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© Operational Excellence Consulting. All rights reserved.
Hoshin Kanri
Strategy Deployment
© Operational Excellence Consulting. All rights reserved.
© Operational Excellence Consulting. All rights reserved. 2
Program Objectives
1. Understand the key concepts and principles of
Hoshin Kanri
2. Define the Hoshin Kanri process and tools
3. Describe the Hoshin Kanri approach to
planning, deployment and review process for
managed change
4. Gain practical knowledge and skills in planning
and deploying Hoshin Kanri in the organization
NOTE: This is a PARTIAL PREVIEW. To
download the complete presentation,
please visit:
http://www.oeconsulting.com.sg
© Operational Excellence Consulting. All rights reserved. 3
Program Benefits
• Focuses the entire company on a few vital goals, rather
than the trivial many
• Creates alignment towards breakthrough objectives
through involvement of the whole management team in
the planning process
• Communicates the key goals to all managers and staff
• Integrates and encourages cross-functional
cooperation to achieve breakthroughs
• A review process which holds participants accountable
for achieving their part of the plan
© Operational Excellence Consulting. All rights reserved. 4
Program Outline
1. Introduction to Hoshin Kanri
2. Principles of Hoshin Kanri
3. Hoshin Kanri Process
4. Hoshin Kanri Tools
5. Hoshin Kanri Deployment
6. Management Reviews
7. Effective Hoshin Kanri Deployment
© Operational Excellence Consulting. All rights reserved. 5
Symptoms that your organization needs
to do Hoshin Kanri planning…
• Too many bad projects in process.
• Very long lead times for improvements.
• Constantly missed budgets and forecasts.
• Senior management vision does not match
organizational activities.
• Annual objectives are rolled out in March
instead of January.
© Operational Excellence Consulting. All rights reserved. 6
“Plans are nothing,
planning is everything.”
- Dwight D. Eisenhower
© Operational Excellence Consulting. All rights reserved. 7
“Strategy without tactics is the
slowest route to victory. Tactics
without strategy is the noise
before defeat.”
– Sun Tzu
© Operational Excellence Consulting. All rights reserved. 8
“Even if you are on the right
track, you’ll get run over if
you just sit there.”
- Will Rogers
© Operational Excellence Consulting. All rights reserved. 9
Limitations of Standard Strategic
Planning
1. Too many priorities
2. Insufficient detail
3. Lack of active review
© Operational Excellence Consulting. All rights reserved. 10
Hoshin Kanri
• Hoshin Kanri – Japanese term for Policy
Deployment
• Hoshin is composed of two characters:
 Ho means “method or form”
 Shin means “shiny needle or compass”
 Taken together, hoshin means a “methodology for
strategic direction setting”
• Kanri means “management” or “control”
© Operational Excellence Consulting. All rights reserved. 11
• A visual planning tool that helps us identify
the key focus points and strategies we will
use to steer us towards our vision
• Enables everyone to ‘see’ where we’re going
and our plans to get there
• Build plan and strategies as a team
• Shared responsibility for getting results
What is Hoshin Kanri?
© Operational Excellence Consulting. All rights reserved. 12
What Hoshin Kanri IS NOT
• A tool for management to control the employees
• A strategic planning methodology to replace the
Balanced Scorecard
• Focused entirely on outcomes
• A performance appraisal tool
• A management reporting tool
• Another “extracurricular activities”
© Operational Excellence Consulting. All rights reserved. 13
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 goals
and at all levels of the organization
• Employees are involved in setting targets,
improvement schedules and reviews
• There is a clear line of sight
© Operational Excellence Consulting. All rights reserved. 14
Hoshin Kanri Model
Source: Yoji Akao, 1991
© Operational Excellence Consulting. All rights reserved. 15
Hoshin Kanri at Three Different Levels
• Vision
• Mission
• Shared Values
Management by
Principles
• Objectives Setting
• Target-means Deployment
Management by
Priorities
• Network of Inter-related
Projects
• Cross-functional Management
Management by
Projects
© Operational Excellence Consulting. All rights reserved. 16
A Hoshin Kanri System for Goal
Alignment
•Alignment
through entire
company
structure using
top-down goal
setting
•Each
subsequent
goal supports
the previous
level’s goals
Verticalalignment
Organization
Goals
Department
Objectives
Individual
Objectives
Department
Objectives
Individual
Objectives
Individual
Objectives
Individual
Objectives
© Operational Excellence Consulting. All rights reserved. 17
Hoshin Kanri & LEAN Imperatives
Hoshin Kanri
Customer Value
ContinuousImprovement
Management by Fact
Teamwork
Alignment Principle
Operating
Philosophy
© Operational Excellence Consulting. All rights reserved. 18
Top-down focus
on creating and
improving
systems
HOSHIN KANRI
INTEGRATED WITH
Bottom-up
focus on
total employee
involvement in
continuous improvement
TOTAL EMPLOYEE INVOLVEMENT
Teamwork
Hoshin Kanri & Employee Involvement
© Operational Excellence Consulting. All rights reserved. 19
Linkages of BSC, Hoshin Kanri & MBO
• Company “Report Card” at a glance
• Contains macro measurements related to
key success factors (e.g. productivity, revenue, etc.)
• For senior management
Balanced
Scorecard
• Provides focus and alignment
• Measure key processes
• Reveals what, who and when
Hoshin Kanri
• Targets are negotiated between supervisor
and subordinates
• For rewarding performance
MBO
© Operational Excellence Consulting. All rights reserved. 20
Breakthrough
• Breakthrough means
improvement to a
significantly higher
level of performance
• Lack of breakthrough for
a business organization
would place it in a
position of regression in
a competitive
environment
Think BIG:
Boldly Important Goals
© Operational Excellence Consulting. All rights reserved. 21
Underlying Principles of Hoshin Kanri
• Plan-Do-Check-Act
(PDCA) Cycle
• Pareto Principle: Focus on
the vital few
• Cause-and-Effect
Relationship
© Operational Excellence Consulting. All rights reserved. 22
Review of Strategic Planning Process
© Operational Excellence Consulting. All rights reserved. 23
Hoshin Kanri Cascade
Goals
Strategies
Objectives
Tactics
The broad outcomes
The detailed steps and tools
you will use
The measurable steps to
achieve the strategies
The approaches you will take
© Operational Excellence Consulting. All rights reserved. 24
“Catch-Ball” Process
Vision
Annual
Objectives
Measures
Objectives Measures
Objectives Measures
Objectives Measures
Top
Management
Frontline
Section
Manager
Department
Manager
2-way dialogue & negotiation
2-way dialogue & negotiation
2-way dialogue & negotiation
© Operational Excellence Consulting. All rights reserved. 25
Hoshin Kanri Process - Example
Direction of
information flow
Catchball:
Negotiation &
Alignment between
two levels
MD
Div Manager
Dept Manager
Section
Manager
Engineer
Customer
Satisfaction
Feedback
Feedback
Feedback
Feedback
Set up & lead
Kaizen team
to reduce rejects
in Line A-1
To improve
quality
Improve
overall yield
Reduce
defects
Reduce rejects
in Line A-1
Policy Owner Objective Means
To improve
quality
Improve
overall yield
Reduce
defects
© Operational Excellence Consulting. All rights reserved. 26
Four Key Phases of Hoshin Kanri
1. Top Management
Objective Setting
2. Deployment to
Department Managers
3. Operationalize through
Projects
4. Review Performance
© Operational Excellence Consulting. All rights reserved. 27
Phase 1: Top Management Objective Setting
Top management sets
objectives & determines
tactics to achieve the
objective
PROCESS OUTPUTINPUT
Review and obtain
commitments from
department managers
Breakthrough
Objectives?
A
• Corporate Goals
• Strategic Planning
• Benchmarking Projects
• Past Performance
Review
• Self-Assessment
Determine key drivers
Draft of the first-level
Hoshin Kanri
Deployed as Daily
Management
Objectives
Yes
No
© Operational Excellence Consulting. All rights reserved. 28
Common Hoshin Kanri Tools
Alignment & Deployment
Chart
For improvement hoshin
Daily Management Matrix
For daily management
Gantt Chart
For review purposes
Management Control Chart
For review purposes
© Operational Excellence Consulting. All rights reserved. 29
X Matrix
Step 1: What?
Breakthrough
Thinking
Step 5: Who?
Resource
Deployment
Step 4: How
Much & When?
Measures
Step 3: How?
Which Key
Processes?
Step 2: How
Far? This Year?
© Operational Excellence Consulting. All rights reserved. 30
Hoshin Kanri Deployment Tree
Frontliner
Section
Manager
Department
Manager
GM
M1
Improve Process
Quality
M1.1
Improve Assembly
Process Quality
M1.1.1
Improve Process
Capability at FOL
M1.1.1.1
Improve Bondability
of MQFP Devices
…
M1.1.2
Implement Defect
Prevention at EOL
M1.1.2.1
Implement Vision
System for MQFP
Trim Process
…
M1.2
Improve Test
Process Quality
…
…
© Operational Excellence Consulting. All rights reserved. 31
Cascading of Policy Deployment
Policy Deployment cascades down,
with the tactic and targets
at one level becoming
the objective and
goals at the
next level.
Objective Goals Tactic Targets
What HowMeasure Measure
Objective Goals Tactic Targets
What HowMeasure Measure
Objective Goals Tactic Targets
What HowMeasure Measure
Department Manager
Section Manager
Engineer
© Operational Excellence Consulting. All rights reserved. 32
Types of Reviews
Monthly
Review
Quarterly
Review
Annual
Review
© Operational Excellence Consulting. All rights reserved. 33
Checklist for Annual Planning Session 1
1. Are the overall measures in the hoshin and
structured business plans clear and
understood?
2. Does each strategy has an owner?
3. Have the critical business issues been
addressed?
4. Have the carry-over activities been picked up?
5. Have the lessons learned been picked up?
© Operational Excellence Consulting. All rights reserved. 34
Effective Hoshin Kanri
Factors contributing to effective Hoshin
Kanri:
1. Operating effectiveness
2. Coherence
3. Mobilization
© Operational Excellence Consulting. All rights reserved. 35
Critical Success Factors
• Data driven (Management by Fact)
• Focus on the Process, NOT the Results
• Internal and external customers identified and
considered top priority
• Management goals and priorities are universally
understood and deployed across all functions and within
each level of planning
• Adequate tactics defined to achieve goals
• Communications among functions are sufficient
• Regular management review
© Operational Excellence Consulting. All rights reserved. 36
Copyrights of all the pictures used in this presentation are held by their respective owners.
© Operational Excellence Consulting. All rights reserved. 37
Other Presentations You May Like…
Check out our presentations catalog at http://www.oeconsulting.com.sg/#!training-presentations/c1les
© Operational Excellence Consulting. All rights reserved.
About
Operational
Excellence Consulting
© Operational Excellence Consulting. All rights reserved. 39
About Operational Excellence
Consulting
• Operational Excellence Consulting is a management
training and consulting firm that assists organizations in
improving business performance and effectiveness.
• The firm’s mission is to create business value for
organizations through innovative operational excellence
management training and consulting solutions.
• OEC takes a unique “beyond the tools” approach to enable
clients develop internal capabilities and cultural
transformation to achieve sustainable world-class excellence
and competitive advantage. For more information, please visit
www.oeconsulting.com.sg
© Operational Excellence Consulting. All rights reserved.
To download this presentation,
please visit us at:
www.oeconsulting.com.sg
END OF PARTIAL PREVIEW

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Hoshin Kanri Strategy Deployment by Operational Excellence Consulting

  • 1. © Operational Excellence Consulting. All rights reserved. Hoshin Kanri Strategy Deployment © Operational Excellence Consulting. All rights reserved.
  • 2. © Operational Excellence Consulting. All rights reserved. 2 Program Objectives 1. Understand the key concepts and principles of Hoshin Kanri 2. Define the Hoshin Kanri process and tools 3. Describe the Hoshin Kanri approach to planning, deployment and review process for managed change 4. Gain practical knowledge and skills in planning and deploying Hoshin Kanri in the organization NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: http://www.oeconsulting.com.sg
  • 3. © Operational Excellence Consulting. All rights reserved. 3 Program Benefits • Focuses the entire company on a few vital goals, rather than the trivial many • Creates alignment towards breakthrough objectives through involvement of the whole management team in the planning process • Communicates the key goals to all managers and staff • Integrates and encourages cross-functional cooperation to achieve breakthroughs • A review process which holds participants accountable for achieving their part of the plan
  • 4. © Operational Excellence Consulting. All rights reserved. 4 Program Outline 1. Introduction to Hoshin Kanri 2. Principles of Hoshin Kanri 3. Hoshin Kanri Process 4. Hoshin Kanri Tools 5. Hoshin Kanri Deployment 6. Management Reviews 7. Effective Hoshin Kanri Deployment
  • 5. © Operational Excellence Consulting. All rights reserved. 5 Symptoms that your organization needs to do Hoshin Kanri planning… • Too many bad projects in process. • Very long lead times for improvements. • Constantly missed budgets and forecasts. • Senior management vision does not match organizational activities. • Annual objectives are rolled out in March instead of January.
  • 6. © Operational Excellence Consulting. All rights reserved. 6 “Plans are nothing, planning is everything.” - Dwight D. Eisenhower
  • 7. © Operational Excellence Consulting. All rights reserved. 7 “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” – Sun Tzu
  • 8. © Operational Excellence Consulting. All rights reserved. 8 “Even if you are on the right track, you’ll get run over if you just sit there.” - Will Rogers
  • 9. © Operational Excellence Consulting. All rights reserved. 9 Limitations of Standard Strategic Planning 1. Too many priorities 2. Insufficient detail 3. Lack of active review
  • 10. © Operational Excellence Consulting. All rights reserved. 10 Hoshin Kanri • Hoshin Kanri – Japanese term for Policy Deployment • Hoshin is composed of two characters:  Ho means “method or form”  Shin means “shiny needle or compass”  Taken together, hoshin means a “methodology for strategic direction setting” • Kanri means “management” or “control”
  • 11. © Operational Excellence Consulting. All rights reserved. 11 • A visual planning tool that helps us identify the key focus points and strategies we will use to steer us towards our vision • Enables everyone to ‘see’ where we’re going and our plans to get there • Build plan and strategies as a team • Shared responsibility for getting results What is Hoshin Kanri?
  • 12. © Operational Excellence Consulting. All rights reserved. 12 What Hoshin Kanri IS NOT • A tool for management to control the employees • A strategic planning methodology to replace the Balanced Scorecard • Focused entirely on outcomes • A performance appraisal tool • A management reporting tool • Another “extracurricular activities”
  • 13. © Operational Excellence Consulting. All rights reserved. 13 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 goals and at all levels of the organization • Employees are involved in setting targets, improvement schedules and reviews • There is a clear line of sight
  • 14. © Operational Excellence Consulting. All rights reserved. 14 Hoshin Kanri Model Source: Yoji Akao, 1991
  • 15. © Operational Excellence Consulting. All rights reserved. 15 Hoshin Kanri at Three Different Levels • Vision • Mission • Shared Values Management by Principles • Objectives Setting • Target-means Deployment Management by Priorities • Network of Inter-related Projects • Cross-functional Management Management by Projects
  • 16. © Operational Excellence Consulting. All rights reserved. 16 A Hoshin Kanri System for Goal Alignment •Alignment through entire company structure using top-down goal setting •Each subsequent goal supports the previous level’s goals Verticalalignment Organization Goals Department Objectives Individual Objectives Department Objectives Individual Objectives Individual Objectives Individual Objectives
  • 17. © Operational Excellence Consulting. All rights reserved. 17 Hoshin Kanri & LEAN Imperatives Hoshin Kanri Customer Value ContinuousImprovement Management by Fact Teamwork Alignment Principle Operating Philosophy
  • 18. © Operational Excellence Consulting. All rights reserved. 18 Top-down focus on creating and improving systems HOSHIN KANRI INTEGRATED WITH Bottom-up focus on total employee involvement in continuous improvement TOTAL EMPLOYEE INVOLVEMENT Teamwork Hoshin Kanri & Employee Involvement
  • 19. © Operational Excellence Consulting. All rights reserved. 19 Linkages of BSC, Hoshin Kanri & MBO • Company “Report Card” at a glance • Contains macro measurements related to key success factors (e.g. productivity, revenue, etc.) • For senior management Balanced Scorecard • Provides focus and alignment • Measure key processes • Reveals what, who and when Hoshin Kanri • Targets are negotiated between supervisor and subordinates • For rewarding performance MBO
  • 20. © Operational Excellence Consulting. All rights reserved. 20 Breakthrough • Breakthrough means improvement to a significantly higher level of performance • Lack of breakthrough for a business organization would place it in a position of regression in a competitive environment Think BIG: Boldly Important Goals
  • 21. © Operational Excellence Consulting. All rights reserved. 21 Underlying Principles of Hoshin Kanri • Plan-Do-Check-Act (PDCA) Cycle • Pareto Principle: Focus on the vital few • Cause-and-Effect Relationship
  • 22. © Operational Excellence Consulting. All rights reserved. 22 Review of Strategic Planning Process
  • 23. © Operational Excellence Consulting. All rights reserved. 23 Hoshin Kanri Cascade Goals Strategies Objectives Tactics The broad outcomes The detailed steps and tools you will use The measurable steps to achieve the strategies The approaches you will take
  • 24. © Operational Excellence Consulting. All rights reserved. 24 “Catch-Ball” Process Vision Annual Objectives Measures Objectives Measures Objectives Measures Objectives Measures Top Management Frontline Section Manager Department Manager 2-way dialogue & negotiation 2-way dialogue & negotiation 2-way dialogue & negotiation
  • 25. © Operational Excellence Consulting. All rights reserved. 25 Hoshin Kanri Process - Example Direction of information flow Catchball: Negotiation & Alignment between two levels MD Div Manager Dept Manager Section Manager Engineer Customer Satisfaction Feedback Feedback Feedback Feedback Set up & lead Kaizen team to reduce rejects in Line A-1 To improve quality Improve overall yield Reduce defects Reduce rejects in Line A-1 Policy Owner Objective Means To improve quality Improve overall yield Reduce defects
  • 26. © Operational Excellence Consulting. All rights reserved. 26 Four Key Phases of Hoshin Kanri 1. Top Management Objective Setting 2. Deployment to Department Managers 3. Operationalize through Projects 4. Review Performance
  • 27. © Operational Excellence Consulting. All rights reserved. 27 Phase 1: Top Management Objective Setting Top management sets objectives & determines tactics to achieve the objective PROCESS OUTPUTINPUT Review and obtain commitments from department managers Breakthrough Objectives? A • Corporate Goals • Strategic Planning • Benchmarking Projects • Past Performance Review • Self-Assessment Determine key drivers Draft of the first-level Hoshin Kanri Deployed as Daily Management Objectives Yes No
  • 28. © Operational Excellence Consulting. All rights reserved. 28 Common Hoshin Kanri Tools Alignment & Deployment Chart For improvement hoshin Daily Management Matrix For daily management Gantt Chart For review purposes Management Control Chart For review purposes
  • 29. © Operational Excellence Consulting. All rights reserved. 29 X Matrix Step 1: What? Breakthrough Thinking Step 5: Who? Resource Deployment Step 4: How Much & When? Measures Step 3: How? Which Key Processes? Step 2: How Far? This Year?
  • 30. © Operational Excellence Consulting. All rights reserved. 30 Hoshin Kanri Deployment Tree Frontliner Section Manager Department Manager GM M1 Improve Process Quality M1.1 Improve Assembly Process Quality M1.1.1 Improve Process Capability at FOL M1.1.1.1 Improve Bondability of MQFP Devices … M1.1.2 Implement Defect Prevention at EOL M1.1.2.1 Implement Vision System for MQFP Trim Process … M1.2 Improve Test Process Quality … …
  • 31. © Operational Excellence Consulting. All rights reserved. 31 Cascading of Policy Deployment Policy Deployment cascades down, with the tactic and targets at one level becoming the objective and goals at the next level. Objective Goals Tactic Targets What HowMeasure Measure Objective Goals Tactic Targets What HowMeasure Measure Objective Goals Tactic Targets What HowMeasure Measure Department Manager Section Manager Engineer
  • 32. © Operational Excellence Consulting. All rights reserved. 32 Types of Reviews Monthly Review Quarterly Review Annual Review
  • 33. © Operational Excellence Consulting. All rights reserved. 33 Checklist for Annual Planning Session 1 1. Are the overall measures in the hoshin and structured business plans clear and understood? 2. Does each strategy has an owner? 3. Have the critical business issues been addressed? 4. Have the carry-over activities been picked up? 5. Have the lessons learned been picked up?
  • 34. © Operational Excellence Consulting. All rights reserved. 34 Effective Hoshin Kanri Factors contributing to effective Hoshin Kanri: 1. Operating effectiveness 2. Coherence 3. Mobilization
  • 35. © Operational Excellence Consulting. All rights reserved. 35 Critical Success Factors • Data driven (Management by Fact) • Focus on the Process, NOT the Results • Internal and external customers identified and considered top priority • Management goals and priorities are universally understood and deployed across all functions and within each level of planning • Adequate tactics defined to achieve goals • Communications among functions are sufficient • Regular management review
  • 36. © Operational Excellence Consulting. All rights reserved. 36 Copyrights of all the pictures used in this presentation are held by their respective owners.
  • 37. © Operational Excellence Consulting. All rights reserved. 37 Other Presentations You May Like… Check out our presentations catalog at http://www.oeconsulting.com.sg/#!training-presentations/c1les
  • 38. © Operational Excellence Consulting. All rights reserved. About Operational Excellence Consulting
  • 39. © Operational Excellence Consulting. All rights reserved. 39 About Operational Excellence Consulting • Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. • The firm’s mission is to create business value for organizations through innovative operational excellence management training and consulting solutions. • OEC takes a unique “beyond the tools” approach to enable clients develop internal capabilities and cultural transformation to achieve sustainable world-class excellence and competitive advantage. For more information, please visit www.oeconsulting.com.sg
  • 40. © Operational Excellence Consulting. All rights reserved. To download this presentation, please visit us at: www.oeconsulting.com.sg END OF PARTIAL PREVIEW

Editor's Notes

  1. What at the benefits of Hoshin planning to the organization?