Learn the importance of A3 Reporting for effective problem finding and resolution.

Do you have a method for managing change and solving problems? Does your company have a clear way to describe, analyze, and communicate strategic decisions? If you said no to some of these questions, or if you want to boost your results or your company's, you need to know the A3 report.

So, to give you a deeper insight into this fantastic tool, in this article you will read about:

• What is A3 reporting?
• How did the A3 report originate?
• How to create and fill out an A3 report?

It is worth remembering that the application of the A3 report is broad, and is not restricted to the citations in this article.

What is A3 reporting?

The A3 report is a tool that seeks to recognize and propose the resolution of problems. Through it, it is possible to identify the root cause, its nature, and the range of possible countermeasures, and only then select the best one, put it into practice, and then observe whether the problem was effectively solved.

More than the A3 size sheet of paper, it is a Lean tool that helps you structure your thinking and put together a story from beginning to end.

The structure of the A3 report is based on the PDCA cycle and visual management, and although there are variations, in most industries it consists of the following basic parts:

1. Initial considerations;

2. Current situation or state;

3. Objective;

4. Analysis;

5. Improvement proposal;

6. Action plan;

7. Follow-up and indicators.

By following this step by step approach we are led to identify the causes of the problems we are studying, before moving on to actions. We will see how to do this later.

Then, in an A3 report where the situation is completely identified, with a good analysis of the facts and the causative sources, the countermeasures will certainly be more effective in solving problems.

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How did the A3 report originate?

Its basis is the Toyota Production System, also known as Lean Manufacturing. This system always seeks to improve employees and processes in a system of continuous improvement, through analysis and training of employees.

How to create and fill out an A3 report?

Filling out the A3 report is not a complex task, and it will become even easier with the step-by-step steps we have listed below. Check it out!

1. Initial considerations

The first step is to get a complete understanding of the problem, so spare no effort to visualize the context, because a forgotten detail can have a big impact.

To begin to understand the problem, you can personally go to the site and closely observe the phenomenon. If it is on the factory floor, the so-called gemba, for example, you can talk to those involved to get information about how and under what conditions the problem occurred.

We can make an analogy with a crime scene. The closer the engineer gets to the scene, the closer he is able to see the evidence needed to understand the problem.

Therefore, at this stage the following tasks must be performed:

• Problem definition. 
• History of the problem;
• Survey of current losses; 
• Evaluation of possible gains; 
• Identification of the main effects;
• Generate a document.

However, how can we accomplish these tasks? The good news is that there are numerous tools that can help us in this phase.

I have listed some of them for you to use during the development of your A3 form:

• Check Sheet.
• Control chart.
• Ishikawa diagram.

2. Current situation or state

When we are dealing with problems, we usually use the simplest thinking to identify their causes. However, it is not uncommon for us to overlook some details.

In the first stage we use tools that help understand the possible causes of the problem, through observation and data collection.

Now, in the second stage, we will use ways to understand the behavior of the problem.

These tools will make the problem easier to visualize:

• Histogram.
• Pareto diagram.
• Dispersion Diagram.
• Flow chart.

3. Objective

After understanding the root causes, it is already possible to think of the changes needed in the current system to start working.

According to the Lean Manufacturing philosophy, one should think about the objectives and visualize the ideal state in order to avoid rework and new occurrences of the problem.

But how to do this? Set clear objectives, such as productivity gains of 20% or reduction of bottlenecks by 90%. Many companies use the SMART method as a way to define objectives that are specific, measurable, realistic, achievable, and timely.

4. Analysis

The focus of this part is simple: identify the root cause of the problem. With the possible causes raised and the use of diagrams to help understanding, it is possible to filter those that cause the greatest impact on the process.

To summarize and conclude this part you can do the following activities:

• Define the most influential root causes.
• Choosing the most probable causes.
• Analyze the most probable causes.
• Specify countermeasures. 

To accomplish these tasks you need to use the following tools:

• 5 whys;
• Ishikawa diagram
• Brainstorm;
• Cause and effect diagram
• Effort x Impact Matrix;
• 7 Quality tools.

Widely used to deepen the analysis of problems, the 5 Whys technique consists of asking "Why?" five times, and then relating the answer to the previous cause. This way, instead of perceiving the reflexes of the problem, you get to the root cause.

You may be wondering why we are using the Ishikawa Diagram again, right? By brainstorming with the team you can get lots of ideas, and with the diagram you can select the causes that impact the results the most.

Another tool that deserves to be highlighted at this stage is the Effort X Impact Matrix. With it you can visualize which problems can have action plans with a high impact and low effort, which are the most recommended actions.

5. Improvement proposal

With the analyses and objectives well defined, we move on to countermeasures, a phase that can become problematic.

In many industries, good ideas are abandoned for not having a clear countermeasure for their implementation. Therefore:

• List all the countermeasures.
• Define their mode of action.
• Specify a responsible party.

After defining the countermeasures and the plan, there is usually an approval phase. The importance of this bureaucratic step is to provide a validation of the work up to this point, but it is also an opportunity to get feedback on what has been developed.

6. Action plan

The action plan is part of any problem-solving proposal. It defines the tasks required to accomplish the proposed countermeasures, who is responsible for each activity, and when the activity will be completed.

The 5W2H tool (Who, What, Where, When, Why, How, and How Much) can be used to develop this function. After defining the action plan, to implement A3 reporting, you need to list and inform the people to coordinate their tasks within the stipulated time frame.

After being approved, the action plan is executed, always following as much as possible what was planned. At the same time, it is necessary to follow up the activities to notice if deviations are occurring.

If the results are being achieved, changes are established as part of the processes and the results are expanded.

If they are not being met, we resume efforts to find out why and seek new corrective actions.

7. Follow-up and indicators

After the execution of all activities it is to be expected that there will be an analysis between the stipulated and the actual results.

The benefits of this follow-up are whether what has been implemented has had a positive effect, and whether learning about the A3 method has generated a better understanding of the current situation.

And finally, it shows that the organization is paying attention to the problems by monitoring the employees and also the managers.

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