How To Cut Waste And Increase Productivity By Implementing Lean Manufacturing

Lean Manufacturing is a culture and a strategy. It’s a way of doing things that helps companies improve efficiency, quality, and flexibility. It’s not just about tools and processes—it’s about people, too.

Lean Manufacturing is all about making things more efficient. It focuses on eliminating waste and finding ways to streamline workflows so that the company can produce more with less time and money.

Create a Lean Manufacturing culture

A Lean Manufacturing culture is an environment where people are taking responsibility for their own improvement, the improvement of processes and products, and the overall improvement of the company. It’s a culture built on trust, accountability, and continuous improvement.

In order to create this culture, it’s important to give employees the freedom to make decisions about how they do their job and then hold them accountable for those decisions. This can be tricky if you’re not sure what your employees’ strengths are or how they work best. But one way to develop this understanding is by asking questions like: “What’s been most helpful in improving your efficiency?” or “What practices have helped you achieve your goals?”

Once you’ve identified some of these practices, try them out on other employees! Make sure they’re working before adopting them as official company policy though—you don’t want anyone feeling like they’re being punished just because they weren’t included in testing new ideas before implementation!

Have the Upper Management Lead by Example

Lean is a powerful strategy, but it’s not something that can be implemented overnight. In order to make the most of your Lean efforts and get the most out of your employees, it’s important to have upper management lead by example.

Upper management should be actively engaged in the process of implementing Lean, from the beginning to end. They should also be involved in training new employees on Lean’s principles and ensuring that everyone is working together toward common goals. This will help employees understand how important their role is in helping you achieve those goals, which will increase their sense of ownership over their work.

Upper management should also be willing to let go of their preconceived notions about how things should be done in favour of allowing employees more freedom when it comes time to make decisions about how tasks should be completed.

Train your Team on Lean Basics

One of the best ways to get your team on board with Lean is to train them on the basics.

The Lean principles are not complicated, but they can be difficult to understand if you’re new to the concept. You should prepare your team by giving them a solid understanding of what Lean is and why it’s important before you start putting it into practice.

If your team doesn’t have a clear understanding of the principles, they will have trouble implementing them into their day-to-day work. If, for example, if you try to reduce waste without first explaining what waste is and why it needs to be reduced, then you’ll find that the effort isn’t effective or sustainable.

This is especially true when it comes to engaging your employees in Lean initiatives: if they don’t understand why they should participate in these efforts and how they’ll benefit from doing so, then they won’t be motivated enough to participate fully or consistently.

Value Stream Map – Study the Current Process

The first step in implementing Lean is to study the current process. This will help you identify areas of improvement and determine whether or not you are ready for the changes that will be necessary to make this happen. You can do this by performing a value stream map, which is a visual representation of your workflow.

The process should be broken down into steps. You want to look at each step and ask yourself what can be done to improve it, and how this change might affect other parts of the process as well. It is important to consider how each step impacts other steps, so you can look at all aspects of your operations and make sure that they are working together effectively.

Look for Waste and Remove It (Muda – Waste, Mura – Unevenness, Muri – Overburden)

You can define waste as anything that detracts from the value of a product or service you’re producing from your customers’ point of view. Waste can take many forms, such as overproduction, unnecessary resources, and more. These things need to be eliminated so that organisations aren’t creating products or services that don’t add value.

Muda is any kind of wasted motion, such as unnecessary steps in a process or unnecessary travel between locations. Mura refers to unevenness in the production line—it means one part of the process might be operating at peak efficiency while another part is idle or struggling just to keep up. Muri refers to overburdening people with too much work—this is often seen when you have an employee working alone on a task that should be split between two or more people to match customer demand (TAKT).

Map out the Main Bottlenecks

The main bottlenecks in a process are the aspects of the system that are limiting its throughput.

In order to identify these, you’ll need to first look at or build your Value Stream Map or Process Map and identify where there are bottlenecks. Then, you can work on fixing them by identifying what’s causing the bottleneck and finding ways to remove it. This may involve making changes like adjusting how people work together, reducing change-over times, increasing the Overall Equipment Effectiveness or changing how tasks are assigned (e.g., having workers perform different parts of a task).

Once you’ve identified where your bottlenecks are, you can start working on removing them.

Standardise Everything

This means that you need to define what “standard” means, and then make sure all employees are aware of it and trained to it. Standardising your processes gives consistency in how your team members perform their tasks. 

For example, if you’re a software company and you’re trying to improve efficiency by standardising on coding practices, then every employee should know which practices are allowed and which are not allowed.

You should also standardise your equipment and tools. If multiple employees use the same equipment or tool, everyone should use it in the same way every time.

If your company has multiple locations, then standardising everything is even more important because it helps create consistency between locations. If everyone knows what standards they need to meet at each location, then they’ll be able to work together better across locations knowing the desired quality will always be met.

Develop a Continuous Improvement Mentality

Implementing lean means shifting your focus from your business’s outputs to its inputs. But if you’re going to do that, you need to first develop a continuous improvement mentality.

To do this, you have to be willing to adopt an attitude of continuous improvement and continuous learning. You need to be constantly looking for ways that you can improve how things are done in your office or factory and how they contribute to the overall success of your business.

You also need to be willing to consider new ideas, because one of the main tenets of lean is that there are no bad ideas—only challenges in implementation. If someone suggests something new or comes up with a way of doing something differently, try it out! Even if it doesn’t work right away, you may learn something valuable about how something works or doesn’t work within your organisation.

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Continuous Improvement: The Simple Philosophy That Can Help Your Business Thrive

Continuous Improvement, The 1% rule, or Marginal Gains, whatever terminology you want to call it, they are all similar in philosophy and application. It is the idea of focusing on small incremental improvements to grow your business easily. The most successful businesses are always striving to improve to stay ahead of their competition.

In this blog I’ll explain how the philosophy of small incremental improvements can improve your business. This is a technique that many successful companies use in addition to Lean Thinking – a company’s philosophy of eliminating waste. It has been used for decades and can be found in micro businesses right through to corporate business models across industry and service sectors.

I’ve been a lean Sensei for 25+ years and implemented these small incremental changes in Hairdressers to Big Corporate Manufacturers. By implementing these marginal gains, it’s possible to make a huge impact on the performance of your company in a relatively short period of time. It’s Simple! and the data has proven time and time again that this method works!

You CAN NOT ignore the role of Continuous Improvement in business – and here’s why.

What is Continuous Improvement?

“Be Better Today Than You Were Yesterday, Plan To Be Better Tomorrow Than You Are Today” is a quote I have lived by for 25+ years of my working career.

The 1% Rule is a relatively new contender but has now become a business management philosophy that states that you should focus on improving your product or service by at least 1% every day. It was developed by Sir Dave Brailsford, former performance director of British Cycling, and used as a means to achieve micro improvement in the British Cycling Team. The concept behind the 1% rule is simple: if you focus on small improvements, you can achieve significant results over time.

The concept of the 1% rule in my opinion is based on Kaizen, which is Japanese for “continuous improvement.” Kaizen was first introduced to the Western World in the 1970s by Toyota, who taught that companies should embrace a culture of continuous improvement rather than trying to maximise efficiency one big hit at a time. Kaizen aims to reduce inefficiency in its 3 major forms. These are muda (waste), muri (overburdening work), and mura (inconsistency of work).

When we look at these strategies, we can see how the power of tiny gains really makes a difference.

1% Improvement Every Day 1.01365 = 37.78%

1% Decline Every Day 0.99365 = 0.03%

How does the Continuous Improvement work in business?

The PDCA Cycle, also known as the Plan-Do-Check-Act Cycle, is a model for continuous improvement that uses four phases to drive process changes through the organisation. This linked to the 3 forms of in-efficiency, muda (waste), muri (overburdening work), and mura (inconsistency of work) gives a superb structure and focus for all employees.

The PDCA Cycle Explained:

Plan: In this phase, you identify a problem or opportunity for improvement. You also create a plan for how to solve the problem or capitalise on the opportunity.

Do: In this phase, you carry out your plan and implement your solution.

Check: In this phase, you review your work to see if it was successful in achieving its objectives and if there are any unintended consequences of your actions.

Act: In this phase, you make adjustments based on what you learned in the check phase and continue with another iteration of the cycle to drive continuous improvement.

By continuously improving your processes, your organisation can achieve higher levels of performance at lower cost. This not only improves customer satisfaction but also helps an organisation achieve its goals faster.

The key to this and building on the marginal gains is to empower everyone to make these short, sharp improvement cycles small enough to be managed at a local level. This will enable them to use their creativity and judgment to find the most effective solution for their teams and customers.

The second aspect of this is that the improvements have to be visible and celebrated. This is not just about being proud of what you have achieved, but also about helping others see what you have done. This creates an environment where people are constantly looking for new ways to improve, which in turn leads to innovation.

The third aspect is that it has to be built into every process in a business. You cannot expect people just to do it because you asked them to – they need processes that encourage continuous improvement across everything they do from how they order stock through the distribution system all the way through customer support.

Why use the Continuous Improvement?

Continuous improvement is a process that can be used in every business setting of all sizes and all sectors, from small businesses to large corporations.

It’s Good for Business

The benefits of continuous improvement can be seen throughout the business world. By using this approach, companies are able to stay competitive while providing better quality products and services at lower prices. This helps them grow their customer base while increasing their profit margin through increased sales volume.

It’s Good for Employees

Continuous improvement is also good for employees because it provides them with job security. If you have implemented a continuous improvement program in your company, then you have created an environment where everyone is constantly making improvements which makes your company more competitive in the marketplace and less likely to be outsourced in favour of cheaper labour costs elsewhere.

  • People feel empowered because they have more opportunities for growth and development.
  • Employees feel more engaged because they feel like their work matters and makes a difference.
  • The company attracts better talent because employees want to work for companies that are doing great things for their customers.

Does Continuous Improvement really work?

Yes! Continuous Improvement absolutely works!

I’ve implemented and completed Lean Thinking and Continuous Improvement Projects in 100+ businesses over my career and have no doubt on the impact it can make.

On my very first project back in the 1990’s we took a machine change over from 480 mins to sub 20 mins, saving a £250K capital expenditure. As Senior Exec I’ve saved £10m+ year on year through the implementation of Continuous Improvement. I’ve seen every employee within a business take pride in completing numerous small incremental changes that compound in delivering a huge result.

In order to achieve these results, you need to be prepared to put in the work. It’s not an overnight process—it takes patience as well as an unwavering commitment to creating positive change at every level of your organisation. But once you’ve seen the first results, you’ll find it’s worth every minute invested!

You’ve only got to read some of our Case Studies to realise the potential.

Takeaway: Challenging yourself and your employees to make small improvements every day can have a dramatic effect on your overall business growth.

Manufacturing and The Internet of Things

The Internet of Things – IoT (Wikipedia) is the network of physical objects or “things” embedded with electronics, software, sensors, and network connectivity, which enables these objects to collect and exchange data.

The IoT has created a lot of conversations, some stating it’s all hype, some questioning it’s benefits more of something for the future and obviously the ones in support.

Now let’s not pretend here, the IoT is already here, we have smart houses, apps for lights, heating, music, etc. Recently, my neighbours installed a security system which allowed them to view, check, and switch their alarm on and off accessed from internet, this also alerted him to security issues around the property (the most important aspect). So we can’t say it’s not here already.

Now put this into the manufacturing environment.

Some renowned manufacturers have already started investing in hardware, software, and networking systems. Build the IoT infrastructure now to capitalise on its benefits.

I read in an article recently that GE anticipates $19 trillion in profits and cost savings projected over the next decade.

One major area I can see the benefit is Energy Efficiency. To be able to track all facilities, machines energy consumption on a granular level, this visibility will give feedback on a machines abnormal to normal status, something that we can action, countermeasure, control. It will highlight our waste, our areas for improvement, and better understanding of our costs and how to control them. And as stated this has to be a major benefit for manufacturing, something I certainly wanted as an Exec.

The ability to benchmark similar machines/resources, predict maintenance issues with surges in unusual energy consumption, highlighting the out of hours energy waste and being able to control and manage this. All of these will have a direct impact on the bottom line and this is just scratching the service.

The connectivity within production processes is another example, let’s say a machine is not running at optimal performance, this machine would send an alarm highlighting it’s situation to the production team, it could then slow itself down (as not to self-destruct) communicate with its upstream and downstream processes and slow them down limiting the amount of lost production and or downtime and controlling the standard in process stock.

Bosch’s Stefan Ferber stated “The Internet of Things allows for a new way of organising industry production: by connecting machines, warehousing systems and goods, we can create smart production systems that basically control each other without requiring any manual intervention.”

I will always remember the saying “ the Data will set you free” by allowing you to make “Informed Decisions”, can’t get much better than real time data, and that’s the possibility with IoT.

The Internet of Things global economic impact is massive. Approx. 25% of Global Manufacturers are already using IoT technology, this is expected to grow to 80% by 2025. In reading different articles/surveys most cannot put a definitive figure on the potential impact but the range is between $1.9 to $14.4 trillion dollars on the global economy.

Digital Manufacturing Stats from ASQ:

The American Society for Quality (ASQ) surveyed manufacturing companies that have digitised their processes and found astounding results:

  • 82% increased efficiency
  • 49% experienced fewer product defects
  • 45% increased customer satisfaction

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Why you should do this when looking at Business Performance

Raising Performance is always a challenge (many a sleepless night) but it’s not just about getting it right in your manufacturing processes, it’s about looking at your business as a whole.

Recently, we were asked to support a £40m turnover company with an objective to reduce costs.

Now, although Reducing Costs (and in particular eliminating waste) is an excellent focus, you can sometime lose sight of what other advantages/opportunities there may be, new market opportunities, sales optimisation, finance, etc.

During our detailed business diagnostic, it became apparent that there were some fantastic opportunities to be realised with particular projects on Increasing Growth and Efficiency Savings.

With TCMUK’s Business Practitioners coaching and mentoring our customers internal team, a total of £700K+ efficiency savings, £1M in cash flow improvement and a 17% growth opportunity have been realised so far within the business, with further projects being highlighted for implementation over the next 2/3 years.

So remember, step back and look at the whole business not just the usual suspects (this goes for any size organisation) and you’ll be confident (and hopefully sleeping) knowing you are focused on the right things.

And don’t forget, if getting results like this is on your agenda and you’re looking for some sector expertise, call on 0330 311 2820

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Re-Thinking Being Lean?????

I’ve recently read articles on Lean Manufacturing and in particular how certain businesses have been re-thinking the implementation of Lean.

Now for a bit of background on the articles. All of the business Leaders that started the implementation had been replaced and within 6 months of them being replaced the new Leader had decided to drop the programme. Now most of the stakeholder’s state that their objective is to address the challenges to delivering high-value to the customer, mmmmmm I wonder? By agreeing to drop a programme of business improvement?

Yes, lean takes time, yes lean utilises the front-line workers, yes you have to manage it and believe in it, but Lean is a long term strategy, a set of principles on how you do business, your business DNA. I wonder sometimes with the drive for instant results in a short space of time, particularly from stakeholders, the impatience for money, dividends, investors ultimately see the Leader that introduced the programme removed. This leads me to believe that stakeholders/leaders are either, ignorant, arrogant, none the wiser or have their own interest at heart, on what long term strategy and Implementation actually and physically means. I have been told about the removal of 11 Operations Managers over a 18 month period due to perceived lack of results, you cannot be that wrong in your recruitment process (or perhaps you can but that’s a separate discussion), so leads me to believe it’s the level above that’s the issue.

Now don’t get me wrong, if your haemorrhaging money within operations due to scrap or process variation don’t go and implement a 5S programme. Instead stop the haemorrhaging by attacking the root causes for variation and scrap, get controllable and predictable outputs. 5S may be part of the implementation but it’s not the saviour.

I worked in a number of businesses in my career and still see the same issues regarding short term results oriented thinking that has cost millions (and yes I mean millions in some cases). When I actually know that had the Lean Initiative programme, Operational Excellence, etc. been executed and maintained when it started, those losses wouldn’t have appeared and would have been quite the opposite.

Cost cutting is often a major reason for ditching the latest programme, and Leaders think that through the force of their personality or financial acumen that they are going to be able to fix the business without the aid of every employee in the business, how foolish are they??????

Any Improvement Programme is not going to be easy, but the benefits are massive for everyone, it takes time but ‘time’ is not a reason not to try.

What did make me smile was one of the businesses new Leaders justified the termination of the programme due to that fact that the frontline workers were involved, but in involving them had potentially reduced turnover times by 6.5 mins which equated into £410000/year of increased revenue.

Lean Manufacturing, business Improvement, whatever you call it, is not a short term strategy, but that’s not a reason not to pursue it.

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The Productivity Puzzle and Lean

I’ve never been one to shout about Lean, Six Sigma or Theory of Constraints, to individuals to solve a solution. I personally have though, applied the tools and techniques to resolve a situation or gain an opportunity I have faced. Granted, it’s not just about the application of tools and techniques, it’s equally important to focus on People, Culture and Managing Change within today’s organisations and society. Every single person has touched or been a part of a Lean process, within our everyday life from grocery shopping to our work we will have been in contact with lean in motion.

The interesting thing I have noticed recently are the articles beginning to appear regarding “is Lean at a crossroads?” and “How Lean is perceived today” particularly in the UK (but perhaps globally). An article by Morpheus Group stated “Businesses are taking a much more pragmatic approach, using a blend of tools….with very few businesses labeling their Corporate Programmes as Lean”.

It does seem that Lean and other Japanese terms associated with it are perceived a risk to alienating the workforce. I wonder why? Are we that uncomfortable with something that is not invented by us?? Are we hiding behind the terms as an excuse not to change??? (There is no doubting it is hard to implement and sustain, but that should never be an excuse). When I personally think about these questions it’s never been about the wording (don’t get me wrong I do cringe with some of them) but it’s about the application, execution/implementation that is key and the right behaviours that drive it so that we can benefit from it.

Businesses are placing a lot of importance on Strategic Cost Saving and Quality. This is absolutely fundamental in “Change” for any business. Strategy and Performance Management, Policy Deployment, Hoshin Kanri, whatever you choose to call it, is the back bone of your business, it is how you do business.

I believe Business Improvement is more important today than it ever has been with the globalisation of markets. What is it that gives us the competitive edge? In particular UK Productivity remains below pre-recession levels. I have been in discussion groups where an estimated 40% of productivity is lost through non value added activities, an estimated £3 Billion cost. Something Lean, Six Sigma, TOC can certainly impact.

This debate will carry on and involves so much from skills, impact on society, etc., etc.

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Manage Time as a Resource

If your managing time in all sectors of the business, from Sales, Product Development and Production it will result in shorter planning and development cycles, as well as less process time in manufacturing.

Whether you’re a manufacturer making computer components, tin cans, widgets or an individual working in a purchasing department producing orders, reports, or budgets you are still producing an output, an output that someone wants.

We all have our processes (inputs) and transform them into something someone wants (outputs).

Time is the key element to control within our processes, for this we use standard work.

The establishment of time based standardised processes is the greatest key to creating consistent performance. Only when the process is stable you can begin the creative process of improvement.

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Improving Performance – Engineering Company Case Study

Increased Delivery, Increased Sales

**No images or Business Name as Customer NDA in place**

Opportunity

This Private Equity owned business was under performing against budget. Particular attention was required within the operational areas with Productivity and On Time Delivery drifting.

The Managing Director required a system to: communicate the strategy, allocate resources, focus and align actions, and control business drift. He wanted to ensure that all key improvement activities had ownership, responsibility, accountability and the relevant training and practitioner support required to increase overall company performance.

Improvement

Working with the Managing Director & Executive Team the decision of implementing Strategy Deployment and A3 Problem Solving was agreed along with hands-on project execution support.

Training was given to all Management and Leaders in what Policy Deployment and A3 Problem Solving is, what benefits and how the process should be structured to enable execution of the business objectives. Key fundamentals were as follows:

  • Identify the few, long term breakthrough objectives that are critical to long term success of the company.
  • Link these objectives with specific action plans throughout the organisation.
  • Focus and align the company’s internal organisations to achieve these long-term objectives.
  • Turn the strategic plan into a year – over – year action plan.
  • Coaches and Mentors others

Workshops were held to ascertain the critical improvement activities to be focused on within the business. Training and Coaching was given to the owners of each A3 Plan on how to manage and communicate through the A3 process. Guidance and training to understand background, current state, problem definition, analysis, actions and follow up.

Management Control Rooms were introduced with regular performance reviews held with all owners and stakeholders present. Ongoing coaching and mentoring in Management Behaviour for the process along with business improvement training and our Lean Coaching Programme to ensure execution and sustainability. Operational Excellence and Process Optimisation workshops/projects were completed covering Sales, Purchasing & Logistics, Operations and Planning.

The company significantly impacted it’s financial position over a 9 month period,

  • Increasing Sales by 20%
  • Delivery by 33%
  • Efficiency by 28%.

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The 7 Wastes: Unseen Thieves in Your Business

In the world of lean manufacturing, ‘The 7 Wastes’ are infamous for their stealthy operations, silently chipping away at profits and productivity. These wastes fly under the radar, often going unnoticed by even the most astute professionals. Yet, if left unchecked, they can cripple an organisation’s ability to remain competitive and responsive to customer demands.

The Infamous Seven: TIMWOOD

Meet the hidden culprits named TIMWOOD, an acronym that represents the seven wastes in manufacturing:

7 Wastes Infographic

Transport (Unnecessary Movement of Materials)

The unnecessary movement of materials from one place to another is often the result of poor shop layout or a disjointed process flow. This waste can lead to an increase in handling which may cause damage or loss of materials, delays, and added labour costs. Eliminating this waste requires a streamlined approach to layout design and process flow optimisation.

Inventory (Excess Products and Materials)

Excess inventory is a common issue where production outpaces demand, leading to tied-up capital, storage costs, potential obsolescence, and increased risk of damage or loss. Inventory levels should be scrutinised, and techniques such as Just-in-Time (JIT) production and demand-driven planning should be considered for improvement.

Motion (Unnecessary Movement by People)

Similar to Transport, Motion refers to any movement by employees that does not add value to the product. This can range from reaching for tools to walking between workstations. Reducing unnecessary motion is integral to improving ergonomic conditions and efficiency. This reduction can be achieved by redesigning workspaces to minimise reach and travel distance and by standardising work procedures.

Waiting (Idle Time)

When employees or machines are idly waiting for the next step in production, this represents a significant waste of time and resources. This can be due to poor workflow, machine breakdowns, or bottlenecks. Tackling this waste involves a thorough analysis of processes to synchronise work steps and to ensure a continuous flow.

Overproduction (Producing More Than Needed)

Manufacturing items before they are actually required or in quantities exceeding customer demand results in overproduction – the root of many other wastes. This can lead to excessive inventory and increased holding costs. To nip overproduction in the bud, implement pull systems based on real customer demand.

Over-Processing (More Work Than Required)

Over-processing is seen when more work is done on a product than what is valued by the customer. This waste occurs due to unclear customer specifications or internal miscommunication. Reducing over-processing demands a clear understanding of what the customer values and aligning the production process to those standards.

Defects (Production that Requires Rework)

Defects and the need for rework can be the most apparent and costly form of waste. They lead to wasted materials, labour, and time, not to mention the potential to harm a business’s reputation. A culture focused on quality—like adopting Six Sigma or Total Quality Management (TQM)—can significantly curtail the occurrence of defects.

Identification and Elimination Strategy

Recognising ‘The 7 Wastes’ is the first step to effective lean management. It’s essential to develop a keen eye for these wastes and instil this perspective across all levels of the organisation. This is not a “once in a blue moon” activity but a regular practice that should be embedded into the daily routine. Regular audits, employee training, and a culture that promotes continuous improvement are key factors for success.

To embed this practice, create a system of visible metrics and feedback loops. This promotes responsibility and awareness amongst teams. Engage employees in problem-solving and encourage them to take ownership of their workspaces, suggest changes, and implement improvements.

7 Wastes within a process

Continuous Improvement: The Lean Way

To enter into a sustainable cycle of continuous improvement, adopt the PDCA (Plan-Do-Check-Act) methodology. Regularly plan improvements, do them in controlled conditions, check the outcomes, and act to standardise and stabilise the improvements.

Key Takeaways

Employing strategies to eliminate the wastes identified by TIMWOOD ensures a company’s ability to thrive in today’s competitive marketplace. By fostering a culture of continuous improvement, providing employee education, and implementing systems that promote efficiency, companies can not only identify waste but turn it into opportunity – for growth, for innovation, and for delivering value to customers that rivals cannot match.

If you need help applying these principles and taking practical steps towards eliminating waste, our team at TCMUK Limited is equipped to guide you through the process. The impact of addressing ‘The 7 Wastes’ can be profound. Call us at 0330 311 2820 or email info@tcmuklimited.co.uk to unlock the full potential of lean in your operation.

Sharing insightful methodologies for operational excellence is at the core of what we do. If you found this article useful, please share it with your networks. We encourage feedback and welcome any questions. Feel free to connect on LinkedIn or reach out to continue the conversation on optimising your business processes.

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A3 Problem-Solving – How To Tell the Story On One Sheet of Paper.

I was chatting with a few contacts recently, and the topic of A3 Problem Solving came up. It got me thinking, and I figured it was worth doing a quick overview of what it is and, more importantly, why it’s so surprisingly effective.

We’ve all been there, haven’t we? Staring at a 40-page report that’s landed in our inbox, complete with dense paragraphs, endless charts, and a conclusion that, if we’re honest, we’ll probably just skip to. Or maybe we’re the ones writing it, spending days crafting the perfect document, only to suspect it will be skimmed at best and ignored at worst. There’s a kind of corporate theatre to it all. We create these huge, comprehensive documents to prove we’ve done the work, but do they actually help anyone think better or make better decisions? Most of the time, I’d argue they don’t. They bury the essential story under a mountain of information.

This is where a beautifully counter intuitive idea comes into play. The idea that you can achieve more clarity, better thinking, and stronger alignment with less. Specifically, with a single sheet of A3 paper.

Problem solving, at its heart, is a thinking-intensive activity. But the act of writing things down, of structuring our thoughts, can massively amplify the quality of that thinking. It forces us to move from a jumble of ideas in our heads to a logical, coherent narrative. The A3 process is a framework designed to do exactly that. It guides us to document key information and decisions at each step of a problem-solving journey. This document then becomes a living thing, something that can be shared with others to get their input, to challenge our assumptions, and to build a shared understanding before any final decisions are made.

It sounds simple, and in many ways it is. But its power lies in a discipline that most of our modern reporting has lost.

So, Why A3? A Quick History Lesson

Let’s get the most obvious question out of the way first. Why the name A3? It’s almost comically practical. The methodology was pioneered at Toyota, a company famous for its relentless focus on efficiency and continuous improvement. Back in the day, much of their communication across different sites, and even different countries, was done by fax. And A3, which is roughly 29 by 42 centimetres, just happened to be the largest size of paper that could reliably fit through a fax machine.

It’s an amazing little detail, I think. A world changing management philosophy constrained and shaped by the technology of the time. It’s a perfect reminder that innovation doesn’t always come from some grand, abstract vision. Sometimes it’s born from very real, very mundane limitations. The size constraint wasn’t an afterthought; it was a foundational element that forced a particular kind of discipline. You couldn’t just keep adding pages. You had to be concise. You had to make every word and every chart count.

This little piece of history is crucial because it gets to the very soul of the A3 report. The key fundamental is not the rigid format, the specific boxes you have to fill in, or the finesse with which you create fancy drawings and charts. To be honest, a beautifully designed A3 that reflects shallow thinking is completely useless. The real point, the thing that makes it all work, is the communication process it enables.

The A3 is the physical manifestation of a problem solving journey. It’s a tool that underpins a deeper process of critical thinking and collaborative decision making. It allows the most critical information about a problem, from its background to the proposed solution, to be distilled onto a single page. This can then be shared across the business, allowing others to quickly evaluate the thought process behind it. It becomes a formal means for requesting support and advice, which in turn aligns everyone in the organisation on how the problem will be tackled and moved forward. It transforms problem solving from a solo activity into a team sport.

Anatomy of an A3 Report

If you look at a typical A3 template, you’ll see it’s laid out to tell a story, flowing logically from left to right and top to bottom. While the exact layout isn’t set in stone, as I mentioned, the format is not the main point, most successful A3s follow a structure that mirrors the Plan Do Check Act, or PDCA, cycle. It guides you through a systematic process, ensuring no critical steps are skipped.

A3 Problem-Solving Template

Let’s break down the typical sections.

  1. Title or Theme: This is the headline. It should concisely define the problem you’re trying to solve. Something like, “Reducing Customer Wait Times in the Support Queue” or “Improving the Accuracy of Monthly Financial Forecasts.” It needs to be clear and specific, framing the entire document.
  2. Background / Current Condition: This is where you set the scene. Why is this problem important? Who does it affect? What is the business impact? This section isn’t about opinions; it’s about facts. You need to go and see the process for yourself, what lean practitioners call genchi genbutsu. You should include data, charts, or simple diagrams to show the current state. What does the process look like right now? What is the performance? This section grounds the problem in reality.
  3. Goal / Target Condition: If the last section was about where we are, this is about where we want to be. What does success look like? The key here is to be incredibly specific and measurable. “Make things better” is not a goal. “Reduce average customer wait time from 4 minutes to 90 seconds by the end of Q3” is a goal. It should be a clear, unambiguous statement that leaves no room for interpretation. This target becomes the benchmark against which you’ll measure your success.
  4. Root Cause Analysis: To me, this is the absolute heart of the A3. It’s where the real thinking happens. It’s also the step that is most often rushed or skipped entirely in traditional problem solving. We see a problem, we jump to a solution. The A3 process forces you to slow down and ask one simple, powerful question, over and over again: Why? This is the famous “5 Whys” technique. You state the problem and ask why it’s happening. Then you take that answer and ask why that is happening. You continue drilling down until you move past the symptoms and uncover the true root cause. Often, the cause you end up with is completely different from what you initially suspected. This section might include a fishbone diagram or a simple bulleted list, but its purpose is to show a clear, logical chain of reasoning from the problem to its source.
  5. Countermeasures / Proposed Actions: Only after a thorough root cause analysis can you begin to think about solutions. Notice the word “countermeasures,” not “solutions.” It’s a subtle but important distinction. A countermeasure is a specific action designed to address a specific root cause. This section should directly link back to your analysis. If a root cause was “Inadequate training on the new software,” a countermeasure would be “Develop and deliver a mandatory 2 hour training module for all team members.” You’re not just throwing ideas at the wall; you’re proposing targeted interventions.
  6. Implementation Plan: This is where the plan becomes real. An idea without a plan is just a wish. For each countermeasure, you need to define who is responsible, what specific tasks need to be completed, and when they need to be done by. It’s a simple table: What, Who, When. This creates accountability and turns a good idea into a concrete project.
  7. Follow Up / Verification: How will we know if our countermeasures actually worked? This section closes the loop. It defines the metrics you will track, which should be directly related to the goal you set at the beginning. It also specifies when and how you will check the results. Are you going to review the data weekly? Monthly? This step ensures that the A3 isn’t just a one time exercise but the start of a continuous improvement cycle.
  8. Results and Learning: Finally, once the plan has been implemented and enough time has passed, you document what actually happened. Did you hit your target? If so, great. What did you learn that you can apply elsewhere? If not, why not? This is just as valuable. An A3 that shows a failed experiment is not a failure; it’s a source of incredible learning. This final section captures that knowledge for the rest of the organisation.

The Real Magic: A Tool for Thinking and Talking

So, that’s the structure. But if you just download a template and fill in the boxes, you’re missing the point entirely. The document is just an artefact; the real value is in the thought process and the conversations it creates.

First, it’s a tool for clarifying your own thinking. The constraint of the single page is a powerful focusing agent. You can’t waffle. You can’t hide behind jargon or bury weak arguments in long paragraphs. You have to be brutally economical with your words. The process of trying to fit a complex problem onto one sheet forces you to simplify, to prioritise, and to make sure your logic is sound. You can literally see the connections between the problem, its root cause, and the proposed fix. It makes your thinking visible, not just to others, but to yourself.

Second, and perhaps more importantly, the A3 is a catalyst for communication and collaboration. In a typical corporate setting, a proposal or report is often worked on in isolation and then presented in a big meeting, a “big reveal” moment. This often puts people on the defensive. They poke holes in it, ask questions the presenter isn’t prepared for, and the whole thing can descend into conflict or get bogged down in debate.

The A3 process flips this on its head. The A3 is meant to be a draft, a conversation starter. The idea is to take your messy, pencil drawn A3 and walk it around to the key stakeholders. This process is sometimes called nemawashi in Japanese, which translates literally to “turning the roots.” It’s about carefully building consensus from the ground up. You show it to your manager, to the people who work in the process, to colleagues in other departments. You don’t present it; you ask for their help. “Here’s what I’m thinking, what am I missing?” “Does this data look right to you?” “What are your thoughts on these countermeasures?”

This approach does a few wonderful things. It enriches the A3 with diverse perspectives, making the final outcome much stronger. It builds buy in from the very beginning, because people feel they have been part of the solution finding process. And it fosters a culture of coaching. A good manager doesn’t just approve or reject an A3. They ask probing questions. “Why did you stop your root cause analysis there?” “How confident are you that this countermeasure will achieve the full target?” They coach the author to think more deeply, turning every problem into a development opportunity.

How to Start Your First A3

If any of this sounds interesting, my advice is simple: just try it. Pick a small, nagging problem that you’re familiar with. It doesn’t have to be a multi million pound production issue. It could be something as simple as “Team meetings consistently run over time” or “The process for submitting expense reports is confusing.”

And please, for your first few attempts, follow the original author’s advice and use a pencil and a physical piece of paper. I know it sounds old fashioned, but there’s a reason for it. A PowerPoint or a fancy software template can create a false sense of finality. It looks polished, so we become reluctant to change it. A pencil and paper, on the other hand, feels temporary and iterative. It gives you permission to be messy, to erase things, to scribble in the margins, and to focus purely on the quality of your thinking, not on your graphic design skills.

Walk through the sections one by one. Go and observe the current condition. Talk to the people involved. Spend a good amount of time on the root cause analysis. Don’t just accept the first answer that comes to mind. Keep asking why. Then, once you have a rough draft, go and talk to someone about it. See what they think. Your first one won’t be perfect, and that’s completely fine. The goal is to practice the thinking discipline, not to create a masterpiece.

Over time, you’ll find that the structure becomes second nature. It becomes an internal mental model for how you approach any problem, whether you’re formally writing an A3 or not.

A Way of Thinking for Everyone

While the A3 report was born on the factory floors of Toyota, its application is truly universal. It’s a mistake to see it as just a manufacturing tool. At its core, A3 thinking is simply a structured, collaborative, data driven approach to problem solving. And what part of a business couldn’t benefit from that?

Think about it.

A marketing team could use it to analyse why a particular campaign underperformed, digging into root causes related to audience targeting, messaging, or channel selection, rather than just shrugging and moving on to the next thing.

An HR department could use it to tackle a problem like high employee turnover in a specific team. Instead of jumping to solutions like a pay rise, they could use the A3 process to uncover deeper issues related to management style, workload, or career development opportunities.

An IT team could use it to finally solve a recurring network outage, systematically investigating the root cause instead of just rebooting the server every time it happens.

Even at a strategic level, a simplified A3 format can be used to propose a new business initiative, outlining the current market condition, the proposed goal, the analysis behind the proposal, and a high-level implementation plan, all on one page for senior leaders to review.

The principles are always the same: Go see for yourself. Grasp the current situation. Analyse down to the root cause. Build consensus around effective countermeasures. And follow through to ensure they work.

In the end, the A3 process is a powerful antidote to the complexity and information overload that plagues so many of our organisations. It’s a call to return to a more disciplined, more thoughtful, and more human way of solving problems. It reminds us that clarity doesn’t come from adding more information, but from stripping away everything that isn’t essential.

It proves that sometimes, the most powerful and persuasive story you can tell is the one that fits on a single sheet of paper.