4/19/05 1 A3 Report Writing Toyota’s preferred method of written communication Copied from the Toyota Auburn Hills Training package. For Delphi Use Only

4/19/05 1

A3 Report Writing

Toyota’s preferred method of

written communication

Copied from the Toyota Auburn Hills Training package. For Delphi Use Only.

Delphi Course

#62004527

4/19/05 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

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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.

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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

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Module 1: Toyota Principles

Graspthe

Situation

Plan

DoCheck

ActConfir

m

Countermea

sure

s Investigate

the Problem

Test for

Cause/Effect

Relationship

Look for

Cause

GTS

Practical Problem Solving

PDCA

4/19/05 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

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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

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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


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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

Team Member

Inside Outside

Future

Past

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What is Nemawashi?

“To dig around the root of a tree to prepare for transplanting”

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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

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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

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Toyota CharacteristicsReflects Company’s Vision (Image)

OperatingPrinciples

Stated Philosophy

Underlying Beliefs,Values, AssumptionsGround Level

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Initial Problem Perception(large, vague, complicated problem)

Clarify the Problem

The “Real” Problem

Look for CauseTrack back, go see

Root Cause

Direct Cause Cause Cause Cause Cause

Why?Why?Why?Why?Why?Why?

Grasp theSituation

CauseInvestigation

Basic Cause/EffectInvestigation

Investigation to Root Cause

Countermeasure

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Changes in the Environment+

New Company Goals/Needs=

Grasp the Situation (Root Cause)

Plan

Act Do

Check

Quick Review of PDCA and PPS

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PlanIdentify SituationAnalyze Situation

DORecommendCountermeasuresImplementation

CheckFollow-up

ActionStandardize orStart Again

The Relationship between Process and Proposal

Situation

Target

Countermeasures

Implementation

Follow-up

Theme

Analysis

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Reflection – Module 1

Quick Quiz

AnyQuestions

?

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Quick Quiz – Module 1

1) What are Toyota’s

Operating Principles?

Stated Philosophies?

Underlying Beliefs, Values, Assumptions?

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2) List the 5 steps of Practical Problem Solving

Step 1: _________________________________

Step 2: _________________________________

Step 3: _________________________________

Step 4: _________________________________

Step 5: _________________________________

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3) List the 5 steps of PDCA

Step 1: _________________________________

Step 2: _________________________________

Step 3: _________________________________

Step 4: _________________________________

Step 5: _________________________________

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Module 2: Types of A3s?

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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.

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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 or PROBLEM, or

to communicate the STATUS of, or plans for, a specific goal

7

SITUATION

ANALYSIS

COUNTERMEASURE

PLAN

FOLLOW-UP

THEME OF A3

• 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

SIGNATURE BLOCK

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WHY Use the A3 Format?

BECAUSE AN A3 REPORT...

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1. Tell a Story

2. Flow

3. Simple

4. Follows PDCA or PPS or DPS

5. Based on Facts, Not Opinion

6. Clear and Concise

7. Picture is Worth a Thousand Words (Graphics)

Vital Parts of an A3

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Types of A3/A4s

1) Problem Solving Story

2) Proposal Story

3) Status Report

4) Informational Story

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Types of A3 Reports

P.S.Story

ProposalStory

StatusStory

InfoStory

Report Types

Problem Consciousness

Current Situation

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Tell a Problem Solving StoryWhen:

A plan, goal or standard is not being met.

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Problem Solving StoryTheme (subject)

Background (Why I/We Chose Theme)

Current Situation (Analysis of Problem(s) and Cause(s))

Countermeasures (to address causes(s))

Implementation

Follow-Up (Review/Evaluation Results – Unresolved Problems)

Future Actions(New Countermeasures and/or Standardization)

GraspTheSituation

Plan

Do

Check

Act

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Problem Solving Report StoryTheme:

Answers the question, “What are we trying to do?”

I. Problem Situation

•The Standard•Current Situation• Discrepancy/Extent of the ProblemRationale for picking up problem (importance to business activity, goals and values of the organization)

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:

IV. Countermeasures

(Resulting from Cause Analysis)• Temporary Measure• Long Term Countermeasure

V. Implementation

What Where Who WhenAction to Place Respons- Times, be taken ible person DatesCost

VI. Follow-up

•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?

Signature Block

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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.

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Proposal Story

Title

Background (Existing Value, Expectation, Policy, Goal or Plan)

Current Situation (Analysis of Need(s) and Contributing Conditions)

Recommendations(Cost/Benefits)

Implementation(Details of the Plan)

Follow-Up (Review/Evaluation Results – Unresolved Problems)

GraspTheSituation

Plan

Do

Check

4/19/05 33

Proposal StoryTitle or Theme:

I. Introduction

Basic Concept, Background, or Basic Strategy, andHow it fits into the big picture

II. Proposal

How to deployBasic Concept(Vital Points)

III. Plan

Required Reason for Expected ResponsibilityCondition Required Effect Condition

What/How Why What Who

Cost

IV. Unresolved Issues (optional)

Unresolved issuesHow to overcome obstaclesi.e. How to negotiate with related departments, anticipated problems and resolutions

V. Implementation

How to deploy plan

Schedule/Timeline

Signatures, date

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Proposal StoryTitle (Project)

I. Background & Basic Concept

II. Selection of the Plan

Option A

Option B

X

III. Example of other companies

A __________ B ___________

IV. Contents of the Plan

Timing ________ ________Members ______, _______, __________Cost ________

Curriculum

Expected Effect __________ ( )

V. Implementation Schedule

0

0

Signatures, date

Legend: Preferred Slight risk High Risk X

4/19/05 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

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Status Report StoryTheme:

I. Background

Reason for choosing Theme

III. Implementation

Objectives Activity Achievements Eval- Future expl. uation Problems

IV. Total Effect

Impact to dept/company, expected benefits

V. Future Actions

Unresolved Problems Actions

II. Objectives

Vital points of strategy or policy

X

Signatures, date

Legend: Preferred Slight risk High Risk X

4/19/05 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.

4/19/05 38

Reflection – Module 2

Quick Quiz

AnyQuestions

?

4/19/05 39

Quick Quiz

1) List the 4 basic types of A3s

1: _________________________________________

2: _________________________________________

3: _________________________________________

4: _________________________________________

4/19/05 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?

____________________________________

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Quick Quiz - Proposal Story

I.

Basic Concept, Background, or Basic Strategy, andHow it fits into the big picture

II.

How to deployBasic Concept(Vital Points)

III.

Required Reason for Expected ResponsibilityCondition Required Effect Condition

What/How Why What Who

Cost

IV.

Unresolved issuesHow to overcome obstaclesi.e. How to negotiate with related departments, anticipated problems and resolutions

V.

How to deploy plan

Schedule/Timeline

3) Fill in the title blocks

4/19/05 42

Quick Quiz

4) Name at least two things all A3/A4 reports have in common?

1. _______________________________________

2. _______________________________________

3. _______________________________________

4/19/05 43

Module 3: A3 Vital Points

4/19/05 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

4/19/05 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.

4/19/05 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

4/19/05 47

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

TitleSignature Boxes

Author: Date

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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

Report Title Signature Boxes

4/19/05 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

4/19/05 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.

4/19/05 51

Use of Bulleted Lists

Example:

Less effective:

Due to new vehicle line-off in June, which will run parallel with other vehicle production, it will be necessary to improve the layout and system of operation in our plant.

Better:

• A new vehicle line-off will begin in June• Its production will parallel our current production• Improve the plant layout and operation

4/19/05 52

V. Underlining or Bolding Text

Use underlining or bolding of text to focus attention on key points

Reader should be able to grasp the story by only following the bold information

New Equipment for ’94 Model

Background

New Model start /93

Objectives

Need new equipment

Schedule

Pilot build 1/93

Effects:

Cost $3 million

Future Actions:

Find vendor 6/92

Install12/92

A3 Report WritingConstructive Analysis of A3/A4s

A3 Report WritingChoosing the right chart or graph

4/19/05 55

United Way Funding % Participation as of Jan-03

0

20

40

60

80

100

Eng Finance H.R. Legal Plant Sales Purch

2000 2001 2002 Jan-03

Goal: To increase department participation in contributing to the United Way campaign. Which of the four graphs works best?

United Way Participation

Eng

13%

Finance

12%

H.R.

17%Legal

13%Plant

8%

Sales

18%

Purch

19%


0

20

40

60

80

100


2002 Jan-03

Goal by

May 1

Graph 1 Graph 2

Graph 3 Graph 4


0

20

40

60

80


Jan-03

Goal by

May 1

4/19/05 56

Key Points for Graph Preparation Use charts, graphs, and pictures to visually represent data. Select the data and graph appropriate for your objective. Choose a clear and concise title. Determine how much history should be shown to represent the

trend. Determine the order of each item in the graph. Label the axis (vertical and horizontal units of measure). Include a legend of symbols if applicable. Indicate the data source and date on the graph for easy

reference. Use the appropriate scale (vertical axis). Show standard (GOAL) if possible. Show the exact number for the data points if it does not make

the graph too busy.

4/19/05 57

VI. Charts and GraphsEXAMPLE:

Less Effective:

Cars produced May 28, 1998

White 35; Red 40; Blue 10;

Teal 10; Grey 5; Lt Blue 5

Cars Colors Produced 5/28/98

White

Red

Blue

Teal

Grey

Lt Blue

Better:

4/19/05 58

VII. Check for Overall BalanceHold the paper at arm's length: Is it neat overall (uncluttered)? Is there enough white space within and around boxes? Are the boxes balanced on each side? Is there a good mix of text and graphics?

VIII. Give Report to a Colleague for Comments Can they understand it? Do they recognize the purpose? Is it a strain on their eyes? Did they find any mistakes?

4/19/05 59

• When you don’t know what you’re talking about

• When you’re trying to hide the truth

• When you want to impress your professor

• When you own Xerox stock

• When you wish to create a clerical staff empire

• When you need to fill up your time

• When you get paid by the word

• To combat the “Lonely In-Box Syndrome”

• To put your audience to sleep

When To Use A 50-Page Report

4/19/05 60

Key Points to Take Away

1. The burden is on the subordinate to convince the manager – therefore, must tell a convincing story

2. The manager must educate and lead, but not tell the subordinate what to do, therefore, must ask the right questions

3. A3 is a tool that supports both and helps with the original question, why does lean take so long, why is it so difficult …. This is the missing engine

4. The purpose is to practice developing a convincing story & asking questions

4/19/05 61

WHY Use the A3 Format?

Enhances Logical Thinking - What/How to accomplish goal Enhances Decision-making - All facts thought out &

included Provides Standardized Method of Communication - Is

easy for each department/division to recognize and read Focuses on Problem Solving Activities – 5 Whys used

instead of simply trying to solve the perceived problem Eliminates Waste – Easier to spot errors in thinking Forces you to ask:

– Why do I think we should do this? – Does it make sense?– Will it improve our current process?– Will it address the root cause of the problem?

BECAUSE AN A3 REPORT...

4/19/05 62

VISUALCONTROLS • Because it’s a Standardized Format - Visually "User Friendly"

Ties Into The Delphi DMS and I&CIM Initiatives

ERRORPROOFING

• Concise, Clear Communication• Easier To Spot Defects - less to review

LEAD TIMEREDUCTION

• Promotes Quicker Decision Making - less reading of material

STANDARDIZEDWORK • A3 is a Standardized Approach To Business Communication

• Used To Develop People

• Standardized Format; one type of form used by all

QUICK SET-UP Standardized Format; easy tool; familiar layout

• Eliminates Waste• Lowers Costs• Improves Profits

REDUCTION IN VARIATION

Summary – Benefits of an A3?

A3 Reporting WritingGroup Exercise

Documents

4/19/05 1 A3 Report Writing Toyota’s preferred method of written communication Copied from the Toyota Auburn Hills Training package. For Delphi Use Only