is Hoshin Kanri? Description
Hoshin Kanri (HK) is a cyclic planning and management concept from Japanese
origin. It is applied at two levels:
- The strategic planning level. A small number of key long-range
corporate objectives are planned systematically. They are called
Breakthrough Objectives, and typically last 2 to 5 years with little
change. They are directed at achieving significant performance improvements,
or at making significant changes in the way an organization, department
or key business process operates.
The day-to-day level. Most of the time in an organization
must be devoted to keeping the business running. Carrying out the value-added
activities of the key business processes, which fulfill the purpose of the
organization. These day-to-day Business Fundamentals must be
monitored on a daily basis in all parts of the organization. This is how
the process owners are able to take real-time corrective action for continuous
process improvement (Kaizen).
The two-pronged Hoshin Kanri approach is considered one of the pillars
of the Total Quality Management
philosophy. The method can also be thought of as the application of the
Deming Cycle (PDCA / PDSA) of Plan,
Do, Study (Check), Act to the management process. The Hoshin Review
of the plan of last year is the basis (STUDY) for the new Hoshin Annual
Plan (PLAN). This plan is cascaded down the organization via Annual
Planning Tables. At each level, the policy is translated and implemented
(DO) into policies, targets and actions for the next level down. These APTs
are then periodically (monthly) reviewed. Causes of any differences between
expected and actual results are identified, discussed and agreed. Corrective
action is identified (ACT).
The Japanese word Hoshin means: a course, a policy, a
plan, an aim. The word Kanri means administration, management, control,
charge of, care for. The HK process is often compared to calibrating compass
needles. HK is sometimes also referred to as: Policy Deployment or
Origin of the Hoshin Kanri philosophy. History
The Hoshin process developed in Japan during the 1960s from quality
management practices at Bridgestone Tire Company, Toyota, Nippon Denso, Komatsu,
and Matsushita. It was strongly influenced by the
Plan-Do-Check-Act cycle of Deming,
Management by Objectives
of Peter Drucker, the new divisional concept of General Motors, and the lectures
by Dr. Juran on general management. The term Hoshin Kanri became widely accepted
in Japan in the mid-1970s. By the late 1970s the experience accumulated in
industry had been distilled into a formalization of the principles, and the
first books on the subject appeared. The first symposium on HK was held in
Japan in 1981, and in 1988 the Japanese Association of Standards published
a series of works dealing with HK practices. During the 1980s, the concept
spread to the USA. Hewlett-Packard, Procter & Gamble, Florida Power & Light,
Intel, and Xerox began to implement their own versions of HK.
Usage of Hoshin Kanri Planning. Applications
- Long-term strategic planning with the application of TQM principles
- Developing shared strategic goals. Compare:
- Continuous organizational improvement.
Steps in Hoshin Kanri. Process
- Annual policy and medium- to long-term policy.
- Basic company philosophy and quality policy.
- Converting methodological policy into objective policy.
- The composition of policy.
- Two deployment styles of target – top-down and bottom-up.
- Target deployment and “catch-ball”. A discussion process before
policy is finally decided, wherein the policy ball (draft policy) is thrown
back and forth between top and middle managers before a final decision is
made. Compare: Appreciative
- Top management internal quality control audit.
Strengths of Hoshin Kanri. Benefits
- Focuses the entire organization on the vital few, rather than
the trivial many.
- Communication of a shared strategic vision.
- Participative. Creates alignment and involvement towards
- Integrates and encourages cross-functional cooperation to achieve
- The progress on plans is carefully monitored. This allows for a response
to non-execution and corrective action.
- Strategic planning is systematic: The format of the plans is
unified via standards.
- The planning process is continuously improved.
- Emphasis on a thorough analysis and understanding of problems which
occurred during the previous cycle of planning/deployment. Enables
Limitations of Hoshin Kanri. Disadvantages
Assumptions of the Hoshin Kanri Concept. Conditions
- The best way to obtain the desired result is to ensure that all employees
in the organization understand the long-range direction and that they are
working according to a linked plan to make the vision a reality.
- There are fundamental process measures which must be monitored to assure
the continuous improvement of the key business processes of the organization.
- Breakthrough activities can only really be carried out when the business
fundamental activities are under reasonable control.
Book: Yoji Akao - Hoshin Kanri - Policy Deployment for Successful
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Compare with Hoshin Kanri Planning:
Total Quality Management
| Kaizen |
Deming Cycle (PDSA) |
Root Cause Analysis |
Management by Objectives
| Quality Function
Deployment | Balanced
| Six Sigma
Return to Management Hub: Change & Organization | Strategy
| Supply Chain & Quality
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