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Business Framework: Hoshin Kanri - Policy Deployment
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What is Hoshin Kanri?
Hoshin Kanri (HK) is a cyclic planning and management concept from Japanese origin. It is applied at two levels:
The two-pronged Hoshin Kanri approach is considered one of the pillars of the Total Quality Management philosophy. The method can also be thought of as the application of the Deming Cycle (PDCA / PDSA) of Plan, Do, Study (Check), Act to the management process. The Hoshin Review of the plan of last year is the basis (STUDY) for the new Hoshin Annual Plan (PLAN). This plan is cascaded down the organization via Annual Planning Tables. At each level, the policy is translated and implemented (DO) into policies, targets and actions for the next level down. These APTs are then periodically (monthly) reviewed. Causes of any differences between expected and actual results are identified, discussed and agreed. Corrective action is identified (ACT).
The Japanese word Hoshin means: a course, a policy, a plan, an aim. The word Kanri means administration, management, control, charge of, care for. The HK process is often compared to calibrating compass needles. HK is sometimes also referred to as: Policy Deployment or Hoshin Planning.Origin of the Hoshin Kanri philosophy
The Hoshin process developed in Japan during the 1960s from quality management practices at Bridgestone Tire Company, Toyota, Nippon Denso, Komatsu, and Matsushita. It was strongly influenced by the Plan-Do-Check-Act cycle of Deming, Management by Objectives of Peter Drucker, the new divisional concept of General Motors, and the lectures by Dr. Juran on general management. The term Hoshin Kanri became widely accepted in Japan in the mid-1970s. By the late 1970s the experience accumulated in industry had been distilled into a formalization of the principles, and the first books on the subject appeared. The first symposium on HK was held in Japan in 1981, and in 1988 the Japanese Association of Standards published a series of works dealing with HK practices. During the 1980s, the concept spread to the USA. Hewlett-Packard, Procter & Gamble, Florida Power & Light, Intel, and Xerox began to implement their own versions of HK.Usage of Hoshin Kanri Planning
Source: Yoji Akao - Hoshin Kanri - Policy Deployment for Successful TQM
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