You are on page 1of 20

Process Improvement:

Using Toyota’s
A3 Reports
Satya S. Chakravorty
Kennesaw State University
© 2009, ASQ

In order to drive process improvement, Toyota uses


A3 reports as a tool to identify and solve problems. INTRODUCTION
A3 reports are usually written on paper size 11 inches In order to drive process improvement, Toyota created
by 17 inches and are enriched with visuals such A3 reports as a tool to identify problems, find solutions,
as pictures, diagrams, and charts to improve com-
munication. To date, the author has found no study
and report results of improvement activities (Sobek and
explaining how to implement A3 reports in manu- Jimmerson 2004). The A3 report got its name from the
facturing operations. The purpose of this exploratory paper size on which the report is printed. In its purest
study is to show how A3 reports were implemented in form, A3 reports are printed on a single sheet of 11-inch
a successful process improvement project in aircraft by 17-inch paper (Radeka 2005). The A3 report is an
maintenance and repair operations. In doing so, he
effective tool because it contains not only text, but also
shows a systematic approach, improvement event,
and the process used to implement and document pictures, diagrams, and charts, all of which enrich and
A3 reports. The duration of an improvement event clarify the data. The thought behind the A3 report is
is generally four weeks and has four distinct phases: to include all relevant information and to establish a
1) preparation and training; 2) process mapping and clear representation of the current problem, eliminat-
current state analysis; 3) process mapping and future ing “waste” in the form of information that is not
state analysis; and 4) implementation and ownership.
absolutely pertinent to the problem at hand. The idea
Important for both practitioners and academicians,
the author also discusses implications of A3 report is to streamline the report so it focuses only on the
implementation and directions for future research. problem and its solution, and nothing else. A3 reports
Key words: lean, process improvement, Six Sigma,
are adopted in operations (Sobek and Jimmerson 2006)
theory of constraints and promoted by the Shingo Prize for Operational
Excellence (Chakravorty, Atwater, and Herbert 2008a).
To date, the author has found no study explaining how
to implement A3 reports in manufacturing operations.
One purpose of this exploratory study is to show how
A3 reports were implemented to improve the perfor-
mance of aircraft maintenance and repair operations.
The author demonstrates a systematic approach to the
improvement event, and the implementing and doc-
umenting of A3 reports. Each improvement event is
conducted at a target shop by an experienced facilitator
with a team of workers or process owners from the shop.
An improvement event consists of a host of activities, is
generally completed in four weeks, and has four distinct

www.asq.org 7
Process Improvement: Using Toyota’s A3 Reports

phases: 1) preparation and training; 2) process map- problem. In pursuit of operational excellence, Toyota
ping and analysis of current state; 3) process mapping calls these improvement ideas “countermeasures” to
and analysis of future state; and 4) implementation and imply that a solution is currently being reached for a
ownership transfer. Important to both practitioners and specific problem only until a better solution is found
academicians, this article discusses three implications (Sobek and Jimmerson 2004). With the objective of
of A3 report implementation and includes directions for countermeasures, participants draw the target condi-
future research. tion or future state. The future state diagram shows
how the modified or improved process will work when

TOYOTA’S A3 REPORTS countermeasures are in place. The second heading


is the “Implementation Plan,” which identifies the
According to Sobek and Jimmerson (2004), Toyota steps that need to be completed in order to realize the
has developed many kinds of A3 reports for different improvements outlined under the future state map.
applications. An example of an A3 report format is The participants clearly write the changes necessary to
included in Appendix 1. Other examples of completed improve the process, define a priority for the changes,
A3 reports can be found in Sobek and Smalley (2008), establish a timeline to complete the changes, and
Shook (2008), Jimmerson (2007), and Abilla (2007). identify the results expected from the process improve-
Typically, the report has left and right sections, and ment steps. The third heading is “Follow-Up,” and it
each section has many headings. involves activities that are not completed in the time
On the left section, there are four headings. The first outlined. Follow-up activities also are necessary to docu-
heading is the “Theme,” which succinctly states the ment problems or obstacles encountered during the
problem(s) being addressed in one or two sentences. implementation so the future implementation can be
The second heading is “Background,” which contains improved. In addition, results of the implementation are
a description of all pertinent information needed to also written, which outline what specific improvements
understand the scope of the problem at hand. The third have been realized.
heading is “Current Condition,” which deals with devel-
oping an understanding of what is happening currently
using a value-stream map (Rother and Shook 1998). METHODOLOGY
The map should be enhanced by inserting quantita- Action research is a collaborative process of critical
tive information (for example, takt time, setup times, inquiry that fosters the learning of theory and practice
and so on), storm bursts, or notes at appropriate places (Argyris 1985). The author used action research to
to develop a good understanding of all existing con- document how to implement process improvement pro-
ditions. These illustrations use words and pictures to grams using Toyota’s A3 report. According to Kemmis
enhance readability and understand the problem. See and McTaggart (2000), there are two reasons why
Tufte’s (1983) and Cleveland’s (1985) books for several action research is appropriate for these objectives. First,
examples of illustrations. The fourth heading, “Cause action research focuses on “… learning from trying
Analysis,” deals with determining the cause of the to bring about change….” (Kemmis and McTaggart
current problem. Sobek and Jimmerson (2004) recom- 2000, 572), where the typical participants are shop-floor
mend the “5 Why’s” method where participants ask the employees, middle managers, and outside consul-
“why” question five times to get to the bottom of the real tants. In this case, there is very little known about how
problem. There are, however, additional methods for to implement Toyota’s A3 reports, so the researcher,
performing root-cause analysis (see Lepore and Cohen as a participant, academic researcher, and process
1999; Womack and Jones 2003; and Keller 2005). improvement expert, was essential for this exploratory
On the right section, there are three headings. The investigation. Second, action research does not require
first heading is the “Target Condition,” which consid- control over the behavioral elements. Instead, it relies
ers possible improvement ideas that could rectify the on reflection and participation of subjects to evaluate

8 QMJ VOL. 16, no. 4/© 2009, ASQ


Process Improvement: Using Toyota’s A3 Reports

phenomena rather than control and objectivity. As events with several participants—including a steer-
participant-observer, the researcher was able to observe ing committee that was initially formed and chaired
how a host of activities were identified and coordinated by the vice president (VP) of operations. It would have
in implementing Toyota’s A3 reports. improved reliability to have the author’s findings evalu-
The action research methodology that was ated by an independent source; however, many of the
employed is based on Susman and Evered’s (1978) findings were considered proprietary by the organization
seminal work on how to conduct rigorous scientific and were not available for review by others. This process
action research, which is so highly regarded that it is also satisfies the “reflection” stage of CPM. The ideas
commonly referred to as “canonical action research” and events that improved performance were noted, as
(Davidson, Martinsons, and Kock 2004), or “action well as the researcher’s preliminary insights into why
science” (Kemmis and McTaggart 2000). Davidson they worked. This satisfied the “evaluation” stage of
clearly articulates five stages of rigorous action research. the CPM. The events observed while coordinating dif-
They are the principles of: 1) researcher-client agreement ferent activities related to improvement projects were
(RCA); 2) cyclical process model (CPM); 3) theory; compared with previous experiences of the researcher.
4) change through action; and 5) learning through Discrepancies in proposed causes and sequencing of the
reflection. Next, the author briefly discusses each stage events were noted for further examination. Solutions to
and shows how the study generally complemented, as problems in one stage of implementation were tried in
well as differed, with his recommendations. others. Each morning, based on consensus, the partici-
The RCA articulates the relationship among stake- pants chose the problems and events to first attack that
holders in the study, and is a key to establishing the satisfied the “planning” stage of the CPM. The planned
internal validity of the research findings. Stakeholders solutions were implemented during the first shift opera-
include the researcher, workers, managers, owners, tions of the organization, and new events were noted.
and all who will potentially benefit from the effort. The During this period, the researcher focused solely on
researcher participated in the steering committee and assisting with the implementation efforts and docu-
with shop-floor work groups. An acceptable RCA must menting the process. This satisfies the “intervention”
ensure the researcher’s access to all pertinent data and stage of CPM. This procedure occurred on an iterative
personnel who can provide insight into the “cause and basis throughout the study.
effect” phenomenon observed during the study. The orga- The findings in this study are explained through
nization agreed to these conditions as long as proprietary existing theories, and suggest how a theory or model
data were excluded from external review. for implementation of process improvement should be
CPM is a procedure for systematically applying solu- developed. The processes of action and the resulting
tions in an action research study (Davidson, Martinsons, changes are indivisible, because both exist in successful
and Kock 2004). Susman and Evered (1978) describe problem solving. According to Davidson, Martinsons,
five stages for systematically applying solutions in action and Kock (2004), if action does not bring about change,
research. In summary, they are: 1) diagnosis (identify- then: 1) no problem truly existed; 2) the intervention
ing the cause of a problem); 2) planning (identifying (action) was inappropriate; or 3) the problem could not
prospective solutions and how best to apply them to a be solved because of practical obstacles. To strengthen
problem); 3) intervention (actually applying the pro- reliability in learning through reflection, the author’s
posed solution); 4) evaluation (analyzing outcome team had at least two judges evaluate the consistency
data); and 5) reflection (the process of reviewing the of their results (internal validity). In this study, the
results of the effort). researcher independently evaluated the information
The primary form of “diagnosis” in this study was from participants, and then resolved the discrepan-
the reflection by the researchers on their own experi- cies through reflection and argument. The team then
ences. They spent several hours brainstorming ideas presented its findings back to the VP of operations and
and reflecting on what had happened during the day’s steering committee to evaluate the results.

www.asq.org 9
Process Improvement: Using Toyota’s A3 Reports

This 12-month study was conducted in aircraft would be available for at least two hours per day to
maintenance and repair operations with in-house reflect and provide feedback to the researcher. The Speed
manufacturing capability located in the southern team was responsible for strategizing process improve-
United States. As suggested by Yin (2008), the team ment with active participation from all functional areas,
used multiple sources of evidence such as documents, implementing process improvement, and following up
archival records, interviews, participation, and direct on implementation results.
observation. Essential steps of these operations con- Second, the focus was to adopt an improvement tool
sist of performing disassembly of aircraft, separating and an instrument to document and communicate the
nondefective parts from defective parts, replacing implementation of process improvement ideas. Over
defective parts with high-quality parts, and carrying the years, the manufacturing operations had initiated
out assembly of the aircraft. The parts to replace the many process improvement tools such as Six Sigma
defective parts were produced in the manufacturing (Keller 2005; Pyzdek 2003), lean (Chakravorty and
shops. The redesign effort was initiated to stay com- Hales 2004; Womack and Jones 2003; Robinson 1990),
petitive in the domestic and international markets. The and theory of constraints principles (Chakravorty and
pressure from the VP of operations was to drastically Atwater 2006; Goldratt and Cox 2004; Chakravorty
reduce turnaround time for aircraft maintenance and 2000) (see Appendix 2). One problem with these initia-
repair operations while improving the quality of overall tives was that they were fragmented and rarely worked
maintenance and repair operations. together to synergistically improve the performance of
various operations. One objective of this initiative was

DESCRIPTION OF PROCESS
to integrate all of these improvement strategies into one
core strategy that was simple to understand and to drive
IMPROVEMENT IMPLEMENTATION operational excellence from the bottom up. While the
Speed team recognized the need for sophisticated tools

Initial Initiative (for example, statistical process control), the general


census was that the majority of managers and workers
Four major steps were necessary before implementation did not possess the needed skills to either fully under-
of process improvement was carried out. First, the VP of stand or to implement such tools. Implementation of
operations, along with divisional managers and branch sophisticated tools was left to the discretion of indi-
heads of functional areas, established a core team called vidual facilitators and to the specific needs of a given
“Speed” to develop a strategic intent and to drive the situation. The Speed team worked diligently to develop
process improvement. The Speed team consisted of the contents of the training program, including illus-
managers and workers from the functional areas who trations, examples, and interactive simulation games
were experienced in process improvement, and outside to provide training in the basics of process improve-
experts or researchers (the author) in process improve- ment. Essentials of the training program included the
ment strategies. The core team also included trainees concept of waste, process or value-stream mapping,
from the functional areas. The RCA stipulated that: and applying the problem-solving steps: identify the
1) the client was committed to improving mainte- problem, gather information, generate solutions, pri-
nance and repair operations, and was willing to provide oritize solution, and implement solutions (similar to
all pertinent data to the researcher; 2) the researcher Six Sigma’s approach of define, measure, analyze,
would document the application of process improve- improve, and control). As an instrument to document
ment in a research log and provide findings to the VP of and communicate the progress of all process improve-
operations and to the divisional managers as requested; ment efforts, the Speed team decided to use a version of
3) the researcher would provide training and participate Toyota’s A3 report as Speed A3 report (see Appendix 3).
in improvement efforts in exchange for publishing This report was usually printed on one page of 11-inch
the results; and 4) all participants and the Speed team by 17-inch paper, but sometimes it was printed on two

10 QMJ VOL. 16, no. 4/© 2009, ASQ


Process Improvement: Using Toyota’s A3 Reports

pages of 11-inch by 8 ½-inch paper. To reinforce the consultants for their input and approval. After delib-
understanding of A3 reports among managers and erations, the Speed team developed the final priority
workers in the application of the report, the team devel- for 25 process improvement projects in various stages
oped examples of trial reports, and supervised a session of the entire maintenance and repair operations, and
where the managers and workers applied the report to immediately began application of A3 reports.
eliminate waste from the process.
Third, the Speed team performed high-level pro-
cess mapping of maintenance and repair operations. Application of Speed A3 Report
This was designed to understand the flow of parts and The Speed team developed an appropriate human
information into the existing operations. Although infrastructure to drive improvement from the bottom
these operations involved complex and intertwined up. The Speed team established low-level improve-
flows, the Speed team determined that there are four ment teams involving processes, and chose champions
distinct stages. In stage 1, aircraft are scheduled for to manage these teams. In addition to communicating
maintenance. Once they physically arrive at the main- with the Speed team, the champions worked with the
tenance area, they are pulled into a hanger, and an low-level improvement teams on various improve-
in-depth inspection is performed. In stage 2, they are ment events. These events involved coordinating a
disassembled, and defective parts are separated from host of activities to apply A3 reports. Each event was
nondefective parts. Some parts are replaced as man- orchestrated by an experienced facilitator along with
dated by the Federal Aviation Agency (FAA) guidelines. a couple of Speed team trainees. The trainees are
In stage 3, orders are released to produce component included so they can become future facilitators by
parts in manufacturing operations consisting of 14 learning the latest process improvement strategies
different shops. Once the parts are produced, they are and their deployment to improve actual operations.
transported to the assembly area. In stage 4, final The trainees also saved the facilitator’s valuable time
assembly of the aircraft is performed, testing and by providing assistance in gathering and organiz-
inspection is done, and, finally, the aircraft is sent out ing relevant data to accelerate implementation. It is
for use. important to understand that no two events are alike,
Fourth, since the Speed team could not effectively and that each event had to be treated as a separate
address all of the problems simultaneously, they strug- entity. In general, each event took four weeks, and
gled to decide which ones to address first. The Speed each week involved different activities.
team documented many wasteful activities in different
departments, and segregated them using the frequency
of their occurrences. After several iterations, there was Phase 1: Preparation and
agreement on the problems based on two possible
outcomes, either potential cost savings or revenue gen- Training (First Week)
eration. When applicable, the potential cost savings were There were five major activities in this phase. First, once
computed in terms of reduction in defects, inventory, the target shop was designated, the first objective was to
returns, or temporary workers’ payroll, and so on. When form a team to lead improvement efforts in the shop. The
applicable, the revenue generation ideas were calculated team consisted of an experienced facilitator, Speed team
in terms of faster response time, increased throughput, trainees, and workers from the shop. Generally, four to
or better utilization of bottleneck operations. Combing nine shop workers were chosen, and each worker devoted
the two potential outcomes, the Speed team prioritized at least 20 hours per week for the first three weeks, and
process improvement projects based on those with the 40 hours per week for the fourth week. To get an idea of
strongest support from the workers and managers. The the extent of possible improvements, the facilitator made
Speed team then held a meeting with the VP of opera- arrangements for workers to visit another shop where an
tions, divisional managers, branch heads, and outside improvement event was previously conducted.

www.asq.org 11
Process Improvement: Using Toyota’s A3 Reports

Second, the team members spent time studying strategies, three training sessions for two hours each
the existing shop operations. They obtained the latest (with a lunch break and other breaks) per day were
shop layout drawings, identified shop boundaries, and scheduled. At the end of each session, the workers were
noted material flow through the shop. They walked given simulation games or Tinker Toy® games to apply
through the process, observed material flow, and noted their process improvement strategies. Throughout the
various machines and tools used throughout the process. training session, open discussions were encouraged, so
In doing so, they identified and “red tagged” old and workers felt comfortable providing their input. Finally,
unused machines and/or tools for their removal from the team secured a digital camera to archive before
the shop. The team collected preliminary data, which and after implementation pictures, and later used these
included actual output, customer demand, on-time pictures to document the implementation.
percentages, start times, breaks, shifts, lunch times, and
similar information. The team also discussed target goals
and measurements (for example, travel time reduction, Phase 2: Process Mapping
work-in-process reduction, take time reduction, mistake and Analysis of Current State
reduction, and so on), and documented all suggestions
for improvement coming from shop workers. (Second Week)
Third, after studying the shop operations, the team There were three important activities during this
deliberated on verbalizing a problem statement for the phase. First, with active participation from work-
shop. Typically, the first time a problem statement was ers, the facilitator orchestrated the development of a
written, there was no clear agreement among workers. current state map of the shop operations. They used
While each worker was very familiar with his or her job, sticky notes to describe an operation (or machine),
he or she still lacked an understanding of flow through and Sharpies® (permanent dry markers) to connect
the shop. The facilitator and the Speed trainees played each operation in order to highlight the flow through
an important role, and used the Socratic approach the target shop. The team used sticky notes and
to seek the shop workers’ input in order to refine the Sharpies® because they were simple to use. They tried
problem statement. After several iterations, patiently to use electronic display boards, but they encoun-
considering the workers’ input and the Speed trainees’ tered problems due to power or battery failure, and
suggestions, the facilitator wrote the actual problem lost many hours of work. Often, they used red sticky
statement on the A3 report. notes to show non-value-added activities and green
Fourth, a conference room close to the target shop sticky notes to show value-added activities. While
was secured in order for workers to meet frequently creating the process map, discussions among work-
and to openly discuss ways to improve the process. To ers, Speed trainees, and the facilitator were crucial for
incorporate management’s suggestions, an invitation the success of an improvement event. In all of these
to the kick-off meeting was sent to the VP of operations, improvement events, workers acknowledged they were
divisional managers, branch heads, managers, and shop aware of wasteful activities (for example, wait time,
supervisors. In addition, a suggestion box was set up near transportation, and defects) in their shop, but they
the shop to encourage the rest of the workers, especially were not aware that these activities could occupy the
those who were not included in the team, to give their majority (for example, 80 percent) of their time.
input about the shop’s problems and their solutions for Second, the team used both qualitative and quanti-
improvement. tative data to analyze the existing shop. Qualitative data
Fifth, process improvement training was provided were gathered through independent surveys, interviews,
in the conference room. The training was delivered observations, and participation. In addition, they found
by the facilitator in an interactive manner by using that casual discussions with workers and supervisors
presentation slides with audio and video enhance- during breaks and lunch hours were very effective in
ments. To cover all aspects of process improvement gaining insights into the existing shop’s difficulties. In

12 QMJ VOL. 16, no. 4/© 2009, ASQ


Process Improvement: Using Toyota’s A3 Reports

fact, many times these discussions provided insights using sophisticated procedures. Once a thorough analysis
into the type of quantitative data necessary to better of the current state was complete, the facilitator filled the
understand the existing conditions. These insights (or appropriate section in the A3 report.
qualitative data) provoked their interest in searching for
a type of quantitative data that they would otherwise not
have discovered. Phase 3: Process Mapping
Quantitative data were collected through a variety and Analysis of Future State
of sources, including personal observations and mea-
surements. First, the team obtained layout drawings (Third Week)
of the existing shop and ascertained that there were There are four activities involved in this phase. First,
no major discrepancies between the drawing and the with active participation from workers, the facilitator
physical layout of the shop. Second, they obtained as orchestrated the development of a future state map of
much shop information as possible, which included the shop operations. Once again, the facilitator played
shop routing, down times, setup times, quality an important role, and using the Socratic Method,
reports, and efficiency reports. Third, they collected guided the workers to improve the current state of the
data by observing and measuring cycle time, travel shop operations. To start discussions, the facilitator
time, square footage of each area, type of defects, and challenged non-value-added activities and asked sim-
similar data associated with the shop. It is important ple questions like, “Do we need this step?” “How can
to note that the facilitator needs to use experience we eliminate this step?” or “Can we move this machine
and judgment in collecting just enough data (opti- here to reduce travel time?” Usually workers answered
mum amount) to perform a thorough analysis of the these questions, and soon they started to actively par-
existing conditions. They found that many facilitators ticipate in providing suggestions for improving their
got bogged down in collecting an exhaustive set of existing shop operations. The facilitator should exercise
data, and then were left with insufficient time to per- utmost caution, however, and not hastily provide solu-
form an adequate analysis, which resulted in a poor tions to the problems. It took a little longer, but the
implementation. workers eventually provided suggestions for improving
Third, a thorough analysis was performed to find the their shop’s problems, an absolute must for ownership
root cause of the problem. Qualitative techniques used to and “buy in” to occur. After several iterations, there
perform analysis ranged from simple procedures such as usually was an agreement among the workers on the
“5 Why’s” and fishbone charting to a current reality tree. future state of the shop operations.
Similarly, quantitative techniques to perform analysis Second, once the future state of the shop operations
ranged from simple procedures that included histograms was decided, the facilitator and Speed team train-
(content analysis), Pareto charts, and “t” tests, and ees developed a “to do” list, which included action
sophisticated procedures such as analysis of variance items, responsibilities, and deadlines to complete all
(ANOVA), regression, and design of experiments (DOE). tasks. The facilitator went through the list diligently
In general, they found that simple procedures often and made sure that all supporting functions were
worked better than sophisticated procedures. Although informed. For example, there were usually layout
a majority of the workers did not have a college degree, changes involving moving machines and tools from
they easily understood simple procedures, and experi- one location to the other. The facilitator coordinated
enced little or no trouble in applying such procedures with plant operations to be sure that machine founda-
to perform current state analysis. In other words, the tion requirements, machine preparations, availability
team had to rely on simple procedures, rather than of electricians, and, if necessary, that heavy machinery
sophisticated procedures, to drive process improvement movers, would be available.
from the bottom up. Many times, however, the facilitator Third, the facilitator held a meeting with the
augmented worker’s analysis with additional analysis entire shop to explain the forthcoming changes or

www.asq.org 13
Process Improvement: Using Toyota’s A3 Reports

Table 1
Speed A3 Report Date 06/02/08

Target Shop: 3553


Facilitator: Satya Chakravorty
Speed Trainees: James Ivey, Lewis Carroll, Dave Davies, John Johnson, Kenneth John
Process Owners: John Copland (Supervisor) and Heat Treatment Artisans

1. Problem Statement
The heat treatment is designed to deliver treated parts to the foundry components and the manufacturing components. Parts processed
through heat treatment are frequently delayed, which in turn negatively impact the performance of the manufacturing components.

2. Current State Analysis


Process map of the existing conditions reveal that only about 25 percent of activities are adding value. Many activities are
performed manually.

Non-value-added activities Value-added activities

Artisan from another Verify Create heat treat Transport to Treat part with
area carries part paperwork requisition oven / solution solution and
to heat treat (1 min) document (5 min) (20 min) remove (8 min)

Non-value-added activities Value-added activities Value-added activities


Value-added = 24.64%
Put in freezer (9 min) Stamp off Non-value-added = 75.36%
Transport to Rinse
Note: Part sets in freezer until artisan paperwork, 1st heat
glyco-solution chemical
retrieves it for re-form / re-shaping treat completion
(20 min) (1 min)
and sets it on the incoming table for (5 min)
2nd heat treat process

Turn Around Time—Before Heat Treat Area


90 Interview and a walk-through with Hubert Suggs
80
70
60 Artisans bring the work with the paperwork to the heat treat area. Parts
50
Hours

going to the oven then SW (solution wash to make material soft) after SW
40
30 goes to clear water to wash off the chemical. After SW and water go back
Part 3456
20 Part 3407 to where they came from to be reform/straighten, then go back to heat
10
0 Part 4006 treat to be aging (check AMS standard American Metal Society) then go to
1 2 3 4 standard machine, if meet the standard then for sale. 2-3 times heat treat.
Quarters Heat, average temperature 925 degree for 30 minutes, after the oven to
solution 100 degree for 8 seconds (glycol solution) then go into the water
(wash off the chemical) go into the freezer –60 degree, stay in the freezer
until they need it. (Aging) test machine.

Quincy oven / furnace (underground unit), can only process 1 job at a time,
utilized 3-4 times a year. This furnace primarily processes 5' exhaust duct.
New furnace (walk-in furnace has 4235 generated) can do multiple jobs
(Waltz)
Need better working tools for efficient job.

Clean up the area-5S plus 1 event


Better equipment to work with
Better tools to work with
Only have
Better test equipment for accuracy (certain parts require stress test accuracy.
Every two weeks 30 parts small parts) save time.
©2009, ASQ

Recommend walk-in-freezer
Recommend a replacement “Quincy” oven/furnace that is above ground
and can handle multi-job requirements

14 QMJ VOL. 16, no. 4/© 2009, ASQ


Process Improvement: Using Toyota’s A3 Reports

Table 1 (continued)
3. Future State Analysis
After implementation, value-added activities will increase to about 60 percent. There are additional opportunities for buying new
machines to speed up the treatment process.

Non-value-added activities Value-added activities

Artisan from another Verify Create heat treat Treat part with
area carries part paperwork requisition solution and
to heat treat (1 min) document (5 min) remove (8 min) Many activities before
and after treatment
could be automated.
Non-value-added activities Value-added activities Value-added activities
Two software packages
have been contacted.
Put in freezer (9 min) Stamp off
Rinse
Note: Part sets in freezer until artisan paperwork, 1st heat
chemical
retrieves it for re-form / re-shaping treat completion
(1 min)
and sets it on the incoming table for (5 min)
2nd heat treat process

Heat treatment engineer


informed that newer models
of this process could cut down
processing by 50%.

4. Implementation
Implementation was generally smooth. Oven-solution and glyco-solution baths were moved closer to the heat treatment area.
Follow-up visits revealed that new equipment was not purchased. The shop now has a new supervisor. After four weeks, results
showed the performance of the shop improved and results are included here.

Value Analysis: After Turn Around Data—After


45
40
35
30
25
Hours

20
Value Add 15 Part 3456
Non-Value Added 10 Part 3407
5
0 Part 4006
1 2 3 4
Weeks ©2009, ASQ

The turnaround time performance also improved. The shop supervisor indicated that turnaround time for many other parts have
gone down. That area has not received any complaints about treated parts from manufacturing components. Automation of order
processing is under way. IT department is evaluating two software vendors.

improvement initiatives. At this time, the team mem- map with the future state map to estimate reduction
bers shared the details of changes with rest of the in all non-value-added activities. For example, a 40
workers. Many workers provided additional sugges- percent reduction in travel time, an 80 percent reduc-
tions for improvement in the future state map, and tion in transportation, and a 20 percent reduction
the facilitator incorporated those suggestions to refine in wasteful activities in the shop. Once all of these
the future state map of the shop operations. estimates were complete, the facilitator completed the
In the fourth and final stage, the facilitator started appropriate section in the A3 report and made a final
to impart all of the upcoming changes to the shop check before all the changes were implemented the
operations. The facilitator compared the current state following week.

www.asq.org 15
Process Improvement: Using Toyota’s A3 Reports

Phase 4: Implementation responsibilities, and a timeline to complete those


activities. The facilitator followed up and made sure
and Ownership Transfer that all unfinished activities were completed on time.

(Fourth Week) As the last activity of an improvement event, four to


six weeks following the implementation, the facilita-
There were two major steps taken during this phase. tor completed the appropriate sections of the Speed A3
First, the facilitator orchestrated actual imple- report. Examples of three implementation reports are
mentation in the target shop. Good planning and provided in Tables 1, 2, and 3.
participation of the workers in the previous stages
facilitated a smooth transition to all of the changes
in the shop. Since this phase involved all aspects of IMPLICATIONS FOR PROCESS
a shop (machines and tools, method, materials, and
personnel), there were often last-minutes glitches. The
IMPROVEMENT IMPLEMENTATION
facilitator provided assistance in coordinating these There are five implications of this process improve-
activities to make the implementation a success. The ment effort involving A3 report implementation. First,
workers followed through with the changes, discussed the team encountered many problems in developing
the benefits of the changes openly, and began to oper- A3 reports. Initially, the facilitator along with many
ate under the changed conditions. As the changes participants who were involved in the actual process
were introduced, the performance of the shop did not improvement wrote parts of A3 reports. There was pro-
immediately improve, even in the next week. In fact, pensity among the participants to fill every space on
the performance of the shop deteriorated as workers A3 reports with descriptions, pictures, and diagrams.
were transitioning into new ways of operating. There Often times, the handwriting of many participants
was chaos and confusion in many areas of shop oper- was barely legible. In addition, many A3 reports got
ations. In a couple of weeks, however, as the workers soiled with manufacturing oil or grease as participants
became accustomed to operating in the new way, their wrote on them. These initial attempts cluttered many
individual performance improved and, eventually, A3 reports and created confusion among participants,
the target shop’s performance improved. At the end facilitators, and process owners. In fact, many of the
of this week, the facilitator took pictures of the shop initial reports had to be either completely rewritten, or
to document “after” implementation conditions, and additional pages of explanation had to be attached.
assisted the workers in preparing for the presentation, Later, as they gained experience, instead of filling out
which included all the changes. The presentation was the entire A3 report, only the most important descrip-
done by the shop workers for the VP of operations, tions and pictures or diagrams were included. Typically
divisional managers, branch heads, managers, and the facilitator or another participant with satisfactory
shop supervisors. handwriting completed the A3 report. There was no
Second, once the implementation was complete, readily available solution to protect the A3 reports from
a follow up was necessary. The facilitator visited the manufacturing oil or grease. More research is necessary
target shop to learn from the improvement event. The to determine the feasibility of developing a software
facilitator documented specific methods that worked, system to create A3 reports. Once the required infor-
specific methods that did not work, and determined mation is provided, such a system should be able to
how to modify the future process improvement event. generate a digital version of A3 reports.
It is important to note, however, that many times all Second, A3 reports implementation was successful
activities could not be completed, despite the team’s because the team developed an appropriate human
best efforts. The facilitator diligently documented infrastructure to drive improvement from the bot-
all unfinished activities and developed a follow-up tom up. The approach was to establish low-level
list of activities, specifying action items, individual improvement teams along product flows and choose

16 QMJ VOL. 16, no. 4/© 2009, ASQ


Process Improvement: Using Toyota’s A3 Reports

Table 2
Speed A3 Report Date 07/01/08

Target Shop: 3675


Facilitator: Satya Chakravorty
Speed Trainees: Jeff Anderson, Nick Johnston, and Mike Rogers
Process Owners: Jim Grant (Supervisor) and Manufacturing Component Artisans

1. Problem Statement
The manufacturing component produces parts needed for the assembly process of maintenance and repair operations. The workers
suspected that there were too many jobs in work-in-process causing long lead-times, and the bottleneck resource was poorly utilized
(and working on wrong jobs).

2. Current State Analysis


Process mapping revealed that “form material” (Farquar) machine was the bottleneck. This implies that this machine will dictate
the output of the line.
Layout changes were difficult in this shop.

Obtain work order Review WK pkg. Travel to Verify & match metal
from PC area & pull sheet metal room with pull sheet Bottleneck time = 45 min
(2 min) (5 min) (5 min) (10 min) Output (8 hours) = 10 jobs

Is template in Yes Template in pkg. travel Scribe Travel to Trim material


pkg. or need to to workbench template bard saw to template
obtain? (2 min) (10 min) (1 min) (7 min)

No
Obtain template
from rack
(2 min)

Debur Is form Yes Transport to QA Transport to


Form material
material required? workbench heat treatment
(Farquar: 45 min)
(3 min) (2 Min) (2 min)
No
Transport to
Is part good Good
brake shop
(1 min) or defective?
The analysis confirms that
Bad too many jobs were in the
Defective part is scrapped and process process and bottleneck is
re-starts at travel to metal room. not properly utilized.

Work in Process—Before Bottleneck Utilization—Before


80 60%
70 50%
60
50 40%
40 30%
30
20 20%
©2009, ASQ

10 10%
0 No. of Jobs
1st Wk 2nd Wk 3rd Wk 4th Wk 0%
Setup Breakdowns Utilization

www.asq.org 17
Process Improvement: Using Toyota’s A3 Reports

Table 2 (continued)
3. Future State Analysis
A drum buffer rope (DBR) solution was developed. First, drum was developed for the bottleneck machine. Second, buffer size
was developed to protect the drum. Third, rope was tied to properly release jobs into manufacturing component area.

Obtain work order Review WK pkg. Travel to Verify & match metal
from PC area & pull sheet metal room with pull sheet
(2 min) (5 min) (5 min) (10 min)

Is template in Yes Template in pkg. travel Scribe Travel to Trim material


pkg. or need to to workbench template bard saw to template
obtain? (2 min) (10 min) (1 min) (7 min)

No
Obtain template
from rack
(2 min)

Debur Is form Yes Transport to QA Transport to


Form Material
material required? workbench heat treatment
(3 min) Buffer Drum
(Farquar: 45 min)
(2 Min) (2 min)
No
Transport to
Is part good Good
brake shop
(1 min) Rope or defective?

Bad
Defective part is scrapped and process
re-starts at travel to metal room.

4. Implementation
Development of the initial drum schedule and rules to improve the efficiency of the bottleneck was difficult. The bottleneck had
some maintenance issues, which were studied by the maintenance department. The number of jobs in the system decreased and
bottleneck utilization improved.

Work in Process—After Bottleneck Utilization—After


14 70%
12 60%
10 50%
8 40%
6 30%
4 20%
2 10%
0 No. of Jobs
1st Wk 2nd Wk 3rd Wk 4th Wk 0%
Setup Breakdowns Utilization
©2009, ASQ

Four weeks after the implementation, bottleneck performance had increased. The shop supervisor confirmed that parts lead-time
decreased. The supervisor also knew that many steps of the operation were manually done and that there was an opportunity
for automation.

18 QMJ VOL. 16, no. 4/© 2009, ASQ


Process Improvement: Using Toyota’s A3 Reports

Table 3
Speed A3 Report Date 09/01/08

Target Shop: 4095


Facilitator: Satya Chakravorty
Speed Trainees: Maggie Davis, John Anderson, and Ivey James
Process Owners: Kevin Rice (Supervisor) and Tubing Area Artisans

1. Problem Statement
The problem in the tubing area was that there was high variability in processing time through the area. The artisans pointed out
that the problem was around one machine “process tube.”

2. Current State Analysis


After interviewing workers and completing the process map, the improvement team observed variation in processing time for
“process tube” operation. The facilitator suggested a statistical process control chart to pinpoint the problem and applied Six
Sigma’s DMAIC method.

Obtain work Verify print Travel to Retrieve conversion code from


order from box matches P/N on computer computer or cabinet for tubing
by aisle way work document or cabinet machine setup sequence
Samples were obtained
(1 min) (2 min) (5 min) (1 min)
from this machine

Cut tube to Clean tube in Stamp off


Debur tubing Process tube
length varsol tank paper work
(2 min) (20 min)
(3 min) (5 min) (1 min)

Travel to clock station Deliver completed 3R


UCL = X +
and clock-off work tubing to PC d2 n
(1 min) (1 min)
3R
LCL = X −
d2 n
n = Sample size
X = Average of mean of each sample
R = Range of each sample (largest-smallest)
R = Average of all sample’s range

Tubing Area
Interview and walk-through simulation with 50.00
Change of raw material/new vendor
Wesley King 45.00
40.00
Processing Time

93553 Tubing Area 35.00 UCL


This shop has 4 people on 1st shift and 1 30.00
“Loaner” from H-53 AC line. 25.00 X
1/4" to 3/4' tubing has 30 minute setup 20.00
15.00 LCL
2" plus tubing machine has 8 hr. set up 10.00
Concerns and Recommendations 5.00
a. Have “conversion code”computer and 0.00
1 2 3 4 5 6 7 8 9 10
tubing “machine” computer communicate Days
together. Once conversion code is retrieved
at front desk it would automatically
download conversion to tubing machine.
This would eliminate duplicate effort of
©2009, ASQ

work. Three new machines, if possible,


have capabilities that computer can talk to
the machine. (Conversion not accurate.)

www.asq.org 19
Process Improvement: Using Toyota’s A3 Reports

Table 3 (continued)
b. Machines are set too close together, need more room.
c. Pines mfg. tube bender (new machine) was ordered without additional tooling support, agreed by upper management to
share tooling support from “old” tube bender and new tube bender. With new additional tooling, could produce double the
work. Some of the “old” tooling support will not work with new setup.
d. Needs more room, people, air conditioner, workbench and no tools for the particular machine, tube bender. (PIN NC25
Green)

3. Future State Analysis


The variation in shop performance was due to several vendors supplying same raw materials with slightly different specifications
to the shop. The raw materials were delivered to the shop where there was no inspection or quality check of the incoming raw
materials. Using operators’ input, inspection strategy (for example, number of times in a day, what to check, and how to check)
and a vendor scorecard (for example, quality and delivery) were developed. The purpose was to choose one main and one
back-up vendor, based on high performance as evidenced by vendor scorecards.

Obtain work Verify print Travel to Retrieve conversion code from


order from box matches P/N on computer computer or cabinet for tubing
by aisle way work document or cabinet machine setup sequence
(1 min) (2 min) (5 min) (1 min)

Incoming material
(1) Inspection
(2) Vendor scorecard Cut tube to Clean tube in Stamp off
Debur tubing Process tube
length varsol tank paper work
(2 min) (20 min)
(3 min) (5 min) (1 min)

Travel to clock station Deliver completed


and clock-off work tubing to PC
(1 min) (1 min)

4. Implementation
Vendor scorecards were implemented, and one vendor was chosen. This vendor supplied material to the shop, and after about
four weeks, shop performance stabilized. (A back-up plan was in place until success with the single vendor was confirmed.)

30.00 UCL
25.00
X
Processing Time

20.00
LCL
15.00
10.00
5.00
0.00
1 2 3 4 5 6 7 8 9 10
Days
©2009, ASQ

Five weeks after the implementation, the shop performance continued to be stable. The purchasing department wanted to
implement statistical process control and vendor scorecards for all of their vendors.

champions to manage the teams. In addition to com- literature. For example, according to Liker (2004),
municating with the Speed team, champions worked low-level improvement teams and champions are
with the improvement teams on various improve- essential to drive improvement projects from the
ment projects. This approach is well supported in the bottom up. According to McManus (2007, 20):

20 QMJ VOL. 16, no. 4/© 2009, ASQ


Process Improvement: Using Toyota’s A3 Reports

“Every organization should have a process necessary on how to mix these tools to correctly identify
improvement team approach in place that and prioritize improvement projects to align them with
engages a high percentage of the work force. the overall process improvement objectives to achieve a
Such an approach is mandatory for sustained sustained competitive advantage in the ever-changing
progress toward process excellence…. If you global market.
want to sustain your improvement efforts over Fourth, the A3 report is an improvement tool, and
time…give a training [to the improvement various implementation activities need to be coordi-
teams], and turn teams loose.” nated for its successful adoption. The author believes
this A3 report implementation was a success because
The human side of the improvement initiative is crit-
various implementation activities (for example, stra-
ical for successful improvement implementations. While
tegic intent, core improvement team, and so on) were
implementing improvement programs, Vavra (2008)
properly coordinated. Many process improvement
found that human (or organization) culture issues dom-
programs fail not because improvement tools are inad-
inate when compared with tools (or technology) issues.
equate; they fail because implementation activities
According to Chakravorty and Dulaney (2010), effective related to such programs are not properly coordinated
management of human aspects is critical for improve- (for example, Chakravorty 2009). Unfortunately, a
ment initiatives. Chakravorty (2009) points out that lot of academic research tends to focus on uncovering
companies need to pay attention to the human side of intricate, many times unnecessary details of improve-
improvement initiatives. Often times, more importance ment tools (for example, Schroeder et al. 2008), rather
is given to intricate details of improvement tools and not than on how to coordinate activities to implement such
to how humans adapt to such improvement tools. Future tools. In the real world, the author believes that practic-
research should focus on identifying human aspects ing managers do understand the definition of process
(for example, team composition, communications, and improvement tools. They simply lack an understanding
incentives) of A3 reports to facilitate implementation in of different activities critical to implementation, and
their business environment. how to coordinate those activities in a systematic man-
Third, in order to implement A3 reports, the team ner. Research in developing an implementation model
experienced substantial difficulty in identifying and pri- for coordinating various activities related to A3 reports
oritizing improvement projects aligned to overall process is an important area for future research.
improvement objectives. To prioritize these improvement Fifth, A3 reports are promoted as improvement tools
projects, they used cost reduction and revenue genera- primarily for lean (for example, Sobek and Smalley
tion (or throughput based) potential, along with input 2008; Shook 2008; Jimmerson 2007). Likewise, different
from workers and management. It is important to learn improvement tools are endorsed by Six Sigma or theory
more about how to identify improvement projects, and of constraints. Consistent with the team’s implementation
how to prioritize them. One reason many improvement experience, it is not surprising that there is a good bit of
programs fail is because improvement projects are not confusion among managers attempting to select specific
correctly identified and prioritized (Zimmerman and improvement tools for their business environment. The
Weiss 2005). Over the years, many researchers have problem is that managers waste their time in adopting
worked on prioritizing improvement projects by mixing the newest improvement tool and using consultants, and
tools such as Six Sigma, lean, or theory of constraints. spend very little time in driving process improvement from
For example, Draman and Chakravorty (2000) and the bottom. Hayes et al. (2004) argue that improvement
Chakravorty and Atwater (1998) showed how to pri- tools fail to show a significant increase in performance
oritize quality improvement projects using theory of because, prior to implementing them, most companies
constraints. Chakravorty (1996) and Chakravorty and do not develop deep problem-solving capabilities in their
Sessum (1995) showed how to blend lean improvement employees. They refer to the development of these capa-
projects using theory of constraints. More research is bilities as “learning by doing.” As the name implies,

www.asq.org 21
Process Improvement: Using Toyota’s A3 Reports

managers and workers must practice the art and science and practice of implementation of A3 reports to reduce
of problem solving to use it effectively. Further, they write waste and create value.
“…you are not likely to be able to make substantial
progress through analysis and detailed improvement pro- REFERENCES
grams, no matter how many consultants you hire…” Abilla, P. 2007. Toyota A3 Report, March. http://www.shmula.
This research shows that deep problem-solving capability com/363/the-toyota-a3-report
could be developed using A3 reports. In doing so, A3 reports Argyris, C. 1985. Action science: Concepts, methods, and
could be used to implement lean, Six Sigma, or theory skills for research and intervention. San Francisco: Jossey-Bass
Publishers, 136-148.
of constraints. Additional insights are available on deep
problem-solving capability in various real-world settings Chakravorty, S. S., and R. E. Dulaney. 2010. ERP systems: An
implementation experience. International Journal of Business
(for example, Chakravorty, Hales, and Herbert 2008b;
Excellence, in press.
Chakravorty and Hales 2008; Chakravorty and Franza
Chakravorty, S. S. 2009. Six Sigma programs: An implementa-
2009). More research on A3 implementation is necessary
tion model. International Journal of Production Economics 119,
in different business environments to enhance the team’s no. 1:1-16.
experience from this implementation. This research will be
Chakravorty, S. S., and R. M. Franza. 2009. Implementation
greatly helpful for practicing managers wanting to effec- of design for Six Sigma (DFSS): A development experience.
tively implement improvement programs using A3 reports. International Journal of Product Development 9, no. 4:329-342.

Chakravorty, S. S., and D. N. Hales. 2008. The evolution of

CONCLUSIONS manufacturing cells: An action research study. European Journal


of Operational Research 188:153-168.
In this study, the author described how Toyota’s A3 Chakravorty, S. S., J. B. Atwater, and J. I. Herbert. 2008a. The
reports were implemented at a facility in the southern Shingo Prize for operational excellence: Rewarding world-class
practices. International Journal of Business Excellence 1, no.
United States to improve aircraft maintain and repair. He
4:418-433.
provided a systematic approach, improvement event, and
Chakravorty, S. S., D. N. Hales, and J. I. Herbert. 2008b. How
a process to implement and document A3 reports. Each
problem solving really works. International Journal of Data
improvement event was conducted at a target shop by an Analysis Techniques and Strategies 1, no. 1:44-59.
experienced facilitator with a team of workers from the Chakravorty, S. S., and J. B. Atwater. 2006. Bottleneck manage-
shop. An improvement event consists of a host of activi- ment: Theory and practice. Production Planning & Control 17, no.
ties, and they are generally completed in four weeks and 5:441-447.
consist of four distinct phases: 1) preparation and train- Chakravorty, S. S., and D. N. Hales. 2004. Implications of cell
ing; 2) process mapping and analysis of current state; design implementation: A case study and analysis. European
Journal of Operational Research 152, no. 3:602-614.
3) process mapping and analysis of future state; and
4) implementation and ownership transfer. Important Chakravorty, S. S. 2000. Improving a v-plant operation: A
window manufacturing case study. Production and Inventory
for both practitioners and academicians, the author
Management Journal (Third Quarter):37-42.
provided five implications of the process implementation
Chakravorty, S. S., and J. B. Atwater. 1998. Implementing qual-
experience with directions for future research. ity improvement programs using the focusing steps of the theory
This research shows how to effectively guide process of constraints. International Journal of Technology Management
improvement effort using A3 reports to reduce waste 16(4/5/6):544-555.
from the operations. This is particularly important Chakravorty, S. S. 1996. Robert Bowden Inc.: A case study
because today’s hard economic times demand that of cellular manufacturing and drum-buffer-rope implementa-
tion. Production and Inventory Management Journal (Third
companies reduce waste to stay in business, retain
Quarter):15-19.
employees, and nurture customers. There is increasing
Chakravorty, S. S., and J. L. Sessum. 1995. Developing effective
pressure to pursue new and innovative ways of thinking
strategies to prioritize setup reduction in multi-machine produc-
as a source of competitive advantage. More research tion system. International Journal of Operations and Production
in this area is necessary to contribute to the science Management 15, no. 10:103-11.

22 QMJ VOL. 16, no. 4/© 2009, ASQ


Process Improvement: Using Toyota’s A3 Reports

Cleveland, W. 1985. The elements of graphing data. Monterrey, Sobek II, D. K., and A. Smalley. 2008. Understanding A3 think-
Calif.: Wadsworth, Inc. ing: A critical component of Toyota’s PDCA management system.
New York: Productivity Press.
Draman, R. H., and S. S. Chakravorty. 2000. An evaluation
of quality improvement project selection alternatives. Quality Sobek II, D. K, and C. Jimmerson. 2006. A3 reports: Tool for
Management Journal 7, no. 1:58-73. organization transformation. In Proceedings of the Industrial
Engineering Research Conference, Orlando, Fla.
Davidson, R., M. Martinsons, and N. Kock. 2004. Principles of
canonical action research. Information Systems Journal 14, no. Sobek II, D. K., and C. Jimmerson. 2004. A3 Reports: A tool
1:65-86. for process improvement and organizational transformation. In
Proceedings of the Industrial Engineering Research Conference,
Hayes, R. H., G. P. Pisano, D. M. Upton, and S. C. Wheelwright. Houston, Texas.
2004. Operations, strategy, and technology: Pursuing the com-
petitive edge. New York: John Wiley & Sons. Susman, G., and R. Evered. 1978. An assessment of the scien-
tific merits of action research. Administrative Sciences Quarterly
Goldratt, E. M., and J. Cox. 2004. The goal. Great Barrington, 23:582-603.
Mass.: North River Press.
Tufte, E. R. 1983. The visual display of quantitative information.
Jimmerson, C. 2007. A3 problem solving for healthcare: A prac- Cheshire, Conn.: Graphics Press.
tical method of eliminating waste. New York: Productivity Press.
Vavra, B. 2008. Which way do you lean. Plan Engineering
Jimmerson, C. 2004. Unique features of the A3 problem solving (March):31-36.
method: A breath of fresh air for ailing healthcare. Lean Health
Care West. http://leanhealthcarewest.com/ Womack, J. P., and D. T. Jones. 2003. Lean thinking. New York:
Free Press.
Kemmis, S., and R. McTaggart. 2000. Participatory action
research. In Handbook of Qualitative Research, second edition, Yin, R. K. 2008. Case study research: Design and methods.
eds. N. K. Denzin, and Y. S. Lincoln, 567-606. California: Sage Thousand Oaks, Calif.: Sage Publications.
Publications. Zimmerman, J. P., and J. Weiss. 2005. Six Sigma’s seven sins.
Keller, P. 2005. Six Sigma: Demystified. New York: McGraw-Hill. Quality 44, no. 1:62-66.

Lepore, D., and O. Cohen. 1999. Deming and Goldratt: The the-
BIOGRAPHY
ory of constraints and the system of profound knowledge. Great
Barrington, Mass.: North River Press. Satya S. Chakravorty is Caraustar professor of operations man-
agement and professor at Michael J. Coles School of Business
Liker, J. K. 2004. The Toyota way: 14 Management principles
at Kennesaw State University, Kennesaw, GA. He received his
from the world’s greatest manufacturer. New York: McGraw-Hill.
doctorate in production and operations management from the
McManus, K.. 2007. The trouble with teams. Industrial Engineer University of Georgia. He holds bachelor’s and master’s degrees
39, no. 10:20. in engineering and sciences from BITS, Pilani (India). He is
a Certified Fellow of Production and Inventory Management
Pyzdek, T. 2003. The Six Sigma handbook: A complete guide for
(CFPIM), and a certified academic associate (JONAH) from
green belts, black belts, and managers at all levels. New York:
Goldratt Institute. He has training in lean manufacturing and has
McGraw-Hill. Six Sigma Black Belt training experience. He has also worked as
Robinson, A. 1990. Modern approaches to manufacturing an examiner for the Shingo Prize for Operational Excellence.
improvement. Portland, OR: Productivity Press. Chakravorty has worked as a senior advisor for BearingPoint
Radeka, K. 2005. Anatomy of A3 Report: Focusing knowl- and Deloitte Consulting companies. His expertise is in develop-
edge for better decision-making. Camas, Wash.: Whittier ing, training, and implementing process improvement (lean, Six
Consulting Group, Inc. http://www.whittierconsulting.com/pdf/ Sigma, and theory of constraints) programs in large organiza-
anatomy_of_a3.pdf tions such as the U.S. Marine Corps Air Station, Shaw Industries,
Lockheed Martin, Heinz, Delta Engine Repair, Beech-Nut, 3M
Rother, M., and J. Shook. 1998. Learning to see. Brookline, Corporation, AT&T, Harlequin, Beechnut, DariGold, and Los
Mass.: The Lean Enterprise Institute, Inc. Angeles Times. Many of his implementation experiences can be
found in journals such as Operations Management Research;
Schroeder, R. G., K. Linderman, C. Liedtke, and A. S. Choo.
International Journal of Production Economics; European
2008. Six Sigma: Definition and underlying theory. Journal of
Journal of Industrial Engineering; Production and Operations
Operations Management 26, no. 4:536-554.
Management; European Journal of Operational Research;
Shook, J. 2008. Managing to learn: Using the A3 management Production and Inventory Management Journal; Industrial
process to solve Problems, gain agreement, mentor, and lead. Management; and Quality Management Journal. Chakravorty
Cambridge, Mass.: The Lean Enterprise Institute, Inc. can be reached at satya_chakravorty@kennesaw.edu.

www.asq.org 23
Process Improvement: Using Toyota’s A3 Reports

Appendix 1
A3 Report
To: ___________________
THEME: “What are we trying to do?”
By: ___________________
Date: _________________

Background Target Condition

• Background of the problem • Diagram of proposed new process


• Context required for full understanding • Countermeasures noted as fluffy clouds
• Importance of the problem • Measurable targets (quantity, time)

Implementation Plan
Current Condition
What? Who? When? Where?
• Diagram of current situation (or process)
• Highlight problem(s) with storm bursts
Actions to Responsible Times,
• What about the system is not IDEAL
be taken person dates
• Extent of the problem(s), i.e., measures

Cost:

Cause Analysis Follow-Up


• List problem(s) Plan Actual Results
• Most likely direct (or root) cause • How will you • In red ink/pencil
Why?
Why? check the effects • Date check done
Why?
Why? • When will you • Results, compare
Why?
check them? to predicted

Downloaded from Web site: http://www.coe.montana.edu/IE/faculty/sobek/A3/report.pdf

24 QMJ VOL. 16, no. 4/© 2009, ASQ


Process Improvement: Using Toyota’s A3 Reports

Appendix 2
Process Improvement Training Program
• Six Sigma simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined,
data-driven approach and methodology for eliminating defects (driving toward six standard deviations between
the mean and the nearest specification limit) in any process from manufacturing to service operations and from
product to service. Six Sigma tools include:
o Process identification and mapping
o DMAIC (define, measure, analyze, improve, and control) methodology
o Statistical process control
o Analysis of variance (ANOVA)
o Multiple regression
o Taguchi’s experimental design

• Lean operations principles categorize activities into value-added and non-value-added activities. The focus of these
principles is on eliminating all forms of non-value-added activities. There are seven forms of non-value-added (or
waste): waste of over production, waste of inventory, waste of defects, waste of motion, waste of processing, waste of
waiting, and waste of transportation. Lean operations tools include:
o Value-stream mapping
o Lean events
o SMED (a.k.a quick changeover)
o Manufacturing cell design
o Poka-yoke (a.k.a. mistake proofing)
o 5S Plus One (sort, straighten, shine, standardize, sustain, and safety)

• Theory of constraints (TOC) challenges the belief of functional independence with the view of an organization
as a chain of dependent activities. According to TOC, every organization has a constraint or bottleneck, and the
existence of a bottleneck provides an opportunity for process improvement priority. In addition, TOC provides a
set of measures that link local actions to the measures of organization-wide measures. TOC tools include:
o Bottleneck analysis
o Drum buffer rope
o Buffer management
o Buffer sizes and locations
o Throughput maximization
o VAT operations analysis

1) Keller (2005)
2) Womack and Jones (2003)
3) Goldratt and Cox (2004)

www.asq.org 25
Process Improvement: Using Toyota’s A3 Reports

Appendix 3
Speed A3 Report Date _____________

Target Shop
Facilitator ______________________
Speed Trainees _________________
Process Owners _________________

1. Problem Statement
This section delineates problems associated with the target shop.

2. Current State Analysis


This section documents data collection and analysis to understand the current conditions.

3. Future State Analysis


This section summarizes the future conditions after improvements are introduced.

4. Implementation
This section highlights implementation, shows results, and provides follow-up activities.

Adapted from Toyota’s A3 Report and printed on one page of 11-inch by 17-inch (A3) paper or two pages of 11-inch by 8.5-inch paper.

26 QMJ VOL. 16, no. 4/© 2009, ASQ

You might also like