A3 Problem Solving Process

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

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

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

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

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

6. STAGES OF ABILITY: KNOWLEDGE AND SKILLS SKILLS: Can Do and Improve § 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. Do Well Capability 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. Understand Knowledge 6 © Operational Excellence Consulting

7. A3 FRAMEWORK OVERVIEW 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 Thinking 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. A3 FRAMEWORK A3 A3 Problem Solving Report 7 © Operational Excellence Consulting

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

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

10. A3 THINKING vs. A3 PROBLEM SOLVING vs. A3 REPORT 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 10 © Operational Excellence Consulting

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

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

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

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

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

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

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

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

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

20. 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 Gap = Problem Current situation – what is actually happening 20 © Operational Excellence Consulting

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

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

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

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

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

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

27. STEP 2: BACKGROUND 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 ● 27 © Operational Excellence Consulting

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

29. STEP 2: BACKGROUND – KEY POINTS 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 ● 29 © Operational Excellence Consulting

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

31. EXAMPLES OF PROBLEM STATEMENTS 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%. 31 © Operational Excellence Consulting

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

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

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

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

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

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

38. ADAPTING A3 FOR YOUR AUDIENCE 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) § § § 38 © Operational Excellence Consulting

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

40. ABOUT 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 © Operational Excellence Consulting