lean conference 2014 dan alexander - hoshin kanri

1KAIZEN and GEMBAKAIZEN

are the trademarks of KAIZEN Institute

Using Hoshin Kanri to develop an Continuous

Improvement Culture

Dan Alexander – Kaizen Institute



Managing DirectorKAIZEN Institute UK

Dan Alexander (Born 1964)

[email protected]

Kaizen Institute

• Founded by Masaaki Imai in 1985• Over 400 Consultants worldwide• Specialists in Kaizen & Lean

Implementation



KAI Change

ZEN Good

Kaizen = Continuous Improvement (CI)

…by Everybody! Everyday! Everywhere!

Teaching the True Meaning of “Kaizen”

“Change for the better”



What is Hoshin Kanri?

方針管理hoshin kanri

Direction management, control

“Policy Deployment”



Team with no “North Star”

== TASK

This seems important!

This seems interesting

There is always too much to do and by random

choices you get nowhere



Team With a “ North Star”

North Star

Things you must do!

Things you no longer want to

do

Things you can do



Policy Deployment 7 Step Process

7

Deploy Improvement Priorities

Develop Annual BreakthroughObjectives and Improvement

Priorities

Monthly Review

Implement ImprovementPriorities

Annual Review

PLANNING

IMPLEMENTATION

REVIEW

Establish Organisational Vision

Develop 3-5Year Breakthrough Objectives

Annual Review

Self-Diagnosis

Countermeasures

Catch ball

Lean Tools

Check



Breakthrough Objectives

“ I believe this nation should challenge itself to put a man on the moon, and return him to earth safely by the end of this decade”- John F. Kennedy 1961



How Many Breakthroughs?

9

Critical Few For Focus

That Translate Directly To Q,C,D,Growth

LESS IS

MORE

A big part of Policy Deployment is getting your organisation to FOCUS!



Top Level Improvement Priorities

3-5 Year Breakthrough Objectives

Annual Breakthrough Objectives

Answers the question“How do we achieve

our first yearBreakthrough Objective”

Top Level Improvement Priorities



Policy Deployment X Matrix

0 >=1

0 >=1

0 5% >5%

>= 80% <80%

>= 80% <80%

>= 80% <80%

>= 80% <80%

>= 80% <80%

>= 80% <80%

>= 80% <80%

>= 50% <50%

actual

actual

ytd +/-

Organic Days 0

ytd +/-

0

actual

plan

New Client Days

plan

Margin % 0%

plan

ytd +/-

actual

Margin $$ 0

plan

actual

ytd +/-

ytd +/-

actual

Nov Dec

Revenue 0

plan

Jul Aug Sep OctMar Apr May JunFinancial Results Targets or Limits Jan Feb

% Participation 0

plan

Milestone COT% 0%

plan

ytd +/-

ytd +/-

actualHorizon 3 Revenue 0

plan

actual

ytd +/-

plan

Missed Days vs. Contract 0

plan

ytd +/-

actual

actual

actualLost Clients 0

plan

ytd +/-

actual

Nov Dec

Member Turnover 0

Jul Aug Sep OctMar Apr May JunKPI Targets or Limits Jan FebAndon

PD Tracking (name)Level 1 PD 2009

(date)

3 Year Strategic Initiatives

1 Year Breakthrough

Objectives

1 Year Improvement

Priorities

Improvement Targets

Bowler Chart

Required Resources

X-Matrix



POLICY DEPLOYMENT X MATRIX



Deployment Through “Catch Ball”

CEO

Dept. Mgrs.

Team Leaders.

Senior Managers

Establish “what” top-down

Develop consensus about “how” through two-way communication (up-down)



Visual Management of Hoshin Kanri



The Review Cycle Calendar

• Initially, twice per month to speed up the learning cycle

• Monthly at mature state• Weekly or daily checks

at mid levels• Discuss misses only• Problem solving initiated

for gaps



My Journey

• 1983-85 Theoretical Knowledge of JIT and Toyota Production System

• 1986 – Final Year dissertation – Benefits of One piece flow assembly in car seat slide assembly

• Key Learning – The theory works



First Steps

• 1986-90 Electrolux refrigeration Grad trainee / shift supervisor

• Quality circles, • Quality Systems

• Key Learnings – Team working gets good results & PDCA



Lean Tools

• 1990-93 Kaizen Manager –Metallifacture, training by Nissan UK in OPF, 5S, TPM

• 1993-95 Production Manager Metallifacture

• Trained by Toyota in Pull systems and Leader standard work

• Deployed targets to Team Leaders

• Key Learnings Competency to run Kaizen events – Lean Tools make significant improvement, team working



• 1995-97 Manufacturing Manager Wagon Automotive

• Policy deployment to target improvement

• VSM to Improvement Priorities

• Key learnings Direction and training alone will not make Breakthrough change

Direction for Improvement



Kaizen Model For Continuous Improvement

DAILY KAIZEN®

N N N N

NTransform

PeopleIn...

...Natural Teams

PROJECT KAIZEN®

B C D E

PTransformProcessWith...

...ProjectTeams

SUPPORT KAIZEN®

Strategy &

Hoshin Kanri

Strategy &

Hoshin KanriCommunication

&

Auditing

Communication

&

Auditing

T T T K

1Provide

MotivationWith...

...Kaizen Steering

Committee

Training

&

Development

Training

&

Development

M M M M

K...Kaizen

PromotionOffice



One Page A3 Report

• Background– Good problem statement– Target vs. actual– Supporting data

• Root Cause Analysis– Ishikawa diagram– 5 Why– 4M (man, material, machine, method)

– Multiple causes

• The Plan: Countermeasures– What, who, when– Set-based– Experiments

• Follow up: Check– Process metric– Results metric

• Target Condition

• Adjust & Standardise– Learning from failure– Learning from success



A3 Reporting Deployment

A3 – Company / Project

A3 by Business:Business 1Business 2Business 3..

A3 by Plant A3 by AreaA3 by Line/MachineA3 by Workstation

• Summary of problem solving activity that fits on one page (typically A3 size paper)

• Visual• Follows PDCA thought

process• Does NOT have one set

template – be creative



Structuring for Sustainable Improvement

DAILY KAIZEN®

N N N N

NTransform

PeopleIn...

...Natural Teams

N: Natural Teams (Team Leader and Staff), All Organizational Levels

PROJECT KAIZEN®

B C D E

PTransformProcessWith...

...ProjectTeams

P: Project Team Leader, BCDE: Cross Function Project Members

SUPPORT KAIZEN®

Strategy &

Hoshin Kanri

Strategy &

Hoshin KanriCommunication

&

Auditing

Communication

&

Auditing

T T T K

1Provide

MotivationWith...

...Kaizen Steering

Committee1: CEO Sponsorship, T: Top Management Team Sponsorship, K: Kaizen Manager

Training

&

Development

Training

&

Development

M M M M

K...Kaizen

PromotionOffice

M: Motivators working for the Kaizen ManagerProject Management and Transformation Office

A3 Report



Thank You

Questions?

www.uk.kaizen.com

lean conference 2014 dan alexander - hoshin kanri

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