LEAN+: Mgmt by Policy

Business Meeting

LEAN+: Management by Policy (MBP, Hoshin-Kanri)

Hoshin means “pointing direction” or “long-term policy” or “vision” or “target and means”.  Kanri means “management” or “control” and is also sometimes translated as “planning”.  The name of this management technique might therefore be translated as “Management By Policy (MBP)” or “management by targets and means”.

Hoshin Quality Planning for quality revolutionized Japanese industry. The structural changes were associated with the introduction of “western equivalents” of Statistical Process Control (SPC), Quality Function Deployment (QFD) and Total Quality Management (TQM) in an attempt to improve organizational performance.  The PDCA (Plan – Do – Check – Act) cycle which is at the heart of these changes focuses on quality and planning first (not on profits first) explore and analyze the discrepancy between plans and their actual achievements.  The policy is the assembly of targets and of means to reach these targets, and must be understood by all employees of the company. This approach strengthens the belief that the results of planning which reflects corporate vision and unify employees will have always a positive impact on the bottom line. Examples of company-wide target improvements and the means to reach the targets by each department or major activity are discussed.

The long-term plan (5-year vision) is built cooperatively, based on an initial proposal endorsed by the top executive group which defined corporate goals with contribution from all intermediate levels. The shorter-duration action plans are derived from the long-term vision, based on the likelihood of success with a consideration given to the identified present and anticipated constrains.  The plan’s execution starts with its deployment to the departments and detailed implementation by the departments.  The detailed steps to accomplish each task are identified and arranged.  Countermeasures are proposed and listed for each potential problem with plan implementation.  Auditing of the results involves a monthly diagnosis of the processes and focuses on the root causes of problems, not symptoms.  The monitoring is focused on defined numerical targets, and includes verification of the capability of middle management.

Examples of numerous management tools which may be used for Quality Planning are discussed, including an iterative planning, execution and audit (shortened PDCA) cycle, an example of policy deployment using Pareto Diagram, Cause-and-Effect “fishbone” diagrams, and more.

During typical training focused on the development and implementation of successful Management by Policy programs we will present and discuss the “how to”:

–       Establish proper Vision, Quality Policy, related goals/objectives, targets and priorities
–       Plan long-term (i.e. 5-10 years) and medium-term (i.e. 12 months) management strategies.
–       Deploy the policy and respective targets throughout the company.
–       Collect and analyse related performance data.
–       Identify reasons for the deviation from targets.
–       Define the control items and their method of control.
–       Evaluate performance and compare established targets with actual results.
–       Focus the top management on cross-functional coordination.
–       Perform periodic evaluations and report on progress.

Quexx International Ltd. consultants are dedicated to providing you with exceptional quality services. Extensive experience and expertise of our consultants offers training and consulting services which are tailored to suit your needs and your unique work environment. QUEXX consultants were trained by Toyota Motor Corporation, a World leader in Continuous Improvement and have hands-on experience in implementing LEAN techniques of Toyota Production System, such as Kaizan and Hoshin Kanri.

For more details please refer to our Training Guidelines.

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