1. IENG 451 / 452 Hoshin & Lean Culture
IENG Lecture 24
Hoshin & Lean Culture
5/30/2018
IENG 451 Operational Strategies
(c) D.H. Jensen

2. IENG 451 Operational Strategies
Hoshin
Hoshin (Planning) answers two questions:
Where are we going?
How do we get there?
Why do Hoshin Planning?
To improve organizationally and individually
To compel renewal and re-innovation
To learn … as in becoming a learning organization
What prevents Hoshin Planning from working?
Unrealistic forecasts and expectations
Arbitrary goals without a clear link to:
Needs
Means
Feasibility
5/30/2018
IENG 451 Operational Strategies

3. Hoshin – Sakichi Toyoda
Sakichi Toyoda’s planning process observations:
Management consists of:
Improvement Work – strategic planning – big picture efforts
Removing the big obstacles in our path
Routine Work – tactical or operational planning as needed
Addressing the smaller, irritating stones along the way
Paradox of Planning
We are overwhelmed by the daily challenges, displacing the big picture work
Planning should avoid taking on too much, diluting energy and thence achieving nothing!
5/30/2018
IENG 451 Operational Strategies

4. Hoshin – Sakichi Toyoda
Sakichi Toyoda also observed that most planning problems were caused by disconnects:
Horizontal Disconnects – are found within departments
Vertical Disconnects – are found between departments
Temporal Disconnects – occur with our timing
To avoid disconnects, the Hoshin Planning process consists of:
PDCA (Deming’s Plan – Do – Check – Act sequence)
Nemawashi (preparing the ground for transplanting)
Catchball (bouncing plans back and forth at every level, until everyone understands and is in consensus)
Control Department Concept (one department takes the overall system perspective so that the other departments may address their perspectives)
A3 Thinking (communicating the plan succinctly and thoroughly)
5/30/2018
IENG 451 Operational Strategies

5. IENG 451 Operational Strategies
PDCA – W. Edwards Deming
Deming … steps in the process:
Plan – identify the gap
Do – address the question: “what prevents us”
Check – prioritize our efforts
Act – execute our action plan – test our hypothesis
Failure Modes for PDCA:
Not defining the gap
Initiating action without understanding either what you should improve or by how much you should improve
Superficial causal analysis
Not prioritizing – or prioritizing without data
Action that does not address the most important causes
5/30/2018
IENG 451 Operational Strategies

6. IENG 451 Operational Strategies
Hoshin
Good planning aligns our actions with key company goals:
Product Goals
Market Niches
Market Share
Technology Goals
Financial Goals
Planning has a Vector Analogy
Balanced Vector Forces result in no displacement (movement), and thus no work is accomplished
Aligning the Majority of the Vector Forces results in movement towards the goal. The more alignment in the vectors, the faster the movement!
The key to alignment is good communication …
5/30/2018
IENG 451 Operational Strategies

7. IENG 451 Operational Strategies
A3 Planning
A3 is a standard paper size - 11” x 17”. What it really means that we communicate in a standard format that is both concise and complete.
Four types of A3 planning formats:
Hoshin Planning A3 – summarize department & company hoshin
Problem Solving A3 – summarize problems and countermeasures
Proposal A3 – present new ideas in 10 minutes or less
Current Status A3 – summarize current conditions for improvement
Why A3 Formats?
Lack of a standard prevents finding the information that is needed
Bulk – sorting though a “core dump” of information kills your quality of life!
5/30/2018
IENG 451 Operational Strategies

8. IENG 451 Operational Strategies
A3 Examples
Format for a Hoshin A3:
Dennis (2015)
p. 178
5/30/2018
IENG 451 Operational Strategies

9. IENG 451 Operational Strategies
A3 Examples
Format for a Current Status A3:
Dennis (2015)
p. 178
5/30/2018
IENG 451 Operational Strategies

10. IENG 451 Operational Strategies
A3 Examples
The structure of an A3 is designed to quickly answer questions … you can find the info FAST!
Dennis (2015)
p. 179
5/30/2018
IENG 451 Operational Strategies

11. Lean Culture – What does it value?
PDCA – a bias towards measurement and focused action
Standardization – standards are not fixed, but they are living documents that control our efforts
Visual Management – everyone can see what the situation is, no advanced degree needed to help improve
Team Work – everyone is involved, all the time
Paradox – “stop the line to avoid stopping production”
Intensity – always improving, all the time, as fast as possible
The “DO” concept – (Japanese word for path) – we make a plan and execute that plan, no exceptions!
5/30/2018
IENG 451 Operational Strategies

12. Lean Culture – What drives it?
Safety First
All employees matter
Employment Security
The business and the employee are intricately tied together
Uniformity
All the uniforms are the same, no status, no difference in importance
Transparency
No executive offices, no walls
Flat Organization
No executive dining room or reserved parking spaces
“Go See” Mentality
Constant contact with the production floor
5/30/2018
IENG 451 Operational Strategies

13. House of Lean CUSTOMER FOCUS JUST IN TIME INVOLVEMENT JIDOKA
Hoshin Planning, Takt, Heijunka
Involvement, Lean Design, A3 Thinking
JUST IN TIME
INVOLVEMENT
JIDOKA
Standardized Work 5S
TPM
Kaizen Teams
Suggestions
Safety Activities
Hoshin Planning
Flow
Heijunka
Takt Time
Pull System
Kanban
Visual Order (5S)
Robust Process
Involvement
Poke Yoke
Zone Control
Visual Order (5S)
Problem Solving
Abnormality Control
Separate Human & Machine Work
Involvement
STANDARDIZATION
Standardized Work
Kanban, A3 Thinking
Visual Order (5S)
Hoshin Planning
STABILITY
Standardized Work, 5S, TPM
Jidoka, Heijunka, Kanban
5/30/2018
IENG 451 Operational Strategies

14. IENG 451 Operational Strategies
End of the Term
Term Project:
Turn in ONE document, electronically (pdf), due Wed, 14 DEC, 1:00 PM
All team member names on the cover page
Introduction
Define
Measure
Analyze
Control
Results & Conclusions
Appendices
The focus of the project is to demonstrate that you can:
Follow the DMAIC process
Use appropriate tools for the circumstances
Draw logical conclusions
Improve the situation, measurably
5/30/2018
IENG 451 Operational Strategies

15. IENG 451 Operational Strategies
End of the Term
Final Exam:
Friday, 10:00 – 11:50 AM, in this classroom
Enter at 9:55 AM
Start at 10:00 AM
Completed exam in my folder at 11:55 AM
Format:
40 Questions
Multiple Choice
Resources:
Calculator
Mechanical Pencil & Eraser
Engineering Notebook
The focus of the is on material since the Midterm (Lean Systems):
5/30/2018
IENG 451 Operational Strategies

16. IENG 451 Operational Strategies
Questions & Issues
5/30/2018
IENG 451 Operational Strategies
(c) D.H. Jensen