Hoshin Kanri is a Strategic Improvement System and a Core Component of TQM (Total Quality Management)
It originated during the 1960s and evolved from Statistical Quality Control techniques. Hoshin simply means Policy, Principle, Direction and Kanri means Supervision, Administration, Management
In Japanese term, Hoshin means shining needle pointing direction, as in compass and Kanri means Control or management
Thus, the name Hoshin Kanri means strategic improvement in the management system of the company by the ensuring that the strategic goals of a company drive progress and action at every level within that company.
Let’s look for some benefits of Hoshin Kanri-
- It helps in organizational transformation.
- It helps to transform an organization also as a learning institution.
- It set direction to make customers happy / beat competition
- It involves & aligns everyone in the organization
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Hoshin Kanri Steps
Establish Organizational Vision
First of all, you should check your current values, mission and vision to see whether they are all lined with the goals of the company. You should review the existing procedures to see if they are meeting the future objectives.
2. Develop Breakthrough Objectives
Breakthrough objectives are those that require the organization to stretch in new and challenging ways. For example for a small company, Breakthrough objectives may be entering new markets, introducing new products, making a product go viral, investing in a marketing campaign or adopting a different service delivery model.
3. Develop Annual Objectives
You should always set this year’s annual objectives making sure that a long term goal (say 5 or 10-year goal) is helped by it. You should always set a SMART goal (Specific, Measurable, Attainable, Relevant and Time-specific).
If your long term goal is making a new product go viral, your annual objective could be –
- Market research for the product
- Seeing the Strength, Weakness, Opportunities, and Threat or in other words performing a SWOT analysis.
- Investing in R & D for the product or service now
4. Deploy Annual Objectives
Once you develop the annual goal, you should start assigning roles and responsibilities and communicate the organizational goal to all the professionals so that the individual objectives align with the overall mission of the company.
5. Implement Annual Objectives
This is the stage of ACTION and the most important stage. You work towards your goal using various other lean techniques like Kaizen, PDCA, A3 and six sigma.
6. Monthly Review
Only setting heavy goals and jumping into implementation only will not help. Monthly review of the progress should be done in order to see if the actions are aligned to the objectives or annual goals of the company.
7. Annual Review
Review of the actions and targets achieved should also be done on a yearly basis so that adjustments could be made and assessment of the organizational progress could be done. It also helps in planning for resources and finance for the next year.