Hoshin Planning PDF

HOSHIN PLANNING OBJECTIVES o What is planning? o Why plan? o Problems with planning o Hoshin planning system o 4 phases of Hoshin planning system WHAT IS PLANNING? Planning means answering two questions: ◾Where are we going? ◾How do we get there? The road me...

HOSHIN PLANNING OBJECTIVES o What is planning? o Why plan? o Problems with planning o Hoshin planning system o 4 phases of Hoshin planning system WHAT IS PLANNING? Planning means answering two questions: ◾Where are we going? ◾How do we get there? The road metaphor Why plan? To develop a shared vision of where we are going and how we will get there. To improve as individuals and as an organization To compel renewal and reinvention To learn Effective planning compels us to take stock of our strengths and weaknesses and to take countermeasures. Planning also bursts the bubble of complacency by continually setting breakthrough goals.  ◾Unrealistic forecasts or expectations; the planning process is too rigid to adapt to changing conditions. ◾Goals are set arbitrarily with no clear link to need, means, or feasibility. ◾Too many goals; inadequate focus. ◾Wrong goals. ◾Goals are not SMART. PROBLEMS ◾Planned activities are not regularly reviewed; disconnect in time. WITH ◾Planned activities are reviewed punitively. ◾Planning is regarded as an event rather than an ongoing process. PLANNING ◾Planning is done in the absence of data. ◾Data is overanalyzed. ◾A separate department does planning. ◾ Inadequate communication between and within departments; horizontal and vertical alignment disconnect. ◾ The management team is reluctant to take stock of strengths and weaknesses HOSHIN PLANNING Hoshin kanri means ◾ Shining metal or compass ◾ Ship in a storm on the right path ◾ Strategic policy deployment Hoshin kanri or hoshin planning is the nervous system of Lean production. Hoshin planning is the short-term (one year) and long-term (three to five years) process used to identify and address critical business needs and develop the capability of our people, achieved by aligning company resources at all levels and applying the PDCA cycle to achieve critical results consistently. FOCUS OF HOSHIN PLANNING Hoshin planning targets the critical few problems, the big boulders on our road which are the key to improvement.  Plan-do-check-act Nemawashi HOSHIN PLANNING Catchball SYSTEM Control department concept A3 thinking  PDCA Hoshin planning comprises overlapping PDCA cycles ◾ Macro (three to five years): Practiced by senior management ◾ Annual: Practiced by operating managers ◾ Micro (weekly, monthly, and biannual): Practiced by operating managers and their subordinates  PDCA PDCA requires supportive management systems that make the current status visible to all and compel countermeasures. These can include both formal and informal reviews. Formal reviews should be held every six months (at the beginning of the year, midyear, and year-end). The year-end review entails a summary of what happened and informs next year’s strategic plan (which is presented in January) Less formal reviews can include ◾ Daily status reports shared by the management team ◾ Weekly management team meetings wherein department heads report status ◾ Shop floor process reviews of hot items PDCA also requires a solid understanding of metrics and visual management. SMART goals must be developed both for outcomes and the process. Control panels or dashboards need to be generated on a daily basis with minimal effort. Visual systems such as report boards and line-side process reviews help to create a shared understanding of the data. NEMAWASHI To prepare a tree for transplanting Connects the process of consensus building that creates alignment. Nemawashi entails reviewing a hoshin with all affected customers before its implementation. Nemawashi involves numerous revisions based on customer feedback.  CATCH BALL Catchball refers to the give and take required between and among management levels during the planning process. The catchball seeks to link the vision of the officers and the daily activities of shop floor team members. 1. Company officers develop a vision of what the organization needs to do, and capabilities that need to be developed. They “toss” the vision to senior managers. 2. Senior managers “catch” the officers’ vision and translate it into hoshins. Then they toss them back to the officers, and ask, in effect, “Is this what you mean? Will these activities achieve our vision?” 3. Officers provide feedback and guidance to senior managers. The hoshins can be passed back and forth several times. 4. Eventually a consensus is reached. Officers and senior managers agree that, “These are the hoshins that our company will use to achieve our vision.” 5. Senior managers now toss their hoshins to middle managers, who catch them and translate them into activities. These in turn are tossed back to senior managers who provide feedback and guidance. Eventually, a consensus is reached. Senior and middle managers agree that, “These are the activities (hoshins) we will use to achieve the senior managers’ hoshins, which in turn will achieve our company vision.” 6. Middle managers will in turn toss their hoshins to their subordinates.  CONTROL DEPARTMENT The control department, in this case quality, would coordinate the cross- functional activities required to achieve company goals. This includes ◾ Leading the hoshin planning process for quality ◾ Leading the setting of goals and means (through nemawashi and catchball) ◾Applying PDCA at the micro and annual level to confirm success ◾Making problems visible and supporting countermeasure activity A3 THINKING There are now four kinds of A3s: Hoshin planning A3: Used to summarize department and company Hoshins Problem-solving A3: Used to summarize problems and countermeasures Proposal A3: Used to present new ideas Current status A3: Used to summarize current condition of a hoshin, problem, or concern  A3 THINKING To make Hoshin Planning work, it is important that A3 Thinking combines scientific methods with “telling the managers do not accept their leader’s Hoshin story”. It can be used for planning, problem solving, proposals without questioning. Leaders should not attempt and summarizing current status of conditions. Combining with to deploy without verifying their subordinates the “Tools of Quality” can increase the effectiveness of the understanding and support of the plan. Review of presentation. Dennis discusses the benefits of standardizing the plans on a routine basis is critical to their and shortening reports. success. Dennis shared his amazement the first Departmental scoreboards can display departmental metrics time he was informed that he had a bi-monthly 2 and summaries to drive their performance. Visualizing their hr. Hoshin review scheduled with his superior, Mr. plan and activities makes it is easy for staff and management Cho. Obviously, their plans weren’t going to sit on to get a feel for what they are doing and verify their alignment the shelf and collect dust. Hoshin follow through with top level activities. can also be audited as part of the PDCA check process. Telling stories with A3 Thinking Example of a Problem solving A3  A3 REPORT Strategic planning Current status  Hoshin generation Hoshin deployment 4 PHASES OF HOSHIN PLANNING Hoshin implementation Final evaluation  Hoshin Generation means setting the annual goals of a company and its departments. HOSHIN GENERATION Goals address both processes and outcomes and are usually developed by senior management in consultation with their subordinates.  This entails establishing lower-level goals and plans, both within and across departments, through nemawashi and catchball. HOSHIN DEPLOYMENT Each level must translate the hoshin goal and means into meaningful action. Subordinates should not accept the leader’s hoshin without question.  This refers to the management activities required to implement the hoshins developed and involves applying the various PDCA cycles. HOSHIN IMPLEMENTATION There should be both formal and informal reviews throughout the year to make the current status and countermeasures visible.  This refers to the year-end assessment of each hoshin. HOSHIN EVALUATION Were process and outcome goals achieved? If so, ask why five times. If not, also ask why five times. What did we learn? How can we strengthen our capabilities? This is what it means to be a learning organization.