In my previous posts I explained how Hoshin Kanri works. This post looks at how Toyota embeds Hoshin Kanri as part of their overall management structure. Toyota started this in 1979 when director Masao Nemoto started the Kanri Noryoku Program (管理能力プログラム), usually shortened to KanPro.
When googling Hoshin Kanri, you will sooner or later come across an X-Matrix. It is a visually very impressive tool, but I am in serious doubt about its usefulness. It focuses on the creation of the Hoshin items, but to me this approach is overkill, and – even worse – may distract the user from actually following the PDCA, especially the Check and Act parts. While the article is highly critical, I hope reading it and understanding the shortcomings help you better understand how Toyota thinks.
Hoshin Kanri can be used individually, but its full potential is shown across the levels of corporate hierarchy. The goals of a Hoshin Kanri should be derived from the Hoshin Kanri of the next-level hierarchy above. This post is part of a larger series on Hoshin Kanri. Let’s look at the hierarchy structure:
In my first post on Hoshin Kanri I explained the details of making the list for the Hoshin. This now has to be combined with a PDCA (Plan, Do, Check, Act). The rigor of PDCA gives value and life to what would otherwise be a simple action list. Let me show you:
This week I will look at Hoshin Kanri (方針管理, policy management). The word is often used as a sort of miracle cure for the problems in your organization. The tool itself, however, is rather mundane, although it did significantly help Toyota. This, of course, did not stop the West from over-complicating and over-hyping it. This post is the start of a small series on Hoshin Kanri.