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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)
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
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