This document discusses Hoshin management, which is a Japanese strategic planning process used to align organizational activities with key goals. It involves the following components: 1. Annual planning cycles where managers collaboratively set goals and metrics to measure progress. 2. Deploying goals and means for achieving them throughout the organization using a "catchball" process of discussion and analysis. 3. Monitoring metrics regularly to ensure goals are on track and make corrections if needed. 4. Checking in at the end of the cycle to evaluate weaknesses and inform planning for the next year. The purpose is to focus all employees and tasks on critical priorities and enable rapid response to changing conditions. It is compared to management

1. TOTAL QUALITY
MANAGEMENT
Seminar On
“HOSHIN MANAGEMENT”
Presented By:
HARISHA G V
1DS14MEM01
II Sem, M.Tech, MEM
DSCE, Bangalore - 78

2. Contents
 Introduction
 Components of Hoshin Management
 Phases of Hoshin Management
 Hoshin Management Vs. MBO
 Hoshin Management and Conventional Business Planning
Dept. of IEM, DSCE, B'lore - 78

3. Introduction
 “Hoshin” is a Japanese word.
“Ho” means direction
“Shin” means needle
“Hoshin” means compass
Dept. of IEM, DSCE, B'lore - 78

4.  Hoshin Management aligns the activities of people
throughout the company so that the company can achieve
key goals and react to a changing environment.
 Hoshin Management involves all of the managers in a
coordinated way in the annual planning cycle of the
company.
Dept. of IEM, DSCE, B'lore - 78

5.  Hoshin Management is used to communicate company
policy to everyone in the organization.
 Its primary benefit is to focus activity on the key things
necessary for successes.
 It provides an important strategy for total participation as
well as fulfilling its obvious purpose of company alignment.
 It is a methodology for the implementation and deployment
of long term organization strategic goals, by putting them in
short and mid term objectives, across all levels of the whole
organization
 Hoshin Management is also called as Hoshin Kanri or
Management by Policy or Policy Deployment.
Dept. of IEM, DSCE, B'lore - 78

6. Hoshin Management for Alignment
 It aims to align all the people throughout the company
toward the key company goals.
 It aims to align all jobs and tasks, whether daily work or
improvement work , in order to create breakthroughs
 It aims to quickly and effectively bring the company’s goals
and activities in alignment with rapid societal or
environmental changes.
Dept. of IEM, DSCE, B'lore - 78

7. Components of Hoshin Management
Hoshin and
Deployment
measurement
Control by
measurement
Annual
Hoshins
CheckAct
Plan
Long term
Plan and Vision
Company’s
Mid term
Plan
Environmental
Changes
Diagnosis by
President
Do
Dept. of IEM, DSCE, B'lore - 78

8.  Each hoshin ideally will include the five elements.
Hoshin = statement of desired outcome for next year
+ focused means
+ metrics to measure progress
+ target value for metric
+ deadline date
Dept. of IEM, DSCE, B'lore - 78

9. Phases of Hoshin Management
Hoshin and
Deployment
measurement
Control by
measurement
Annual
Hoshins
CheckAct
Plan
Long term
Plan and Vision
Company’s
Mid term
Plan
Environmental
Changes
Reactive
Diagnosis by
President
Do
Control
Proactive
Dept. of IEM, DSCE, B'lore - 78

10.  PHASE 1 – STRATEGIC PLANNING (PROACTIVE)
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11.  Strategic planning has three steps
1. Situation Analysis: All current aspects of the company,
its people, the sources of obstruction, past and current
performances are analysed.
2. Ends Planning: Designing desirable future,
organizational structure and management systems.
3. Means Planning: Creating the means by which one
effects the desired future.
Dept. of IEM, DSCE, B'lore - 78

12.  PHASE 2 – HOSHIN DEPLOYMENT
There are three fundamental aspects in this phase
1. Moving Down and Up the Ladder of Abstraction: Moving
from a long term vision to an annual plan and deploy down the
management hierarchy. Moving from the hierarchy of processes
to understand the targets and to analyze the root cause of worse
than expected performance.
2. Basing the Deployment on Facts and Analysis: The
president and division heads must determine what prevents the
company from achieving the key goals.
3. Deploying Metrics: Use of metrics on execution of the plan
and its results.
Dept. of IEM, DSCE, B'lore - 78

13.  PHASE 3 – CONTROLLING WITH METRICS
(CONTROL)
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14.  Each of the hoshins deployed includes a metric and a target.
 The metrics are monitored and compared against the target.
 These metrics and targets permit the results and means to be
monitored over the course of the year and corrective actions
to be taken.
 A document specifying which actions to take in the case of
unexpected measurement is called as control by measure
plan.
Dept. of IEM, DSCE, B'lore - 78

15.  PHASE 4 – CHECK AND ACT (REACTIVE)
1. Weaknesses in the plan or the way it was carried out is
checked.
2. Actions will be taken to act appropriately to influence
the next year’s plan or possibly the long term or mid term
plans.
Dept. of IEM, DSCE, B'lore - 78

16. Hoshin Management Vs.MBO
 Management by objectives (MBO), also known
as management by results (MBR), is a process of
defining objectives within an organization so
that management and employees agree to the objectives and
understand what they need to do in the organization in order
to achieve them.
 An important part of the MBO is the measurement and the
comparison of the employee’s actual performance with the
standards set.
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17. Management by Objective
 12 – month planning cycle.
 Deploy a portion of the top
level target to each segment
at each level.
 Lower level management is
responsible for providing the
means.
 Some negotiation of targets.
 Little monitoring of the
means.
 New Managers blames
predecessor’s system for the
past problems.
Hoshin Management
 6 – month planning cycle.
 Deploy targets with different
metrics to each segment at each
level.
 Higher level management
suggests means for key targets.
 Catchball of targets and means
based on facts and analysis.
 Analysis of cause and failure of
the means of the last planning
cycle.
 Old manager learns from the
past.
Dept. of IEM, DSCE, B'lore - 78

18. Conventional Business Planning
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19.  Conventional business process is substantially focused on
results.
 Process is necessary to achieve the results, and providing the
means to produce the results is the domain of hoshin
management.
 The actual goal of the company is not to its annual results,
but to achieve the company’s vision and mid term plan.
 The annual business plan is but a step towards the mid term
plan and vision.
 Conventional business has many parallel to the hoshin
management process.
Dept. of IEM, DSCE, B'lore - 78

20. Dept. of IEM, DSCE, B'lore - 78