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Hoshin
Hoshin
Hoshin
Hoshin
Hoshin
Hoshin
Hoshin
Hoshin
Hoshin
Hoshin
Hoshin
Hoshin
Hoshin
Hoshin
Hoshin
Hoshin
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Hoshin

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  • 1. Hoshin Kanri: The Art of Closing Gaps Dr. Nariman Panahian, PMP [email_address] [email_address]
  • 2. Corporate Values: management compass technique <ul><li>Communications </li></ul><ul><li>Leadership </li></ul><ul><li>Accountability </li></ul><ul><li>Responsibility </li></ul><ul><li>Integrity </li></ul><ul><li>Quality </li></ul>
  • 3. Hoshin <ul><li>Originated in the 1960ies in Japan; </li></ul><ul><li>Variant of Management by objective [MBO] </li></ul><ul><li>First reported by Quality Guru Joseph M. Juran (http://www.juran.com/) </li></ul><ul><li>Is a form of strategic planning known as breakthrough or management compass </li></ul><ul><li>Demonstrates some degree of similarity to teachings of Kepner-Tregoe on situational appraisal </li></ul><ul><li>An important tool for change management </li></ul>
  • 4. Focusing on Strategic planning issues: <ul><li>Do we have right set of competencies and capabilities? </li></ul><ul><li>What is going to be our long range product strategy? </li></ul><ul><li>Should we acquire companies? </li></ul><ul><li>Do we need strategic alliances? </li></ul>
  • 5. What Happens during Effective Strategic Planning? <ul><li>Core competencies and capabilities are developed </li></ul><ul><li>Organizational learning takes place </li></ul><ul><li>Integration strategy is developed </li></ul><ul><li>Framework for breakthroughs organized </li></ul>
  • 6. Kaizen vs Hoshin <ul><li>Offers small size Improvements </li></ul><ul><li>Largely tactical </li></ul><ul><li>Part of daily management process </li></ul><ul><li>Does not require senior management support </li></ul><ul><li>Offers Large Improvements </li></ul><ul><li>Strategic </li></ul><ul><li>Driven from the executive suite </li></ul><ul><li>Requires senior management support [MBO] </li></ul>
  • 7. Important First Steps: <ul><li>Review Corporate Vision </li></ul><ul><li>Were previous corrective actions successful? </li></ul><ul><li>Define “STOF” (strategic, tactical, operational, financial detail) </li></ul><ul><li>Did STOF goals add value to your organization? </li></ul><ul><li>What is the level of conflict in your organization? What stakeholder management tools have you used? </li></ul>
  • 8. Hoshin uncovers problems: <ul><li>Vision is not shared/understood by everyone within the organization </li></ul><ul><li>Strategy is discussed less than 1 hr per month </li></ul><ul><li>Planning is not considered an ongoing process and is done in the absence of actual supporting data </li></ul><ul><li>Employees/managers are not able to analyze and interpret statistical findings </li></ul><ul><li>Collecting Balanced Scorecard metrics is considered a waste of time </li></ul>
  • 9. Assessment of Present Situation with SWOT 1. Recession 2. Disruptive products Relaxed regulatory require-ments Outdated technology Core competency difficult for competitors to copy Legal Problems Sustaining technology Obsolete facility Top Manu-facturing facility Competition New Markets No strategic focus Brand name Leader Threat (External) Opportunity (External) Weaknesses (Internal) Strengths (Internal)
  • 10. Source of breakthroughs <ul><li>Sustaining and disruptive technologies </li></ul><ul><li>Innovative management </li></ul><ul><li>Change management </li></ul>
  • 11. What do we do? <ul><li>We need to assess how far is the present situation from the envisioned step </li></ul><ul><li>What are our Alert and Action Responses set at? </li></ul><ul><li>How big is the gap separating us from realistically achieving goals? </li></ul><ul><li>Finding Root-cause of problems early </li></ul><ul><li>Thoroughly assessing the need for a change </li></ul>
  • 12. Risk <ul><li>Customer complaints pouring in, customer satisfaction record low </li></ul><ul><li>Persisting quality problems that refuse to go away </li></ul><ul><li>Value added per employee is less than $50-75K </li></ul><ul><li>Projects do not have senior management support </li></ul><ul><li>FTEs unskilled, high employee turnover </li></ul>
  • 13. Risk <ul><li>Outdated technology & facility </li></ul><ul><li>Regulatory problems </li></ul><ul><li>Lost marketing niche, high competition few market segments remaining </li></ul><ul><li>Threat of new entrants, our product is not a brand name and cannot be differentiated </li></ul><ul><li>Patent problems </li></ul>
  • 14. Mitigation strategies coordinated by Hoshin <ul><li>Quality improvements to existing products, making a better product: DFX, SS, Lean, Ax.D., QFD, TQM, TPM, CFM, </li></ul><ul><li>JIT </li></ul><ul><li>Benchmarking to other industries; </li></ul><ul><li>Review of New product development strategies. </li></ul><ul><li>Timely Introduction of Stage-Gate innovation process (http://www.stage-gate.com/) </li></ul>
  • 15. Hoshin relies on classic Quality tools: <ul><li>Radar Chart for Gap analysis </li></ul><ul><li>Interrelationship digraph (ID) for root cause and cause-effect relationship </li></ul><ul><li>Ishikawa diagrams: machines, materials, processes, people </li></ul><ul><li>Process decision Program chart (PDPC): exceptional for deployment and review stages of Hoshin Planning </li></ul><ul><li>Benchmarking </li></ul><ul><li>VOC (Voice of the customer) </li></ul>
  • 16. Problem Solving Techniques <ul><li>PDCA (Shewhart) </li></ul><ul><li>DMAIC (ASQ.org) </li></ul><ul><li>DMADV (define, measure, analyze, design, verify) </li></ul><ul><li>OODA Loops: Observe, orient, decide act </li></ul><ul><li>Data cycle: Collection, fusion, analysis, production of data </li></ul>

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