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Using Hoshin Kanri to develop an Continuous

Improvement Culture

Dan Alexander – Kaizen Institute

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Managing DirectorKAIZEN Institute UK

Dan Alexander (Born 1964)

dalexander@kaizen.com

Kaizen Institute

• Founded by Masaaki Imai in 1985• Over 400 Consultants worldwide• Specialists in Kaizen & Lean

Implementation

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KAI Change

ZEN Good

Kaizen = Continuous Improvement (CI)

…by Everybody! Everyday! Everywhere!

Teaching the True Meaning of “Kaizen”

“Change for the better”

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What is Hoshin Kanri?

方針管理hoshin kanri

Direction management, control

“Policy Deployment”

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Team with no “North Star”

== TASK

This seems important!

This seems interesting

There is always too much to do and by random

choices you get nowhere

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Team With a “ North Star”

North Star

Things you must do!

Things you no longer want to

do

Things you can do

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Policy Deployment 7 Step Process

7

Deploy Improvement Priorities

Develop Annual BreakthroughObjectives and Improvement

Priorities

Monthly Review

Implement ImprovementPriorities

Annual Review

PLANNING

IMPLEMENTATION

REVIEW

Establish Organisational Vision

Develop 3-5Year Breakthrough Objectives

Annual Review

Self-Diagnosis

Countermeasures

Catch ball

Lean Tools

Check

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Breakthrough Objectives

“ I believe this nation should challenge itself to put a man on the moon, and return him to earth safely by the end of this decade”- John F. Kennedy 1961

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How Many Breakthroughs?

9

Critical Few For Focus

That Translate Directly To Q,C,D,Growth

LESS IS

MORE

A big part of Policy Deployment is getting your organisation to FOCUS!

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Top Level Improvement Priorities

3-5 Year Breakthrough Objectives

Annual Breakthrough Objectives

Answers the question“How do we achieve

our first yearBreakthrough Objective”

Top Level Improvement Priorities

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Policy Deployment X Matrix

0 >=1

0 >=1

0 5% >5%

>= 80% <80%

>= 80% <80%

>= 80% <80%

>= 80% <80%

>= 80% <80%

>= 80% <80%

>= 80% <80%

>= 50% <50%

actual

actual

ytd +/-

Organic Days 0

ytd +/-

0

actual

plan

New Client Days

plan

Margin % 0%

plan

ytd +/-

actual

Margin $$ 0

plan

actual

ytd +/-

ytd +/-

actual

Nov Dec

Revenue 0

plan

Jul Aug Sep OctMar Apr May JunFinancial Results Targets or Limits Jan Feb

% Participation 0

plan

Milestone COT% 0%

plan

ytd +/-

ytd +/-

actualHorizon 3 Revenue 0

plan

actual

ytd +/-

plan

Missed Days vs. Contract 0

plan

ytd +/-

actual

actual

actualLost Clients 0

plan

ytd +/-

actual

Nov Dec

Member Turnover 0

Jul Aug Sep OctMar Apr May JunKPI Targets or Limits Jan FebAndon

PD Tracking (name)Level 1 PD 2009

(date)

3 Year Strategic Initiatives

1 Year Breakthrough

Objectives

1 Year Improvement

Priorities

Improvement Targets

Bowler Chart

Required Resources

X-Matrix

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POLICY DEPLOYMENT X MATRIX

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Deployment Through “Catch Ball”

CEO

Dept. Mgrs.

Team Leaders.

Senior Managers

Establish “what” top-down

Develop consensus about “how” through two-way communication (up-down)

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Visual Management of Hoshin Kanri

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Visual Management of Hoshin Kanri

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The Review Cycle Calendar

• Initially, twice per month to speed up the learning cycle

• Monthly at mature state• Weekly or daily checks

at mid levels• Discuss misses only• Problem solving initiated

for gaps

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My Journey

• 1983-85 Theoretical Knowledge of JIT and Toyota Production System

• 1986 – Final Year dissertation – Benefits of One piece flow assembly in car seat slide assembly

• Key Learning – The theory works

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First Steps

• 1986-90 Electrolux refrigeration Grad trainee / shift supervisor

• Quality circles, • Quality Systems

• Key Learnings – Team working gets good results & PDCA

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Lean Tools

• 1990-93 Kaizen Manager –Metallifacture, training by Nissan UK in OPF, 5S, TPM

• 1993-95 Production Manager Metallifacture

• Trained by Toyota in Pull systems and Leader standard work

• Deployed targets to Team Leaders

• Key Learnings Competency to run Kaizen events – Lean Tools make significant improvement, team working

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• 1995-97 Manufacturing Manager Wagon Automotive

• Policy deployment to target improvement

• VSM to Improvement Priorities

• Key learnings Direction and training alone will not make Breakthrough change

Direction for Improvement

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Kaizen Model For Continuous Improvement

DAILY KAIZEN®

N N N N

NTransform

PeopleIn...

...Natural Teams

PROJECT KAIZEN®

B C D E

PTransformProcessWith...

...ProjectTeams

SUPPORT KAIZEN®

Strategy &

Hoshin Kanri

Strategy &

Hoshin KanriCommunication

&

Auditing

Communication

&

Auditing

T T T K

1Provide

MotivationWith...

...Kaizen Steering

Committee

Training

&

Development

Training

&

Development

M M M M

K...Kaizen

PromotionOffice

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One Page A3 Report

• Background– Good problem statement– Target vs. actual– Supporting data

• Root Cause Analysis– Ishikawa diagram– 5 Why– 4M (man, material, machine, method)

– Multiple causes

• The Plan: Countermeasures– What, who, when– Set-based– Experiments

• Follow up: Check– Process metric– Results metric

• Target Condition

• Adjust & Standardise– Learning from failure– Learning from success

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A3 Reporting Deployment

A3 – Company / Project

A3 by Business:Business 1Business 2Business 3..

A3 by Plant A3 by AreaA3 by Line/MachineA3 by Workstation

• Summary of problem solving activity that fits on one page (typically A3 size paper)

• Visual• Follows PDCA thought

process• Does NOT have one set

template – be creative

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Structuring for Sustainable Improvement

DAILY KAIZEN®

N N N N

NTransform

PeopleIn...

...Natural Teams

N: Natural Teams (Team Leader and Staff), All Organizational Levels

PROJECT KAIZEN®

B C D E

PTransformProcessWith...

...ProjectTeams

P: Project Team Leader, BCDE: Cross Function Project Members

SUPPORT KAIZEN®

Strategy &

Hoshin Kanri

Strategy &

Hoshin KanriCommunication

&

Auditing

Communication

&

Auditing

T T T K

1Provide

MotivationWith...

...Kaizen Steering

Committee1: CEO Sponsorship, T: Top Management Team Sponsorship, K: Kaizen Manager

Training

&

Development

Training

&

Development

M M M M

K...Kaizen

PromotionOffice

M: Motivators working for the Kaizen ManagerProject Management and Transformation Office

A3 Report

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Thank You

Questions?

www.uk.kaizen.com