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A3 Management (Part 1 of 2)

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Recorded webinar: http://slidesha.re/1dBBzvM

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This is part 1 of a 2-part series and focuses on the Plan stage of the Plan, Do, Study, Adjust (PDSA) cycle

Published in: Business, Education

A3 Management (Part 1 of 2)

  1. Lean Webinar Series A3 Management – Part I December 6, 2011 Company LOGO
  2. Welcome! To new friends and old across the U.S. (28 states) To our global friends in:       Argentina Australia Canada Germany The Netherlands Romania © 2011 Karen Martin & Associates, LLC 2
  3. GoToWebinar Attendee Interface Viewer Window Control Panel
  4. Two Ways to Listen OR © 2011 Karen Martin & Associates, LLC 4
  5. Two Ways to Ask Questions 1. Raise your hand – you will be un-muted and can ask verbally. 2. Type your question into the question log. © 2011 Karen Martin & Associates, LLC 5
  6. Your Instructor  Early career as a scientist; migrated to quality & operations design in the mid-80’s.  Launched Karen Martin & Associates in 1993.  Provide business performance improvement and Lean transformation support in office, service & knowledge work environments.  Co-author of The Kaizen Event Planner; codeveloper of Metrics-Based Process Mapping: An Excel-Based Solution; author of forthcoming The Outstanding Organization (McGraw-Hill, May 2012).  Instructor in University of California, San Diego’s Lean Enterprise program.  To subscribe to our list: www.ksmartin.com/subscribe © 2011 Karen Martin & Associates, LLC Karen Martin, Principal Karen Martin & Associates, LLC 6
  7. Webinar Schedule Content  11:00 am -12:00 pm PT Q&A  12:00-12:30 pm PT Recorded webinars are available on our Vimeo site: www.vimeo.com/karenmartinassoc Materials are available on our SlideShare site: www.slideshare.com/karenmartin2 To register for our newsletter to learn about future webinars: www.ksmartin.com/subscribe © 2011 Karen Martin & Associates, LLC 7
  8. 2012 Webinars Month Topic January Strategy Deployment (Hoshin Kanri) February A Factory of One – Dan Markovitz March The Outstanding Organization: Achieving Clarity April The Outstanding Organization: Achieving Focus May The Outstanding Organization: Achieving Discipline June The Outstanding Organization: Achieving Engagement The Outstanding Organization by Karen Martin Book launch – May 18, 2012 8
  9. Agenda Part 1 - Tuesday, December 6    A3 Overview “Plan” stage of PDSA Root cause analysis Part 2 – Wednesday, December 7    “Do-Study-Adjust” stages of PDSA How to accelerate building problem owners’ and coaches’ capabilities Common problem-solving pitfalls © 2011 Karen Martin & Associates, LLC 9
  10. For Further Study
  11. Why is problem-solving so challenging? It takes a different kind of thinking to solve a problem than the kind of thinking that produced the problem. — Albert Einstein © 2011 Karen Martin & Associates, LLC 11
  12. What is A3? The core of Toyota’s renowned management system. A structured method for applying the PDSA (plan-do-study-adjust) approach to problemsolving. International designation for 11 x 17” paper. © 2011 Karen Martin & Associates, LLC 12
  13. The A3 Report  A concise “story board” that reflects the problem solver’s discoveries & thought process along the way.  Limited “real estate” develops precise thinking.  A “living document” that reflects the iterative nature of problem-solving and enables organizational learning.  Highly visual – graphics, charts, maps, drawings, etc.  “Making it pretty” isn’t the goal – hand drawn A3s are OK.  Neither the format nor the specific sections are set in stone. © 2011 Karen Martin & Associates, LLC 13
  14. The A3 Report is a Communication, Consensus-Building and Learning Tool The A3 report is a story board that reflects the problem-solving process. It is created as you progress through PDSA, not after. George Koenigsaecker, Leading the Lean Enterprise Transformation. 14
  15. PDSA Cycle – The Scientific Method Plan Analyze results & adjust as appropriate Develop hypothesis & design experiment Adjust Do Study Measure results Conduct experiment
  16. Problem-Solving Steps { Plan At least 50% of the total time 1. Identify the problem 2. Explore the problem deeply  3. Consider potential solutions  Hypothesize 4. Test solutions Do 5. 6. Study Adjust 7. © 2011 Karen Martin & Associates, LLC What’s the true root cause?  Confirm hypothesis Implement solution(s) Measure results  Did the hypothesis prove out? Adjust as needed; prepare to improve again 16
  17. Sample A3 Report Plan Do, Study, Adjust 17
  18. Benefits of the A3  Creates consistency in how organizations go about solving problems, managing projects, and making decisions.  Builds critical thinking and problemsolving capabilities across the entire organization.  Forces a holistic/comprehensive view of the problem and solutions; requires collaborative problem-solving.  Reduction in “silo-ism”  Thorough root cause analyses reduce the risk of “band-aid” solutions. © 2011 Karen Martin & Associates, LLC 18
  19. Benefits of the A3 (continued)  Ownership role drives accountability and reduces risk of “it’s everything else’s problem.”  Stimulates data-driven decisions.  Fairness and accountability replace blame and deceit.  Transparency re: problems spawns a commitment to action.  Develops deep organizational capabilities. © 2011 Karen Martin & Associates, LLC 19
  20. Common Components of the A3 Report Plan Do, Study, Adjust Theme: ________________________________ Owner: ________________________________ Background Countermeasures / Implementation Plan Current Condition Effect Confirmation Target Condition / Measurable Objectives Follow-up Actions Root Cause & Gap Analysis
  21. A3 Roles & Responsibilities Problem owner   Individual who’s accountable both for the results and the process for achieving results. Problem owners have the authority to engage anyone needed and the responsibility to engage all relevant parties. Coach   Person teaching the owner the problemsolving process. Typically the owner’s direct supervisor. © 2011 Karen Martin & Associates, LLC 21
  22. Common Components of the A3 Report Plan Theme: ________________________________ Background Do, Study, Adjust Owner: ________________________________ Countermeasures / Implementation Plan Current Condition Effect Confirmation Target Condition / Measurable Objectives Follow-up Actions Root Cause & Gap Analysis
  23. Common Components of the A3 Report Plan Theme: ________________________________ Background Do, Study, Adjust Owner: ________________________________ Countermeasures / Implementation Plan Current Condition Effect Confirmation Target Condition / Measurable Objectives Follow-up Actions Root Cause & Gap Analysis
  24. Coach / Mentor’s Role Assure problem is relevant to the organization’s annual business goals.  Focus resources on the highest priority problems. © 2011 Karen Martin & Associates, LLC 24
  25. The A3 Process: Define the Theme What is our area of focus? Articulating the right theme will force you to focus on the right problem. Should be closely aligned with organizational goals to avoid spending limited time and resources on trivial issues. Avoid judging, concluding re: cause, or offering solutions.  E.g.: Flawed order entry process vs. Streamline order entry process © 2011 Karen Martin & Associates, LLC 25
  26. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Study, Adjust Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? (visual) • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
  27. The A3 Process: Background Include a problem statement  State the problem; do not offer a solution Background – information for understanding the importance and extent of the problem.     How does the problem relate to company goals? How was the problem discovered? How long has it been a problem? What evidence demonstrates that there’s a problem? What degree of variation exists currently compared to a previous state? Tailor information for the audience. Present information visually. “Sell” the need for improvement; create a sense of urgency. © 2011 Karen Martin & Associates, LLC 27
  28. Sample Background Material sss FY 2008 FY 2009 FY 2010 Gray – highest industry quality scores Purple – average industry quality scores (benchmark) Blue – client quality scores 28
  29. Sample Background Material 0 0 29
  30. Coach / Mentor’s Role Ask probing questions to assure proper background has been obtained and depicted as concisely as possible.  Aiming for emotional impact – why is this a problem? Don’t tell the problem owner what to include. Teach visual display options if owner is unfamiliar with them. © 2009 Karen Martin & Associates 30
  31. Potential Development Need Become proficient in visual data display options:       Bar charts Histograms Trend / line charts Pie charts Pareto charts Etc. © 2009 Karen Martin & Associates 31
  32. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Study, Adjust Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
  33. The A3 Process: Current Condition Two primary goals   Provide the audience with an overview of the current process. Demonstrate a fact-based understanding of the problem. Content    Provide a visual overview of the current state process or system (strong use of charts, maps, graphs, tables, photos, etc.). Highlight key factors in the current state. Provide evidence of the problem (data)  Avoid qualitative opinions.  Avoid suggesting solutions or judging. © 2011 Karen Martin & Associates, LLC 33
  34. Common Components of the A3 Report Plan Do, Study, Adjust Theme: “What is our area of focus?” Background Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? • Where? (if relevant) Current & Target Conditions • Include pre- and post metrics table Metric Current State Desired Target Condition Projected % Improvement Lead Time Quality Labor Effort Morale/Turnover Inventory Turns Market Share Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Returned Parts Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
  35. Coach / Mentor’s Role Ask probing questions to assure relevant metrics have been selected.   3-5 key performance indicators How will we know if we’d been successful? © 2011 Karen Martin & Associates, LLC 35
  36. Current State Documentation Options  Go to the gemba! – OBSERVE  Performance / audit data  Mapping   Value Stream Maps (VSM) - strategic Metrics-Based Process Mapping (MBPM) – tactical  Spaghetti diagrams  Documentation / job aid review  Videotape / photos  Worker interviews  Work samples  Etc. © 2011 Karen Martin & Associates, LLC 36
  37. Sample A3s – Current State Poor correspondence quality Missing inventory resulting in write-offs
  38. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Study, Adjust Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
  39. The A3 Report: Targets / Measurable Objectives Purpose   How will we know that the improvement has been successful? What standard or basis of comparison will be used? Pointers   Use measurable objectives when possible. Consider how data will be collected and shared to evaluate the effectiveness of the implemented solution(s).  Begin planning for the Effect Confirmation section, but don’t focus on it yet. © 2011 Karen Martin & Associates, LLC 39
  40. Target Condition vs. Effect Confirmation When setting target metrics, begin thinking how you’ll confirm performance (effect confirmation section).  Who? How frequently? How? © 2011 Karen Martin & Associates, LLC 40
  41. Coach / Mentor’s Role Ask probing questions to assure target condition meets business needs. It’s better to set stretch objectives and fall a little short, than to set objectives that you’re sure you’ll hit. © 2011 Karen Martin & Associates, LLC 41
  42. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Study, Adjust Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
  43. The A3 Report: Root Cause Analysis Show the root cause of the problem(s) identified in the current state. Separate symptoms and opinions from causeand-effect determination. Consider which techniques will be most useful in gaining root cause insight. Identify additional tests, if needed, to establish level of certainty re: cause and effect. Summarize your findings visually. © 2011 Karen Martin & Associates, LLC 43
  44. Root Cause Analysis (RCA) RCA is necessary to:     Avoid jumping to conclusions. Avoid creating “band-aid” fixes (addressing only the symptoms). Select proper countermeasures. Design and implement lasting solutions that truly eliminate the problem. © 2011 Karen Martin & Associates, LLC 44
  45. Root Cause Analysis Tools Simple problems   Five Why’s Problem Analysis Tree More complex problems    Brainstorm causes (fishbone) Tally frequency of most likely causes (check sheet) Identify relevant few (Pareto analysis) for countermeasure development © 2011 Karen Martin & Associates, LLC If necessary 45
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  47. Coach / Mentor’s Role Teach root cause analysis tools if owner isn’t yet proficient. (mentor) Ask probing questions to make sure true root cause has been found. (coach) © 2011 Karen Martin & Associates, LLC 47
  48. Nailing the Plan phase of PDSA is the most important step in the entire problem-solving process. © 2011 Karen Martin & Associates, LLC 48
  49. © 2011 Karen Martin & Associates, LLC 49
  50. Tomorrow – Part 2 – Do, Study, Adjust Plan Theme: ________________________________ Background Do, Study, Adjust Owner: ________________________________ Countermeasures / Implementation Plan Current Condition Effect Confirmation Target Condition / Measurable Objectives Follow-up Actions Root Cause & Gap Analysis
  51. In Summary A3 reports should become a standardized form of currency for problem-solving, dialogue, and decision-making in your organization– creating an organization of “scientists” who continually improve operations and achieve results through constant learning from the work at hand. — John Shook, Managing to Learn © 2011 Karen Martin & Associates, LLC 51
  52. Your Questions How long developing a tactical A3 take (3 levels of A3)? Who should be involved in developing A3? Please provide examples of healthcare organizations where A3 has been used successfully to achieve improvement. © 2011 Karen Martin & Associates, LLC 52
  53. For Further Questions Karen Martin, Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Connect, learn, and thought-share Monthly newsletter: www.ksmartin.com/subscribe 53

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