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A3 Thinking Applied to Policy Deployment


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Lean training I created in 2009. I am providing this training for Manufacturing Alliance, a local association in Minnesota.

A3 Thinking Applied to Policy Deployment

  1. 1. <ul><li>Guidance to building a lean management system </li></ul>Using A3 for Policy Deployment
  2. 2. <ul><li>Create A3 policy deployment with risk assessment </li></ul><ul><li>Demonstrate A3 thinking based policy deployment and tools </li></ul><ul><li>Illustrate the use of tools associated with policy deployment </li></ul><ul><li>Define core skills and behaviors to build a lean management system. </li></ul>Course Objectives
  3. 3. Introduction <ul><li>Who am I? </li></ul><ul><li>Plant manager at Andersen Corporation </li></ul><ul><li>Former corporate lean leader at Andersen </li></ul><ul><li>Worked 13 years for Steelcase in the US and Europe </li></ul><ul><li>18 years leading and supporting lean transformations and lean implementations </li></ul><ul><li>Who are you? </li></ul><ul><li>Name </li></ul><ul><li>Function </li></ul><ul><li>Experience with A3 and Policy Deployment </li></ul><ul><li>Expectations from the class. </li></ul>
  4. 4. Agenda <ul><li>Info about Policy Deployment </li></ul><ul><li>Info about A3 Thinking </li></ul><ul><li>A3 Strategy Process </li></ul><ul><ul><li>Generation </li></ul></ul><ul><ul><li>Deployment </li></ul></ul><ul><ul><li>Implementation </li></ul></ul><ul><ul><li>Evaluation. </li></ul></ul>
  5. 5. Managing Expectations <ul><li>“ A man who carries a cat by the tail learns something he can learn in no other way.” </li></ul><ul><li>Mark Twain </li></ul><ul><li>This class will not make you an expert… </li></ul><ul><li>only experience can. </li></ul>
  6. 6. What is Policy Deployment? <ul><li>A process that: </li></ul><ul><ul><li>Reflects on currents year’s performance </li></ul></ul><ul><ul><li>Defines key areas of emphasis for next year </li></ul></ul><ul><ul><li>Establishes goals for the coming year </li></ul></ul><ul><ul><li>Focuses and aligns activities </li></ul></ul><ul><ul><li>Allows to respond quickly to threats and opportunities </li></ul></ul><ul><ul><li>Enables the development of a learning organization. </li></ul></ul>
  7. 7. What are the origins of PD?
  8. 8. Conventional Planning <ul><li>Post WWII: Taylor’s “scientific management” applied to planning and management </li></ul><ul><ul><li>Many schools created based on complex system </li></ul></ul><ul><ul><li>Planning schools are for “smart people” </li></ul></ul><ul><ul><li>Over-managed, detached, and prescriptive </li></ul></ul><ul><ul><li>Purely analytical. Nothing is intuitive </li></ul></ul><ul><ul><li>No shared vision and many goals </li></ul></ul><ul><ul><li>No indications on how to deploy the strategy. </li></ul></ul>
  9. 9. <ul><li>The emperor does not have any clothes! </li></ul>1994: The moment of truth
  10. 10. 1994: Henry Mintzberg “ Strategy cannot be planned because planning is about analysis and strategy is about synthesis.” He adds: “Strategies are created by emphasizing informal learning and personal vision.” Mintzberg, 1994
  11. 11. <ul><li>“ Most large U.S. Corporations are run like the Soviet Union economy…with their emphasis on central plans…which spell out expectations for managers’ actions… a remarkably effective </li></ul>Central Planning way of killing creativity and entrepreneurship.” Kenichi Ohmae, 1982
  12. 12. Strategy = Analysis + Intuition “ Chess is not all calculation. I do the calculation, but I also look at my opponent, his body language, and his intuition.” Alexander Kotov, 1971
  13. 13. Left over from Planning Schools <ul><li>Command and control in disguise… “you shall!” </li></ul><ul><li>Default to budgeting… but the budget does not tell us who we are and where we are going </li></ul><ul><li>Dysfunctional event with silo thinking before going back to business as usual. </li></ul>
  14. 14. Differences with Policy Deployment? <ul><li>Process, not an event </li></ul><ul><li>Collaborative approach (horizontally and vertically) </li></ul><ul><li>Balance of analysis and intuition </li></ul><ul><li>Always close to what is happening in Gemba </li></ul><ul><li>Based on the understanding that managerial work is calculated chaos with controlled disorder </li></ul><ul><li>Follows PDCA model. </li></ul>
  16. 16. Comparing Broccoli and PDCA? … Fractals
  17. 17. Fractals View of PDCA Business Planning Activity Planning Problem Solving / Kaizen Daily Work Std Work - CI A3 Project A3 Plan Policy Deployment Tools Activities Activities Tools A3 Strategy
  18. 18. Policy Deployment Cycle <ul><li>Micro </li></ul><ul><li>Mid-year </li></ul><ul><li>Year end </li></ul><ul><li>Micro </li></ul><ul><li>Mid-year </li></ul><ul><li>Year end </li></ul><ul><li>Prioritize needs & choose objectives </li></ul><ul><li>Create plan </li></ul><ul><li>Deploy plan </li></ul><ul><li>Implement action plans </li></ul>Grasp the Situation <ul><li>Reflect on current condition </li></ul><ul><li>Develop image of desired future </li></ul>Plan Do Check Act
  19. 19. Activity 1 – Grasping the Situation The Advisory Committee Phase 1: Read page 1 & 2 and discuss by group (7 min) Phase 2: Read page 3 and discuss by group (5 min) Phase 3: Class reflection (8 min)
  20. 20. What is A3? <ul><li>Big piece of paper (11x17) </li></ul><ul><li>One page document, but the form is only one part of the methodology </li></ul><ul><li>Proven tool taught to us by Toyota. </li></ul>
  21. 21. What are the benefits of A3? <ul><li>It encourages PDCA </li></ul><ul><li>It clarifies the link between true problems and countermeasures </li></ul><ul><li>It develops thinking problem-solvers </li></ul><ul><li>It fosters dialogue within the organization </li></ul><ul><li>It forces “5S for information” </li></ul><ul><li>It leads to effective countermeasures and solutions based on facts and data. </li></ul>
  22. 22. A3 Strategy Construction
  23. 23. A3 Strategy Template
  24. 24. The Road Metaphor Current Condition (Where we are) Our Vision (Destination) Use Policy Deployment Use Operational Plan Avoid Distractions!
  25. 25. How do you get there? Grasp the Situation <ul><li>Reflect on current condition </li></ul><ul><li>Develop image of desired future </li></ul>Plan Do Check Act
  26. 26. <ul><li>Performance, gaps and targets: </li></ul><ul><ul><li>What were last year’s results? </li></ul></ul><ul><ul><li>Are we getting better or worse? </li></ul></ul><ul><li>Reflection on the year’s activities: </li></ul><ul><ul><li>Assess each of last year’s activities: </li></ul></ul><ul><ul><li>What worked and what didn’t work? </li></ul></ul><ul><ul><li>What prevented us from meeting our target? </li></ul></ul><ul><ul><li>What did we learn? </li></ul></ul>Reflect on Current Condition
  27. 27. Reflect on Current Conditions
  28. 28. Activity 2 – Dashboard Analysis Display Plus Plasma Case Study Phase 1: Study the graphs to decipher the story (5 min) Phase 2: Compare notes and discuss by group (5 min) Phase 3: Class reflection (5 min)
  29. 29. <ul><li>Identify 3 – 5 key areas of emphasis: </li></ul><ul><li>What needs to be done & how will these areas be of benefit? </li></ul><ul><li>What are your external and internal environments at year end? </li></ul><ul><li>What are your company business needs and priorities? </li></ul><ul><li>What are the new needs and expectations? </li></ul>Develop Image of Desired Future
  30. 30. Develop Image of Desired Future
  31. 31. How do you get there? <ul><li>Prioritize needs & choose objectives </li></ul><ul><li>Create plan </li></ul><ul><li>Deploy plan </li></ul>Plan Grasp the Situation Do Check Act
  32. 32. <ul><li>What will the key performance targets for next year be? </li></ul><ul><ul><li>Safety </li></ul></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Delivery </li></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><li>Based on key areas of emphasis, what will the specific targets for each of the key performance metrics be? </li></ul>Prioritize Needs - Objectives
  33. 33. Catch Ball Process <ul><li>Give and take process used during the planning process to cascade strategies through the organization: </li></ul><ul><li>Vision is provided by the president who “tosses” it to senior manager </li></ul><ul><li>Senior managers “catch” the vision and translate it into strategies that are tossed back to the president: “Will these activities achieve your vision?” </li></ul><ul><li>President provides guidance with strategies tossed back and forth </li></ul><ul><li>When consensus is reached the strategies are tossed to middle managers and so forth. </li></ul>
  34. 34. Activity 3 – Reflect and Plan Display Plasma Plus Phase 1: Read case study and assign roles (5 min) Phase 2: Catch ball / Tree Analysis (7 min) Phase 3: Class Reflection (5 min)
  35. 35. Prioritize Needs - Objectives
  36. 36. Create One Page Plan <ul><li>Create one page plan to achieve objectives: </li></ul><ul><ul><li>Brainstorm ideas: 10 minutes to gather 7 concrete ideas per person on post-its </li></ul></ul><ul><ul><li>Group by theme </li></ul></ul>• Prioritize needs & choose objectives • Create plan • Deploy plan • Prioritize needs & choose objectives • Create plan • Deploy plan Plan Grasp the Situation Do Check Act
  37. 37. Brainstorm <ul><li>Focus: Running a marathon </li></ul><ul><li>Objectives: Personal accomplishment. Improve endurance. Lose weight </li></ul><ul><li>Targets: Finish the Twin Cities marathon in less than 4 hours </li></ul><ul><li>Loose 30 pounds by July. </li></ul><ul><ul><li>Delegate work </li></ul></ul><ul><ul><li>Free up time </li></ul></ul><ul><ul><li>Talk to family </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>Get enough rest </li></ul></ul><ul><ul><li>Talk to business partners </li></ul></ul><ul><ul><li>Buy new running shoes </li></ul></ul><ul><ul><li>Buy camel pack </li></ul></ul><ul><ul><li>Find short and long course paths </li></ul></ul><ul><ul><li>Prepare physically </li></ul></ul>Talk to colleagues who ran last year’s marathon Subscribe to Runner’s magazine Find a personal trainer Change diet Find right running buddies Read about injury prevention Read about mental aspects of running Perform correct stretching before running Work on flexibility and strength at gym
  38. 38. Affinity Diagram Step 1 - Generate ideas (Brainstorm) Step 2 - Display ideas Step 3 - Sort ideas into groups Step 4 - Create header cards Step 5 - Draw finished diagram.
  39. 39. Affinity Diagram Group ideas by short, action title Objectives Header 1 Header 2 Header 3 Header 4 Header 5 Header 6 Activity Activity Activity Activity Activity Activity
  40. 40. Create One-Page Plan
  41. 41. Activity 4 – Affinity Diagram <ul><li>Running a Marathon </li></ul><ul><li>Phase 1: (15 min) </li></ul><ul><ul><li>Step 1 - Generate ideas </li></ul></ul><ul><ul><li>Step 2 - Display ideas </li></ul></ul><ul><ul><li>Step 3 - Sort ideas into groups </li></ul></ul><ul><ul><li>Step 4 - Create header cards </li></ul></ul><ul><ul><li>Step 5 - Draw finished diagram </li></ul></ul><ul><li>Phase 2: (5 min) </li></ul><ul><ul><li>Present and reflect in class </li></ul></ul>
  42. 42. Contingency planning <ul><li>What if...? How could…? </li></ul><ul><li>Complex tools: </li></ul><ul><ul><li>FMEA, Fault Tree Analysis </li></ul></ul><ul><li>Simple tools: </li></ul><ul><ul><li>Sun diagram + Problem-Countermeasure matrix </li></ul></ul>Sun diagram
  43. 43. Contingency Plan
  44. 44. Activity 5 – Contingency Planning <ul><li>Running a marathon: </li></ul><ul><li>Develop Sun Diagram (10 min) </li></ul><ul><li>Discuss in class (5 min) </li></ul>
  45. 45. <ul><li>Plant A3 </li></ul><ul><li>“ Mother” A3s: </li></ul><ul><ul><li>key metrics for plant: </li></ul></ul><ul><ul><ul><li>safety, quality, delivery, cost </li></ul></ul></ul><ul><ul><li>how to cascade broad brush and hard goals </li></ul></ul><ul><li>Functional A3s: </li></ul><ul><ul><li>from plant to value streams and functional departments </li></ul></ul><ul><li>Two must meet. </li></ul>Deploy the plan • Prioritize needs & choose objectives • Create plan • Deploy plan • Prioritize needs & choose objectives • Create plan • Deploy plan Plan Grasp the Situation Do Check Act
  46. 46. Deploy the plan Plant Management Deployment Leader Cost Deployment Leader Delivery Deployment Leader Quality Deployment Leader Safety Supply Chain VSM 3 VSM 2 VSM 1 Cost Delivery Quality Safety Functional Leader
  47. 47. <ul><li>Less is more. </li></ul><ul><ul><li>Make A3 easy to read </li></ul></ul><ul><ul><li>“ Complexity is crude state. Simplicity marks the end of a process of refining.” Mark Twain </li></ul></ul><ul><li>Rehearse your presentation </li></ul><ul><li>Give each person a copy of the A3 </li></ul><ul><li>7 minutes to tell the story </li></ul><ul><li>Yellow card at 6 minutes, red card at 7 minutes </li></ul><ul><li>10 minutes for Q&A </li></ul><ul><li>People give A3 back with their names with notes. </li></ul>Deploy the Plan: Present
  48. 48. Deploy the Plan Deployment Leaders Mgr & Supervisors PLAN Plant A3 Strategy High-level SQDC Cost A3 Strategy Delivery A3 Strategy Quality A3 Strategy Safety A3 Strategy A3 Strategy A3 Strategy A3 Strategy A3 Strategy ids Plans & Projects P D A C
  49. 49. <ul><li>Go see </li></ul><ul><li>Visuals - real time: </li></ul><ul><ul><li>What is happening to the plan? </li></ul></ul>Implement Action Plans
  50. 50. “Go See” Process: <ul><li>Team reviews last weeks “Go See&quot; observations </li></ul><ul><li>Deployment Leader leads the “Go See” walk (one topic a day: SQDCM) </li></ul><ul><li>Team follows the map, checks and write observations </li></ul><ul><li>Team identifies necessary corrective actions. </li></ul>
  51. 51. Example of “Go See Quality”
  52. 52. <ul><li>1. Metrics </li></ul><ul><ul><li>Dashboards </li></ul></ul><ul><ul><ul><li>Grasp the situation </li></ul></ul></ul><ul><ul><li>Bowling Chart </li></ul></ul><ul><ul><ul><li>Targets </li></ul></ul></ul><ul><ul><ul><li>Actual </li></ul></ul></ul><ul><ul><ul><li>Status (R/Y/G) </li></ul></ul></ul><ul><li>2. Check Activity / Process. </li></ul>Micro Check and Adjust
  53. 53. Micro Check and Adjust Bowling Chart Dashboard
  54. 54. <ul><li>Dashboards: </li></ul><ul><ul><li>Hot spots visible at a glance </li></ul></ul><ul><ul><ul><li>Process measures and </li></ul></ul></ul><ul><ul><ul><li>End-of-pipe measures </li></ul></ul></ul><ul><ul><li>Show target line and status box (R/Y/G) </li></ul></ul><ul><ul><li>What are the required support processes? </li></ul></ul>Micro Check and Adjust
  55. 55. Connected Check Micro Check and Adjust Team Supervisors, Team Leads Monday Plant/Deployment Leaders Plant Mgr, Deployment Ldrs, VS Mgrs Wednesday Value Stream VS Mgrs, Supervisors Tuesday
  56. 56. <ul><li>Big-picture checks </li></ul><ul><ul><li>Time for reflection </li></ul></ul><ul><ul><li>Adjustments needed to be made </li></ul></ul><ul><li>Reflection A3 (Deployment leaders) </li></ul><ul><ul><li>Summary of current conditions </li></ul></ul><ul><ul><li>End-of-pipe targets (bottom-line/downstream) </li></ul></ul><ul><ul><li>Process targets (upstream) </li></ul></ul><ul><li>Book of Knowledge </li></ul><ul><ul><li>Learning organization. </li></ul></ul>Mid/End Year Check and Adjust
  57. 57. Mid/End Year Check and Adjust
  58. 58. Deployment Leaders & Mgrs Deployment Leaders Mgr & Supervisors Mgr & Supervisors CHECK PLAN DO ACT (corrective actions against Plans) Mid/End Year Check and Adjust Plant A3 Strategy High-level SQDC Cost A3 Strategy Delivery A3 Strategy Quality A3 Strategy Safety A3 Strategy A3 Strategy A3 Strategy A3 Strategy A3 Strategy ids Plans & Projects A3 Reflection A3 Reflection A3 Reflection A3 Reflection Quarterly & Year-End Cost A3 Reflection Delivery A3 Reflection Quality A3 Reflection A3 Reflection Safety P D A C
  59. 59. Annual PDCA Cycle
  60. 60. Putting Everything Together
  61. 61. Putting Everything Together
  62. 62. Activity 6 – Teach Back <ul><li>Phase 1: Prepare (5 min) </li></ul><ul><ul><li>PDCA </li></ul></ul><ul><ul><li>A3 Thinking </li></ul></ul><ul><ul><li>Catch Ball </li></ul></ul><ul><ul><li>Affinity Diagram </li></ul></ul><ul><ul><li>Deployment Leader </li></ul></ul><ul><ul><li>Go See </li></ul></ul><ul><li>Phase 2: Present (2 min) </li></ul>
  63. 63. <ul><li>Guidance to building a lean management system </li></ul>Using A3 for Policy Deployment Last minute questions?