[To download this presentation, visit: https://www.oeconsulting.com.sg/training-presentations] The A3 provides a disciplined way of reporting on problems that encourages a disciplined way of solving problems. Toyota's relentless dedication to continuous improvement is what gives them their greatest competitive advantage. To this end, the principle of PDCA: Plan Do, Check, Act is engrained throughout their corporate culture. Just as ingrained, and equally valuable, is the flexible, yet precise, reporting system, which is married to the process. All about efficiency, every report must be confined to one side of an A3 (11 x 17-inch) sheet of paper; hence the report is known as the A3. The A3 report can be used to propose solutions to problems, give status reports on ongoing projects, and report results of information gathering activity. A3 is not about generating more paperwork, but it is all about creating a process and a mindset that are uncompromising in their dedication to improvement. Diligently applying the process, thinking, and tools described in this presentation will dramatically improve the effectiveness of those individuals involved, and when spread through an organization, will quickly result in a culture of genuine improvement. While this system grew out of automotive manufacturing, it is proven to be broadly applicable to almost any management system. This A3 Thinking training guide emphasizes the discipline required to generate an A3 report. It covers everything needed to execute a rigorous reporting system. You will learn the step-by-step A3 problem solving process from problem identification to resolution in a fashion that fosters learning, collaboration, and personal development. The problem-solving team records the results of investigation and planning in a concise, two-page document (the A3 report) that facilitates knowledge sharing and collaboration. LEARNING OBJECTIVES 1. Understand the principles and significance of A3 thinking in continuous improvement. 2. Learn the step-by-step A3 problem-solving process, from theme development to follow- up. 3. Acquire proficiency in utilizing A3 problem- solving tools for effective analysis and decision- making. 4. Develop skills for creating clear, concise A3 reports and gain practical tips for successful problem- solving. CONTENTS 1. Introduction to A3 Thinking 2. A3 Problem Solving Process 3. A3 Problem Solving (Storytelling) Tools 4. Form and Style 5. Practical Tips for Success

1. A3
PROBLEM SOLVING
A Disciplined Way of Solving Problems
© Operational Excellence Consulting. All rights reserved.
REPORT
THINK
SOLVE

2. © Operational Excellence Consulting
LEARNING OBJECTIVES
2
Understand the
principles and
significance of A3
thinking in continuous
improvement.
Acquire proficiency in
utilizing A3 problem-
solving tools for effective
analysis and decision-
making.
Learn the step-by-step
A3 problem-solving
process, from theme
development to follow-
up.
Develop skills for
creating clear, concise
A3 reports and gain
practical tips for
successful problem-
solving.
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg

3. © Operational Excellence Consulting
CONTENTS
3
INTRODUCTION
TO A3 THINKING
A3 PROBLEM
SOLVING
PROCESS
A3 PROBLEM
SOLVING
TOOLS
FORM AND
STYLE
01 04
03
02
PRACTICAL
TIPS FOR
SUCCESS
05

4. © Operational Excellence Consulting
● Elevate organizational
performance through continuous
improvement
● Unveil the A3 Report: A
powerhouse in effective problem-
solving
● A3 thinking fosters skilled problem-
solvers and solutions
INTRODUCTION TO A3 THINKING
● Grounded in PDCA philosophy, it
strengthens problem-solving
capabilities
● Explore seven key elements
amplifying the A3 thinking process
● A3 process enhances PDCA,
making it actionable and impactful
4

5. © Operational Excellence Consulting
SEVEN ELEMENTS OF A3 THINKING
5
Logical Thinking Process
Objectivity
Results and Process
Synthesis, Distillation, and Visualization
Alignment
Coherency Within & Consistency Across
Systems Viewpoint
DEVELOPMENT
OF KNOWLEDGE
AND SKILL

6. © Operational Excellence Consulting
STAGES OF ABILITY: KNOWLEDGE AND SKILLS
6
SKILLS:
§ Taught through on-the-job training (OJT).
§ Involves real problems and situations.
§ Mentorship from experienced superiors is
crucial.
§ Classroom settings are generally
ineffective for skill development.
Knowledge
Understand
Capability
Do Well
Can Do and Improve
KNOWLEDGE:
§ Taught in a classroom setting.
§ Often referred to as “Off-JT” (Off-the-Job
Training).
§ Focuses on theoretical understanding.
§ Complements practical skills acquired
through OJT.

7. © Operational Excellence Consulting
A3 FRAMEWORK OVERVIEW
7
A3
Thinking
A3
Report
A3
Problem
Solving
A3
FRAMEWORK
A3 Thinking (“Mindset”):
The foundational mindset that
encourages collaborative and holistic
thinking. A3 Thinking fosters a culture
of continuous improvement,
emphasizing open communication
and shared problem-solving.
A3 Problem Solving
(“Process”):
The structured process that guides
individuals or teams through the
steps of identifying, analyzing, and
solving problems. A3 Problem
Solving, encompassing variations
like Hoshin Planning A3, Proposal
A3, and Project Status A3,
translates the A3 Thinking mindset
into actionable steps for effective
decision-making. It offers a
versatile and standardized
approach for comprehensive
problem resolution and strategic
planning.
A3 Report (“Tool”):
The tangible outcome of the A3
Problem Solving process,
serving as a communication tool.
The A3 Report summarizes the
entire problem-solving journey,
presenting key findings,
proposed countermeasures, and
action plans in a concise and
standardized format.

8. © Operational Excellence Consulting
● Objectives and Results:
Identifies objectives, reports
results for widespread
comprehension
● Iterative Process: Involves trial
and error, repeated A3 iterations
for quality satisfaction
A3 REPORT ESSENTIALS
● Clear Improvement Flow:
Emphasizes transparent
communication of improvement
activities
● Holistic Reference: Balances
rigid focus on results with a
comprehensive view of
improvement
8

9. © Operational Excellence Consulting
PDCA CONCEPT
9
● PDCA stands for Plan-Do-Check-Act,
a four-step methodology for strategic
planning, problem solving and decision-
making
● It follows a continuous cycle of
improvement
● Emphasizes iterative refinement for
better outcomes
The
PDCA
Cycle

10. © Operational Excellence Consulting
A3 THINKING vs. A3 PROBLEM SOLVING vs. A3 REPORT
10
Aspect A3 Thinking A3 Problem Solving A3 Report
Focus Mindset or philosophy
emphasizing collaborative
thinking
Structured method for problem-
solving and decision-making
Visual document summarizing
the problem-solving process
Purpose Foster a holistic view of problems
and encourage collaboration
Guide individuals or teams
through a structured problem-
solving process
Communicate the entire
problem-solving process in a
concise format
Key Components Emphasizes collaboration,
communication, and visual
representation
Follows a structured format with
problem description, root cause
analysis, countermeasures, and
follow-up plan
Presents the problem-solving
process in a standardized
manner
Size Not limited to a specific paper
size; more about the mindset
Typically presented on an A3-
sized sheet of paper (11 x 17
inches)
Follows the A3 paper size for
standardized communication
Application Used as a guiding philosophy for
thinking and decision-making
Applied when addressing
problems, making decisions, or
implementing changes
Used as a communication tool to
share the problem-solving
process

11. © Operational Excellence Consulting
FOUR TYPES OF A3 REPORTS
11
Problem Solving A3
Used to summarize problems
and countermeasures.
TYPES
OF A3
REPORTS
Hoshin Planning A3
Used to summarize department
and company hoshins.
Project Status A3
Used to summarize current condition
of a hoshin, problem or concern.
Proposal A3
Used to present new ideas.
This presentation
centers around
A3 Problem
Solving.

12. © Operational Excellence Consulting
TYPICAL FLOW OF A PROBLEM-SOLVING A3 REPORT
12
Current Condition
Analysis
Countermeasures
Effect Confirmation
Follow up Actions
Goal
Do, Check & Act
Background
Report Theme:
Plan

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WHEN TO WRITE A 50-PAGE REPORT
13
When you’re
trying to hide the
truth
When you want to
impress your
professor
When you don’t
know what you’re
talking about
When you own
Xerox stock
When you need to
fill up your time
When you get paid
by the word
When you wish to
create a clerical
staff empire
To put your
audience to sleep

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WHEN TO USE AN A3 REPORT
14
● Anytime you wish to clearly
tell a story – especially
when you wish to simplify or
clarify a complicated issue
14

15. © Operational Excellence Consulting
WHY USE THE A3 REPORT?
Offers a structured
framework for systematically
addressing issues.
Structured Approach
More skills and creativity.
Team buy-in eases
implementation.
Visual Communication
Provides a clear and concise
format for problem-solving
documentation.
Clarity
Aligns with the principles of
continuous improvement
methodologies like Lean and
Six Sigma.
Continuous Improvement
Streamlines the problem-
solving process, making it
more efficient.
Efficiency
Facilitates collaborative
problem-solving among team
members.
Collaboration
15

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Theme: Reducing Scrap in the Machine Shop ILLUSTRATIVE
Source: Adapted from Sobek & Smalley
EXAMPLE: PROBLEM SOLVING A3 REPORT
16

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KEY POINTS FOR A3 REPORT
17
Decide what kind
of story you need
to tell
No exact or
specific look or
format
Plan time to grasp
the entire situation
Relate the story to
company goals
and values
Save words – use
graphs and
visuals
Fits on one page –
use baby A3s for
complicated
stories
Make your story
flow in a logical
sequence
Use bullet points –
be specific, make
very word count

18. © Operational Excellence Consulting
COMMON PITFALLS IN PROBLEM SOLVING
18
Overly ambitious
scope
(attempting to
address everything)
Unclear or vague
problem
description
Ineffective team
participation
(lack of cross-
functional expertise)
Rushing through
or skipping
problem-solving
steps
Succumbing to
management
impatience/
pressure, leading
to inadequate
analysis
Superficial
problem analysis
without drilling
down
Failure to
implement
permanent
corrective actions
Permanent
corrective actions
failing to address
root causes
Neglecting a
disciplined
process to
prioritize, analyze,
and review
data/information
Lack of familiarity
with statistical and
problem-solving
methods among
team members
(lack of technical
skills)

19. © Operational Excellence Consulting
● Structured Approach: Systematic
method for addressing
organizational challenges
● A3-size Documentation: Utilizes
a single A3-sized paper for clarity
and conciseness
● Origins: Named after A3 paper;
popularized in Lean and Six Sigma
methodologies
A3 PROBLEM SOLVING: OVERVIEW
● Communication Focus:
Encourages clear and concise
communication
● Collaborative Impact: Suitable for
both teams and individual problem
solvers
● Continuous Improvement: Drives
organizational efficiency and
ongoing improvement
19

20. © Operational Excellence Consulting
WHAT IS A PROBLEM?
A problem is a deviation from a standard, i.e., a difference between
what should be happening and what is actually happening.
Standard – what should
be happening
Current situation – what is
actually happening
Gap = Problem
20

21. © Operational Excellence Consulting
PROBLEM SOLVING FUNNEL
21
Source: Adapted from Dennis
Breakdown
Go See
Grasp the situation
§ Actual vs. standard
§ Actual vs. ideal
Point of cause
§ Time and place where
events cause abnormality
5 Why
Analysis Why?
Root cause
Countermeasures
Big vague concern

22. © Operational Excellence Consulting
A3 PROBLEM SOLVING PROCESS
22
COUNTERMEASURES
FOLLOW UP
CHECK RESULTS
ANALYSIS
GOAL STATEMENT
CURRENT CONDITION
§ Detailed description of the current situation (e.g. process flow, trend
chart, Pareto analysis, gap identification and problem statement).
§ Specific goal to address the gap or future state from the current state.
§ Depiction of analytical techniques to uncover the root causes of the
problem or factors that affect the problem in the current state.
§ Alternatively it may be a description of a proposed future state to
achieve.
§ A summary of who will do what by when in order to resolve the
problem situation or achieve the future state.
§ Quantitative comparison of actual results versus your goal.
§ Summary of follow up action items (e.g. lessons learned,
communication to other parties, training, standardization, or other
areas).
BACKGROUND
§ Relevant historical data and information.
THEME § Concise statement of what this A3 report is about.
1
8
7
6
5
4
3
2

23. © Operational Excellence Consulting
Manufacturing (Automotive):
● Reducing defects in welding
processes
Healthcare:
● Improving patient discharge
efficiency
EXAMPLES OF THEMES
Retail:
● Enhancing inventory management
accuracy
Technology (Software
Development):
● Reducing software bugs during
development
23

24. © Operational Excellence Consulting
“
If I had an hour to solve a
problem, I’d spend 55
minutes thinking about the
problem and 5 minutes
thinking about solutions.”
ALBERT EINSTEIN
24

25. © Operational Excellence Consulting
Problems are often perceived differently
by different people.
25
THE BLIND MEN AND THE ELEPHANT
It’s a
snake!
It’s a
wall!
It’s a
rope!
It’s a
fan!
It’s a
tree!
It’s a
spear!
Source: Adapted from Mythgyaan
Problems are often perceived differently
by different people.

26. © Operational Excellence Consulting
STEP 2: BACKGROUND
26
PURPOSE:
Offer context and foundation for a comprehensive
approach.

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Essential Information:
● Document crucial background details to understand the
problem’s scope and significance
Audience Consideration:
● Be mindful of the audience’s background and information needs
for effective communication
Clarity for Understanding:
● Ensure a clear background to prevent wasted time explaining
the report’s purpose and goals
STEP 2: BACKGROUND
27

28. © Operational Excellence Consulting
EXAMPLE: ALIGNING BACKGROUND WITH COMPANY’S GOALS
28
ILLUSTRATIVE
Source: Adapted from Sobek & Smalley
1. Corporate Goals 2023
§ Increase global market share
§ Improve quality and service
§ Increase corporate profits
2. Manufacturing Goals 2023
§ Reduce cost by 5%
§ Reduce scrap by 15%
§ Improve productivity by 7%
§ Improve HSE index by 10%
3.2
2.6
2.7
3
2
1
2.3%
Goal
Not meeting
goal for 2023!
2021 2022 2023
Overall
Scrap %

29. © Operational Excellence Consulting
STEP 2: BACKGROUND – KEY POINTS
29
Clarity and Visualization:
● Make the situation’s overall context clear and visually accessible
Targeted Communication:
● Identify the target audience and tailor the content accordingly
Essential Information:
● Provide necessary details the audience needs before proceeding

30. © Operational Excellence Consulting
EXAMPLE: HIGHLIGHTING PROBLEMS WITH STORM BURSTS
30
Customer
A
Market Forecast
Monthly forecast
Supplier
2
Supplier
1
Weekly orders
Receiving
I
200
Production
Control
Weekly schedule
C/T = 2 min
C/O = 2 hr
Batch = 50
Uptime = 74%
Milling
2 People
I
1000
C/T = 2 min
C/O = 2 hr
Batch = 50
Uptime = 74%
Welding
5 People
I
4 min
C/T = 2 min
C/O = 2 hr
Batch = 50
Uptime = 74%
Painting
3 People
I
1500
C/T = 2 min
C/O = 2 hr
Batch = 50
Uptime = 74%
Inspection
1 People
Weekly
Production Supervisor
Weekly Schedule
D
a
i
l
y
S
c
h
e
d
u
l
e
Daily Schedule
Daily Schedule
Shipping
(13 days)
I
1700
Customer
B
7 min 2 min
2 min
5 days 10 days 15 days 8 days 13 days
Total Lead Time = 51 days
Value added time = 15 min
Daily
Kaizen
Kaizen
Note: C/T = Cycle Time; C/O = Changeover
ILLUSTRATIVE

31. © Operational Excellence Consulting
EXAMPLES OF PROBLEM STATEMENTS
31
Customers in the Northern region are
dissatisfied with the ordering service.
Errors have increased by 23% during the
last 3 months.
The unexpected downtime in our
manufacturing line has led to a 15%
decrease in production output.
Recurring outages, reaching a 25%
occurrence in recent instances,
negatively impact customer satisfaction.
Since the rationalization of the patient
registration services, complaints of long
waiting times have increased by 35%.

32. © Operational Excellence Consulting
EXAMPLE: ESTABLISHING THE GOAL STATEMENT
32
By December 2024:
§ Reduce scrap in rough grinding from
3.7% to less than 2%.
§ Reduce scrap in final grinding from
8.7% to less than 2%.
8.7
2.0
3.7
8
4
2
Final
grind
Rough
grind
Target
level
%
7
3
1
5
6
Grinding Machine Scrap
Gap from target
ILLUSTRATIVE
Source: Adapted from Sobek & Smalley

33. © Operational Excellence Consulting
“
When we fail to grasp the
systemic source of problems,
we are left to ‘push on’
symptoms rather than
eliminate underlying causes.”
PETER SENGE
33
The Fifth Discipline

34. © Operational Excellence Consulting
STEP 5: ROOT CAUSE ANALYSIS
34
PURPOSE:
Investigate fundamental causes, address at the source.

35. © Operational Excellence Consulting
RELATIONSHIP OF PROBLEMS, SYMPTOMS AND CAUSES
SYMPTOMS
§ Result or outcome of the problem
§ What you see as a problem
(Obvious)
ROOT CAUSES
§ System below the surface, bringing
about the problem (Not obvious)
SYMPTOMS
CAUSES
PROBLEM
§ Gap from goal or standard
PROBLEM
Infection
Don’t feel well
Aches and fever
35
ILLUSTRATIVE

36. © Operational Excellence Consulting
EXAMPLE OF 5 WHYS ANALYSIS
36
Symptom: The machine stopped!
Causes:
2. The shaft wore down and seized up.
3. Metal cutting chips penetrated the area.
4. Chips passed through the lubrication system.
5. There was no strainer on the inlet pipe from the tank.
1. The circuit overload tripped.
1st Why
2nd Why
3rd Why
4th Why
5th Why
ILLUSTRATIVE

37. © Operational Excellence Consulting
HIGH
SCRAP OF
BARCODE
LABELS
MAN MACHINE
MATERIAL METHOD
Handling
Wrinkled
Torn
Improper
training
Machine
Breakdown
Ineffective
adhesive
Illegible
Smear
Printwheel Dirty
Worn Ribbon
Design of label
Damage
Poor printing
Improper storage
Wrong orientation
Process changes
Improper storage
Size of label
Process changes
EXAMPLE: CAUSE AND EFFECT DIAGRAM FOR “HIGH SCRAP OF
BARCODE LABELS” ILLUSTRATIVE

38. © Operational Excellence Consulting
ADAPTING A3 FOR YOUR AUDIENCE
38
Shop-floor Boardroom
Audience § Supervisor, team leader and
team members/operators
§ Senior management
Location § Huddled in front of the activity
board
§ Seated in a meeting room
When § Morning or beginning of shift
(Asaichi)
§ As and when required
Communication tool § A3 sheet § PowerPoint presentation
§ A3 sheet (optional – hardcopy
printed and distributed)

39. © Operational Excellence Consulting
A3 STORYTELLING TOOLS
39
Section of A3 Storytelling Tools
Background Graph Sketch
Current Conditions
Check sheet
Pareto diagram
Sketch
Current-state map
Histogram
Scatter diagram
Control chart
Graph
Goals / Targets Chart Sketch
Analysis
Control chart
Relation diagram
Tree diagram
Sketch
Scatter diagram
Cause and effect diagram
(Fishbone/Ishikawa diagram)
Histogram
Pareto diagram
Graph
Proposed Countermeasures
Diagram
Sketch
Graph
Chart
Future-state map
Evaluation matrix
Plan Gantt chart
Follow up Sketch Chart

40. © Operational Excellence Consulting
Operational Excellence Consulting is a
management training and consulting firm
that assists organizations in improving
business performance and effectiveness.
Based in Singapore, the firm’s mission is to
create business value for organizations
through innovative design and operational
excellence management training and
consulting solutions. For more information,
please visit www.oeconsulting.com.sg
ABOUT OPERATIONAL EXCELLENCE CONSULTING