Hoshin Kanri Sample

1. 1
Superfactory® Lean Enterprise Series
Hoshin Kanri

2. Outline
1. Definition of Hoshin Kanri
2. History of Hoshin Kanri
3. Introduction to Hoshin Kanri
4. Implementing Hoshin Kanri
5. Summary

3. Hoshin Kanri
Hoshin Kanri is a step-by-step planning,
implementation and review process for managed
change. It is a systems approach to the
management of change in critical business
processes.
Hoshin Kanri is a proven technique that helps
organizations focus efforts and achieve results.

4. History of Hoshin Kanri
 After World War 11, Japan was faced with the difficult task of
rebuilding its economy and infrastructure without out allowing the
military to be rebuilt.
 Hoshin Kanri is a planning process that was developed in Japan
but it is based on the US techniques of Management by
Objectives and the classical Plan-Do-Check-Act (PDCA)
improvement cycle.
 Hoshin Kanri 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.
 Japanese Deming Prize winners credit Hoshin as being a key
contributor to their business success.

5. Introduction: Process
Top Management sets the
overall vision and the annual
high-level policies and targets
At each level down,
managers and employees
participate in the
definition, from the overall
vision and their annual
targets, of the strategy and
detailed action plan
Each level pass on
targets to the next
level.
Each level under top management
is, in turn, involved with the level
above it to make sure that its
proposed strategy corresponds to
requirements.
Regular reviews take place to
identify progress and problems,
and to initiate corrective action.

6. Critical Behaviors
 People seem to need either a crisis or goals to achieve extraordinary
outcomes.
 Research shows that performance-focused management practices
can increase performance by at least 30-40%*
 Hoshin combines long and short-term planning methods with quality
and objective management methods to produce a plan-to-do-act
cycle.
Leadership must take steps to close the gap
between today’s performance and an
organization’s vision.
*Julia Graham: “Developing a Performance-based Culture” – The Journal for Quality and Participation, 2004

7. Fundamental Systems
There are two management systems fundamental
to Hoshin: daily and cross-functional management
systems.
Daily Management System
 deals with the operation and monitoring
of micro work processes
 supports identification of task level
work, creation and improvement of task
level work processes,
 supports subject matter experts
 provides communication to
management and cross functional work
team
 encourages participation and
involvement
Cross-Functional
Management System
 The improvement of processes
spanning the entire organization
 Addressing issues such as product or
service quality
 Lean Six Sigma is one example
 Critical to the management of an
organization’s vision and mission,
identification and management of
cross-functional work processes, and
issues and cross-functional work
process improvements

8. Breakthrough Performance Plans
Annual Plan
 The gap between the long-range plan and business
fundamentals plan provides motivation for change
 The long-range plan is the basis for the annual plan which
identifies what must be accomplished this year to move the
organization along the path to the future as specified in the
long-range plan
 It is very detailed and lays the foundation for what must be
accomplished in the way of improvement (change) and how
success will be measured
 Unlike the long-range plan, the annual plan likely will change
significantly year to year