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Plan-Do-Study-Adjust (PDSA):
A Deep Dive
Webinar
December 3, 2013
© 2013 The Karen Martin Group, Inc.
Welcome!
• Argentina
• Australia
• Canada
• Denmark
• France
• Great Britain
• Ireland
• Latvia
• Malaysia
• Netherlands
• New Zealand
• Qatar
• Russia
• Saudi Arabia
• Sweden
• United States
www.ksmartin.com/subscribe
© 2013 The Karen Martin Group, Inc.
 Coach / Facilitator / Consultant / Trainer:
Lead Lean transformations & develop people
across all industries.
 Teacher: University of California, San Diego
 Author & Speaker:
Karen Martin, President
The Karen Martin Group, Inc.
www.ksmartin.com
3
2013 Shingo
Prize winner!
© 2013 The Karen Martin Group, Inc. 4
Hot
off the
press!
www.bit.ly/VSMbk
© 2013 The Karen Martin Group, Inc.
Upcoming Webinars
© 2013 The Karen Martin Group, Inc.
After the webinar…
• All recordings are available on:
– www.vimeo.com/karenmartingroup
– www.youtube.com/karenmartingroup
– www.slideshare.net/karenmartingroup
– www.ksmartin.com/webinars
• The materials are available on:
– www.slideshare.net/karenmartingroup
© 2013 The Karen Martin Group, Inc.
First,
a little history…
© 2013 The Karen Martin Group, Inc.
Two Great Minds
8
W. Edwards Deming
(1900-1993)
Walter Shewhart
(1891-1967)
© 2013 The Karen Martin Group, Inc.
9
Develop
hypothesis
Conduct
experiment
Measure
results
Refine
Standardize
Stabilize
© 2013 The Karen Martin Group, Inc. 10
Detailed Steps
1. Define and break down the problem.
2. Grasp the current condition.
3. Set a target condition.
4. Conduct root cause & gap analysis.
5. Identify potential countermeasures.
6. Develop & test countermeasure(s)
7. Refine and finalize countermeasure(s).
8. Implement countermeasure(s).
Study
Evaluate
Results
9. Measure process performance.
10. Refine, standardize, & stabilize the process.
11. Monitor process performance.
12. Reflect & share learning.
Adjust
Do
Clarifying the PDSA Cycle
Plan
Develop
Hypothesis
Conduct
Experiment
Refine
Standardize
Stabilize
Phase
Continuous
Improvement
New
Problem
50-80%
of the
total
time
Study
Adjust
© 2013 The Karen Martin Group, Inc.
1. Define and break down the problem (PLAN)
11
• What’s the
problem?
• What is NOT the
problem?
• What are the
variables?
• What should we
focus on first?
© 2013 The Karen Martin Group, Inc.
2. Grasp the Current Condition (PLAN)
12
© 2013 The Karen Martin Group, Inc.
3. Set a Target Condition (PLAN)
What SHOULD it look like?
How SHOULD it perform?
How does it need to perform?
How do you want it to perform?
13
© 2013 The Karen Martin Group, Inc.
4. Conduct root cause & gap analysis (PLAN)
14
CauseCause--andand--Effect DiagramEffect Diagram
Machine Measurement Environment
People Material / Info Method
Budgets
Submitted Late
Lack of experience
Time availability
No sense of import
No stnd spread sheet
Email vs. FedEx
No standard work
Input rec’d late
Forecast in other system
Manual vs. PC
System avail.
No milestones
$ vs. units
Weather delays
Dispersed sales force
Changing schedule
Machine Measurement Environment
People Material / Info Method
Budgets
Submitted Late
Lack of experience
Time availability
No sense of import
No stnd spread sheet
Email vs. FedEx
No standard work
Input rec’d late
Forecast in other system
Manual vs. PC
System avail.
No milestones
$ vs. units
Weather delays
Dispersed sales force
Changing schedule
5 Why’s
Why?
Why?
Why?
Why?
Why?
Check Sheets Quantify Occurrences
|Equipment failure
|||||||||||||Changing customer
requirements w/ no
adjustment to expected
delivery
||||||||||Order entry error
|||Staffing/absenteeism
|||||Quality issue requiring
rework
|||||||Material shortage
TallyReason
|Equipment failure
|||||||||||||Changing customer
requirements w/ no
adjustment to expected
delivery
||||||||||Order entry error
|||Staffing/absenteeism
|||||Quality issue requiring
rework
|||||||Material shortage
TallyReason
© 2013 The Karen Martin Group, Inc.
5. Identify potential countermeasures (DO)
• The clearer you are about the problem,
current state, and root cause, the more
obvious the countermeasures become.
• Brainstorming may or may not work.
15
© 2013 The Karen Martin Group, Inc.
6. Develop & test countermeasure(s) (DO)
• Test “live” if possible.
• Testing may be merely getting feedback from
non- core team members.
• Use rapid iterative cycles (mini-PDSA cycles).
16
© 2013 The Karen Martin Group, Inc.
7. Refine & finalize countermeasure(s) (DO)
• Document the new standard work.
– Process maps (occasionally, value stream maps
will do the trick)
– Flow charts
– Check lists
– Concise, visual work instructions
– Etc.
17
© 2013 The Karen Martin Group, Inc.
8. Implement countermeasure(s) (DO)
• Training! Training! Training!
– Include why & WIIFM
– Hands on, when possible
– If there’s a gap between implementation and people
engaging with the new process, you must retrain.
• DO NOT MERELY COMMUNICATE BY EMAIL.
18
© 2013 The Karen Martin Group, Inc.
9. Measure process performance (STUDY)
19
• OBSERVE, TALK, LISTEN
• Measure performance against target condition.
• What obstacles to success remain?
– How can you remove them?
© 2013 The Karen Martin Group, Inc.
10. Refine, standardize & stabilize the process
(ADJUST)
• Retrain if the process is adjusted.
20
© 2013 The Karen Martin Group, Inc.
10. Refine, standardize & stabilize the process (ADJUST) -
continued
21
© 2013 The Karen Martin Group, Inc.
11. Monitor process performance (ADJUST)
22
• Requires a Process Owner.
• Define & monitor 2-5 key performance indicators.
– How do you define success?
– What does success look like?
– Note: KPIs are dynamic, not static. Measure what matters NOW.
© 2013 The Karen Martin Group, Inc.
12. Reflect & share learning (ADJUST)
• Study and discuss process.
– What obstacles did the team confront?
– How did they overcome them?
– What organizational discoveries did they make?
– What needs to be adjusted going forward?
– What went well?
– What could been better?
• Hold “Grand Rounds” or Improvement Briefings.
• Physically post story boards and results.
• Post on Intranet home page.
23
© 2013 The Karen Martin Group, Inc.
Requirements for Excellence
in ANY Endeavor
24
Shingo award-winning The Outstanding Organization
www.bit.ly/TOObk
Practice vs. Performance
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Athletes Businesses
Train
Perform
25
Train
90%
Train
1%
Perform
99%
Perform
10%
Jim Loehr & Tony Schwartz, The Power of Full Engagement
© 2013 The Karen Martin Group, Inc.
26
Problem-solving
capabilities developed?
Which target condition do you
want to achieve?
OR
Problems solved?
© 2013 The Karen Martin Group, Inc.
Attaining Mastery
27
From The Outstanding Organization, p. 115
© 2013 The Karen Martin Group, Inc.
Improvement Coaching
28
REFLECTIVE DEVELOPMENT DIRECTIVE DEVELOPMENT
From The Outstanding Organization, p. 117
© 2013 The Karen Martin Group, Inc.
© 2013 The Karen Martin Group, Inc.
Value
Stream
Mapping
Strategy
Deployment
(Hoshin Kanri)
or A3
Daily Improvement, Projects,
& Rapid Improvement Events
Building PDSA Capabilities
© 2013 The Karen Martin Group, Inc.
Annual Hoshin Planning
(Strategy Deployment)
• Builds consensus
• Creates organizational focus on what matters most
© 2013 The Karen Martin Group, Inc.
Tying Improvement to Overarching
Business Goals
32
© 2013 The Karen Martin Group, Inc.
Classic Strategy Deployment (Hoshin Kanri)
X-Matrix
© 2013 The Karen Martin Group, Inc.
34
1. Increase sales 5%.
3. Achieve 10% profit.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Ops HR Bob Fin PE Pario
COM
Direct
CDs /
AMs
PD
Rec
PD
Mgmt
BMD SWS
2
3,500 units sold by 12/31/2013 through all channels
(approx. $700K)
X X X X X X X X X X X X Bob Dana 2 3 3 3 2 3 3 1 1 3 3 1 3
11 Develop & deliver training to top 50 Dealers X X X X X X Bob Rex/Tim 3 3 3
21 Revised course materials by 6/30/2013 X X X Bob Josh R? 2 3 3 2 2
5
Education: 1 school district spec'd/underperforming
COM distributor (25) by 12/31 valued at min $35K each
X X X X X X X X X X X X Howard Michael S 1 3 2 3 3
8
10 new dealers on board (net) ($500K per dealer this
year)
X X X X X X X X X X X X Howard Mike B 2 3
9
5 new distributors bringing $200K annual rev (& 5
terminated)
X X X X X X X X X X X X Howard Howard 1 1 1 2 3
17 10 projects spec'd by 12/31; $300K rev by 12/31 X X X X X X X X X X Howard Dana 1 3 3 3
29 20 by year-end X X X X X X X X X X X X Howard Mark H 2 3 3 3
32 TBD X X X Howard Howard
33 TBD X X X X X X X X X Howard Howard
10
Useful reporting and metrics are established and in
place
X X Jim Randall 3 1 1 1 1 1 1
30 TBD X X X X X Jim Josh 3
31 TBD X X X X X X Jim Josh 1 1 1 3 1 1 1 1 1 1 1 1 1 1
25 TBD Jim Shannon 3 3 1 1 1 1 1
26 System 7.0's in place X X X Jim Randall 3 2 1 2 1
15
100% accurate payroll; 100% management satisfaction
at April mgmt. meeting
X X X Josh Phyllis 1 3
20
Internet task list is simplified and streamlined for
PDs then plan is rolled out to PDs
X X X X Michael M Michael M 2 3 2 3
22
Design Calculator is updated successfully and rolled
out
X X X Neall Matt D 3 1 1 3 2 2 3
24 Competitive Analysis complete and distributed for use X X X Neall Dana 2 3 3 3 3 3 3
1 Design changed to solve delam issue long-term X X X X X Susan David R 3 2 3
12
30 parts sourced in U.S.; completed plan for managing
China-sourced parts
X X X X X X Susan Shannon 3 3 2 2
13
Warehouse laid out; kanban revised; Syspro
implemented
X X X Susan Shannon 3
14 Lay out complete; equipment installed X X X Susan David R 3 3
X = Planned
2013 Priorities
2013 Goals & Objectives
4. Improve morale (metric TBD).
2. Achieve 50% gross margin. Created: 01-14-13
Revised:
Level of Effort/Involvement Required
Priority Goal or Measurable Objective Exec Owner
Plan review dates:
Tactical
Owner
● = Actual
< Company Name >
Contentremovedforconfidentiality
Modified Strategy Deployment Annual Plan:
Regular Reviews Improve Focus & Drive Results
A3 Management
© 2013 The Karen Martin Group, Inc.
What is A3?
• The core of Toyota’s renowned management system.
• A structured method for applying the PDCA (plan-do-
check-act) approach to problem solving.
• International designation for 11 x 17” paper.
36
© 2013 The Karen Martin Group, Inc.
Common Components of the A3 Report
37
Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Study, Adjust
Background
Current Condition
Countermeasures / Implementation Plan
Effect Confirmation
Follow-up Actions
• What?
• Who?
• When?
• Where? (if relevant)
Target Condition / Measurable Objectives
• Diagram of desired state
• Measurable targets – how will we know that the
improvement has been successful?
• Diagram of current situation or process
• What about it is not ideal?
• Extent of the problem (metrics)
• Problem statement
• Context - Why is this a problem? How large is the
problem?
Root Cause & Gap Analysis
• Graphical depiction of the most likely direct (root)
causes
• What measurable results did the solution
achieve (or will be measured to verify
effectiveness)?
• Who’s responsible for ongoing measurement?
• Where else in the organization can this solution
be applied?
• How will the improved state be standardized
and communicated?
© 2013 The Karen Martin Group, Inc.
Value Stream Mapping:
Using PDSA to realize the future state
© 2013 The Karen Martin Group, Inc.
Kaizen Event – Definition
A two- to five-day focused improvement
activity during which a sequestered, cross-
functional team designs and implements
improvements to a defined process or work
area, generating rapid results and learned
behavior.
Karen Martin & Mike Osterling
The Kaizen Event Planner
39
© 2013 The Karen Martin Group, Inc.
5-Day Kaizen Event: Typical Structure
Day 1 & 2
(Plan)
Day 3 & 4
(Do, Study)
Day 5
(Study, Adjust)
40
Kick-off
Analyze current state
Perform root cause analysis
Design future state
Interim briefing
Design & test improvements
Obtain buy-in
Interim briefing
Finalize improvements
Train process workers & stakeholders
Present results
CELEBRATE!
© 2013 The Karen Martin Group, Inc.
Every person in the
organization needs to have
proficiency in PDSA.
In addition, managers need
proficiency in improvement
coaching.
© 2013 The Karen Martin Group, Inc.
True Continuous Improvement
CHECK
CHECK
CHECK
ACT
ACT
ACT
© 2013 The Karen Martin Group, Inc.
“When PDSA is used as it was
intended, there is no separation
between improving and managing
work—they are part of the same
cycle.”
The Outstanding Organization, p. 120
© 2013 The Karen Martin Group, Inc.
Karen Martin, President
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
44
For Further Questions
Blog & newsletter: www.ksmartin.com/subscribe

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Plan-Do-Study-Adjust: A Deep Dive

  • 1. Plan-Do-Study-Adjust (PDSA): A Deep Dive Webinar December 3, 2013
  • 2. © 2013 The Karen Martin Group, Inc. Welcome! • Argentina • Australia • Canada • Denmark • France • Great Britain • Ireland • Latvia • Malaysia • Netherlands • New Zealand • Qatar • Russia • Saudi Arabia • Sweden • United States www.ksmartin.com/subscribe
  • 3. © 2013 The Karen Martin Group, Inc.  Coach / Facilitator / Consultant / Trainer: Lead Lean transformations & develop people across all industries.  Teacher: University of California, San Diego  Author & Speaker: Karen Martin, President The Karen Martin Group, Inc. www.ksmartin.com 3 2013 Shingo Prize winner!
  • 4. © 2013 The Karen Martin Group, Inc. 4 Hot off the press! www.bit.ly/VSMbk
  • 5. © 2013 The Karen Martin Group, Inc. Upcoming Webinars
  • 6. © 2013 The Karen Martin Group, Inc. After the webinar… • All recordings are available on: – www.vimeo.com/karenmartingroup – www.youtube.com/karenmartingroup – www.slideshare.net/karenmartingroup – www.ksmartin.com/webinars • The materials are available on: – www.slideshare.net/karenmartingroup
  • 7. © 2013 The Karen Martin Group, Inc. First, a little history…
  • 8. © 2013 The Karen Martin Group, Inc. Two Great Minds 8 W. Edwards Deming (1900-1993) Walter Shewhart (1891-1967)
  • 9. © 2013 The Karen Martin Group, Inc. 9 Develop hypothesis Conduct experiment Measure results Refine Standardize Stabilize
  • 10. © 2013 The Karen Martin Group, Inc. 10 Detailed Steps 1. Define and break down the problem. 2. Grasp the current condition. 3. Set a target condition. 4. Conduct root cause & gap analysis. 5. Identify potential countermeasures. 6. Develop & test countermeasure(s) 7. Refine and finalize countermeasure(s). 8. Implement countermeasure(s). Study Evaluate Results 9. Measure process performance. 10. Refine, standardize, & stabilize the process. 11. Monitor process performance. 12. Reflect & share learning. Adjust Do Clarifying the PDSA Cycle Plan Develop Hypothesis Conduct Experiment Refine Standardize Stabilize Phase Continuous Improvement New Problem 50-80% of the total time Study Adjust
  • 11. © 2013 The Karen Martin Group, Inc. 1. Define and break down the problem (PLAN) 11 • What’s the problem? • What is NOT the problem? • What are the variables? • What should we focus on first?
  • 12. © 2013 The Karen Martin Group, Inc. 2. Grasp the Current Condition (PLAN) 12
  • 13. © 2013 The Karen Martin Group, Inc. 3. Set a Target Condition (PLAN) What SHOULD it look like? How SHOULD it perform? How does it need to perform? How do you want it to perform? 13
  • 14. © 2013 The Karen Martin Group, Inc. 4. Conduct root cause & gap analysis (PLAN) 14 CauseCause--andand--Effect DiagramEffect Diagram Machine Measurement Environment People Material / Info Method Budgets Submitted Late Lack of experience Time availability No sense of import No stnd spread sheet Email vs. FedEx No standard work Input rec’d late Forecast in other system Manual vs. PC System avail. No milestones $ vs. units Weather delays Dispersed sales force Changing schedule Machine Measurement Environment People Material / Info Method Budgets Submitted Late Lack of experience Time availability No sense of import No stnd spread sheet Email vs. FedEx No standard work Input rec’d late Forecast in other system Manual vs. PC System avail. No milestones $ vs. units Weather delays Dispersed sales force Changing schedule 5 Why’s Why? Why? Why? Why? Why? Check Sheets Quantify Occurrences |Equipment failure |||||||||||||Changing customer requirements w/ no adjustment to expected delivery ||||||||||Order entry error |||Staffing/absenteeism |||||Quality issue requiring rework |||||||Material shortage TallyReason |Equipment failure |||||||||||||Changing customer requirements w/ no adjustment to expected delivery ||||||||||Order entry error |||Staffing/absenteeism |||||Quality issue requiring rework |||||||Material shortage TallyReason
  • 15. © 2013 The Karen Martin Group, Inc. 5. Identify potential countermeasures (DO) • The clearer you are about the problem, current state, and root cause, the more obvious the countermeasures become. • Brainstorming may or may not work. 15
  • 16. © 2013 The Karen Martin Group, Inc. 6. Develop & test countermeasure(s) (DO) • Test “live” if possible. • Testing may be merely getting feedback from non- core team members. • Use rapid iterative cycles (mini-PDSA cycles). 16
  • 17. © 2013 The Karen Martin Group, Inc. 7. Refine & finalize countermeasure(s) (DO) • Document the new standard work. – Process maps (occasionally, value stream maps will do the trick) – Flow charts – Check lists – Concise, visual work instructions – Etc. 17
  • 18. © 2013 The Karen Martin Group, Inc. 8. Implement countermeasure(s) (DO) • Training! Training! Training! – Include why & WIIFM – Hands on, when possible – If there’s a gap between implementation and people engaging with the new process, you must retrain. • DO NOT MERELY COMMUNICATE BY EMAIL. 18
  • 19. © 2013 The Karen Martin Group, Inc. 9. Measure process performance (STUDY) 19 • OBSERVE, TALK, LISTEN • Measure performance against target condition. • What obstacles to success remain? – How can you remove them?
  • 20. © 2013 The Karen Martin Group, Inc. 10. Refine, standardize & stabilize the process (ADJUST) • Retrain if the process is adjusted. 20
  • 21. © 2013 The Karen Martin Group, Inc. 10. Refine, standardize & stabilize the process (ADJUST) - continued 21
  • 22. © 2013 The Karen Martin Group, Inc. 11. Monitor process performance (ADJUST) 22 • Requires a Process Owner. • Define & monitor 2-5 key performance indicators. – How do you define success? – What does success look like? – Note: KPIs are dynamic, not static. Measure what matters NOW.
  • 23. © 2013 The Karen Martin Group, Inc. 12. Reflect & share learning (ADJUST) • Study and discuss process. – What obstacles did the team confront? – How did they overcome them? – What organizational discoveries did they make? – What needs to be adjusted going forward? – What went well? – What could been better? • Hold “Grand Rounds” or Improvement Briefings. • Physically post story boards and results. • Post on Intranet home page. 23
  • 24. © 2013 The Karen Martin Group, Inc. Requirements for Excellence in ANY Endeavor 24 Shingo award-winning The Outstanding Organization www.bit.ly/TOObk
  • 25. Practice vs. Performance 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Athletes Businesses Train Perform 25 Train 90% Train 1% Perform 99% Perform 10% Jim Loehr & Tony Schwartz, The Power of Full Engagement
  • 26. © 2013 The Karen Martin Group, Inc. 26 Problem-solving capabilities developed? Which target condition do you want to achieve? OR Problems solved?
  • 27. © 2013 The Karen Martin Group, Inc. Attaining Mastery 27 From The Outstanding Organization, p. 115
  • 28. © 2013 The Karen Martin Group, Inc. Improvement Coaching 28 REFLECTIVE DEVELOPMENT DIRECTIVE DEVELOPMENT From The Outstanding Organization, p. 117
  • 29. © 2013 The Karen Martin Group, Inc.
  • 30. © 2013 The Karen Martin Group, Inc. Value Stream Mapping Strategy Deployment (Hoshin Kanri) or A3 Daily Improvement, Projects, & Rapid Improvement Events Building PDSA Capabilities
  • 31. © 2013 The Karen Martin Group, Inc. Annual Hoshin Planning (Strategy Deployment) • Builds consensus • Creates organizational focus on what matters most
  • 32. © 2013 The Karen Martin Group, Inc. Tying Improvement to Overarching Business Goals 32
  • 33. © 2013 The Karen Martin Group, Inc. Classic Strategy Deployment (Hoshin Kanri) X-Matrix
  • 34. © 2013 The Karen Martin Group, Inc. 34 1. Increase sales 5%. 3. Achieve 10% profit. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Ops HR Bob Fin PE Pario COM Direct CDs / AMs PD Rec PD Mgmt BMD SWS 2 3,500 units sold by 12/31/2013 through all channels (approx. $700K) X X X X X X X X X X X X Bob Dana 2 3 3 3 2 3 3 1 1 3 3 1 3 11 Develop & deliver training to top 50 Dealers X X X X X X Bob Rex/Tim 3 3 3 21 Revised course materials by 6/30/2013 X X X Bob Josh R? 2 3 3 2 2 5 Education: 1 school district spec'd/underperforming COM distributor (25) by 12/31 valued at min $35K each X X X X X X X X X X X X Howard Michael S 1 3 2 3 3 8 10 new dealers on board (net) ($500K per dealer this year) X X X X X X X X X X X X Howard Mike B 2 3 9 5 new distributors bringing $200K annual rev (& 5 terminated) X X X X X X X X X X X X Howard Howard 1 1 1 2 3 17 10 projects spec'd by 12/31; $300K rev by 12/31 X X X X X X X X X X Howard Dana 1 3 3 3 29 20 by year-end X X X X X X X X X X X X Howard Mark H 2 3 3 3 32 TBD X X X Howard Howard 33 TBD X X X X X X X X X Howard Howard 10 Useful reporting and metrics are established and in place X X Jim Randall 3 1 1 1 1 1 1 30 TBD X X X X X Jim Josh 3 31 TBD X X X X X X Jim Josh 1 1 1 3 1 1 1 1 1 1 1 1 1 1 25 TBD Jim Shannon 3 3 1 1 1 1 1 26 System 7.0's in place X X X Jim Randall 3 2 1 2 1 15 100% accurate payroll; 100% management satisfaction at April mgmt. meeting X X X Josh Phyllis 1 3 20 Internet task list is simplified and streamlined for PDs then plan is rolled out to PDs X X X X Michael M Michael M 2 3 2 3 22 Design Calculator is updated successfully and rolled out X X X Neall Matt D 3 1 1 3 2 2 3 24 Competitive Analysis complete and distributed for use X X X Neall Dana 2 3 3 3 3 3 3 1 Design changed to solve delam issue long-term X X X X X Susan David R 3 2 3 12 30 parts sourced in U.S.; completed plan for managing China-sourced parts X X X X X X Susan Shannon 3 3 2 2 13 Warehouse laid out; kanban revised; Syspro implemented X X X Susan Shannon 3 14 Lay out complete; equipment installed X X X Susan David R 3 3 X = Planned 2013 Priorities 2013 Goals & Objectives 4. Improve morale (metric TBD). 2. Achieve 50% gross margin. Created: 01-14-13 Revised: Level of Effort/Involvement Required Priority Goal or Measurable Objective Exec Owner Plan review dates: Tactical Owner ● = Actual < Company Name > Contentremovedforconfidentiality Modified Strategy Deployment Annual Plan: Regular Reviews Improve Focus & Drive Results
  • 36. © 2013 The Karen Martin Group, Inc. What is A3? • The core of Toyota’s renowned management system. • A structured method for applying the PDCA (plan-do- check-act) approach to problem solving. • International designation for 11 x 17” paper. 36
  • 37. © 2013 The Karen Martin Group, Inc. Common Components of the A3 Report 37 Theme: “What is our area of focus?” Owner: Person accountable for results. Plan Do, Study, Adjust Background Current Condition Countermeasures / Implementation Plan Effect Confirmation Follow-up Actions • What? • Who? • When? • Where? (if relevant) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) • Problem statement • Context - Why is this a problem? How large is the problem? Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
  • 38. © 2013 The Karen Martin Group, Inc. Value Stream Mapping: Using PDSA to realize the future state
  • 39. © 2013 The Karen Martin Group, Inc. Kaizen Event – Definition A two- to five-day focused improvement activity during which a sequestered, cross- functional team designs and implements improvements to a defined process or work area, generating rapid results and learned behavior. Karen Martin & Mike Osterling The Kaizen Event Planner 39
  • 40. © 2013 The Karen Martin Group, Inc. 5-Day Kaizen Event: Typical Structure Day 1 & 2 (Plan) Day 3 & 4 (Do, Study) Day 5 (Study, Adjust) 40 Kick-off Analyze current state Perform root cause analysis Design future state Interim briefing Design & test improvements Obtain buy-in Interim briefing Finalize improvements Train process workers & stakeholders Present results CELEBRATE!
  • 41. © 2013 The Karen Martin Group, Inc. Every person in the organization needs to have proficiency in PDSA. In addition, managers need proficiency in improvement coaching.
  • 42. © 2013 The Karen Martin Group, Inc. True Continuous Improvement CHECK CHECK CHECK ACT ACT ACT
  • 43. © 2013 The Karen Martin Group, Inc. “When PDSA is used as it was intended, there is no separation between improving and managing work—they are part of the same cycle.” The Outstanding Organization, p. 120
  • 44. © 2013 The Karen Martin Group, Inc. Karen Martin, President 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com 44 For Further Questions Blog & newsletter: www.ksmartin.com/subscribe