UCSD Class: A3 Management and Root Cause Analysis
72 likes101,485 views
The document outlines the A3 management process, a structured approach to problem-solving widely used in lean enterprises. It emphasizes the creation and utilization of A3 reports to foster collaborative problem-solving, clarify root causes, and promote organizational learning. Key components include a defined problem, current and target conditions, and actionable countermeasures, all aimed at shifting organizational culture and enhancing workforce development.
UCSD Class: A3 Management and Root Cause Analysis
- 1. A3 Management Lean Enterprise Program UCSD Extension Instructor: Karen Martin
- 2. 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.
- 4. 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. -- Albert Einstein © 2011 Karen Martin & Associates 4
- 5. What is A3? • The core of Toyota’s renowned management system. • A structured method for applying the PDCA (plan-do-check-act) approach to problemsolving. • International designation for 11 x 17” paper. © 2011 Karen Martin & Associates 5
- 6. Sample A3 Report Plan Do, Check, Act 6
- 7. 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. © 2011 Karen Martin & Associates 7
- 8. 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.” © 2011 Karen Martin & Associates 8
- 9. 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. © 2011 Karen Martin & Associates 9
- 10. Deming’s PDCA Cycle Plan Analyze results & take appropriate action Develop hypothesis & design experiment Act Do Check © 2011 Karen Martin & Associates Measure results Conduct experiment
- 11. Problem-Solving Steps { Plan At least 50% of the total time 1. Identify the problem 2. Explore the problem – What’s the true root cause? 3. Consider potential solutions – Hypothesize 4. Test solutions – Confirm hypothesis Do 5. Implement solution(s) 6. Measure results Check – Did the hypothesis prove out? Act 7. Adjust as needed © 2011 Karen Martin & Associates 11
- 12. Common Components of the A3 Report Plan Theme: ________________________________ Background Do, Check, Act Owner: ________________________________ Countermeasures / Implementation Plan Current Condition Effect Confirmation Target Condition / Measurable Objectives Follow-up Actions Root Cause & Gap Analysis
- 13. Common Components of the A3 Report Plan Do, Check, Act Theme: ________________________________ Owner: ________________________________ Background Countermeasures / Implementation Plan Current Condition Effect Confirmation Target Condition / Measurable Objectives Follow-up Actions Root Cause & Gap Analysis
- 14. 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 © 2011 Karen Martin & Associates 14
- 15. Common Components of the A3 Report Plan Theme: ________________________________ Background Do, Check, Act Owner: ________________________________ Countermeasures / Implementation Plan Current Condition Effect Confirmation Target Condition / Measurable Objectives Follow-up Actions Root Cause & Gap Analysis
- 16. 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. © 2011 Karen Martin & Associates 16
- 17. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Check, Act Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? (visual) • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
- 18. 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. © 2011 Karen Martin & Associates 18
- 19. Background Sections Gray – highest industry quality scores Purple – average industry quality scores (benchmark) Blue – client quality scores 19
- 21. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Check, Act Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
- 22. 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. © 2011 Karen Martin & Associates 22
- 23. 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 © 2011 Karen Martin & Associates 23
- 24. Sample A3s – Current State Poor correspondence quality Missing inventory resulting in write-offs
- 25. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Check, Act Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
- 26. 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). © 2011 Karen Martin & Associates 26
- 27. I.T.R. Process Projected Summary Metrics Customer Request to Close-Out Metric Current Projected Project % State Future State 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% - .23 FTEs - Freed Capacity * * Freed Capacity when rolled out to all Software I.T.Rs ≈ 6 FTEs 27
- 28. Sample A3 Target Condition / Measurable Objectives • Refrigerant Adjustments / Write Offs Reduced To X% • 100% Of Branches Performing Quarterly Audits On All Service Inventory Sites. • Reduce Audit Process from monthly at 226 minutes to quarterly at 104 Minutes. © 2011 Karen Martin & Associates
- 29. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Check, Act Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
- 30. 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. © 2011 Karen Martin & Associates 30
- 31. Root Cause Analysis © 2011 Karen Martin & Associates 31
- 32. 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. © 2011 Karen Martin & Associates 32
- 33. 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 © 2011 Karen Martin & Associates If necessary 33
- 34. Five Why’s Example Problem: Report is taking too much of an employee’s time; team questions whether the report is needed 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.
- 35. Problem Analysis Tree Problem: Documents are not being translated well and on time In physical transit Lost docs* No tracking In cyberspace Large batches In in-basket Confusing formats In out-basket Poor original Late or poorly translated documents Translator doesn’t understand original Translation problems** Translator understands original, but still poor translation Faxed / poor resolution Random vocabulary Translator skills Selection Lack of training Wrong technical vocabulary Training No standard Poor editing Poorly expressed * Lost and found = 40%; lost & never found = 5%; stuck in system = 55% ** Rework on over 50% of documents Unclear expectations Uneven workload
- 36. 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 © 2011 Karen Martin & Associates 36
- 37. 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 © 2011 Karen Martin & Associates 37
- 38. Cause-and-Effect Diagram People Material / Info Lack of experience Method No stnd spread sheet Changing schedule Input rec’d late Time availability No sense of import No standard work Email vs. FedEx Budgets Submitted Late Forecast in other system Manual vs. PC System avail. Machine No milestones $ vs. units Measurement Weather delays Dispersed sales force Environment
- 39. Methods Machine Man Batching Man Power Flexing Between Families Schedule Blue affect productivity Techs Moving Product Yellow Most affect TAT Skill Set Sap Data Entry Variation in complexity Estimates FIFO for Repair Units Cherry Picking Troubleshooting Shared Equipment Data Collection Complaints Sent to W.R. GMP Tech Documentation Ease of Use Reason No Std Repair Flex Schedule/Breaks Testing Guidelines Low Backlog Planning Repair TAT Productivity Demand Variation Non Standard Bench Set Up Labor Time Collection Bag Refill Process Component Parts Shipping By product Line Feed Back Frequency Incorrect Dates Recorded Environment Measures Materials
- 41. 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 © 2011 Karen Martin & Associates 41
- 42. Root Cause Analysis: Late Shipments Check Sheets Quantify Occurrences Reason Material shortage Quality issue requiring rework Staffing/absenteeism Order entry error Changing customer requirements w/ no adjustment to expected delivery Equipment failure Tally ||||| || ||||| ||| ||||| ||||| ||||| ||||| ||| | 42
- 43. 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. © 2011 Karen Martin & Associates 43
- 44. Pareto Chart Credit Application Delays 3500 100% 97% 100% 94% 3000 86% 77% 80% 2493 2500 Occurrences 90% 2909 70% 60% 2000 50% 1500 41% 40% 30% 1000 627 20% 561 500 242 180 0 10% 0% No Signature Insufficient BankNo prior address Info Current Customer Reason for Delay No Credit History Other
- 45. Sample A3 Root Cause & Gap Analysis
- 46. Sample A3 Root Cause & Gap Analysis
- 47. Class Activity Begin performing root cause analysis for your class project (or determine which tools are relevant) 15 mins to work © 2011 Karen Martin & Associates 47
- 48. Nailing the left side of the A3 report is the most important element in the entire process. © 2011 Karen Martin & Associates 48
- 49. 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. © 2011 Karen Martin & Associates 49
- 50. 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. © 2011 Karen Martin & Associates 50
- 51. 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 © 2011 Karen Martin & Associates 51
- 52. Common Components of the A3 Report Plan Theme: ________________________________ Background Do, Check, Act Owner: ________________________________ Countermeasures / Implementation Plan Current Condition Effect Confirmation Target Condition / Measurable Objectives Follow-up Actions Root Cause & Gap Analysis
- 53. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Check, Act Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
- 54. 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. © 2011 Karen Martin & Associates
- 55. Building a Lean Enterprise Lean Tools
- 56. PACE Prioritization Matrix Easy 5 4 13 23 8 22 17 3 10 21 1 16 15 20 19 14 6 7 11 2 18 12 Difficult Ease of Implementation 9 High Anticipated Benefit Low
- 57. The A3 Report: Countermeasures / Implementation Plan • 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 © 2011 Karen Martin & Associates
- 58. Sample A3 Countermeasures / Implementation Plan
- 59. Common Components of the A3 Report Plan Do, Check, Act Theme: “What is our area of focus?” Background Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
- 60. 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
- 61. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Check, Act Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
- 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 © 2011 Karen Martin & Associates 62
- 63. Sample A3 Effect Confirmation & Follow-up Actions Effect Confirmation Follow-up Actions
- 64. © 2011 Karen Martin & Associates 64
- 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) © 2011 Karen Martin & Associates © 65
- 66. PDCA: Plan Stage Primary problem-solving role: Investigator © 2011 Karen Martin & Associates 66
- 67. PDCA: Do-Check-Act Stages Primary problem-solving role: Director © 2011 Karen Martin & Associates 67
- 68. Other A3 Applications and Common A3 Components • Proposal – – – – – – • Status Report Theme Background Current Condition Analysis and Proposal Plan Details Unresolved Issues (if relevant) – Implementation Schedule – Total Effect – – – – – Theme Background Current Condition Results Unresolved Issues / Follow-up Actions – Total Effect © 2011 Karen Martin & Associates
- 69. 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. © 2011 Karen Martin & Associates 69
- 70. 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.
- 71. For Further Questions Karen Martin, Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com © 2011 Karen Martin & Associates 71