Kaizen: Hoshin Kanri, Bowler Charts, Action Plans, and More

In my last two posts I described bowler charts, named due to their similarity to the score charts used for bowling. In this post I want to talk a bit more how the bowler chart fits in the big picture… or, if you will, how the big picture can use a bowler chart.

This will be a big picture on kaizen improvement. First you need your true north, which allows you to set your overarching targets (e.g., in a hoshin kanri). To reach the overarching targets in the hoshin kanri, you need practical problem solving, A3s, or an Action plan to make actual improvements toward your overarching goals. Underlying all of this is of course the PDCA. But, let me show you in more detail:

True North

True North
True north

Improving your system or organization is not hard but also is not that easy. There are many ways you can go astray and waste your efforts. The first step is to have a clear understanding of the direction you want to improve your company. This is often called the “true north.” There are two common mistakes here: 1) picking a bad direction, and 2) changing it too often.

True north should be a direction truly beneficial to the company. And, in my opinion, “cost” is not a good true north. Examples for a good true north would be a lot size one, zero defects, zero changeover times, 100% delivery performance, and so on. If you achieve those, cost and profit will improve too.

The direction should also not change much. As a counterexample, I know of one car maker that initiated a major project to reduce weight in the wheel suspension. Hence, steel parts were replaced by lighter aluminum parts. Three years later, a project aimed for cost reduction. Hence, expensive aluminum parts were replaced by cheaper steel parts. Another three years later, the goal was weight reduction again, and the switched out the steel parts for aluminum again, only to switch back to steel another three years later. Lots of improvement, but all moving in circles and not really improving much.

One of the biggest risks of changing direction is a change in management, where a show of activism is often needed to demonstrate the superior capabilities of the new manager. Often this means changing the goals and directions, along with renaming and restructuring the departments. Yes, this also often does not improve anything, but it makes a career look good.

Hoshin Kanri

Once you have the general direction with the true north, then you should pick actual goals. Here, hoshin kanri is a useful tool. It is basically a (usually) annual performance review. Based on the current state, last year’s goal, and the true north direction, new targets are set for the next twelve months. This is basically a list of goals. There should be only three to six main points (hoshin items) for each person. These items should be based on a process, not on a target. Always at the end of the year (and with possible mid-year reviews) the goals are checked and updated. Hence, the hoshin kanri includes a PDCA.

Hoshin Kanri Template
Hoshin kanri template

Action Plan

To achieve the goals of the hoshin kanri, changes have to be made. This is summarized in an action plan. What different projects or actions are undertaken to achieve the goals of the hoshin kanri. Each project has exactly one person responsible for the project. There should be a numerical, measurable target if anyhow possible, including a deadline or a timeline. An action plan often includes an A3 report, where the project is developed on a single sheet of A3 paper (albeit nowadays digital systems are common). This is also part of the Toyota practical problem solving process.

A3 Format Template
A3 format template

Toyota practical problem solving consists of the steps as listed below:

  • Clarify the Problem
  • Break Down the Problem
  • Set a Target
  • Root-Cause Analysis
  • Develop Countermeasures and Implement
  • Monitor Process and Results
  • Standardize and Share

Bowler Chart

The bowler chart is a tool to track the progress of projects over time. It allows for the targets to change over time as well. It is explicitly for improvement projects. This is not to be confused with normal tracking of KPI on a dashboard.

Two Color Three Color Traffic LightNote that the bowler chart is only one possible way to display the changes of your performance measures over time. The important part is to track the changes over time. Many companies use a red/yellow/green traffic light to indicate the status of the project, and to see if any values are falling behind.

For a stricter approach you could also use only two colors red and green, because either you are within the target or you are not. But many companies prefer the softer, “almost there” yellow color.

PDCA

PDCA CircleThe key to all this and the underlying philosophy to all of the above is the PDCA (Plan, Do, Check, Act). You should always verify whether you have truly achieved your goals (i.e., the “Check” part). If not, you should “Act” and see where you went wrong, initiating another “Plan” on how to to reach the targets, and then “Do” and implementation to actually reach them (followed by another “Check” if you have reached them and more “Act,” “Plan,” etc. if not).

This PDCA can be found in multiple locations of this improvement. The hoshin kanri itself is a big PDCA loop to see if you have reached your overarching goals, and to correct and adjust if not. A second, smaller PDCA loop is in the action plan or the A3 report, tracking whether you have reached your prioritized target specific to the problem you want to improve. In other words, the hoshin kanri is the big PDCA, with smaller practical problem solving PDCAs to reach the hoshin kanri targets.

I hope this overview picture of how to do improvements was helpful to you. Now, go out, get your direction, set your targets, and then chip away your problems until you reach the targets and organize your industry!

P.S.: Many thanks to Bernd Sägmüller from Jenoptik for his inspiration and knowledge that contributed to this post.


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