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A3 Thinking Masterclass by John Kiff

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shown at the Lean Summit 2013 - Lean Transformation: Frontiers and Fundamentals on 5th, 6th & 7th November

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A3 Thinking Masterclass by John Kiff

  1. 1. www.leanuk.org John Kiff 5th November 2013 “Managing to Learn” A3 Thinking Workshop Lean Enterprise Academy1
  2. 2. 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 forms and uses of the A3 format Lean Enterprise Academy2
  3. 3. 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
  4. 4. www.leanuk.orgLean Enterprise Academy4 Day 1 Agenda Timetable Approach 08.30 – 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
  5. 5. 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
  6. 6. www.leanuk.org Expectations Lean Enterprise Academy6 This workshop will have been a success & made good use of my time if…
  7. 7. 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
  8. 8. 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
  9. 9. www.leanuk.org Background  Problem solving deeply influenced by the methodology developed by Walter Shewhart at Bell Laboratories in the 1930’s  Later adopted and made popular by W. Edwards Deming  Methodology based on Plan-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”
  10. 10. www.leanuk.orgLean Enterprise Academy10 Plan Do, Check, Act
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. 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?
  17. 17. www.leanuk.org Smith’s Problem Handout Brown, 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
  18. 18. 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
  19. 19. 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
  20. 20. www.leanuk.orgLean Enterprise Academy20 I. Background New 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 Conditions Cost 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. Plan Evaluate current vendor Identify new vendor candidates Develop bid package, distribute, and choose winning bid VII. Followup Monitor cost to proposal Review performance at end of one-year contract Put contract up for bid again if performance goals are not met V. Proposed Countermeasures Simplify and improve process performance by choosing one vendor based on competitive bid process DP 6/1/08
  21. 21. 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?
  22. 22. 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?
  23. 23. www.leanuk.org Go See…and Listen 23 “Data is of course important, but I place greater emphasis on facts.” -Taiichi Ohno And 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
  24. 24. 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
  25. 25. 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 Problem A SOLUTION Impressions & Assumptions Theory Facts Facts Facts Facts Facts Facts Facts
  26. 26. 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:
  27. 27. 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:
  28. 28. 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 attempt 2. 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
  29. 29. www.leanuk.orgLean Enterprise Academy29 I. Background Acme 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 DP 6/3/08 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! 2 5 0 Document translation problems could impede plant launch! 5 0 0 Document translations tsunami Current Expansion Now Begin translation Launch 12 months 6 months Translators Engineering Job instructions Office documents Technical engineering document Gen Documents by department Documents by type How high? How variable? How many errors? Is this the right title? Don’t get ahead of yourselves Engineering HR, other IT
  30. 30. 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)
  31. 31. 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
  32. 32. www.leanuk.org What is the GAP? How can you measure it? 32 Lean Enterprise Academy
  33. 33. 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
  34. 34. www.leanuk.org Caused GAP Created GAP A Gap: The two types of Gaps: 34 Lean Enterprise Academy
  35. 35. www.leanuk.org Exactly what is and what is not the problem? Clarify the Problem 35 35 Technical Documents Office Documents Job Instruction Documents Departments Generating Documents Types of Documents Lean Enterprise Academy
  36. 36. 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
  37. 37. www.leanuk.orgLean Enterprise Academy37 A3#3 Support Launch Objectives with Accurate, Timely Document Translation Next Steps IV. Analysis DP 6/6/08 Document translation problems could impede plant launch! I. Background Acme 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% late Long, variable lead times Quality = Much rework >50% Many errors reach customer Overall = Constant expediting Poor quality Much rework Overtime Everyone unhappy Problems in document translation process have not been corrected! 2 5 0 5 0 0 Document translations tsunami Current Expansion Now Begin translation Launch 12 months 6 months Translators Office documents Gen Engineering HR, other Job instructions Office documentsIT Gen Documents by department Documents by type Job instructions Office documents Technical engineering document 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 weeks of countermeasures Volume Delivery and LT problems Error generation 100% Job inst’s Tech eng docs Office docs Current-state map Lostintranslation Lost Translation problems In physical transit In cyberspace In in-basket In out-basket Random causes:  No ability to track  Unclear expectations Large batches of work Confusing formats Random use of vocabulary Written explanations of complex operations Unclear expectations, lack of training Selection Training No standard vocabulary No or poor editing Unclear expectations Uneven and unpredictable workloads Poor original Translator’s skills Wrong technical vocabulary Poorly written or expressed Translator can’t understand original Translator understands original but still poor translation Processcharacteristics andweaknesses Vendor processes Acme internal processes Original document creation Vendor’s document processing variance Translator’s different expertise No quality check No timing check Send to random translators Varying technical expertise Varying English ability Varying document formatting ability Varying skills in writing documents Different vocabulary for same item Varying language used by different shops and depts No central oversight Each shop or department handles independently No monitor of quality or timing Poor process to select vendors No ability to standardise Huge variation in process Random sending to random vendors Have you shown the problem breakdown, clearly? Is the root cause clear?
  38. 38. www.leanuk.org Porter’s Problem Analysis Tree Lean Enterprise Academy38
  39. 39. 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!”
  40. 40. www.leanuk.org Porter’s Problem Analysis Tree Lean Enterprise Academy40
  41. 41. 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
  42. 42. A3#4 Support Launch Objectives with Accurate, Timely Document Translation Next Steps DP 6/13/08 Document translation problems could impede plant launch! I. Background Acme 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% late Long, variable lead times Quality = Much rework >50% Many errors reach customer Overall = Constant expediting Poor quality Much rework Overtime Everyone unhappy Problems in document translation process have not been corrected! 2 5 0 5 0 0 Document translations tsunami Current Expansion Now Begin translation Launch 12 months 6 months Translators Office documents Gen Engineering HR, other Job instructions Office documentsIT Gen Documents by department Documents by type Job instructions Office documents Technical engineering document 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 countermeasure evaluations Porter Next two weeks And target-state map Begin consolidation of plan and overall timeline Porter Next three weeksVolume Delivery and LT problems Error generation 100% Job inst’s Tech eng docs Office docs Current-state map IV. Analysis Lostintranslation Lost Translation problems Large batches Random causses:  No ability to track  Unclear expectations Poor document creation skills Many document formats Random use of technical vocabulary Unclear expectations Written descriptions of complex operations Poor or wrongly skilled translator No or poor editing Unclear expectations Large batches and uneven and unpredictable workloads Target-state map Cause Counter Description Eval. Benefit -measure A B Central document-flow Tracking process 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?
  43. 43. www.leanuk.org Porter’s Problem Analysis Tree: 3 Root Cause Groupings Lean Enterprise Academy43 Lostintranslation Lost Translation problems Lost & never found 5% Lost & found 40% Just stuck 40% Never lost 15% Large batches Random causes:  No ability to track  Unclear expectations Incomprehensible original documents Incorrect or difficult to understand translations (even with clear originals) Poor document creation skills Many document formats Random use of technical vocabulary Unclear expectations Written descriptions of complex operations Poor or wrongly skilled translator No or poor editing Unclear expectations Large batches and uneven and unpredictable workloads 3 common issues: 1) Lost documents, 2) Translation problems due to problematic originals, and 3) Translation problems due to a poor translation process
  44. 44. 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. 44 44 Lean Enterprise Academy
  45. 45. www.leanuk.org45 Lean Enterprise Academy
  46. 46. www.leanuk.org A A B C C ? Lean Enterprise Academy46 46 B
  47. 47. www.leanuk.org Porter’s Authorized A3: 47 Please read the A3 (pages 98-99) Lean Enterprise Academy
  48. 48. www.leanuk.org48 Lean Enterprise Academy
  49. 49. 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
  50. 50. 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
  51. 51. 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
  52. 52. 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
  53. 53. 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
  54. 54. 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 Overall Scrap % 3.2 2.7 2.6 2004 2005 2006 (YTD) 2.3% Goal Current Situation 1 2 3 £K 700 200 86 2004 2005 2006 (YTD) 4 5 6 Scrap by Department Breakdown of Machine Shop Scrap Rates Status* 460150232740 Scrap £K 8.73.70.70.91.5Scrap % Final Grindi ng Rough Grindi ng Drillin g Turnin g Millin g Process *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 than 2% by December 2006 Undersized Shaft defect Contamination Grinding wheel Set up Manual offsets Dimensions Hardness Surface finish MAN MACHINE MATERIAL METHOD Spindle Clamp & locator Grinding wheel Grinding conditions Coolant concentration Wheel dressing 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) 13/1 1 Contaminated tanks. Replaced. 12. Wheel dressing check Check conditions Mary (Eng) 13/1 1 Nothing abnormal. 0 1 2 3 4 5 6 7 8 9 10 2 3 4 5 6 7 8 9 10 11 12 13 Dates of action items & results confirmation Defect% Finish grinder Rough grinderSpindle bearing tightened Coolant replaced Target level YTD Average 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 Shop To: Chuck O. From: Art S. Date: 10/12/06 Ref: Sobek & Smalley 2008 pp48-49
  55. 55. 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 GP Finance: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 31/08/09 DONE Checks+1 2month 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 place Checking 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 30/09/09 31/12/09 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 05/06/09 DONE 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 time Standard process VITAL New method. All Used sales team > XX% pen BE + BF & SJH & IC New method 30/09/09 Target 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” Our Target Gap to Close (Target – Current) Close By: Rate of Climb / month July 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
  56. 56. www.leanuk.org
  57. 57. www.leanuk.orgLean Enterprise Academy57
  58. 58. 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
  59. 59. www.leanuk.org A3 Practice Exercise As Author – Create Your A3 Draft the Problem Situation portion of your A3: Title, Background, Current Condition, Goal Lean Enterprise Academy59
  60. 60. www.leanuk.org Pick Up A Problem Worksheet Try 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
  61. 61. 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
  62. 62. 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
  63. 63. 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?
  64. 64. www.leanuk.org A3 Practice Exercise As Author – Present Your A3 In groups of 3: Author/Presenter Responder/Coach Observer Lean Enterprise Academy64
  65. 65. 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
  66. 66. 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
  67. 67. www.leanuk.org A3 Practice – Reviewing Listening 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?
  68. 68. 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
  69. 69. 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
  70. 70. www.leanuk.org A3 Practice Exercise As Author – Revise Your A3 Revise the Problem Situation portion of your A3: Title, Background, Current Condition, Goal to make the Problem Statement as clear as you can Lean Enterprise Academy70
  71. 71. 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
  72. 72. 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?
  73. 73. 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
  74. 74. 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
  75. 75. www.leanuk.org A3 Practice Exercise As Author – Revise Your A3 Analysis section To show the (root) cause(s) Lean Enterprise Academy75
  76. 76. www.leanuk.org Cause Investigation 76 Why does this gap between ‘what is’ and ‘what should or needs to be’ exist? Real Problem 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 2 X 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
  77. 77. 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 Cause How? 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 Problem CauseX Problem Cause Cause Effect Cause Problem Cause CauseXXX XX Lean Enterprise Academy
  78. 78. 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?
  79. 79. 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 Therefore The overload circuit tripped The pump seized up
  80. 80. www.leanuk.org A3 Practice Exercise As Author – Present Your A3 Present-Review Again Lean Enterprise Academy80
  81. 81. 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
  82. 82. www.leanuk.org Helpful Coaching Is 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
  83. 83. www.leanuk.org A3 Practice Exercise As Author – Revise Your A3 Develop the section where you Evaluate and Recommend Countermeasures Lean Enterprise Academy83
  84. 84. 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
  85. 85. 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 = Evaluation Best Good Questionable Not Good Lean Enterprise Academy
  86. 86. 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
  87. 87. www.leanuk.org87 Lean Enterprise Academy
  88. 88. 88 Site Level Objective Value Stream Manager Site Manager Date: Harry Bamford Dave Johnson 02/02 Value Stream Plan: After Sales (90 Days) Signatures Site Manager D. Johnson Sales T. Plant After Sales H. Bamford Parts A. Harvey Person Responsible Related Individuals/ Departments Review Schedule (Monthly) With weekly progress Weekly Schedule 2 3 4 51 6 7 8 9 10 11 12 Value Stream Loop No 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, on time, 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 4 Customer Contact & 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 Mins Slot levelling Eliminate waiting for customers T. Plant Wco, Tch, SA, Parts, Fi T. Plant SA J. Butterworth SA, Fi 2.1 2.2 2 Customer Arrival & Pre- Diagnosis Develop std pre- diagnosis process Eliminate tech waiting for authority C/T=10 min 95% work known 18 to 0 mins H. Whittle Parts H. Whittle Parts, Wco, Tch 1.2 1.3 1.4 1.1 1 Pro 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 3 Pacemaker Physical flow of car H. Bamford Adm Parts SA Tch Wco 30 min cycles CF 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 cars Max = 3 cars Develop pull between “physical P/D” & “carry out work” Min = 0 cars Max = 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, Parts SA, Val M. Rushton Tch Wco J.Butterworth Tch, Wco J.Butterworth Wco, Tch, SA, Parts A. Harvey Parts, Tch, Wco Reviewer DJ 60 Days Reviewer DJ 30 Days Feb 28  Feb 28 Reviewer DJ 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
  89. 89. www.leanuk.org A3 Practice Exercise As Author – Present Your A3 Present-Review Again To include the Recommendations /Countermeasures Lean Enterprise Academy89
  90. 90. 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
  91. 91. 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
  92. 92. 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
  93. 93. 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.
  94. 94. www.leanuk.org94 GAP Current Condition Target Condition CAUSE CONSTRAINT BARRIER A P C D A P C D Remove Overcome Eliminate A P C D A P C D You are Here Need to be Here Lean Enterprise Academy
  95. 95. www.leanuk.org A3 Practice Exercise Reflections at this stage? Lean Enterprise Academy95
  96. 96. 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
  97. 97. www.leanuk.orgLean Enterprise Academy97 Plan Do, Check, Act Background Current Situation Proposal Analysis/Evaluation of alternatives Plan Details Unresolved Issues (optional) Implementation Schedule Storyline of the Proposal A3 Theme:
  98. 98. www.leanuk.orgLean Enterprise Academy98
  99. 99. 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?
  100. 100. www.leanuk.org Storyline of the Status A3 Lean Enterprise Academy100 Background Current Condition Results Remaining Issues/Action Items Theme:
  101. 101. 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 Stamping Press Welding & Assembly Production Cell Production Control Daily Order 6.0 days Production Lead Time Supplier Customer Current Condition – March 2002 Key Concepts Implemented: 1) Conversion to an improved flow of operations 2) Establishment of supermarkets for Raw, WIP, & FG inventory 3) Creation of replenishment style pull system with kanban signal 4) Creation of a pacemaker cell combining welding & assembly 5) Pacing of all work to takt time and hourly count boards 6) Creation of detailed standardized work for welding and assembly cell 7) Leveling of the production schedule in terms of type and quantity 8) Reduction of changeover time at stamping 9) Reduction of lot sizes in stamping 2.0 days 2.0 days 2.0 days 54” TT Shipping Prep Area Results Days Lead-time 23.6 Dec. ‘01 March ‘02 Target June ‘02 6.0 5.0 Inventory $$ 36K Dec. ‘01 March ‘02 Target June ‘02 14K 10K $ PPH Overtime 5 Dec. ‘01 March ‘02 Target June ‘02 .7 0 Hrs. Productivity (Assy.) Dec. ‘01 March ‘02 Target June ‘02 12 16 17 On-time delivery 85% March ‘02 Target June ‘02 100% 100% Dec. ‘01 Min. Stamping C/O Time 60 March ‘02 Target June ‘02 30 10 Dec. ‘01 Remaining Issues / Action Items Category Remaining Problem 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
  102. 102. Results Remaining Issues/Future Actions Background Current Situation - Progress Theme: Purchasing Card Implementation Status To: Director of Admin From: Finance & Purchasing Date: 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 12 Activity Get cards with controls issued Conduct training in pilot departments Mgmt approval Card issuer selection Prepare training materials Develop new policy and procedures Conduct pilot Monitor pilot; revise policies, procedures Pilot 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 consensus Delay due to previous step All trained personnel able to make purchases Midstream ch’nge to procedures caused confusion Feedback from all pilot participants Eval. TBD TBD TBD Proposed Start Proposed Completion Actual Start Actual 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.15 weeks £0 £54 £20 £20 £18 £21 Pilot predicted Pilot actual More discrepancies occurred when using credit cards – greater than predicted 200 400 600 952 800 1000 1200 Estimated Time (Hrs) Prev.15 weeks 0 1125 187 432 195 620 Pilot predicted Pilot actual 1% 2% 3% 4% 5% Discrepancies Prev.15 weeks 0% Pilot predicted Pilot 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
  103. 103. 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?
  104. 104. www.leanuk.org Glass Wall Management Lean Enterprise Academy104104 Plan Do Act Check
  105. 105. 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
  106. 106. 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
  107. 107. 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
  108. 108. www.leanuk.org “Managing to Learn” Lean Enterprise Academy108 Expectations Review
  109. 109. www.leanuk.org John Kiff 5th November 2013 “Managing to Learn” A3 Thinking Workshop Lean Enterprise Academy109

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