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Table 1. The Seven Experiments of Hoshin Kanri. Executing Hoshin Kanri Team and Experiment of Hoshin Kanri


4 Teams Hoshin Team Tactical Teams


Operational Teams Action Teams


1 2 3 4 5


6 7


deals with the implementation of Kaikaku (radical change) and Kaizen (improvement) projects. Table 1 illustrates the example company’s implementation of Hoshin Kanri, with at least four teams having spe- cific allocated duties. Other tools available for use during the planning and implementation of Hoshin Kanri include strategy maps, market analysis, competitor analysis, value stream mapping and a host of others. Te PDCA process improvement cycle enters repeatedly in the plan’s devel- opment, implementation and review. Table 2 is a proven roadmap for the implementation of Hoshin Kanri that applies to all levels of leadership within an organization. During the implementation of


Hoshin Kanri, review certain key issues in the organization. Some of those in the example included: • Review and update the organiza- tion’s purpose (vision and mission).


• Implement environmental analy- sis through SWOT and political, economic, social and technological (PEST) analyses.


• Devise strategic imperatives. • Develop long and medium-term strategies.


• Plan the tactics (six to 18 months’ intervention) to support strategies.


• Set process improvement projects to support tactics (six to 12 months).


Plan 7 Experiments


Long-Term Strategy Mid-Term Strategy Annual Strategy Tactics


Operations


Kaikaku (radical change) Kaizen (improvement)


• Review the correlation between different levels of Hoshin plan (correlation analysis).


• Define owners for different levels of the plan.


• Set control items and prepare a control item list.


• Deploy the policy. • Deploy the control items. • Implement the policy plan. • Check the results of implementa- tion on a monthly basis.


• Analyze deviation of the plan. • Communicate proactively with stakeholders and process owners.


Monitoring Progress Through Measurement and Review


Vigorous monitoring is required


at each stage of a PDCA process improvement cycle for the attainment of the desired results. Corrections or revisions usually are implemented whenever any non-conformance is noted. Te review of the company’s plan progress must follow the PDCA cycle, and it applies to all levels of leadership within the organization. After this company’s deploy- ment of the Hoshin Kanri planning process, it checked the results of implementation on a monthly and yearly basis. Deviations from the plan were analyzed and the value of each strategy and certain per- formance measures were debated.


Table 2. The Scan, Plan, Do, Check or Study & Act Cycle. Scan


Check market condition.


Design a midterm strategy.


Design the annual Hoshin (plan).


Align the organization through catchball.


34 | MODERN CASTING June 2014 Do


Engage the workforce to execute the strategy.


Check


Create a lean-thinking environment.


The president’s diagnosis.


Review tables were created and used to compare actual versus expected results and document any changes to the plan. Review tables make the plan a living document. Abnormality tables also were


created to document any occurrence outside the normal range of variation, and to facilitate root cause identi- fication and the implementation of corrective actions.


The Bottom Line Te centerpiece of any business


improvement effort is strategic plan- ning. In the metalcasting industry, seeing where the business is heading and developing strategic initiatives to address identified future needs will benefit all stakeholders. At the end of implementing a Hoshin Kanri planning process, a complete align- ment of all the company’s strategies and initiatives will be achieved. Undertaking Hoshin Kanri


often requires the commitment of resources with a focus on achieving larger organizational objectives. It is worthwhile to ensure the informa- tion gathered represents what the company wants to achieve, and that the information is updated as quickly as new data appears using the catch- ball process. Training and coaching must be


provided to individuals involved in the planning, execution and verifica- tion of results to ensure each partici- pant in the strategic planning process understands his or her role. Hoshin Kanri can and should be fine tuned to suit an individual company’s needs. Its effectiveness as a strategic plan- ning process can be seen at the end of the implementation in terms of improved revenue, usually achieved by involving all employees at every level of the organization.


Act


Institutionalize Hoshin Kanri (plan deployment) through standardized work, Kaizen (improvement) and leadership development.


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