Recommended
Recommended
More Related Content
Similar to 359281372-Hoshin-Planning.ppt
Similar to 359281372-Hoshin-Planning.ppt (20)
Recently uploaded
Recently uploaded (20)
359281372-Hoshin-Planning.ppt
- 2. 2 freeleansite.com File Number Agenda - Introduction/Ice Breaker 5 min. - What is Hoshin Planning? 2 min. - Why use Hoshin Planning? 24 min. - How to Use Hoshin 35 min. - Questions and Answers 15 min. - Example (tbd) 15 min. - Wrap Up 5 min.
- 3. What is Hoshin Planning?
- 4. 4 freeleansite.com File Number Hoshin Planning • Hoshin is a Japanese term = “compass needle” - Designates setting strategic direction of the organization • For HOS Hoshin is: - A closed loop management system for identifying, focusing and linking the organization to achieve results. Additionally it contains a daily management that drives constant progress monitoring of these results and reacts to issues as they arise • Traces roots to: - Management By Objectives (MBO) – Drucker - Plan-Do-Check-Act (PDCA)- Shewhart/Deming • Sometimes referred to as: - Policy Deployment - Management By Policy - Management By Planning • U.S. Based Companies That Have Embraced It - Danaher, Hewlett-Packard, Proctor & Gamble, Xerox, Florida Power and Light (FP&L)
- 5. Why Use Hoshin Planning?
- 6. 6 freeleansite.com File Number Why do we need Hoshin Planning? • Why?: - Proper alignment requires more than independent establishment of strategies - Hoshin Planning will align those strategies and drive the execution - To Achieve Breakthrough RESULTS! • Common Failure Modes: - No review of actions or accountability - Plans not visible or not measured or measurable - Not aligned or linked to the needs of the site A PROCESS to help drive Results!
- 7. 7 freeleansite.com File Number Hoshin is an active relationship between 2 parts • The two parts of Hoshin are… - Hoshin Management - Daily Management • Hoshin Management (Strategies & Objectives) - Special actions/plans are required to achieve a desired result • Daily Management (Routine KPI Management) - Can achieve targets with usual improvement activity and resources Hoshin Has Two Sides
- 8. 8 freeleansite.com File Number Why Use Hoshing Planning? Improvement Base Base KAIZEN Year 0 Year 1 Year 2 Year 3 Year 4 Base Base Base KAIZEN KAIZEN Strategic Objective is Achieved! Hoshin Planning Hoshin Planning Hoshin Planning To Build Sustainable Competitive Advantage
- 9. 9 freeleansite.com File Number Why Use Hoshin Planning? VS. To Align Objectives and Targets Throughout the Organization
- 10. 10 freeleansite.com File Number Daily Management • Daily Management (Routine KPI Management) - A visual management system to highlight day-to-day issues that drives rapid implementation of countermeasures. - A communication tool that drives alignment to the lowest levels of what is important to the site. - Strong linkage into the Visual Management and Leadership Standardized Work systems at the site Daily, Weekly & Monthly Monitoring of Progress
- 11. 11 freeleansite.com File Number Hoshin Planning Summarized Both Controlled by Rigorous Process Control Systems and measured frequently to drive results OBJECTIVES STRATEGIES Cash Growth QMS People STRAP AOP Daily Mgt. Hoshin Management All activities necessary to carry out the routine work for the SBU Defined to follow and be governed by… Rapid Problem Solving methods PDCA Demonstrated through standardized work On the shop floor Controlled and driven through Leadership Standardized Work in daily gemba walks
- 12. How to Use Hoshin?
- 13. 13 freeleansite.com File Number Top Mgt Middle Mgt Supervisor Front Line Associate Breakthrough Daily Management Kaizen How Should You Spend Your Time? What Does Hoshin Planning Mean To You? Adapted From Beyond Strategic Vision, Effective Corporate Action With Hoshin Planning; Cowley, Domb, 1997 pg. 57
- 14. 14 freeleansite.com File Number Timing of Hoshin Planning JULY AUGUST SEPT OCT NOV DEC STRATEGIC PLANNING HP LEV 1 COMPLETE ACTION PLAN DEV COMPLETE JAN NEW YEAR HP BEGINS HP LEV 2 & 3 COMPLETE CONCURRENT BUDGETING PROCESS
- 15. 15 freeleansite.com File Number Deploy Improvement Priorities Develop Annual Breakthrough Objectives and Improvement Priorities Monthly Review Implement Improvement Initiatives 7 Phase Hoshin Planning Process Annual Review PLANNING IMPLEMENTATION REVIEW Establish Organizational Vision Strategic Planning/ Develop 3-5 Year Breakthrough Objectives Annual Review Self-Diagnosis Root Cause Countermeasures Catchball Lean SS CAP Critical Step P D C A
- 16. 16 freeleansite.com File Number The Process of Critical Thinking (PCT) Step 1 : WHAT Breakthrough Thinking Step 3 : HOW Identify Key Driver Process Step 4 : HOW MUCH/ WHEN Determine Measures & Track Step 5 : WHO Identify Key Resources & Deploy Step 2 : HOW FAR Annual Breakthroughs
- 17. 17 freeleansite.com File Number PCT Step 1 – WHAT? Current Situation Breakthrough Objective Current Situation World-Class Industry Standard Best-In-Class GAP Breakthrough Thinking Leads us to World Class
- 18. 18 freeleansite.com File Number PCT Step 2 - HOW FAR? Annual BT Objectives Yr 2 Current Situation Annual BT Objectives Yr 3 Annual BT Objectives Yr 1 Breakthrough Objective Yr 1 Yr 2 Yr 3 Identify First Year Breakthrough Objective
- 19. 19 freeleansite.com File Number PCT Step 3 - HOW? Why? GAP Annual Breakthrough Objective Current Situation Why? Why? Why? Why? Improvement Priority Identify Key Driver Processes
- 20. 20 freeleansite.com File Number PCT Step 4 - HOW MUCH/ WHEN? Determine Measures & Track 0 100
- 21. 21 freeleansite.com File Number PCT Step 5 - WHO? 40% 20% 20% Identify Key Resources & Deploy Relative Impact On Improvement Priorities Current Distribution Of Resources Resource A Team B Resource C Resource D Team E 100% 0% 0% 100% 3%
- 22. 22 freeleansite.com File Number Daily Management and Hoshin Planning Improvement Daily Mgmt Daily KAIZEN Year 0 Year 1 Year 2 Year 3 Year 4 Daily Daily Daily KAIZEN KAIZEN Hoshin Planning Hoshin Planning Once Breakthrough is achieved… process is standardized to Daily Management! Strategic Objective is Achieved! Mgmt Mgmt Mgmt Mgmt Foundation for HP Hoshin Planning
- 23. 23 freeleansite.com File Number Top Level Improvement Priorities HOW Annual Breakthrough Objectives HOW FAR 3-5 Year Breakthrough Objectives WHAT Targets to Improve HOW MUCH PCT & the Top Level HP Matrix All items are listed in priority order starting from the center RESOURCES = Primary Responsibility = Secondary Responsibility WHO OWNER Annual Metrics
- 24. 24 freeleansite.com File Number RESOURCES Annual Breakthrough Objectives Targets to Improve 3-5 Year Breakthrough Objectives Top Level Improvement Priorities = Primary Responsibility = Secondary Responsibility 5- WHO 4- HOW MUCH Use dots to show relationship of Targets and Resources to the Improvement Priority 3- HOW Use dots to show relationship of Improvement Priorities to Annual Objectives 2- HOW FAR 1- WHAT NOTE: Only Solid dots on a resource deploy to the next level The whole picture of your company on one sheet of paper! Complete Top Level HP Matrix OWNER
- 25. 25 freeleansite.com File Number 3-5 Year Breakthroughs Targets To Improve Top Level Improvement Priorities Linkage on the Matrix Annual Breakthrough Objective Dots show linkage from Target back to Breakthrough for that level
- 26. 26 freeleansite.com File Number • As soon as a solid dot is placed above a resource, that resource will get a lower level matrix or an action plan. • Clear circles indicate support resources. They do NOT get a lower level matrix or action plan unless they get a solid dot on another matrix. • The dots are to be used as a sanity check • The Improvement Priority is deployed to the lower level matrix or an action plan Second Level Policy Deployment l Primary Responsibility m Secondary Responsibility RESOURCES Annual Breakthrough Objectives Targets to Improve Danaher Business System Office - Policy Deployment 1998 l Primary Responsibility m Secondary Responsibility Resources Top Level Improvement Priorities 3-4 year Breakthrough Objectives Annual Breakthrough Objectives TOP LEVEL - Company Top Level Improvement Priorities Targets to Improve SECOND LEVEL - Plant Second Level Improvement Priorities Points to Remember about the Matrix
- 27. 27 freeleansite.com File Number Transferring Improvement Priorities to the 2nd Level Second Level Policy Deployment l Primary Responsibility m Secondary Responsibility RESOURCES Top Level Improvement Priorities Annual Objectives Target to Improve SECOND LEVEL TOP LEVEL Policy Deployment 2004 l Primary Responsibility m Secondary Responsibility Resources Annual Breakthrough Objectives Breakthrough 3-5 Year Objectives Target to Improve TOP LEVEL Breakthrough Second Level Improvement Priorities Top Level Improvement Priorities Typically, a 2nd Level Matrix is created for a primary resource for each top-level Improvement Priority. Imp. Priorities and Annual Objectives are copied directly onto the 2nd Level HP. Matrices. The 2nd level 12 o’clock and 3 o’clock positions have all new text in them – nothing is rotated into them from level 1.
- 28. 28 freeleansite.com File Number Transferring Improvement Priorities To The 3rd Level SECOND LEVEL If necessary, a 3rd Level Matrix is created for a primary resource for each second- level Improvement Priority. Top Level and Second Level Imp. Priorities are copied directly onto the 3nd Level HP Matrices. THIRD Level Policy Deployment l Primary Responsibility m Secondary Responsibility RESOURCES Top Level Improvement Priorities Target to Improve THIRD LEVEL SECOND LEVEL Policy Deployment 2004 l Primary Responsibility m Secondary Responsibility Resources Target to Improve Second Level Improvement Priorities Top Level Improvement Priorities Annual Breakthrough Objectives Second Level Improvement Priorities Third Level Improvement Priorities Not always suggesting you need 3rd Level. Based on size, complexity, breadth, and maturity of organization.
- 29. 29 freeleansite.com File Number Annual Breakthrough Objectives Targets to Improve 2nd Level Improvement Priorities RESOURCES = Primary Responsibility = Secondary Responsibility 5- WHO 4- HOW MUCH/WHEN Use dots to show relationship of Targets and Resources to the Improvement Priorities 1- HOW FAR 3- HOW Use dots as a check to make sure the Improvement Priorities & Targets meet the goal and support the Annual Breakthrough Objectives Top Level Improvement Priorities Use dots to show relationships between Improvement Priorities and Annual Objectives 2- HOW Completing the Second Level PD Matrix OWNER
- 30. 30 freeleansite.com File Number Cascading Priorities to ACTION = Original Plan x = Progress at Review Action Step/ Kaizen Events Milestone Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec Improvement Priority Title: * Department/Location: * Management Owner: * Date: * Core Objective: * Timeline Target Improvement Planned Dates Policy Deployment Action Plan Review Team: * Next Review: * Environmental Situation Summary: * Status ( P a st Due i n Re d ) Impact Owner (Lead is bold) 2003 Second Level Policy Deployment l Primary Responsibility m Secondary Responsibility RESOURCES Target to Improve SECOND LEVEL – Plant/Business Danaher Business System Office - Policy Deployment 1998 l Primary Responsibility m Secondary Responsibility Resources Annual Breakthrough Objectives 3-5 Year Breakthrough Objectives Target to Improve TOP LEVEL – Company/Group POINT OF IMPACT - ACTION PLAN Engineer/Supv Cascade as many times as necessary to the Root Cause Level Point of Impact - Action Plan The level where root causes are addressed! Action Plans can be initiated out of any matrix level. POINT OF IMPACT Second Level Policy Deployment l Primary Responsibility m Secondary Responsibility RESOURCES Target to Improve ROOT CAUSE LEVEL- Sub Plant/Dept Annual Objectives Breakthrough Top Level Improvement Priorities Second Level Improvement Priorities Top Level Improvement Priorities Top Level Improvement Priorities Second Level Improvement Priorities Third Level Improvement Priorities
- 31. 31 freeleansite.com File Number = Original Plan x = Progress at Review Action Step/ Kaizen Events Milestone Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec Target Improvement Planned Dates Status ( P a st Due i n Re d) Impact Hoshin Planning Action Plan Review Team: * Next Review: * Environmental Situation Summary: * Improvement Priority Title: * Department/Location: * Management Owner: * Date: * 2004 Core Objective: * Timeline Owner (Lead is bold) Step 4: Identify the impacts on the improvement priority and top level breakthrough objective Step 1: Determine actions & write on worksheets Step 2: Record ownership and timing of the actions Step 3: What is the current status of the action. Color code background as red to show items past due. Create an Action Plan For every Improvement Priority at the Point of Impact Creating Action Plans
- 32. 32 freeleansite.com File Number Breakthrough Objective: Attain competitive advantage in Delivery Performance Action Step 1: VSM Customer Service Process Action Step 2: SW Kaizen to improve productivity by 35% Action Step 3: VRK to reduce Quote processing time by 50% POINT OF IMPACT POINT OF IMPACT POINT OF IMPACT Actions = Cause Effect = Cause Effect = Cause Effect = Results! Action Steps Complete the Cause & Effect Chain Top Level Improvement Priority: Use HOS Tools to improve value stream of Engineer-to-Order Process Annual BT Objective #1: Streamline Engineer-to-Order Processes Second Level Improvement Priority: Implement Improved Order Entry Process
- 33. 33 freeleansite.com File Number Where VSM and Fits Into The Process Breakthrough Objectives Annual BT Objectives Top Level Imp Priorities 2nd Level Imp Priorities Value Stream Mapping Action Plans
- 34. 34 freeleansite.com File Number = Original Plan x = Progress at Review Action Step/ Kaizen Events Milestone Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec Target Improvement Planned Dates Status ( P a st Due i n Re d) Impact Hoshin Planning Action Plan Review Team: * Next Review: * Environmental Situation Summary: * Improvement Priority Title: * Department/Location: * Management Owner: * Date: * 2004 Core Objective: * Timeline Owner (Lead is bold) DASHBOARD/SCORECARD Action Plans Drive The Rate Of Improvement
- 35. 35 freeleansite.com File Number Scorecards Targets To Improve are entered in priority order Planned targets are established for each month based on the overall Target to Improve. An actual that is a miss from the plan, is color coded red JOP – Jumping Off Point from which you started tracking the target YTD ACT – Each month this field gets updated (is YTD from the monthly fields located to the right)
- 36. 36 freeleansite.com File Number TOP LEVEL SCORECARD CHART Each Target is Copied to the Top Level Scorecard Reduce New Prod. Dev. Cycle ANNUAL BT OBJECTIVES TARGET TO IMPROVE 3-5 YEAR BREAKTHROUGH OBJECTIVE TOP LEVEL IMPROVEMENT PRIORITIES Increase Market Share to 60% Dev. Cycle to 120 Days by 12/95 RESOURCES Production Department Marketing Department Engineering Department Finance Department Sales Department Human Resources Dept. Materials Department = Primary Responsibility = Secondary Responsibility TOP LEVEL MATRIX
- 37. 37 freeleansite.com File Number Second Level Policy Deployment l Primary Responsibility m Secondary Responsibility RESOURCES Annual Breakthrough Objectives Top Level Improvement Priorities Targets to Improve SECOND LEVEL SCORECARD Danaher Business System Office - Policy Deployment 1998 l Primary Responsibility m Secondary Responsibility Resources Top Level Improvement Priorities 3-5 year Breakthrough Objective Annual Breakthrough Objectives Target s to Improve TOP LEVEL SCORECARD Scorecards are Created for All HP Matrices 2nd Level Improvement Priorities Title
- 38. 38 freeleansite.com File Number The Review Process – Ensure Plan and Learn • Execute to the plan and perform daily, weekly and monthly reviews of each action plan (Daily Mgt.) • Reviews are designed to keep the Hoshin Plan on track - Improvement Action owners don’t come to be evaluated - The intent is to present the results of self assessment • The review team provides focused assistance primarily around the owner’s analytical process and preparation. - What did you plan to do? (Plan) - What did you actually achieve? (Do) - How does actual vs. target compare (CHECK) - Standardize what’s working, implement countermeasures and/or plan again as required. (ACT) Execute To The Plan Conduct Regular Reviews P C A D
- 39. 39 freeleansite.com File Number Manage Daily Management Through Leadership Standard Work • Embed the Hoshin Plans into Leadership Standard Work • Make the Hoshin review process part of the daily, weekly and monthly audit process • The key is to constantly monitor progress and drive accountability to the lowest level
- 40. $136k monthly miss is due to Delayed Evaluation Kit Development, Insufficient Sales Prospects and Delayed Print Engine Delivery. Problem Statement: What Short-Term: 10/28/03 Long-Term: 12/15/03 Countermeasures How Much (Impact) $61 Who Short-Term: MJF Long-Term: JBR RZ/ MJF Addressed Root Cause: Delayed Print Engine Delivery Execute kanban re-sizing process for Printos at once per quarter frequency (currently twice-per-year…which is not frequent enough for ramping production). DW/HW Addressed Root Cause: Delayed Evaluation Kit Development Short-Term: Assign additional Engineer to complete evaluation kit development (delayed one month) in time for ITMA show. Long-Term: Update Tollgate process to include Engineering development for necessary targeted-vertical launch kits. Addressed Root Cause: Insufficient Sales Prospects Execute Sales Funnel Targets for UK 'T' Shirt outlet…twice per week follow-up on Sales Funnel Targets with Sales Engineer. Third Level HP Countermeasure Sheet Improvement Priority: Targets to Improve: Process and organization to grow Printos sales in textiles and ceramics Increase Printos valve/module sales in textiles & ceramics from $100k to $2,500k in 2003 $48 When $27 10/15/03 10/22/03 Run Chart $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 2003 Plan 2003 Actual 2003 Plan $0 $20 $3 $65 $65 $123 $345 $397 $286 $333 $400 $453 2003 Actual $0 $21 $22 $61 $136 $164 $330 $350 $150 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Pareto (the "Why" you missed) 0% 10% 20% 30% 40% 50% Percent 45% 35% 20% Delayed Evaluation Kit Development Insufficient Sales Prospects Delayed Print Engine Delivery Run Chart $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 2003 Plan 2003 Actual 2003 Plan $0 $20 $3 $65 $65 $123 $345 $397 $286 $333 $400 $453 2003 Actual $0 $21 $22 $61 $136 $164 $330 $350 $150 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Pareto (the "Why" you missed) 0% 10% 20% 30% 40% 50% % 45% 35% 20% Delayed Evaluation Kit Development Insufficient Sales Prospects Delayed Print Engine Delivery
- 41. 41 freeleansite.com File Number 5 Why Analysis • Systematic method to drive to the true root cause(s) of a problem • Simply ask “why” in a step ladder approach until fundamental root cause is discovered. Root cause is not simply listing the symptoms of a problem • Normally, after up to 5 steps, the true root cause(s) will be exposed
- 42. 42 freeleansite.com File Number Action Plans vs. Countermeasures? Inventory Reduction Plan 0 10 20 30 40 50 60 J F M A M J J A S O N D Plan Actual Action Plans are proactive – they address how to achieve a particular goal from the jump off point (JOP) to the stretch target Countermeasures are reactive – they address how to get back to plan when a goal is missed for a period HP miss Jump Off Point (JOP) to stretch target
- 43. 43 freeleansite.com File Number • Establish the Growth Agenda for Today’s HP Review • Financial Review • Hoshin Planning - Road Blocks to Growth, Major Predetermined Topics - Established HP Growth Initiatives - New Product Development - Remaining HP Elements (Q, D,C) • KPI’s • People/Org. Issues • Other Business 5% 15% 60% 20% Monthly HP/ISC Review Agenda Format Monthly PD is typically an 8 hour meeting Follow a typical MOR session
- 44. 44 freeleansite.com File Number Hoshin Planning Summary • Aligns Strategy and Execution • Systematically develops and links plans from organizational vision to operational tactics • Ensures deep and common understanding and maximizes ownership and buy-in to plan • Requires thoughtful, detailed planning for each and every improvement action • Consistently assesses actual performance vs. plan and addresses issues and learns from the process All Employees are Engaged in the Process
- 45. Questions?
Editor's Notes
- SAY: “All Breakthrough is built on the foundation of Daily Management. We are building PROCESSES, not chasing numbers.” SAY: “This chart displays the effects of Hoshin Planning on an organization. This figure shows how Hoshin Planning along with Kaizen (continuous improvement) will raise the baseline each year until the breakthrough objectives are reached. Once the breakthrough objectives are reached, that level now becomes the beginning baseline for further kaizen. Hoshin Planning ensures that a company remains focused, aligned, and proactive, and retains a sense of urgency. Hoshin Planning will build a sustainable competitive advantage. The key emphasis is SUSTAINABLE. This will produce superior customer satisfaction, major improvements in quality, delivery, and cost (QDC), results that are tied to the strategy, and multi-functional teamwork.” Hoshin Planning forces an organization to decide what and what not to focus on.
- SAY: “Hoshin Planning is a good tool for communication... It gets everyone on the same page for what is or is not important.” SAY: “PD provides focus (what to do, what not to do). HP communicates the importance; what HP means for each person.” Cover these points: Hoshin Planning is used to align targets and means throughout the organization. This means aligning objectives and resources. Everyone knows their place and how they fit into the “big picture” from the Strategic Plan to the Point of Impact.
- SAY: “If management is not doing breakthrough action plan development then what are they doing? Breakthrough means managing the action plans. Can not push the Breakthrough management down because that level is doing kaizen and daily management. 60-70% of the leadership’s time is on Breakthrough management. With Hoshin Planning, the top management should be spending more than 60% of their time on breakthroughs. The diagram represents what will take the most time with each of the management levels when Policy Deployment is in place. Challenge yourself to meet this model. Leaders should lead.” SAY: If a ship has cannonball holes and you don’t plug them, the ship will sink fast. If you only plug holes with no one steering, the ship will run aground. Understand where you are and what is breakthrough for you. This is an active chart. Move it in the right direction.
- SAY: “Level 1 Matrix is done literally out of STRAP. Like to see Level 1 with the budget, Level 2 done in December with Action Plans. Senior management transitions into the following year in Q4 of current year. Leadership team should be thinking of the following year after the STRAP review.” SAY: “KEY that Budgeting process is done in conjunction with HP (otherwise may not “fund” Improvement Priorities).”
- SAY: “Daily management processes well in-hand equals bulk of time spent on Hoshin Planning.” The Planning Process Establishing Organizational Vision The first phase in the planning process is establishing organization vision. During this phase, the strategic business unit will develop a vision statement, mission statement, and values statement for the company. Strategic Planning/ Develop 3-5 Year Breakthrough Objectives The second phase in the planning process is known as strategic planning. Strategic planning involves analyzing the gap of where the company should be functioning and where it is currently functioning. If necessary, root causes are determined from the gaps that are discovered and breakthrough objectives are developed in order to target the root causes. The breakthrough objectives are worked towards over a period of 3-5 years. Develop Annual Breakthrough Objectives & Improvement Priorities The third phase in the planning process is determining what is breakthrough for the first year of your policy deployment, and developing improvement priorities that are process-oriented, focused, clear, measurable, and designed to meet the annual breakthrough objectives. Consideration should be paid to developing the underlying business processes necessary to achieving the result. Deploy Improvement Priorities The fourth phase in the Hoshin planning process is to deploy the improvement priorities. At this step, the multi-functional areas of the company are identified and the improvement priorities are aligned to the multi-functional areas. The Implementation Process Implement Improvement Priorities At this point the planning development is now put to action. Value Stream Mapping is performed to identify HOS/Lean opportunities. The Lean Tools are selected and utilized in order to maximize opportunity and meet objectives. The Review Process Monthly Review Each level of deployed policies is reviewed on a monthly basis. Scorecards and control charts, both measurement tools, are used to track monthly progress. At this review period, the focus is on the exceptions; where are you off target? When you determine the exceptions, countermeasures are developed and acted upon. Annual Review Process The annual review is a self diagnosis step that examines the results of the policy deployment and focuses upon the processes you did or did not set in place.
- SAY: “We will begin now to focus more in-depth on the critical thinking process. This is the 5 chain step process to create Hoshin Planning.”
- SAY: “__________________ has always strived towards world class benchmarks. Even if we don’t get to world class, the journey will get us much farther than the competition.” SAY: “Breakthrough Thinking requires examining world-class standards and comparing it to the current situation. This also requires narrowing focus down to the critical few.”
- SAY: “No 3-5 year Breakthrough can be achieved in 1 year. Neck down the funnel to something actionable.” SAY: “Identify First Year Breakthrough Objective. This is what you want to accomplish in Year 1 to target your Breakthrough.”
- SAY: “The lines of the fishbone diagram represent different bones that show possible causes of the gap between the breakthrough and the current situation. The “5 Whys” represent identifying true problems or root causes, and not just the symptoms of the problem. We will attack these hurdles with Improvement Priorities.” SPECIAL NOTE TO INSTRUCTOR If class does not have the data to do this step immediately, it may be necessary for the instructor to go to the next step, “HOW MUCH/WHEN” in order to “jump start” the class into being able to do this step– “HOW.”
- SAY: “When objectives have been developed, measures are developed in order to determine progress in meeting the objective. SAY: “KEY – Pick a metric that will tell you if the process is improving.” SPECIAL NOTE TO INSTRUCTOR If the class does not have data, the instructor may opt to skip to this step when actually going through the PCT later with the class. This will help “jump start” the class into determining Step 2 – HOW.
- SAY: “Identify the roles and responsibilities of the multi-functional areas and their impact on the objectives so we can deploy the objectives to them. SAY: “Important point – Dynamic (changing all the time) resource allocation.” SPECIAL NOTE TO INSTRUCTOR Get them thinking about where their resources are and where they need them to be. Instructor can expand discussion discuss “resource” in a variety of ways.
- SAY: “Hoshin Planning is the process used to manage Breakthroughs. Daily Management is the process used to manage Key Performance Indicators. Breakthroughs become Daily Management when they are sustainable.” SAY: “Daily Management is the foundation for Hoshin Planning. HOS lean maturity dictates when a Daily Management process in one company may be a Breakthrough.” SAY: “Effective Daily Management will drive incremental improvement.”
- NOTE: This slide has animation. DO: Cover broadly what each of the 5 topics of the Process of Critical Thinking are and introduce this Top Level Matrix. Stress that while this training covers the instructions necessary to complete the HP matrices, that HP is NOT FORM FILLING-OUT. It is about the process of critical thinking that drives our focus. SAY (re: How Much): “The ‘How Much’ is where we keep score and when we miss it we do countermeasures.” (this then feeds the next slide on countermeasures). When you click to animate, indicate to the class that items placed on the matrix are always placed in priority order so that you are always sure of what is most important when viewing the items, and to ensure that your top priorities are appropriately resourced.
- SAY: Every solid dot that deploys an Improvement Priority gets a Second Level Matrix! The clear circles indicate other areas of support. The clear circles do NOT get a second Level Matrix. Why do you think this is so? (so that we do not loose focus!) NOTE: It is not necessary to insert dots linking targets to the 3-5 year breakthrough.
- SAY: “Do not let mechanics get in the way of the Process of Critical Thinking”
- SAY: “If the Process of Critical Thinking is done well – what appears on your HP charts will be a natural fall-out from that thinking.”
- SAY: “The targets to improve do not cascade directly to a Level 2. Targets to Improve show the effectiveness of the key driver process.” SAY: “Targets DO not rotate from the top level to the next level. The Second Level Improvement Priorities have separate Targets to Improve than the top level.”
- DO: Discuss the rotation around the matrix. What goes where?
- SAY: “KEY POINT – Do not over-deploy! We want to get to Action Plan as soon as possible.”
- SAY: “Without an action plan – Hoshin Planning is worthless. Policy Deployment Targets drive the annual result. The Action Plan drives the month by month results. Create an Action Plan for every Improvement Priority at the Point of Impact. End goal on Scorecard is already determined.”
- SAY: “KEY: Don’t get lost in actions and not calibrate back to higher level breakthrough objective. Are you working on the right things?”
- DO: Summarize where VSM fits in.
- SAY: “Action Plans will drive what you plan on your Scorecard.”
- NOTE: This slide animates the definitions of the form.
- SAY: This slide shows where the improvement priority and target go on the top level bowling chart. The improvement priority and target are copied in the same manner to a second level bowling chart.
- SAY: “Each matrix gets a Scorecard.”
- DO: Click to the next slide. The purpose of having this slide blank is so that the participants can clearly see the form. The following slide has animated points about Countermeasures.
- SAY: “Want to spend time looking forward... Not all backward.” SAY: “Regarding the Growth Agenda, HP should include Growth already, and the purpose of the Growth Agenda is to outline expectations that HP should address Growth.” SAY: “Not as relevant at Level 2, 3, etc.”