A3 Problem Solving Technique.pdf

A3 Management
Lean Enterprise Program
UCSD Extension
Instructor: Karen Martin

Learning Objectives
• You will learn:
– The fundamentals of A3 problem-solving.
– The A3 Report – purpose & common components.
– Key root cause analysis tools.
– Common problem-solving pitfalls.
– How the A3 process shifts culture & develops the
workforce.
– Where the A3 fits into the Lean toolbox.

© 2011 Karen Martin & Associates
Why is problem-solving so challenging?
It takes a different kind
of thinking to solve a
problem than the kind
of thinking that produced
the problem.
4
-- Albert Einstein

What is A3?
• The core of Toyota’s renowned
management system.
• A structured method for applying the PDCA
(plan-do-check-act) approach to problem-
solving.
• International designation for 11 x 17” paper.
5

Sample A3 Report
6
Plan Do, Check, Act

The A3 Report
• A concise “story board” that reflects the problem solver’s
discoveries and thought process along the way.
• A “living document” that reflects the iterative nature of
problem-solving and enables organizational learning.
• Highly visual – graphics, charts, maps, drawings, etc.
• “Making it pretty” isn’t the goal.
– Hand drawn A3s are honored at Toyota.
• Neither the format nor the specific sections are set in
stone.
– Beware of using “templates.”
– Serve the iterative nature of the problem-solving process.
7

Benefits of the A3
• Creates consistency in how the organization
goes about solving problems.
• Forces a holistic/comprehensive view of the
problem and solutions; requires collaborative
problem-solving.
– Reduction in “silo-ism”
• Thorough root cause analyses reduce the risk of
“band-aid” solutions.
• Ownership role reduces risk of “it’s everything
else’s problem.”
8

Benefits of the A3 (continued)
• Stimulates data-driven decisions.
• Fairness and accountability replace blame
and deceit.
• Transparency re: problems spawns a
commitment to action.
• Develops deep organizational capabilities.
9

Deming’s PDCA Cycle
Plan
Do
Check
Act
Develop
hypothesis
& design
experiment
Conduct
experiment
Measure
results
Analyze
results &
take
appropriate
action

Problem-Solving Steps
1. Identify the problem
2. Explore the problem
– What’s the true root cause?
3. Consider potential solutions
– Hypothesize
4. Test solutions
– Confirm hypothesis
5. Implement solution(s)
6. Measure results
– Did the hypothesis prove out?
7. Adjust as needed
11
Plan
Do
Check
Act
{
At least
50% of
the total
time

Common Components of the A3 Report
Theme: ________________________________ Owner: ________________________________
Plan Do, Check, Act
Background
Current Condition
Countermeasures / Implementation Plan
Effect Confirmation
Follow-up Actions
Target Condition / Measurable Objectives
Root Cause & Gap Analysis

The A3 Process: Define the Theme
• What is our area of focus?
• Articulating the right theme will force you to
focus on the right problem.
• Should be closely aligned with organizational
goals to avoid spending limited time and
resources on trivial issues.
• Avoid judging or offering solutions.
• Discussion: Sample A3s
14

A3 Roles & Responsibilities
• Problem owner
– Individual who’s accountable both for the results
and the process for achieving results.
– Problem owners have the authority to engage
anyone needed and the responsibility to
engage all relevant parties.
• Coach
– Person teaching the owner the problem-solving
process.
– Typically the owner’s direct supervisor.
16

Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Check, Act
Background
Current Condition
Effect Confirmation
Follow-up Actions
• What?
• Who?
• When?
• Where? (if relevant)
• Diagram of desired state
• Measurable targets – how will we know that
the improvement has been successful?
• Diagram of current situation or process
• What about it is not ideal?
• Extent of the problem (metrics)
• Problem statement
• Context - why is this a problem? (visual)
• Graphical depiction of the most likely direct
(root) causes
• What measurable results did the solution
achieve (or will be measured to verify
effectiveness)?
• Who’s responsible for ongoing
measurement?
• Where else in the organization can this
solution be applied?
• How will the improved state be standardized
and communicated?

The A3 Process:
Background
• Include a problem statement
– State the problem; do not offer a solution
• Background – information for understanding the
importance and extent of the problem.
– How does the problem relate to company goals?
– How was the problem discovered? How long has it been a
problem?
– What evidence demonstrates that there’s a problem?
– What degree of variation exists currently compared to a previous
state?
• Tailor information for the audience.
• Present information visually.
• “Sell” the need for improvement; create a sense of
urgency.
18

Background Sections
19
Gray – highest industry quality scores
Purple – average industry quality scores (benchmark)
Blue – client quality scores

Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Check, Act
Background
Current Condition
Effect Confirmation
Follow-up Actions
• What?
• Who?
• When?
• Where? (if relevant)
• Diagram of desired state
• Measurable targets – how will we know that
the improvement has been successful?
• Diagram of current situation or process
• What about it is not ideal?
• Extent of the problem (metrics)
• Problem statement
• Context - why is this a problem?
• Graphical depiction of the most likely direct
(root) causes
• What measurable results did the solution
achieve (or will be measured to verify
effectiveness)?
• Who’s responsible for ongoing
measurement?
• Where else in the organization can this
solution be applied?
• How will the improved state be standardized
and communicated?

The A3 Process:
Current Condition
• Two primary goals
– Provide the audience with an overview of the current
process.
– Demonstrate a fact-based understanding of the problem.
• Content
– Provide a visual overview of the current state process or
system (strong use of charts, maps, graphs, tables,
photos, etc.).
– Highlight key factors in the current state.
– Provide evidence of the problem (data)
• Avoid qualitative opinions.
– Avoid suggesting solutions or judging.
22

Current State Documentation Options
• Go to the gemba! – OBSERVE
• Performance data
• Spaghetti diagrams
• Documentation / job aid review
• Videotape / photos
• Worker interviews
• Work samples
• Mapping
– Value Stream Maps (VSM) - strategic
– Metrics-Based Process Mapping (MBPM) – tactical
23

Sample A3s – Current State
Missing
inventory
resulting in
write-offs
Poor
correspondence
quality

The A3 Report:
Targets / Measurable Objectives
• Purpose
– How will we know that the improvement has been
successful?
– What standard or basis of comparison will be
used?
• Pointers
– Use measurable objectives when possible.
– Consider how data will be collected and shared
to evaluate the effectiveness of the implemented
solution(s).
26

I.T.R. Process
Projected Summary Metrics
Customer Request to Close-Out
27
Metric
Current
State
Projected
Future State
Project %
Improvement
Timeline Lead Time 36 Days 16.5 Days 54%
Timeline Process Time 5.75 Hrs 4 Hrs 30%
% Activity 2% 3% 52%
Rolled First Pass Yield 21% 69% 229%
Total Process Time 14.75 Hrs 5 Hrs 66%
Labor Requirements 2.0 FTEs 1.7 FTEs 15%
Freed Capacity * - .23 FTEs -
* Freed Capacity when rolled out to all Software I.T.Rs ≈ 6 FTEs

• Refrigerant Adjustments / Write Offs Reduced To X%
Sample A3
• 100% Of Branches Performing Quarterly
Audits On All Service Inventory Sites.
• Reduce Audit Process from monthly at 226
minutes to quarterly at 104 Minutes.

The A3 Report:
Root Cause Analysis
• Show the root cause of the problem(s)
identified in the current state.
• Separate symptoms and opinions from
cause-and-effect determination.
• Consider which techniques will be most
useful in gaining root cause insight.
• Identify add’l tests, if needed, to establish
level of certainty re: cause and effect.
• Summarize your findings visually.
30

Root Cause Analysis
31

Root Cause Analysis (RCA)
• RCA is necessary to:
–Avoid jumping to conclusions.
–Avoid creating “band-aid” fixes
(addressing only the symptoms).
–Select proper countermeasures.
–Design and implement lasting
solutions that truly eliminate the
problem.
32

Root Cause Analysis Tools
• Simple problems
– Five Why’s
– Problem Analysis Tree
• More complex problems
– Brainstorm causes (fishbone)
– Tally frequency of most likely causes
(check sheet)
– Identify relevant few (Pareto analysis)
for countermeasure development
33
If
necessary

Five Why’s Example
1. Why is the error report being prepared?
• My supervisor told me to.
2. Supervisor – Why are you asking for this report?
• One of the standard reports to be prepared per my
predecessor – I have yet to determine its usage.
3. Predecessor – Why did you initiate this report?
• Report was required in the past because personnel in
order entry were making data input errors.
4. Data entry – Why were orders being input with errors?
• Orders received via fax were blurry and hard to read.
5. Data entry - Why were the fax orders hard to read?
• Fax machine was old and of low quality. It was replaced
10 months ago and errors no longer are occurring.
Problem: Report is taking too much of an employee’s time;
team questions whether the report is needed

Problem Analysis Tree
Problem: Documents are not being translated well and on time
Late or poorly
translated
documents
Translation
problems**
Lost docs*
In physical transit
In cyberspace
In in-basket
In out-basket
* Lost and found = 40%; lost & never found = 5%; stuck in system = 55%
** Rework on over 50% of documents
Translator doesn’t
understand original
Translator
understands
original, but still
poor translation
Poor
original
Translator
skills
Wrong
technical
vocabulary
Poorly
expressed
No tracking
Large batches
Confusing
formats
Faxed / poor
resolution
Random
vocabulary
Lack of training
No standard
Selection
Unclear
expectations
Training
Poor editing
Uneven
workload

Cause-and-Effect Diagram
(aka Fishbone, Ishikawa)
• Brainstorming tool used to identify most likely
causes for an undesirable effect
• Explores potential causes in 6 categories (6 M’s):
– People (“Man”)
– Material/Information - Inputs used in the process
– Method - Procedures, work instructions, processes
– Machine - Equipment, computers, tools, supplies
– Measurement - Techniques used for assessing the
quality/quantity of work, including inspection
– Environment (“Mother Nature”) - External & internal
• Use other categories if appropriate
36

Cause-and-Effect Diagram (continued)
• Effective brainstorming tool
– Forces teams to consider all possible causes
• Decreases the likelihood that something is being
overlooked
• Shows us the possible causes, but not how
much each contributes, if at all, to the problem
• Does not provide solutions / countermeasures
37

Cause-and-Effect Diagram
Machine Measurement Environment
People Material / Info Method
Budgets
Submitted Late
Lack of experience
Time availability
No sense of import
No stnd spread sheet
Email vs. FedEx
No standard work
Input rec’d late
Forecast in other system
Manual vs. PC
System avail.
No milestones
$ vs. units
Weather delays
Dispersed sales force
Changing schedule

Techs Moving Product
Skill Set
Repair TAT
Productivity
Man
Data Collection
GMP
Reason
Man Power Flexing Between Families
Schedule
Estimates
Low Backlog
Non Standard Bench Set Up
Bag Refill Process
Component Parts
Materials
Measures
Labor Time Collection
Feed Back Frequency
Incorrect Dates Recorded
Machine
Sap Data Entry
Shared Equipment
FIFO for Repair Units
Methods
Batching
Cherry Picking
Complaints Sent to W.R.
Testing Guidelines
Planning
Tech Documentation
Ease of Use
No Std Repair
Troubleshooting
Variation in complexity
Environment
Demand Variation
Shipping By product Line
Flex Schedule/Breaks
Blue affect productivity
Yellow Most affect TAT

Check Sheets
• Help collect and record process data in an
organized way (how often are certain events
occurring?)
• Provides factual data to help analyze process
(transition from subjective to objective)
• Detects patterns
• Includes “likely candidates” from Cause-and-Effect
Diagram (the relevant few)
• Basis for Pareto Analysis
• NOTE: Make it easy & collect data for limited
period of time only
41

Check Sheets Quantify Occurrences
Reason Tally
Material shortage ||||| ||
Quality issue requiring
rework
|||||
Staffing/absenteeism |||
Order entry error ||||| |||||
Changing customer
requirements w/ no
adjustment to expected
delivery
||||| ||||| |||
Equipment failure |
42
Root Cause Analysis: Late Shipments

Pareto Analysis
• Named after Wilfredo Pareto (18th century Italian
economist/statistician) who discovered the 80-20
principle.
– 20% of the people held 80% of the wealth
• Focuses our attention on the VITAL FEW issues
that have the greatest impact to avoid spending
energy on the TRIVIAL MANY.
• A type of bar graph that displays information/data in
order of significance.
• A visual aid for defining & prioritizing problems.
43

Pareto Chart
Credit Application Delays
2909
627
561
242
180
2493
41%
77%
86%
100%
97%
94%
0
500
1000
1500
2000
2500
3000
3500
No Signature Insufficient Bank
Info
No prior address Current
Customer
No Credit History Other
Reason for Delay
Occurrences
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

Sample A3

Class Activity
Begin performing root cause
analysis for your class project
(or determine which tools are
relevant)
15 mins to work
47

Nailing the left side of the
A3 report is the most
important element in the
entire process.
48

Left Side Reminders
• Background
– Need to quantify the problem to reduce
subjective / emotional responses
• Financial
• Labor effort (which can be monetized)
• Lead time / responsiveness (which can be
monetized)
• Market share
• Compliance-related
– Problem definition – proper scoping is vital!
• Recommendation: Include one very specific
problem statement in background section.
49

Left Side Reminders (continued)
• Target Condition / Desired state
– Targeted performance metric, not the solution!
– Must include measurable objectives
• Include both % improvement and the raw numbers (from
what to what)
• Root cause
– You cannot solve a problem without knowing it’s root
cause!
– Avoid making assumptions - “Do you think or do you
know?”
– When multiple root causes exist, quantify and select
the relevant few for countermeasure development.
50

Left Side Reminders (continued)
• Displaying information visually aids
tremendously in the absorption rate of the
information
– Pie charts, trend charts, graphs, bar diagrams
– Drawings
– Photographs
– Problem trees, fishbone diagrams, Pareto charts
– Process maps
– Representations of the people involved
– Anything that communicates information more quickly
and effectively than words
51

Once you know the root cause,
brainstorm and prioritize solutions
1. List relevant countermeasures.
2. Eliminate those that aren’t possible.
– Regulatory, budgetary, resource availability, system
capability, etc.
3. Combine those that are similar.
4. Number the countermeasures sequentially.
5. Place countermeasures accordingly on the PACE
Prioritization Grid.

Building a Lean Enterprise
Lean
Tools

PACE Prioritization Matrix
High Low
Anticipated Benefit
Ease
of
Implementation
Difficult
Easy
20
7
5
13
4 23
1
22
8
9
2
10
16
11
6
12
14
19
15
17
3
21
18

The A3 Report:
• Consider all options
– Be innovative – be willing to challenge your paradigms and help
others challenge their own
• Make sure the countermeasure is directed very specifically
to the key root causes
• Make is clear exactly what will be done, by whom, when,
where, how, in what order
– Gantt charts can be helpful
– How often will the implementation plan be reviewed?
• Aim for full implementation by a specific date
• At this point, the problem owner’s key roles shifts to
advocate and project manager
• Cross-functional involvement and consensus is a vital
success factor

Sample A3

The A3 Report:
Effect Confirmation
• Tie confirmation directly to the target condition.
• Define 2-5 key performance indicators (KPIs).
• Determine ways to verify the effectiveness of the
countermeasures, one by one if possible.
• Plan in advance for the data that will need to be
collected.
• Identify who will help collect the data and how
frequently.

© 2011 Karen Martin & Associates 62
The A3 Report:
Follow-up Actions
• How will you communicate the new process?
• Who will monitor the process?
• Which metrics will be used to measure ongoing
performance?
• Look for similar processes within the department
and across the organization that can benefit from
these countermeasures
• Ensure ongoing improvement – who will do this?
• Share the wealth!
– Communicate results across the organization and teach
others to problem-solve via the A3 process

Sample A3
Effect Confirmation & Follow-up Actions
Follow-up Actions
Effect Confirmation

© 2011 Karen Martin & Associates ©
65
Additional A3 Considerations
• A3 Roles & Responsibilities
– Problem Owner – Person(s) accountable for
results; authorized to engage any and all parties
needed
– Problem Coach – Person(s) “developing” the
process owner into a skilled problem-solver;
typically leadership.
• A3 vs. Value Stream Mapping – how they
work together (or separately)

PDCA: Plan Stage
66
Primary
problem-solving
role:
Investigator

PDCA: Do-Check-Act Stages
67
Primary
problem-solving
role:
Director

Other A3 Applications and
Common A3 Components
• Proposal
– Theme
– Background
– Current Condition
– Analysis and Proposal
– Plan Details
– Unresolved Issues (if
relevant)
– Implementation
Schedule
– Total Effect
• Status Report
– Theme
– Background
– Current Condition
– Results
– Unresolved Issues /
Follow-up Actions
– Total Effect

In Summary
A3 reports should become a standardized
form of currency for problem-solving,
dialogue, and decision-making in your
organization– creating an organization of
“scientists” who continually improve
operations and achieve results through
constant learning from the work at hand.
69

A3 Problem Solving Technique.pdf

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