LCI-MidAtlantic A3 Reports and Developing Lean Champions … · A3 Reports and Developing Lean...

A3 Reports and Developing Lean Champions2-Topic Workshop over dinner May 23, 2013

LCI – Mid-Atlantic Core Group

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Agenda

A3 Reports & Developing Lean Champions2-Topic workshop over dinner

at the Eastern PA Chapter of ABC Associated Builders and Contractors Inc. 430 W. Germantown Pike, East Norriton, PA 19403

Facilitated by Tom Reed & Kevin Gausch from Henkels & McCoy

Tom Reed MBA CMQ/OE, Henkels & McCoy, Blue Bell PATom has 6 years experience as Corporate Manager of Continuous Improvement & Quality and is also project manager of Henkels & McCoy's Operational Excellence steering committee. Tom works broadly with operational leadership in improving processes and work execution aligned to company/ line-of-business/ strategic business plans. Tom also worked for fifteen years inside Ford Motor Company and parts making spin-off company, Visteon.

Kevin Gausch LSSBB, Henkels & McCoy, Plymouth Meeting PAKevin has 6 years experience leading enterprise-wide rollout of LCI’s Last Planner™ and strategic business planning in low voltage cabling and wireless infrastructure properties.

Agenda

Introductions & Getting to Know One Another 4:00 – 4:15

A3 Reports 4:15 – 5:45

Kevin- Explain briefly what an A3 Report is and how it is used in context to both strategy deployment and alternatively in context to construction projects

Tom- Connect the use of A3 Reports to other strong bodies of knowledge on gaining real ROI from improvement efforts

What If Scenario- think specifically how A3 Reports might be useful in advancing a theme from a recent CII and CMAA alliance announcement "Best Practices and Best Practitioners" to kick-start and manage an endeavor to adopt and apply some recognized industry best practices.

Agenda

Developing Lean Champions 5:45 – 6:30

Reach into the collective experience in the room. Facilitate a brainstorming session on educational/learning tactics--what works well based on experience in the room-- and what may seem easy but not get traction-- in developing Lean Champions in your company.

Key Takeaways & Event feedback 6:30-6:40Sandwiches and Networking 6:40 – 7:00

Necessary Elements

• Underlying principles

• Vision of the future

• Standard processes

• Supporting tools

PDCA

A3

Topics Covered

True North

PDCA

A3 Tool

Different Types of A3s

True North/Vision

• Point on the horizon• The ideal or perfection• Unattainable but something always to strive for• Without this you risk sub-optimization• Not a bottom line or top line metric but a description of the

future

• Examples: • Zero defects• 1 piece flow• 0 Inventory

• Provides a direction to point your compass when developing strategy and implementing improvements

PDCA Process

State a hypothesis“If I do x, y will happen”

Test your hypothesisDo x

Measure the resultsy2-y1 = Learning

Adjust your hypothesis based on what you learned

Repeat

Ideal vs Real

Ideal Unfortunate Reality

Plan

• Define the problem and how solving it will get you closer to your true north

• Visual or graphical depiction of the current state of the process to be improved

• Establish a baseline to quantify the performance of the current process

• Set your improvement goal

• Identify the root cause of the reasons for the gap between current state and the goal

Plan

Do

• Create an action plan to eliminate root cause

• Associate all actions directly with a root cause

• Assign an owner and expected completion date

• Have representatives from each step of the value stream

Check (Study)

• Evaluate the change in the process after implementing countermeasures

• Should be a correlation between your activities and the change in baseline

• Correlation vs. causation – Beware of the 3rd variable

Adjust

• Learn from what you did

• If you followed your plan and met your goal then implement on a wider scale

• If you followed your plan and did not achieve your goal, you didn’t understand the root cause

• If you met your goal and didn’t follow your plan, you didn’t understand the root cause

• Reevaluate your root causes, develop a new plan and try again

A3 Tool

• A tool to assist the user to execute the PDCA process

• Simple form to communicate how to bridge a gap in desired performance, execute a strategy or gain buy in for a proposed initiative

• Requires the owner to develop a deep understanding of the situation being addressed and be able to communicate it on an 11x17 piece of paper

• 5S communication

• An opportunity to mentor and learn

Typical A3 ReportPlanDo, Check, Adjust

Typical A3 Report

Background

• Provide a timeframe for the problem• How it relates to the true north• Used as motivation to explain why the

project is worth doing• Explains the consequences of not doing

the project• More generic than the current condition

but contains the same elements• Order of magnitude

Current Condition

• Provide the reader with a simple overview of the critical elements the current process

• Demonstrate problem in quantifiable terms

• Do not tell the answer to the problem• State only verified data, preferably

observed first hand and verified by past performance

• Shows where the problem is, not why• Keep it visual – Graphs and Charts• Focus on the system not the people

Goal

Answers two fundamental questions• How will we know that the project is

successful at the end of implementation?• What standard or basis of comparison will be

used

May be multiple metrics depending on complexity of the project

Keep it SMART

Analysis

Countermeasures

Suspected Cause

Action Item Responsible Due Result

Bins too big Purchase bins for smaller pieces

Steve T. 12/01 Complete

No standard materialhandling system

Implement pull system

Joe B. 1/11 Process developed, rolled out in a week

No visual indicator of low inventory

Implement kanban for truck stock

Steve T. 1/11 Half of trucks are complete

No standard organization for trucks

5S all trucks Jill R. 2/1 Complete

Technician too loud in agent office

Hold etiquette training Rob K. 3/1/1 50% complete

Sub didn’t have job on schedule

Confirm ETA’s 48 hrs in advance

Amanda S. 3/1 Complete

Effect Confirmation

• Verify effectiveness of action items taken• Use the same standard listed in goals step• Visually represent effectiveness

Follow Up

• What more needs to be done based on what was learned throughout the process?

• What must be done to ensure countermeasures are sustained?

• What was discovered to be important to address but outside the scope of the project?

• How are you going to roll out improvements on a larger scale?

Finished Example

Types of A3s

Problem Solving – improves process performance problemsProposal – Used to gain buy in for higher level initiativesAnnual Strategic Business Plan A3 – Sets strategic direction of the company and business unit

All 3 use the PDCA process to align an organizations activities with achievement of its objectives

A3 Strategy Alignment

A3 Reports- connections to Other Bodies of Knowledge

Six Sigma & Lean Six Sigma management strategies

ASQ International Team Excellence Awardcriteria

IPQC – PEX Network Process Excellence Awardcriteria

A3 Report Use Case content found within www.leanconstruction.org; LCI Annual Congress, etc.

A3 Reports- connections to Lean Six Sigma

A3 Reports- connections to ASQ Int’l Team Excellence Award

IPQC – PEX Networks Process Excellence Award typical criteria

Delivering the benefitsKPI metricsPlan, Do, Review against the metricsToll gateSchedule and resource managementTraining programTool usage

Creating and environment for change

Leadership teamChampion influence and engagementCommunication of strategyCritical massSustainabilityAutonomy

Results

VisionStrategyProject selection and alignmentDiversity of projectsInnovation

www.processexcellencenetwork.com/awards/

IPQC – PEX Networks Process Excellence Award N. Amer. Winner 2013

Page 13 of 21

www.processexcellencenetwork.com/awards/

A3 Reports- connections to Lean Construction Institute (LCI)

A3 Report Use Case content found within www.leanconstruction.org; LCI Annual Congress, etc.

Let’s Survey today’s Audience…

i.e., Target Value Design?Choosing by Advantages?Problems, Projects, Strategy Deployment?

A3 Reports- connections to Lean Construction Institute (LCI)

Recent LCI Conference Presentations – Referencing A3 Reports

14th Annual Lean Construction Congress, Arlington, VA

Seed, Bill, UHS. “Owner Perspective (includes content re Temecula IFOA).” Lean Construction Institute. Presented October 10, 2012. http://www.leanconstruction.org/calendar/123/19-14th-Annual-Lean-Construction-Congress-Arlington-VA/

Beikmann, Bernita, HKS et. al. “Lean Basic Principles – Team Educations.” Lean Construction Institute. Presented October 10, 2012. http://www.leanconstruction.org/calendar/123/19-14th-Annual-Lean-Construction-Congress-Arlington-VA/

9th Lean Construction Institute Lean Design Forum, St. Louis, MO. Virtual Design & Construction Panel, Moderated by Dean Reed, DPR

Migliori, Ron E., Buehler & Buehler Structural Engineers, Inc. “Leveraging Virtual Design and Construction for Lean Project Delivery through Integrated Steel Design.” June 18-19, 2009. http://www.leanconstruction.org/calendar/123/17-9th-LCI-P2SL-Design-Forum-St-Louis/

Sargent, Zach, Superior Air Handling and Bryan Johnson, Capital Engineering Consultants, Inc., “Mechanical Systems Virtual Design and Construction.” June 18-19, 2009. http://www.leanconstruction.org/calendar/123/17-9th-LCI-P2SL-Design-Forum-St-Louis/

Migliori, Ron, Buehler & Buehler et. al. “VDC for Lean Project Delivery A3s.” June 18-19, 2009. http://www.leanconstruction.org/calendar/123/17-9th-LCI-P2SL-Design-Forum-St-Louis/

Agenda

A3 Reports - Attendee Challenge

What If Scenario- think specifically how A3 Reports might be useful in advancing a theme from a recent CII and CMAA alliance announcement "Best Practices and Best Practitioners" to kick-start and manage an endeavor to adopt and apply some recognized industry best practices.

A3 Reports Attendee Challenge- Background

In January 2010, CMAA and the Construction Industry Institute announced a new collaboration designed to combine CII's tested, validated Best Practices with CMAA's CM Standards of Practice and the Certified Construction Manager credential – a combination summed up in the alliance's theme, "Best Practices – Best Practitioners."

In their Memorandum of Understanding, CII and CMAA said the goal of their initiative was to "improve delivery of capital facilities in all settings by promoting the professional practice of Construction and Program Management in conjunction with the broadest possible application of recognized industry Best Practices."

CMAA President and CEO Bruce D'Agostino comments, "The CMAA/CII alliance has already yielded important industry benefits by forging a closer link between CII, with its emphasis on organizational effectiveness, and CMAA, which stresses individual excellence and professionalism. Our two organizations have gotten off to a fast start and made major strides in just one year. The outlook for the future is bright."

CMAA’s Certified Construction Manager

CII Best Practices

CII Best Practices

Reference:

From the CII bookstore:RS254-1 – Best Practices in Quality Management for the Capital Facilities Delivery Industry

CII Best Practices

A3 Reports Attendee challenge- What If

WHAT IF you recently obtained a CM certification from CMAA, your company was a member of CII, and your VP asked you to kick-start and manage an endeavor to adopt and apply the Quality best practices model from CII to enhance effectiveness in delivery of projects.

This is just one of many scenarios on use of A3 Reports to gain real ROI from improvement efforts.

Agenda

Developing Lean Champions 5:45 – 6:30

Reach into the collective experience in the room. Facilitate a brainstorming session on educational/learning tactics--what works well based on experience in the room-- and what may seem easy but not get traction-- in developing Lean Champions in your company.

Key Takeaways & Event feedback 6:30-6:40Sandwiches and Networking 6:40 – 7:00

Lean ChampionsConsider this description:

“How lean is inculcated within a construction firm can vary based on many factors; however, converting to Lean is most effectively driven by motivated leaders within an organization, so-called Lean Construction Champions. This is the person, or persons, who will design and implement a lean transformation strategy within an organization.”

Lean ChampionsConsider this description:

“How lean is inculcated within a construction firm can vary based on many factors; however, converting to Lean is most effectively driven by motivated leaders within an organization, so-called Lean Construction Champions. This is the person, or persons, who will design and implement a lean transformation strategy within an organization.”

Chain of Command

PMCMTeam

Developing Lean ChampionsNot the Journey itself That’s another topic

Developing Lean ChampionsAttendee thoughts captured…

What works well in developing Lean Champions Comments from experience in the room today–

Work with consultants the first couple of years, then let go, internalize

Get true leaders on board, supporting-- Identify those with interest and having a wide circle of influence

Cultivate people who like to do Lean, understand the value, and recognize the importance; often, those people emerge during overview training

Early Success / Pilots- generate enthusiasm



Don’t over do the Lean Overviews-- get started

Take “champions” to actual problems to solve as perceived by the “targets” CM, PM, Teams

A defining moment can help (some say, it is required); i.e., burning platform, a nightmare project- paints contrast- there’s got to be a better way

Start slowly; this is not a 0 – 60 MPH issues



Need a strategy around maintaining– Momentum is good, but when you let off steam it goes

Take inventory of deployment through People, not just deployment through Projects

Identify future leaders to instill early on

Join the LCI Mid-Atlantic community of practice


What may not get traction in developing Lean Champions Comments from experience in the room today–

Absence of leadership support = failure

Training quota’s-- Those “available-to-get-trained” often return to supervision who haven’t been trained

Some people- In Lean transition- do not fit or align with new “place”; some in our audience reported having to let a few go

Facilitator’s List of Acknowledgements & Recommended Viewings

Slide Presentations and Recorded Webinars

Womack, James et. al. “Managing to Learn Part 2-Conversations with Lean Leaders About the Real Impact of the A3 Management Process.” LEI Webinar: Originally presented October-November 2008.

http://www.lean.org/Events/WebinarHome.cfm

Womack, James et. al. “Managing to Learn Part 1- How Lean Leaders Create Productive Problem Solvers.” LEI Webinar: Originally presented October-November 2008.


Pascal, Dennis. “Strategy Deployment-What is it? Why should I care?” LEI Webinar: Originally presented January 2007.


Hemrick, Bob, Director, DTE Energy Continuous Improvement Strategy Group. “DTE Energy PEX Award Submission-Best Process Improvement Program.” November 16, 2012.

http://www.offshore-windpower-substations.com/media/6627/6553.pdf

Process Excellence Network (PEX). “Program Award Winner 2013: DTE Energy's CI Journey of Learning.”PEX Podcast: March 13, 2013.

http://www.processexcellencenetwork.com/process-improvement-case-studies/white-papers/award-winning-process-improvement-program-at-dte-e/

Facilitator’s List of Acknowledgements & Recommended Viewings

LCI Conference Presentations

14th Annual Lean Construction Congress, Arlington, VA

Seed, Bill, UHS. “Owner Perspective (includes content re Temecula IFOA).” Lean Construction Institute. Presented October 10, 2012. http://www.leanconstruction.org/calendar/123/19-14th-Annual-Lean-Construction-Congress-Arlington-VA/

Beikmann, Bernita, HKS et. al. “Lean Basic Principles – Team Educations.” Lean Construction Institute. Presented October 10, 2012. http://www.leanconstruction.org/calendar/123/19-14th-Annual-Lean-Construction-Congress-Arlington-VA/

9th Lean Construction Institute Lean Design Forum, St. Louis, MO. Virtual Design & Construction Panel, Moderated by Dean Reed, DPR

Migliori, Ron E., Buehler & Buehler Structural Engineers, Inc. “Leveraging Virtual Design and Construction for Lean Project Delivery through Integrated Steel Design.” June 18-19, 2009. http://www.leanconstruction.org/calendar/123/17-9th-LCI-P2SL-Design-Forum-St-Louis/

Sargent, Zach, Superior Air Handling and Bryan Johnson, Capital Engineering Consultants, Inc., “Mechanical Systems Virtual Design and Construction.” June 18-19, 2009. http://www.leanconstruction.org/calendar/123/17-9th-LCI-P2SL-Design-Forum-St-Louis/

Migliori, Ron, Buehler & Buehler et. al. “VDC for Lean Project Delivery A3s.” June 18-19, 2009. http://www.leanconstruction.org/calendar/123/17-9th-LCI-P2SL-Design-Forum-St-Louis/

Facilitator’s List of Acknowledgements & Recommended Readings

Articles/PapersSchook, John. “Toyota’s Secret: The A3 Report.” MIT Sloan Management Review, Summer 2009, Vol. 50 No.

4, Reprint No. 50408, 29-34. http://www.thequalityportal.com/notes/A3Shook.pdf

Butts, John W. “Lean Construction: Continuous Improvement Comes to Construction.” CONNstruction, Winter 2012, page 13.

Nesensohn, Slause et al. “Developing the True North route map as a navigational compass in a construction project management organization.” Lean Construction Journal 2013, 01-18. April 5, 2013. www.leanconstructionjournal.org.

Construction Industry Institute (CII). “Research Summary 234-1, Lean Implementation at the Project Level.”

Macomber, Hal et. al. “How to Use A3 Reports on Projects.” Lean Project Consulting. Copyright 2011

Hemrick, Bob, Director, DTE Energy Continuous Improvement Strategy Group. “DTE Energy PEX Award Submission-Best Process Improvement Program.” November 16, 2012. http://www.offshore-windpower-substations.com/media/6627/6553.pdf

Nguyen, Hung V. et al. “Decision Analysis using virtual first-run study of viscous damping wall system.” Lean Construction Journal 2010, 99-101 (1 page Preface and 1 page A3 report). www.leanconstructionjournal.org

Facilitator’s List of Acknowledgements& Recommended Readings

Source Websites for CMAA, CII, and AGC Slides

Construction Management Association of America (CMAA). “Becoming a CCM.”

http://cmaanet.org/certification/ccm/certification-process. 01 January 2013.

Construction Management Association of America (CMAA). “Memorandum of Agreement between The Construction Industry Institute and Construction Management Association of America.”

http://cmaanet.org/files/shared/Formatted_MOU_CMAA_CII_1Feb10.pdf. February 10, 2010.

http://cmaanet.org/CII-First-Year-Release. February 7, 2011

Construction Industry Institute (CII). “CII Best Practices.”

https://www.construction-institute.org/scriptcontent/bp.cfm. November 11, 2011.

Associated General Contractors (AGC) of America. “AGC’s Lean Construction Education Program.”

http://www.agc.org/cs/career_development/LCEP. 01 January 2013.

http://www.agc.org/cs/career_development/LCEP/course_content. 01 January 2013.

http://www.agc.org/galleries/default-file/AGC_LCEP_Flyer_Overview_1212.pdf. 01 January 2013.

Facilitator’s List of Acknowledgements& Recommended Readings

Books

Pascal, Denis. Getting the Right Things Done. Lean Enterprise Institute, Incorporated, December 5, 2006.

Sobek, Durward K. II, Smalley, Art. Understanding A3 Thinking: A Critical Component of Toyota’s PDCA Management System. New York: Productivity Press, 2008.

Shook, John. Managing to Learn: Using the A3 Management Process to Solve Problems, Gain Agreement, Mentor and Lead. Off-Piste Design, June 2010.

Michael L. George et. al. The Lean Six Sigma Pocket Toolbook- A Quick Reference Guide to Nearly 100 Tools for Improving Process Quality, Speed, and Complexity. New York; McGraw Hill Group, August 1, 2004.

Broedling, Laurie, Goodwalt, Vern. Best Practices in Team Excellence-Using the International Team Excellence Award Framework to Improve Your Organization’s Results. Milwaukee: American Society for Quality, Quality Press, 2012.

Forbes, Lincoln H., Ahmed, Syed M. Modern Construction-Lean Project Delivery and Integrated Practices. CRC Press, 2011.

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