Hoshin kanri
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Hoshin Kanri. Figure 1: The Core Hoshin Planning Process (Source: GOAL/QPC 1989, p. 13). (1) Establish organization vision. PHASE 1: (1)(2) – Well done strategic planning. (2) Develop 3-5 year plan. PHASE 2: (3)to(7) – Heart of hoshin planning process. (3) Develop annual objectives.

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Hoshin Kanri

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Hoshin kanri

Hoshin Kanri


Hoshin kanri

Figure 1: The Core Hoshin Planning Process

(Source: GOAL/QPC 1989, p. 13)

(1) Establish organization vision

PHASE 1: (1)(2) – Well done strategic planning

(2) Develop 3-5 year plan

PHASE 2: (3)to(7) – Heart of hoshin planning process

(3) Develop annual objectives

(4) Deployment/roll down to depts., to develop plans including targets and means

(5) Implementation

Act

Plan

Check

Do

(6) Regular progress review – monthly + quarterly

(7) Annual review


What is different

What is different?

  • Everybody company-wide/build strategy into daily management

  • Distinction between breakthrough/continuous improvement

  • Greater involvement of leadership (hierarchy of PDCAs)

  • Bottom-up catchball planning (preparing the ground/consensual – for faster implementation)

  • The management philosophies & business methodologies of total quality management & lean working

    • Management by PDCA

    • The Pareto principle

    • Business process management/quality tools

  • Management of Objectives, rather Management by Objectives (emphasis on process and review)

  • Objectives and means always considered together

  • Common language of cross-functional objectives (e.g. Quality, Cost, Delivery, & People) used by everyone


Hoshin kanri

FIGURE 2.1 Three dimensions of organizational purpose


Hoshin kanri

The annual FAIR cycle: it is managed by using PDCA


Nissan s top executive audit dynamic capability

Nissan’s Top Executive Audit (Dynamic Capability)

Core Areas/Processes

Core Competences

Daily control

The determination of hoshins

The coordination of hoshin development & deployment

The establishment of control items

Analytical & problem-solving abilities

Check & action taken

Leadership & participation by high-ranking personnel

  • Cross-functional activities

  • Daily management

  • Production maintenance

  • Standardization establishment

  • Productivity improvement activity

  • Inspection

  • Production control & labour management

  • Personnel & labour management

  • Cost management

  • Quality control

  • Engineering capability

  • Parts localization

  • Purchasing


Styles of capitalism

Styles of Capitalism

Liberal market economy

Coordinated market economy

Collaborative institutional relations

Strategic resources are industry, firm specific (resource based view of strategy)

Strategic management primarily inside-out & synergy based, common corporate ways of working

Longer-term

  • Resources coordinated through markets

  • Strategic resources are adaptable & general (market based view of strategy)

  • Strategic management primarily outside-in & portfolio based, importance of SBU

  • Shorter-term

Is the very large MNC a special case, and what have been the effects of global strategy?


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