A3 Report – Roadmap for Change in Manufacturing

1. UUMEP Manufacturing Elevated Theresa Drulard

2. A3 Report Roadmap for change

3. A3, Roadmap, Storyboard… • What is an A3 Report? • Why? • Solve problems together • Build Problem Solving Skills • Shared Vision • Templates • Examples

4. A3 Report defined A Toyota-pioneered practice of getting the problem, the analysis, the corrective actions, and the action plan down on a single sheet of large (A3) paper, often with the use of graphics. At Toyota, A3 reports have evolved into a standard method for summarizing problem-solving exercises, status reports, and planning exercises like value-stream mapping. A3 paper is the international term for paper 297 millimeters wide and 420 millimeters long. The closest U.S. paper size is the 11-by-17 inch tabloid sheet. From the Lean Lexicon 5th Edition on https://www.lean.org

5. Problem-Solving Template • The A3 Problem Solving template lays out an entire plan, large or small, on one sheet of paper. • It should be visual and extremely concise. • It should tell a story, laid out from upper left-hand side to lower right, which anyone can understand. • What is important is not the format, but the process and thinking behind it. • It fosters dialogue. • It develops problem solvers.

6. Why A3? BuildProblem-Solving Skills Question, Coach & Teach

7. Why A3? People as Problem-Solvers Understand the messy details Find the problems Respond to the problems

8. Why A3?Solve Problems Together Shift from a debate about who owns what (an authority-focused debate) to a dialogue around what is the right thing to do (a responsibility-focused conversation).

9. “Having no problem is the biggest problem of all” - Taiichi Ohno

10. Why A3? Shared Vision When the issue is described on a single sheet of paper it enables everyone touching the issue to see through the same lens.

11. Team Current date Project/Process Title Leader: B. Bedder Managers: Person Name Members: Others on team Facilitators: B. Patient PLAN (Future State): Theme: Problem statement or Goal Show the plan for the future. What will it look like when you’ve reached the goal or solved the problem? Try to use pictures or graphics. DO: Current Condition: BACKGROUND: Tell the story: relevant information and facts about this process, problem or project. Use lots of details and be as brief as possible. Include any attempts at problem solving, root cause analysis, improvements and their outcomes. CHECK: Metrics or data that demonstrate how the actions are supporting (or not) the PLAN. These should be relevant and easy to understand. Again, graphics help you say a lot in a small space. ACT: • What will you do next? • If your “check” shows your actions are supporting your plan? • 3) IF your “Check” shows your actions aren’t helping you reach your goals? • 4) Is there something else you need to do because of what you see in your data?

12. A3 Questions • What is the problem or issue? • Who owns the problem? • What is the root cause of the problem? • What are some possible countermeasures? • How will you decide which countermeasures to propose? • How will you get agreement from everyone concerned? • What is your implementation plan – who, what, when, where, how? • How will you know if your countermeasures work? • What follow up issues can you anticipate? What problems may occur during implementation? • How will you capture and feed back the learning?

13. PDCA

14. Team April 21, 2008 Financial Services Leader: B. Bedder Managers: Person Name Members: Others on team Facilitators: B. Patient PLAN (Future State): Theme: Reduce process times for financial services Eliminate OT VSM Re-design Form to reduce incoming errors to 3% Reduce process time (rework) by 17% Reduce wip errors 5% Current Condition: • BACKGROUND: • Prior to analysis: • 10 FTE, 56,000 requests processed /month • Meet 2-day SLA with OT (10 hours/wkavg) • Work typically received via interoffice mail • Manual tracking and communication (excel) • Data input to two excel worksheets • Multiple systems: Base24, EE, Xnet, Deposit System as well as desktop apps • Wastes – sorting, wait, transportation, defects. • Defects – 20% incoming errors, 7% wip errors, 2% escape errors • Process Time – longest times are in reviewing the Xnet reports and comparing against incoming data. Also, contacting the branch, but this varies. • High turnover rate – job is boring • Improvements • Electronic Xnet report (saves 5min/day) • Eliminate waiting for it to be delivered • Store it electronically in a shared folder instead of Troy’s filing cabinet. DO: ACT: CHECK: • Train on codes, Betty, 05/20/08 • Only permit 3 codes in EE, Tom, 06/15/08 • 3) Don’t permit skipped (blank) field, Tom, 06/15/08 • 4) Final approval of new form, Harris, 06/10/08 New design!

16. Title: What you are talking about. Background Recommendations Why are you talking about it? What is your proposed countermeasure(s)? Current Situation Where do we stand? Plan What’s the problem? Goal Where we need to be? What is the specific change you want to accomplish now? What activities will be required for implementation and who will be responsible for what and when? Analysis -What is the root cause(s) of the problem? - Follow - up How we will know if the actions have the impact needed? What remaining issues can be anticipated? Verble/Shook

17. Title: What you are talking about initials Owner Background Proposed Countermeasure(s) Why you are talking about it. - What is the business reason for choosing this issue? Your proposal to reach the future state, the target condition. - What alternatives could be considered? - How will you choose among the options? What decision criteria? How your recommended countermeasures will impact the root cause to change the current situation and achieve the target. Current Conditions Where things stand today. - What’s the problem with that, with where we stand? - What is the actual symptom that the business feels that requires action? Show visually – pareto charts, graphs, drawings, maps, etc. Plan A Gantt chart or facsimile that shows actions/outcomes, timeline and responsibilities. May include details on the specific means of implementation. - Who will do what, when and how? Indicators of performance, of progress. - How will we know if the actions have the impact needed? - What are the critical few, visual, most natural measures? Target/Goal(s) The specific outcome required for the business. - What is the specific change you want to accomplish now.? - How will you measure success? Analysis The root cause(s) of the problem. - Why are we experiencing the symptom? - What constraints prevent us from the goal? Choose the simplest problem-solving tool for this issue: - Five whys - Fishbone - QC Tools - SPC, Six Sigma, Shainen, Kepner Traego, others… Followup Remaining issues that can be anticipated. - Any failure modes to watch out for? Any unintended consequences? Ensure ongoing P-D-C-A. Yokoten as needed.

18. Name: Coach: Title Reason for choosing issue: Brief One or two bullets Analysis Visual Charts QC Tools Fishbone 5 Whys Current Conditions Summary Visual Map? Pareto? Problem Statement – what’s the actual pain/symptom being felt? Just the facts Countermeasure Options 1) ?? 2) ??? Evaluation of Options Criteria 2) Goal/Target Condition Brief One or two bullets

19. A3 Resources • “Managing to Learn: Using the A3 management process” by John Shook • Understanding A3 Thinking: A critical component of Toyota’s PDCA Management System by Sobek & Smalley • www.lean.org • Google: “A3 examples” or “filetype: PDF A3”