Project leaders will keep track of team progress using an A3 Report. Introduction Project leaders will keep track of team progress using an A3 Report. Missing watermark. A3 Report form 1

Introduction Benefits of the A3 It is an on-going visual guide of where you are and what happens next. Think of it as both a map and a checklist. This is your hands-on tool for the whole DMAIC process. 2

Begin by thinking about your problem D A3 Begin by thinking about your problem What areas can I target? What do I want to fix? What is the problem’s background? How does this relate to my mission, vision, etc.? 1. Problem Statement: A3 Problem Statement

How does this process run? A3 Begin by thinking about your problem Where do we stand? How does this process run? Should I consider time, cost, survey scores or something else? How can I measure this? 2. Current Situation: A3 Current Situation

Then by thinking about your ideal Where do we need to be? How far would I like to get? What are some measurable targets? When would I like to get there? Remember these are simply target goals and may change once you get into the DMAIC phases. 3. Target Goals: A3 Target Goals

Filling in the Charter D Project Charter Be sure to include briefly: Who is being impacted? (This is your customer.) What is the issue that is impacting the customer? Where and when do the customers encounter the problem with the process? What is the impact to the customer when the problem occurs? Filling in the Charter Business Issue

Filling in the Charter D Project Charter Be sure to consider, What authority do we have? What processes are we addressing? What is not within scope? What are the starting and ending points of the process? What components of the business are/are not included? What, if anything, is outside of the project boundaries? What constraints must the team work under? Filling in the Charter Scope considerations

Filling in the Charter BEWARE Scope Creep D Project Charter Not your job! Upstream Process Stick with beginning /end points. Process Downstream Process Create boundaries and maintain them! Scope Creep

Understanding Metrics Project Charter What is a metric? A measured variable that can be tracked and used to detect errors, inefficiency, or improvement. It can be a process metric or and organizational metric. Process metrics apply to specific processes or programs like time, cost, or quality. Organizational metrics address organization-wide issues like employee satisfaction and turnover. Understanding Metrics Choose one or more to describe accurately your process’ efficiency. Defining metrics

Understanding Metrics Project Charter Kinds of Metrics Time Metrics Value-added time Quality Metrics Customer satisfaction Non-value-added time Percent complete and accurate Processing time Cycle time Output Metrics Cost Metrics Backlog Cost savings Work in process Opportunity cost Decreased waste Understanding Metrics Kinds of metrics

You must have a baseline to measure improvement. D Project Charter You must have a baseline to measure improvement. Understanding Metrics The Lean Office will help establish your baseline metrics. Baseline

Now revise the A3 Problem Statement D A3 Now revise the A3 Problem Statement Briefly explain what the project is and what your team hopes to achieve. Also name your metrics.

Problem Statement Example: D A3 Problem Statement Example:

Begin by thinking about your problem Where do we stand? How does this process run? Should I consider time, cost, survey scores or something else? What are some ways to measure this? 2. Current Situation:

Then by thinking about your ideal M A3 Then by thinking about your ideal Where do we need to be? How far would I like to get? What are some measurable targets? When would I like to get there? 3. Target Goals:

Now revise the A3 Current Situation M A3 Now revise the A3 Current Situation Name your metric and record data from the current process.

Current Situation Example

Think about the data you have collected What problems can I identify? What are the root causes? Do my customers have relevant input? 4. Analyze the Problem:

Now revise the A3 Analyze the Problem At this point you should have a deep understanding of the causes of the problem.

Analyze the Problem, Example Current Problems: Clemson pays invoices with no consideration for payment terms. Root Cause: There is no policy or procedure regarding discount identification or negotiation. We also recognized that we write too many checks and would like to move recipients towards electronic payments to eliminate waste. Waste Identified: discounts not taken; mailing vendor checks; invoices waiting on desks for approval. We also found: # of checks written = 27,179; top vendor paid in 25 days on average; 23% of vendors paid in less than 10 days; 31% of vendors paid in less than 20 days (though could pay within 30 days).

Think about the causes you have found What are some ways to resolve these issues? How can we move closer to our target? 5. Develop a Solution:

Think about how you can verify your solutions How can we test our ideas? What outcomes should we achieve? 6. Test the Solution:

Think about putting your solutions in place Who’s cooperation do we need? What resources do we need? When do we need this? 7. Plan Steps for Completion:

Implementation Plan I Solve Who will be on the implementation team? What exactly will this step involve? When will the change take place? What is the expected outcome of this step?

Now revise the A3 Develop a Solution

Develop a Solution, Example Specific changes addressing root cause: Charge a fee to receive a check; implement a policy stating we will pay vendors in 30 days. Steps to get closer to target: identify the top dollar vendors and work towards capturing discounts from the top 10 initially. The fees will generate revenue and all fall under resource allocation. Once the 30 day policy is in place, we can begin to ask for discounts for early payment.

Revise the A3 Test the Solution

Test the Solution, Example We are assuming vendors want to be paid quickly. Once the system is set up to pay vendors in 30 days, we will take a sample to determine whether they will accept the discount. Clemson is still in the process of determining how best to charge a fee for writing checks. Some technical difficulties need to be resolved.

Revise the A3 Plan Steps for Completion

Plan Steps for Completion, Example . What Who When Outcome Communicate the need to import invoices in a timely manner  Procurement  ASAP Ability to pay vendor in specified time Establish system to pay vendor in 30 days Procurement ASAP Systems has been established to pay 30 days from receipt For first line, this will ensure that if a vendor wants to be paid in 10 days for a 2% discount, we can accommodate that.

Think about your accomplishments What are the results? What did we hope to achieve? Can we be sure of our impact? 8. Compare Goals with Results:

Think about what you and your team have learned C A3 Think about what you and your team have learned Thoughts? Lessons learned? Ideas? 9. Reflect on the Project:

Now revise the A3 Compare Goals with Results Did your team meet the goals you set at the beginning? If not, explore the reasons why.

Compare Goals with Results, Example Goal: Move more individuals from check to e-check. We have increased the percent of vendors receiving electronic payments from 6.2% to 30%. Goal: Capture discounts. Many vendors prefer full payment to early payment. Still, 281 offer a discount for early payment.

Revise the A3 Reflect on the Project Consider the successes and failures. What experiences can be applied to future projects? Is there room for more improvement? Return to Define!

Reflect on the Project, Example There is always room for improvement. We overestimated the number of vendors we thought would want a discount. Because of the economy, many vendors decided they preferred full payment in 30 days rather than a 2% discount for early payment. We also experienced difficulty with the check writing fee. Implementation is the hardest phase and where the project can fail. To help avoid this, involve more stakeholders in the early phases.