Toyota’s Secret: The A3 Report

How Toyota solves problems, creates plans, and gets new things done while developing an organization of thinking problem-solvers.

One key management tool that is part of Toyota Motor Corp.’s widely heralded production system is a
report that Toyota calls an A3. The structure of an A3 report is simple: It involves a standard template
that conveys information within a series of boxes. However, this simple structure plays an important
role. Using the panels within the A3 report template, an employee authoring an A3 can perform a number
of important tasks that are part of problem solving: establishing the context of the problem and
describing the current situation; identifying the outcome that is desired; analyzing the situation to
determine the causes of the problem; proposing possible approaches to address it; creating an action
plan; and setting up a follow-up process.
Furthermore, the use of A3 reports allows managers to mentor employees by teaching them skills
that are important to Toyota’s culture–such as how to analyze the root causes of a problem and avoid
leaping to conclusions about possible solutions. The author explains how A3s are used and includes a
visual example of an A3 report. He maintains that A3s can help teach problem-solving skills within an
organization’s ranks.

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16 Comments On: Toyota’s Secret: The A3 Report

  • neeti | July 2, 2009

    A typical example of making a mountain out of a mole by management consultant.It sounds nothing more than common sense.

  • purunep | July 2, 2009

    yeh! it’s sound nothing. but it has lots of value because most managers don’t use their common sense.

  • leanvsl | July 2, 2009

    A3 thinking is a good thing.

    The Alternative is to sit in meetings for days and discuss multiple political agendas with people who would rather play golf.

  • getstuff | July 2, 2009

    A3 thinking seeks out the important mole hills from the mountains of ‘favorite’ mole hills

    Read the book; Managing to Learn, by John Shook

  • brata | July 2, 2009

    Great innovation, great design. After all there are not many Harvard MBA around you like General Motors. You have to work with different people with their different level of knowledge. So most easy edible meal is loved by workforce.

  • rajivbahl | July 7, 2009

    Such beauty in its sheer simplicity. Thanks John for sharing your wisdom. Will implement A3 rather A4 :) for my team in Bangalore.

  • khucxuanthinh | July 8, 2009

    usefull design!
    as i see it build from cause – effect theory. but this is great. it help people go from step to step in the right logical sequence. so if follow this logic, problem will be sold with easy to understand display.
    Many thank!

  • faceman888 | July 9, 2009

    neeti,
    It is common sense. It works. Many people are seduced by the complexity of more extravagant measures. It is a simple and visual approach to the scientific method. Observe, hypothesis, Test your hypothesis, Study results and take action.
    I resisted this and other Toyota based methods because I wrongly thought the simplicity to be inadequate and also arrogantly thought them to be beneath me. I have learned.

  • systemental | July 9, 2009

    It is easy to lose sight of common sense in a large complex organization. The A3 brings common sense (along with the scientific method) into clear view.
    I believe in the practice – just don’t get too hung up on the one page thing the first time you try it.

  • HOWARD S WEINBERG | July 17, 2009

    Yes, this is simply the scientific method applied to work. But do not minimize the effect of everyone in Toyota using the same systematic process and the same language to solve problems. And A3 is only part of what creates Toyota’s performance. It is the corporate system in which A3 fits that is so hard to duplicate. “The Mind of Toyota” is a great book that explains it.

  • redcedar | July 17, 2009

    In our first application of A3, we turned a planned 2-day workshop into four hours of immediate collaboration. “Simple” works.

  • gmunoz2008 | July 28, 2009

    My opinio is tha people from Toyota that uses this report(A3)are very practical and simple to use and to develop team spirit.
    Very truly yours
    gmunoz2008

  • byrnec | September 1, 2009

    I agree with neeti. It is clear the anecdote in First Person that the A3 was not itself driving the solution process: his manager was. It would have been much faster based on six-sigma thinking wherein one concentrates on the causes of variation. Clearly the A3 helps clarity of presentation (wonderful in iteself), but this only _might_ help clarity of thought.

  • ravisekhar.gsr@xius-bcgi.com | October 6, 2009

    Simple stuff

  • WILLIAM HARROD | October 19, 2009

    This approach has potential in many areas where information overload is used in place of understanding. As a decision maker, being presented with this instead of many pages of dialogue would demonstrate clear thought, provide opportunity for challenge and support effective action.

  • flaviolima | October 20, 2009

    As usual any tool stamped with a Toyota badge is considered the panacea for all problems. Please let keep in mind any tool when it is well applied will bring out a satisfactory result – since a simple Ishikawa to a most sofisticated 8D or Deep-Drill or TRIZ. Most important than tool is application of a correct/suitable management of people guiding their efforts towards results.

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