Hoshin planning overview

(upbeat music) - Hi there, my name is Ron Pereira, and I'd like to welcome you to this first overview module of this course, focused on hoshin planning. Sometimes referred to as hoshin kanri, or policy deployment. Now, by the end of this module, you'll know what hoshin planning is, as well as why it's such a powerful approach to strategic planning, and more importantly, the effective deployment of a strategic plan. Now, additionally, by the end of this module you'll know the basic steps to the hoshin process. Now, throughout the rest of this course we'll take you on a thorough journey through each of these steps, explaining exactly what to do, no matter your experience with lean manufacturing. Okay, so let's get started with a definition. Now simply put, hoshin is a strategic planning process with built-in review, improvement, and learning activities. Now the official phrase used to describe this style of strategic planning is hoshin kanri. And when we break this phrase apart we learn that hoshin means direction or policy, and kanri means management. In other words, hoshin kanri is a management tool that helps keep the organization focused in the right direction. Now, throughout the rest of this course, we'll simply refer to the hoshin kanri process as hoshin planning. So, that's what it is. Now, let's take a few moments to discuss a few of the benefits of hoshin planning. First, hoshin planning aligns everyone towards a few high-impact objectives, while also keeping them accountable for their commitments through visual management and review. Next, the organization learns and improves the planning process through root cause corrective action. And finally, hoshin planning standardizes user reporting and presentation format, while also reducing the number of ad hoc reports generated, creating a form of Gemba focused management, as we see in this picture. Okay, well, to wrap this module up I'd like to introduce the seven step hoshin planning process that we'll be covering in much more detail throughout the rest of this course. Now the first step is to develop the vision, mission, and key metrics of the organization. Now, this is an important step as it lays a foundation for the rest of the process. Now in some cases, this step may already be done by your organization, and you will be able to move on to step two right away. Now the second step is to identify breakthrough objectives, which are the vital few significant changes needed for the organization to achieve its vision. Now once we've identified two to three breakthrough objectives, we'll set annual improvement plans, which is the third step in the process. And, while we reference annual plans, there is flexibility to create shorter planning horizons, such as quarterly objectives. Now, the fourth step has us deploy these annual objectives top to bottom, through a process called Catchball, which develops consensus about how objectives will be met through two way communication between management and their direct reports. Now as it turns out, the phrase catchball comes from the idea of two people playing catch with a baseball. Now the fifth step of the hoshin process challenges the organization to review results on a weekly, monthly, and annual basis. And to do this, the organization will utilize tools such as a bowling chart, to monitor how things are going. Now, we'll see an example of a bowling chart here, which we'll cover in much more detail in coming modules. Now step six of the hoshin planning process is focused entirely on problem solving. Now during step five, there will be occasions where we miss on an objective, requiring a counter measure to be implemented. Now by following the eight steps to practical problem solving, which we'll review later in the course, root causes to these problems can be identified and countered accordingly. Now, it should be noted that there are fundamental similarities between Kaizen breakthroughs, problem solving, and hoshin planning, since they all follow the plan, do, check, act process. Now finally, step seven of the hoshin planning process is all about reflection and learning, as we constantly seek to understand and grow from our daily work. All right, well that wraps up this first overview module. Again, throughout the rest of this course we'll be going on a much deeper dive into each of these seven steps. Now in our next module, we're going to get things started as we learn all about creating a mission statement for your organization. So, we'll speak to you soon.