Last update: September 8th, 2001
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Last update: September 8th, 2001
Übersetzen
Japanese etymology about Hoshin suggests the shining of the compass's metal needle, the one leading all the individual units of the fleet toward the goal.
Imagine an armada, in a starless night, leading conquistadors toward their target. Each captain is master of the faith of his vessel, yet all may land where planned, as the target is known, and the shining of the compass's needle helps to keep the trail.
Corporate objectives are defined at the highest level, set the GOAL, the vision
This vision must be shared by all, so that everybody acts (at his own level) consistently to hit the targets. Each company layer or function defines its own targets, according to the top ones. This principle goes cascading down to the base (vertical diffusion) or in coordination between divisions (horizontal collaboration) or a mix of both. The concept's idea states: if all underlying objectives are met, the higher objective is automatically met, and so on, cascading up.
At regular and preset time, progress is monitored via indicators, set at same time as objectives.
Each level/layer reports his progress to his toping level/layer. According to progress evaluation, drifts must be corrected.
This process is endless, ongoing and follows PDCA (Plan-Do-Check-Action) principle.
First step: ACTION; higher objectives and priorities are set by top most authority (strategic planing)
Second step: PLAN; each division, subsidiary, section suggest its own objectives, defines the means and necessary resources, as well as indicators to monitor progress. This is the alignment phase of the company or "objectives Deployment".
Third step: DO; division managers, subsidiary heads, section leaders explain their plan to their staff and required actions merge with daily business.
Fourth step: CHECK; review and improve, check and react. Checking can be daily or at lower frequency. This check is active, meaning it will bring reaction to any drift.
After the cycle got completed, generally in a year, it is reviewed.
Several possible ways: audit, ceremony, conferences...
Results will be analyzed and explained, they will be base for definition of new objectives for the new cycle, starting with a new ACTION step.
Three key issues of HOSHIN are:
Objectives are clear and shared by all member of the organization, so individual efforts bring contribution to the common objective. From that the image of "shared vision", or the shine of the leading needle.
Improvement process is controlled by a planing method/tool.
Cascading objectives defined and set to each unit allow to reach the GOAL.
Strong point of hoshin kanri is its capacity to translate qualitative objectives, set at top most level, into quantitative objectives and action plans. It allows to concentrate numerous resources on a restricted number of priority actions.
Hoshin is most often used for strategic leading, or at lower levels, to lead improvement projects.
feedback welcome:
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Engineering home
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Each responsible, person in charge suggests five to ten objectives to his supervisor (higher level), expressed in measurable, understandable units. These objectives must be consistent with those of higher level.
Objectives should cover following topics/domains:
When consensus between responsible person and supervisor is met, these objectives are officially recorded. Each objective holds statement about targets, the way and means to measure progress, milestones and deadlines. These objectives are submitted to higher and lower level (vertical communication).
Results are systematically checked at regular intervals (once a quarterly, at least) and compared to objectives. If progress is not according with planing, problems have to be pinpointed and countermeasures set up.
Hoshin is part of an improvement policy, progressive and ongoing.
Duration is poisonous, hoshin planning may just die if no energy keeps it alive.
Lack of interest will show up if evaluation/checking frequency is too low, staff will forget to integer the Hoshin targets in their daily routine, and will hurry to show some (faked?) results just before checking. (end-of-month syndrome).
Objectives must be ambitious and realistic.
The system should be monitored by a "demanding" check authority, so to maintain staff's steady attention to progress. Credibility of the whole system depends upon the care, attention and dedication of top management. As counterpart of check authority, staff must also be demanding about information, feedback, means and resources...
If check meetings turn into meaningless routine gathering for easy target satisfaction report, or if periodic meetings got forgotten, if drifts or missed targets go unnoticed, the system is about to die -if not already dead. Even this seems obvious, time will distract you.
Hoshin has a common base with Management By Objectives (MBO).
So what is different?
Hoshin seems more incentive while MBO is based on directions. Hoshin focus
on process improvement rather than performance.
For me, difference between Hoshin and MBO is essential.
Hoshin is a strategic process which affects all level in the company. Hoshin goal is set by top most management.
It is supposed to be critical, to stay ahead of competitors or to go ahead once targets are hit, to survive
and stay in business. Other levels (divisions, subsidiaries, sections) must follow or suggest
their own objectives, provided they are aligned with higher ones.
Often, there is no discussion. In this process, many people are involved.
MBO si a process between two persons only:
In the US, this way is used for evaluation, to strive change, discuss, negotiate and set next period's objective, (usually 6 or 12 months).
Example:
Next comparison table tries to explain main differences that, from my point of view, exist between MBO and Hoshin Kanri.
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Hoshin Kanri |
MBO | |
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Main items |
1. Focused on procedure instead of on target. 2. It defines very clearly the mean through target can be got.
3. Control on mean and procedure. (possibility to improve work method) |
1. Focused on target.
2. Target is imposed to subordinates, then, it’s easy to fall in "control by pressure" 3. Control on target, not on mean nor procedure. (impossibility to improve work method) |
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Targets and means |
Means and targets breakdown. This way avoids "Targets got through bad means" management. |
Even if target was got, there is no way to clarify problematical items. Improvement chance is lost. |
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Consensus |
Planning, definitions, target and means development based on communication between superiors (horizontal), superiors and subordinates (vertical) and between subordinates (horizontal). |
Lack of horizontal communication will not break invisible barrier between superiors. |
Hoshin Kanri can be working in your factory, but there is the risk to degrade to MBO if you are not careful to analyze (check) and correct (act) the answers to next questions:
What is the reason why there is a difference between target and result?
Selected mean was right to get the target?
Is really the field changing and improving (visual check)?
Are there agreements between sections (horizontal) to avoid impediments for progress?
If there is no answers to questions above, means that you are focusing on targets only, that there is no visual checking and that there is no analysis to find out the reasons why targets are not carried out.
César Lailson E.
educaj@infosel.net.mx
W. Edwards Deming (www-caes.mit.edu/products/deming/about-deming.html), Among 14 points for change management, rejects Management By Objectives (MBO). Especially quantitative objectives.
In Deming's opinion, any objective is achievable if granted the necessary resources and MBO focus on targets, not improvement of process. Audits, rewards and evaluations linked to "quantitative" results end up as incentive to each individual to work for himself rather than for the common objective, and not necessarily in the direction fixed by company.
Objectives set at corporate level |
Objectives of subsidiaries/divisions |
Objectives of industrial division |
Objectives at shopfloor |
|
Increase profit |
Production: Increase productivity x% |
Reduce line stops y %
And
Reduce rework z% |
Reduce breakdown duration less than 10 minutes And Improve worker's technical skill
Introduce Poka-Yoke
Pareto charts
|
|
R&D: develop products with higher marging |
... | ... |
Function / level |
Top/higher Objectives |
Objectives |
target Value |
Check Frequency |
Indicators |
Division manager |
Increase productivity |
Profits |
Last year x%, this year y% |
Monthly |
Graphics |
Plant manager |
Reduce line stops |
Line stops duration |
for each line, limit h% |
Monthly |
Causes chart, graphics |
Division manager |
Reduce time to repair |
MTTR, repair duration |
Less than x hours / month |
Weekly |
Causes chart, graphics |
