The words "hoshin" and "kanri" mean direction and administration, respectively. Used together, they bring the meaning of “How do we manage our direction” or “How do we make sure we go the right way”. Hoshin kanri provide takes into account execution every step of the way, providing you with a systematic method of strategic planning and managing progress toward achieving your strategic goals.
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7 step planning process
The Hoshin Kanri method can be summarized with a 7-step
process also known as the Hoshin Planning:
1. Establishing organisation vision
An organisation should have a
proper vision, mission statement i.e., why the organisation exist? Purpose of
an organisation? What are the policies and procedures which are already in
place? Does it have defined organisation structures and job description
Example: General Motors' mission statement is “to earn
customers for life by building brands that inspire passion and loyalty through
not only breakthrough technologies but also by serving and improving the communities
in which we live and work around the world.
2 .Develop breakthrough objectives
The leadership team should develop
objectives and steps in order to achieve the Organisation vision. The major
objectives are derived from mission and vision statement of an organisation
while deriving major objectives the efforts of each and every person in an
organisation should be in-cooperated.
Example: From the mission statement be breakthrough
one of the objectives
1. To achieve 100% customer
satisfaction score.
3. Develop annual objectives
The senior management team should
also create a breakdown of an objective into annual goals. The annual goal need
to be derived for each and every divisions of the workforce to achieve the
objectives.
Example:
In order to achieve the objectives the below are the
some of the annual objectives
·
To audit all potential vendor to follow
our quality system procedures [Audit score greater than 95% ]
·
To educate all our vendor on our new
quality system procedures [Schedule a training program]
4. Deploy annual objectives
Once the annual objectives
established it need to be break down into workable objectives at department
level First, we develop top-level improvement priorities and then apply metrics
to them. Next, we create business-specific second- and third-level targets to
improve that tie directly to the top-level priorities. Basically, we’re
cascading down to create complete alignment throughout the entire organization.
Each level goes down into more and more detail to where you’re seeing the
product or shipping it. This alignment keeps people focused and integrates
different departments, making sure everything across the entire company aligns
back up to the strategic objectives.
Example:
For the stated annual objectives
the following are the some examples on how to deploy the objectives
|
Roles |
Responsible departments |
|
To verify whether the quality standards are well
established and to perform vendors audit |
Vendor development team |
|
To educate vendors on quality system and standards |
Training team |
|
To verify incoming parts and components and to prepare
assurance report |
Supplier quality assurance team |
5. Implement annual objectives
In this step really execution of
task begins by putting the objectives into workforce. i.e., turning the
paperwork into real work that team leader should provide adequate guidance to
the team member to achieve the goals.
Example: Visiting vendor
organisation and to perform audit whether the system and objectives are
perfectly deployed or not
6. Monthly review
A monthly review fosters a culture of accountability and
action by reviewing progress toward achieving annual improvement objectives. It is usually performed by the top management to examine
the performance of middle management.
7. Annual review
At the end of the annual cycle, a thorough review of the
year’s objectives shows how far ahead or behind the organization is against the
stated objectives and what adjustments must be made to the next cycle. This usually presented in the form of a annual report
to all Management, senior management, CEO and stockholders.
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