An A3 REPORT is a one-page report that derives its name from the paper size (A3) used for the

document. Building consensus through a3 reports is the tool used to communicate and build consensus
in Toyota. In building consensus, it is important to: develop your ideas. When an idea is being
considered that will require consensus, it is often wise to discuss it with a few others before writing an
A3. This is to confirm the interest level and backing for the idea before committing substantial time to it.
Also, it is also important to define stakeholders. A stakeholder is anybody directly or indirectly impacted
by the project. The first draft of A3 will often function as ‘TATAKIDAI’ or “BEAT-UP DOCUMENT”
(TATAKU means beat, DAI means paper). This is a rough draft that represents the ideas.

The term NEMAWASHI FOR INPUT was also covered by A3 Report. NEMAWASHI ( 根 回 し ) means
‘GOING AROUND THE ROOTS’. The original word originated from a gardening term for digging around
the roots of a plant and preparing it for transplant (NE 根 MEANS ROOT, MAWASU 回し MEANS TO GO
AROUND). It has been adapted into a business context referring to a method of preparing for the
transplant of ideas by sharing them and getting input. The art and science of Nemawashi includes
RELATIONSHIP – BE PERSONABLE, RELATIONSHIP – BUILD PARTNERSHIP, RELATIONSHIP – BE
PROACTIVE, RELATIONSHIP – BUILD PYRAMID, COMMUNICATION – BE PROVIDER, COMMUNICATION
– BEGIN WITH PEERS, COMMUNICATION – BREAK FOR PREVIEW, COMMUNICATION – BARE
PROSPECTS

In writing Final A3, an effective A3 must have a clear purpose. In other words, why are you
writing this A3. Then, the final A3 will be used to gain approval for the activity

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TOYOTA’S BUILDING CONSENSUS THROUGH A3 REPORT

TOYOTA’S PRINCIPLES AND PRACTICES

 TOYOTA WAY – the company philosophy and values that are the foundation for all work in Toyota.

 PDCA (Plan Do Check Act) – the approach to business in Toyota to achieve continuous improvement.

 BUILDING CONSENSUS THROUGH A3 REPORTS – the tool used to communicate and build consensus in
Toyota.

 TOYOTA BUSINESS PRACTICES – the daily problem solving methodology that puts the philosophy,
values, approach, and tools into practice.

 ON THE JOB PRACTICES – the management method to grow and sustain the skills and abilities of
Toyota members and sustain company know-how.

 HOSHIN KANRI – the system that enables the company to translate the company vision into objectives
and actions in all function and at all levels of the company.

These Toyota principles and practices create an organization capable of sustained maximum
performance that leads to long term prosperity.

WHAT IS A3 REPORT?

► An A3 REPORT is a one-page report that derives its name from the paper size (A3) used for the
document.

► The A3 FORMAT is used to condense complex message into a concise, easily understandable
document. The information on an A3 is logically structured fact-based, and visual.

► The A3 PROCESS is a simple way of getting a problem, an analysis, a corrective action or an action
plan written down on a single sheet of large paper, often with the use of graphics. Many manufacturers
use it as a powerful lean management tool. It's just a piece of paper.

WHY CONSENSUS?

► Toyota is a TEAM-ORIENTED CULTURE based on RESPECT FOR PEOPLE.

BUILDING UNDERSTANDING AND SUPPORT of stakeholders diminishes resistance and potential

obstacles during implementation. The result is a smoother and quicker implementation.

THE CONSENSUS BUILDING PROCESS

CONSENSUS MEANS:

• A general agreement about something: an idea or opinion that is shared by all people in a group.
The consensus-building process at Toyota is represented in the diagram below: TMP TECH TOYOTA WAY
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DEVELOP YOUR IDEAS

► When an idea is being considered that will require consensus, it is often wise to discuss it with a few
others before writing an A3. This is to confirm the interest level and backing for the idea before
committing substantial time to it.

DEFINE STAKEHOLDERS

► A stakeholder is anybody directly or indirectly impacted by the project.

Examples of stakeholders are:

- The customers who receive the deliverables.

- Your management.

- Your Project team.

An easy way to define who, your stakeholders are, is to consider the following:

• Who must APPROVED the final decision?

- This always includes your supervisor and those above you in the management line of command. You
may also need approval from others outside your immediate management line that also have
responsibility for the outcome of the proposal.

• Who should provide INPUT?

- This also includes those in a position to implement or prevent the implementation of the decision. This
group is key as you must have their support to be successful.

- And you should consider those who have knowledge or experience that would be beneficial to the
activity. It is necessary to involve all of these people to ensure you do not bypass important information
or opinions.

• Who needs to KNOW about the activity?

- This includes representatives of your customer group or those who will be impacted by the outcome of
your activity and will need to know about it at the time implementation. This could be a large group, but
during the A3 review and decision time, a review with a few well-chosen representative members of the
group should suffice.
DRAFT TATAKIDAI

► The first draft of A3 will often function as ‘TATAKIDAI’ or “BEAT-UP DOCUMENT” (TATAKU means
beat, DAI means paper). This is a rough draft that represents the ideas.

The TATAKIDAI will be used to initiate discussions with the stakeholders to reveal new ideas or
viewpoints, and to invite stakeholders to identify gaps, contradictions or inconstancies in the thinking.
These discussion or brainstorm sessions provide necessary input to enrich the content for the final
document.

NEMAWASHI FOR INPUT

NEMAWASHI ( 根 回 し ) means ‘GOING AROUND THE ROOTS’. The original word originated from a
gardening term for digging around the roots of a plant and preparing it for transplant (NE 根 MEANS
ROOT, MAWASU 回し MEANS TO GO AROUND). It has been adapted into a business context referring to
a method of preparing for the transplant of ideas by sharing them and getting input.

WRITE FINAL A3

► The final A3 will be used to gain approval for the activity.

Questions to consider in completing the final A3:

- Have I consider all the feedback of the different stakeholders? How is this feedback reflected in my
paper? How am I planning to convince those who are resisting my project?

- Is the quality of the final draft sufficient? TMP TECH TOYOTA WAY IV Date Developed: JANUARY 2019
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THE ART AND SCIENCE OF NEMAWASHI (7BPs)

GAIN APPROVAL

► For an A3 that requires a decision, the final A3 must be presented for approval. The proposal chain is
always up through the hierarchical management line starting with the direct supervisor. After receiving
all the management’s approval, then branch out to any other critical decision-makers whose approval is
required.

THE SHIFTING PROCESS

► Approval through the management chain is part of the process of working as a team. The
managements experience and know-how are powerful tools to use in support of the work. Thru the
approval process, the least effective or problem prone ideas are sifted out and the best are kept as part
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THE SHIFTING PROCESS

INFORM AND IMPLEMENT

► Once the approval has been obtained, immediately start to inform those who will be affected by the
activity. The approved A3 document can be used for this communication.

Then implement quickly. Circumstances often change so begin before they do and then follow-thru to
the end.

A3 REPORT - CONTENT

► Documentation of a complex issue may bring to mind mountains of data and reams of paper and an
unmanageable report. But Toyota’s approach is to simplify the issue down to presentation of only the
essential information that can be presented in less than 10 minutes.

AN A3 IS NOT ACTUALLY A REPORT, BUT A STORY WITH A BEGINNING, MIDDLE, AND END. So consider
what the story is that want to tell.

PUROPOSE OF A3 REPORT

An effective A3 must have a clear purpose. In other words, why are you writing this A3?

TYPES OF A3 REPORT

• SHARING INFORMATION A3: Explanatory document sharing information. No evaluate component. Ex:
An explanation of a job, program, project, process, etc.

• PROPOSAL A3: Proposes action that requires a decision. Ex: A budget request for a major expenditure.

• STATUS REVIEW A3: Reveals problems or opportunities. Ex: A production quality report.

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• PROBLEM SOLVING A3: Clarifies issues and recommends countermeasures to achieve a target or ideal.
Ex: A report on how to overcome a problem in production quality.

NEEDS OF THE AUDIENCE

WHAT ARE THE NEEDS OF THE AUDIENCES

• To enable correct interpretation by the reader, consider your audience's level of understanding for
your topic and any new variables that you are introducing.

• Write the document with your most difficult stakeholder in mind and it will also suffice for the most
forgiving.
WHAT ARE THE KEY ELEMENT OF YOUR STORY

• An A3 should contain all the information required for a sound understanding and decision. Define the
5W's and 1H (What, Who, When, Where, Why and How).

• Begin with the end with mind, knowing where you are taking the reader. As you lead the through your
story, consider what data is required to support it. Put the story together with clear rationale in a logical
flow. Failure to deliver there is likely to undermine you audience's willingness to accept your story.

• Within each element, choose the most significant points and eliminated the insignificant points.
Anything beyond the top five points mat not merit attention.

• An A3 reflects a consensus building process within a particular context. When you take it out from that
context other people may have different views on what the document should contain. Because the
context of an A3 is always different there is no universal template.

• Writing an A3 is creative process. When writing an A3, keep your focus by considering how to present
the message so that the stakeholders can understand and make a correct decision.

WRITING AN A3 REPORT

A3 REPORT FORMAT

A3 format should fit the story be . . .

 CREATIVE

 FREE

 INSPIRED

Define the lay-out

1. Title

2. Divide into sections

3. Title and number sections

4. Most important points should fill most space

5. Limit information to essentials

6. Tell story sequentially

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A3 REPORT FORMAT – FILL IN THE DETAILS

A picture is worth a thousand words.

• Use Short Statements

• Use Bullet Points

• Use Numberings

• Use Neutral, Fact based, and Objective Wordings

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• Be careful of Acronyms and Technical Terms

• Must be Readable

• Use Consistent Formatting

• Elements must be equally spaced and aligned

• Avoid Overcrowding and Excessive white spaces

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VISUALIZATION

► It means communicating via pictures, chart, graphs, etc. rather than with words.

Non-verbal, VISUAL COMMUNICATION is often more effective than words, and is especially pertinent in
multi-lingual environments.

VISUALIZATION – 7 QUALITY CONTROL

BROKEN LINE CHARTS are used to analyze processes according to time or order. Run charts are useful in
discovering patterns that occur over time.

PARETO CHARTS are used to display the relative importance of the differences between groups of data.

FLOW CHARTS are pictorial representation of a process or flow of thinking. They provide a common
language or reference point when dealing with a project or process. TMP TECH TOYOTA WAY IV Date
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CAUSE AND EFFECT DIAGRAMS are a pictorial display of a list which identifies and organizes possible
causes of problems, or factors needed to ensure success. It is an effective tool to easily see the
relationship between factors of study, processes, or situations.

HISTOGRAMS are used as a check on specific process parameters to determine where the greatest
amount of variation occurs in the process, or to determine if process specifications are exceeded.

SCATTER DIAGRAMS are used to study possible relationships between two variables. Although these
diagrams cannot prove that one variable causes the other, they do not indicate the existence of a
relationship, as well as the strength of that relationship. TMP TECH TOYOTA WAY IV Date Developed:
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CONTROL CHARTS are used as a check on specific process parameters to determine where the greatest
amount of variation occurs in the process, or to determine if process specifications are exceeded.

GRAPHS AND CHARTS ARE EFFECTIVE WHEN:

 They are titled.

 They include axis title, a legend and the source of the data.

 The data depicts actual facts.

 The information is sized so it is easy to read.

 The scale on the charts is consistent.

 Similar data compared with a different scale can be visually misleading and confusing.

 Targets are clear.

FINISHING TOUCHES

• Ensure to indicate the following on your document:

- Name e.g. John Smith

- Department e.g. Production Control

- Data e.g. Jan 15, 2009

- Document file path e.g. N:/PC Planning/Jan 09 Monthly Report

• It is unfortunate to have a document but not know who wrote it, where the original is stored, or how
recent it is.

• If the A3 needs approval, include

signature boxes to document evidence of the approval. (Lowest to highest rank order right to left).

• If the document contains confidential information, label the document as confidential.

• Check for spelling or grammar mistakes. (Check for spelling and mistake grammar) These can be
distracting and spoil your message.

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A3 REPORT PRESENTATION TMP TECH TOYOTA WAY IV Date Developed: JANUARY 2019 BUILDING
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