Professional Documents
Culture Documents
Using Toyota’s
A3 Reports
Satya S. Chakravorty
Kennesaw State University
© 2009, ASQ
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
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
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
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
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.
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)
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.
Recommend walk-in-freezer
Recommend a replacement “Quincy” oven/furnace that is above ground
and can handle multi-job requirements
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.
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
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.
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
Table 2
Speed A3 Report Date 07/01/08
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).
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
No
Obtain template
from rack
(2 min)
10 10%
0 No. of Jobs
1st Wk 2nd Wk 3rd Wk 4th Wk 0%
Setup Breakdowns Utilization
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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)
No
Obtain template
from rack
(2 min)
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.
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.
Table 3
Speed A3 Report Date 09/01/08
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.”
Tubing Area
Interview and walk-through simulation with 50.00
Change of raw material/new vendor
Wesley King 45.00
40.00
Processing Time
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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)
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)
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):
“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,
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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
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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: _________________
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:
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.
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.