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


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?

  • 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


FIGURE 2.1 Three dimensions of organizational purpose


The annual FAIR cycle: it is managed by using PDCA


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

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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