Hoshin Planning Al Maaref University, Faculty of Business Administration Seminar Series Hussin Jose Hejase, Dean Faculty of Business Administration, Al Maaref University August 23, 2017

Hoshin Planning Hoshin kanri is a management methodology first popularized in Japan in the 1950s, based on the ideas of Professor Yoji Akao. Akao taught that "Each person is the expert in his or her own job, and Japanese TQC [Total Quality Control] is designed to use the collective thinking power of all employees to make their organization the best in its field.“ Hoshin means "compass needle" or "direction," and Kanri means "management" or "control." This is an apt name, since the methodology is all about how an organization’s overarching strategic goals should guide action at every level of the business. The goal is to get everybody pointed in (and working toward) the same direction, often referred to as "true north." Hoshin kanri is often referred to as "strategy deployment" or "policy deployment.“ https://www.kainexus.com/improvement-disciplines/hoshin-kanri Mogharei, Ebi (2012) Hussin J. Hejase Aug. 23, 2017

Introduction One of the most important practices in TQM is Hoshin Management. Most business goals, if challenging, require a breakthrough or a step-function improvement. To get a step-function improvement, strong alignment is necessary throughout the business. Through Hoshin Management, total employee participation is needed to achieve the breakthroughs and thus the most important business goals. Hussin J. Hejase Aug. 23, 2017

History of Hoshin Planning The original development of Hoshin Kanri is inextricably entwined with the spread of quality management principles and practices within the Japanese industry. The idea of an integrated company-wide management system, bound together by a planning system, began to develop in Japan during the 1950's and 1960's. Hussin J. Hejase Aug. 23, 2017

Dr. Joseph Juran's lectures on general management. The original development of Hoshin Kanri was heavily influenced by: The Deming Prize, established in Japan in 1951, which from the outset called for a system of planning. Peter Drucker's book “The Practice of Management”, which proposed Management By Objectives (MBO). This was published in Japanese in 1954. General Motors' divisional system, which was a novel concept at that time. Dr. Joseph Juran's lectures on general management. Hussin J. Hejase Aug. 23, 2017

Overview Some people think TQM addresses only incremental improvement. However, TQM includes three types of continuous improvement within its concepts: (1) process control improvement, (2) incremental improvement, and (3) breakthrough or step-function improvement. Important problems can often be solved with incremental improvements within a department alone. Critical problems need resources from many departments or divisions. Companies invested and aligned the many resources across these departments and divisions to achieve the needed breakthrough. This coordinated improvement activity is the Hoshin Management. Hussin J. Hejase Aug. 23, 2017

Applying Hoshin Kanri ALFRA Consulting (2017). Hussin J. Hejase Aug. 23, 2017

Interpreting Hoshin Kanri Understanding the origin of the words can provide insight into Hoshin concepts. The term Hoshin is short for hoshin kanri. The word hoshin can be broken into two parts. The literal translation of ho is direction. The literal translation of shin is needle, so the word hoshin could translate into direction needle or the English equivalent of compass. The word kanri can also be broken into two parts. The first part, kan, translates into control or channeling. The second part, ri, translates into reason or logic. Taken altogether, hoshin kanri means management and control of the organization's direction needle or focus.   Hussin J. Hejase Aug. 23, 2017

Therefore we can deduct that: Hoshin = a course, a policy, a plan, an aim Kanri = administration, management, control, charge of, care for The most popular English translation of Hoshin is Policy Deployment. Most books by American authors use Policy Deployment as the name for Hoshin. No matter what one calls it, Hoshin is effective and helps organizations become more competitive. Hussin J. Hejase Aug. 23, 2017

More into Hoshin Kanri Hoshin Kanri is a planning and management system that focuses and aligns the organization to achieve breakthroughs for customers. Hoshin Planning does not replace other management strategies, it is a type of strategic planning system that orchestrates continuous improvement and breakthroughs. It selects the area that needs improvement, makes sure the right people get involved, and that the improvement is implemented. Hussin J. Hejase Aug. 23, 2017

The Components of Hoshin Planning Focus for the organization Commitment to customers Deployment of the organization’s focus Collective wisdom to develop the plan Tools and Techniques Ongoing evaluation of progress Hussin J. Hejase Aug. 23, 2017

The Process of Hoshin Management Determine Hoshin Deploy Hoshin Implement Hoshin Review Hoshin Adjust Hoshin Hussin J. Hejase Aug. 23, 2017

How Hoshin Planning makes the Strategic Plan Work Priya, G. (2014, October 4). Hussin J. Hejase Aug. 23, 2017

Conclusion Why has Hoshin Management become popular? Achieving a breakthrough improvement on critical problems may be reason enough. Another reason is the need for rapid response to a changing environment. For instance, economic, political, and technological changes are forcing the organizations to change. The organizations needs quickly to align resources to the changing environment. Hussin J. Hejase Aug. 23, 2017

Hussin J. Hejase Aug. 23, 2017

References Mogharei, Ebi (2012, April 10). Lean Management Consultant Secrets: Hoshin Planning Process. Retrieved August 21, 2017, from http://www.getkaizened.com/blog/lean-management-consultant-secrets-hoshin-planning-process-2/ KaiNexus. (2017). Hoshin Kanri: The Pursuit of Organizational Alignment. Retrieved August 15, 2017, from https://www.kainexus.com/improvement-disciplines/hoshin-kanri ALFRA Consulting. (2017). Hoshin and Daily Management. Retrieved August 15, 2017, from https://www.alfraconsulting.eu/hoshin-and-daily-management/ Hejase, Hussin Jose (2017). Total Quality Management. Seminar Series, Al Maaref University, April 20, 2017. Retrieved August 10, 2017, from https://www.researchgate.net/publication/316634865_Total_Quality_Management_adarat_aljwdat_ alshamilt Priya, G. (2014, October 4). How Hoshin Planning makes the Strategic Plan Work. Retrieved August 12, 2017, from http://www.usebusinesstips.com/top-10-important-aspects-hoshin-strategic-planning/ Hussin J. Hejase Aug. 23, 2017