Hoshin Kanri Strategy Deployment by Operational Excellence Consulting

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Hoshin Kanri process is a powerful strategy deployment methodology for defining long-range key entity objectives. These are breakthrough objectives that extend two to five years with little change. In addition, the Hoshin Kanri process does not lose sight of the day-to-day business measures required to run the business successfully. This dual approach provides an extended period of time for the organization to focus its breakthrough effort, and at the same time, continuously improving key business processes day to day. This methodology continues to be used by some of the world's most successful companies such as Toyota, Hewlett-Packard and Texas Instruments.

BENEFITS

1. ​Focuses the entire company on a few vital goals, rather than the trivial many
2. Creates alignment towards breakthrough objectives through involvement of the whole management team in the planning process
3. Communicates the key goals to all managers and staff
4. Integrates and encourages cross-functional cooperation to achieve breakthroughs
5. A review process which holds participants accountable for achieving their part of the plan

CONTENTS

1. Introduction to Hoshin Kanri
2. Underlying Principles of Hoshin Kanri
3. Hoshin Kanri Process Using PDCA Approach
4. Hoshin Kanri Tools
5. Elements of Hoshin Kanri
6. Management Reviews
7. Success Factors​ for Effective Hoshin Kanri Deployment

To download this complete presentation, please go to: http://www.oeconsulting.com.sg

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  • What at the benefits of Hoshin planning to the organization?
  • Hoshin Kanri Strategy Deployment by Operational Excellence Consulting

    1. 1. © Operational Excellence Consulting. All rights reserved. Hoshin Kanri Strategy Deployment © Operational Excellence Consulting. All rights reserved.
    2. 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. 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. 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. 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. 6. © Operational Excellence Consulting. All rights reserved. 6 “Plans are nothing, planning is everything.” - Dwight D. Eisenhower
    7. 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. 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. 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. 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. 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. 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. 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. 14. © Operational Excellence Consulting. All rights reserved. 14 Hoshin Kanri Model Source: Yoji Akao, 1991
    15. 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. 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. 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. 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. 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. 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. 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. 22. © Operational Excellence Consulting. All rights reserved. 22 Review of Strategic Planning Process
    23. 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. 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. 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. 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. 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. 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. 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. 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. 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. 32. © Operational Excellence Consulting. All rights reserved. 32 Types of Reviews Monthly Review Quarterly Review Annual Review
    33. 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. 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. 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. 36. © Operational Excellence Consulting. All rights reserved. 36 Copyrights of all the pictures used in this presentation are held by their respective owners.
    37. 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. 38. © Operational Excellence Consulting. All rights reserved. About Operational Excellence Consulting
    39. 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. 40. © 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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