A3 Management (Part 1 of 2)
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Company
LOGO
Lean Webinar Series A3 Management – Part I
December 6, 2011
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© 2011 Karen Martin & Associates, LLC
Welcome!
To new friends and old across the U.S.
(28 states)
To our global friends in:
Argentina
Australia
Canada
Germany
The Netherlands
Romania
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GoToWebinar Attendee Interface
Viewer Window Control Panel
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© 2011 Karen Martin & Associates, LLC
Two Ways to Listen
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OR
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© 2011 Karen Martin & Associates, LLC
Two Ways to Ask Questions
5
1. Raise your hand – you
will be un-muted and
can ask verbally.
2. Type your question
into the question log.
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© 2011 Karen Martin & Associates, LLC
Your Instructor
Early career as a scientist; migrated to quality &
operations design in the mid-80’s.
Launched Karen Martin & Associates in 1993.
Provide business performance improvement and
Lean transformation support in office, service &
knowledge work environments.
Co-author of The Kaizen Event Planner; co-
developer of Metrics-Based Process Mapping:
An Excel-Based Solution; author of forthcoming
The Outstanding Organization (McGraw-Hill,
May 2012).
Instructor in University of California, San Diego’s
Lean Enterprise program.
To subscribe to our list:
www.ksmartin.com/subscribe
6
Karen Martin, Principal
Karen Martin & Associates, LLC
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© 2011 Karen Martin & Associates, LLC
Webinar Schedule
Content
11:00 am -12:00 pm PT
Q&A
12:00-12:30 pm PT
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Recorded webinars are available on our Vimeo site:
www.vimeo.com/karenmartinassoc
Materials are available on our SlideShare site:
www.slideshare.com/karenmartin2
To register for our newsletter to learn about future webinars:
www.ksmartin.com/subscribe
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2012 Webinars Month Topic
January Strategy Deployment (Hoshin Kanri)
February A Factory of One – Dan Markovitz
March The Outstanding Organization: Achieving Clarity
April The Outstanding Organization: Achieving Focus
May The Outstanding Organization: Achieving Discipline
June The Outstanding Organization: Achieving Engagement
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The Outstanding Organization by Karen Martin
Book launch – May 18, 2012
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© 2011 Karen Martin & Associates, LLC
Agenda
Part 1 - Tuesday, December 6
A3 Overview
“Plan” stage of PDSA
Root cause analysis
Part 2 – Wednesday, December 7
“Do-Study-Adjust” stages of PDSA
How to accelerate building problem owners’ and coaches’
capabilities
Common problem-solving pitfalls
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For Further Study
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© 2011 Karen Martin & Associates, LLC
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.
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— Albert Einstein
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© 2011 Karen Martin & Associates, LLC
What is A3?
The core of Toyota’s renowned management system.
A structured method for applying the PDSA (plan-do-study-adjust) approach to problem-solving.
International designation for 11 x 17” paper.
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© 2011 Karen Martin & Associates, LLC
The A3 Report
A concise “story board” that reflects the problem solver’s discoveries & thought process along the way. Limited “real estate” develops precise
thinking.
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 OK.
Neither the format nor the specific
sections are set in stone. 13
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The A3 Report is a Communication,
Consensus-Building and Learning Tool
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George Koenigsaecker, Leading the Lean Enterprise Transformation.
The A3 report is
a story board that
reflects the
problem-solving
process.
It is created as
you progress
through PDSA,
not after.
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PDSA Cycle – The Scientific Method
Plan
Do
Study
Adjust
Develop
hypothesis &
design
experiment
Conduct
experiment
Measure
results
Analyze
results &
adjust as
appropriate
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© 2011 Karen Martin & Associates, LLC
Problem-Solving Steps
1. Identify the problem
2. Explore the problem deeply 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; prepare to improve again
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Plan
Do
Study
Adjust
{ At least
50% of
the total
time
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Sample A3 Report
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Plan Do, Study, Adjust
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© 2011 Karen Martin & Associates, LLC
Benefits of the A3
Creates consistency in how
organizations go about solving
problems, managing projects, and
making decisions.
Builds critical thinking and problem-
solving capabilities across the entire
organization.
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.
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© 2011 Karen Martin & Associates, LLC
Benefits of the A3 (continued)
Ownership role drives accountability and reduces risk of
“it’s everything else’s problem.”
Stimulates data-driven decisions.
Fairness and accountability replace blame and deceit.
Transparency re: problems spawns a commitment to
action.
Develops deep organizational capabilities.
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Common Components of the A3 Report
Theme: ________________________________ Owner: ________________________________
Plan Do, Study, Adjust
Background
Current Condition
Countermeasures / Implementation Plan
Effect Confirmation
Follow-up Actions
Target Condition / Measurable Objectives
Root Cause & Gap Analysis
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© 2011 Karen Martin & Associates, LLC
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.
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Common Components of the A3 Report
Theme: ________________________________ Owner: ________________________________
Plan Do, Study, Adjust
Background
Current Condition
Countermeasures / Implementation Plan
Effect Confirmation
Follow-up Actions
Target Condition / Measurable Objectives
Root Cause & Gap Analysis
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Common Components of the A3 Report
Theme: ________________________________ Owner: ________________________________
Plan Do, Study, Adjust
Background
Current Condition
Countermeasures / Implementation Plan
Effect Confirmation
Follow-up Actions
Target Condition / Measurable Objectives
Root Cause & Gap Analysis
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© 2011 Karen Martin & Associates, LLC
Coach / Mentor’s Role
Assure problem is relevant to the
organization’s annual business goals.
Focus resources on the highest priority
problems.
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© 2011 Karen Martin & Associates, LLC
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, concluding re: cause, or offering
solutions.
E.g.: Flawed order entry process vs. Streamline order
entry process
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Common Components of the A3 Report
Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Study, Adjust
Background
Current Condition
Countermeasures / Implementation Plan
Effect Confirmation
Follow-up Actions
• What?
• Who?
• When?
• Where? (if relevant)
Target Condition / Measurable Objectives
• 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)
Root Cause & Gap Analysis
• 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?
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© 2011 Karen Martin & Associates, LLC
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.
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Sample Background Material
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Gray – highest industry quality scores
Purple – average industry quality scores (benchmark)
Blue – client quality scores
sss
FY 2008 FY 2009 FY 2010
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Sample Background Material
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0
0
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Coach / Mentor’s Role
Ask probing questions to assure proper
background has been obtained and depicted
as concisely as possible.
Aiming for emotional impact – why is this a
problem?
Don’t tell the problem owner what to include.
Teach visual display options if owner is
unfamiliar with them.
© 2009 Karen Martin & Associates 30
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Potential Development Need
Become proficient in visual data display
options:
Bar charts
Histograms
Trend / line charts
Pie charts
Pareto charts
Etc.
© 2009 Karen Martin & Associates 31
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Common Components of the A3 Report
Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Study, Adjust
Background
Current Condition
Countermeasures / Implementation Plan
Effect Confirmation
Follow-up Actions
• What?
• Who?
• When?
• Where? (if relevant)
Target Condition / Measurable Objectives
• 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?
Root Cause & Gap Analysis
• 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?
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© 2011 Karen Martin & Associates, LLC
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.
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Common Components of the A3 Report
Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Study, Adjust
Background
Current & Target Conditions
Countermeasures / Implementation Plan
Effect Confirmation
Follow-up Actions
• What?
• Who?
• When?
• Where? (if relevant)
• Include pre- and post metrics table
• Problem statement
• Context - why is this a problem?
Root Cause & Gap Analysis
• 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?
Metric Current State Desired Target
Condition
Projected %
Improvement
Lead Time
Quality
Labor Effort
Morale/Turnover
Inventory Turns
Market Share
Returned Parts
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© 2011 Karen Martin & Associates, LLC
Coach / Mentor’s Role
Ask probing questions to assure relevant
metrics have been selected.
3-5 key performance indicators
How will we know if we’d been successful?
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© 2011 Karen Martin & Associates, LLC
Current State Documentation
Options
Go to the gemba! – OBSERVE
Performance / audit data
Mapping
Value Stream Maps (VSM) - strategic
Metrics-Based Process Mapping (MBPM) – tactical
Spaghetti diagrams
Documentation / job aid review
Videotape / photos
Worker interviews
Work samples
Etc.
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Sample A3s – Current State
Missing
inventory
resulting in
write-offs
Poor
correspondence
quality
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Common Components of the A3 Report
Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Study, Adjust
Background
Current Condition
Countermeasures / Implementation Plan
Effect Confirmation
Follow-up Actions
• What?
• Who?
• When?
• Where? (if relevant)
Target Condition / Measurable Objectives
• 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?
Root Cause & Gap Analysis
• 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?
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© 2011 Karen Martin & Associates, LLC
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).
Begin planning for the Effect Confirmation section, but don’t
focus on it yet.
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© 2011 Karen Martin & Associates, LLC
Target Condition vs. Effect
Confirmation
When setting target metrics, begin thinking
how you’ll confirm performance (effect
confirmation section).
Who? How frequently? How?
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© 2011 Karen Martin & Associates, LLC
Coach / Mentor’s Role
Ask probing questions to assure target
condition meets business needs.
It’s better to set stretch objectives and fall
a little short, than to set objectives that
you’re sure you’ll hit.
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Common Components of the A3 Report
Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Study, Adjust
Background
Current Condition
Countermeasures / Implementation Plan
Effect Confirmation
Follow-up Actions
• What?
• Who?
• When?
• Where? (if relevant)
Target Condition / Measurable Objectives
• 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?
Root Cause & Gap Analysis
• 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?
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© 2011 Karen Martin & Associates, LLC
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 additional tests, if needed, to establish
level of certainty re: cause and effect.
Summarize your findings visually.
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© 2011 Karen Martin & Associates, LLC
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.
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© 2011 Karen Martin & Associates, LLC
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
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If
necessary
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© 2011 Karen Martin & Associates, LLC
Coach / Mentor’s Role
Teach root cause analysis tools if owner
isn’t yet proficient. (mentor)
Ask probing questions to make sure true
root cause has been found. (coach)
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© 2011 Karen Martin & Associates, LLC
Nailing the Plan phase of
PDSA is the most
important step in the
entire problem-solving process.
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Tomorrow – Part 2 – Do, Study, Adjust
Theme: ________________________________ Owner: ________________________________
Plan Do, Study, Adjust
Background
Current Condition
Countermeasures / Implementation Plan
Effect Confirmation
Follow-up Actions
Target Condition / Measurable Objectives
Root Cause & Gap Analysis
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© 2011 Karen Martin & Associates, LLC
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.
— John Shook, Managing to Learn
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© 2011 Karen Martin & Associates, LLC
Your Questions
How long developing a tactical A3 take (3
levels of A3)?
Who should be involved in developing A3?
Please provide examples of healthcare
organizations where A3 has been used
successfully to achieve improvement.
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Karen Martin, Principal
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San Diego, CA 92122
858.677.6799
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