What is Hoshin Kanri

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Hoshin Kanri or Hoshin Plan is also called Policy Deployment and is one of the Lean Tools. It has its origins in Japan, and has successfully been used by Toyota and other Japanese companies since the 1960s. The Japanese words mean setting objectives and management, so it translates into Management Objective.
It aims to get all employees to pull in the same direction and at the same time. This is done by aligning all the plans of middle management and work done by employees with the overall strategy of the company.

Implement Hoshin Kanri

When implementing Hoshin Kanri within a business, following steps can be used.

  1. Create overall strategy of company
  2. Develop Objectives
  3. Implement Objectives
  4. Review and Adjust

Create Strategy

Some of the important factors to consider when creating a strategy are the following

  • Goals: Keep it simple and don’t focus on more than maximum 5 goals, select the most important or critical ones.
  • Top down Strategy: The responsibility of the strategy sits with top management, but they can consult with middle management to create more informed strategies.
  • KPI: The key performance indicators should be well thought through, they should give a clear indication on the progress towards the goals.

Develop Objectives

The objectives should be developed with the strategy on mind, for example if one of the goals stretches over a 5 year period, then annual objectives should be set to achieve the goal in incremental steps over the 5 years.

Implement Objectives

Next step is to break those objectives into top level improvement priorities within different departments and following into second and third tier tasks.

Review and Adjust

It is important to review and adjust as needed on a regular basis to ensure everyone is going in the same direction and at the pace required to reach the goal. The KPI’s is an important factor to indicate if everything is on track.

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Hoshin Kanri