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Hoshin Kanri
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Hoshin kanri

  1. 1. Hoshin Kanri http://www.slideshare.net/flevydocs/hoshin-kanri-23280357?next_slideshow=1[6/18/2015 8:56:56 AM] Flevy.com (1118 SlideShares) Follow Published on Jun 21, 2013 This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go … Published in: Business  1 of 68       Hoshin Kanri 9,814 views  0 0 0 0  7 Comments 29 Likes Statistics Notes takisco Hoshin Kanri focuses the entire company on a few vital goals, rather than many. 2 months ago    John Kramer The leaner we get the better is the strategy and management. 2 months ago    kaydak Hoshin Kanri sounds like a really interesting methodology for leading a company to success. 2 months ago    Using Office 2013 Themes and Templates for Branding lynda.com PREMIUM VIDEO Excel 2013 Essential Training lynda.com PREMIUM VIDEO Word 2013 Essential Training lynda.com PREMIUM VIDEO Hoshin planning presentation Lightconsulting 38,101 views Hoshin Kanri Strategy Deployment by Operational Excellence Consulting OPERATIONAL EXCELLENCE CONSULTING 11,070 views Strategic Planning & Deployment Using The X Matrix W225 Robert Mitchell 11,237 views Hoshin Kanri: Creating a Strategy Deployment Plan That Gets Results Karen Martin 5,100 views Hoshin Training - Vision Harold Philbrick 7,741 views Hoshin Kanri Infographics Grant Crow 2,542 views Hoshin kanri and the x matrix small christiannah 7,937 views Metodo hoshin kanri silfrenny1702 14,850 views A Practical Approach to Recommended More from User Post Home Leadership Technology Education Marketing Design More Topics slideshare Login Signup Upload Share your thoughts... Post Search
  2. 2. Hoshin Kanri http://www.slideshare.net/flevydocs/hoshin-kanri-23280357?next_slideshow=1[6/18/2015 8:56:56 AM] Show More 1. © Operational Excellence Consulting. All rights reserved.Hoshin KanriYour NameYour Job Title© Operational Excellence Consulting. All rights reserved. 2. 3© Operational Excellence Consulting. All rights reserved.Workshop Objectives• Gain an understanding of the principles and keyconcepts of Hoshin Kanri• Define the Hoshin Kanri process, tools and keyelements• Describe the Hoshin Kanri step-by-stepapproach to planning, implementation andreview process for managed change• Gain practical knowledge and skills in applyingthe Hoshin Kanri process and tools 3. 5© Operational Excellence Consulting. All rights reserved.Workshop Outline• Introduction to Hoshin Kanri What is Hoshin Kanri? Purpose of Hoshin Kanri Linkages of Hoshin Kanri, BalancedScorecard & MBO Comparison of Hoshin Kanri with MBO• Underlying Principles of HoshinKanri Plan-Do-Check–Act Cycle Pareto Principle Cause-and-Effect Relationship• Hoshin Kanri Process Using PDCAApproach Review of Strategic Planning Process Hoshin Kanri Steps Hoshin Kanri Incorporating the BalancedScorecard Top Management Objective Setting Deployment to Department Managers Operationalize through Projects Performance Review• Hoshin Kanri Tools X Matrix Alignment & Deployment Chart Management Control Chart Daily Management Matrix A3 Report Software for Hoshin Kanri• Elements of Hoshin Kanri Performance Measurements Breakthrough Hoshin Daily Management Cross- functional Management• Management Reviews Types of Reviews Checklist & Guidelines for Reviews• Critical Success Factors• Summary & Closing Comments 4. © Operational Excellence Consulting. All rights reserved.Introduction to Hoshin Kanri 5. 9© Operational Excellence Consulting. All rights reserved.“Total Quality does notguarantee the companieswill produce strategies.Winning strategies mustcome from the minds ofthe leaders, augmentedby inputs from thetroops.”- Edwin ArtztChairman & CEO, Procter & Gamble 6. 11© Operational Excellence Consulting. All rights reserved.“But Apple really beats toa different drummer. Iused to say that Appleshould be the Sony of thisbusiness, but in reality, Ithink Apple should be theApple of this business.”- Steve Jobs 7. 13© Operational Excellence Consulting. All rights reserved.Typical CompanyDoPlanCheckAct 8. 15© Operational Excellence Consulting. All rights reserved.Toyota’s Use of TimeDoPlanCheckAct 9. 17© Operational Excellence Consulting. All rights reserved.Hoshin Kanri• Taken together, Hoshin Kanri means amethodology to capture and concretize strategicgoals as well as to develop the means to bringplans to reality• In other words, Hoshin Kanri is target-meansdeployment 10. 19© Operational Excellence Consulting. All rights reserved.Purpose of Hoshin Kanri 1• Provides a step-by-step planning,implementation and review process formanaged and sustainable change• Facilitates a set of coordinated processes thataccomplish the core objectives of the business• Clarifies specific annual target policies derivedfrom long- and medium-term policies thatencompass the long term visions of thecompany 11. 21© Operational Excellence Consulting. All rights reserved.Benefits of Hoshin Kanri• Every employee is clear of their role and objectives• Leadership evident at all levels• Everyone understands the goals of the organisation• Aligns resources, objectives and metrics to all goalsand nj1990 It's really a superb idea and I like it very much. It's a good strategy of your companies successfulness and wealth increases in future. 3 months ago    Anthony Ponzio I like the idea of building your companies goals from the ground up, ensuring that everyone has a role in the future prosperity of your company. 3 months ago    Strategy Deployment Gerardo Aulinger 23,750 views Hoshin promotion demystifying the x-matrix - manos 5S Supply 6,104 views Deploying Hoshin Kanri as a Competitive Weapon Grant Crow 2,744 views Hoshin Kanri Gianella Toledo Lopez 2,466 views Lean conference 2014 Dan Alexander - Hoshin Kanri Invest Northern Ireland 821 views Hoshin Planning: Vision- driven Leadership for Breakthrough Improvement Vijay_Bijaj 4,389 views Modelo Hoshhin Kanri Kevin Gustavo Nolasco Rodriguez 1,899 views Hoshin kanri siom adcom2015 1,269 views Introduction to strategy deployment Lightconsulting 8,435 views Strategy deployment Musapu 3,477 views EstategíA Hoshin Kanri Jesus Sanchez 16,218 views Introduction to Strategy Deployment Mike Dale 11,887 views
  3. 3. Hoshin Kanri http://www.slideshare.net/flevydocs/hoshin-kanri-23280357?next_slideshow=1[6/18/2015 8:56:56 AM] at all levels of the organization• Employees are involved in setting targets,improvement schedules and reviews• There is a clear line of sight 12. 23© Operational Excellence Consulting. All rights reserved.A Hoshin Kanri System for GoalAlignment•Alignmentthrough entirecompanystructure usingtop-down goalsetting•Eachsubsequentgoal supportsthe previouslevel‟s goalsVerticalalignmentOrganizationGoalsDepartmentObjectivesIndividualObjectivesDepartmentObjectivesIndividualObjectivesIndividualObjectivesIndividualObjectives 13. 25© Operational Excellence Consulting. All rights reserved.Activity 2: Brainstorming ofManagement Initiatives/Projects• In groups, based on your organization‟s Vision,Mission and Values defined in Activity 1, listdown all the management initiatives. Write eachinitiative/program/project on a Post-it note.Time: 10 mins 14. 27© Operational Excellence Consulting. All rights reserved.Comparison of Hoshin Kanri & MBOMBO Hoshin Kanri1. Basics •Behavioral theories•Scoring system•Lean or Total Quality•Control cycle2. Organization •Focused on theindividual•Focused on theorganization and groupsof individuals3. OperatingSystem•Decisions on objectives(“troubleshootingsystem”) •Planning of coherencebetween objectives of theindividuals•PDCA cycle•Management byprocesses•Top-down / bottom-upflows 15. 29© Operational Excellence Consulting. All rights reserved.Comparison of Hoshin Kanri & MBOMBO Hoshin Kanri6. Evaluation ofPerformance•Based on results•Tied to personnelmanagement•Based more on “how”(process) than on results•Integrated into linemanagement- Audit by thedirector/ manager- Self-evaluation ofresults/ objectivesdifferences- Evaluation by “internalcustomers” andcolleagues•No direct link withpersonnel management 16. 31© Operational Excellence Consulting. All rights reserved.Major Weaknesses of MBO• Performance Appraisal as Principal Objective,rather than Business Results• Simple reflection of the budget• Large number of objectives, therefore dispersive 17. 33© Operational Excellence Consulting. All rights reserved.Major Strengths of Hoshin Kanri• Synergy between top-down and bottom-upprocesses• Continuous, systematic management ofprocesses• Rigorous application of PDCA cycle• Emphasis on cause-and-effect relationships 18. 35© Operational Excellence Consulting. All rights reserved.Breakthrough• Breakthrough meansimprovement to asignificantly higherlevel of performance• Lack of breakthrough fora business organizationwould place it in aposition of regression ina competitiveenvironmentThink BIG:Boldly Important Goals 19. 37© Operational Excellence Consulting. All rights reserved.Control• Control implies adherence to acurrent standard• Reasons for maintaining control: Improvement might be uneconomical Few alarm signals Hold the materials, processes andproducts to specification Maintain current performance levels Hold the gains achieved by recentbreakthrough projects 20. 39© Operational Excellence Consulting. All rights reserved.Relationship of Breakthrough & Control• In the situation of “out-of-control”, resources arediverted to address the sporadic problems, whilechronic problems are often neglected• Control is often a pre-requisite for breakthroughto take place• Control implies doing things right• Breakthrough implies doing the right things 21. 41© Operational Excellence Consulting. All rights reserved.Activity 4: Breakthrough & Control• In groups, based on the list generated in Activity 2,classify each initiative/program/project (“Post-it- Note”)under the heading of „Breakthrough‟ or „Control‟.Time: 15 minsBreakthrough Control 22. 43© Operational Excellence Consulting. All rights reserved.Underlying Principles of HoshinKanri• Plan-Do-Check-Act (PDCA) Cycle• Pareto Principle: Focus on the vitalfew• Cause- and-Effect Relationship 23. 45© Operational Excellence Consulting. All rights reserved.Pareto Principle (80/20 Rule)• To identify the “critical few” fromthe „trivial many”.• The top twenty percent of theproblems account for eightypercent of the cost of poor quality.Also called the “80/20” rule.• Emphasize the need to focusresources and attention on theissues which provide the greatestcontributions.P A R E T O D IA G R A Mfo r C o s t o f Q u a lity b yA s s e m b ly P ro c e s s02 5 05 0 07 5 01 0 0 01 2 5 01 5 0 0Wire-bondTrim-formDie-attachMoldingLasermarkDicingA s s e m b ly P r o c e s s$00001 02 03 04 05 06 07 08 09 01 0 0Cumm.%ofCOQ 24. 47© Operational Excellence Consulting. All rights reserved.Cause & Effect• Purpose To identify and structure the causes of a given effect• When to use When investigating a problem, to identify and selectkey problem causes to address When effect of a problem is known, but possiblecauses are unclear To find other causal relationships, such as potentialrisks or causes of desired effects 25. 49© Operational Excellence Consulting. All rights reserved.Activity 5: Target and Means• In groups, brainstorm as many means as possible toachieve the following targets. Identify the top twomeans which have the highest impact on theoutcome.1. Turnaround a loss-making bakery shop by end 20122. Get pre-school children to be well-behaved anddisciplined at home and in public Leading a Lean Implementation Life Cycle Engineering 1,648 views Policy Deployment Lean Enterprise Academy 1,663 views Hoshin kanri Ali Al-Qahtani 1,298 views Hoshin kanri Docente León Agudelo (Instituto Asys- CUR CAT ORIENTE) Rionegro Antioquia Colombia 1,780 views Estrategia "Hoshin Kanri" Paco Alcantar 463 views Better Project Selection using Hoshin Planning and Balanced Scorecards Grant Crow 870 views Policy Deployment Lean Enterprise Academy 7,791 views A3 Thinking Applied to Policy Deployment Didier Rabino, Lbc Sensei 9,611 views OpEx Strategy Planning and Deployment Training Module Frank G. Adler, Ph.D. 2,755 views Hoshin Kanri khairul 7,426 views Policy Deployment Example DMajors 6,796 views Bsc vs hoshin kanri Alberto Alonso 2,315 views
  4. 4. Hoshin Kanri http://www.slideshare.net/flevydocs/hoshin-kanri-23280357?next_slideshow=1[6/18/2015 8:56:56 AM] places3. Climb to the top of Mt. Everest by end 20144. Give up the smoking habit within 3 monthsTime: 10 mins 26. 51© Operational Excellence Consulting. All rights reserved.Review of Strategic Planning ProcessSharedValuesMissionVisionEnvironmentalAssessmentStrategiesStrategic ObjectivesAction PlansReason forexistenceFutureintentGuidingPrinciplesBroad statements of directionCapabilities and risksThings to change or improve (3-5 years)Implementation 27. 53© Operational Excellence Consulting. All rights reserved.Hoshin Kanri Steps 11. Establish organizational vision2. Develop 3-5 year strategic plan3. Develop annual objectives4. Deploy/roll down to departments Departments develop plans and means Focus deployment – not everyone needs to beinvolved in everything Iterative (catch-ball) nature may take time 28. 55© Operational Excellence Consulting. All rights reserved.Catch-Ball ProcessGroup Goals & PrioritiesDivision ObjectivesDepartment ObjectivesSection ObjectivesFrontline Objectives 29. 57© Operational Excellence Consulting. All rights reserved.Strategic Planning IncorporatingBalanced Scorecard & Hoshin KanriCustomerPerspectiveLearning &GrowthPerspectiveBusinessProcessesPerspectiveFinancialPerspectiveTargets Setfor KeyPerformanceIndicatorsProcessExecution &ImprovementProjectPlans &ResourceAllocationDrivesNego-tiationInputsResults – Reflection to Identify ContinuousImprovement Opportunities 30. 59© Operational Excellence Consulting. All rights reserved.There are several areas to focus on whenemploying a strategic planning processCustomerPerspectiveLearning &GrowthPerspectiveBusinessProcessesPerspectiveFinancialPerspectiveTargets Set forKeyPerformanceIndicatorsProcessExecution &ImprovementProject Plans& ResourceAllocationDrivesNego-tiationInputsResults – Reflection to Identify ContinuousImprovement Opportunities(1) Complete full scan of theenvironment includinginput for targets from topmanagement(2) Ensure that all businessobjectives are covered byKPIs and targets are set foreach KPI(3) Apply common filter to listof proposed projects(4) Allocate resources againstportfolio of projects(5) Top management is theowner of the project portfolio(6) Regular reviews based onstandard forms and templates(7) Adopt a process view to reflectimprovement1 2 3 4 5 67 31. 61© Operational Excellence Consulting. All rights reserved.Four Key Phases of Hoshin Kanri• Top ManagementObjective Setting• Deployment toDepartment Managers• Operationalize throughProjects• Review Performance 32. 63© Operational Excellence Consulting. All rights reserved.Phase 2: Deployment to Department ManagersDeployment toDepartment ManagersPROCESS OUTPUTINPUTSCross- functionalResources RequestFunctionalScope?AFinalized first-levelHoshin KanriDeployed asFunctional ObjectivesNoYesB 33. 65© Operational Excellence Consulting. All rights reserved.Phase 4: Review PerformanceMonthly Review ofResultsPROCESS OUTPUTINPUTSQuarterly review ofHoshin KanriActual vs.Planned?Updated Control chartReport of Project StatusInvestigate & takecountermeasures toaddress discrepancyYesNoCRewards & Recognition 34. 67© Operational Excellence Consulting. All rights reserved.Common Hoshin Kanri ToolsAlignment & DeploymentChartFor improvement hoshinDaily Management MatrixFor daily managementGantt ChartFor review purposesManagement Control ChartFor review purposes 35. 69© Operational Excellence Consulting. All rights reserved.(64%) (72%)Alignment & Deployment Chart – HR Example 36. 71© Operational Excellence Consulting. All rights reserved.Daily Management MatrixCustomer PerspectiveFinancial PerspectiveInternal Processes PerspectiveLearning & Growth Perspective 37. 73© Operational Excellence Consulting. All rights reserved.X MatrixStep 1: What? BreakthroughThinkingStep 5: Who?ResourceDeploymentStep 4: HowMuch & When?MeasuresStep 3: How?Which KeyProcesses?Step 2: HowFar? This Year? 38. 75© Operational Excellence Consulting. All rights reserved.Activity 7: Alignment & DeploymentTime: 60 mins• Select an Annual Objective based on Activity 6.Cascade the annual objective down to thefollowing levels using the Alignment &Deployment Chart Division Department Section 39. 77© Operational Excellence Consulting. All rights reserved.Example: A3 Storyboard 40. 79© Operational Excellence Consulting. All rights reserved.Types of Hoshin Kanri• Main Objectives vs. Support Objectives• Improvement (Breakthrough) vs. DailyManagement• Cross- functional vs. Functional• Level of Deployment 41. 81© Operational Excellence Consulting. All rights reserved.Main & Support Objectives• Support objectives are objectives aimed atsupporting the main objectives or improvingthe internal business processes• These objectives are formulated by functionalmanagers Value Stream Transformation: 10 Keys to Success Karen Martin 1,154 views Hoshin Kanri Jesus Sanchez 6,810 views Using hoshin planning for six sigma project selection Ed Powers 478 views Hoshin Kanri 1-day workshop - Handout - AME Conference Toronto 2013 5S Supply 1,739 views Hoshin management Harish GV 52 views Hoshin Kanri Sample ahmad bassiouny 11,915 views A Practioner's View on Hoshin Kanri Business901 2,680 views Strategic Planning Template and Hoshin Kanri Policy Deployment Flevy.com 110 views
  5. 5. Hoshin Kanri http://www.slideshare.net/flevydocs/hoshin-kanri-23280357?next_slideshow=1[6/18/2015 8:56:56 AM] 42. 83© Operational Excellence Consulting. All rights reserved.Hoshin Kanri Deployment TreeFrontlinerSectionManagerDepartmentManagerGMM1Improve ProcessQualityM1.1Improve AssemblyProcess QualityM1.1.1Improve ProcessCapability at FOLM1.1.1.1Improve Bondabilityof MQFP Devices…M1.1.2Implement DefectPrevention at EOLM1.1.2.1Implement VisionSystem for MQFPTrim Process…M1.2Improve TestProcess Quality…… 43. 85© Operational Excellence Consulting. All rights reserved.Concept of Performance Measurements• Performance Measurements are the criticalresults that must be achieved at each level inorder to reach overall organizational goals.• They are determined during the goal setting andalignment process 44. 87© Operational Excellence Consulting. All rights reserved.Key Business Drivers• Critical areas that determine the success for anorganization in a certain strategic approach• Possible Key Business Drivers might include: Innovation Productivity Quality Cost Delivery Service 45. 89© Operational Excellence Consulting. All rights reserved.The Balanced Scorecard ApproachFINANCIALBUSINESS PROCESSESVisionandStrategyTo succeed financially, howshould we appear to ourshareholders?LEARNING & GROWTHCUSTOMERSTo achieve our vision, howwill we sustain our ability tochange and improve?To achieve our vision,how should we appear toour customers?To satisfy our shareholdersand customers, whatbusiness processes mustwe excel at?Source: Kaplan & Norton 46. 91© Operational Excellence Consulting. All rights reserved.Performance Measurements - Benefits• Provide data for evaluating how wellorganizational goals are being achieved• Encourage Management by Fact and ProblemIdentification• Provides a clear format for communicating upand down the management chain• Facilitates project identification• Provide a basis for recognizing goodperformance 47. 93© Operational Excellence Consulting. All rights reserved.Improvement Hoshin• Objective deployment that relates abreakthrough improvement in key areas• Objectives and Goals for Improvement Hoshincould be determined through one orcombinations of the following: Strategic / Business Planning Business Excellence frameworks (e.g. SQA) Managerial grid Benchmarking 48. 95© Operational Excellence Consulting. All rights reserved.Steps in Defining Improvement Hoshin1. Derive target for specific objective2. Perform analysis of past performance of the object being addressed– trend, Pareto analysis and cause-effect relationships, etc.3. Define tactics / means to achieve objective target4. Identify the metrics for the defined tactics / means5. Identify the person(s) responsible and deadline for completing thetactics / means6. Define a forecasted improvement trend for the objective beingaddressed7. Set up a management control chart to plot the actual improvementtrend versus that of the forecasted trend8. Take countermeasures when the actual trend deviates from theforecasted trend 49. 97© Operational Excellence Consulting. All rights reserved.Cascading of Policy DeploymentPolicy Deployment cascades down,with the tactic and targetsat one level becomingthe objective andgoals at thenext level.Objective Goals Tactic TargetsWhat HowMeasure MeasureObjective Goals Tactic TargetsWhat HowMeasure MeasureObjective Goals Tactic TargetsWhat HowMeasure MeasureDepartment ManagerSection ManagerEngineer 50. 99© Operational Excellence Consulting. All rights reserved.Daily Management• Objective deployment related tomaintaining and controlling thecurrent level of performance.• Objectives measurementssubjected to daily maintenanceshould be importantperformance parameters thatrequire regular monitoring. Vitalsigns of how the organization isperforming. 51. 101© Operational Excellence Consulting. All rights reserved.Steps in Defining Daily Management1. Select important performance parameters to be subjectedto Daily Management2. Analyze the capability of the performance parameters overa certain time interval3. Define minimum acceptable level of performance (plan) forthe parameters4. Set up a management control chart to plot the actuallevel of performance versus the minimum acceptablelevel of performance5. Take countermeasures when the actual level ofperformance deviates from the minimum acceptable levelof performance 52. 103© Operational Excellence Consulting. All rights reserved.Cross-Functional Management• Coordination of inter-functionalactivities to achievemanagement goals• Management of horizontal /project organizations that cutacross different functions ordepartments• Incorporate the use of projectmanagement tools 53. 105© Operational Excellence Consulting. All rights reserved.Cross-Functional Integration &Project Management• Hoshin Kanri, in the form of Improvement Hoshin, areoperationalized through projects• Variables affecting the success of projects include: Cross-functional Cooperation (Teamwork) Quality of Project Leadership Systemic Support Reward & Recognition System Availability of Resources Review & Reporting Structure
  6. 6. Hoshin Kanri http://www.slideshare.net/flevydocs/hoshin-kanri-23280357?next_slideshow=1[6/18/2015 8:56:56 AM] 54. 107© Operational Excellence Consulting. All rights reserved.Purpose of Reviews• To monitor the Hoshin Kanri plans and results• To review the status of the projects initiatedbased on improvement hoshin• To monitor key performance parameters andaddress any anomalies• To improve on the Hoshin Kanri process 55. 109© Operational Excellence Consulting. All rights reserved.Key Points to Note for Reviews• Emphasis on corrective actions and systemicsupport to address deviations from plans• Provide opportunities for recognition ofachieved targets and good efforts• Address system issues hindering theachievement of objectives 56. 111© Operational Excellence Consulting. All rights reserved.Monthly Self-Review• Emphasis on self-diagnosis by individuals orteams (process owners) responsible for thepolicy• Monthly self- review should include: Updating the management control chart to checkprogress of the plan Analysis of discrepancies from planned results Follow-up with countermeasures to addressdiscrepancies Reporting the discrepancies and countermeasures 57. 113© Operational Excellence Consulting. All rights reserved.Quarterly Review• More formal review involving functionalmanagement and senior management• Quarterly formal review should include: Review of how the results of lower level objectives arecontributing to higher level objectives Review of the trends of management control charts Presentation of project status Understanding of problems encountered and their causes Evaluate the objectives and make adaptive changes tothe tactics and targets 58. 115© Operational Excellence Consulting. All rights reserved.Annual Review 2• Emphasis on understanding which means led tothe achievement of which targets (cause-effectrelationship)• Standardize resulting improvement to otherareas, where applicable• Document and disseminate lessons learnedfrom Hoshin Kanri of current year 59. 117© Operational Excellence Consulting. All rights reserved.Activity 10: Issues & Challengesof Management Reviews• Identify the top three issues and challenges that you haveencountered in past management reviews. For eachissue/challenge, define a mitigation plan.Time: 15 minsIssue No. Description of Issue/Challenge Mitigation Plan 60. 119© Operational Excellence Consulting. All rights reserved.Checklist for Annual Planning Session 26. Have the employee and customer satisfactionissues been picked up?7. Are there any related strategies that it wouldmake sense to merge into a single strategy?8. Any measures that should have specifictargets over several quarters or several years? 61. 121© Operational Excellence Consulting. All rights reserved.Guidelines for Managing ReviewMeetings 24. Travel and unplanned meetings are kept to aminimum5. Ensure that people are given time for thepreparation of data about the background todeviations from plans (~2 weeks)6. That business units should use same hoshinreview charts/tables to review strategies 62. © Operational Excellence Consulting. All rights reserved.Factors Contributing to EffectiveHoshin Kanri Deployment 63. 125© Operational Excellence Consulting. All rights reserved.Operating Effectiveness• Capacity of organization to achieve majorresults in selected objectives• Factors contributing to operating effectiveness: Continuous improvement as guiding principle Selection of appropriate management levers Performance measurement and feedback systems 64. 127© Operational Excellence Consulting. All rights reserved.Coherence• Three dimensions of coherence Horizontal (Cross-functional) Fit Improvement objectives and actions are aligned across variousfunctions Vertical (Functional) Fit Priority of objectives of subordinates aligns to that of functionalsupervisor Strategic Fit Extent of short-term actions, aimed at short-term objectives,contributing to medium- and long-term objectives 65. 129© Operational Excellence Consulting. All rights reserved.9 Reasons Why Hoshin Kanri Fails1. Wrapping today‟s management process in A3 paper2. Not knowing why3. Setting, broad, vague, shallow objectives4. Cheating on the “therefore” test5. Marking it yellow or red and moving on6. Using the down-up-down process for negotiation, notconsensus7. Happy planning8. Writing your hoshin plan on the computer9. Having a strategy that is too good to be changedSource: gemba panta rei 66. 131© Operational Excellence Consulting. All rights reserved.Key Points / Summary• Hoshin Kanri is a management tool aimed attranslating management objectives to variouslevels of the organization• The main purpose is to achieve Focus andAlignment of organizational objectives• Policy deployment is based on basic principlesof Lean, i.e. customer focus, management byfact, teamwork and continuous improvement 67. 133© Operational Excellence Consulting. All rights reserved.Key Points / Summary• Regular reviews are important to monitor theprogress of the policy deployment• Effective Hoshin Kanri are determined by:operating effectiveness of the organization,coherence of the objectives and mobilizationof individuals and teams involved in the HoshinKanri process
  7. 7. Hoshin Kanri http://www.slideshare.net/flevydocs/hoshin-kanri-23280357?next_slideshow=1[6/18/2015 8:56:56 AM] 68. © Operational Excellence Consulting. All rights reserved.End of PresentationTo view the full list of training presentations,please visit us at:Operational Excellence Consultinghttp://www.oeconsulting.com.sg English Espanol Portugues Français Deutsche About Careers Dev & API Press Blog Terms Privacy Copyright Support LinkedIn Corporation © 2015

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