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. Buker, Inc. Buker, Inc. Buker, Inc.
1425 Tri-State Parkway Suite 120
Gurnee, IL 60031
(800) 654-7990
Email: info@buker.com
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 companys 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 LEAN
MANUFACTURING MANUFACTURING
SHORT SHORT
CYCLES CYCLES
TECHNOLOGY TECHNOLOGY PEOPLE PEOPLE
SYSTEMS SYSTEMS
- STRUCTURED FLOW
MANUFACTURING
- SMALL LOT
PRODUCTION
- SETUP REDUCTION
- FITNESS FOR USE
- TOTAL EMPLOYEE
INVOLVEMENT
- CONTROL THROUGH
VISIBILITY
- HOUSEKEEPING
-TOTAL QUALITY
FOCUS
- LEVEL LOAD & BALANCED FLOW
- PREVENTATIVE MAINTENANCE
- SUPPLIER PARTNERSHIPS
- PULL SYSTEMS
LEAN LEAN
Manufacturing Manufacturing
TOTAL TOTAL
QUALITY QUALITY
FOCUS FOCUS
CONTINUOUS CONTINUOUS
IMPROVMENT IMPROVMENT


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 companys 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
WHAT IS REQUIRED TO
ACHIEVE THIS YEARS
OBJECTIVES
BENEFITS OF THESE
ACTIONS
UNRESOLVED ISSUES
HELP REQUIRED
LAST YEARS ACTIONS
WHAT WORKED
WHAT DID NOT WORK?
ACTION PLAN TO ACHIEVE
THE OBJECTIVES
STRATEGIC OBJECTIVES
WHATS THE HISTORY?
STRATEGY THEME



Plan Do Check Act

The A3 concept is based upon Dr. W. Edwards Demings 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
4. Action Plan
Goal = 95%
3. Pareto of Errors
0
25
50
75
1 00
ACT PLAN
CHECK DO



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 yesterdays performance, issues and
actions.

Gas Analyzer Value Stream
METRICS
AREA 5
Daily Management Sign In
_____________________
_____________________
_____________________
_____________________
_____________________
_____________________
AREA 2
Daily Schedule Attainment
(Goal 95%)
AREA 4
Actions
Business Case
Goal Tree
Value Stream
AREA 3
Current Problems
Short item A 4769B
Items not on BOM
Incorrect inventory balances
Items not at point of
use/need to go get or hunt for
item
AREA 1
Business Case
Goal Tree
Value Stream
C us tome r D eliv ery
0
10
20
30
40
50
60
70
80
90
100
J F M A M
Goal
Firs t P as s Yie ld
40
50
60
70
80
90
100
Goal 98%
5 S
0
0. 5
1
1. 5
2
2. 5
3
3. 5
4
4. 5
J F M A M
Go al 4 . 0
In v e n to ry Ac cu r ac y
4 0
5 0
6 0
7 0
8 0
9 0
10 0
J F M A M
Go al 95 %
0
1 0
2 0
3 0
4 0
5 0
6 0
7 0
8 0
9 0
1 0 0
1 2 3 4 5 6 7 8 9 1 0


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.