A3 Report Writing
Toyota’s preferred method of
written communication
Delphi Course
#62004527
4/19/05
Copied from the Toyota Auburn Hills Training package. For Delphi Use Only.
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A3 Report Writing Agenda
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Introductions
History of Toyota
Objectives
Module 1: Toyota Principles/Characteristics
Module 2: A3 (&A4) Types
Module 3: Standard Elements
Creating an A3
Wrap-up/Review
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Toyota History
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Sakichi Toyoda Invents an automatic loom (1894)
Sakichi Toyoda decides to enter the car market (1920’s)
Kiichiro Toyoda devises the just-in-time system of production
Change name to Toyota (1936)
Taiichi Ohno transferred from Toyoda Spinning & Weaving to the
Toyota Motor Company
First cars shipped to US in 1957
Second best selling nameplate in US (1970)
Began truck bed fabrication and vehicle assembly (mid 70s)
NUMMI vehicle manufacturing (1986)
Today Toyota is one of the 10 largest companies in the world.
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Objectives
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Understand importance of A3 reporting standard
Learn the 4 basic types of A3 reports
Learn the elements of each type of report
Study the layout and formats of A3s
Practice developing and writing an A3
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Module 1: Toyota Principles
Act
GTS
Plan
Grasp
the
Situation
Check
Practical Problem
Solving
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Do
PDCA
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Module 1: Toyota Principles
Benefits of using the A3 Format
1. Kaizen
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Clarifies the goal
Shows the standard and deviation
Forces addressing all issues
Outlines new goal and method to reach it
2. Front-line Decision Making
 Grasp the situation
 Shows facts / data
 Shows decision process
 Shows options
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Toyota Principles
Benefits of using the A3 Format (cont.)
3. Cost Consciousness
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–
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Shows cost analysis
Shows alternatives
Supports cost justification (ringi-sho)
4. Process Management
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A-3 is a STORY about the
LOGICAL THINKING PROCESS
–
A-3 shows “grasp the situation”
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Helps management understand process used
–
Establishes vital points
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Toyota Principles
Benefits of using the A3 Format (cont.)
5. Management based on Philosophy
– Relates topic to company, divisional, annual goals
– Makes us ask, “Why do this?”
6. Toyota Associate Development (Respect for the value of people)
– Teaches thinking process
– Fosters 2-way communication
– Tool for constructive approach to needed countermeasures,
improvements:depersonalize issues
– Aids in objective evaluation of associates’ information
handling skills and logic
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Toyota Principles
Benefits of using the A3 Format (cont.)
7. Teamwork & Communication
 Standard form facilitates communication
All can understand
Manager
All have same information
Future
 Simple, brief, clear
 Can be done collectively
 Allows “3-D” communication
Inside
Outside
Past
Team Member
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What is Nemawashi?
“To dig around the root of a tree to prepare for transplanting”
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Nemawashi Model
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Determine the Need
Establish Rapport
Assess (Grasp Present
Situation, Get Info)
Offer a Proposal
(Give Info)
Negotiate Agreement/
Next Actions (Merge)
Check for Consensus
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Background
Problem Solving format surfaced in the early 1960’s after
Deming’s visit
 Utilized within Q.C. circles for shop problems
(supports TPS)
 A-3 use evolved in Toyota Management during 1970s
with direct focus on reader understanding
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Toyota Characteristics
Reflects Company’s Vision (Image)
Operating
Principles
Stated Philosophy
Ground Level
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Underlying Beliefs,
Values, Assumptions
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Initial Problem Perception
(large, vague, complicated problem)
Grasp the
Situation
Clarify the Problem
The “Real” Problem
Look for Cause
Track back, go see
Cause
Investigation
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Why?
Why?
Why?
Why?
Why?
Why?
Direct Cause
Cause
Cause
Cause
Cause
Root Cause
Basic Cause/Effect
Investigation
Investigation to
Root Cause
Countermeasure
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Changes in the Environment
+
New Company Goals/Needs
=
Grasp the Situation (Root Cause)
Quick Review of
PDCA and PPS
Plan
Act
Do
Check
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The Relationship between Process
and Proposal
Theme
Action
Standardize or
Start Again
Check
Follow-up
Plan
Identify Situation
Analyze Situation
DO
Situation
Countermeasures
Target
Implementation
Recommend
Countermeasures
Implementation
Analysis
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Follow-up
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Reflection – Module
Quick
Quiz
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1
Any
Questions
?
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Quick Quiz – Module 1
1) What are Toyota’s
Operating
Principles?
Stated Philosophies?
Underlying Beliefs, Values, Assumptions?
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Quick Quiz – Module 1
2) List the 5 steps of Practical Problem Solving
Step 1: _________________________________
Step 2: _________________________________
Step 3: _________________________________
Step 4: _________________________________
Step 5: _________________________________
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Quick Quiz – Module 1
3) List the 5 steps of PDCA
Step 1: _________________________________
Step 2: _________________________________
Step 3: _________________________________
Step 4: _________________________________
Step 5: _________________________________
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Module 2: Types of A3s?
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When To Use a Story Board (A3)
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Anytime you wish to clearly tell a story
– Especially when you wish to simplify or clarify
a complicated story.
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WHAT is an A3?
An A3 is a one-page report used by Toyota that includes all
information needed for the reader to:
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make a decision on a stated PROPOSAL or PROBLEM, or
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to communicate the STATUS of, or plans for, a specific goal
THEME OF A3
• Toyota does not teach a set format
SITUATION
• Guidelines are established such as the
inverted “N” flow to the right
ANALYSIS
• Every Toyota associate receives A3
Training
SIGNATURE BLOCK
PLAN
FOLLOW-UP
COUNTERMEASURE
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WHY Use the A3 Format?
BECAUSE AN A3 REPORT...
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Vital Parts of an A3
1. Tell a Story
2. Flow
3. Simple
4. Follows PDCA or PPS or DPS
5. Based on Facts, Not Opinion
6. Clear and Concise
7. Picture is Worth a Thousand Words (Graphics)
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Types of A3/A4s
1) Problem Solving Story
2) Proposal Story
3) Status Report
4) Informational Story
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Types of A3 Reports
Problem
Consciousness
P.S.
Story
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Report
Types
Proposal
Story
Status
Story
Current
Situation
Info
Story
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Tell a Problem Solving Story
When:
 A plan, goal or standard is not being met.
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Problem Solving Story
Grasp
The
Situation
Theme (subject)
Background (Why I/We Chose Theme)
Current Situation
(Analysis of Problem(s) and Cause(s))
Plan
Countermeasures
(to address causes(s))
Do
Implementation
Check
Act
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Follow-Up
(Review/Evaluation Results – Unresolved Problems)
Future Actions
(New Countermeasures and/or Standardization)
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Problem Solving Report Story
Theme:
Signature Block
Answers the question, “What are we trying to do?”
I. Problem Situation
IV. Countermeasures
•The Standard
•Current Situation
• Discrepancy/Extent of the Problem
(Resulting from Cause Analysis)
• Temporary Measure
Rationale for picking up problem (importance to business
activity, goals and values of the organization)
• Long Term Countermeasure
II. Target/Goal
V. Implementation
• Measurable description of what you
want to change;quantity, time
What
Action to
be taken
Cost
III. Cause Analysis
Problem:
Potential Causes
Most likely direct cause
Why?
Why?
Why?
Why?
Why?
Root Cause:
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Where
Place
Who When
Respons- Times,
ible person Dates
VI. Follow-up
•Unresolved issues & actions to address them?
•How will you check effects?
• When will you check the effects?
• How will you report your findings?
•When will you report your findings?
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Tell a Proposal Story When:
• There is no plan or goal but there is a company value
which needs to be addressed.
• A plan or goal existed, but situation has changed and a
new goal, policy or plan needs to be made.
• A new direction or policy is made and a goal/plan
must be made to address it.
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Proposal Story
Title
Grasp
The
Situation
Background
(Existing Value, Expectation, Policy, Goal or Plan)
Current Situation
(Analysis of Need(s) and Contributing Conditions)
Plan
Recommendations
(Cost/Benefits)
Do
Implementation
(Details of the Plan)
Check
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Follow-Up
(Review/Evaluation Results – Unresolved Problems)
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Proposal Story
Signatures, date
Title or Theme:
III. Plan
I. Introduction
Required Reason for Expected Responsibility
Condition Required
Effect
Condition
Basic Concept, Background, or Basic
Strategy, and
How it fits into the big picture
What/How Why
What
Who
Cost
IV. Unresolved Issues (optional)
II. Proposal
How to deploy
Basic Concept
(Vital Points)
Unresolved issues
How to overcome obstacles
i.e. How to negotiate with related departments,
anticipated problems and resolutions
V. Implementation
How to deploy plan
Schedule/Timeline
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Proposal Story
Signatures, date
Title (Project)
I. Background & Basic Concept
IV. Contents of the Plan
Timing ________
________
Members ______, _______, __________
Cost ________
II. Selection of the Plan
Curriculum
Expected Effect __________ (
)
D
Option A
V. Implementation Schedule
D
Option B
X
D
0
III. Example of other companies
0
A __________
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D
B ___________
Legend:
Preferred
D
Slight risk
X
High Risk
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Tell a Status Report Story
When:
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Establishing activities for a new goal
 Reporting on the major points of large goals
– Annual plans
– Mid & year end reviews
– Monthly vehicle status report
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Status Report Story
Signatures, date
Theme:
IV. Total Effect
I. Background
Impact to dept/company, expected benefits
Reason for choosing Theme
II. Objectives
V. Future Actions
Vital points of strategy or policy
Unresolved Problems
Actions
III. Implementation
Objectives Activity Achievements Eval- Future
expl.
uation
Problems
D
X
Legend:
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Preferred
D
Slight risk
X
High Risk
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Informational Story
Presentation
Definition:
An Informational Story Presentation is a story that summarized
the current situation only. It does not include an evaluation
component.
• Requires no problem consciousness
• Freedom to choose different types of format
• Must be verified
• Visualization is a very important part of the process
Purpose:
Informational Stories are used to convey general information to
any audience, inside or outside the company.
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Reflection – Module
Quick
Quiz
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Any
Questions
?
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Quick Quiz
1) List the 4 basic types of A3s
1: _________________________________________
2: _________________________________________
3: _________________________________________
4: _________________________________________
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Quick Quiz
2) You are requesting to purchase a new piece of “capital”
equipment. What type of A3 would be best suited for this
situation?
____________________________________
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Quick Quiz - Proposal Story
3) Fill in the title blocks
III.
I.
Required Reason for Expected Responsibility
Condition Required
Effect
Condition
Basic Concept, Background, or Basic
Strategy, and
How it fits into the big picture
What/How Why
What
Who
Cost
IV.
II.
How to deploy
Basic Concept
(Vital Points)
Unresolved issues
How to overcome obstacles
i.e. How to negotiate with related departments,
anticipated problems and resolutions
V.
How to deploy plan
Schedule/Timeline
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Quick Quiz
4) Name at least two things all A3/A4 reports have in
common?
_______________________________________
2. _______________________________________
3. _______________________________________
1.
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Module 3: A3 Vital Points
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Module 3: A3 Vital Points
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Plan time to grasp the ENTIRE situation:
– Consider a wide range of information sources
– Consider others involved – Nemawashi
– Base story on facts, not opinion alone
– Consider the long-term effect
 Decide what kind of story you need to tell:
– Write to your audience
– Consider needs, knowledge of situation
 Relate the story to company values, philosophy
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A3 Vital Points (continued)
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Make your story flow in a logical sequence. Include only
points needed to tell the story.
Save words – use graphs and visuals to tell your story
when possible.
Clarify the accuracy of the data used.
Make every word count – be specific, avoid specialized
language.
Consider visual effect of each box on the page in helping
you tell the story.
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Layout Guidelines
One Page (A3) Reporting
I. Title, Signature Boxes, Author and Date
Title Placement
 Place in top left or top center of page (top left is
preferable because it ensures that the title is still
visible if the sheet is tri-folded)
 Clearly indicate the subject and purpose of the report
Title
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Signature Boxes
Author: Date
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Layout Guidelines
One Page (A3) Reporting (Cont.)
Signature Boxes
 Place in top right corner of report
 Boxes are to display approval from management
 Signatures should appear highest to lowest in rank order
(left to right)
Author and Date
 Clearly indicate the source and age of the report
 Place on top right side of report
Title
Signature Boxes
Author: Date
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II. Boxes
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Clearly separate boxes and follow the logic flow
Allot space according to importance of item (ex. More space for
analysis or countermeasures based on what you want to
emphasize.) What is important for the reader?
Allow for margins and space between boxes
Leave space on left for three hole punching
Line up box edges where possible
Report Title
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Signature Boxes
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III. Size and Font of Text
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Key point is readability
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Maintain same fonts or typestyles throughout (one for
headings, one for body text)
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If you will be reducing any text or graphics, use larger
type
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Typical Font Sizes
Headings = 12 point minimum
Body Text = 10 point
Note: One Font Type
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IV. Numbering (or bullets) and Line Spacing
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Use numbered lists (or bullets) instead of
sentences and paragraphs.
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Numbering makes items easier to reference in
discussion
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The order of numbered items should be based on
importance, sequence, or time.
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Leave a blank line between each number or
bullet for readability and flow.
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Use of Bulleted Lists
Example:
Less effective:
Due to new vehicle line-off in June, which will run parallel
with other vehicle production, it will be necessary to
improve the layout and system of operation in our plant.
Better:
• A new vehicle line-off will begin in June
• Its production will parallel our current production
• Improve the plant layout and operation
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V. Underlining or Bolding Text
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Use underlining or bolding of text to focus attention
on key points
Reader should be able to grasp the story by only
following the bold information
New Equipment for ’94 Model
Background
New Model start /93
Effects:
Cost $3 million
Objectives
Need new equipment
Schedule
Pilot build 1/93
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Future Actions:
Find vendor 6/92
Install12/92
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A3 Report Writing
Constructive Analysis of A3/A4s
A3 Report Writing
Choosing the right chart or graph
Goal: To increase department participation in contributing to the United Way campaign. Which of the four graphs works best?
United Way Funding % Participation as of Jan-03
United Way Participation
100
Eng
80
Purch
60
19%
13%
Finance
40
12%
20
Sales
0
18%
Eng
Finance
H.R.
2000
Legal
2001
Plant
2002
Sales
H.R.
Legal
Purch
Plant
17%
13%
8%
Jan-03
Graph 1
Graph 2
Goal by
May 1
United Way Participation
Jan-03
United Way Participation
Goal by
May 1
100
80
80
60
60
40
20
40
0
20
Eng
Finance
H.R.
Legal
2002
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Plant
Jan-03
Graph 3
Sales
Purch
0
Eng
Finance
H.R.
Legal
Graph 4
Plant
Sales
Purch
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Key Points for Graph Preparation
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Use charts, graphs, and pictures to visually represent data.
Select the data and graph appropriate for your objective.
Choose a clear and concise title.
Determine how much history should be shown to represent the
trend.
Determine the order of each item in the graph.
Label the axis (vertical and horizontal units of measure).
Include a legend of symbols if applicable.
Indicate the data source and date on the graph for easy
reference.
Use the appropriate scale (vertical axis).
Show standard (GOAL) if possible.
Show the exact number for the data points if it does not make
the graph too busy.
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VI. Charts and Graphs
EXAMPLE:
Less Effective:
Cars produced May 28, 1998
White 35; Red 40; Blue 10;
Teal 10; Grey 5; Lt Blue 5
Better:
Cars Colors Produced 5/28/98
Grey
Teal
Lt Blue
Blue
White
Red
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VII. Check for Overall Balance
Hold the paper at arm's length:
 Is it neat overall (uncluttered)?
 Is there enough white space within and around boxes?
 Are the boxes balanced on each side?
 Is there a good mix of text and graphics?
VIII. Give Report to a Colleague for Comments
Can they understand it?
 Do they recognize the purpose?
 Is it a strain on their eyes?
 Did they find any mistakes?

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When To Use A 50-Page Report
• When you don’t know what you’re talking about
• When you’re trying to hide the truth
• When you want to impress your professor
• When you own Xerox stock
• When you wish to create a clerical staff empire
• When you need to fill up your time
• When you get paid by the word
• To combat the “Lonely In-Box Syndrome”
• To put your audience to sleep
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Key Points to Take Away
1.
2.
3.
4.
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The burden is on the subordinate to convince the
manager – therefore, must tell a convincing story
The manager must educate and lead, but not tell the
subordinate what to do, therefore, must ask the right
questions
A3 is a tool that supports both and helps with the
original question, why does lean take so long, why is it
so difficult …. This is the missing engine
The purpose is to practice developing a convincing
story & asking questions
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WHY Use the A3 Format?
BECAUSE AN A3 REPORT...
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Enhances Logical Thinking - What/How to accomplish goal
Enhances Decision-making - All facts thought out &
included
Provides Standardized Method of Communication - Is
easy for each department/division to recognize and read
Focuses on Problem Solving Activities – 5 Whys used
instead of simply trying to solve the perceived problem
Eliminates Waste – Easier to spot errors in thinking
Forces you to ask:
– Why do I think we should do this?
– Does it make sense?
– Will it improve our current process?
– Will it address the root cause of the problem?
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Summary – Benefits of an A3?
Ties Into The Delphi DMS and I&CIM Initiatives
STANDARDIZED
• A3 is a Standardized Approach To Business Communication
WORK
• Used To Develop People
REDUCTION IN
• Standardized Format; one type of form used by all
VARIATION
QUICK SET-UP
LEAD TIME
REDUCTION
ERROR
PROOFING
VISUAL
CONTROLS
Standardized Format; easy tool; familiar layout
• Promotes Quicker Decision Making - less reading of material
• Concise, Clear Communication
• Easier To Spot Defects - less to review
• Because it’s a Standardized Format - Visually "User Friendly"
•
•
•
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Eliminates Waste
Lowers Costs
Improves Profits
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A3 Reporting Writing
Group Exercise