www.leanuk.org John Kiff 5 th November 2013 “Managing to Learn” A3 Thinking Workshop Lean Enterprise Academy 1
Nov 01, 2014
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John Kiff5th November 2013
“Managing to Learn”
A3 Thinking Workshop
Lean Enterprise Academy1
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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
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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
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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
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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
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Expectations
Lean Enterprise Academy6
This workshop will have been a success & made good use of my time if…
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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
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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
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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”
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Plan Do, Check, Act
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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
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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
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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
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Ref: John Shook: Leadership for Value Stream Management
Get the work done AND
develop your people at the SAME time
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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
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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…
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Solving Problems
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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?
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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
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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
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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
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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
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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?
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Questioning Mind
22
Lean is not acting on assumptions or jumping to conclusions.
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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?
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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
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The Problem with Problem Solving
Our Natural Human Tendency?
Lean Enterprise Academy24
Perception of a
Problem
The SOLUTION
Facts
Black Hole
FactsImpressions & Assumptions
Theory
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How we can solve problems more effectively?
Ask questions to help ourselves to see:What is actually happening?What do I actually know?
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The Real or Main
ProblemA SOLUTION
Impressions & Assumptions
Theory
FactsFactsFactsFactsFactsFactsFacts
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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:
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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.”
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Assumptions:
Interpretation:
Impression:
Experience:
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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
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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
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What is a Problem?
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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)
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“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
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What is the GAP? How can you measure it?
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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
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CausedGAP
CreatedGAP
A Gap: The two types of Gaps:
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Exactly what is and what is not the problem?
Clarify the Problem
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Technical Documents
Office Documents
JobInstructionDocuments
Departments Generating Documents
Types of Documents
Lean Enterprise Academy
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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
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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?
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Porter’s Problem Analysis Tree
Lean Enterprise Academy38
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Porter’s Current State Map
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“Cost overages come from rework,expediting, and overtime – most of which come from errors!”
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Porter’s Problem Analysis Tree
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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?
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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?
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Porter’s Problem Analysis Tree: 3 Root Cause Groupings
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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
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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.
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A
A
B
C
C
?
Lean Enterprise Academy4646
B
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Porter’s Authorized A3:
47
Please read the A3(pages 98-99)
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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
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
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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.
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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!
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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
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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
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
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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
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A3 Practice ExerciseAs Author – Create Your A3
Draft the Problem Situation portion of your A3:Title, Background,
Current Condition, Goal
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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?
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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
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A3 Creation
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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
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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?
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A3 Practice ExerciseAs Author – Present Your A3
In groups of 3:Author/PresenterResponder/Coach
Observer
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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
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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?
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A3 Practice – ReviewingListening and Responding
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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?
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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?
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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
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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
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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
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Problem 1
Large Vague
Problem
Problem 2
Problem 4
Problem 3
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Questioning Mind
72
Lean is not acting on assumptions or jumping to conclusions.
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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?
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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.
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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”
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A3 Practice ExerciseAs Author – Revise Your A3
Analysis sectionTo show the (root) cause(s)
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Cause Investigation
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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
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Root Cause Investigation
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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
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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?
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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
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A3 Practice ExerciseAs Author – Present Your A3
Present-Review Again
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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?
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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?
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A3 Practice ExerciseAs Author – Revise Your A3
Develop the section where you Evaluate and
Recommend Countermeasures
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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)
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Cause Countermeasure Description EFF FES IMP Cost/Benefit EVAL
EFF =Effectiveness, FES =Feasibility, IMP =Impact
H = High, M = Medium, L = Low
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EVAL = EvaluationBest Good Questionable Not Good
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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)
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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
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A3 Practice ExerciseAs Author – Present Your A3
Present-Review AgainTo include the Recommendations
/Countermeasures
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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
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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?
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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
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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
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* ‘Actually’ means you see that what you did made a difference (moved the needle)
in the way you intended.
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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
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A3 Practice Exercise
Reflections at this stage?
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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
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Plan Do, Check, ActBackground
Current Situation
Proposal
Analysis/Evaluation of alternatives
Plan Details
Unresolved Issues (optional)
Implementation Schedule
Storyline of the Proposal A3Theme:
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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?
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Storyline of the Status A3
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Background
Current Condition
Results
Remaining Issues/Action Items
Theme:
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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
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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
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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?
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Glass Wall Management
Lean Enterprise Academy104104
Plan
Do
Act
Check
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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
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All based on PDCA
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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
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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
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“Managing to Learn”
Lean Enterprise Academy108
Expectations Review
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John Kiff5th November 2013
“Managing to Learn”
A3 Thinking Workshop
Lean Enterprise Academy109