Hoshin Kanri
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== Abstract == | == Abstract == | ||
| − | The point of convergence for this article is to present and explain the "Hoshin Kanri" (or Policy Deployment) method, presented by Dr. Yoji Akao, a leading Japanese author, in ''Hoshin Kanri: Policy deployment for successful TQM'' (1991). Hoshin Kanri is defined as a "form of corporate-wide management that combines strategic management and operational management by linking the achievement of top management goals with daily management at an operation level" | + | The point of convergence for this article is to present and explain the "Hoshin Kanri" (or Policy Deployment) method, presented by Dr. Yoji Akao, a leading Japanese author, in ''Hoshin Kanri: Policy deployment for successful TQM'' (1991). Hoshin Kanri is defined as a "form of corporate-wide management that combines strategic management and operational management by linking the achievement of top management goals with daily management at an operation level <ref name="a"> ''Policy management of strategy (hoshin kanri) ,Barry J. Witcher, School of Management, University of East Anglia, UK''</ref>. This method is an essential support for TQM <ref name="b"> ''USING QFD TO DRIVE TQM IMPLEMENTATION,Dr. Robert A Hunt,Director Centre for Management Innovation and Technology Graduate School of Management, Macquarie University,Sydney, Australia 2109.''</ref> and is based on the PDCA cycle. Hence, at the strategic level, the method can be applied by scanning the context of the company in order to further understand how to position in the market. To do that, the external and the internal environments need to be studied utilizing the Porter's 5 forces analysis and the Porter's generic strategies (for the external environment). On the other hand, for the internal environment, which is about understanding the available resources of the company in order to develop a competitive strategy, a Business Model Canvas, SWOT analysis or a Balanced Scorecard is more applicable. Subsequently, during the planning step, the long and mid-short term goals are decided and through the X-Matrix, which is the way of implementing the Hoshin Kanri, the operational and organizational goals are aligned. After the implementation, the progress has to be continuously monitored, keeping track of all the activities and improving them. Furthermore, the article will give attention to the Catchball process, which is a necessary communication process aiming to obtain successful implementation of the Hoshin Kanri throughout all of the company levels. |
== Different names of Hoshin Kanri == | == Different names of Hoshin Kanri == | ||
| − | Yoji Akao, was the first Japanese author in 1991 writing an authoritative text about the implementation of the Hoshin Kanri | + | Yoji Akao, was the first Japanese author in 1991 writing an authoritative text about the implementation of the Hoshin Kanri <ref name="c"> ''Hoshin Kanri for the Lean Enterprise: Developing Competitive Capabilities and Managing Profit,Thomas L. Jackson.''</ref>. The approach was first utilized in Japan in the 1950 and 1960s, after the Second World War, because the local companies were facing difficulties to regain competitiveness. Many years later, in the 1980s, it was introduced to the Western audience, then named "Policy Deployment" by western writers <ref name="d"> ''Policy deployment: an examination of the theory, R.G. Lee and B.G. Dale Manchester School of Management, UMIST, UK.''</ref>. Interestingly, the method is still referred to by various names, also within companies (for instance at AT&T and Texas Instruments, it is called "Policy Deployment"; at Hewlett-Packard and Proctor & Gamble, it is labeled "Hoshin planning"; in the Xerox Corporation it is called "Managing for Results" and at Unilever it is called "Management into Action" <ref name="a"> ''Policy management of strategy (hoshin kanri) ,Barry J. Witcher, School of Management, University of East Anglia, UK.''</ref>).Also many writers refer to it differently, this leaves space for the term to be interpreted and used improperly <ref name="d"> ''Policy deployment: an examination of the theory, R.G. Lee and B.G. Dale Manchester School of Management, UMIST, UK.''</ref>. |
== HOSHIN KANRI == | == HOSHIN KANRI == | ||
| − | Hoshin Kanri, or Policy Deployment, is a strategic planning tool used to manage complex portfolio management processes in lean enterprises. It combines the strategic management with the daily management, tying up the long-term activities with the daily ones. | + | Hoshin Kanri, or Policy Deployment, is a strategic planning tool used to manage complex portfolio management processes in lean enterprises. It combines the strategic management with the daily management, tying up the long-term activities with the daily ones <ref name="e"> ''HOSHIN KANRI: POLICY MANAGEMENT IN JAPANESE-OWNED UK SUBSIDIARIES, Barry J. Witcher and Rosemary Butterworth, Journal of Management Studies 38:5 July 2001, University of East Anglia.''</ref>. |
| − | The words HOSHIN KANRI can be divided into four sub words | + | The words HOSHIN KANRI can be divided into four sub words <ref name="f"> ''Hoshin Kanri, The Strategic Approach to Continuous Improvement,David Hutchins.''</ref>.: |
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Hence, the Japanese term Kanri means ''management'' and hoshin is translated as ''direction, shining needle'' or considered together as ''compass''. From this translation, Hoshin Kanri is seen as a compass that assists employees to be focused towards the Vision and Aims of an organization in order to continuously improve its processes [8]. Promoting the involvement and alignment of all the employees, this method intents to build a strong connection between the daily activities performed at the operational levels with the business goals set at the strategic level, in order to achieve higher performance in all of the organization's business objectives [9]. Furthermore, the process of Hoshin Kanri is endless, being applied as a strategic improvement cycle repeated each year. | Hence, the Japanese term Kanri means ''management'' and hoshin is translated as ''direction, shining needle'' or considered together as ''compass''. From this translation, Hoshin Kanri is seen as a compass that assists employees to be focused towards the Vision and Aims of an organization in order to continuously improve its processes [8]. Promoting the involvement and alignment of all the employees, this method intents to build a strong connection between the daily activities performed at the operational levels with the business goals set at the strategic level, in order to achieve higher performance in all of the organization's business objectives [9]. Furthermore, the process of Hoshin Kanri is endless, being applied as a strategic improvement cycle repeated each year. | ||
| − | Hoshin Kanri is based on the PDCA cycle and can be broken down into 7 steps: | + | Hoshin Kanri is based on the PDCA cycle and can be broken down into 7 steps <ref name=": |
<ol> | <ol> | ||
Revision as of 14:21, 23 February 2018
Abstract
The point of convergence for this article is to present and explain the "Hoshin Kanri" (or Policy Deployment) method, presented by Dr. Yoji Akao, a leading Japanese author, in Hoshin Kanri: Policy deployment for successful TQM (1991). Hoshin Kanri is defined as a "form of corporate-wide management that combines strategic management and operational management by linking the achievement of top management goals with daily management at an operation level [1]. This method is an essential support for TQM [2] and is based on the PDCA cycle. Hence, at the strategic level, the method can be applied by scanning the context of the company in order to further understand how to position in the market. To do that, the external and the internal environments need to be studied utilizing the Porter's 5 forces analysis and the Porter's generic strategies (for the external environment). On the other hand, for the internal environment, which is about understanding the available resources of the company in order to develop a competitive strategy, a Business Model Canvas, SWOT analysis or a Balanced Scorecard is more applicable. Subsequently, during the planning step, the long and mid-short term goals are decided and through the X-Matrix, which is the way of implementing the Hoshin Kanri, the operational and organizational goals are aligned. After the implementation, the progress has to be continuously monitored, keeping track of all the activities and improving them. Furthermore, the article will give attention to the Catchball process, which is a necessary communication process aiming to obtain successful implementation of the Hoshin Kanri throughout all of the company levels.
Different names of Hoshin Kanri
Yoji Akao, was the first Japanese author in 1991 writing an authoritative text about the implementation of the Hoshin Kanri [3]. The approach was first utilized in Japan in the 1950 and 1960s, after the Second World War, because the local companies were facing difficulties to regain competitiveness. Many years later, in the 1980s, it was introduced to the Western audience, then named "Policy Deployment" by western writers [4]. Interestingly, the method is still referred to by various names, also within companies (for instance at AT&T and Texas Instruments, it is called "Policy Deployment"; at Hewlett-Packard and Proctor & Gamble, it is labeled "Hoshin planning"; in the Xerox Corporation it is called "Managing for Results" and at Unilever it is called "Management into Action" [1]).Also many writers refer to it differently, this leaves space for the term to be interpreted and used improperly [4].
HOSHIN KANRI
Hoshin Kanri, or Policy Deployment, is a strategic planning tool used to manage complex portfolio management processes in lean enterprises. It combines the strategic management with the daily management, tying up the long-term activities with the daily ones [5]. The words HOSHIN KANRI can be divided into four sub words [6].:
- Ho - means Direction
- Shin - refers to Focus
- Kan - refers to Alignment
- Ri - means Reason
Hence, the Japanese term Kanri means management and hoshin is translated as direction, shining needle or considered together as compass. From this translation, Hoshin Kanri is seen as a compass that assists employees to be focused towards the Vision and Aims of an organization in order to continuously improve its processes [8]. Promoting the involvement and alignment of all the employees, this method intents to build a strong connection between the daily activities performed at the operational levels with the business goals set at the strategic level, in order to achieve higher performance in all of the organization's business objectives [9]. Furthermore, the process of Hoshin Kanri is endless, being applied as a strategic improvement cycle repeated each year.
Hoshin Kanri is based on the PDCA cycle and can be broken down into 7 steps [7]
Cite error:
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