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Toyota’s A3 Form: A Tool for Innovating 

12/30/2015

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The A3 Form is an excellent tool for screening and managing a portfolio of projects. These projects can range from small improvements or supporting projects to major innovations. In effect, the A3 Form is a 2-page summary business plan that outlines the key components of an opportunity in a format that is easy to read and review. It can also be adapted to a computer database for searching, archiving and secured sharing.

The A3 form and the related A3 problem solving and continuous improvement methodology was first used by Toyota in the 1960’s and still used today. It was based on W. Edwards Deming’s teachings in Japan after World War II including his Plan-Do-Check-Act (PDCA) process, and brought to North America in the 1980’s. The A3 Form is named after the European paper size equivalent of two standard size pieces of paper i.e. about 11”x17”. 

The standard form is comprised of a header and seven sections [split 1-4 (Plan) and then 5, 6, 7 (Do, Act, Check) over two pages] as follows:
    0:   Title: A descriptive title along with the names of the author and manager, the date and          version number is provided.
  1. Background: This section outlines the problem, challenge or opportunity as well as linkages to other projects and supporting documentation. A Pain statement can be employed here.
  2. Current Conditions: Details of the current state including factors such as time, cost and quality are described. The relevant who, what, when, where, how and why of the situation is also described.
  3. Goals/Targets: These are summarized here with a focus on their value-add. What is in and out of scope should also be identified.
  4. Analysis: The gap between the current conditions and the desired future is outlined as well as the root cause(s) and effect(s). This is a critical step to endure the correct problem is being solved, not just the symptoms.
  5. Proposed Countermeasures (or Approaches or Solutions): A number of potential and even complimentary countermeasures should be described in order to highlight the thinking process, the financial impact (cost-benefit-risk) and those affected. This helps open potential dialogue with all stakeholders.
  6. Plan: A Gantt chart outlining the major tasks and milestones, the timing and dependencies, major resources, and the person or persons responsible as well as those needed for support and sign-off works well here.
  7. Followup: A list of activities to complete and metrics to collect in order to endure that the  value generated by this opportunity persists.       

Employing this tool provides a number of benefits:
  • The process behind the development of an A3 Form is as important as the final document. The process involves research, analysis, creativity, communication and collaboration. It is also an iterative process.
  • By completing the form sequentially, it facilitates obtaining a deep understanding of the true,  underlying problem before developing countermeasures (solutions).
  • In limiting the available space of the A3 form, it focuses the author on creating a concise overview that welcomes input from others. It is, of course, recommended that additional more detailed documentation be prepared in support of the project. 
  • By including a heavy dosage of graphics in the form of figures, flow charts, graphs and tables, the A3 Form becomes a form of standardized storyboard making it easily understood, in detail by collaborators, stakeholders and reviewers.
  • Although there is an overall section structure, the format within each section is totally at the discretion of the author making it very flexible. The goal remains to communicate a deep and complete picture of a challenge or opportunity in a concise, logical and readable format. 
  • Often it helps to sketch out initial versions by hand. This facilitates the collection of ideas and the development of useful graphics. If done in pencil, it also permits rapid revision.

References:
  • Shook, John. Toyota’s Secret: The A3 Report. MIT Sloan Management Review, Summer 2009.  http://sloanreview.mit.edu/article/toyotas-secret-the-a3-report/  and http://www.slideshare.net/mdmorin/toyotas-secret-the-a3-report?related=1

Good examples of A3 Forms (from a simple search of the internet):
  • http://blog.crisp.se/2009/09/23/henrikkniberg/1253687880000
  • http://www.slideshare.net/gokhansarpkaya/A3-Management
  • http://www.lean.org/common/display/?o=1103
  • https://www.moresteam.com/lean/a3-report.cfm
  • http://www.slideshare.net/gokhansarpkaya/A3-Management

Further reading:
  • https://en.wikipedia.org/wiki/A3_problem_solving
  • http://www.slideshare.net/5Ssupply/introduction-to-a3-problem-solving
  • http://www.umassmed.edu/uploadedfiles/fmch/faculty_resources/fall11_pelletiera3.pdf
  • http://www.coe.montana.edu/ie/faculty/sobek/a3/report.htm
  • http://www.slideshare.net/KarenMartinGroup/ucsd-class-a3-management-and-root-cause-analysis/28-Sample_A3Target_Condition_Measurable_Objectives
  • http://www.allbusiness.com/why-you-should-use-a3-planning-11747449-1.html
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Duncan Jones, Hexagon Innovating (2015) is licensed under CC BY-NC 4.0.
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  • Home
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