Management Education and Consulting

A3 Strategy Deployment
Links The Lean Manufacturing Initiative
From The Boardroom To The Factory Floor

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Buker, Inc.
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Gurnee, IL 60031
(800) 654-7990
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http://www.buker.com/
A3 Strategy Deployment Links The Lean Manufacturing Initiative From The Boardroom To The
Factory Floor

Virtually all of Buker, Inc. client companies are engaged in pursuing Best in Class performance
through the implementation of Lean Manufacturing practices. Linking a company’s senior
leadership strategic direction to the execution throughout the organization is the use of strategy
deployment and A3 planning and execution.

Lean Manufacturing

The Lean Manufacturing model consists of the integration of twelve (12) elements with the
strategic and philosophical purpose of creating a:
1) Responsive business environment
2) Capability for rapid improvement
3) Careful application of company resources

LEAN
MANUFACTURING
SHORT
CYCLES

TECHNOLOGY PEOPLE
- STRUCTURED FLOW - TOTAL EMPLOYEE
MANUFACTURING INVOLVEMENT
- SMALL LOT - CONTROL THROUGH
PRODUCTION VISIBILITY
- SETUP REDUCTION - HOUSEKEEPING
LEAN
- FITNESS FOR USE -TOTAL QUALITY
Manufacturing FOCUS

TOTAL
QUALITY
SYSTEMS CONTINUOUS
- LEVEL LOAD & BALANCED FLOW IMPROVMENT
FOCUS
- PREVENTATIVE MAINTENANCE

- SUPPLIER PARTNERSHIPS
- PULL SYSTEMS

This strategic purpose or “True North” is the magnetic pull or business direction defined by
senior leadership thru the implementation of “Lean” principles to achieve a competitive
advantage and create value for the customer.
A3 Purpose

A3 is a storytelling approach to planning and execution. A3 utilizes one page (11” X 17”) to
express the plan and helps a department or area clarify objectives, get aligned and get focused.

For the implementation of Lean principles into an area the A3 storyboard is utilized to depict a
strategy theme. This one page storyboard has an intuitive flow with the intent of communicating
area strategic objectives tied to the company’s “True North” business strategy. The storyboard
flow states area objectives, current plans, monitoring of the plan thru defined operating metrics
and unresolved issues with actions required.
 A3 STORYBOARD

One Page Storyboard

Intuitive Flow

STRATEGY THEME
 STRATEGIC OBJECTIVES  ACTION PLAN TO ACHIEVE
 WHAT’S THE HISTORY? THE OBJECTIVES

 LAST YEAR’S ACTIONS  UNRESOLVED ISSUES

 WHAT WORKED  HELP REQUIRED
 WHAT DID NOT WORK?

 WHAT IS REQUIRED TO
ACHIEVE THIS YEAR’S
OBJECTIVES
 BENEFITS OF THESE
ACTIONS

Plan – Do – Check – Act

The A3 concept is based upon Dr. W. Edwards Deming’s scientific method of Plan – Do –
Check – Act. This improvement methodology was to promote constant interaction between
departments/areas and improve quality consciousness. For example, Plan – Product Design, Do
– Production, Check – Sales to confirm the customer is satisfied and Act – research and customer
feedback to improve product and process.

PLAN – DO – CHECK - ACT

1. Target 2. Cause and Effect

Goal = 95%

ACT PLAN

CHECK DO
4. Action Plan 3. Pareto of Errors

100
75
50
25
0
This strategy deployment model helps (Step 1) define the gap between current performance and
the stated target performance level. Step 2 encourages brainstorming and problem solving. Step
3 helps prioritize possible causes and Step 4 the creation of an action plan.

A3 Template

The A3 template:
1) Summarizes strategy
2) Highlights critical needs and gaps
3) Outlines the action plan
4) Documents unresolved issues
5) Reviewed daily at the “Gemba Walk/Board Walk”

Companies attempting to drive Lean principles to the factory floor and drive alignment to the
strategy employ a daily “Gemba Walk” or “Board Walk” to each factory value stream. This is a
15 minute review by the value stream management of yesterday’s performance, issues and
actions.

Gas Analyzer Value Stream

AREA 1 AREA 3 AREA 4
• Business Case Current Problems Actions
• Goal Tree • Short item A 4769B • Business Case
• Value Stream • Items not on BOM • Goal Tree
• Incorrect inventory balances • Value Stream
• Items not at point of
use/need to go get or hunt for
item
AREA 2 AREA 5
Daily Schedule Attainment Daily Management Sign In
(Goal 95%)
100 _____________________
90
80 _____________________
70
60 _____________________
50
40
_____________________
30
20
_____________________
10
0
_____________________
1 2 3 4 5 6 7 8 9 10

METRICS
C u s to m e r D eliv ery F irs t P a s s Y ie ld 5S In v e n to ry Ac cu r ac y

G o a l 98 % G o al 95 %
G oal G o al 4 .0
100 10 0
100 4.5
90 4 90
90
80
3.5
70 80
80 3
60
2.5 70
50 70
2
40
1.5 60
30 60
20 1
50
10 50
0.5
0 0 40
J F M A M 40
J F M A M J F M A M

The A3 planning and execution process creates a shared understanding for all floor associates by
value stream of the strategic and philosophical purpose (True North) for the overall company. It
provides an ability to develop, deploy and monitor the plan , solve problems and get results.