Hoshin Kanri

Lean Method for Execution Planning Hoshin Kanri has also been called Policy Deployment, Management by Policy, Strategy Deployment, Goal Deployment and Hoshin Planning. It is a difficult word to translate without losing the essence of the original. There are four key benefits to Hoshin Kanri. They are: 1) Focuses the entire organization on the vital few, rather than the trivial many 2) Creates alignment towards breakthrough objectives 3) Integrates and encourages cross-functional cooperation to achieve breakthroughs 4) The review process results in response to non-execution and corrective action The Hoshin Kanri process is often compared to calibrating compasses. Making sure the compasses of the entire fleet all share a common North by Northwest direction is essential for an organization to make focused breakthrough improvements. In our vision of the future Lean is the way we do everything. People naturally want to improve, but often do not know where to start making breakthrough improvements. The most effective way to build a culture of lasting, continual improvement is to tie the kaizen breakthroughs to business and organizaitonal needs. Hoshin Kanri is a process that helps accomplish this. Origin of Hoshin Kanri Hoshin planning is a system of strategic and operational planning developed and refined in Japan during the 1960s by companies such as Toyota, Nippon Denso, Komatsu, and others. These companies blended ideas from Dr. Edward Deming (PDCA cycle), Dr. Joseph Juran (quality policy), and Dr. Peter Drucker (MBO) into strategic planning to create Hoshin Planning. Hoshin is:

A system of creating and improving a plan A method of analyzing and assessing the Current Situation A method of envisioning the Future State A method of generating breakthrough improvements A way of assigning duties across organization (catch ball) A way of taking action as teams A way of improving the planning process itself Not a silver bullet

Since being introduced to the United States in the 1980s, well-known companies that have adopted Hoshin Planning include Texas Instruments, Danaher Corporation, Hewlett-Packard, Parker Hannifin, Florida P&L, the Pittsburgh Symphony, Xerox, Agilent, and Bank of America. When to Use Hoshin Kanri Ideally Hoshin Kanri will become the way your leadership develops mid-term and annual plans for the business. This will insure that everyone in the organizations is aligning their kaizen and daily management activities along the lines of the few key breakthroughs. Hoshin Kanri is also a useful planning tool at the departmental level, in the absence of adoption of Hoshin Kanri at the highest level. Like many improvement tools, you may need to first practice Hoshin Kanri within the Lean Promotion Office to demonstrate its effectiveness and sell it to other departments and the CEO.

Hoshin Kanri Forms X-Matrix

There are three essential forms used for Hoshin Kanri. They are used once the breakthrough objectives have been identified and you are executing the annual plan. 1. X-Matrix The X-Matrix is the core of Hoshin Kanri. The X-Matrix is reviewed and updated at least monthly. There is an X-Matrix at each level of management or deployment of each strateg. The matrix combines the what, how, who, how much, and when elements of a plan in one A4 sized sheet. The 'traffic light' section of the plan is updated, changing status between green (on time), yellow (slipping) and red (missed target). The other areas are changed only after review and approvel. 2. Implementation Plan (Gantt Chart) The Implementation Plan, most often in the form of a Gantt Chart. It is used to understand the overall impact of progress or delay of actions within the larger Hoshin plan. It is reviewed during the monthly or weekly reviewed and updated when there are changes. 3. Abnormality Review Table The Abnormality Review Table is used only when there is a 'red' signal on the 'traffic light' section of the X-Matrix, or some other abnormality requires corrective action. It should be filled out and used during the monthly or weekly review cycles of the plan. Contact us for training on how to use these forms, implement Hoshin Kanri in your organization, or to purchase training materials on Hoshin Kanri.

Hoshin Planning Tools

One of the keys to successful Hoshin Kanri is the rigorous use of the standard tools for data analysis and brainstorming. Standard Strategic Planning Tool

SWOT Analysis Strategic Choices Competitor Analysis STEEP Factors Force Field Analysis Focus Road Map Six Hat Thinking

The 7 QC (Quality Circle) Tools:

1. 2. 3. 4. 5. 6. 7.

Flow Charts Cause & Effect Diagram (Fishbone) Check Sheets Pareto Chart Control Charts Histogram Scatter Plot

The 7 New Tools

1. 2. 3. 4. 5. 6. 7.

Matrix Diagram Affinity Diagram Radar Chart Interrelations Diagram Tree Diagram Process Decision Program Chart (PDPC) Activity Network Diagram (AND)