3.Hoshin Kanri & Kaizen

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• Kaizen Kaizen is not a one-off activity, at Toyota it is supporting the daily kaizen.Organization is committed to the ideal of improving everyday within every part of the organization NOT just small improvements
• Two Types of Daily Kaizen Maintenance Kaizen and Improvement Kaizen
• Improvement Kaizen The work of not just maintaining standards but raising the bar, The goal is perfection and every process can be improved, No matter how many improvements have been made every process is still full of waste and ripe with opportunity to improve
• Maintenance Kaizen The process of reacting to the inevitable mistakes breakdowns and changes or variations that occur in everyday life in order to meet the standard (productivity and quality and safety) that is expected, The goal is to bring the system back to the standard. Using a lot of Andon-calls to bring problems to the surface so maintenance kaizen is urgent and immediate
• Leaders Role of Supporting Daily Kaizen Making sure that the new energy is added, not doing the work directly.
• Kaizen event Minor improvement projects
• Kaikaku Major improvement projects (Hoshin kanri)
• Minomi conveying parts without a container. Move different parts from one point to another in a confined space eliminating large containers and forklifts.
• Daily Kaizen at different levels A small group and Senior Managers and Functional Groups
• Daily Kaizen in small group level Running a part of the assembly line is likely to be localized to processes on the assembly line.
• Daily Kaizen at Senior Manager level Expected to lead kaizen activities that have a broad impact across many functions, leading to major system changes.
• Daily Kaizen at Functional Group level Lead major changes within their functions such as production control transforming the logistics and delivery system to a new level of performance
• Why Lean Fails Lack of direction and vision in running projects, Lack of time allocated for projects, Lack of resources, Lack of adherence from employees
• Why Lean Fails Cultural Resistance, Inadequate Training, Lack of commitment to the lean philosophy.
• What is Hoshin Kanri It captures the strategic goals and links the organization's daily activities
• Two levels of Hoshin Kanri Strategic Planning and Daily Management
• What does Hoshin Kanri do Promotes breakthrough thinking, and is process-oriented and not task-oriented
• Hoshin Kanri Aligns Vision and Goals and Plans for Continuous improvemen
• Hoshin “compass” or “pointing the direction”, The team used for the annual plans and goals up and down the company
• Kanri “Management” or “control”
• Hoshin Kanri Top Management Thinking → Prioritize →Break down → PDCA→ Standardized Process
• Hoshin Kanri The process of setting goals and targets and most importantly the concrete plans for reaching those targets.
• Hoshin Kanri Only refers to the alignment of breakthrough goals and objectives that take the company to a new level (sometimes called kaikaku) while stretch objectives on KPIs aligned with these goals are a part of daily management of kaizen
• Hoshin Kanri Combines long- and short-term planning methods with quality and objective management methods to produce a PDCA cycle
• Hoshin Kanri Drive continuous improvement throughout the organization to pick better improvements in kaizen events and see where to focus Kaizen events
• Hoshin Kanri Use VOC (Voice of Customer)
• Hoshin Kanri Se employees as key tools to drive the change
• Daily Management System Operations and monitoring of micro work processes.Support identification of task level work and processes and communication to management and cross-functional team.
• Cross-functional Management System Process across organization; addressing issues such as product/service quality.Management of organizations vision and mission and identification and management of cross-functional work processes and process improvements
• How many steps of Hoshin Kanri Seven Steps
• Step 1:Hoshin-Kanri Establish vision and assess the current state
• Step 2: Hoshin-Kanri Develop Breakthrough objectives
• Step 3:Hoshin-Kanri Define annual objectives
• Step 4:Hoshin-Kanri Cascade goals through organization
• Step 5:Hoshin-Kanri Execute annual objectives
• Step 6:Hoshin-Kanri Annual review
• Step 7:Hoshin-Kanri Monthly reviews
• Toyota Management System (TMS) Triangle Relates broad goals at the top leadership levels to concrete actions taken and measured by the working teams. Hoshin Kanri links the leadership together in a tight chain of goal setting and goal achievement
• TMS-Vertically Goals cascade down the organization and are turned into innovative thinking about how to achieve the goals
• TMS- Horizontally Different functions coordinate their plans to achieve the broader goals
• Toyota Management System Daily Management System, Clear Communication Channels, Managing Flow of Activities, Structured Team Problem-Solving
• Hoshin Kanri (Organizational Culture) Philosophy Principles Beliefs and Values | Skill Knowledge attitude and competence
• Culture Related Guidelines Kaizen Culture, Nemawashi Principle, Leadership Active Involvement
• Nemawashi Principle Digging around the roots of the tree to prepare for transplant. It is an informal process that goes on in the background to lay the foundation for some proposed change or project. Through this process leaders test and modify and improve broad proposals at all levels of the organization before it gets to the board for final approval
• Monozukuri The art of making value added products
• Catch-Ball The communication process where strategic goals and plans are “thrown” between management and different levels of the organization to ensure that the goals are realistic and well understood and that everyone has the opportunity to contribute with insights and suggestions for improvements. This process helps engage and ensure that the goal are feasible at all levels
• What Toyota wants to achieve Create an organization capable of sustained high performance and produce results
• How does Toyota want to Create an organization capable of sustained high performance and produce results? By Mid to long-term management plans and annual Hoshin, Prioritizing activities and resources, Involving all members in targets, PDCA checks and follow-ups
• Toyotas Strength Be able to Maximize performance as an organization through teamwork and develop the people through the job
• Hoshin Kanri Usese FMDS to take Bussiness Goals (Leadership vision, values and philosophies to drive every day floor activity (developing problem-solving to reach goals)
• F-M-D-S Floor Management Development System
• FMDS Technique to teach group leaders and managers to manage the floor, System aligning floor management and development activities to achieve company targets, The centerpiece is the visual management system that links daily performance in every group to plant-level metrics, It looks at safety and quality and productivity and cost and human resources, It promotes two-way communication creating an environment to address abnormal conditions.
• Who meet regularly at the FMDS visual management boards to cascade Executive leader, Plant leader, Group leader
• PDCA process Every attempt to improve the progress guided by the Hoshin goals
• PDCA (Plan) Standardization and generation and confirmation of annual and mid-and long-term plans (by top management and alla employees)
• PDCA (Do) Carry out scheduled plans (daily management)
• PDCA (Check) Review of processes and results (mid and end of year)
• PDCA (Act) Standardize the job
• Kanri Cycle Result Kanri + Process Kanri
• Western Culture Selecting and monitoring the right measure to drive change
• Japanese Culture Selecting and monitoring the right capabilities required to drive the change

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