IENG 451

1. IENG 451 Planning Functions

2. Responsiveness Customer Satisfaction Cost + Quality +Dependability + Flexibility + Time + Service 6 Dimensions of Competition Continuous + R&D + Advanced Tech. + Integration Improvements People & Systems Structural Prerequisites Customer Driven Strategy

3. Planning Functions • Operational • How do we manage day to day • Financial • How do we allocate resources • Project • How do we achieve a specific goal • Strategic • What do we want to be when we grow up

4. Problems • Unrealistic goals • Goals are arbitrary • Inadequate focus • Planned activities are not regularly reviewed • Data is over analyzed • Lack of communication; vertical and/or horizontal

5. Mission & Strategy • Def: The corporate mission outlines a firm’s values, intended markets and product, broad goals and objectives, core competencies, and strategic capabilities. • Def: The corporate strategy states how a firm will achieve its goals and objectives

6. What is Strategy? • Distinguishing strategy from tactics: • Strategy is the overall plan for deploying resources to establish a favorable position. • Tactic is a scheme for a specific maneuver. • Characteristics of strategic decisions: • Important. • Involve a significant commitment of resources. • Not easily reversible.

7. Leaders Doing Right Things Ineffective Effective Death (fast) Success Efficient Managers Doing Things Right Death (slow) Survival Inefficient Effectiveness and Efficiency

8. Vision Skills Incentives Resources Action Plan Change Skills Incentives Resources Action Plan Confusion Vision Incentives Resources Action Plan Anxiety Vision Skills Resources Action Plan Gradual Change Vision Skills Incentives Action Plan Frustration False Starts Vision Skills Incentives Resources Managing Complex Change

9. Assess Environmental Factors Competitive Analysis * Strengths * Weakness * Opportun * Threats Specific Strategies * Corporate * Business * Functional Carry Out Strategic Plans Mission & Strategic Goals Maintain Strategic Control Assess Organizational Factors Strategic Process Strategy Formulation Strategy Implementation

10. One of the Tools Competitive Analysis • SWOT • Strengths • Weaknesses • Opportunities • Threats

11. Inspect Customer Macroprocesses • Juran • anatomy of macroprocess does not match that of the functional organization • Functional goals often at a heavy price of macroprocess • There should be a clear responsibility for macroprocess

12. Forced Choice Model Organization Position • Mission • Objectives • Strengths, Weaknesses • Forecast Operational needs • Major Future Programs Environmental Assessment • Economic Environment • Key regulatory issues • Major technology forces • Opportunities, threats • Competitor strategies Strategic Options Action Plans Contingency Plans

13. Hoshin Kanri or Policy Deployment • The Company develops a 3 - 5 year plan • The Senior Executives develop the current years objectives. • Catchball occurs • The process is interactive • Teams report up • Management delivers feedback

14. Hoshin Planning

15. Elements of HoshinPlanning • Plan-do-check-act • Nemawashi • Catchball • Control department • A3 thinking

16. Elements of HoshinPlanning • Plan-do-check-act • Macro, 3-5 yrs, senior management • Annual, operating managers • Nemawashi • Catchball • Control department • A3 thinking

17. Elements of HoshinPlanning • Plan-do-check-act • Nemawashi • Process of consensus building that creates alignment • Stakeholders; management, workers, customers • Catchball • Control department • A3 thinking

18. Elements of HoshinPlanning • Plan-do-check-act • Nemawashi • Catchball • Company develop a vision and toss to senior mgmt • Sr. mgmt translate vision to hoshins and toss back • Give and take until consensus is reached • Control department • A3 thinking

19. Elements of HoshinPlanning • Plan-do-check-act • Nemawashi • Catchball • Control department • Breakdown functional silos • Control dept., quality, would coordinate cross-functional activities • A3 thinking

20. Elements of HoshinPlanning • Plan-do-check-act • Nemawashi • Catchball • Control department • A3 thinking • One page story communication tool • Hoshin planning A3 • Problem Solving A3 • Proposal A3 • Current Status A3

21. 4 phases of Hoshin Planning • Hoshin generation • Hoshin deployment • Hoshin implementation • Final evaluation

22. 4 phases of Hoshin Planning • Hoshin generation • Eg; we will reduce defect rates by 20% • Hoshin deployment • Hoshin implementation • Final evaluation

23. 4 phases of Hoshin Planning • Hoshin generation • Eg; we will reduce defect rates by 20% • Hoshin deployment • Here’s how we can achieve this goal • Hoshin implementation • Final evaluation

24. 4 phases of Hoshin Planning • Hoshin generation • Eg; we will reduce defect rates by 20% • Hoshin deployment • Here’s how we can achieve this goal • Hoshin implementation • Activities required to implement hoshin; e.g.; defect data collection, analysis • Final evaluation

25. 4 phases of Hoshin Planning • Hoshin generation • Eg; we will reduce defect rates by 20% • Hoshin deployment • Here’s how we can achieve this goal • Hoshin implementation • Activities required to implement hoshin; e.g.; defect data collection, analysis • Final evaluation • Year end assessment of each hoshin