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Policy Deployment

Hoshin Kanri
Hoshin Kanri
Policy Deployment Hoshin Kanri Policy Deployment …Turning Theory Into Action Strategy Deployment EN_071124.ppt
Policy Deployment Hoshin Kanri Policy Deployment …Turning Theory Into Action Strategy Deployment EN_071124.ppt
Policy Deployment Hoshin Kanri Policy Deployment …Turning Theory Into Action Strategy Deployment EN_071124.ppt
Policy Deployment Hoshin Kanri Policy Deployment …Turning Theory Into Action Strategy Deployment EN_071124.ppt
Policy Deployment Hoshin Kanri Policy Deployment …Turning Theory Into Action Strategy Deployment EN_071124.ppt

Policy Deployment

…Turning Theory Into Action

What is Policy Deployment?

Policy Deployment or Hoshin Kanri
Policy Deployment or Hoshin Kanri
What is Policy Deployment? Policy Deployment or Hoshin Kanri Hoshin Kanri was developed in the 1950s
What is Policy Deployment? Policy Deployment or Hoshin Kanri Hoshin Kanri was developed in the 1950s

Hoshin Kanri was developed in the 1950s in Japan in order to drive down strategic key entity goals systematically and sustainable into operations

Ho = direction Shin = needle Kanri = Management and control Hoshin Kanri = management and control of the organization's direction needle (compass) or focus.

the organization's direction needle (compass) or focus. Hoshin Kanri provides us with standardized tools for
the organization's direction needle (compass) or focus. Hoshin Kanri provides us with standardized tools for
the organization's direction needle (compass) or focus. Hoshin Kanri provides us with standardized tools for

Hoshin Kanri provides us with standardized tools for step-by- step entity wide strategic planning, an inherited continuous improvement process and the control of success.

Hoshin Kanri

a companywide planning and controlling system

Policy Deployment or Hoshin Kanri
Policy Deployment or Hoshin Kanri
and controlling system Policy Deployment or Hoshin Kanri All employees and managers are involved Starting with
and controlling system Policy Deployment or Hoshin Kanri All employees and managers are involved Starting with

All employees and managers are involvedand controlling system Policy Deployment or Hoshin Kanri Starting with the corporate vision key long term

Starting with the corporate vision key long term objectives are deduced (Breakthrough‘s)or Hoshin Kanri All employees and managers are involved These Breakthrough objectives are cascaded systematically

These Breakthrough objectives are cascaded systematically and stringent to different levelskey long term objectives are deduced (Breakthrough‘s) At the end every employee or manager has his

At the end every employee or manager has his own strategies and objectives deduced from the top level.cascaded systematically and stringent to different levels All employees are aligned to the corporate vision and

All employees are aligned to the corporate vision and the same objectives.own strategies and objectives deduced from the top level. Strategy Deployment EN_071124.ppt H e i n

Why use Hoshin Kanri?

Policy Deployment or Hoshin Kanri
Policy Deployment or Hoshin Kanri
Why use Hoshin Kanri? Policy Deployment or Hoshin Kanri The goal is to build a sustainable
Why use Hoshin Kanri? Policy Deployment or Hoshin Kanri The goal is to build a sustainable

The goal is to build a sustainable competitive advantage

Policy Deployment Kaizen+KVP Policy Deployment Kaizen+KVP Policy Basis Deployment Kaizen+KVP Basis Basis Basis
Policy
Deployment
Kaizen+KVP
Policy
Deployment
Kaizen+KVP
Policy
Basis
Deployment
Kaizen+KVP
Basis
Basis
Basis
Basis
Breakthrough
Objectives
Reached. Once
Breakthrough
is achieved the
process is
standardized
and becomes
daily
management
Year 0
Year 1
Year 2
Year 3
Year 4

The Hoshin Kanri Process

From Mission to Action
From Mission to Action
The Hoshin Kanri Process From Mission to Action Strategy Deployment EN_071124.ppt Heinrich Moormann Page 5
The Hoshin Kanri Process From Mission to Action Strategy Deployment EN_071124.ppt Heinrich Moormann Page 5
The Hoshin Kanri Process From Mission to Action Strategy Deployment EN_071124.ppt Heinrich Moormann Page 5

Strategy Deployment EN_071124.ppt

Heinrich Moormann

Page 5

The Hoshin Kanri “core”

The “X” Matrix
The “X” Matrix
The Hoshin Kanri “core” The “X” Matrix The X-Matrix is the „helmstand“ for the Hoshin Kanri
The Hoshin Kanri “core” The “X” Matrix The X-Matrix is the „helmstand“ for the Hoshin Kanri
The Hoshin Kanri “core” The “X” Matrix The X-Matrix is the „helmstand“ for the Hoshin Kanri

The X-Matrix is the „helmstand“ for the Hoshin Kanri System:

• In 6 h position Financial Breakthrough objectives are defined for the next 3 years

• In 9 h position the annual objectives are developed and established

• In 12 h position top level strategic priorities and action are created and set

• In order to measure and control the actions Targets to Improve (TTI´s) are created in 3 h position. Furthermore responsible employees for the actions are assigned

Cascading the objectives

The reconciliation process
The reconciliation process
Cascading the objectives The reconciliation process The objectives are cascaded from top to bottom and back

The objectives are cascaded from top to bottom and back during the recon- ciliation process. At the end there are action plans for every level.

process. At the end there are action plans for every level. Strategy Deployment EN_071124.ppt H e
process. At the end there are action plans for every level. Strategy Deployment EN_071124.ppt H e
process. At the end there are action plans for every level. Strategy Deployment EN_071124.ppt H e

The Point Of Impact

Action Plans

From strategic priorities to action
From strategic priorities to action
Of Impact Action Plans From strategic priorities to action Strategic Priority from the X-Matrix Primary Resource
Of Impact Action Plans From strategic priorities to action Strategic Priority from the X-Matrix Primary Resource
Strategic Priority from the X-Matrix Primary Resource from the X-Matrix Critical Dependencies TTI from the
Strategic Priority from the X-Matrix
Primary Resource
from the X-Matrix
Critical Dependencies
TTI from the X-Matrix
Detailed
Detailed Action
Plan Steps
Timing
Columns to
quantify and
track impact
An Action Plan must be created for every strategic priority at the point of impact

The monthly review process

Check action plans and measure TTI´s
Check action plans and measure TTI´s
monthly review process Check action plans and measure TTI´s The results are controlled from the management
monthly review process Check action plans and measure TTI´s The results are controlled from the management

The results are controlled from the management on a monthly basemonthly review process Check action plans and measure TTI´s The review process is also cascaded and

The review process is also cascaded and drives down to allresults are controlled from the management on a monthly base necessar y levels If objectives are

necessar

y levels

If objectives are not reached the responsible person has to analyze the root causes and define countermeasures in order to get back „on track“is also cascaded and drives down to all necessar y levels Strategy Deployment EN_071124.ppt H e

Monthly Review Process

3 in 1 charts

Metrics Tracking, Pareto and Countermeasures
Metrics Tracking, Pareto and Countermeasures
3 in 1 charts Metrics Tracking, Pareto and Countermeasures A “cause” is something you want to
3 in 1 charts Metrics Tracking, Pareto and Countermeasures A “cause” is something you want to
A “cause” is something you want to remove – A “Why” The measurements which describes
A “cause” is something you want
to remove – A “Why”
The measurements
which describes your
process
The action
must relate
directly to the
causes in the
Pareto
The status is a
choice of “On
Track”,
“Caution”, or
“Problem”
By name,
who’s the
owner of
this action?

Strategy Deployment EN_071124.ppt

Heinrich Moormann

Page 10