Hoshin Kanri
Lean Enterprise Series
© 2009 Factory Strategies Group LLC. All rights reserved.
Outline
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Definition of Hoshin Kanri
History of Hoshin Kanri
Introduction to Hoshin Kanri
Implementing Hoshin Kanri
Summary
© 2009 Factory Strategies Group LLC. All rights reserved.
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Hoshin Kanri
Hoshin Kanri is a step-by-step planning,
implementation and review process for managed
change. It is a systems approach to the
management of change in critical business
processes.
Hoshin Kanri is a proven technique that helps
organizations focus efforts and achieve results.
© 2009 Factory Strategies Group LLC. All rights reserved.
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History of Hoshin Kanri
• After World War 11, Japan was faced with the difficult
task of rebuilding its economy and infrastructure
without out allowing the military to be rebuilt.
• Hoshin Kanri is a planning process that was developed
in Japan but it is based on the US techniques of
Management by Objectives and the classical Plan-DoCheck-Act (PDCA) improvement cycle.
• Hoshin Kanri is used to communicate company policy to
everyone in the organization
• Its primary benefit is to focus activity on the key things
necessary for successes.
• Japanese Deming Prize winners credit Hoshin as being a
key contributor to their business success.
© 2009 Factory Strategies Group LLC. All rights reserved.
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Introduction: Process
Top Management sets the
overall vision and the annual
high-level policies and targets
Each level pass on
targets to the next
level.
Each level under top management
is, in turn, involved with the level
above it to make sure that its
proposed strategy corresponds to
requirements.
At each level down,
managers and employees
participate in the
definition, from the overall
vision and their annual
targets, of the strategy and
detailed action plan
© 2009 Factory Strategies Group LLC. All rights reserved.
Regular reviews take place to
identify progress and problems, and
to initiate corrective action.
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Critical Behaviors
Leadership must take steps to close the gap between
today’s performance and an organization’s vision.
• People seem to need either a crisis or goals to achieve
extraordinary outcomes.
• Research shows that performance-focused management
practices can increase performance by at least 30-40%*
• Hoshin combines long and short-term planning methods
with quality and objective management methods to
produce a plan-to-do-act cycle.
© 2009 Factory Strategies Group LLC. All rights reserved.
*Julia Graham: “Developing a Performance-based Culture” – The Journal for Quality and Participation, 2004
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Fundamental Systems
There are two management systems fundamental
to Hoshin: daily and cross-functional management
systems.
Daily Management System
Cross-Functional Management System
• deals with the operation and
monitoring of micro work processes
• supports identification of task level
work, creation and improvement of
task level work processes,
• supports subject matter experts
• provides communication to
management and cross functional
work team
• encourages participation and
involvement
• The improvement of processes
spanning the entire organization
• Addressing issues such as product
or service quality
• Lean Six Sigma is one example
• Critical to the management of an
organization’s vision and mission,
identification and management of
cross-functional work processes,
and issues and cross-functional
work process improvements
© 2009 Factory Strategies Group LLC. All rights reserved.
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Breakthrough Performance Plans
Annual Plan
• The gap between the long-range plan and business
fundamentals plan provides motivation for change
• The long-range plan is the basis for the annual plan
which identifies what must be accomplished this year
to move the organization along the path to the future
as specified in the long-range plan
• It is very detailed and lays the foundation for what
must be accomplished in the way of improvement
(change) and how success will be measured
• Unlike the long-range plan, the annual plan likely will
change significantly year to year
© 2009 Factory Strategies Group LLC. All rights reserved.
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