Recorded webinar: http://slidesha.re/1kwmhx4 Subscribe: http://ksmartin.com/subscribe For more information, see Chapter 4 of the Shingo Research Award winning The Outstanding Organization: http://bit.ly/TOObk A3 management is a fundamental Lean management practice for making effective improvement, solving problems, developing people, and building a learning organization. While this disciplined approach generates more effective and sustainable results than traditional problem solving, it’s arguably the process of developing skilled coaches that carries the greatest organizational benefits -- including the cultural shifts needed to accelerate transformation. With practice, the organization becomes more responsive, focused, and effective in delivering value to its customers and attracting and retaining talent. In this webinar, you will learn: • The mechanics of using PDSA (plan-do-study-adjust) for solving problems. • The vital role coaching plays in building organization-wide problem solving capabilities. • How to break the “telling” habit that disrespects a worker’s creative potential. • How to systematically build coaching capabilities to accelerate learning.

1. Webinar
July 3, 2014
A3 Management:
Effective Problem Solving

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3. © 2014 The Karen Martin Group, Inc. 3
 Consultant / Coach / Facilitator / Trainer:
Lean transformation & business performance
improvement in all industries.
 Teacher: University of California, San Diego
 Author & Speaker:
Karen Martin, President
@KarenMartinOpEx
2013 Shingo
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5. © 2014 The Karen Martin Group, Inc. 5
Next Webinars
• Thursday, July 31 – Coaching
• Thursday, August 28 – Kaizen Events

6. © 2014 The Karen Martin Group, Inc. 6
You will learn…
• The mechanics of using PDSA (plan-do-study-
adjust) for solving problems.
• The vital role coaching plays in building
organization-wide problem solving capabilities.
• How to break the “telling” habit that disrespects
a worker’s creative potential.
• How to systematically build coaching capabilities
to accelerate learning.

7. © 2014 The Karen Martin Group, Inc. 7
Problem: Defined
• A deviation from a known standard.
• A gap between where you are and where
you’d like or need to be.

8. © 2014 The Karen Martin Group, Inc. 8
Very few people are born
highly proficient problem solvers

9. © 2014 The Karen Martin Group, Inc. 9
Develop
hypothesis
Conduct
experiment
Measure
results
Refine
Standardize
Stabilize
See pp. 120-131 in
The Outstanding Organization

10. © 2014 The Karen Martin Group, Inc. 10
Continuous
Improvement
New
Problem
50-80%
of the
total
time
Detailed Steps
1. Define and break down the problem.
2. Grasp the current condition.
3. Set a target condition.
4. Conduct root cause & gap analysis.
5. Identify potential countermeasures.
6. Develop & test countermeasure(s)
7. Refine and finalize countermeasure(s).
8. Implement countermeasure(s).
Study
Evaluate
Results
9. Measure process performance.
10. Refine, standardize, & stabilize the process.
11. Monitor process performance.
12. Reflect & share learning.
Adjust
Do
Clarifying the PDSA Cycle
Plan
Develop
Hypothesis
Conduct
Experiment
Refine
Standardize
Stabilize
Phase

11. © 2014 The Karen Martin Group, Inc. 11
The Purpose of PDSA:
Effective Problem Solving
• Provides a methodical structure to
improve results.
• Breaks the habit of being unclear
about what the problem actually is.
• Breaks the habit of jumping to
solutions.
• Develops fact-based decision making.
• Develops deep critical thinking skills.

12. © 2014 The Karen Martin Group, Inc. 12

13. © 2014 The Karen Martin Group, Inc. 13
A3 Management drives answers to
these key questions…
• What do we know?
• What do we not know?
– What is still missing from the
picture?
• How are we going to find out?

14. © 2014 The Karen Martin Group, Inc. 14
Options for
Developing PDSA Capabilities
• Strategy Deployment
(Hoshin Kanri)
• A3 Management
• Kaizen Events
• Daily Kaizen / Kata
Macro
Micro

15. © 2014 The Karen Martin Group, Inc. 15
What is A3?
• The core of Toyota’s renowned management system.
• A structured method for applying the scientific method
(via plan-do-study-adjust) to problem solving.
• International designation for 11 x 17” paper.
15

16. © 2014 The Karen Martin Group, Inc. 16
2008:
A3 Management is “Codified”

17. © 2014 The Karen Martin Group, Inc. 17
Notice that it’s called
A3 Management
and NOT
A3 Report Generation

18. © 2014 The Karen Martin Group, Inc. 18
The Purpose of the Report:
Learning & Development
• Reflect the problem-solving process
• Assess learning
• Define developmental opportunities
• Build effective storytelling skills
• Create organization-wide consensus
about the problem and next steps
Using A3 without a highly proficient coach is
like learning to play the piano from YouTube.

19. Common Components & Structure of the A3 Report
Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Study, Adjust
Background
Current Condition
Countermeasures / Action Plan
Effect Confirmation
Follow-up Actions
• What?
• Who?
• When?
• Where? (if relevant)
Target Condition / Measurable Objectives
• Diagram of desired state VISUAL!
• Measurable targets – how will we know that the
improvement has been successful?
• Diagram of current situation or process VISUAL!
• What about it is not ideal?
• Extent of the problem (metrics)
• Problem statement
• Context - Why is this a problem? How large is the
problem? VISUAL!
Root Cause & Gap Analysis
• Graphical depiction of the most likely direct (root)
causes VISUAL!
• 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?

20. © 2014 The Karen Martin Group, Inc. 20
George Koenigsaecker, Leading the Lean Enterprise Transformation.
A3 Reports Need to Reflect the Problem-Solving Process
vs. Fitting into a Defined Template

21. © 2014 The Karen Martin Group, Inc. 21
Theme: “What is our area of focus?” Owner: Person accountable for results.
Background
Current & Target Conditions
Countermeasures / Action 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
Common Components & Structure of the A3 Report

22. © 2014 The Karen Martin Group, Inc. 22
Sample A3 Report
Problem Countermeasures / Implementation Plan
- Ÿ
32% of customers dissatisfied with office space cleanliness
- 80% of emergency service requests are to wrong contact - Standard work for restroom cleaning
- Standard work checklist for non-routine items
- Service levels vary by building - Standard process for measuring & mixing chemicals
- 10% of daily staffing available is allocated to travel/check in time - Restroom cleaning log
- Standard facility service plan (Plan A & Plan B)
Current Condition - Modify & standardize process for unplanned absences
- 31 Facility areas require custodial services - Modify starting points and schedules to reduce transportation waste
- Evaluate fleet availability to reduce waiting waste
Effect Confirmation
Target Conditions/Measurable Objectives
- 80% Daily staffing availability
- 50% Improvement - customer satisfaction with restroom cleanliness
- Defined standard work (for custodial staff and customers)
Follow Up Actions
Root Cause & Gap Analysis
- Undefined level of service (office parties, special events)
- No defined process for unplanned absences (calling in, redistribute work, etc.)
- Inconsistent availability of communication tools (vary by building)
- No defined process for requesting/responding to emergencies
- Variation in cleaning schedules versus facility operating schedules
- Unpredictable daily staffing
- Travel time + Check in Time = 16.00 hrs/day = 2 FTE
- Customer requested personalized service (newspaper delivery, parties, trash)
CUSTODIAL SERVICES
A3
Plan Do, Check, Act
- 22% of customers dissatisfied with restroom cleanliness
8%
20%
8%
14%
17%
33%
0%
5%
10%
15%
20%
25%
30%
35%
Phone Call
to
Custodian
Phone Call
to Custodial
Supervisor
Phone Call
to Custodial
Manager
Phone Call
to Public
Works
Dispatch
(x6000)
Email Notify
Custodial
Staff On Site
Survey: When you require emergency
services, how do you request them?
32%
22%
19% 18%
6%
0%
10%
20%
30%
40%
Office Spaces Restrooms Common
Areas
Overall Conference
Rooms
Survey: Custodial Services - Areas of
Dissatisfaction
Travel/ Check
In Time
16.00 10%
Absent Staff
24.00 15%
Vacancies
24.00 15%
Special Events
2.00 1%
Staff Available
94.00
59%
Daily Staffing Availability
(Hours)
41% ofdaily
staffing is
unavailable for
custodial tasks
T itle # Staff H rs/ Wk H rs/ D ay
Lead Custodian 4 1
60 32
FT Custodian 8 520 64
FT Custodian (Vacant) 2 80 1
6
PT/Perm (avg 30 hrs each) 3 90 24
PT/Temp (avg 20 hrs each) 3 60 24
T o tal 20 910 160
Travel/Check In
Time 8.00 5%
Absent Staff
24.00 15%
Special Events
2.00 1%
Current State Staff
Available
94.00
50%
PI Time Savings
15.00 9%
Fill Vacancies
24.00 15%
Reduced
Travel/Check In
Time 8.00 5%
Staff Available
126.00
79%
Future State Daily Staffing Availability (Hours)
22%
10%
12%
0%
5%
10%
15%
20%
25%
Dissatisfied Customers
(Current)
Target
Future State Restroom Cleanliness
Customer Satisfaction
Current Actual Result
State (+ 60 days)
Customers dissatisfied with restroom cleanliness 22% <10%
Avg minutes per restroom cleaning 35 30
Avg hours per day cleaning restrooms (184 restrooms) 107 92
Daily staffing availability 59% 80%
Daily travel/check in time (hours/day) 16 8
Travel miles per day 139 <70
Metric Projected
Remaining Actions Owner 1 2 3 4 5 6 7 8 9 10 11 12
Explore options to improve cell phone availability Mark R.
Define process for requesting and responding to emergencies Custodial Supvs
Equip carts for recycling Mark R.
Process mapping for specialized facilities Mark R.
Standardize Cart Equipment & Supplies Custodial Supvs
Process improvement for other facility types, e.g. offices, common
areas, etc.
Mark R.
Consider alternative staffing models (floaters, modified shifts) Mark R.
Actively manage vacancies Mark R.
Implementation Schedule (Months)
269
220
91
27 19 15
0
50
100
150
200
250
300
Office Space Rec
Center/Gym
Library Shops Misc. Animal
Shelter
Work Hours per Week
by Facility Type

23. © 2014 The Karen Martin Group, Inc. 23
Sample A3 Report

24. © 2014 The Karen Martin Group, Inc. 24
Sample A3 Report

25. © 2014 The Karen Martin Group, Inc. 25
Sample A3 Report

26. Sample A3
Countermeasures / Action Plan
BEWARE:
Plans are
subject to
PDSA!

27. © 2014 The Karen Martin Group, Inc. 27
Common Components & Structure of the A3 Report
Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Study, Adjust
Background
Current Condition
Countermeasures / Action Plan
Effect Confirmation
Follow-up Actions
• What?
• Who?
• When?
• Where? (if relevant)
Target Condition / Measurable Objectives
• Diagram of desired state VISUAL!
• Measurable targets – how will we know that the
improvement has been successful?
• Diagram of current situation or process VISUAL!
• What about it is not ideal?
• Extent of the problem (metrics)
• Problem statement
• Context - Why is this a problem? How large is the
problem? VISUAL!
Root Cause & Gap Analysis
• Graphical depiction of the most likely direct (root)
causes VISUAL!
• 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?

28. © 2014 The Karen Martin Group, Inc. 28
A3 Roles & Responsibilities:
The 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.

29. © 2014 The Karen Martin Group, Inc. 29
A3 Roles & Responsibilities:
The Coach
• An individual who’s highly proficient in both the
technical aspects of problem solving AND
coaching itself.

30. © 2014 The Karen Martin Group, Inc. 30
The Key to A3: Coaching
REFLECTIVE DEVELOPMENT DIRECTIVE DEVELOPMENT
From The Outstanding Organization, p. 117
Heavy use of Socratic
questioning to assess learning,
develop critical thinking, and
build confidence
Here, the coach serves as teacher.
Beware of the difference!

31. © 2014 The Karen Martin Group, Inc. 31
A3 Coaching Tools

32. © 2014 The Karen Martin Group, Inc. 32
A3 Coaching Tools:
Coaching Session Prep Checklist
& Socratic Questions for A3 Coaches
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If you already subscribe, email:
A3Tools@ksmartin.com

33. © 2014 The Karen Martin Group, Inc. 33
From The Outstanding Organization, p. 115
Progressive Learning & Development

34. © 2014 The Karen Martin Group, Inc. 34
Building Organization-wide Coaching Capabilities
Executive
Team
Senior
Leaders
Middle
Managers
Frontlines
Second Coach
Second Coach
Second Coach

35. © 2014 The Karen Martin Group, Inc. 35
Final
Thoughts

36. © 2014 The Karen Martin Group, Inc. 36
Theme: “What is our area of focus?”
Plan
Background
Current Condition
Target Condition / Measurable Objectives
• Diagram of desired state VISUAL!
• Measurable targets – how will we know that the
improvement has been successful?
• Diagram of current situation or process VISUAL!
• What about it is not ideal?
• Extent of the problem (metrics)
• Problem statement
• Context - Why is this a problem? How large is the
problem? VISUAL!
Root Cause & Gap Analysis
• Graphical depiction of the most likely direct (root)
causes VISUAL!
Nailing the Plan stage of
PDSA is the most
important element in
the entire process.

37. Background:
“The problem is…” and “this is how big it is…”
37

38. © 2014 The Karen Martin Group, Inc. 38
Understanding the Current State
• 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

39. © 2014 The Karen Martin Group, Inc. 39
Root Cause Analysis: 4 Key Tools
Cause
Cause-
-and
and-
-Effect Diagram
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
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
5 Why’s
Why?
Why?
Why?
Why?
Why?
Check Sheets Quantify Occurrences
|
Equipment failure
|||
|||||
|||||
Changing customer
requirements w/ no
adjustment to expected
delivery
|||||
|||||
Order entry error
|||
Staffing/absenteeism
|||||
Quality issue requiring
rework
||
|||||
Material shortage
Tally
Reason
|
Equipment failure
|||
|||||
|||||
Changing customer
requirements w/ no
adjustment to expected
delivery
|||||
|||||
Order entry error
|||
Staffing/absenteeism
|||||
Quality issue requiring
rework
||
|||||
Material shortage
Tally
Reason

40. © 2014 The Karen Martin Group, Inc. 40
Common Questions
• How long does it take to complete an A3?
• Can I use A3 for daily kaizen or during
kaizen events?
• What’s the relationship between Strategy
Deployment (Hoshin Kanri) and A3?
• What’s the relationship between Value
Stream Mapping and A3?

41. © 2014 The Karen Martin Group, Inc. 41
Problem solving
and making
improvement
done properly
is a high.

42. © 2014 The Karen Martin Group, Inc. 42
You HAVE to have a Coach!

43. © 2014 The Karen Martin Group, Inc. 43
Coaching Summit
July 28-30, 2014
Long Beach, California
www.leancoachingsummit.com

44. © 2014 The Karen Martin Group, Inc. 44
Karen Martin, President
858.677.6799
@karenmartinopex
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