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1 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
Using Hoshin Kanri 
to develop an 
Continuous 
Improvement 
Culture 
Dan Alexander – Kaizen Institute
2 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
Kaizen Institute 
Dan Alexander 
(Born 1964) 
dalexander@kaizen.com 
Managing Director 
KAIZEN Institute UK 
• Founded by Masaaki Imai in 1985 
• Over 400 Consultants worldwide 
• Specialists in Kaizen & Lean 
Implementation
Teaching the True Meaning of “Kaizen” 
“Change for the better” 
3 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
KAI Change 
ZEN Good 
Kaizen = Continuous Improvement (CI) 
…by Everybody! Everyday! Everywhere!
What is Hoshin Kanri? 
方針管理 
hoshin kanri 
Direction management, control 
4 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
“Policy Deployment”
5 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
Team with no “North Star” 
== TASK 
This seems 
important! 
This seems 
interesting 
There is always too much 
to do and by random 
choices you get nowhere
6 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
Team With a “ North Star” 
North Star 
Things you 
must do! 
Things you no 
longer want to 
do 
Things you can 
do
Policy Deployment 7 Step Process 
7 
KAIZEN and GEMBAKAIZEN 
7 
Develop Annual Breakthrough 
Objectives and Improvement 
Deploy Improvement Priorities 
are the trademarks of KAIZEN Institute 
Priorities 
Implement Improvement 
Priorities 
Monthly Review 
Annual Review 
PLANNING 
IMPLEMENTATION 
REVIEW 
Establish 
Organisational Vision 
Develop 3-5 
Year Breakthrough Objectives 
Annual Review 
Self-Diagnosis 
Countermeasures 
Catch ball 
Lean Tools 
Check
8 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
Breakthrough Objectives 
“ I believe this nation should 
challenge itself to put a man 
on the moon, and return him 
to earth safely by the end of 
this decade” 
- John F. Kennedy 1961
9 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
How Many Breakthroughs? 
9 
Critical Few For Focus 
That Translate Directly To Q,C,D,Growth 
LESS 
IS 
MORE 
A big part of Policy Deployment is getting 
your organisation to FOCUS!
Top Level Improvement Priorities 
Top Level Improvement Priorities 
10 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
3-5 Year Breakthrough Objectives 
Annual Breakthrough Objectives 
Answers the question 
“How do we achieve 
our first year 
Breakthrough Objective”
PD Tracking (name) 
KPI Targets or Limits Andon Jan Feb Mar Apr May Jun Jul Aug Sep Oct 
plan 
actual 
ytd +/- 
plan 
Lost Clients 0 actual 
actual 
actual 
plan 
actual 
ytd +/- 
plan 
Required 
Resources 
1 Year 
Bowler Chart 
Horizon 3 Revenue 0 actual 
ytd +/- 
Financial Results Targets or Limits Jan Feb Mar Apr May Jun Jul Aug Sep Oct 
actual 
ytd +/- 
actual 
11 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
Policy Deployment X Matrix 
0 >=1 
0 >=1 
0 5% >5% 
>= 80% <80% 
>= 80% <80% 
>= 80% <80% 
>= 80% <80% 
>= 80% <80% 
>= 80% <80% 
>= 80% <80% 
>= 50% <50% 
actual 
actual 
ytd +/- 
Organic Days 0 
ytd +/- 
0 
actual 
New Client Days 
plan 
Margin % 0% 
plan 
ytd +/- 
Margin $$ 0 
plan 
actual 
ytd +/- 
Nov Dec 
Revenue 0 
plan 
% Participation 0 
plan 
Milestone COT% 0% 
plan 
ytd +/- 
Missed Days vs. Contract 0 
plan 
ytd +/- 
Nov Dec 
Member Turnover 0 
Level 1 PD 2009 
(date) 
3 Year Strategic 
Initiatives 
1 Year 
Breakthrough 
Objectives 
Improvement 
Priorities 
Improvement 
Targets 
X-Matrix
12 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
Policy Deployment X Matrix
Deployment Through “Catch Ball” 
13 
Establish “what” top-down 
Develop consensus about 
“how” through two-way 
communication (up-down) 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
CEO 
Dept. Mgrs. 
Team Leaders. 
Senior Managers
Visual Management of Hoshin Kanri 
14 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute
Visual Management of Hoshin Kanri 
15 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute
16 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
The Review Cycle Calendar 
• Initially, twice per month 
to speed up the learning 
cycle 
• Monthly at mature state 
• Weekly or daily checks 
at mid levels 
• Discuss misses only 
• Problem solving initiated 
for gaps
17 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
My Journey 
• 1983-85 Theoretical 
Knowledge of JIT and Toyota 
Production System 
• 1986 – Final Year 
dissertation – Benefits of One 
piece flow assembly in car 
seat slide assembly 
• Key Learning – The theory 
works
18 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
First Steps 
• 1986-90 Electrolux 
refrigeration Grad trainee 
/ shift supervisor 
• Quality circles, 
• Quality Systems 
• Key Learnings – Team 
working gets good 
results & PDCA
19 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
Lean Tools 
• 1990-93 Kaizen Manager – 
Metallifacture, training by 
Nissan UK in OPF, 5S, TPM 
• 1993-95 Production Manager 
Metallifacture 
• Trained by Toyota in Pull 
systems and Leader standard 
work 
• Deployed targets to Team 
Leaders 
• Key Learnings Competency to 
run Kaizen events – Lean Tools 
make significant improvement, 
team working
Direction for Improvement 
• 1995-97 Manufacturing 
• Policy deployment to 
• VSM to Improvement 
20 
Manager Wagon 
Automotive 
target improvement 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
Priorities 
• Key learnings Direction 
and training alone will 
not make Breakthrough 
change
21 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
Kaizen Model For Continuous 
Improvement 
DAILY KAIZEN® 
N 
N N N N 
Transform 
People 
In... 
...Natural 
Teams 
PROJECT KAIZEN® 
P 
B C D E 
Transform 
Process 
With... 
...Project 
Teams 
SUPPORT KAIZEN® 
Strategy & 
Hoshin Kanri 
Communication 
& 
Auditing 
1 
T T T K 
Provide 
Motivation 
With... 
...Kaizen 
Steering 
Committee 
Training 
& 
Development 
K 
M M M M 
...Kaizen 
Promotion 
Office
22 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
One Page A3 Report 
• Background 
– Good problem statement 
– Target vs. actual 
– Supporting data 
• Root Cause Analysis 
– Ishikawa diagram 
– 5 Why 
– 4M (man, material, machine, method) 
– Multiple causes 
• The Plan: Countermeasures 
– What, who, when 
– Set-based 
– Experiments 
• Follow up: Check 
– Process metric 
– Results metric 
• Target Condition 
• Adjust & Standardise 
– Learning from failure 
– Learning from success
23 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
A3 Reporting Deployment 
A3 – Company / Project 
A3 by Business: 
Business 1 
Business 2 
Business 3 
. 
. 
• Summary of problem solving 
activity that fits on one page 
(typically A3 size paper) 
• Visual 
• Follows PDCA thought 
process 
• Does NOT have one set 
template – be creative 
A3 by Plant 
A3 by Area 
A3 by Line/Machine 
A3 by Workstation
Structuring for Sustainable Improvement 
24 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
DAILY KAIZEN® 
N 
N N N N 
Transform 
People 
In... 
...Natural 
Teams 
N: Natural Teams (Team Leader and Staff), 
All Organizational Levels 
PROJECT KAIZEN® 
P 
B C D E 
Transform 
Process 
With... 
...Project 
Teams 
P: Project Team Leader, 
BCDE: Cross Function Project Members 
SUPPORT KAIZEN® 
Strategy & 
Hoshin Kanri 
Communication 
& 
Auditing 
1 
T T T K 
Provide 
Motivation 
With... 
...Kaizen 
Steering 
Committee 
1: CEO Sponsorship, 
T: Top Management Team Sponsorship, 
K: Kaizen Manager 
Training 
& 
Development 
K 
M M M M 
...Kaizen 
Promotion 
Office 
M: Motivators working for the Kaizen Manager 
Project Management and Transformation Office 
A3 Report
25 
KAIZEN and GEMBAKAIZEN 
are the trademarks of KAIZEN Institute 
Thank You 
Questions? 
www.uk.kaizen.com

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Networking Event for Personalised, Digital Health Innovations in Horizon 2020
 

Lean conference 2014 Dan Alexander - Hoshin Kanri

  • 1. 1 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Using Hoshin Kanri to develop an Continuous Improvement Culture Dan Alexander – Kaizen Institute
  • 2. 2 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Kaizen Institute Dan Alexander (Born 1964) dalexander@kaizen.com Managing Director KAIZEN Institute UK • Founded by Masaaki Imai in 1985 • Over 400 Consultants worldwide • Specialists in Kaizen & Lean Implementation
  • 3. Teaching the True Meaning of “Kaizen” “Change for the better” 3 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute KAI Change ZEN Good Kaizen = Continuous Improvement (CI) …by Everybody! Everyday! Everywhere!
  • 4. What is Hoshin Kanri? 方針管理 hoshin kanri Direction management, control 4 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute “Policy Deployment”
  • 5. 5 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Team with no “North Star” == TASK This seems important! This seems interesting There is always too much to do and by random choices you get nowhere
  • 6. 6 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Team With a “ North Star” North Star Things you must do! Things you no longer want to do Things you can do
  • 7. Policy Deployment 7 Step Process 7 KAIZEN and GEMBAKAIZEN 7 Develop Annual Breakthrough Objectives and Improvement Deploy Improvement Priorities are the trademarks of KAIZEN Institute Priorities Implement Improvement Priorities Monthly Review Annual Review PLANNING IMPLEMENTATION REVIEW Establish Organisational Vision Develop 3-5 Year Breakthrough Objectives Annual Review Self-Diagnosis Countermeasures Catch ball Lean Tools Check
  • 8. 8 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Breakthrough Objectives “ I believe this nation should challenge itself to put a man on the moon, and return him to earth safely by the end of this decade” - John F. Kennedy 1961
  • 9. 9 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute How Many Breakthroughs? 9 Critical Few For Focus That Translate Directly To Q,C,D,Growth LESS IS MORE A big part of Policy Deployment is getting your organisation to FOCUS!
  • 10. Top Level Improvement Priorities Top Level Improvement Priorities 10 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute 3-5 Year Breakthrough Objectives Annual Breakthrough Objectives Answers the question “How do we achieve our first year Breakthrough Objective”
  • 11. PD Tracking (name) KPI Targets or Limits Andon Jan Feb Mar Apr May Jun Jul Aug Sep Oct plan actual ytd +/- plan Lost Clients 0 actual actual actual plan actual ytd +/- plan Required Resources 1 Year Bowler Chart Horizon 3 Revenue 0 actual ytd +/- Financial Results Targets or Limits Jan Feb Mar Apr May Jun Jul Aug Sep Oct actual ytd +/- actual 11 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Policy Deployment X Matrix 0 >=1 0 >=1 0 5% >5% >= 80% <80% >= 80% <80% >= 80% <80% >= 80% <80% >= 80% <80% >= 80% <80% >= 80% <80% >= 50% <50% actual actual ytd +/- Organic Days 0 ytd +/- 0 actual New Client Days plan Margin % 0% plan ytd +/- Margin $$ 0 plan actual ytd +/- Nov Dec Revenue 0 plan % Participation 0 plan Milestone COT% 0% plan ytd +/- Missed Days vs. Contract 0 plan ytd +/- Nov Dec Member Turnover 0 Level 1 PD 2009 (date) 3 Year Strategic Initiatives 1 Year Breakthrough Objectives Improvement Priorities Improvement Targets X-Matrix
  • 12. 12 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Policy Deployment X Matrix
  • 13. Deployment Through “Catch Ball” 13 Establish “what” top-down Develop consensus about “how” through two-way communication (up-down) KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute CEO Dept. Mgrs. Team Leaders. Senior Managers
  • 14. Visual Management of Hoshin Kanri 14 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute
  • 15. Visual Management of Hoshin Kanri 15 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute
  • 16. 16 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute The Review Cycle Calendar • Initially, twice per month to speed up the learning cycle • Monthly at mature state • Weekly or daily checks at mid levels • Discuss misses only • Problem solving initiated for gaps
  • 17. 17 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute My Journey • 1983-85 Theoretical Knowledge of JIT and Toyota Production System • 1986 – Final Year dissertation – Benefits of One piece flow assembly in car seat slide assembly • Key Learning – The theory works
  • 18. 18 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute First Steps • 1986-90 Electrolux refrigeration Grad trainee / shift supervisor • Quality circles, • Quality Systems • Key Learnings – Team working gets good results & PDCA
  • 19. 19 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Lean Tools • 1990-93 Kaizen Manager – Metallifacture, training by Nissan UK in OPF, 5S, TPM • 1993-95 Production Manager Metallifacture • Trained by Toyota in Pull systems and Leader standard work • Deployed targets to Team Leaders • Key Learnings Competency to run Kaizen events – Lean Tools make significant improvement, team working
  • 20. Direction for Improvement • 1995-97 Manufacturing • Policy deployment to • VSM to Improvement 20 Manager Wagon Automotive target improvement KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Priorities • Key learnings Direction and training alone will not make Breakthrough change
  • 21. 21 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Kaizen Model For Continuous Improvement DAILY KAIZEN® N N N N N Transform People In... ...Natural Teams PROJECT KAIZEN® P B C D E Transform Process With... ...Project Teams SUPPORT KAIZEN® Strategy & Hoshin Kanri Communication & Auditing 1 T T T K Provide Motivation With... ...Kaizen Steering Committee Training & Development K M M M M ...Kaizen Promotion Office
  • 22. 22 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute One Page A3 Report • Background – Good problem statement – Target vs. actual – Supporting data • Root Cause Analysis – Ishikawa diagram – 5 Why – 4M (man, material, machine, method) – Multiple causes • The Plan: Countermeasures – What, who, when – Set-based – Experiments • Follow up: Check – Process metric – Results metric • Target Condition • Adjust & Standardise – Learning from failure – Learning from success
  • 23. 23 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute A3 Reporting Deployment A3 – Company / Project A3 by Business: Business 1 Business 2 Business 3 . . • Summary of problem solving activity that fits on one page (typically A3 size paper) • Visual • Follows PDCA thought process • Does NOT have one set template – be creative A3 by Plant A3 by Area A3 by Line/Machine A3 by Workstation
  • 24. Structuring for Sustainable Improvement 24 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute DAILY KAIZEN® N N N N N Transform People In... ...Natural Teams N: Natural Teams (Team Leader and Staff), All Organizational Levels PROJECT KAIZEN® P B C D E Transform Process With... ...Project Teams P: Project Team Leader, BCDE: Cross Function Project Members SUPPORT KAIZEN® Strategy & Hoshin Kanri Communication & Auditing 1 T T T K Provide Motivation With... ...Kaizen Steering Committee 1: CEO Sponsorship, T: Top Management Team Sponsorship, K: Kaizen Manager Training & Development K M M M M ...Kaizen Promotion Office M: Motivators working for the Kaizen Manager Project Management and Transformation Office A3 Report
  • 25. 25 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Thank You Questions? www.uk.kaizen.com