Hoshin Planning

Hoshin Planning Process

WorkshopMonth xx, 20xx

2 freeleansite.com File Number

Agenda

- Introduction/Ice Breaker 5 min.

- What is Hoshin Planning? 2 min.

- Why use Hoshin Planning? 24 min.

- How to Use Hoshin 35 min.

- Questions and Answers 15 min.

- Example (tbd) 15 min.

- Wrap Up 5 min.

What is Hoshin Planning?


Hoshin Planning

• Hoshin is a Japanese term = “compass needle”- Designates setting strategic direction of the organization

• For HOS Hoshin is:- A closed loop management system for identifying, focusing and linking the

organization to achieve results. Additionally it contains a daily management that drives constant progress monitoring of these results and reacts to issues as they arise

• Traces roots to:- Management By Objectives (MBO) – Drucker- Plan-Do-Check-Act (PDCA)- Shewhart/Deming

• Sometimes referred to as:- Policy Deployment- Management By Policy- Management By Planning

• U.S. Based Companies That Have Embraced It- Danaher, Hewlett-Packard, Proctor & Gamble, Xerox, Florida Power and Light

(FP&L)

Why Use Hoshin Planning?


Why do we need Hoshin Planning?

• Why?:- Proper alignment requires more than independent

establishment of strategies- Hoshin Planning will align those strategies and drive the

execution- To Achieve Breakthrough RESULTS!

• Common Failure Modes:- No review of actions or accountability- Plans not visible or not measured or measurable- Not aligned or linked to the needs of the site

A PROCESS to help drive Results!


Hoshin is an active relationship between 2 parts

• The two parts of Hoshin are…- Hoshin Management- Daily Management

• Hoshin Management (Strategies & Objectives)- Special actions/plans are required to achieve a desired

result

• Daily Management (Routine KPI Management)- Can achieve targets with usual improvement activity and

resources

Hoshin Has Two Sides


Why Use Hoshing Planning?Im

prov

emen

t

Base Base

KAIZEN

Year 0 Year 1 Year 2 Year 3 Year 4

BaseBase

BaseKAIZEN

KAIZEN

Strategic Objective

is Achieved

!

Hoshin Planning

Hoshin Planning

Hoshin Planning

To Build Sustainable Competitive Advantage


Why Use Hoshin Planning?

VS.

To Align Objectives and Targets Throughout the Organization


Daily Management

• Daily Management (Routine KPI Management)- A visual management system to highlight day-to-day issues

that drives rapid implementation of countermeasures.

- A communication tool that drives alignment to the lowest levels of what is important to the site.

- Strong linkage into the Visual Management and Leadership Standardized Work systems at the site

Daily, Weekly & Monthly Monitoring of Progress


Hoshin Planning SummarizedBoth Controlled by Rigorous Process Control Systems and measured frequently to drive results

OBJECTIVES

STRATEGIES

CashGrowth

QMS

PeopleSTRAPAOP

Daily Mgt. Hoshin Management

All activities necessary to carry out the routine work for the SBU

Defined to follow and be governed by…Rapid Problem Solving methodsPDCA

Demonstrated through standardized work On the shop floorControlled and driven through Leadership Standardized Work in daily gemba walks

How to Use Hoshin?


Top Mgt

Middle Mgt

Supervisor

Front LineAssociate

Breakthrough

Daily Management

Kaizen

How Should You Spend Your Time?

What Does Hoshin Planning Mean To You?

Adapted From Beyond Strategic Vision, Effective Corporate Action With Hoshin Planning; Cowley, Domb, 1997 pg. 57


Timing of Hoshin Planning

JULY AUGUST SEPT OCT NOV DEC

STRATEGIC PLANNING

HP LEV 1 COMPLETE

ACTION PLANDEV COMPLETE

JAN

NEWYEAR

HPBEGINS

HP LEV 2 & 3 COMPLETE

CONCURRENT BUDGETING PROCESS


Deploy Improvement PrioritiesDeploy Improvement Priorities

Develop Annual BreakthroughDevelop Annual BreakthroughObjectives and ImprovementObjectives and Improvement

Priorities Priorities

Monthly ReviewMonthly Review

ImplementImplement Improvement InitiativesImprovement Initiatives

7 Phase Hoshin Planning Process

Annual Review

PLANNING

IMPLEMENTATION

REVIEW

Establish Establish Organizational VisionOrganizational Vision

Strategic Planning/ Develop 3-5Strategic Planning/ Develop 3-5Year Breakthrough ObjectivesYear Breakthrough Objectives

Annual ReviewAnnual Review

Self-Diagnosis

Root Cause Countermeasures

Catchball

Lean SS CAP

Critical Step

P

D

C

A


The Process of Critical Thinking (PCT)

Step 1 : WHATBreakthrough Thinking

Step 3 : HOWIdentify Key Driver Process

Step 4 : HOW MUCH/ WHENDetermine Measures & Track

Step 5 : WHOIdentify Key Resources &

Deploy

Step 2 : HOW FARAnnual Breakthroughs


PCT Step 1 – WHAT?

Current Situation

BreakthroughObjective

CurrentSituation

World-Class

Industry Standard

Best-In-Class

GAP

Breakthrough Thinking Leads us to World Class


PCT Step 2 - HOW FAR?

Annual BT Objectives Yr 2

Current Situation



BreakthroughObjective

Yr 1Yr 2

Yr 3

Identify First Year Breakthrough Objective


PCT Step 3 - HOW?

Why?

GAP

Annual BreakthroughObjective

Current Situation

Why?Why?

Why?Why?

ImprovementPriority

Identify Key Driver Processes


PCT Step 4 - HOW MUCH/ WHEN?

Determine Measures & Track

0

100


PCT Step 5 - WHO?

40%

20%

20%

Identify Key Resources & Deploy

RelativeImpact On

Improvement Priorities

CurrentDistribution

Of Resources

Resource A

Team B

Resource C

Resource D

Team E

100%

0% 0%

100%

3%


Daily Management and Hoshin PlanningIm

prov

emen

t

DailyMgmt

Daily

KAIZEN

Year 0 Year 1 Year 2 Year 3 Year 4

DailyDaily

DailyKAIZEN

KAIZEN

Hoshin Planning

Hoshin Planning

Once Breakthrough is achieved…process is standardized to

Daily Management! StrategicObjective is

Achieved!

MgmtMgmt

MgmtMgmt

FoundationforHP

Hoshin Planning


Top LevelImprovement

Priorities

HOW

AnnualBreakthrough

Objectives

HOWFAR

3-5 Year Breakthrough

Objectives

WHAT

Targetsto Improve

HOW MUCH

PCT & the Top Level HP Matrix

All itemsare listed

in priority orderstarting from

the centerRESOURCES

= Primary Responsibility

= Secondary Responsibility

WHO

OWNER

Annual Metrics


RESOURCES

AnnualBreakthrough

Objectives

Targetsto Improve


Objectives


Priorities



5- WHO

4- HOW MUCH

Use dots to show relationship of Targets and Resources to the Improvement Priority

3- HOW

Use dots to show relationship of

Improvement Priorities to Annual Objectives

2- HOW FAR

1- WHAT

NOTE: Only Solid dots on a resource deploy to the

next level

The whole picture of your company on one sheet of paper!

Complete Top Level HP Matrix

OWNER


3-5 YearBreakthroughs

TargetsTo

Improve

Top Level Improvement

Priorities

Linkage on the Matrix

AnnualBreakthrough

Objective

Dots showlinkage from

Target back to Breakthroughfor that level


• As soon as a solid dot is placed above a resource, that resource will get a lower level matrix or an action plan.

• Clear circles indicate support resources. They do NOT get a lower level matrix or action plan unless they get a solid dot on another matrix.

• The dots are to be used as a sanity check

• The ImprovementPriority is deployedto the lower levelmatrix or an actionplan

Second Level Policy Deployment

Primary Responsibility Secondary Responsibility

RESOURCES

Annual Breakthrough

Objectives

Targets to Improve

Danaher Business System Office - Policy Deployment 1998


Resources


Priorities

3-4 yearBreakthrough

Objectives

Annual Breakthrough

Objectives

TOP LEVEL - CompanyTOP LEVEL - Company


Priorities

Targets to

Improve

SECOND LEVEL - PlantSECOND LEVEL - Plant

Second Level Improvement

Priorities

Points to Remember about the Matrix


Transferring Improvement Priorities to the 2nd Level


Primary Responsibility

Secondary Responsibility

RESOURCES


Priorities

Annual

Objectives

Target to Improve

SECONDSECOND LEVELLEVEL

TOP LEVEL Policy Deployment 2004



Resources

Annual Breakthrough

Objectives

Breakthrough 3-5 Year

Objectives

Target to Improve

TOP LEVELTOP LEVEL

Breakthrough

Second LevelImprovement

Priorities


Priorities

Typically, a 2nd Level Matrix is created for a primary resource for each top-level ImprovementPriority.

Imp. Priorities and Annual Objectives are copied directly onto the 2nd Level HP. Matrices.

The 2nd level 12 o’clock and 3 o’clock positions have all new text in them – nothing is rotated into them from

level 1.


Transferring Improvement Priorities To The 3rd Level

SECOND LEVELSECOND LEVEL

If necessary, a 3rd Level Matrix is created for a primary resource for each second-level ImprovementPriority.

Top Level and Second Level Imp. Priorities are copied directly onto the 3nd Level HP Matrices.

THIRD Level Policy Deployment



RESOURCES


Priorities

Target to Improve

THIRD LEVELTHIRD LEVEL

SECOND LEVEL Policy Deployment 2004



Resources

Target to Improve


Priorities


Priorities

Annual Breakthrough

Objectives


Priorities

Third LevelImprovement

Priorities

Not always suggestingyou need 3rd Level.

Based on size, complexity,breadth, and maturity of

organization.


AnnualBreakthrough

Objectives

Targets to

Improve

2nd LevelImprovement

Priorities

RESOURCES



5- WHO

4- HOW MUCH/WHEN

Use dots to show relationship of Targets and

Resources to the Improvement Priorities

1- HOW FAR

3- HOW

Use dots as a check to make sure the Improvement Priorities & Targets

meet the goal and support the Annual Breakthrough Objectives


Priorities

Use dots to show relationships between Improvement Prioritiesand Annual Objectives

2- HOW

Completing the Second Level PD Matrix

OWNER


Cascading Priorities to ACTION

= Original Plan x = Progress at Review

Action Step/ Kaizen Events Milestone J an Feb Mar Apr May J une J uly Aug Sept Oct Nov Dec

Improvement Priority Title: *Department/Location:

* Management Owner: * Date: *

Core Objective: *Timeline

Target Improvement

Planned Dates

Policy Deployment Action Plan

Review Team: * Next Review: *

Environm ental Situation Summary: *

Status (P ast Due in Red)

ImpactOwner (Lead is bold)

2003



RESOURCES

Target to Improve

SECOND LEVEL SECOND LEVEL – Plant/Business– Plant/Business

Danaher Business System Office - Policy Deployment 1998


Resources

AnnualBreakthrough Objectives


Objectives

Target to Improve

TOP LEVEL – TOP LEVEL – Company/GroupCompany/Group

POINT OF IMPACT - POINT OF IMPACT - ACTION PLANACTION PLANEngineer/SupvEngineer/Supv Cascade as many times as

necessary to the Root Cause Level

Point of Impact - Action Plan The level where root causes are addressed! Action Plans can be initiated out of any matrix level.

POINT OF IMPACT



RESOURCES

Target to Improve

ROOT CAUSE ROOT CAUSE LEVEL-LEVEL- Sub Plant/Dept Sub Plant/Dept

Annual

ObjectivesBreakthrough

TopLevelImprovementPriorities

SecondLevelImprovementPriorities



SecondLevelImprovementPriorities

ThirdLevelImprovementPriorities




Target Improvement

Planned Dates

Status (Past Due in Red)

Impact

Hoshin Planning Action Plan


Environmental Situation Summary: *

Improvement Priority Title: *Department/Location:

* Management Owner: * Date: *

2004


Owner (Lead is bold)

Step 4: Identify the impacts on the

improvement priority and top level breakthrough

objective

Step 1: Determine

actions & write on worksheets

Step 2: Record ownership and

timing of the actions

Step 3: What is the current status of the action. Color code

background as red to show items past due.

Create an Action PlanFor every ImprovementPriority at the Point ofImpact

Creating Action Plans


Breakthrough Objective:Attain competitive advantage in Delivery Performance

Action Step 1:VSM Customer Service Process

Action Step 2:SW Kaizen to improve productivity

by 35%

Action Step 3:VRK to reduce Quote processing time

by 50%

POINT OF IMPACT

POINT OF IMPACT

POINT OF IMPACT

Actions = Cause

Effect = Cause

Effect = Cause

Effect = Results!

Action Steps Complete the Cause & Effect Chain

Top Level Improvement Priority:Use HOS Tools to improve value stream of

Engineer-to-Order Process

Annual BT Objective #1:Streamline Engineer-to-Order Processes

Second Level Improvement Priority:Implement Improved Order Entry Process


Where VSM and Fits Into The Process

Breakthrough Objectives

Annual BT Objectives

Top Level Imp Priorities

2nd Level Imp Priorities

Value Stream Mapping

Action Plans




Target Improvement

Planned Dates

Status (Past Due in Red)

Impact

Hoshin Planning Action Plan


Environmental Situation Summary: *

Improvement Priority Title: * Department/Location: *

Management Owner: * Date: *

2004


Owner (Lead is bold)

DASHBOARD/SCORECARDDASHBOARD/SCORECARD

Action Plans Drive The Rate Of Improvement


Scorecards

Targets To Improve

are entered inpriority order

Planned targets are established for each month basedon the overall Target to Improve.

An actual that is a miss from the plan, is color coded red

JOP – Jumping Off Point fromwhich you started tracking the target

YTD ACT – Each month this field getsupdated (is YTD from the monthlyfields located to the right)


TOP LEVEL SCORECARD CHARTTOP LEVEL SCORECARD CHART

Each Target is Copied to the Top Level Scorecard

Reduce New Prod. Dev. Cycle

ANNUALBTOBJECTIVES

TARGET TO

IMPROVE

3-5 YEARBREAKTHROUGH

OBJECTIVE

TOP LEVELIMPROVEMENT

PRIORITIES

Incr

ease

Mar

ket S

hare

to 6

0%

Dev

. Cyc

le to

120

Day

s b

y 12

/95

RESOURCES

Pro

duct

ion

Dep

artm

ent

Mar

ketin

g D

epar

tmen

t

Eng

inee

ring

Dep

artm

ent

Fin

ance

Dep

artm

ent

Sal

es D

epar

tmen

t

Hum

an R

esou

rces

Dep

t.

Mat

eria

ls D

epar

tmen

t



TOP LEVEL MATRIXTOP LEVEL MATRIX




RESOURCES

Annual BreakthroughObjectives


Priorities

Targets to Improve

SECOND LEVELSECOND LEVEL

SCORECARDSCORECARDDanaher Business System Office - Policy Deployment 1998


Resources


Priorities

3-5 year Breakthrough

Objective

AnnualBreakthrough

Objectives

Target s to Improve

TOP LEVELTOP LEVEL

SCORECARDSCORECARD

Scorecards are Created for All HP Matrices

2nd LevelImprovement

Priorities

Title


The Review Process – Ensure Plan and Learn

• Execute to the plan and perform daily, weekly and monthly reviews of each action plan (Daily Mgt.)

• Reviews are designed to keep the Hoshin Plan on track- Improvement Action owners don’t come to be evaluated- The intent is to present the results of self assessment

• The review team provides focused assistance primarily around the owner’s analytical process and preparation.- What did you plan to do? (Plan)- What did you actually achieve? (Do)- How does actual vs. target compare (CHECK)- Standardize what’s working, implement countermeasures and/or plan again as

required. (ACT)

Execute To The Plan

Conduct Regular ReviewsP

C

A D


Manage Daily Management Through Leadership Standard Work

• Embed the Hoshin Plans into Leadership Standard Work

• Make the Hoshin review process part of the daily, weekly and monthly audit process

• The key is to constantly monitor progress and drive accountability to the lowest level

$136k monthly miss is due to Delayed Evaluation Kit Development, Insufficient Sales Prospects and Delayed Print Engine Delivery.

Problem Statement:

What

Short-Term: 10/28/03

Long-Term: 12/15/03

CountermeasuresHow Much (Impact)

$61

Who

Short-Term: MJFLong-Term: JBR

RZ/ MJF

Addressed Root Cause: Delayed Print Engine DeliveryExecute kanban re-sizing process for Printos at once per quarter frequency (currently twice-per-year…which is not frequent enough for ramping production).

DW/HW

Addressed Root Cause: Delayed Evaluation Kit DevelopmentShort-Term: Assign additional Engineer to complete evaluation kit development (delayed one month) in time for ITMA show.Long-Term: Update Tollgate process to include Engineering development for necessary targeted-vertical launch kits.

Addressed Root Cause: Insufficient Sales ProspectsExecute Sales Funnel Targets for UK 'T' Shirt outlet…twice per week follow-up on Sales Funnel Targets with Sales Engineer.

Third Level HP Countermeasure SheetImprovement Priority:Targets to Improve:

Process and organization to grow Printos sales in textiles and ceramicsIncrease Printos valve/module sales in textiles & ceramics from $100k to $2,500k in 2003

$48

When

$27

10/15/03

10/22/03

Run Chart

$0$50

$100$150$200$250$300$350$400$450$500

2003 Plan2003 Actual

2003 Plan $0 $20 $3 $65 $65 $123 $345 $397 $286 $333 $400 $4532003 Actual $0 $21 $22 $61 $136 $164 $330 $350 $150

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Pareto (the "Why" you missed)

0%

10%

20%

30%

40%

50%

Percent 45% 35% 20%

Delayed Evaluation Kit Development

Insufficient Sales

Prospects

Delayed Print Engine Delivery

Run Chart

$0$50

$100$150$200$250$300$350$400$450$500

2003 Plan2003 Actual

2003 Plan $0 $20 $3 $65 $65 $123 $345 $397 $286 $333 $400 $4532003 Actual $0 $21 $22 $61 $136 $164 $330 $350 $150

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Pareto (the "Why" you missed)

0%

10%

20%

30%

40%

50%

% 45% 35% 20%

Delayed Evaluation Kit Development

Insufficient Sales Prospects

Delayed Print Engine Delivery


5 Why Analysis

• Systematic method to drive to the true root cause(s) of a problem

• Simply ask “why” in a step ladder approach until fundamental root cause is discovered. Root cause is not simply listing the symptoms of a problem

• Normally, after up to 5 steps, the true root cause(s) will be exposed


Action Plans vs. Countermeasures?

Inventory Reduction Plan

0

10

20

30

40

50

60

J F M A M J J A S O N D

Plan Actual

Action Plans are proactive – they address how to achieve a particular goal from the jump off point (JOP) to the stretch target

Countermeasures are reactive – they address how to get back to plan when a goal is missed for a period

HP miss Jump Off Point (JOP) to stretch target


• Establish the Growth Agenda for Today’s HP Review• Financial Review• Hoshin Planning

- Road Blocks to Growth, Major

Predetermined Topics

- Established HP Growth Initiatives

- New Product Development

- Remaining HP Elements (Q, D,C)• KPI’s• People/Org. Issues• Other Business

5%

15%60%

20%

Monthly HP/ISC Review Agenda FormatM

onth

ly P

D is

typi

cally

an

8 ho

ur m

eetin

g

Follow a typical MOR session


Hoshin Planning Summary• Aligns Strategy and Execution

• Systematically develops and links plans from organizational vision to operational tactics

• Ensures deep and common understanding and maximizes ownership and buy-in to plan

• Requires thoughtful, detailed planning for each and every improvement action

• Consistently assesses actual performance vs. plan and addresses issues and learns from the process

All Employees are Engaged in the Process

Questions?

Date post:	31-Dec-2016
Category:	Documents
Upload:	trinhnhi
View:	236 times
Download:	3 times

Hoshin Planning

Documents