root cause.

Systemic Cause An aspect of the

“design” of the work system that leads to a category of problems or a type of waste in the output of the system.

It can be addressed by an improvement in the design of the work flow.

4444

Lean Enterprise Academy

Page 45: A3 Thinking Masterclass by John Kiff

www.leanuk.org45 Lean Enterprise Academy

Page 46: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A

A

B

C

C

?

Lean Enterprise Academy4646

B

Page 47: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Porter’s Authorized A3:

47

Please read the A3(pages 98-99)

Lean Enterprise Academy

Page 48: A3 Thinking Masterclass by John Kiff

www.leanuk.org48 Lean Enterprise Academy

Page 49: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Agenda

What is an A3? Working through Porter’s A3 Reading, reviewing and responding to A3s Applying A3 Thinking to your own work

Problem Solving Draft Problem Situation Present / Review Revise Extend to Analysis and Countermeasures…

Discuss the use of the A3 Process also for: Proposals Status Reports

Lean Enterprise Academy49

Page 50: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A3 Practice: Reading, Reviewing and Responding to A3s

Does it tell a story that makes sense?

Can you “see” the facts of the situation?

Are the links between problem, cause and countermeasure clear?

Does the story engage your thinking?

Lean Enterprise Academy50

Page 51: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A3/PDCA Thinking: Underlying Expectations

Proposals and plans must make sense to others, not just the person(s) presenting them.

“Make sense” means the need and appropriateness of the action or plan must be clear based on the facts of the actual situation.

Making plans that make sense requires: Truly grasping the situation (the factors that influence it and the

broader business needs) Understanding the probable specific effects of actions on the

situation and system as a whole

Facts link the proposal to the purpose and show why it makes sense.

51 Lean Enterprise Academy

Page 52: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Questions to check if an A3 story makes sense

5. Where did you get the answers to the questions below?

4. Why does he/she think the accomplishment is important?

3. What does he/she want to accomplish?2. Why did he/she pick those things to do?1. What Action is the Author proposing to do?

52

START HERE!

Lean Enterprise Academy

Page 53: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Listening in reverse

Why is it important?

How do you know? What’s the gap?

Why? What will that accomplish?

Why? What will it change?

Do what?

53

To test the linkages

Lean Enterprise Academy

Page 54: A3 Thinking Masterclass by John Kiff

Current Situation

Root Cause Analysis

Countermeasures

Effect Confirmation

Follow-up Actions

Background

1. Corporate Goals 2006 Increase global market share Improve quality & service Increase corporate profits

2. Manufacturing Goals 2006 Improve reduce cost by 5% Reduce scrap 15% Improve productivity 7% Improve HSE index 10%

*Health, safety & environment

Not meeting goal for 2006

1

2

3

OverallScrap %

3.22.7 2.6

2004 2005 2006(YTD)

2.3%Goal

Current Situation

123

£K 700

20086

2004 2005 2006(YTD)

456

Scrap by Department

Breakdown of Machine ShopScrap Rates

Status*

460150232740Scrap £K

8.73.70.70.91.5Scrap %

Final Grindi

ng

Rough Grindi

ngDrillin

gTurnin

gMillin

gProcess

*Legend 0–1% 1–2% 2+%

Goal Reduce scrap in rough grind from 3.7% to less than 2% by December 2006 Reduce scrap in final grinding from 8.7% to less than2% by December 2006

UndersizedShaft defect

ContaminationGrinding wheelSet up

Manual offsets

Dimensions

Hardness

Surface finish

MAN MACHINE

MATERIAL METHOD

Spindle

Clamp & locator

Grinding wheel

Grinding conditionsCoolantconcentration

Wheeldressing

72% of grinding defects

Suspected Cause Action Item Responsible Date Finding

1. Dirt & contamination Daily 5S & PM tasks Tony (T/L) 2/11 Conducting daily. No issues.

2. Grinding wheel set up check

Grinding wheel set up check Tony (T/L) 4/11 Checked out O.K.

3. Manual offset function Check offset function Tony (T/L) 4/11 Checked out O.K.

4. Spindle bearing loose Check spindle bearing Ed (Maint) 5/11 Loose bearing cap. Tightened.

5. Clamp & locator damage Check camp & locator Ed (Maint) 5/11 Nothing abnormal.

6. Grinding wheel balance Check grinding wheel Tony (T/L) 5/11 Nothing abnormal.

7. Incoming part dimensions Measure part dimensions Janet (QC) 9/11 Within spec.

8. Poor material hardness Measure hardness Janet (QC) 9/11 Within spec.

9. Abnormal surface finish spec. Check surface finish Janet (QC) 9/11 Within spec.

10 Grinding conditions abnormal Check grinding conditions Mary (Eng) 13/1

1 Nothing abnormal.

11. Coolant concentration Measure concentration Joe (Maint) 13/11 Contaminated tanks. Replaced.

12. Wheel dressing check Check conditions Mary (Eng) 13/11 Nothing abnormal.

0123456789

10

2 3 4 5 6 7 8 9 10 11 12 13

Dates of action items & results confirmation

Def

ect

%

Finish grinderRough grinderSpindle bearing

tightened

Coolant replaced

Target level

YTDAverage

Pending29/11Tom Engineering Mgr.4. Discuss bearing issue with OEM

In-process22/11Tom Engineering Mgr.3. Communicate findings to similar plants

Complete15/11Ops & maintenance2. Establish bearing check PM

Complete15/11Ops & maintenance1. Establish coolant check PM

StatusDateResponsibilityInvestigation Item

Pending29/11Tom Engineering Mgr.4. Discuss bearing issue with OEM

In-process22/11Tom Engineering Mgr.3. Communicate findings to similar plants

Complete15/11Ops & maintenance2. Establish bearing check PM

Complete15/11Ops & maintenance1. Establish coolant check PM

StatusDateResponsibilityInvestigation Item

Theme: Reducing Scrap in the Machine ShopTo: Chuck O.From: Art S.Date: 10/12/06

Ref: Sobek & Smalley 2008 pp48-49

Page 55: A3 Thinking Masterclass by John Kiff

Title: Increasing IPUD* in New and Used Car Sales

Current Situation: Our dealer vs a basket of 16 UK Brand X dealers, 14 have BMs, All on same package (VB) Data includes commission from Finance, PPP & GAP but excludes Safeguard

New & Used remuneration package: £50/unit - but NB no incentive to retain GPFinance:10% commission on our earnings excl VB. GAP & Safeguard: £50 / unit over 5

Preferred supplier: poor on Used albeit criteria eased July 09. Slow systems so use Black Horse

Owner: Brian Edwards Version No. 5 Date: 03/08/09

Background: New and Used sales under volume pressure Limited scope to increase metal profit (new) or margin (used). Purpose: To close Sales Dept profit gap by increasing IPUD* from financial products

Proposed Countermeasures:

Topic of Analysis Who + Support When by: Status @ 03/08/09

Next Step

Understand process used by Tony vs others in team BE 12/06 Persistence, detail Evaluate more

Understand why team use Black Horse vs VM BE 12/06 Now paid on VB None

Understand Used Finance rate spread BE 15/06 Now paid on VB None

Develop pros & cons for Business Manager BE 30/08 In progress Ongoing

Follow Up Issues:Checking routine – simple, quick and visual - HOW? – Phoning a sample of customers?

Effect Confirmation:Graphs of plan vs actual – improvement in IPUD for 2009 using Our numbers not VM – need easy method of measuring monthly or at least quarterly. Discuss with Steve about getting easily from Close It. Simonto propose Pinnacle method by 04/08/09

Analysis:

Problem statement: IPUD is too low and needs urgent increase

Cause Deliverable Counter-measure

Description Target Who + Support

When by

Status @03/08/09

Next Step

A, B & C 1. Fully trained & FSA regulated team

Mentor F&I online training and qualification. 10 exams per person – needs a plan / cadence (NB new starter allowed 2 weeks)

All sales team qualified

BE & SJH 31/08/09DONE

Checks+12month tests

A(i) & (ii)

2. Increased GAP penetration and standard process

Develop std sales process (inc JI) for selling GAP to incl. Close-It based deal presenter (nearly ready) with assumptive inclusion of GAP. Routine checking std. process by BE/IC.Identification of training needs by salesperson

Standard in placeChecking process in place

BE + IC & SJH

31/08/09 Not started Develop plan. Date with SJH needed

A(i) & (ii)

3. Increased GAP penetration for Katrina

Alex to share best practice with Katrina but involve Tony when understand his ‘best practice’

Kat to 20% BE 31/09/09 Kat selling GAP, Alex S’guard

Monitor progress for both

A (i) 4. Increase GAP penetration

Double documenting at handover – one without GAP etc., one with, to show cost/month diff to protect

100% of relevant docs

BE Put back to 30/09/09

GMAC sys teething troubles

Spk SJH re payouts

A (i) 5. Increase GAP penetration

‘Unprotected’ Stamped on each Finance Document (or IDD for Black Horse) where not taking GAP already

100% of relevant docs

BE 12/06/09 (Actual 14/07)

DONE Ongoing checking

B (i), (ii) & (iii)

6. Improved rate spread

Decide, set & communicate new HQ base rate policy. Develop std. work JI for process & new starters. Identify training esp.objectionhandling

Raise to 1.00%

BE + BF & SJH

JIs by 30/09/0931/12/09

Paying on VB + New rate 14/07

Check expected increase

C. 7. Increase Used finance penetration

Increase finance awareness on website so customer can propose self on-line

finance@ hutchings.

BE 05/06/09DONE Ongoing

checking

C(i) & (ii)

8. Increase Used finance penetration

Develop standard process and identify training needs – esp. Alex & Gavin

Both to 30%

BE + IC 31/12/09 Begun, ongoing

Check progress

C (iii) 9. Each (New as well as) Used sales person reaching target on all financial products

Different remuneration method – based on IPUD –as per Sewards. Pay on VB ASAP to max. oppty. to do bus with GMAC but must sell 100% products to100% customers100% of timeStandard process VITAL

New method. All Used sales team > XX% pen

BE + BF & SJH & IC

New method 30/09/09Target by 31/12

Not started Develop plan & new method

C 10. Improved S/guard revenue (& IPUD) by Alex & Lewis

Katrina to share best practice with Alex and Lewis. Maybe involve Tony

Alex to15% Lewis 15%

BE + IC 30/09/09 Alex now selling S’guard

Check progress for both

(*Income Per Unit Delivered)

A. New car GAP too low: Causes: i) Lack of standard process ii) Training

B. New & Used Rate Spread too low: Causes: i) No policy, ii) Lack of std process iii) Training

C. Used Fin Pen too low: Causes: i) Lack of std. process ii) Training inc negotiation skills, iii) Remuneration

Our dealer Average Max

Target/Goal – and thus the gap to close is: £38,000:IPUD (£/unit)(inc VB, excl Safeguard)

Current VM view of“a good job”

OurTarget

Gap to Close(Target – Current)

Close By: Rate of Climb / monthJuly to December:

New £167 £350 £280 £113 31/12/09 7%-10%-9%-10%-8%-5%

Used £112 £250 £230 £118 31/12/09 14%-19%-11%-10%-5%-9%

Circulation: John Bill Steve Simon Nick

Page 56: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Page 57: A3 Thinking Masterclass by John Kiff

www.leanuk.orgLean Enterprise Academy57

Page 58: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Agenda

What is an A3? Working through Porter’s A3 Reading, reviewing and responding to A3s Applying A3 Thinking to your own work

Problem Solving Draft Problem Situation Present / Review Revise Extend to Analysis and Countermeasures…

Discuss the use of the A3 Process also for: Proposals Status Reports

Lean Enterprise Academy58

Page 59: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A3 Practice ExerciseAs Author – Create Your A3

Draft the Problem Situation portion of your A3:Title, Background,

Current Condition, Goal

Lean Enterprise Academy59

Page 60: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Pick Up A Problem WorksheetTry to focus on a specific observable or measurable problem rather than something that

is too big or complex to tackle directly.

What is the problem you want to address (high level description)?

Why do you think it is a problem?

How would you describe the problem (try to state in performance or output terms if possible)?

Why do you think this problem needs to be addressed now?

60 Lean Enterprise Academy

Page 61: A3 Thinking Masterclass by John Kiff

www.leanuk.org

How do you know?

What is the purpose? WHY? Background

What is problem or need? WHY? Current Conditions, Goal

What is the cause or constraint? WHY? Analysis

What is the plan? WHY? Countermeasures, Plan

What is the proof? WHY? Plan, Follow Up

Problem Solving Thinking

61

A3 Creation

Lean Enterprise Academy

Page 62: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Level of Problem Solving Focus

Performance to Purpose: Not delivering to customer or contributing to business as expected

Performance to Plan: Not executing as agreed or completing what is expected

Process Performance: Work not flowing as designed or producing intended outputs or

outcomes

Deviation from Procedure: Operation, task, work method not performed as specified or producing

as intended

Deviation from Standard: Safety, Quality, Timing, Rate, Cost, Technical performance

specifications not met

Lean Enterprise Academy62

Page 63: A3 Thinking Masterclass by John Kiff

Analysis

Countermeasures

Plan

Follow-up

Background

Goal

Purpose: What is the business reason for choosing this issue?

Overall Situation: What is the strategic, operational, historical or organizational context of the situation?

Theme: Review Questions For Problem Solving A3s

Ref: Developed from Sobek & Smalley 2008 pp 50 and David Verble

Current Situation What is the Problem or Need - the Gap in Performance? What is happening now versus what needs to be

happening or hat you want to be happening? What are the specific conditions that indicate you have

a problem or need, where and how much? Show the facts visually with charts, graphs, maps

Is there a clear goal or target (gap?) What, specifically, is to be accomplished? How will this goal be measured or evaluated? What will improve, by how much, and when?

What are the options for addressing the gaps & improving performance in situation?

How do they compare in effectiveness, feasibility & potential impact?

What are their relative costs and benefits? Which do you recommend and why? Show how your proposed actions will address the

causes of the gaps or constraints in the situation.

What will be main actions & outcomes in the implementation process & in what sequence?

What support & resources will be required? Who will be responsible for what, when & how much? When will progress & impact be reviewed & by whom? Use a Gantt chart to display actions, steps, outcomes,

timelines & roles. How will you measure the effectiveness of the

countermeasures? Does the check item align with the previous goal

statement?

When and how you will know if plans have been followed & the actions have had the impact needed?

What related issues or unintended consequences do you anticipated & what are your contingencies?

What processes will you use to enable, assure & sustain success

What do the specifics of the issues in related work processes (location, patterns, trends, factors) indicate about why the performance gap or need exists?

What conditions or occurrences are preventing you from achieving the goals?

Use the simplest problem analysis tool that will suffice to show cause-effect down to root cause. From 5 Whys, to 7 QC tools (fish-bones, analysis trees, Pareto charts) to sophisticated SPC or other tools as needed.

What are you talking about & why?

Where do things stand now?

What specific outcome is required?

Why does the problem or need exist?

What do you propose & why?

Specifically how will you implement? 4Ws1H

How will you assure ongoing PDCA?

Page 64: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A3 Practice ExerciseAs Author – Present Your A3

In groups of 3:Author/PresenterResponder/Coach

Observer

Lean Enterprise Academy64

Page 65: A3 Thinking Masterclass by John Kiff

www.leanuk.org

It Takes Two (or More) to A3…A3 Review Roles

Each member at each table to rotate: A3 Author-Presenter

The owner of the problem who takes initiative to understand the situation dispassionately and lay out a proposal

Designated Reviewer-Responders / Coach Anyone who receives questions, requests, is affected or

otherwise needs to know, or who must authorize the action

Observer-Commentator To observe and comment on both the A3 presentation

and the coaching

65 Lean Enterprise Academy

Page 66: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A3 Practice - Presenting

A3 Practice – as Author-Presenter 5 minute presentation, 5 minutes Q&A Walk through what’s on your A3

Tell the story as you have it written Don’t skip over anything Add additional detail only if it need to full describe

the problem situation You need to get your story out…

What do you need to emphasize?

66 Lean Enterprise Academy

Page 67: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A3 Practice – ReviewingListening and Responding

Lean Enterprise Academy67

Protocol – “A3 Etiquette”: Seek first to understand by listening

Let the presenter present, only stop him/her in if there is something you completely don’t get

Ask purely factual questions first (Pure Inquiry through open-ended questions)

Then more probing questions to help the author share the facts as he/she knows them Is he/she focused on the Real Problem?

Is why the problem is being addressed NOW clear?

Page 68: A3 Thinking Masterclass by John Kiff

www.leanuk.org

What to “see” from the Problem Situation Section as Reviewer

Can I see the “real” problem through the “Noise” in the Situation as you described it

Can I see the gap you are trying to close? Do I understand why you need/want to close

the gap? Can I see the specific problem(s) you are going

to have to address to close the gap? Do I understand how much of the gap you are

going to try to close…this time?

Lean Enterprise Academy68

Page 69: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A3 Coaching Through Questioning - What it’s Not:

Not “Guess what? I think the real problem or the best solution is…” Not “20 Questions”

Not just trying to shoot holes, trying to find “gotcha” errors. “I won’t be fooled again…!”

Not just a big ‘STOP’ sign. “Why?” should not mean putting the brakes on

initiative or taking over responsibility

69 Lean Enterprise Academy

Page 70: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A3 Practice ExerciseAs Author – Revise Your A3

Revise the Problem Situationportion of your A3:

Title, Background, Current Condition, Goal

to make the Problem Statement as clear as you can

Lean Enterprise Academy70

Page 71: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Breaking down the problem (gap)

Breaking down large, vague, overall problems…for example:

Quality Spills

Expediting Costs

Late Deliveries

Scrap

Overtime

…into specific abnormalities at specific places in the way work is done that can be addressed directly at the gemba.

Wrong parts installed in final assembly averaging 19 per day

1800 Quarterly Reports overnight-ed to investors this quarter

Average 14 pizzas per night delivered after 30 minutes from store 4

19% of pies made last night rejected for lumps in filling

Overtime for pilots and attendants on east coast flights 21% over budget this month

Lean Enterprise Academy71

Problem 1

Large Vague

Problem

Problem 2

Problem 4

Problem 3

Page 72: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Questioning Mind

72

Lean is not acting on assumptions or jumping to conclusions.

Lean Enterprise Academy

What we actually know?(About the problem)

How to confirm it? (How do we know it?)

What do we need to know? How can we learn it?

Page 73: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Two Levels of Cause

Direct Cause An occurrence or

condition that is confirmed to be the reason a specific problem (effect) exists.

It is a link in a cause/effect chain that can be pursued and addressed at the root cause.

Systemic Cause An aspect of the

“design” of the work system that leads to a category of problems or a type of waste in the output of the system.

It can be addressed by an improvement in the design of the work flow.

73 Lean Enterprise Academy

Page 74: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A Good Problem Statement

IS NOT: The simple reverse of your

proposed solution“No one oils the machine”

A lack of something, such as lack of a specific countermeasure“There is no standard work in place”

IS: A problem in performance.

“The bearing wears out too frequently”

Stated as concretely in measurable performance terms as possible.“50% of the time bearings do not last through the standard of 300 hours”

Lean Enterprise Academy74

Page 75: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A3 Practice ExerciseAs Author – Revise Your A3

Analysis sectionTo show the (root) cause(s)

Lean Enterprise Academy75

Page 76: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Cause Investigation

76

Why does this gap between ‘what is’ and ‘what should or needs to be’ exist?

RealProblem

You’re Tackling

Look. Ask. Watch. Think about and through the situation

If you don’t see a likely cause then what are possible causes?

A B C D E

3 1 2X X

Check them. Observe them. Track them. Eliminate when you can. Prioritize and Test. Disprove or Confirm

You have a cause when you can show there is a link between the existence of your problem (Gap-or part of it) and the existence of another occurrence or condition

The best way to demonstrate a Cause Effect Link is to remove or block the Cause. If the Gap (or part of it) goes away you have found a Cause of the Problem

Potential Causes

Lean Enterprise Academy

Page 77: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Root Cause Investigation

77

If you eliminate the cause you found is there a chance it will come back? Then you’re NOT through

You’ve got to ask Why? Again. You’ve got to find the cause of your direct cause.

Effect CauseHow? Repeat the basic cause Investigation process.

Treat the direct cause of the problem as a problem itself and investigate and test until you can prove a Cause - Effect Link

ProblemCauseX

ProblemCause Cause

Effect CauseProblem

Cause CauseXXX XX

Lean Enterprise Academy

Page 78: A3 Thinking Masterclass by John Kiff

www.leanuk.orgLean Enterprise Academy78

Root Cause Investigation: 5 Whys

The machine stopped

The overload circuit tripped

The pump was seized up

Metal shavings damaged the shaft

Shavings entered lubrication system

No filter on the inlet pipe

Why?

Why?

Why?

Why?

Why?

Page 79: A3 Thinking Masterclass by John Kiff

www.leanuk.orgLean Enterprise Academy79

To check 5-Why chain read in reverse with the “Therefore” test

The machine stopped

Metal shavings damaged the shaft

Shavings entered lubrication system

No filter on the inlet pipe

Why?

Why?

Why?

Why?

Why?Therefore

Therefore

Therefore

Therefore

ThereforeThe overload circuit tripped

The pump seized up

Page 80: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A3 Practice ExerciseAs Author – Present Your A3

Present-Review Again

Lean Enterprise Academy80

Page 81: A3 Thinking Masterclass by John Kiff

www.leanuk.org

As Reviewer, What to Look and Listen for in a Cause/Constraint Analysis…

Do I have a clear image of the problem you are trying to investigate by asking “Why?”

Do I understand what related work processes you are looking in to find causes and constraints for the problem?

Can I see the cause/effect links to the problem that you are claiming?

Am I confident you have found root cause(s)?

Do I sense there is more you need to know?

Lean Enterprise Academy81

Page 82: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Helpful CoachingIs NOT Asking

▲ Is that really the problem you need to solve?

▲ Why do you think that’s a problem?

▲ Why don’t you look at _____?

▲ How is that your root cause?

▲ Have you thought about trying ____?

▲ Are you sure that’s going to work?

IS Asking Exactly what’s the problem you

are trying to solve?

Can you describe what’s happening vs. what should be?

What have you looked at or heard?

What makes you sure you’ve got a cause/effect link?

What have you thought of trying?

What impact do you expect that CM to have?

Lean Enterprise Academy82

Page 83: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A3 Practice ExerciseAs Author – Revise Your A3

Develop the section where you Evaluate and

Recommend Countermeasures

Lean Enterprise Academy83

Page 84: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Problems and Solutions and Countermeasures

The Solution? To solve = to find the answer…..the One correct answer

A Countermeasure? To resolve = to find and try out an action that seems likely to reduce the

problem condition (the GAP) A temporary measure “fixes” a problem by blocking or working around its impact A permanent countermeasure eliminates a problem by removing its cause

Criteria for Evaluating Potential Countermeasures (H-M-L) Effectiveness: Extent to which an action will work as a way to eliminate a

cause and resolve the problem Feasibility: Extent to which an action can be taken with reasonable effort

and resources Impact: Extent to which an action will have the intended result with

minimum impact or creating problems in other areas (LOW is desirable)

84 Lean Enterprise Academy

Page 85: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Cause Countermeasure Description EFF FES IMP Cost/Benefit EVAL

EFF =Effectiveness, FES =Feasibility, IMP =Impact

H = High, M = Medium, L = Low

85

EVAL = EvaluationBest Good Questionable Not Good

Lean Enterprise Academy

Page 86: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Manage your plan like a Value Stream

Focus on the timing and deliverables of the plan Manage the exceptions Ask “why” things went wrong

in order to address root cause Make sure someone is responsible Ensure that you perform reviews

(even when things go wrong)

Lean Enterprise Academy86

Page 87: A3 Thinking Masterclass by John Kiff

www.leanuk.org87 Lean Enterprise Academy

Page 88: A3 Thinking Masterclass by John Kiff

88

Site Level Objective

Value Stream Manager

Site Manager

Date:

Harry BamfordDave Johnson

02/02Value Stream Plan: After Sales (90 Days)

Signatures

Site ManagerD. Johnson

SalesT. Plant

After SalesH. Bamford

PartsA. Harvey

PersonResponsible

RelatedIndividuals/Departments

Review Schedule (Monthly)With weekly progressWeekly Schedule

2 3 4 51 6 7 8 9 10 11 12

ValueStream

LoopNo

Value Stream Goals

(“Deliverable”)

Target(“Metric”)

Proposed Start

Proposed Completion

Actual Start

Actual Completion

Review (Major Milestones)

Review (Major Milestones) Complete

On Target

Behind Target

TroubleX

“right first time, ontime, at the right

price.”Quality = 94%

Delivery on Time = 97%

CF Combined = 92%Productivity = 135%Lead Time = 4 days

(no loan car or collection &

delivery

4.1

4.2

4.3

4CustomerContact

& Handover

Establish flow of work for invoicing after “Road Test”Establish handover slots to eliminate waiting

Establish a handover area so cust find cars

Invoices 100% C/A & available

C/T = 10 MinsSlot levelling

Eliminate waiting for customers

T. Plant Wco, Tch,SA, Parts, Fi

T. Plant SA

J. Butterworth SA, Fi

2.1

2.2

2CustomerArrival& Pre-

Diagnosis

Develop std pre-diagnosis process

Eliminate tech waiting for authority

C/T=10 min95% work known

18 to 0 mins

H. Whittle Parts

H. Whittle Parts, Wco,Tch

1.2

1.3

1.4

1.1

1Pro

active reminder

& Customer Booking

Establish telephone pre-diagnosis

Create visual capacity management process

Book customers to arrival slots

Develop a proactive booking process

100% of cust.Level, Retention

Data 100% C/A at booking

Slot booking implemented

Plan v Act = 5% variation

T. Plant SA, Adm

T. Plant Tch, Wco

H. Whittle Tch, Wco, SA

T. Plant Tch, Wco

3.2

3.3

3.4

3.5

3.6

3.1

3Pacemaker

Physicalflow of

car

H. Bamford Adm PartsSA Tch Wco

30 min cyclesCF Quality = 100%

Develop standardised work & rapid f’back for “road test”

CF Quality = 100%

Develop standardised work for “valet”

CF Quality = 100%

Establish FIFO rules between “road test”and “valet”

Min = 0 carsMax = 3 cars

Develop pull between “physical P/D” & “carry out work”

Min = 0 carsMax = 3 cars

Pre-pick parts, develop pull &deliver to technicians

10 minutes to 0 minutes

Develop standardised work for “carry out work” so cars flow

H. Whittle Sales, PartsSA, Val

M. Rushton Tch Wco

J.Butterworth Tch, Wco

J.Butterworth Wco, Tch,SA, Parts

A. Harvey Parts, Tch,Wco

ReviewerDJ

60 Days

Reviewer DJ

30 DaysFeb 28

Feb 28

ReviewerDJ

90 Days

Feb 28

Feb 28

Feb 28

Feb 28

Feb 28

Feb 28

Mar 28

Mar 28

Mar 28

Mar 28

Mar 28

Mar 28

Mar 28Mar 28

Mar 28

Mar 28

Mar 28

Mar 28

Mar 28

Mar 28

Mar 28

Mar 28

April 28

April 28

April 28

April 28

April 28

April 28

Mar 28April 28

April 28

April 28

April 28

April 28

April 28

April 28

April 28

April 28

Page 89: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A3 Practice ExerciseAs Author – Present Your A3

Present-Review AgainTo include the Recommendations

/Countermeasures

Lean Enterprise Academy89

Page 90: A3 Thinking Masterclass by John Kiff

www.leanuk.org

The A3 Process

Is the purpose to describe your ideas and solution in order… to convince?

or to engage?

Convince means to “sell” or “get buy in” Engage means to “become part of”

to invite to take part in the thinking

and the experiment based on it

90 Lean Enterprise Academy

Page 91: A3 Thinking Masterclass by John Kiff

www.leanuk.org

As Reviewer: What to look for in Recommendations for Countermeasures Do I see the link between your proposed

countermeasures and the causes they are intended to address?

Do I feel you have considered all the options for addressing the causes?

Do your recommended countermeasures make sense as the way to address the causes and resolve the problem?

Am I confident these countermeasures will accomplish your goals and achieve your purpose for addressing the problem?

91 Lean Enterprise Academy

Page 92: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Three common problems in getting proposals approved & objectives achieved Assuming that once you think you have the “best

solution,” Everyone will agree, and Therefore – problem solved, job done

Thinking that defining the solution well is a “plan” Assuming that, once you’ve got a plan, everything will

go according to that plan Throwing the plan out the window when things go wrong Trying to stick to the plan no matter what

In other words: Not completing the PDCA cycle

92 Lean Enterprise Academy

Page 93: A3 Thinking Masterclass by John Kiff

www.leanuk.org

What does it take to actually resolve a problem?

The real problem solving begins rather than ends with implementation of the plan

You usually have to solve a lot of problems to actually* solve a problem

That’s where the “continuous” part comes in

Lean Enterprise Academy93

* ‘Actually’ means you see that what you did made a difference (moved the needle)

in the way you intended.

Page 94: A3 Thinking Masterclass by John Kiff

www.leanuk.org94

GAP

Current Condition

Target Condition

CAUSE

CONSTRAINT

BARRIERA PC D

A PC D

Remove

Overcome

Eliminate

A PC D

A PC D

You areHere

Need tobe Here

Lean Enterprise Academy

Page 95: A3 Thinking Masterclass by John Kiff

www.leanuk.org

A3 Practice Exercise

Reflections at this stage?

Lean Enterprise Academy95

Page 96: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Agenda

What is an A3? Working through Porter’s A3 Reading, reviewing and responding to A3s Applying A3 Thinking to your own work

Problem Solving Draft Problem Situation Present / Review Revise Extend to Analysis and Countermeasures…

Discuss the use of the A3 Process also for: Proposals Status Reports

Lean Enterprise Academy96

Page 97: A3 Thinking Masterclass by John Kiff

www.leanuk.orgLean Enterprise Academy97

Plan Do, Check, ActBackground

Current Situation

Proposal

Analysis/Evaluation of alternatives

Plan Details

Unresolved Issues (optional)

Implementation Schedule

Storyline of the Proposal A3Theme:

Page 98: A3 Thinking Masterclass by John Kiff

www.leanuk.orgLean Enterprise Academy98

Page 99: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Implementation Schedule

Overall

Background

Analysis & Proposal

Is there a clear theme for the report that reflects the contents?

Is the topic relevant to the organisation’s objectives? Is there any other reason for working on this topic

(e.g. learning purposes)?

Theme: Review Questions For Proposal A3s

Ref: Sobek & Smalley 2008 pp 81

Current Situation

What information does the audience need to find my proposal compelling?

Is the current condition clear & logically depicted in a visual manner?

How could the current condition be made more clear for the audience?

Does the current condition frame the problem or situation clearly, accurately and objectively?

Is the problem quantified in some manner or is it too qualitative?

Is there a clear goal or target? What, specifically, is to be accomplished? How will this goal be measured or evaluated? What will improve, by how much, and when? Is the analysis detailed enough and did it probe deeply

enough on the right issues? Has cause & effect been demonstrated or linked in

some manner?

Are any key activities or steps missing? Is the implementation schedule clear and reasonable? How will the effects of implementation be verified? How will a reflection meeting be held and when? What budget or timing constraints exist?

Who is the audience? Does this report give them all the information necessary to make a good decision?

What personnel are affected by this proposal? Have they all been consulted?

Is the report clean, neat and organised with good flow?

Is it readable and aesthetically pleasing? Would I approve this proposal based only on the

information contained in it?

Unresolved Issues (Optional)

What problems or constraints might exist? What needs to be considered but cannot be resolved

at the moment? What remains to be discussed about this topic?

Page 100: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Storyline of the Status A3

Lean Enterprise Academy100

Background

Current Condition

Results

Remaining Issues/Action Items

Theme:

Page 101: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Stamping division goals require reductions in lead-time, and inventory of 25% this fiscal year. Bracket value stream was a push style of operations with long lead-time, excess inventory, over-production, and poor on-time delivery performance. A project was initiated to improve in these dimensions targeting full completion by June 2002.

Acme Stamping Steering: Lead-time & Inventory Reduction Project Status Review 3/6/02

StampingPress

Welding & Assembly Production Cell

Production Control

DailyOrder

6.0days

Production Lead Time

Supplier Customer

Current Condition – March 2002

Key Concepts Implemented:1) Conversion to an improved flow of operations2) Establishment of supermarkets for Raw, WIP, & FG inventory3) Creation of replenishment style pull system with kanban signal4) Creation of a pacemaker cell combining welding & assembly5) Pacing of all work to takt time and hourly count boards6) Creation of detailed standardized work for welding and assembly cell7) Leveling of the production schedule in terms of type and quantity8) Reduction of changeover time at stamping9) Reduction of lot sizes in stamping

2.0days

2.0days

2.0days 54” TT

ShippingPrep Area

Results

DaysLead-time

23.6

Dec.‘01

March‘02

TargetJune ‘02

6.0 5.0

Inventory $$

36K

Dec.‘01

March‘02

TargetJune ‘02

14K 10K

$

PPHOvertime

5

Dec.‘01

March‘02

TargetJune ‘02

.70

Hrs.Productivity (Assy.)

Dec.‘01

March‘02

TargetJune ‘02

12

16 17

On-time delivery

85%

March‘02

TargetJune ‘02

100% 100%

Dec.‘01

Min.Stamping C/O Time

60

March‘02

TargetJune ‘02

3010

Dec.‘01

Remaining Issues / Action Items

CategoryRemainingProblem

Counter-measure

Responsibility & Due Date

Lead-time

Inventory

Delivery

Productivity

Overtime

C/O Time

%

.5 days over goal Reduce stamping WIP PC by 5/30

$4K over goal Purchase parts market PC by 5/30

N/A Maintain performance Operations

1 PPH under goal Eliminate overtime Ops. By 5/30

.7 Hours over goal Eliminate minor stops Maint. By 5/30

20 min. over goal Reduce internal work Eng. By 5/30

Background

From: Sobek, Smalley A3 Thinking

101 Lean Enterprise Academy

Page 102: A3 Thinking Masterclass by John Kiff

Results

Remaining Issues/Future Actions

Background

Current Situation - Progress

Theme: Purchasing Card Implementation StatusTo: Director of AdminFrom: Finance & PurchasingDate: 12/4/07

Ref: Sobek & Smalley 2008 pp 97

Implementing purchasing credit cards for purchases < £500 is expected to bring significant time and cost savings

Purchases < £500 acount for 47% of all purchases, but only 5% of total cost outlay

A new procedure and controls were needed

Implementation strategy Select card issuer Establish policies and controls Conduct training for card users in the facilities, purchasing

and finance departments Conduct pilot programme in same departments

Monthly Schedule

2 3 4 51 6 7 8 9 10 11 12Activity

Get cards with controls issuedConduct training in pilot departments

Mgmt approval

Card issuer selection

Prepare training materials

Develop new policy and procedures

Conduct pilot

Monitor pilot; revise policies, proceduresPilot audit

Report audit results

Training company-wide

Implement company-wide

Notes

Delay due to previous step

Completed faster than expected

Required 3 iterations to get consensusDelay due to previous step

All trained personnel able to make purchasesMidstream ch’nge to procedures caused confusionFeedback from all pilot participants

Eval.

TBD

TBD

TBD

Proposed StartProposed Completion

Actual StartActual Completion

Review (Major Milestones)Review (Major Milestones) Complete

53 associates trained in 3 departments Pilot programme ran for 15 weeks 780 purchases were made during the pilot programme

User Survey 100% of users prefer credit card system over old paper based

system 30% of users report confusion on procedures. Tracking receipts

for telephone purchases problematic Numerous suggestions for improvement gathered No difficulties regarding controls reported

£20

£40

£60

£103

£80

£100

£120

Estimated Costs

Prev.15weeks

£0

£54

£20 £20£18 £21

Pilotpredicted

Pilotactual

More discrepancies occurred when using credit cards – greater than predicted

200

400

600

952

800

1000

1200

Estimated Time (Hrs)

Prev.15weeks

0

1125

187

432

195

620

Pilotpredicted

Pilotactual

1%

2%

3%

4%

5%

Discrepancies

Prev.15weeks

0%Pilot

predictedPilot

actual

1400

PO

Invoice

Activity Status Responsibility

Revise procedures Completed Purchasing

User and managerial review of revised procedures In progress (complete by 21/4) Purchasing

Review and revise training In progress (complete by 30/4) Purchasing

Company-wide training To start 1/5 Training Dept.

Full company implementation To start 2/6 Purchasing

PO

Invoice

Page 103: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Is the theme of the project stated clearly? Does the project relate to the goals of the company? Is the reason why the project was undertaken clear? What other information might be useful for the

audience?

Unresolved Issues/Follow Up Action Items

Background

Theme: Review Questions For Status A3s

Ref: Sobek & Smalley 2008 pp 101

Current Situation

Is the current condition clear & logically depicted in a visual manner?

Does it clearly show what progress has been made or what specific action has been taken?

Does the current condition frame the problem or situation clearly, accurately and objectively?

Is the current condition quantified in some manner or is it too qualitative?

What remaining problems exist in the project? What needs to be done to achieve progress as

planned? What other items need to be conducted to sustain the

gains and ensure success? Who else needs to know about this result?

Results

What results have been obtained in the project so far? Are the results clearly indicated and quantified in

some manner? Has improvement actually taken place? Are these the right metrics to show that improvement

has been made? What else might explain the change in the metrics? Have any areas been adversely affected by the

change(s)? For areas where the improvement is not as great as

expected, is it clear why or why not?

Page 104: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Glass Wall Management

Lean Enterprise Academy104104

Plan

Do

Act

Check

Page 105: A3 Thinking Masterclass by John Kiff

www.leanuk.org

The A3 Tool as a Process for…

Problem Solving Proposing Improvements Standardizing Planning Reporting Reflection Project Management Change Management Alignment and Agreement Organizational Development Mentoring, coaching Developing people

105

All based on PDCA

Lean Enterprise Academy

Page 106: A3 Thinking Masterclass by John Kiff

www.leanuk.org

Final Discussion

What makes a “good A3” good?

What is good use of an A3?

What benefits to an organization do you see in the A3 process?

106 Lean Enterprise Academy

Page 107: A3 Thinking Masterclass by John Kiff

www.leanuk.org

What Makes an A3 a Good One?

It tells a story It contains objective facts, data It “resolves” a problem

But being technically “right” is only half the battle…

Engages and aligns the organization What really makes an A3 a “good one” isn’t the

specific collection of facts and data that tell a perfect problem-solve. A good A3 is a reflection of the dialogue that created it.

107 Lean Enterprise Academy

Page 108: A3 Thinking Masterclass by John Kiff

www.leanuk.org

“Managing to Learn”

Lean Enterprise Academy108

Expectations Review

Page 109: A3 Thinking Masterclass by John Kiff

www.leanuk.org

John Kiff5th November 2013

“Managing to Learn”

A3 Thinking Workshop

Lean Enterprise Academy109