Download - A3 Thinking Applied to Policy Deployment

1 Author: Didier Rabino

Guidance to buildinga lean management system

Using A3 for Policy Deployment


• Create A3 policy deployment with risk assessment

• Demonstrate A3 thinking based policy deployment and tools

• Illustrate the use of tools associated with policy deployment

• Define core skills and behaviors to build a lean management system.

Course Objectives


IntroductionWho am I?• Plant manager at Andersen Corporation• Former corporate lean leader at Andersen• Worked 13 years for Steelcase in the US and Europe• 18 years leading and supporting lean transformations and lean implementations

Who are you?• Name• Function• Experience with A3 and Policy Deployment• Expectations from the class.


Agenda

• Info about Policy Deployment

• Info about A3 Thinking

• A3 Strategy Process– Generation– Deployment– Implementation– Evaluation.


Managing Expectations“A man who carries a cat by the tail learns

something he can learn in no other way.”

Mark Twain

This class will not make you an expert…only experience can.


What is Policy Deployment?

A process that:– Reflects on currents year’s performance– Defines key areas of emphasis for next year– Establishes goals for the coming year– Focuses and aligns activities– Allows to respond quickly to threats and

opportunities– Enables the development of a learning

organization.


What are the origins of PD?


Conventional PlanningPost WWII: Taylor’s “scientific management” applied to planning and management

– Many schools created based on complex system

– Planning schools are for “smart people”– Over-managed, detached, and prescriptive– Purely analytical. Nothing is intuitive– No shared vision and many goals– No indications on how to deploy the strategy.


1994: The moment of truthThe emperor does not have any clothes!

http://www.amazon.com/gp/product/images/B000PSJOPE/sr=8-16/qid=1246119314/ref=dp_image_0?ie=UTF8&n=1055398&s=home-garden&qid=1246119314&sr=8-16


1994: Henry Mintzberg“Strategy cannot be planned because planning is about analysis and strategy is about synthesis.”He adds:“Strategies are created by emphasizing informal learning and personal vision.”Mintzberg, 1994


“Most large U.S. Corporations are run like the Soviet Union economy…with their emphasis on central plans…which spell out expectations for managers’ actions… a remarkably effective

Central Planning

way of killing creativity and entrepreneurship.”

Kenichi Ohmae, 1982


Strategy = Analysis + Intuition“Chess is not all calculation. I do the calculation, but I also look at my opponent, his body language, and his intuition.”

Alexander Kotov, 1971


Left over from Planning Schools

• Command and control in disguise… “you shall!”

• Default to budgeting… but the budget does not tell us who we are and where we are going

• Dysfunctional event with silo thinking before going back to business as usual.

http://mystrategicplan.com/resources/wp-content/uploads/2009/03/dilbert2008026112009.gif


Differences with Policy Deployment?

• Process, not an event

• Collaborative approach (horizontally and vertically)

• Balance of analysis and intuition

• Always close to what is happening in Gemba

• Based on the understanding that managerial work is calculated chaos with controlled disorder

• Follows PDCA model.


Review of PDCA

REFLECTREFLECT

GRASP THESITUATION

HYPOTHESISHYPOTHESIS

EXPERIMENTEXPERIMENT

ADJUST ADJUST

Plan

DoCheck

Act


Comparing Broccoli and PDCA?

… Fractals


Fractals View of PDCA

Tools

Activities Activities

Tools


Policy Deployment Cycle

• Micro • Mid-year • Year end


• Micro

• Mid-year

• Year end

• Micro

• Mid-year

• Year end

• Prioritize needs & choose objectives

• Create plan • Deploy plan



• Implement action plans


Grasp theSituation

• Reflect on current condition• Develop image of desired future


Plan

DoCheck

Act


Activity 1 – Grasping the Situation

The Advisory Committee

Phase 1: Read page 1 & 2 and discuss by group (7 min)

Phase 2: Read page 3 and discuss by group (5 min)

Phase 3: Class reflection (8 min)


What is A3?• Big piece of paper (11x17)

• One page document, but the form is only one part of the methodology

• Proven tool taught to us by Toyota.


What are the benefits of A3?

• It encourages PDCA• It clarifies the link between true problems and

countermeasures• It develops thinking problem-solvers• It fosters dialogue within the organization• It forces “5S for information” • It leads to effective countermeasures and

solutions based on facts and data.


A3 Strategy Construction

What did we plan to achieve last year? What are the plans by S,Q,D,C,M topic?

What did we achieve? Who are the owners of the plans?

How will the plans be achieved?

What are the new targets?

What did we plan to do last year?

What did we do?

What have we learned?

What are the new requirements this year? Are there any unresolved issues?

What is the image of the desired future? What are the risks?

What are the countermeasures?

How will these actions be beneficial?

What do we need to do to achieve this year's strategic objectives?

STRATEGY A3Last year's targets, performance and gaps

Last year's activities

Analysis / Justification to this year's activities

This year's action plan

Contingency plan and unresolved issues

What do we need to stop doing, start doing and continue doing?


A3 Strategy Template


The Road Metaphor

Current Condition(Where we are)

Our Vision(Destination)

Use Policy Deployment

Use Operational Plan

Avoid Distractions!


How do you get there?

Grasp theSituation



Plan

DoCheck

Act


Reflect on Current Condition• Performance, gaps and targets:

– What were last year’s results?– Are we getting better or worse?

• Reflection on the year’s activities:– Assess each of last year’s activities:– What worked and what didn’t work?– What prevented us from meeting our

target?– What did we learn?

Grasp theSituation



Plan

DoCheck

Act


Reflect on Current Conditions


Activity 2 – Dashboard Analysis

Display Plus PlasmaCase Study

Phase 1: Study the graphs to decipher the story (5 min)

Phase 2: Compare notes and discuss by group (5 min)

Phase 3: Class reflection (5 min)


Develop Image of Desired FutureIdentify 3 – 5 key areas of emphasis: • What needs to be done & how will these

areas be of benefit?• What are your external and internal

environments at year end?• What are your company business needs

and priorities?• What are the new needs and

expectations?

Grasp theSituation



Plan

DoCheck

Act


Develop Image of Desired Future





• Create plan • Deploy planPlan

Grasp theSituation

How do you get there?

DoCheck

Act


What will the key performance targets for next year be?• Safety• Quality• Delivery• Cost

Based on key areas of emphasis, what will the specific targets for each of the key performance metrics be?

Prioritize Needs - Objectives• Prioritize needs &

choose objectives• Create plan• Deploy plan


• Create plan• Deploy planPlan

Grasp theSituation

DoCheck

Act


Catch Ball ProcessGive and take process used during the planning

process to cascade strategies through the organization:

1. Vision is provided by the president who “tosses” it to senior manager

2. Senior managers “catch” the vision and translate it into strategies that are tossed back to the president: “Will these activities achieve your vision?”

3. President provides guidance with strategies tossed back and forth

4. When consensus is reached the strategies are tossed to middle managers and so forth.


Activity 3 – Reflect and Plan

Display Plasma Plus

Phase 1: Read case study and assign roles (5 min)

Phase 2: Catch ball / Tree Analysis (7 min)

Phase 3: Class Reflection (5 min)


Prioritize Needs - Objectives


Create One Page PlanCreate one page plan to achieve

objectives:• Brainstorm ideas: 10 minutes to gather 7 concrete ideas per person on post-its• Group by theme


• Create plan• Deploy plan



Grasp theSituation

DoCheck

Act


BrainstormFocus: Running a marathonObjectives: Personal accomplishment. Improve endurance. Lose

weightTargets: Finish the Twin Cities marathon in less than 4 hours Loose 30 pounds by July.

Delegate work

Free up time

Talk to family

Get enough rest

Talk to business partners

Buy new running shoes

Buy camel pack

Find short and long course paths

Prepare physically

Talk to colleagues who ran last year’s marathon

Subscribe to Runner’s magazine

Find a personal trainer

Change diet Find right running buddies

Read about injury prevention

Read about mental aspects of running

Perform correct stretching before running

Work on flexibility and strength at gym


Affinity Diagram

Step 1 - Generate ideas (Brainstorm)Step 2 - Display ideasStep 3 - Sort ideas into groupsStep 4 - Create header cardsStep 5 - Draw finished diagram.


Affinity DiagramGroup ideas by short, action title

Objectives

Header 1

Header 2

Header 3

Header 4

Header 5

Header 6

Activity

Activity

Activity

Activity

Activity

Activity


Create One-Page Plan


Activity 4 – Affinity Diagram

Running a Marathon

Phase 1: (15 min)Step 1 - Generate ideasStep 2 - Display ideasStep 3 - Sort ideas into groupsStep 4 - Create header cardsStep 5 - Draw finished diagram

Phase 2: (5 min)Present and reflect in class


Contingency planning

What if...? How could…?

• Complex tools:– FMEA, Fault Tree

Analysis

• Simple tools:– Sun diagram + Problem-Countermeasure matrix

Sun diagram


Contingency Plan


Activity 5 – Contingency Planning

Running a marathon:

1.Develop Sun Diagram (10 min)

2.Discuss in class (5 min)


Deploy the plan• Plant A3 • “Mother” A3s:

– key metrics for plant:• safety, quality, delivery, cost

– how to cascade broad brush and hard goals

• Functional A3s:– from plant to value streams and

functional departments• Two must meet.


• Create plan• Deploy plan



Grasp theSituation

DoCheck

Act


Deploy the planPlant Management

Functional Leader

Safety Quality Delivery Cost

VSM 1

VSM 2

VSM 3

Supply Chain

Deployment Leader Safety

Deployment Leader Quality

Deployment Leader Delivery

Deployment Leader Cost


• Less is more. – Make A3 easy to read – “Complexity is crude state. Simplicity marks

the end of a process of refining.” Mark Twain• Rehearse your presentation• Give each person a copy of the A3• 7 minutes to tell the story• Yellow card at 6 minutes, red card at 7 minutes• 10 minutes for Q&A• People give A3 back with their names with notes.

Deploy the Plan: Present


Plant A3 Strategy

High-level SQDC

Deployment Leaders

Cost

A3 Strategy

Delivery

A3 StrategyQuality

A3 StrategySafety

A3 Strategy

Mgr & Supervisors

A3 StrategyA3 Strategy

A3 StrategyA3 Strategyids Plans &

Projects

PLAN

P

D

A

C

Deploy the Plan


Implement Action Plans• Go see

• Visuals - real time:– What is happening to the plan?



Grasp theSituation

DoCheck

PlanAct


“Go See” Process:1. Team reviews last weeks

“Go See" observations

2. Deployment Leader leads the “Go See” walk (one topic a day: SQDCM)

3. Team follows the map, checks and write observations

4. Team identifies necessary corrective actions.

200 SeriesMulls

Su

pe

rma

rke

t

200 Series Fixed

WindowsTier 4 Wall

200 SeriesWork

Center 4

200 SeriesWork

Center 6

A SeriesFixed

A Series Unit Line

A Series Mulls

A Series Sash Line

Su

pe

rma

rke

t

Shipping and Receiving

A SeriesPaint

A Series Fabrication


Example of “Go See Quality”STOPS (3) ACT (Observations from / / ) (2) CHECK (1) PLAN

8:20 FPA board Produce conforming products200 Series Air / water test Produce performing productsFixed Windows Feedback loop Provide feedback to SM

Repair run chart / FTT Make product right the first time8:25 Run chart Deliver correct part to the lineA Series Run chart Deliver good parts to the lineFabrication Feedback loop Provide feedback to the suppliers8:30 FPA board Produce conforming productsA Series Feedback loop Provide feedback to SMPaint Repair run chart / FTT Make product right the first time8:35Ship. & Receiv.8:40 FPA board Produce conforming productsA Series Air / water test Produce performing productsAssembly Feedback loop Provide feedback to FAB

Repair run chart / FTT Make product right the first time8:45 FPA board Produce conforming products200 Series Air / water test Produce performing productsWork Center 6 Feedback loop Provide feedback to SM

Repair run chart / FTT Make product right the first time8:50 Run chart Deliver correct part to the lineSupermarket Run chart Deliver good parts to the line

Feedback loop Provide feedback to the suppliers8:55 FPA board Produce conforming products200 Series Air / water test Produce performing productsWork Center 4 Feedback loop Provide feedback to SM

Repair run chart / FTT Make product right the first time9:00 FPA board Produce conforming products200 Series Feedback loop Provide feedback to lineMulls Repair run chart / FTT Make product right the first time


Micro Check and Adjust1. Metrics

– Dashboards• Grasp the situation

– Bowling Chart• Targets• Actual• Status (R/Y/G)

2. Check Activity / Process.



• Micro

• Mid-year

• Year end

• Micro

• Mid-year

• Year end

Grasp theSituation

Check

Act Plan

Do


Micro Check and Adjust

Bowling Chart Dashboard

0

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

0.0%

1.0%

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7.0%

Production Actual Production TargetProfit Actual Profit Target

0%

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100%


0%

10%

20%

30%

40%

50%

60%

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80%

90%

Customer Sat Actual Customer Sat TargetOEE Actual OEE Target

Red

Yellow

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%


0

1,000

2,000

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5,000

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Missed Orders Actual Missed Orders TargetExpedite Costs Actual

Yellow

0

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0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

# Suggestions Actual # Suggestions TargetSavings Actual

Red


Dashboards:– Hot spots visible at a glance

• Process measures and • End-of-pipe measures

– Show target line and status box (R/Y/G)– What are the required support processes?



Connected Check


TeamSupervisors, Team Leads

Monday

Plant/Deployment LeadersPlant Mgr, Deployment Ldrs, VS Mgrs

Wednesday

Value StreamVS Mgrs, Supervisors

Tuesday

Safety O XQuality O XDelivery O XCost O X

Schedule for Period Micro Check of the PlanWeek 1 Week 2 Week 3 Week 4


Mid/End Year Check and Adjust• Big-picture checks

– Time for reflection– Adjustments needed to be made

• Reflection A3 (Deployment leaders)– Summary of current conditions– End-of-pipe targets

(bottom-line/downstream)– Process targets (upstream)

• Book of Knowledge– Learning organization.



• Micro

• Mid-year

• Year end

• Micro

• Mid-year

• Year end

Grasp theSituation

Check

Act Plan

Do


Mid/End Year Check and Adjust


Plant A3 Strategy

High-level SQDC

Deployment Leaders& Mgrs

Deployment Leaders

Cost

A3 Strategy

Delivery

A3 StrategyQuality

A3 StrategySafety

A3 Strategy

Mgr & Supervisors

A3 StrategyA3 Strategy

A3 StrategyA3 Strategyids Plans &

Projects

Mgr & Supervisors

A3 Reflection

A3 ReflectionA3 Reflection

A3 ReflectionQuarterly & Year-End

Cost

A3 ReflectionDelivery

A3 ReflectionQuality

A3 Reflection

A3 Reflection

Safety

CHECK PLANDO

ACT(corrective actions against Plans)

P

D

A

C

Mid/End Year Check and Adjust


Annual PDCA Cycle



• Micro

• Mid-year

• Year end

• Micro

• Mid-year

• Year end







Grasp theSituation



Plan

DoCheck

Act



• Micro

• Mid-year

• Year end

• Micro

• Mid-year

• Year end







Grasp theSituation



Plan

DoCheck

Act


TIER 4 Org Chart

Meetings & Board Guidelines

Four Rules of AMS

SAFETY QUALITY DELIVERY COST

<< AREA NAME>> A3 BOARD

Strategy A3

MORALE

Go See MORALE

OWNER: *******

Go SeeCOSTOWNER: ******

Go See DELIVERY

OWNER ********

Go See QUALITY

OWNER: *******

Go See SAFETY

OWNER: ******

DASH BOARD DASH BOARDDASH BOARDDASH BOARDDASH BOARD

Deployment Leader

Strategy A3 Strategy A3Strategy A3Strategy A3

Deployment Leader Deployment Leader Deployment Leader Deployment LeaderPlant Strategy A3

Putting Everything Together


AMS House

NAME DATE

First NameLast Name

<< AREA NAME >> ACCOUNTABILITY BOARD

Book of Knowledge

Bowling Chart

Strategy A3

Putting Everything Together


Activity 6 – Teach BackPhase 1: Prepare (5 min)

• PDCA

• A3 Thinking

• Catch Ball

• Affinity Diagram

• Deployment Leader

• Go See

Phase 2: Present (2 min)


Guidance to building a lean management system

Using A3 for Policy Deployment

Last minute questions?

Download - A3 Thinking Applied to Policy Deployment

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