A3 Report Writing

1. A3 Report Writing Toyota’s preferred method of written communication Delphi Course #62004527 Copied from the Toyota Auburn Hills Training package. For Delphi Use Only.

2. A3 Report Writing Agenda • Introductions • History of Toyota • Objectives • Module 1: Toyota Principles/Characteristics • Module 2: A3 (&A4) Types • Module 3: Standard Elements • Creating an A3 • Wrap-up/Review

3. Toyota History • Sakichi Toyoda Invents an automatic loom (1894) • Sakichi Toyoda decides to enter the car market (1920’s) • Kiichiro Toyoda devises the just-in-time system of production • Change name to Toyota (1936) • Taiichi Ohno transferred from Toyoda Spinning & Weaving to the Toyota Motor Company • First cars shipped to US in 1957 • Second best selling nameplate in US (1970) • Began truck bed fabrication and vehicle assembly (mid 70s) • NUMMI vehicle manufacturing (1986) • Today Toyota is one of the 10 largest companies in the world.

4. Objectives • Understand importance of A3 reporting standard • Learn the 4 basic types of A3 reports • Learn the elements of each type of report • Study the layout and formats of A3s • Practice developing and writing an A3

5. Act Plan Confirm Countermeasures Investigate the Problem Grasp the Situation GTS Test for Cause/Effect Relationship Look for Cause Do Check Module 1: Toyota Principles Practical Problem Solving PDCA

6. Module 1: Toyota PrinciplesBenefits of using the A3 Format 1. Kaizen • Clarifies the goal • Shows the standard and deviation • Forces addressing all issues • Outlines new goal and method to reach it 2. Front-line Decision Making • Grasp the situation • Shows facts / data • Shows decision process • Shows options

7. Toyota PrinciplesBenefits of using the A3 Format (cont.) 3. Cost Consciousness • Shows cost analysis • Shows alternatives • Supports cost justification (ringi-sho) 4. Process Management • A-3 is a STORY about the LOGICAL THINKING PROCESS • A-3 shows “grasp the situation” • Helps management understand process used • Establishes vital points

8. Toyota PrinciplesBenefits of using the A3 Format (cont.) 5. Management based on Philosophy • Relates topic to company, divisional, annual goals • Makes us ask, “Why do this?” 6. Toyota Associate Development (Respect for the value of people) • Teaches thinking process • Fosters 2-way communication • Tool for constructive approach to needed countermeasures, improvements:depersonalize issues • Aids in objective evaluation of associates’ information handling skills and logic

9. Toyota PrinciplesBenefits of using the A3 Format (cont.) 7. Teamwork & Communication • Standard form facilitates communication • All can understand • All have same information • Simple, brief, clear • Can be done collectively • Allows “3-D” communication Manager Future Inside Outside Past Team Member

10. What is Nemawashi? “To dig around the root of a tree to prepare for transplanting”

11. Nemawashi Model • Determine the Need • Establish Rapport • Assess (Grasp Present Situation, Get Info) • Offer a Proposal (Give Info) • Negotiate Agreement/ Next Actions (Merge) • Check for Consensus

12. Background • Problem Solving format surfaced in the early 1960’s after Deming’s visit • Utilized within Q.C. circles for shop problems (supports TPS) • A-3 use evolved in Toyota Management during 1970s with direct focus on reader understanding

13. Toyota CharacteristicsReflects Company’s Vision (Image) Operating Principles Stated Philosophy Underlying Beliefs, Values, Assumptions Ground Level

14. Initial Problem Perception (large, vague, complicated problem) Grasp the Situation Clarify the Problem The “Real” Problem Basic Cause/Effect Investigation Look for Cause Track back, go see Cause Investigation Why? Why? Why? Why? Why? Why? Direct Cause Cause Cause Cause Cause Investigation to Root Cause Countermeasure Root Cause

15. Quick Review of PDCA and PPS Plan Act Do Check Changes in the Environment + New Company Goals/Needs = Grasp the Situation (Root Cause)

16. The Relationship between Process and Proposal Theme Plan Identify Situation Analyze Situation Situation Countermeasures Action Standardize or Start Again DO Recommend Countermeasures Implementation Target Implementation Check Follow-up Analysis Follow-up

17. Reflection – Module 1 Any Questions ? Quick Quiz

18. Quick Quiz – Module 1 1) What are Toyota’s Operating Principles? Stated Philosophies? Underlying Beliefs, Values, Assumptions?

19. Quick Quiz – Module 1 2) List the 5 steps of Practical Problem Solving Step 1: _________________________________ Step 2: _________________________________ Step 3: _________________________________ Step 4: _________________________________ Step 5: _________________________________

20. Quick Quiz – Module 1 3) List the 5 steps of PDCA Step 1: _________________________________ Step 2: _________________________________ Step 3: _________________________________ Step 4: _________________________________ Step 5: _________________________________

21. Module 2: Types of A3s?

22. When To Use a Story Board (A3) • Anytime you wish to clearly tell a story • Especially when you wish to simplify or clarify a complicated story.

23. WHAT is an A3? An A3 is a one-page report used by Toyota that includes all information needed for the reader to: • make a decision on a stated PROPOSAL orPROBLEM, or • to communicate the STATUS of, or plans for, a specific goal THEME OF A3 SIGNATURE BLOCK • Toyota does not teach a set format • Guidelines are established such as the inverted “N” flow to the right • Every Toyota associate receives A3 Training PLAN FOLLOW-UP SITUATION ANALYSIS COUNTERMEASURE 7

24. WHY Use the A3 Format? BECAUSE AN A3 REPORT...

25. Vital Parts of an A3 • Tell a Story • Flow • Simple • Follows PDCA or PPS or DPS • Based on Facts, Not Opinion • Clear and Concise • Picture is Worth a Thousand Words (Graphics)

26. Types of A3/A4s 1) Problem Solving Story 2) Proposal Story 3) Status Report 4) Informational Story

27. Types of A3 Reports Problem Consciousness Current Situation Report Types P.S. Story Proposal Story Status Story Info Story

28. Tell a Problem Solving StoryWhen: • A plan, goal or standard is not being met.

29. Theme (subject) Grasp The Situation Background (Why I/We Chose Theme) Current Situation (Analysis of Problem(s) and Cause(s)) Countermeasures (to address causes(s)) Plan Do Implementation Follow-Up (Review/Evaluation Results – Unresolved Problems) Check Future Actions (New Countermeasures and/or Standardization) Act Problem Solving Story

30. Theme: Answers the question, “What are we trying to do?” I. Problem Situation IV. Countermeasures V. Implementation VI. Follow-up • The Standard • Current Situation • Discrepancy/Extent of the Problem Rationale for picking up problem (importance to business activity, goals and values of the organization) (Resulting from Cause Analysis) • Temporary Measure • Long Term Countermeasure What Where Who When Action to Place Respons- Times, be taken ible person Dates Cost • Unresolved issues & actions to address them? • How will you check effects? • When will you check the effects? • How will you report your findings? • When will you report your findings? II. Target/Goal • Measurable description of what you want to change;quantity, time III. Cause Analysis Problem: Potential Causes Most likely direct cause Why? Why? Why? Why? Why? Root Cause: Problem Solving Report Story Signature Block

31. Tell a Proposal Story When: • There is no plan or goal but there is a company value which needs to be addressed. • A plan or goal existed, but situation has changed and a new goal, policy or plan needs to be made. • A new direction or policy is made and a goal/plan must be made to address it.

32. Title Grasp The Situation Background (Existing Value, Expectation, Policy, Goal or Plan) Current Situation (Analysis of Need(s) and Contributing Conditions) Recommendations (Cost/Benefits) Plan Implementation (Details of the Plan) Do Follow-Up (Review/Evaluation Results – Unresolved Problems) Check Proposal Story

33. Signatures, date I. Introduction IV. Unresolved Issues (optional) Basic Concept, Background, or Basic Strategy, and How it fits into the big picture Unresolved issues How to overcome obstacles i.e. How to negotiate with related departments, anticipated problems and resolutions II. Proposal How to deploy Basic Concept (Vital Points) Proposal Story Title or Theme: III. Plan Required Reason for Expected Responsibility Condition Required Effect Condition What/How Why What Who Cost V. Implementation How to deploy plan Schedule/Timeline

34. Signatures, date Proposal Story Title (Project) I. Background & Basic Concept IV. Contents of the Plan Timing ________ ________ Members ______, _______, __________ Cost ________ Curriculum Expected Effect __________ ( ) II. Selection of the Plan Option A D V. Implementation Schedule D X Option B 0 D III. Example of other companies 0 D A __________ B ___________ Legend: Preferred Slight risk High Risk D X

35. Tell a Status Report Story When: • Establishing activities for a new goal • Reporting on the major points of large goals • Annual plans • Mid & year end reviews • Monthly vehicle status report

36. Signatures, date V. Future Actions Unresolved Problems Actions Status Report Story Theme: IV. Total Effect Impact to dept/company, expected benefits I. Background Reason for choosing Theme II. Objectives Vital points of strategy or policy III. Implementation Objectives Activity Achievements Eval- Future expl. uation Problems D X Legend: Preferred Slight risk High Risk D X

37. Informational Story Presentation Definition: An Informational Story Presentation is a story that summarized the current situation only. It does not include an evaluation component. • Requires no problem consciousness • Freedom to choose different types of format • Must be verified • Visualization is a very important part of the process Purpose: Informational Stories are used to convey general information to any audience, inside or outside the company.

38. Reflection – Module 2 Quick Quiz Any Questions ?

39. Quick Quiz 1) List the 4 basic types of A3s 1: _________________________________________ 2: _________________________________________ 3: _________________________________________ 4: _________________________________________

40. Quick Quiz 2) You are requesting to purchase a new piece of “capital” equipment. What type of A3 would be best suited for this situation? ____________________________________

41. I. Basic Concept, Background, or Basic Strategy, and How it fits into the big picture II. How to deploy Basic Concept (Vital Points) Quick Quiz - Proposal Story 3) Fill in the title blocks III. Required Reason for Expected Responsibility Condition Required Effect Condition What/How Why What Who Cost IV. Unresolved issues How to overcome obstacles i.e. How to negotiate with related departments, anticipated problems and resolutions V. How to deploy plan Schedule/Timeline

42. Quick Quiz 4) Name at least two things all A3/A4 reports have in common? • _______________________________________ • _______________________________________ • _______________________________________

43. Module 3: A3 Vital Points

44. Module 3: A3 Vital Points • Plan time to grasp the ENTIRE situation: • Consider a wide range of information sources • Consider others involved – Nemawashi • Base story on facts, not opinion alone • Consider the long-term effect • Decide what kind of story you need to tell: • Write to your audience • Consider needs, knowledge of situation • Relate the story to company values, philosophy

45. A3 Vital Points (continued) • Make your story flow in a logical sequence. Include only points needed to tell the story. • Save words – use graphs and visuals to tell your story when possible. • Clarify the accuracy of the data used. • Make every word count – be specific, avoid specialized language. • Consider visual effect of each box on the page in helping you tell the story.

46. Layout GuidelinesOne Page (A3) Reporting I. Title, Signature Boxes, Author and Date Title Placement • Place in top left or top center of page (top left is preferable because it ensures that the title is still visible if the sheet is tri-folded) • Clearly indicate the subject and purpose of the report Title Signature Boxes Author: Date

47. Title Signature Boxes Author: Date Layout GuidelinesOne Page (A3) Reporting (Cont.) Signature Boxes • Place in top right corner of report • Boxes are to display approval from management • Signatures should appear highest to lowest in rank order (left to right) Author and Date • Clearly indicate the source and age of the report • Place on top right side of report

48. Report Title Signature Boxes II. Boxes • Clearly separate boxes and follow the logic flow • Allot space according to importance of item (ex. More space for analysis or countermeasures based on what you want to emphasize.) What is important for the reader? • Allow for margins and space between boxes • Leave space on left for three hole punching • Line up box edges where possible

49. III. Size and Font of Text • Key point is readability • Maintain same fonts or typestyles throughout (one for headings, one for body text) • If you will be reducing any text or graphics, use larger type • Typical Font Sizes Headings = 12 point minimum Body Text = 10 point Note: One Font Type

50. IV. Numbering (or bullets) and Line Spacing • Use numbered lists (or bullets) instead of sentences and paragraphs. • Numbering makes items easier to reference in discussion • The order of numbered items should be based on importance, sequence, or time. • Leave a blank line between each number or bullet for readability and flow.