HoshinPlanning.pptx

11Policy Deployment“Hoshin KanriHoshin Kanri”2Hoshin KanriHOHO-Direction-DirectionSHINSHIN-Pointer-PointerHO+SHINHO+SHIN Loosely translated as“The Loosely translated as“The Compass Needle”that gives the direction Compass Needle”that gives the direction(policy).(policy).KANRIKANRI.Deployment.DeploymentPolicy Deployment3Hoshin Style Management“Hoshin management aligns the activities of“Hoshin management aligns the activities of people throughout the company so that the people throughout the company so that the company can achieve key goals and react company can achieve key goals and react quickly to a changing environment.”quickly to a changing environment.”(Shiba,Graham,and Walden,1993)(Shiba,Graham,and Walden,1993)44Policy DeploymentWhat is Hoshin,or Policy Deployment?What is Hoshin,or Policy Deployment?“A never ending,strict methodology for planning the activities of a business and measuring progress against targets”.What does it do for us?What should we hope to achieve?1.Alignment between all levels of the corporation;a road-map that EVERYONE shares,understands,and agrees upon.2.A methodology for continuous improvement.3.An effective way to measure activities against clear goals.55Hoshin was developed to:n nFocusFocus the organization on a very few key the organization on a very few key objectives that are the most important to its objectives that are the most important to its success(or sometimes survival).success(or sometimes survival).PlanPlann nIdentifyIdentify important areas to change or improve.important areas to change or improve.(Strategic Vision).(Strategic Vision).PlanPlann nDetermineDetermine most effective actions at each level of most effective actions at each level of the organization needed to accomplish these the organization needed to accomplish these changes.changes.PlanPlann nCreateCreate a detailed a detailed planplan to implement the actions.to implement the actions.DoDon nProvideProvide a method to a method to review and adjustreview and adjust the plan.the plan.Check/ActCheck/Act66Policy DeploymentAnnualGoalsStrategyXVision77Policy DeploymentAnnualGoalsStrategyXVisionAs a carpenter needs a vision of what to build in order to get the full benefit of a hammer,we need a clear vision of our organizational objectives and better management methods before we pick up our lean tools”.-James Womack Policy DeploymentPolicy Deploymentvs.vs.Cascade of ObjectivesCascade of Objectives9Policy DeploymentPolicy DeploymentEmphasis is placed on theEmphasis is placed on the strategy strategy to achieve the to achieve the measurablemeasurable.n nStrategy to achieve the measurable is clearly defined and Strategy to achieve the measurable is clearly defined and understood.understood.n nA controlled methodology(process)is utilized to review.A controlled methodology(process)is utilized to review.n nTendency to achieve the Tendency to achieve the objectiveobjective despite despite the method used(action rather than process)the method used(action rather than process)n nNo focusNo focus on the process,but in activities on the process,but in activitiesn nVolatile,always changing,Not Self-SustainedVolatile,always changing,Not Self-Sustainedn nPressure to“achieve the number”.Problems are not good.Pressure to“achieve the number”.Problems are not good.Cascade of ObjectivesCascade of Objectives10Policy DeploymentPolicy Deploymentn nObjective Deployment(clear purpose)Objective Deployment(clear purpose)n nStrategy Deployment(systematic method)Strategy Deployment(systematic method)n nAvoids Micro Management of results Avoids Micro Management of results(Ok/Not Ok)(Ok/Not Ok)(Focus is on the Strategy/Process)(Focus is on the Strategy/Process)n nNo discussion in terms of strategy(means)No discussion in terms of strategy(means)n nDoes not provide you the knowledge of the real Does not provide you the knowledge of the real problems.problems.(No formal Current State Reflection)(No formal Current State Reflection)Cascade of ObjectivesCascade of Objectives11Policy DeploymentPolicy Deploymentn nPlanning,Definition&Deployment of the Objective&Planning,Definition&Deployment of the Objective&Strategy based in communication between all the layers Strategy based in communication between all the layers of the organizationof the organizationn nTwo way communications melts all barriers between Two way communications melts all barriers between departments(this DOES NOT mean agreement)departments(this DOES NOT mean agreement)n nTop Down approach(push)Top Down approach(push)n nNo clear strategic direction(Poor alignment and No clear strategic direction(Poor alignment and communication between areas or Depts.)communication between areas or Depts.)n nMonitoring/follow-up method not clearly defined.Monitoring/follow-up method not clearly defined.Cascade of ObjectivesCascade of Objectives1212Good ImplementationGood ImplementationStarts with AlignmentStarts with Alignment 1313Good ImplementationGood ImplementationStarts with AlignmentStarts with Alignment INFORMATIONAwareness:Share the goals from the top downUNDERSTANDINGAlignment:People understand how What they do supports dpt.goalsCOMMITMENTEveryone works toward a common visionACTIONExecution and Follow Up(Metrics drive Behavior)Fatal Leap!1414Policy Deployment:Aligning the organizationn nBegin with the Begin with the missionmission.n nCreate the Create the strategystrategy.n nExtract the annual Extract the annual goalsgoals.n nDeployDeploy(communicatecommunicate)the goals to the)the goals to the entireentire organization.organization.n nMonitorMonitor the planning and implementation.the planning and implementation.n nConduct regular Conduct regular reviewsreviews to show to show supportsupport.n nPromotePromote the the problem solvingproblem solving process.process.n nReflectReflect on data and lessons learned for the on data and lessons learned for the future.future.1515Steps to Hoshin Planning and Metricsn nBegin with the Begin with the visionvision.n nDetermine the seven to ten year direction based on customer Determine the seven to ten year direction based on customer requirements,growth strategies,and other external factors.This is requirements,growth strategies,and other external factors.This is“Ideal State”“Ideal State”n nCreate the Create the strategystrategy.n nThe“future state”drives the three year plan based on The“future state”drives the three year plan based on aggressiveness,available resources(time,capital,etc),current aggressiveness,available resources(time,capital,etc),current environmental constraints.environmental constraints.n nExtract the annual Extract the annual goals.goals.n nMeasurable,achievable goals drive the behavior and performance of Measurable,achievable goals drive the behavior and performance of each individual within the organization and set the tone for the each individual within the organization and set the tone for the year.Annual goals are the“implementation”of strategic goals.year.Annual goals are the“implementation”of strategic goals.n nDeployDeploy the goals to the the goals to the entire organizationentire organization.n nUsing Policy Deployment tools,the annual goals are cascaded Using Policy Deployment tools,the annual goals are cascaded through the organization.Each and every person should know what through the organization.Each and every person should know what the expectations are for the year.the expectations are for the year.n nMonitorMonitor the planning and implementation at the planning and implementation at all levelsall levels.n nEach level must develop implementation plans achievable at their Each level must develop implementation plans achievable at their level,and demonstrate alignment to the annual goals.level,and demonstrate alignment to the annual goals.1616Steps to Hoshin Planning and Metricsn nConduct regular Conduct regular reviewsreviews to show support.to show support.n nBoth MBWA and regular formal reviews are necessary to Both MBWA and regular formal reviews are necessary to coach/mentor(support)and also to instill accountability.coach/mentor(support)and also to instill accountability.n nPromote the Promote the problem solvingproblem solving process on the floor.process on the floor.n nThe execution phase necessitates using the PDCA methodology to The execution phase necessitates using the PDCA methodology to identify and eliminate problems that prevent goal attainment.identify and eliminate problems that prevent goal attainment.n nReflectReflect on data and lessons learned for the future.on data and lessons learned for the future.n nBased on results,determine if projects and activities are taking us Based on results,determine if projects and activities are taking us to our goals(review).If results are positive,standardize the to our goals(review).If results are positive,standardize the actions(sustainment).If not,ask why.actions(sustainment).If not,ask why.n nCapture“best practices”for the future.Capture“best practices”for the future.n nUse actual results to formulate the next years annual goals.Use actual results to formulate the next years annual goals.n nBe sure results support the goals and the overall vision!Be sure results support the goals and the overall vision!n nSPEND TIME ON THE FLOOR-WITH THE PEOPLE SPEND TIME ON THE FLOOR-WITH THE PEOPLE(MBWA)(MBWA)n nThe implementation of annual goals is achieved at the lowest(most The implementation of annual goals is achieved at the lowest(most value added)level.The rest of us are just support.Remember,value added)level.The rest of us are just support.Remember,goals come from top down,but implementation is from bottom up.goals come from top down,but implementation is from bottom up.Spend time“where the action is”to show support,mentor,and Spend time“where the action is”to show support,mentor,and truly understand the current state.truly understand the current state.1717Hoshin Planning Methodologyn nStarts with alignmentStarts with alignment n nUpper Management determines the visionUpper Management determines the vision and and communicates via a formal municates via a formal process.n nThis process is designed so that This process is designed so that commitment results commitment results from the sharing of informationfrom the sharing of information and the understanding and the understanding of goals.of goals.n nIs a dynamic,interactive process involving Is a dynamic,interactive process involving everyone in the organization.everyone in the organization.n nEveryone must Everyone must understandunderstand their role.their role.n nDevelopment and understanding the process is key to Development and understanding the process is key to results(standardization).results(standardization).n nAccountabilityAccountability drives results(follow-up)drives results(follow-up)n nFrequent communicationFrequent communication is critical.is critical.n nGoals are top down,but Goals are top down,but implementation and support implementation and support are bottom up.are bottom up.n nCoaching and mentoring are critical in the development of Coaching and mentoring are critical in the development of both people and process.both people and process.n n This is not a“go and do”process.This is not a“go and do”process.Goal18Roles&ResponsibilitiesCreate the Need For ChangeChange Agents(Support&Monitoring)Execute theChangeManagersMiddleManagementSupervisorsOperators1919Hoshin Planning Hierarchy1st Level:Strategic Vision&Hoshin Objectives2nd Level Strategies.Tactical LevelGoalGoalGoalGoalGoalGoalGoalGoalGoalGoalLeadershipPlant ManagersG/Ls and T/Ls2020Hoshin Planning ProcessDeployReview2121Hoshin Planning“Interactive”PROCESS President Dept Mgr Area Shops cells/lines HowHowHowHowTargets(What)WhatWhatWhatHow MuchHow MuchHow MuchHow Muchn nEveryone understands their role and their objectives:all Everyone understands their role and their objectives:all throughout the organizationthroughout the organization.2222Policy DeploymentPolicy DeploymentPolicy Deployment Process ToolsDISCIPLINED PROCESSDEPLOYMENTOF OBJECTIVESAND THEDEPLOYMENTOF THE PLANVISION3-5 YEARPLANANNUALOBJECTIVESEXECUTIONREGULARPROCESSREVIEWSANNUALREVIEWS D P C A2323Policy DeploymentStep 1:Create the VisionPolicy Deployment PlanningEXECUTIONVISION3-5 YEAR PLANSANNUAL OBJECTIVESDEPLOYMENT OF OBJECTIVESAND DEPLOYMENT OF PLANSREGULAR PROCESSREVIEWSANNUAL REVIEWS PA D C KEY STEPS KEY FEATURES PROCESS ELEMENTEstablish Data input from Strategic informationOrganization Internal performance gatheredVision Customer focused Customer focus Strengths&weaknesses Competitive analysis Environmental analysis Draft of vision reviewedVision reviewed with with the organization for organization for reality check reality check everyone at all levels Finalized vision Vision communicated to communicated clearly to all levels everyone at all levels 2424Policy DeploymentStep 2:Develop a 3-5 Year PlanPolicy Deployment PlanningEXECUTIONVISION3-5 YEAR PLANSANNUAL OBJECTIVESDEPLOYMENT OF OBJECTIVESAND DEPLOYMENT OF PLANSREGULAR PROCESSREVIEWSANNUAL REVIEWS PA D C KEY STEPS KEY FEATURES PROCESS ELEMENTDevelop three tofive year planFocus on the gap between Focus on the gap betweenpresent organizational present organizational capability and the required performance and the performance to reach the performance required tovision reach the visionAccurate data from past Data analysis determinesperformance determines the present organization the present capability of performance and the plans the organization and the to be developed means to be pursuedThree to five year plancommunicated to everyoneat all levels2525Policy DeploymentStep 3:Develop Annual ObjectivesPolicy Deployment PlanningEXECUTIONVISION3-5 YEAR PLANSANNUAL OBJECTIVESDEPLOYMENT OF OBJECTIVESAND DEPLOYMENT OF PLANSREGULAR PROCESSREVIEWSANNUAL REVIEWS PA D C KEY STEPS KEY FEATURES PROCESS ELEMENTDevelop annualCompletely integrated Integrated with 3-5 year objectiveswith three to five year planplan and visionSmall#of focus points Focus on a small number of“Few more important key objectivesefforts versus more”Data used to develop Accurate data,minimally compelling“reasons for filtered is the basis for improvement”selecting 1 year objective Determine which groupsReason for improvement can contribute with actionmust be compelling;plansconvincing case must be made to work on any Data used to set tentative selected objective rather targetsthan something else2626Policy DeploymentStep 4:Deploy the ObjectivesPolicy Deployment PlanningKEY STEPS KEY FEATURES PROCESS ELEMENTEXECUTIONVISION3-5 YEAR PLANSANNUAL OBJECTIVESDEPLOYMENT OF OBJECTIVESAND DEPLOYMENT OF PLANSREGULAR PROCESSREVIEWSANNUAL REVIEWS PA D C Deployment rolldownClear,disciplined action plans Communicate the objectives to depts.to developwith direction of improvement,plans,includingwhat is to be measured,and the Determine what plans can be targets and meansprocess to be improved developed to achieve the objectiveContinuous give and take (catchball)between levels Catchb