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Hoshin Kanri

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The key takeaways are that Hoshin Kanri is a strategic quality management method used to deploy organizational strategy through consensus building, goal cascading, and self-assessment. It involves setting a long-term vision and vital goals which are deployed through annual plans and individual tasks.

Hoshin Kanri is a method of strategic quality management developed in Japan involving consensus building, goal deployment, and self-assessment. It uses an iterative 'catch ball' process to discuss plans and targets at all levels. Performance is measured through self-assessment against identified targets and plans.

The six main steps in the Hoshin Kanri process are to formulate a 5-year vision and vital goals, define an annual plan to realize the vision, agree on optimum targets and means for their achievement, identify tasks to achieve the means, conduct monthly self-reviews, and hold annual reviews to confirm the vision and plan.

Hoshin Kanri

Introduction
Hoshin Kanri is a method of strategic quality management. Developed in Japan in the 1960s it brings together the
concepts of total quality management and business strategy. Consensus and self assessment is used to review
progress against identified areas for change and improvement. Hoshin Kanri is not a strategic planning tool but a
mechanism for execution and a system for deploying an existing strategic plan across the whole of the organisation
(Tennant and Roberts, 2003; Tanner, 2005).
A fundamental aspect of Hoshin Kanri is a consensus building process termed catch ball. This is an iterative process
of discussing and debating plans and targets at each level. This process requires continuous communication at all
levels in the organisation to ensure the development of appropriate targets and means of achievement as well as their
deployment (Tanner, 2005). Performance measurement is based on self assessment, against identified targets and
plans.

Agree
Long-term
Vision

Strategic Plan set


by Top
Management

Individuals
Personal

Deployment in
Annual

Plans

Plans

Weekly

Select Vital
few Strategic
Goals (5
years)

Develop Five
Year Plan

Monthly
Annually
TIME FRAME FOR SELF-ASSESSMENT

Catch Ball process (Tanner, 2005)

A key element is the deployment of goals from the vision and strategic objectives through the daily work
processes people engage with. This ensures that all activities ultimately contribute to the achievement of the vital
few goals and the transformation of the vision into reality. The catch ball process also ensures that the vision, vital
few goals and relating processes are understood throughout all levels of the organisation. This helps to overcome
any resistance due to uncertainty or lack of clarity and helps to allocate ownership of actions as people can
understand how their process, their activities link and therefore contribute to achieving strategic vision and the
desired business performance (Tennant and Roberts, 2003; Tanner, 2005).

Manufacturing
Manager

Manufacturing
Team Leader
Manufacturing
Associates

MEANS
Reduce the total costs
of the business.

GOAL
Increase ROI
GOAL
GOAL
Increase ROI
Reduce the total
by 25 %
costs
GOAL
Reduce
rework

MEANS
Reduce rework

MEANS
Associates are trained

Goal and Means deployment (Tennant and Roberts, 2003)

Further Information
Tennant, C. and Roberts, P., (2003), Managing Knowledge through Hoshin Kanri, Industry and Higher
Education, pp. 59-66
Tanner, S., (2005), Performance Improvement in an SME through implementation of Strategic Quality
Management, MSc Thesis, Warwick Manufacturing Group, University of Warwick.

TRANSFORMING CAPABILITY SUPPORT MATERIALS


LEADING VISION CREATION

Hoshin Kanri

Instructions
Key steps
The six step process below is based on an adaptation of Hoshin Kanri.

1
2
3
4
5
6

Stage
Five year vision
Annual plan
Deployment
Implementation
Monthly review
Annual review

Interpretation
Formulate the vision and vital few goals
Define what is necessary and sufficient to realise vision
Agree optimum targets and means for achievement
Identify the necessary tasks to achieve the means
Teams measure results by self-assessment
Confirm five year vision, vital few goals and annual plan

Hoshin Planning System (Tennant and Roberts, 2003)

The template below may be used to document Stages 1-4 and to enable communication of the vision (and the plan
which will enable it to be achieved) to the rest of the organisation.
Completion of stages 5 & 6 will enable progress towards the vision to be assessed on a regular basis, and plans to
be modified as appropriate.

TRANSFORMING CAPABILITY SUPPORT MATERIALS


LEADING VISION CREATION

Hoshin Kanri

Five Year Vision


What is the 5-Year
Vision?
What are the key
goals?

Annual Plan
What actions are
necessary over the
next 5 years to
realise the vision?

Deployment
What are the
optimum targets?
By what means will
the targets be
achieved?

Implementation
What tasks are
necessary to
achieve the
means?

TRANSFORMING CAPABILITY SUPPORT MATERIALS


LEADING VISION CREATION

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