Blog Archives

Best of Beyond Lean in 2013

Today I am highlighting the five most popular posts written in 2013.  Then in January I will post the Top 10 posts for the year.

Enjoy and have a Happy New Year!!!!

5.  Visual Management at Home (February 2013) – A great example of a visual board used at home of a friend of mine.

4. Hoshin Planning – Catch Ball (April 2013) – A great video explaining the process of catch ball during the strategy development process.

3.  My Continuous Improvemnt: Personal Kanban 3rd Revision (January 2013) – The latest update to my evolving personal kanban for work.

2.  Guest Post: Moneyball – Hoshin Kanri (March 2013) – Chad Walters does a great job explaining strategy deployment using the movie Moneyball

1.  When Standards are in Place, Everything is an Experiment (May 2013) – Talks about the importance of setting standards and using them to understand your processes.

Have a Happy New Year!!!!

Advertisements

Guest Post: Tracing the evolution of strategy deployment

This week is Lean series week at Beyond Lean.  The blog posts will center around strategy deployment (or Hoshin Kanri).  Justin Tomac, Chad Walters, Karen Wilhelm and Tony Ferraro will be guest blogging.  This will give you different perspectives from on strategy deployment all right here at Beyond Lean.

kw-prof-dec2011-3qtr-tanToday’s post is from Karen Wilhelm.  Karen has inspired me to connect and learn more through blogging.  It has been great communicating with Karen over the last few years.  Her insights are always enlightening.  This is part one of a two part series.  The second part will post on Karen’s blog.

Part One: Japanese manufacturing leaders listen to Dr. Juran

As hoshin kanri — also called policy or strategy deployment — becomes better understood through Matt’s blog series, I thought I’d trace some of its roots, as described in some key publications. As with all things lean, hoshin kanri can mean many things to many people.  Three key figures who brought hoshin kanri to light saw it from different perspectives too.

In 1951, for example, Dr. Joseph Juran gave a talk at the Industrial College of the Armed Forces (ICAF, 1951) — formerly the Army War College — to engineers involved in procurement of high-precision parts for armaments. Titled “Quality Control and Inspection,” the lecture focused on product quality characteristics and the use of statistical quality control (SQC). He talked about how assuring quality in product design and manufacturing processes instead of inspecting and rejecting parts that did not meet specs. In this particular talk, Juran only fleetingly touched upon cross-functional communication, continuous improvement, and other critical concepts included in hoshin kanri.

As many of you know, around the same time, Dr. Juran (as well as W. Edwards Deming) was speaking to groups of Japanese manufacturers who were more interested in his quality message than those in the U.S. or Europe, Toyota began sending key managers to quality seminars as early as 1949. Along with other seminars, Dr. Juran was asked to hold a special one for the industrial leadership of Japan: 70 presidents of Japanese companies.

Dr_Juran_smallJuran never used the words hoshin kanri, but from the 1950s on, he described an integrated plan for integrating quality into the company’s management system (Juran, 1988). A company taking this path would be developing a quality strategy understood and carried out at every level of the company. Communication and coordination across functional departments would be effective. Upper management would understand and
perform the tasks needed to make the quality strategy take root.

Juran called the highest level of guiding and planning the strategy Total Quality Management (TQM) or sometimes Strategic Quality Management (SQM). Far beyond the control and inspection of product or service quality, these approaches encompass customer demand, competition, and feedback loops. They advocate creating processes to produce high quality products at a reasonable cost. Juran talked about quality deployment as part of the overall strategic plan, mostly with regard to products and their physical characteristics. Although he was sticking to quality deployment, not the deployment of a company’s entire business system, these concepts are hallmarks of hoshin kanri.

Part Two of Tracing the evolution of strategy deployment will be published in Karen
Wilhelm’s Lean Reflections blog.
References

Joseph Juran, Quality Control and Inspection, Publication L51-94, Industrial
College of the Armed Forces. 1951.

Joseph Juran, Juran on Leadership for Quality: An Executive Handbook, The Free
Press, division of Macmillan. 1998.

Takahiro Fujimoto, The Evolution of a Manufacturing System at Toyota, Oxford
University Press. 1999.

Guest Post: Hoshin Planning: Clear Business Objectives Help Guide Success

This week is Lean series week at Beyond Lean.  The blog posts will center around strategy deployment (or Hoshin Kanri).  Justin Tomac, Chad Walters, Karen Wilhelm and Tony Ferraro will be guest blogging.  This will give you different perspectives from on strategy deployment all right here at Beyond Lean.

blogphotoToday’s post is from Tony Ferraro, on behalf of Creative Safety Supply based in Portland, OR (www.creativesafetysupply.com). Tony strives to provide helpful information to create safer and more efficient industrial work environments. His knowledge base focuses primarily on practices such as 5S, Six Sigma, Kaizen, and the Lean mindset. Tony believes in being proactive and that for positive change to happen, we must be willing to be transparent and actively seek out areas in need of improvement. An organized, safe, and well-planned work space leads to increased productivity, quality products and happier employees.

There are many businesses out there proposing new and creative ideas but somehow lack the guidance and direction to make a good product idea a successful reality. What is it that curbs these business ventures? Is it funding? Is it technology? Or is it a true sense of guidance and leadership? In most cases, the unfortunate truth is that a great product idea or truly unique business plot will flounder and fail without a strategic direction and strong force of leadership helping to guide business objectives. One of the ways to meet this need is to implement the principles of Hoshin Kanri or simply Hoshin Planning. Hoshin Planning is a Japanese term that basically means “strategic planning.” This type of planning strives to really involve all employees in the objectives and improvements within the organization. Top levels of management make it a priority to assure that that all employees feel involved and that they are working as one big team towards a common goal. With this mindset there are no winners or losers within the company, it is purely a team effort and everyone participates and is accountable to help in meeting the identified objectives. The need for continuous improvement is also a highly valued component in this type of planning.

Possible Hoshin Objectives

One of the first and most important steps within Hoshin Planning is to identify the areas in need of improvement, and since Hoshin Planning is about setting clear business objectives it is important identify which objectives are most valuable to the livelihood of the business. Some common continuous improvement objectives include: increasing production, improving current market share along with new market sales, reducing raw material costs and also reducing direct and indirect labor costs. The reason this step is so vital is because everything can’t be tackled at once, think of the analogy that the “big rocks” must be taken care of first in order to start focusing on the “little rocks.”

Organizing Objectives for Clear Measurement

Unfortunately, objectives are merely a list of far-fetched desires if they are not organized properly for action. Sure, a group of leaders can set aside some time to devise a list of company objectives and write them neatly upon a fancy sheet of paper. However, without a concrete plan to guide the objectives the objective planning session would be deemed useless, and the paper may even end up getting lost in someone’s briefcase only to stumble upon it again weeks later. Instead, once objectives are identified they need to be taken seriously and should be categorized and organized for efficiency. For example, once a group of leaders has clearly identified the objectives they would like to implement into the business, they could categorize them into four different types such as improvement projects, specific action projects, 3-5 goals, and annual objectives. By doing this, top company leaders as well as employees will be able to visualize the different objectives and goals and really understand the time frames behind them as well. Essentially this sets the stage for developing the approaches needed to help pursue the stated objectives and goals when moving on to the strategy development phase of Hoshin Planning.

Hoshin Planning is really a dynamic and multifaceted form of strategic planning which involves all areas of a business. However, in order to reach optimum effectiveness all staff should be on board and involved. With that said, and in conjunction with the right objectives, Hoshin Planning can be a huge asset to any business looking to improve overall company performance.