Download as PDF, PPTX
Uploaded byPierre E. NEIS
It's not lean, it's agile at scale.. the Hoshin Kanri way
The document discusses the integration of Agile methodologies with Hoshin Kanri, emphasizing a strategic approach to continuous improvement through aligning organizational objectives with value streams. It highlights the importance of collective recognition of individual expertise in driving quality management and the role of PDCA in a fluid organizational structure. Additionally, it posits Hoshin Kanri as a foundational process for linking leadership actions with effective management processes within agile frameworks.
More Related Content
Similar to It's not lean, it's agile at scale.. the Hoshin Kanri way
It's not lean, it's agile at scale.. the Hoshin Kanri way
- 1. It's not Lean,it's Agile at scale... the Hoshin Kanri way 1
- 2. who am I? SeniorLean Agile Coach Senior Scrum Coach & Trainer Agile Management Catalyst father, brother & son ORES, SAP UK, Kingfisher, Euroclear Group, GDF Suez Europe,AXA Group, Invivo, CTIE, atHome, Accenture,Touring Assurances, Cloudwatt, Swingmobility, Lumension Security, Wemanity…
- 3. Apologies 3 ๏It’s not abouta tool ๏It’s not about metrics ๏It’s not a research ๏It’s an inspiration
- 4. why this session? 4 Nowadays,scaling Agile is in the pipe of Agile Change Agents and some interesting essays are emerging like SAFe, LESS, DaD, etc… In other hand, discussions on Kanban are climbing in the organization matrix and try to address both Portfolio and Governance. Beyond Budgeting explains that we need to have Leadership actions and Management processes linked to those Leadership actions. Purpose of this session is to ask the audience: can be Hoshin Kanri seen as a glue binding all these together in an agile sense making manner?
- 5. strategic approach to continuousimprovement 5
- 6. 6 David Hutchins Total QualityManagement Each individual in an organisation is recognised as being the expert in their own job Humans seek recognition Want to be involved Motivated by a desire to be recognised as a contributor to the success of the community to which they belong Japanese Total Quality Management (TQM) is founded on the principles that each individual in an organisation is recognized as being the expert in their own job, that humans seek recognition and want to be involved and are motivated by a desire to be recognized as a contributor to the success of the community to which they belong.
- 7. -Gilles Allain The overallobjective … is to attempt to create an organisation … in which the collective thinking power and job knowledge of all of these individuals is galvanised into a programme in which everyone is working both individually and collectively to work towards making their organisation the best in its field, both in fact and in the eyes of its customers, and all other interested parties. 7 David Hutchins
- 8. 8 HO SHIN KAN RI means Direction refers toFocus refers to Alignment means Reason There are several translations of Hoshin Kanri. This is my favorite!
- 9. 10 principles 1. establisha company motto, quality policy, and promotion plan 2. devise long term and medium term management strategy 3. collect & analyze the information 4. plan the targets and means 5. set the control items (kpis) and prepare the control item list 6. deploy the policy 7. deploy the control items 8. implement the policy plan 9. check the results of implementation 10.prepare the status report for implementing hohin kanri 9 Plan-Do-Check-Act (PDCA) is the driver of these principles.
- 10. Organization as aflow 10 Our objective is to build a company as a flow, a company as a pull system. Here is the junction between Lean Thinking, Kaizen and Agile. An organization as a pull system changes the traditional paradigm of the company organizational iceberg in a system thinking approach. Like John Seddon explained at the 1st Lean Kanban Conference in Antwerp (2010): Middle Office is a Buffer, Back Office is a cost centre, everybody should be at the Front.
- 11. Hoshin Kanri What isour mission? Top down and bottom up Catchball process PDCA Less is more Simple strategy = refined thinking 11
- 12. 12 What is yourTrue North? •Related to company culture •Assets, know-how, strengths •Customers you serve (or want to serve) •Market, trends, developments •What words describe you? Your business?
- 13. Where to Start? Whatis our mission? Who are we? What do we do? What makes us special? Where are we? Where are we going? 13
- 14. Vision Statements (ex.) Tomake people happy To preserve and improve human life. No child in our city will go hungry to bed in the evening. We will be the easiest pharmacy retailer for customers to use. To constantly improve what is essential to human progress by mastering science and technology. To be the number 1 athletic company in the world Undisputed marketplace leadership. To make the world’s information universally accessible and useful. 14 Disney Merck Soup Kitchen Dow Chemical CVS Corp. Nike Hershey Google ref. Mark Offenberger
- 15. True North toStrategy 15 • Focus • 3,4,5 things to be focused on • What are the boulders • Alignment • Think if you can put all your guns in the same direction • Quick response • All business environments change, company activities must be nimble
- 16. Value Streams (FocusAreas) 16 • What value streams exist in your business? • How do we translate the true north to each of these value streams? • How does the business processes support the value streams? • How do we simplify the strategy of each value stream?
- 17. True North andA3 Thinking 17 If we don't know where we're going, we'll never get there… True North Strategy A3 Strategy A3 Strategy A3 Baby A3 Baby A3Baby A3 ref. Mark Offenberger Summarizing the strategy on one piece of paper. What are my goals? How will I measure myself? What did we do last year? What went right? What went wrong? What is this year's strategy? What's the plan? What could go wrong? Any worries?
- 18. 18 • What strategicobjectives do we need to achieve this year? • How did we do last year? • What‘s our history? • What did we do last year? • What worked and didn‘t work? • What have we learned? • What do we need to do to achieve this year‘s strategic objective? • How will these actions benefit us? • What‘s our action plan to achieve these objectives (who, what, when, where, and how)? • __________________________ • __________________________ • __________________________ • Are there any unresolved issues? • Do you need any help with anything? • Anything bothering you? Strategy A3 The point is not the piece of paper. The point is…… Make the strategy simple Focus on the important few Tell a compelling story PDCA Make the review process simple and obvious
- 19. Deploying the Strategy- Catchball 19
- 20. 20 1st Level PolicyDeployment X Reduce signal to material receipt X X Reduce material receipt to assembly complete lead time X X X Direct material cost X X X Acq rate effectiveness X Reducetimetomarketby3months Reducematerialcostby7% Supplierlead-timesto10.5monthsorless(1.5monthreduction) Reduceto13daysorless(0.5monthreduction) 1%reduction 6%reduction Strategies to Achieve Objectives - "How" Annual Breakthrough Objectives - "What" Deliverables & Measures - "How much" 1st Level Policy Deployment X Reduce signal to material receipt X X Reduce material receipt to assembly complete lead time X X X Direct material cost X X X Acq rate effectiveness X Reducetimetomarketby3months Reducematerialcostby7% Supplierlead-timesto10.5monthsorless(1.5monthreduction) Reduceto13daysorless(0.5monthreduction) 1%reduction 6%reduction Strategies to Achieve Objectives - "How" Annual Breakthrough Objectives - "What" Deliverables & Measures - "How much" 1st Level Policy Deployment X Reduce signal to material receipt X X Reduce material receipt to assembly complete lead time X X X Direct material cost X X X Acq rate effectiveness X Reducetimetomarketby3months Reducematerialcostby7% Supplierlead-timesto10.5monthsorless(1.5monthreduction) Reduceto13daysorless(0.5monthreduction) 1%reduction 6%reduction Strategies to Achieve Objectives - "How" Annual Breakthrough Objectives - "What" Deliverables & Measures - "How much" 1st Level Policy Deployment X Reduce signal to material receipt X X Reduce material receipt to assembly complete lead time X X X Direct material cost X X X Acq rate effectiveness X Reducetimetomarketby3months Reducematerialcostby7% Supplierlead-timesto10.5monthsorless(1.5monthreduction) Reduceto13daysorless(0.5monthreduction) 1%reduction 6%reduction Strategies to Achieve Objectives - "How" Annual Breakthrough Objectives - "What" Deliverables & Measures - "How much" 1st Level Policy Deployment X Reduce signal to material receipt X X Reduce material receipt to assembly complete lead time X X X Direct material cost X X X Acq rate effectiveness X Reducetimetomarketby3months Reducematerialcostby7% Supplierlead-timesto10.5monthsorless(1.5monthreduction) Reduceto13daysorless(0.5monthreduction) 1%reduction 6%reduction Strategies to Achieve Objectives - "How" Annual Breakthrough Objectives - "What" Deliverables & Measures - "How much" 1st Level Policy Deployment X Reduce signal to material receipt X X Reduce material receipt to assembly complete lead time X X X Direct material cost X X X Acq rate effectiveness X Reducetimetomarketby3months Reducematerialcostby7% Supplierlead-timesto10.5monthsorless(1.5monthreduction) Reduceto13daysorless(0.5monthreduction) 1%reduction 6%reduction Strategies to Achieve Objectives - "How" Annual Breakthrough Objectives - "What" Deliverables & Measures - "How much" 1st Level Policy Deployment X Reduce signal to material receipt X X Reduce material receipt to assembly complete lead time X X X Direct material cost X X X Acq rate effectiveness X Reducetimetomarketby3months Reducematerialcostby7% Supplierlead-timesto10.5monthsorless(1.5monthreduction) Reduceto13daysorless(0.5monthreduction) 1%reduction 6%reduction Strategies to Achieve Objectives - "How" Annual Breakthrough Objectives - "What" Deliverables & Measures - "How much" 1st Level Policy Deployment X Reduce signal to material receipt X 1 2 X Reduce material receipt to assembly complete lead time X 2 1 2 2 X X Direct material cost X 1 X X Acq rate effectiveness X 1 Reducetimetomarketby3months Reducematerialcostby7% Supplierlead-timesto10.5monthsorless(1.5monthreduction) Reduceto13daysorless(0.5monthreduction) 1%reduction 6%reduction GregB Todd JimP JimH Herb Deb MikeE 6/1/2004 (OIF) Resources - "Who" 31-Dec-04 G = On Time 1 Primary Responsibility 31-Dec-04 Y = Slipping 2 Secondary Responsibility 31-Dec-04 R = Late Strategies to Achieve Objectives - "How" Annual Breakthrough Objectives - "What" Deliverables & Measures - "How much" Timeline - "When" 1st Level Policy Deployment X Reduce signal to material receipt X 1 2 X Reduce material receipt to assembly complete lead time X 2 1 2 2 X X Direct material cost X 1 X X Acq rate effectiveness X 1 Reducetimetomarketby3months Reducematerialcostby7% Supplierlead-timesto10.5monthsorless(1.5monthreduction) Reduceto13daysorless(0.5monthreduction) 1%reduction 6%reduction GregB Todd JimP JimH Herb Deb MikeE 6/1/2004 (OIF) Resources - "Who" 31-Dec-04 G = On Time 1 Primary Responsibility 31-Dec-04 Y = Slipping 2 Secondary Responsibility 31-Dec-04 R = Late Strategies to Achieve Objectives - "How" Annual Breakthrough Objectives - "What" Deliverables & Measures - "How much" Timeline - "When" 1st Level Policy Deployment X Reduce signal to material receipt X 1 2 X Reduce material receipt to assembly complete lead time X 2 1 2 2 X X Direct material cost X 1 X X Acq rate effectiveness X 1 Reducetimetomarketby3months Reducematerialcostby7% Supplierlead-timesto10.5monthsorless(1.5monthreduction) Reduceto13daysorless(0.5monthreduction) 1%reduction 6%reduction GregB Todd JimP JimH Herb Deb MikeE 6/1/2004 (OIF) Resources - "Who" 31-Dec-04 G = On Time 1 Primary Responsibility 31-Dec-04 Y = Slipping 2 Secondary Responsibility 31-Dec-04 R = Late Strategies to Achieve Objectives - "How" Annual Breakthrough Objectives - "What" Deliverables & Measures - "How much" Timeline - "When" 1st Level Policy Deployment X Reduce signal to material receipt X 1 2 X Reduce material receipt to assembly complete lead time X 2 1 2 2 X X Direct material cost X 1 X X Acq rate effectiveness X 1 Reducetimetomarketby3months Reducematerialcostby7% Supplierlead-timesto10.5monthsorless(1.5monthreduction) Reduceto13daysorless(0.5monthreduction) 1%reduction 6%reduction GregB Todd JimP JimH Herb Deb MikeE 6/1/2004 (OIF) Resources - "Who" 31-Dec-04 G = On Time 1 Primary Responsibility 31-Dec-04 Y = Slipping 2 Secondary Responsibility 31-Dec-04 R = Late Strategies to Achieve Objectives - "How" Annual Breakthrough Objectives - "What" Deliverables & Measures - "How much" Timeline - "When" Catch Ball Catch Ball Catch Ball VP of Sales Salesman Purchasing Manager Buyer Supply chain Shipping Operator Vice President Ops Plant Manager Production Manager Teamleader ref. Mark Offenberger What is important Effective discussion on A3s to guarantee alignment between objectives across the organization Develop communication at all level Reinforce and consolidate knowledge of the challenges and objectives of others Requires trust and respect Alignment is all about Consensus: find a common way to reach all our objectives Ask the question upfront instead of waiting for the clash in the execution phase
- 21. Deploying the strategy 21 ReviewA3 Action plan A3 Action plan A3
- 22. Kaizen to DeployStrategy 22 Voice of the Business (Corporate inputs) Voice of the Customer (Sales and Marketing inputs) Voice of Process People (Process Owner People inputs) Hoshin Planning Kaizen 2009 Strategy - True North - Value Streams - Key projects - Alignment - Communication - Review process & dashboard Key Key Process vs People: in Agile we focus more on the people, people gives the AS IS vs process giving the TOBE
- 23. Using Kaizen toDeploy Strategy 23 Pre-work During the Kaizen event Post Kaizen Collect all pertinent information (strat plans, market analyses, financial plans, etc) Summarize data Define True North (brainstorming) Define value streams Create strategic A3 Nemawashi Define process check process Communication
- 24. Global Strategic Deployment 24 Corp. Division Function VOB Function VOC Business Processes #1 # 2 # 3 # … Function Function Function VOP Functional Execution Strategic Execution VOB: voice-of-the-business VOC: voice-of-the-customer VOP: voice-of-the-process people
- 25. 25 Total Quality GAP Analysisand project-by-project improvement Deployed at all levels. Policy Deployment Development of KPIs and the business-wide programme Vision and Mission Policy Deployment KPIs redefined and cascaded to all levels Policy Control (PDCA) Feedback of results of improvement activities Hoshin Kanri - the « WHAT IS « TQM- the « HOWTO « David HutchinsHow it works
- 26. an the AgileFactor? 26
- 27. Purpose of Agile 27 customer satisfaction continuous improvement selforganization changing requirements simplicity technical excellence working itemsiterationssustainable pace Biz & Dev working together motivated individuals clear communication a consolidated view of the 12 principles
- 28. why? ๏ Kanban it’san amazing simple management tool reinforcing transparency.Transparency is a key factor of agility. ๏ D.Reinersten’s explains that Product Development is a flow and you need to focus on alignment, flow, feedback loops ,measure cost-of-delay, give place for variability. ๏ Beyond Budgeting explains how to link management processes with leadership action i.e.operations with strategy. ๏ Agile needs an answer to enabling agility in existing global organizations.
- 29. so what? Now ifyou use the simple « process » of Hoshin Kanri: True North, A3 Thinking, Catchball and Kaizen (i.e. Continuous Improvement) to support the implementation of Beyond Budgeting principles and you neither scandinavian nor japanese (culture plays a lot!), and you want to have enough diversity (i.e. variability) to support emerging innovation, then I guess we don’t need to reinvent something new. We just need to inspect-and-adapt the tools we got.
- 30.
- 31. 31 I have bepaid 40 years for my hands. Nobody asked me! But for the same price my brain was free. Retired from Bombardier
- 32. Pierre E. Neis| @elpedromajor | pierre@wecompany.me 32 Luxembourg | Paris | Bruxelles | Amsterdam | Beirut Thank you We & Co Agile by Nature