MBE B1
Anh Dang
Jan Ruecker
Jarrett Robbins
Junyeol Choi
Sakshi Sachdev
Shan Moin
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A Planning and Implementation process that is continuously
improved throughout the year using a PDCA cycle.
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Developed in Japan in early 1950s, is also known as Hoshin
Kanri.

One of the major pillars of TQM in Japan.
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Integrating with Deming’s PDCA circle.

Xerox, HP, Proctor & Gamble, Toyota, Florida Power and
Light …
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Focus on key systems that need to be improved to
achieve strategic objectives
Participation & Co-ordination by all levels &
departments
Planning & execution based on facts
Goals & action plan cascade through the organization
“Catch-ball” concept
Similarity
Difference
• Part of TQM
• Implementation
•
•
•
•
•
Feedback
Focus
Measures
Scope
Vision
Similarity
•
•
•
•
Part of TQM
Implementation
Feedback
Focus
Difference
• Measures
• Scope
• Commitment Requirements
• Difficult to quantify Strategy aspects
• Time & Effort to plan the process
Stage
Five year vision
Interpretation
Formulate the vision and vital few goals
Annual plan
Define what is necessary and sufficient to
realize the vision
Deployment
Agree optimum targets and means for
achievement
Implementation
Identify the necessary tasks to achieve the
means
Monthly review
Teams measure results by self-assessment
Annual review
Confirm five year vision, vital few goals, and
annual plan
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Source: Roberts, P (2011)
“Bring the most reliable and technologically
advanced fun & security on water to Europe
and the UK.”
1.
A high understanding of the EU market and hence
enhance the reputation in the market.
2.
Develop a suitable and robust distribution channel
for EU market
3.
Increase efficiency of the administration
4.
Become leader in advanced technological product
5.
Maintain the high efficiency in the Military/Rescue
sector
HR
Finance
Marketing
Production
Increase sales in
EU by 10%
√
√
√
√
Establish a
distribution
channel in EU
Ⅹ
√
Ⅹ
√
Reorganize
personnel
√
√
√
Ⅹ
Increase
investment in
technology by
￡150 K
√
√
Ⅹ
√

Objective 1: Increase sales in EU by 10%
Departments
HR
Contributions
Develop efficient sales team by hiring sales
personnel for EU market.
Finance
Invest in EU market research on pricing structure
& discounts.
Marketing
Develop new marketing campaign by investing in
marketing.
Production
Research & develop products.

Objective 2: Establish distribution channel in EU
Departments
Finance
Production

Contribution
Analyze the distribution costs.
Find an appropriate distribution channel
(transportation, storage).
Objective 3: Reorganize personnel
Departments
HR
Finance
Marketing
Contribution
Move the wages & salaries manager into finance
department & reduce clerical staff to 1.
Take into account salaries & wages for new sales
representatives
Add 1 external & 1 internal sales representatives
in leisure sales team

Objective 4: Increase investment in technology by
￡150K
Departments
HR
Finance
Production
Contribution
Train & develop personnel
Analyze the investment budget
Research in new technology
Source: Roberts, P (2011)
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Policy Deployment is a useful tool to bring
breakthrough achievement and continuous
improvement
Policy Deployment maximize internal
resources

Anand Sharma, January 11, 2008, Plan For Success Through Policy
Deployment.

Glenn H. Mazur, Strategy deployment for small and medium enterprises,
International Council for QFD, University of Michigan.
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Roberts, P. & Tennant, C., Perspective: Application of the Hoshin Kanri
methodology at higher education in the UK

Witcher, B. & Butterworth, R., Hoshin Kanri: How Xerox Manage

Tennat, C. & Roberts, P., Hoshin Kanri: A tool to strategic policy
deployment