Dive Into A3: Lean Agile Scotland 2013

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Obsessive Improvement thinking is what drove Toyota's 20th Century Success. Here's the method at the heart of it.

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  • Ohno: TPS book
  • It’s not just improvement, it’s *obsessive* improvement, until the last car rolls off on the last day.
    And culture includes humility, open-minded curiosity, making problems visible, following standards, respecting people, gemba thinking, scientific thinking, building consensus for action, a willingness to try... and risk failure
    The kind of company that when you've spent a lot of time and energy working out a quality problem is caused by contaminated coolant will then ask "Have you considered how the coolant got contaminated? What checks do we have to sample it? Who is in charge of the coolant check process? How can we prevent contamination in the future?"
    The kind of company that on your first day gives you a problem to solve and a coach to help solve it
    To what extent does this describe the current situation at your work?
  • Everybody stand up
    Sit down if in the last year you saw more than 10 consciously considered & adopted improvements in your daily work
  • If you transfer this to one piece of paper, you get a number of useful things:
    You error proof the process - it forces you to be rational. WHO HERE MAKES RATIONAL DECISIONS?
    It exposes irrationality and flaws in the logic: nowhere to for cognitive biases to hide
    Makes your thinking visual: great boundary object, and quick to talk anyone through (compare death by PP)
    It starts becoming a standard, and you stop worrying about how to shape an argument and can focus on the actual logic.
  • If you transfer this to one piece of paper, you get a number of useful things:
    You error proof the process - it forces you to be rational. WHO HERE MAKES RATIONAL DECISIONS?
    It exposes irrationality and flaws in the logic: nowhere to for cognitive biases to hide
    Makes your thinking visual: great boundary object, and quick to talk anyone through (compare death by PP)
    It starts becoming a standard, and you stop worrying about how to shape an argument and can focus on the actual logic.
  • Invented in 1779 and allowed one worker to spin not 1 but 8 threads at the same time.
    Henry Stones, of Horwich, who added metal rollers to the mule
    James Hargreaves, of Tottington, who figured out how to smooth the acceleration and deceleration of the spinning wheel
    William Kelly, of Glasgow, who worked out how to add water power to the draw stroke;
    John Kennedy, of Manchester, who adapted the wheel to turn out fine counts;
    Richard Roberts, also of Manchester, created the “automatic” spinning mule: an exacting, high-speed, reliable rethinking of Crompton’s original creation that allowed far higher thread counts.
    By 1892, the number of threads had grown from 8 to 1000
  • Invented in 1779 and allowed one worker to spin not 1 but 8 threads at the same time.
    Henry Stones, of Horwich, who added metal rollers to the mule
    James Hargreaves, of Tottington, who figured out how to smooth the acceleration and deceleration of the spinning wheel
    William Kelly, of Glasgow, who worked out how to add water power to the draw stroke;
    John Kennedy, of Manchester, who adapted the wheel to turn out fine counts;
    Richard Roberts, also of Manchester, created the “automatic” spinning mule: an exacting, high-speed, reliable rethinking of Crompton’s original creation that allowed far higher thread counts.
    By 1892, the number of threads had grown from 8 to 1000
  • Invented in 1779 and allowed one worker to spin not 1 but 8 threads at the same time.
    Henry Stones, of Horwich, who added metal rollers to the mule
    James Hargreaves, of Tottington, who figured out how to smooth the acceleration and deceleration of the spinning wheel
    William Kelly, of Glasgow, who worked out how to add water power to the draw stroke;
    John Kennedy, of Manchester, who adapted the wheel to turn out fine counts;
    Richard Roberts, also of Manchester, created the “automatic” spinning mule: an exacting, high-speed, reliable rethinking of Crompton’s original creation that allowed far higher thread counts.
    By 1892, the number of threads had grown from 8 to 1000
  • Dive Into A3: Lean Agile Scotland 2013

    1. 1. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Dive Into A3 Thinking Martin Burns Martin Burns Martin Burns With speaker voice-over commentary
    2. 2. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Relative National Productivity, 1937 Before WWII, everyone in manufacturing assumed that Japanese productivity was about 1/9 that of US productivity. Over the next 8 years, Japanese productivity took a downturn, particularly at the end. In the late 40s, Toyota's leadership issued a challenge to the company: Catch up with the Americans. Crazy stuff, and the kind of thing that would make most people laugh out loud at a boss who demanded it. And yet.... Source: Ohno: Toyota Production System: Beyond Large-scale Production
    3. 3. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Relative Productivity, 1976 Source: The Competitive Status of the US Auto Industry, National Academy Press 1982 2.4x 2.4x 5x5x ...by the end of the 70s, they'd achieved it, and were accelerating away. This was the point at which the US Auto industry was pronounced dead, even though the corpse continued to twitch for a while yet. How on earth did they do it?
    4. 4. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 It would be easy to assume (and far too many people did, including all the first 3rd party writers: Womack & Jones etc) that this was down to all the methods we know as Lean: Value Streams, Pull, Flow, Poka Yoke, Kanban, SMED and all the rest of it. But that would be to fundamentally miss the point. Taiichi Ohno What made the difference was a management philosophy that was all about improvement. Every. Single. Day. The tools are just countermeasures to business problemsThe tools are just countermeasures to business problems that Toyota has faced, and will be used only until betterthat Toyota has faced, and will be used only until better countermeasures are found.countermeasures are found.
    5. 5. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Problem Solving Culture Obsessive What makes the difference is Toyota's Culture - truly obsessing about improvement. Or Problem Solving - it's the same thing. It’s not just improvement, it’s *obsessive* improvement. Most companies planning to end a long running, much improved process in a few months would tend to think that it was now pretty damned good and to focus elsewhere for improvements When Toyota plan to end a product line, they keep making improvements on it until the last car rolls off on the last day. The kind of company that when you've spent a lot of time and energy working out a quality problem is caused by contaminated coolant will then ask "Have you considered how the coolant got contaminated? What checks do we have to sample it? Who is in charge of the coolant check process? How can we prevent contamination in the future?" It's a culture that includes humility, open-minded curiosity, making problems visible, following standards, respecting people, gemba thinking, scientific thinking, building consensus for action, a willingness to try... and risk failure The kind of company that on your first day, as your first task, gives you a real problem to solve and a coach to help solve it. How important would such a company view problem solving, and developing problem-solvers? To what extent does this describe the current situation at your work?
    6. 6. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Straw Poll: In the Last Year, How Many Improvements Did You See Around You? I carried out this poll with several thousand people in a large technology company over the course of a year. And here's the result.
    7. 7. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 ProblemProblem SolvingSolving CultureCulture DysfunctionsDysfunctions ProblemProblem SolvingSolving CultureCulture DysfunctionsDysfunctions Who hasWho has time?time? It Takes aIt Takes a GuruGuru Whack AWhack A MoleMole WorkingWorking backward frombackward from preconceivedpreconceived ideasideas Jumping toJumping to SolutionsSolutions Solving theSolving the wrongwrong problemproblem Big BatchesBig Batches ManagerManager Says NoSays No BackslidingBacksliding We don't see obsessive problem solving often. Far more often we see these behaviours instead. If we were a firing squad, our process would be "Ready, Fire, Aim!" because we all like to be solutions people. Trying to jump to perfection in one go. Doesn't work. Improvement is not *additional* to 'real work' in a problemsolving culture - it is *part* of it, particularly for managers So many management issues are caused by perfectly solving the wrong problem. If a problem re- occurs, it's not solved. Who knows the problem best? The people doing the work to be improved
    8. 8. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Communicate theProblem Solve The Problem Developthe Problem Solver MeltsMelts OppositionOpposition GembaGemba KnowledgeKnowledge Make GurusMake Gurus RedundantRedundant SolutionsStick SolutionsStick Solvethe Solvethe RightRightProblemProblem ThinkSafely ThinkSafely EasilyEasily AssessableAssessableNo-one isNo-one is exemptexempt Far better would be a process that focused on three core factors, beyond simply 'solve the problem'.
    9. 9. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 PDSA – the Heart of Lean Problemsolving Plan Do Study ■ What are we doing to remove the obstacles? ■ Did it work? ■ If so, how do we work like that all the time? ■ If not, what are we trying next? Adjust ■ What’s the Problem (in outcome terms)? ■ What’s the Current Condition? ■ What’s the Target Condition? ■ What’s stopping us getting there? (obstacles) EmpiricalExperimentalMethod Deeply understanding the problem before suggesting a single solution avoids the "Ready, Fire, Aim!" situation.
    10. 10. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Deadly Warning A3 is a Thinking Method not a Template or a Tool Deadly Warning Use a Pencil Complete One section at a time Deadly Warning A3s die in a Computer Make them visual. Post them on boards. Take them to people and talk them through. You *will* be making corrections :-) Get each section into a good shape before pushing on to the next This is how you engage the people you will need to support and implement your change, and ensure it's as good as it possibly can be.
    11. 11. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 PDSA – the Heart of Lean Problemsolving Plan Do Study ■ What are we doing to remove the obstacles? ■ Did it work? ■ If so, how do we work like that all the time? ■ If not, what are we trying next? Adjust ■ What’s the Problem (in outcome terms)? ■ What’s the Current Condition? ■ What’s the Target Condition? ■ What’s stopping us getting there? (obstacles) EmpiricalExperimentalMethod Translate this to a single piece of paper and it looks like... You could view this as TDD for Problem Solving: start from the perspective of Acceptance Criteria ('Study') and use the understanding gained in 'Plan' to implement Countermeasures ('Do') that will achieve the desired outcome (target condition) 'Test' if you prefer Adopt, Adapt or Abandon Deeply understanding the problem before suggesting a single solution avoids the "Ready, Fire, Aim!" situation.
    12. 12. Every Day A Little Better @martinburnsuk http://everydaylean.info More info: http://everydaylean.info/tag/A3 DODO Strategic Background Current Situation Goal Countermeasures Confirmation Action Plan # Action Owner Due Date 1 2 3 4 How will we know the countermeasures work? How will we know the countermeasures work? How will we make the benefits widespread? How will we make the benefits widespread? Theme: What will address the root causes & achieve the goals? What will address the root causes & achieve the goals? Standardise How will the countermeasures be implemented? How will the countermeasures be implemented? Analysis eg 5 Whys/Pareto Why is this important? Why did you pick this problem? Why is this important? Why did you pick this problem? What will success look like in same terms as above? Quantify. Benefits. What will success look like in same terms as above? Quantify. Benefits. What’s happening now in terms of outcomes? Quantify What’s happening now in terms of outcomes? Quantify What are we trying to do?What are we trying to do? O wner C oach D ate PLANPLANPLANPLAN What’s the real problem?What’s the real problem? STUDYADJUST Template Author: Martin Burns Created: 27 May 2009 Last Updated: 9 Sept 2013 Grab a copy of this from http://everydaylean.info/downloads/
    13. 13. Every Day A Little Better @martinburnsuk http://everydaylean.info More info: http://everydaylean.info/tag/A3 DODO Strategic Background Current Situation Goal Countermeasures Confirmation Action Plan # Action Owner Due Date 1 2 3 4 How will we know the countermeasures work? How will we know the countermeasures work? How will we make the benefits widespread? How will we make the benefits widespread? Theme: What will address the root causes & achieve the goals? What will address the root causes & achieve the goals? Standardise How will the countermeasures be implemented? How will the countermeasures be implemented? Analysis eg 5 Whys/Pareto Why is this important? Why did you pick this problem? Why is this important? Why did you pick this problem? What will success look like in same terms as above? Quantify. Benefits. What will success look like in same terms as above? Quantify. Benefits. What’s happening now in terms of outcomes? Quantify What’s happening now in terms of outcomes? Quantify What are we trying to do?What are we trying to do? O wner C oach D ate PLANPLANPLANPLAN What’s the real problem?What’s the real problem? STUDYADJUST Template Author: Martin Burns Created: 27 May 2009 Last Updated: 9 Sept 2013 Grab a copy of this from http://everydaylean.info/downloads/ The next slides take a walk through a simple example If you transfer this to one piece of paper, you get a number of useful things: 1)You error proof the process - it forces you to be rational. Which is really hard for humans. 2)It exposes irrationality and flaws in the logic: nowhere to for cognitive biases to hide 3)Makes your thinking visual: great boundary object, and quick to talk anyone through in elevator pitch style (compare death by PowerPoint) 4)It starts becoming a standard, and you stop worrying about HOW to shape an argument and can focus on the actual logic. NOTE you may (& probably will) have a load of detail behind what's on here. But that's your working info, not what you take around stakeholders.
    14. 14. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Always Two There Are... Who should be involved in the method?
    15. 15. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 ...a Problem Solver (Owner) and a Coach Jim Womack, Gemba Walks http://j.mp/GembaWalks A lean management system involves managers at every level framing the key problems that need to be solved and asking the teams they lead to discover and implement the answers A lean management system involves managers at every level framing the key problems that need to be solved and asking the teams they lead to discover and implement the answers The manager can’t solve the problem alone, because the manager isn’t close enough to the problem to know the facts. But the employee can’t solve the problem alone either, because he or she is often too close to the issue to see its context and may refrain from asking tough questions about his or her own work. Only by showing mutual respect is it possible to solve problems and move organisational performance to an ever-higher level. Jim is one of the leaders of the Lean Enterprise Institute. This is a great ebook - definitely recommended to understand all kinds of areas of Lean Thinking Embedding an improvement coaching method into an organisation's fundamental management approach is INSTRUMENTAL in developing that obsessive improvement culture. Top to bottom: NO-ONE is exempt. Who should fill these roles? Whoever's work is impacted by the problem, and their manager
    16. 16. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 This section does 2 things: 1) Ensures that we're solving something that matters 2) Starting to identify and get the attention of all the stakeholder groups you'll need to effectively solve the problem If you're*very* lucky, you'll have a fully decomposed organisational strategy that you can point to and simply note that the problem impacts an agreed objective. This is how A3 links into other Lean methods such as Hoshin Kanri. In writing all these sections, take them round as wide a group of stakeholders as possible to get heterogenous input and build consensus around your problem solving - starting from an early draft stage. Whoever else you consult, you absolutely must include a full range of people whose work is directly impacted by the problem or any countermeasures you propose. No-one else will better understand the problem or be better able to validate your analysis and the viability of your proposed countermeasures. If you cannot reflect a stakeholder's views in the final version, you have a duty to go back to them and explain why. This way, you maintain a sense of consultation & collaboration even with those you disagree with. Team is an outsourced L2 support team, with >20 members supporting >60 applications. Each app has 1or 2 designated SMEs in the team. Team spending lots of NonValueAdd Time redirecting calls to the right SME; it's expensive, diverts effort from real work & is really annoying for the team (problem was identified by the team as their top priority)
    17. 17. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 These 2 sections are all about measurable data, demonstrating current state and how it varies over time - time series charts are useful here.
    18. 18. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3
    19. 19. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 You can use many analysis tools here, but amongst the simplest and most powerful to uncover the most effective countermeasures is the '5 why' technique used here. DEADLY WARNING: do NOT start from a solution & work back, including defining problem as 'lack of an X.' Other effective analysis techniques include fishbone diagrams, process maps (and in particular, Value Stream Maps), equipment sketches, spaghetti diagrams. Remember though that there may be multiple causing factors that interact in a complex way. What we are doing here is trying to work out what factors (that we can change) contribute to the symptoms noted.
    20. 20. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Problem: The caterer delivered food 2 hours late. W Because we did not prepare the purchase order on time. W Because we did not get all approval signatures on time. W Because we prepared the PO 3 days before the event. W Because we forgot to prepare a Purchase Order. W Root Cause Because we didn’t have a checklist to clearly identify the tasks we needed to complete at what time. Another 5 Why analysis example, showing that "Because we're lazy lollygaggers" doesn't actually help - work on fixing the 95% (the system) not the 5% (the people). Make it such that it's impossible for the people to get wrong,
    21. 21. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Problem The machine stopped W Spindle isn't turning freely, It overloaded & fuse blew W Spindle isn't lubricated W Oil Pump isn't working W Oil shaft bearings are worn W Dirt in the Oil Pump ➡Root cause: lack of preventative maintenance on Oil Sieve ➡Countermeasure: Regularly Oil Sieve & replace when ineffective; review all maintenance procedures for completeness This example shows that a simple fix isn't enough - there's a *process* that's gone wrong (or isn't there) and without it, the problem will keep reoccurring. This may just be the first of many potential failures.
    22. 22. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Having understood the problem deeply, using the insight of a wide group of stakeholders, you can effectively come up with some ideas to move from current situation towards your goal. You may have competing ideas for this, possibly from different stakeholders. A3's empirical approach avoids arguments; you can graciously allow a stakeholder the first trial. If their idea works (or doesn't), you can then try your idea & let the facts speak for themselves. You might both be right. Or both wrong. You won't know until you try. (Direct marketeers may recognise this as a Champion-v-Challenger approach) That's why we don't call this a Solution, but simply the best countermeasures we currently have. Think back to Ohno's comment from earlier...
    23. 23. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Don’t try to boil the ocean with planning. A simple plan is definitely best. Do as little as you can get away with, to avoid paralysis by analysis. As before, you may have more detail elsewhere, but you should be able to summarise what you’re doing in a few lines.
    24. 24. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 This is your test. How will you measure the outcome to give results in the same terms as your prediction and current state? How often will you measure? Who will do it, and so on. Once you have results, they go here.
    25. 25. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 If your countermeasures didn’t help the situation, then you loop back to define some more - you may have a list ready and waiting. You will also ensure that you learn from your experiment: you have just correctly identified something that doesn’t work. If they did help the situation, then this is where you enable the organisation to learn from the experiment’s positive outcome. If this way is better than the previous one, how will we make this a standard such that we work like this all the time from now? Are there any other teams in the organisation who might benefit from our experiment? Finally, if your experiment leaves you short of perfection (and it always will), then loop back to the start and update the current state, define a new target and continue experimenting!
    26. 26. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 VisionVision NowNow A3 starts from a vision of True North, or Guiding Stars. What’s the far off vision of perfection we’re striving towards? However, it’s not possible to reach it in one go for a couple of reasons. Firstly, change always causes problems first. Performance goes down before it goes up. The bigger the change, the deeper the dip and the longer it takes to return to where you started, let alone positive outcomes.
    27. 27. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 VisionVision NowNow TargetTarget Where doWhere do we want towe want to bebe next?next? Secondly, trying to predict the future is a fool’s game. It’s like walking in a fog. You may be able to see the far distant hill, and the 2m in front of you, but in between is obscured. So we de-risk both factors by setting a shorter goal that is on the way to the vision, yet is still achievable. We show benefit sooner, and we can inspect and adapt from that point to the next short term goal. We keep taking small steps every day, adjusting as we go along.
    28. 28. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 This frequent, small improvement was the basis for the Industrial Revolution. That the British are a culture of tinkerers - blokes in sheds working on one small thing - rather than revolutionaries is perhaps a major part of why the Industrial Revolution was so much bigger in the UK than in Germany or France. Tale the Spinning Jenny - a fundamental example of Industrial improvement over the course of a century. Invented in 1779 and allowed one worker to spin not 1 but 8 threads at the same time. A huge productivity gain Then it was improved by Henry Stones, of Horwich, who added metal rollers to the mule And by James Hargreaves, of Tottington, who figured out how to smooth the acceleration and deceleration of the spinning wheel which reduced thread snapping and meant longer runs between thread replacement
    29. 29. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Then came William Kelly, of Glasgow, who worked out how to add water power to the draw stroke, reducing the effort of the worker And John Kennedy, of Manchester, who adapted the wheel to turn out finer threads without snapping. Fine thread means fine cloth means higher revenues;
    30. 30. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 And Richard Roberts, also of Manchester, created the “automatic” spinning mule: an exacting, high-speed, reliable rethinking of Crompton’s original creation that allowed far higher thread counts. Workers were now machine minders, not operators. By 1892, the number of threads per worker had grown from 8 to 1000
    31. 31. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Does It Work...? KaizenKaizen HereHere Kaizen Here This is an improvement in a team’s Risks process. As always, a Risk is an Improvement which may or may not happen. Strategies generally involve reducing probability (avoidance) and reducing impact (mitigation). Following improvement, the number of new issues dropped dramatically through being better avoided in the Risk process, and then those that did still occur were better mitigated as they had been better anticipated in the Risks process.
    32. 32. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Does It Work...?This was the first A3 I ever coached. My team were working with a customer’s complex systems, and we had a problem bringing new people into the team fast enough. While the customer’s system made it tough to start with, other process problems in new user setup extended the time from arrival to productivity to 43 working days. The team lead owned the improvement, and identified a countermeasure that cut this by 20d, and while implementing, identified a further improvement that had 4d more savings
    33. 33. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Does It Work...? When you’ve been doing this a while, and have it really built into your culture, then you can simplify the template significantly. This is from a tour of industrial sites in Japan, illustrating one simple improvement. Management empowered the team to do this and update their own work standards to incorporate these changes.
    34. 34. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Does It Work...? Same location - can you imagine what 8 new improvement ideas per person per month would do for your organisation?
    35. 35. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Learn to DoLearn to Do Learn toLearn to CoachCoach Implementing A3 in an organisation requires setting up chains of coaching pairs. The best place to start with this is at the top, but the middle can also work, provided you have top level stakeholder support to do it. First you learn to do. Without this experience, it’s very hard to coach someone else to do the job you’ve never had to do. Then you learn to a coach, with access to a secondary coach who coaches your coaching.
    36. 36. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 Resources •
    37. 37. Every Day A Little Better @martinburnsuk http://everydaylean.info/tag/a3 A3 Dojo Track 4: 11:20 - 13:00 Tomorrow Bring Problems! Grab a copy of the template Grab a copy of the template Grab a copy of the template Grab a copy of the template Grab a copy of the template Grab a copy of the template Grab a copy of the template

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