The Power of Problem-Solving with PSP and A3: A Strategic Guide with Examples by Tim Cutts (and Hiccup)

The Power of Problem-Solving with PSP and A3: A Strategic Guide with Examples by Tim Cutts (and Hiccup)

Abstract: The Danaher Business System (DBS) is a proven model of continuous improvement. It incorporates two key tools for effective problem-solving: the Problem-Solving Process (PSP) and the A3 Process. Both tools, grounded in Lean principles, offer structured methods for identifying root causes and implementing long-lasting solutions. By fostering operational excellence and promoting efficiency, these processes enable businesses to systematically tackle cross-departmental challenges.



The Value of PSP and A3

Both the PSP and A3 Processes target root causes to ensure that problems are resolved permanently rather than temporarily fixed. The value these tools provide includes:

  • Sustainable Solutions: By identifying root causes and developing long-term countermeasures, these processes ensure that problems are eliminated permanently.
  • Continuous Improvement: PSP and A3 create a culture of continuous evaluation and improvement, encouraging teams to consistently refine processes.
  • Cross-Functional Collaboration: Both methods promote collaboration across departments, integrating different perspectives into the problem-solving process.
  • Standardization: Once solutions are proven effective, they are standardized across operations to prevent future recurrence and streamline workflows.

The Problem-Solving Process (PSP)

The PSP ?Process is a structured, step-by-step approach that helps teams analyze and resolve problems effectively, creating long-term solutions rather than temporary fixes.

Steps in the PSP Process:

  1. Problem Identification: Clearly define the issue at hand. Misidentifying the problem can lead to ineffective solutions, so this step is critical.
  2. Root Cause Analysis: Tools like the 5 Whys or Fishbone Diagrams can be used to uncover the root cause(s). The 5 Whys process is particularly useful for drilling down to the core issue.
  3. Develop Countermeasures: Once you’ve identifying the root cause, you can create actionable countermeasures. These solutions target the core problem to ensure a permanent fix.
  4. Implementation: Implement the solution on a small scale through pilots to test its effectiveness before rolling it out across the organization.
  5. Measurement and Evaluation: Measure the success of the solution using Key Performance Indicators (KPI’s). This ensures that the countermeasures are delivering the intended results.
  6. Standardization: Once the solution proves successful, it is standardized across the organization to prevent future recurrence.

Example of the 5 Whys in Action

Problem: A machine on the production line stops working.

  • 1st Why: Why did the machine stop? The fuse blew.
  • 2nd Why: Why did the fuse blow? The machine was overloaded.
  • 3rd Why: Why was the machine overloaded? The bearing wasn’t lubricated properly.
  • 4th Why: Why wasn’t the bearing lubricated properly? Scheduled maintenance was missed.
  • 5th Why: Why was the scheduled maintenance missed? There is no tracking system to alert the maintenance team.

Root Cause: The actual issue isn’t the blown fuse.? Instead, it’s the lack of a preventive maintenance tracking system.

Action: Implement a preventive maintenance tracking system that alerts the maintenance team when machines are due for service. This will prevent future machine overloads and downtime.

Actionable Example of PSP

Problem: A manufacturing plant is experiencing frequent equipment failures, leading to production delays and increased costs.

  • Root Cause Analysis: Using the 5 Whys, the team discovers improper maintenance schedules are the root cause of the failures.
  • Countermeasure: The team develops a new preventive maintenance schedule with routine inspections and repairs based on machine usage.
  • Implementation: The new schedule is piloted in one section of the plant, which leads to a significant reduction in equipment failures.
  • Measurement: KPI’s such as downtime and maintenance costs are monitored.
  • Standardization: After success in the pilot, the preventive maintenance schedule is rolled out across the entire plant as new or modified Standard Work.

A3 Process

The A3 Process is another structured method for solving problems. Known for its concise and visual approach, the A3 Process condenses problem identification, root cause analysis, and action planning onto a single sheet of A3-sized paper. This streamlined format ensures that the problem-solving process is clearly communicated and actionable.

Steps in the A3 Process:

  1. Problem Definition: Clearly define the problem using visual tools like process maps or graphs to show where the problem lies.
  2. Root Cause Analysis: Use tools like the 5 Whys or Pareto Charts to identify the root cause of the problem as well as trends.
  3. Goal Setting: Define specific, measurable goals to guide the team toward a solution.
  4. Action Plan: Develop an action plan outlining specific steps to address the root cause. Assign responsibilities to team members with time bound actions.
  5. Implementation: Execute the action plan while continuously monitoring progress.
  6. Results and Standardization: Measure the results, and if successful, standardize the solution across the organization.

Actionable Example of A3

Problem: A large retail company is experiencing delays in its distribution centers, leading to missed delivery deadlines and customer dissatisfaction.

  • Problem Definition: The issue is an increase in delivery delays, primarily occurring in the order-picking process.
  • Root Cause Analysis: Using the 5 Whys, the team finds that inefficient order-picking paths and poor inventory placement are causing the delays.
  • Goal Setting: The team sets a goal to reduce delivery delays by 20% within three months.
  • Action Plan: Reorganize the warehouse layout, implement a Warehouse Management System to optimize item placement and retrain staff on the new processes.
  • Implementation: The new layout and WMS are piloted in one distribution center for three months.
  • Results and Standardization: After three months, delivery delays are reduced by 25%, and the new system is standardized across all distribution centers.

Key Differences Between PSP and A3

  • Format: The A3 Process is visually structured on a single A3 sheet of paper, providing a concise summary of the problem-solving process. In contrast, the PSP involves more detailed documentation and step-by-step data analysis.
  • Scope: The PSP is best suited for more complex problems that require deep investigations and long-term solutions. The A3 Process is generally applied to simpler, operational-level issues that can be quickly mapped out and solved.
  • Application: The A3 Process is usually applied at the tactical or operational level, while the PSP addresses strategic issues impacting multiple departments or broader business units.

Real-World Examples of PSP and A3 in Action

Example 1: PSP in Manufacturing

Scenario: A global electronics company is facing a rise in defective circuit boards, causing production delays and high rework costs.

  • Problem Identification: The defect rate of circuit boards has increased by 25%; pareto data shows this is mainly due to improper soldering.
  • Root Cause Analysis: Using the 5 Whys, the team discovers that the soldering machine wasn’t calibrated due to missed preventive maintenance.
  • Countermeasure: Implement an automated preventive maintenance tracking system.
  • Implementation: The system is piloted for three months on one machine.
  • Measurement: KPIs show a 50% reduction in defects.
  • Standardization: New Standard Work is developed and rolled out across all plants.

Example 2: A3 Process in Logistics

Scenario: A large retail company suffers delays in its distribution centers, leading to late deliveries and customer dissatisfaction.

  • Problem Definition: Delivery delays have increased by 15% due to inefficiencies in the order-picking process.
  • Root Cause Analysis: The 5 Whys reveal that poor inventory placement is slowing down picking times.
  • Goal Setting: Reduce delivery delays by 20% within six months.
  • Action Plan: Reorganize the warehouse layout and implement a WMS.
  • Implementation: The new system is tested in one region for three months.
  • Results and Standardization: After reducing delays by 25%, the system is standardized across all distribution centers.

Final Thoughts

Both the PSP and A3 Process are essential tools that help organizations address problems at their source, ensuring sustainable solutions. By encouraging collaboration, continuous improvement, and standardization, these methods streamline operations, improve efficiency, and provide long-term value to customers.

Whether you’re addressing operational bottlenecks, solving customer service challenges, or tackling strategic business issues, these structured approaches ensure that your business drives lasting results by addressing and eliminating problems at their root. Including these tools in your problem-solving strategy will shift your focus from temporary fixes to permanent solutions, helping your business deliver value to your customers and thrive in today’s competitive landscape.


Tim Cutts is a results- driven executive.? His 30 years of experience in industries like machine vision, motion controls, factory automation, and worker and workplace safety have given him a uniquely broad and deep understanding of strategic growth.? His passion lies in creating organizations and teams; he loves leading value creation and taking share.? He lives in Frisco, Texas with his wife, Kristin.?

? 2024 Tim Cutts, All rights reserved

Andrew Ellison

Executive Leader | Chief Operating Officer | Vice President | Passionate about developing leaders and building a culture of Continuous Improvement.

5 个月

Good easy read on these powerful tools, thanks for sharing this knowledge, Tim.

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