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Lean Webinar Series
A3 Management – Part I
December 6, 2011
Company

LOGO
Welcome!
To new friends and old across the U.S.
(28 states)
To our global friends in:







Argentina
Australia
Canada
Germany
The Netherlands
Romania

© 2011 Karen Martin & Associates, LLC

2
GoToWebinar Attendee Interface
Viewer Window

Control Panel
Two Ways to Listen

OR

© 2011 Karen Martin & Associates, LLC

4
Two Ways to Ask Questions

1. Raise your hand – you
will be un-muted and
can ask verbally.

2. Type your question
into the question log.

© 2011 Karen Martin & Associates, LLC

5
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; codeveloper 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
© 2011 Karen Martin & Associates, LLC

Karen Martin, Principal
Karen Martin & Associates, LLC

6
Webinar Schedule
Content


11:00 am -12:00 pm PT

Q&A


12:00-12:30 pm PT
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

© 2011 Karen Martin & Associates, LLC

7
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

The Outstanding Organization
by Karen Martin
Book launch – May 18, 2012

8
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

© 2011 Karen Martin & Associates, LLC

9
For Further Study
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, LLC

11
What is A3?
The core of Toyota’s renowned management
system.
A structured method for applying the PDSA
(plan-do-study-adjust) approach to problemsolving.
International designation for 11 x 17” paper.

© 2011 Karen Martin & Associates, LLC

12
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.
© 2011 Karen Martin & Associates, LLC

13
The A3 Report is a Communication,
Consensus-Building and Learning Tool

The A3 report is
a story board that
reflects the
problem-solving
process.
It is created as
you progress
through PDSA,
not after.

George Koenigsaecker, Leading the Lean Enterprise Transformation.
14
PDSA Cycle – The Scientific Method

Plan

Analyze
results &
adjust as
appropriate

Develop
hypothesis &
design
experiment

Adjust

Do

Study

Measure
results

Conduct
experiment
Problem-Solving Steps

{

Plan

At least
50% of
the total
time

1. Identify the problem
2. Explore the problem deeply


3. Consider potential solutions


Hypothesize

4. Test solutions

Do 5.
6.
Study
Adjust 7.

© 2011 Karen Martin & Associates, LLC

What’s the true root cause?



Confirm hypothesis

Implement solution(s)
Measure results


Did the hypothesis prove out?

Adjust as needed; prepare
to improve again
16
Sample A3 Report
Plan

Do, Study, Adjust

17
Benefits of the A3
 Creates consistency in how
organizations go about solving
problems, managing projects, and
making decisions.
 Builds critical thinking and problemsolving 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.
© 2011 Karen Martin & Associates, LLC

18
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.

© 2011 Karen Martin & Associates, LLC

19
Common Components of the A3 Report
Plan

Do, Study, Adjust

Theme: ________________________________

Owner: ________________________________

Background

Countermeasures / Implementation Plan

Current Condition

Effect Confirmation

Target Condition / Measurable Objectives

Follow-up Actions

Root Cause & Gap Analysis
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 problemsolving process.
Typically the owner’s direct supervisor.

© 2011 Karen Martin & Associates, LLC

21
Common Components of the A3 Report
Plan
Theme: ________________________________
Background

Do, Study, Adjust
Owner: ________________________________
Countermeasures / Implementation Plan

Current Condition

Effect Confirmation

Target Condition / Measurable Objectives

Follow-up Actions

Root Cause & Gap Analysis
Common Components of the A3 Report
Plan
Theme: ________________________________
Background

Do, Study, Adjust
Owner: ________________________________
Countermeasures / Implementation Plan

Current Condition

Effect Confirmation

Target Condition / Measurable Objectives

Follow-up Actions

Root Cause & Gap Analysis
Coach / Mentor’s Role
Assure problem is relevant to the
organization’s annual business goals.


Focus resources on the highest priority
problems.

© 2011 Karen Martin & Associates, LLC

24
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

© 2011 Karen Martin & Associates, LLC

25
Common Components of the A3 Report
Plan
Theme: “What is our area of focus?”
Background

Do, Study, Adjust
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?
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, LLC

27
Sample Background Material

sss

FY 2008

FY 2009

FY 2010

Gray – highest industry quality scores
Purple – average industry quality scores (benchmark)
Blue – client quality scores

28
Sample Background Material

0
0

29
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
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
Common Components of the A3 Report
Plan
Theme: “What is our area of focus?”
Background

Do, Study, Adjust
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?
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, LLC

33
Common Components of the A3 Report
Plan

Do, Study, Adjust

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?
• Where? (if relevant)

Current & Target Conditions
• Include pre- and post metrics table
Metric

Current State

Desired Target
Condition

Projected %
Improvement

Lead Time
Quality
Labor Effort
Morale/Turnover

Inventory Turns
Market Share

Effect Confirmation
• What measurable results did the solution
achieve (or will be measured to verify
effectiveness)?
• Who’s responsible for ongoing
measurement?

Returned Parts

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?
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?

© 2011 Karen Martin & Associates, LLC

35
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.
© 2011 Karen Martin & Associates, LLC

36
Sample A3s – Current State
Poor
correspondence
quality

Missing
inventory
resulting in
write-offs
Common Components of the A3 Report
Plan
Theme: “What is our area of focus?”
Background

Do, Study, Adjust
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?
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.

© 2011 Karen Martin & Associates, LLC

39
Target Condition vs. Effect
Confirmation
When setting target metrics, begin thinking
how you’ll confirm performance (effect
confirmation section).


Who? How frequently? How?

© 2011 Karen Martin & Associates, LLC

40
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.

© 2011 Karen Martin & Associates, LLC

41
Common Components of the A3 Report
Plan
Theme: “What is our area of focus?”
Background

Do, Study, Adjust
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?
The A3 Report:
Root Cause Analysis
Show the root cause of the problem(s) identified
in the current state.
Separate symptoms and opinions from causeand-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.

© 2011 Karen Martin & Associates, LLC

43
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, LLC

44
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, LLC

If
necessary

45
46
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)

© 2011 Karen Martin & Associates, LLC

47
Nailing the Plan phase of
PDSA is the most
important step in the
entire problem-solving process.

© 2011 Karen Martin & Associates, LLC

48
© 2011 Karen Martin & Associates, LLC

49
Tomorrow – Part 2 – Do, Study, Adjust
Plan
Theme: ________________________________
Background

Do, Study, Adjust
Owner: ________________________________
Countermeasures / Implementation Plan

Current Condition

Effect Confirmation

Target Condition / Measurable Objectives

Follow-up Actions

Root Cause & Gap Analysis
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

© 2011 Karen Martin & Associates, LLC

51
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.

© 2011 Karen Martin & Associates, LLC

52
For Further Questions

Karen Martin, Principal
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Connect, learn, and thought-share
Monthly newsletter: www.ksmartin.com/subscribe

53

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A3 Management (Part 1 of 2)

  • 1. Lean Webinar Series A3 Management – Part I December 6, 2011 Company LOGO
  • 2. Welcome! To new friends and old across the U.S. (28 states) To our global friends in:       Argentina Australia Canada Germany The Netherlands Romania © 2011 Karen Martin & Associates, LLC 2
  • 4. Two Ways to Listen OR © 2011 Karen Martin & Associates, LLC 4
  • 5. Two Ways to Ask Questions 1. Raise your hand – you will be un-muted and can ask verbally. 2. Type your question into the question log. © 2011 Karen Martin & Associates, LLC 5
  • 6. 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; codeveloper 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 © 2011 Karen Martin & Associates, LLC Karen Martin, Principal Karen Martin & Associates, LLC 6
  • 7. Webinar Schedule Content  11:00 am -12:00 pm PT Q&A  12:00-12:30 pm PT 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 © 2011 Karen Martin & Associates, LLC 7
  • 8. 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 The Outstanding Organization by Karen Martin Book launch – May 18, 2012 8
  • 9. 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 © 2011 Karen Martin & Associates, LLC 9
  • 11. 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, LLC 11
  • 12. What is A3? The core of Toyota’s renowned management system. A structured method for applying the PDSA (plan-do-study-adjust) approach to problemsolving. International designation for 11 x 17” paper. © 2011 Karen Martin & Associates, LLC 12
  • 13. 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. © 2011 Karen Martin & Associates, LLC 13
  • 14. The A3 Report is a Communication, Consensus-Building and Learning Tool The A3 report is a story board that reflects the problem-solving process. It is created as you progress through PDSA, not after. George Koenigsaecker, Leading the Lean Enterprise Transformation. 14
  • 15. PDSA Cycle – The Scientific Method Plan Analyze results & adjust as appropriate Develop hypothesis & design experiment Adjust Do Study Measure results Conduct experiment
  • 16. Problem-Solving Steps { Plan At least 50% of the total time 1. Identify the problem 2. Explore the problem deeply  3. Consider potential solutions  Hypothesize 4. Test solutions Do 5. 6. Study Adjust 7. © 2011 Karen Martin & Associates, LLC What’s the true root cause?  Confirm hypothesis Implement solution(s) Measure results  Did the hypothesis prove out? Adjust as needed; prepare to improve again 16
  • 17. Sample A3 Report Plan Do, Study, Adjust 17
  • 18. Benefits of the A3  Creates consistency in how organizations go about solving problems, managing projects, and making decisions.  Builds critical thinking and problemsolving 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. © 2011 Karen Martin & Associates, LLC 18
  • 19. 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. © 2011 Karen Martin & Associates, LLC 19
  • 20. Common Components of the A3 Report Plan Do, Study, Adjust Theme: ________________________________ Owner: ________________________________ Background Countermeasures / Implementation Plan Current Condition Effect Confirmation Target Condition / Measurable Objectives Follow-up Actions Root Cause & Gap Analysis
  • 21. 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 problemsolving process. Typically the owner’s direct supervisor. © 2011 Karen Martin & Associates, LLC 21
  • 22. Common Components of the A3 Report Plan Theme: ________________________________ Background Do, Study, Adjust Owner: ________________________________ Countermeasures / Implementation Plan Current Condition Effect Confirmation Target Condition / Measurable Objectives Follow-up Actions Root Cause & Gap Analysis
  • 23. Common Components of the A3 Report Plan Theme: ________________________________ Background Do, Study, Adjust Owner: ________________________________ Countermeasures / Implementation Plan Current Condition Effect Confirmation Target Condition / Measurable Objectives Follow-up Actions Root Cause & Gap Analysis
  • 24. Coach / Mentor’s Role Assure problem is relevant to the organization’s annual business goals.  Focus resources on the highest priority problems. © 2011 Karen Martin & Associates, LLC 24
  • 25. 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 © 2011 Karen Martin & Associates, LLC 25
  • 26. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Study, Adjust 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?
  • 27. 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, LLC 27
  • 28. Sample Background Material sss FY 2008 FY 2009 FY 2010 Gray – highest industry quality scores Purple – average industry quality scores (benchmark) Blue – client quality scores 28
  • 30. 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
  • 31. 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
  • 32. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Study, Adjust 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?
  • 33. 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, LLC 33
  • 34. Common Components of the A3 Report Plan Do, Study, Adjust 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? • Where? (if relevant) Current & Target Conditions • Include pre- and post metrics table Metric Current State Desired Target Condition Projected % Improvement Lead Time Quality Labor Effort Morale/Turnover Inventory Turns Market Share Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Returned Parts 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?
  • 35. 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? © 2011 Karen Martin & Associates, LLC 35
  • 36. 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. © 2011 Karen Martin & Associates, LLC 36
  • 37. Sample A3s – Current State Poor correspondence quality Missing inventory resulting in write-offs
  • 38. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Study, Adjust 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?
  • 39. 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. © 2011 Karen Martin & Associates, LLC 39
  • 40. Target Condition vs. Effect Confirmation When setting target metrics, begin thinking how you’ll confirm performance (effect confirmation section).  Who? How frequently? How? © 2011 Karen Martin & Associates, LLC 40
  • 41. 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. © 2011 Karen Martin & Associates, LLC 41
  • 42. Common Components of the A3 Report Plan Theme: “What is our area of focus?” Background Do, Study, Adjust 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?
  • 43. The A3 Report: Root Cause Analysis Show the root cause of the problem(s) identified in the current state. Separate symptoms and opinions from causeand-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. © 2011 Karen Martin & Associates, LLC 43
  • 44. 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, LLC 44
  • 45. 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, LLC If necessary 45
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  • 47. 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) © 2011 Karen Martin & Associates, LLC 47
  • 48. Nailing the Plan phase of PDSA is the most important step in the entire problem-solving process. © 2011 Karen Martin & Associates, LLC 48
  • 49. © 2011 Karen Martin & Associates, LLC 49
  • 50. Tomorrow – Part 2 – Do, Study, Adjust Plan Theme: ________________________________ Background Do, Study, Adjust Owner: ________________________________ Countermeasures / Implementation Plan Current Condition Effect Confirmation Target Condition / Measurable Objectives Follow-up Actions Root Cause & Gap Analysis
  • 51. 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 © 2011 Karen Martin & Associates, LLC 51
  • 52. 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. © 2011 Karen Martin & Associates, LLC 52
  • 53. For Further Questions Karen Martin, Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Connect, learn, and thought-share Monthly newsletter: www.ksmartin.com/subscribe 53