Hos oshi hin nK Ka anri nr i Workshop Leader’ Lea der’s s Guide ui de
By
Pete Babich Babic h
© Total Quality Engineering Inc., 2004-2006. All rights reserved. Revision: 003, 6/15/2006
No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without prior written written permission from Total Quality Engineering Inc. Please don’t make unauthorized copies the Leader’s Guide or the accompanying CD. If you need a copy and truly can’t afford it, then please contact TQE and ask for special consideration. Author: Pete Babich Total Quality Engineering Inc. 15997 Grey Stone Rd Poway CA 92064 USA Phone: +1-858-748-2916 E-mail:
[email protected]
Fax: +1-858-748-0427 Web site: http://www.tqe.com
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Hoshin Workshop Leader’s Guide
Hoshin Works orkshop hop Leader’s Leader’s Guide Table Ta ble of co content ntent s
Workshop Preparation ................................................... ........................................................................................................ ..................................................... 5 Workshop Objective................................................. Objective ......................................................................................................... ........................................................ 5 Participant Material .......................................................................................................... .................................................... ...................................................... 5 Prerequisite knowledge .................................................................................................... ............................................... ..................................................... 5 How to use this guide ....................................................................................................... ..................................................... .................................................. 6 Module 1 – Introductions and Hoshin overview............................................. overview................................................................. .................... 7 Module 2 – Mission and Key Key Activities Activities ................................................... ........................................................................... ........................ 17 Module 3 – Performance Measures .................................................................................. ............................................... ................................... 25 Module 4 – Long Range and Annual Plans ...................................................................... ............................................ .......................... 33 Module 5 – Periodic review................................................. review .............................................................................................. ............................................. 43 Module 6 – Implementation tips ....................................................................................... ............................................... ........................................ 49 Case Studies ....................................................... ............................................................................................................... ............................................................... ....... 57 Education ........................................................................................................... .................................................... .................................................................... ............. 59 Manufacturing .............................................................................................................. ........................................................ ...................................................... 115 Service ....................................................... ............................................................................................................... ................................................................... ........... 173 Appendix................................................... Appendix ........................................................................................................... ...................................................................... .............. 219 Appendix A – Workshop checklist.................................................. checklist............................................................................... ............................. 219 Appendix B – Suggested room layout........................................................ layout .......................................................................... .................. 220 Appendix C – Schedule planner ................................................................................... ................................................. .................................. 221
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Hoshin Workshop Leader’s Guide
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Hoshin Workshop Leader’s Guide
Workshop Preparation
Workshop Obje Objective ctive The objective of this workshop is is to introduce the Hoshin Kanri Kanri planning process. The workshop will familiarize participants with the history of Hoshin, its rules, forms, and procedures. It will show how Hoshin augments the Total Quality Management (TQM) philosophy. The workshop is divided into six modules. Each module begins with a lecture to introduce the tools. Then, in a team environment, participants will practice using the tools by working through through a case study. In a two-day workshop, participants will also be able apply the tools to their specific work environment and receive coaching on correct Hoshin application. Upon completion of the workshop, participants will understand how to implement and adapt Hoshin to his/her workplace. Participant will have a complete set of forms, rules, rules, procedures, and guidelines to assure that the full power of Hoshin is realized. In addition, the participants will have experience practicing p racticing Hoshin Kanri in a safe, classroom environment.
Partic Pa rtic ipant Material Material The workshop is based on the Hoshin Kanri planning process described in the Hoshin Handbook Third Edition, by Pete Babich. Each workshop participant participant should be provided with with a copy of the handbook and a participant’s workbook based on the case study selected. Copies of the participant’s workbooks, in PDF format, can be found on the CD. The licensed owner of this Leader’s Guide can print an unlimited number of participant workbooks. Handbooks can be purchased directly from from TQE. http://www.tqe.com
Prerequisite knowledge Workshop instructors should be proficient proficient with the Hoshin K Kanri anri process. They should have studied the Hoshin Handbook and have actually used Hoshin in a real, work-related environment. Instructor credibility is significantly enhanced when they can draw upon their own experience for examples.
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Hoshin Workshop Leader’s Guide
How to use this gui de Conducting a Hoshin Workshop can be a challenging experience, but this guide is designed to make the process as easy as possible. As the developer of the Hoshin Workshop, I have conducted well over a hundred workshops and never used a Leader’s Guide. Of course, since I wrote the Hoshin Handbook and created the workshop, I didn’t need one. I knew what I was going to say at any point in the workshop. For someone new to Hoshin or new to training, however, conducting a workshop like that could result in some embarrassing moments. The Leader’s Guide is intended to provide additional insight and tips that are not available in the participant’s workbook. workbook. I tried to include in in the guide the things I look for during the workshop and how I handle the different situati situations ons that arise. In areas of the guide where I suggest a specific script, the text is in script . Don’t feel compelled to actually use my script. It is far better to use your own words, but in these cases I felt it was easier just to share with you what I typically typically say. In general, it’s better if you make sure you understand the message you are trying to convey and then use your own words and examples. The Leader’s Guide follows the format of the participant’s participant’s workbook. There are three different participant workbooks, depending on the case study selected. While the case studies are in sequence with the lecture notes in the workbook, they are shown separately in the Leader’s Guide. You are encouraged to become familiar wi with th the participant workbook you choose and compare it to the Leader’s Guide to see the differences. I suggest you study both guides and create one master participant workbook for your own use. Make notes in this workbook and use it as your guide during during the workshop. workshop. That way you will be able to synchronize your discussion with what the participants are seeing. Well, good luck with your efforts. I’m sure not many many people will teach a Hoshin workshop just like me. Some will not do as well, well, but hopefully with this guide most of you will do it better. Also in the spirit spirit of continuous improvement, if you have suggestions for making this guide better meet your needs then I welcome your feedback.
Best regards,
Pete Babich
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Hoshin Workshop Leader’s Guide
Module 1 – Introd Introd ucti uctions ons and Hoshin overview
Time requi requi red: red: 45-60 45-60 minutes “Who are these people and why are we here?” “What is Hoshin Kanri?”
Overview This module introduces the instructor to the participants and the participants to each other. It provides an overview of the entire workshop and an introduction to the Hoshin Kanri process. It discusses the history of Hoshin and how it fits in a TQM system. system. It introduces the concept of Hoshin being a set of forms and rules an and d sets the stage for the remainder of the workshop.
Good morning everyone. My name is [Your name], and I will be your instructor for the workshop. My objective is to assure that everyone understands the Hoshin Kanri process and and how to use use it to improve improve the way you manage. manage.
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Chart the course for your organization
Welcome everyone to the workshop.
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Introduce yourself and state that you will be leading the the workshop. workshop. Keep your introduction to just your name. You will have a chance to provide a more detailed personal introduction later.
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© PeteBabich, 4/20/2004 HoshinInternetWorkshopOverview
The primary objective of the workshop is to assure that everyone learns the basic principles of Hoshin Kanri and understands how to use those principles to improve the way they manage their organizations.
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Hoshin Workshop Leader’s Guide
Module 1
The general outline of the workshop is shown on this slide.
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Ag end a 1. Ov Overv ervii ew 2. Mission Mission and Key Act Activitie ivities s 3. Performance Mea Measures sures & BFPT BFPT 4. Vision Vision - Long Range Range & Annual Annual Pla Plans ns 5. Plan Plan Revie Review w 6. Implementation Implementation Tips Tips & WrapWrap-up up
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The workshop is divided into six modules. We will begin with introductions and a brief overview of Hoshin Kanri. In modules 2 & 3 we will discuss the concept of Business Fundamentals and how they are used to manage today’s business. In module 4 we will discuss Breakthrough Plans and how they are used to change the way we do business in order to meet the needs of the future.
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a. Int Introdu roducti ctions ons
© PeteBabich, 6/23/2004 HoshinWorkshop
addresses the the most important part Module 5 addresses of Hoshin Hoshin – the review process. Finally, module 6 will provide tips to help you implement Hoshin in your own organization.
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Each of you you has two documents. documents. The first is
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the Workbook. includes copies the Hoshin slides and exercises.It The second is theof Hoshin Handbook. Handbook. It is the text text for the workshop. We will primarily be using the workbook during the workshop and will only refer to the handbook, but you should make sure to read the handbook and keep it as your Hoshin reference. reference.
Also take care of housekeeping duties here. Inform participants of the location of the restrooms and your policy regarding breaks. Breaks can consume more time than allowed because people don’t return promptly. A good technique is that if you have a tenminute break, then resume the workshop exactly ten minutes after the break began. Participants will quickly learn that ten minutes means ten minutes.
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Inform participants when you will break for lunch and when you will end each day. Make sure that you keep these two schedule commitments, but maintain flexibility for all other schedule commitments.
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Hoshin Workshop Leader’s Guide
Overview
To get started, I want you to think about the way your organization currently does its business planning. What do you like and dislike about your planning process? Turn to page 5 in the the workbook workbook and record record your Likes and Frustration Frustrations. s.
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Planning Frustrations What bugs you about the way your organization currently does business planning?
Allow at least 3-5 minutes for this exercise. Walk around the room. You don’t need to see what people are writing just if they are writing. If people are not participating consider offering examples of frustrations. “We don’t have a focus.” “We have a plan, but nobody uses it.” “People aren’t held accountable.”
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Limit your list to twenty items. Total Quality Engineering
© PeteBabich, 4/21/2004 HoshinWorkshop
When you are sure most people have individually listed at least one or two frustrations, instruct each group to record their frustrations on their team’s flipchart. Suggest a process where each person offers offers one frustration iin n turn. Continue taking turns until people start passing and then enter free form discussion. Instruct the recorders to to keep their entire list on one page.
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Some people will ask if the things they like about their planning p process rocess should also be listed. Answer no, and explain that only frustrations frustrations motivate change.
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Allow team discussions during the list generation process, but don’t let them get bogged down. The most important behavior is to generate a list all of frustrati frustrations, ons, not to explain why each frustration frustration is important. When each flipchart looks reasonably full, inform the teams that they only have one minute remaining so make sure the important frustrations are listed.
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When time is up, ask each team’s spokesperson to read the list of frustrations for everyone to hear. Do not discuss the frustrations. At this point, all we are trying to do is make sure people are aware of the frustrations.
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Wrap up the exercise by explaining exp laining that participants’ current planning process is ideally designed to deliver the listed listed frustrations. If they like these frustrations then they should keep doing what they are doing. If they don’t like the frustrations, then they will need to change their planning process.
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The intent of the workshop is to introduce a planning process that will address the majority of the frustrations and not sacrifice the things they like.
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Point out that we will return to the list of frustrations and the end of the workshop.
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Hoshin Workshop Leader’s Guide
Module 1
Introduce yourself. Describe your background and experience using Hoshin Kanri, and how you came to be teaching this workshop.
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Introductions Wh o am I?
Your picture
Wh o ar e yo u ?
Name
Job
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After your introduction, go around the room and ask each person to state their name, job position, and years with the organization. If the group is small, you can also ask them to share their biggest planning related frustration.
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Years with organization Biggest planning frustration © PeteBabich, 4/21/2004 HoshinWorkshop
Take notes to remind you of the people with the most experience or particularly strong frustrations. You can call on them during the workshop to provide specific examples.
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Hoshin Workshop Leader’s Guide
Overview
Well, let’s get started. Here are the learning objectives for the Overview module. To follow along along with the lecture, please please turn to page 7 in the the workbook. workbook.
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Module 1: Learning Objectives
Describe how Hoshin is an integral part of TQM.
Discuss the history of Hoshin and the derivation of its name.
Briefly discuss each learning objective.
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Describe how Hoshin separate separates s daily management managem ent from breakthrough activity.
List the forms that make up a complete Hoshin Plan.
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© PeteBabich, 4/20/2004 HoshinWorkshop
Total Quality Management or TQM is an integrated system of management best practices that help organizatio organizations ns become more effective.
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Total Quali ty Management (TQM) TQM Models:
EFQM Excellence Model
Malcolm Baldrige Criteria for Performa Performance nce Excellence
Deming Prize
ISO9000
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TQM is documented in a number of organizational excellence models like the Malcolm Baldrige Baldrige Criteria Criteria for Performanc Performancee Excellence, Excellenc e, the Japanese Japanese Deming Deming Prize, and and the European Foundation for Quality Management’s Manageme nt’s Excellence Excellence Model. Model.
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© PeteBabich, 4/20/2004 HoshinWorkshop
The models are based on the processes and methods used by world-class organizations. The premise is that if other organizations adopted the same or similar processes, their performance performan ce would most most likely improve. improve.
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One of the simplest models of TQM is shown here. The model starts by understanding customers and their current needs and predicting predictin g future needs. needs. Informati Information on regarding competitors is also gathered.
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Customer Focus Employee Involvement
Planning Process
The customer and competitive situation feeds the organization’s planning process. The planning process process helps helps orchestrate orchestrate action. action. It identifies the key processes necessary to satisfy today’s customer and the processes that must be developed or improved to satisfy tomorrow’s customers.
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Process Improvement Total Quality Engineering
Process Management © PeteBabich, 4/20/2004 HoshinWorkshop
Process management includes the behaviors and techniques to assure that today’s customers are always satisfied and costs are managed to assure the
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organization’s financial health. 11
Hoshin Workshop Leader’s Guide
Module 1
Process Improvement includes the behaviors that systematically improve processes to to assure customers customers will will continue continue to be satisfied satisfied in the future. future.
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Employee Involveme Involvement nt includes includes the people related processes processes of of TQM. It includes management leadership and constancy of purpose, training and supporting employees, and empowering them to work together to achieve organization excellence.
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The net effect of all of these behaviors is to improve organizational results.
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This workshop will only address the planning part of the model, but all elements of the model are required for successful TQM implementation.
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The planning process begins with management answering some basic business questions as defined by Peter Drucker.
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Basic Business Que Questions stions
What is our business?
What should it be?
Management Management must decide decide what business business the organization is in (point to the first point).
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Management Management must also also determine determine what the organization will be in the future (point to the second and third points). The distinction between should be and will be is resource constraints.
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What will it be?
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Peter Drucker, 1974
© PeteBabich, 4/20/2004 HoshinWorkshop
It is important important to note, note, that senior managers are not the only only people that need to answer these questions. They must be answered at every level of the organization. Recognizee that you are Recogniz are the CEO CEO of everything everything you manage manage and down. Answering these questions is your responsibility too!
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Regardless Regardless of the planning planning process process used, effective planners tend to exhibit a few common behaviors.
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Effective Planning Techniques
Identify Critic al Few Obje Objectives ctives Evaluate Resource Resource Constraints
Establish Performance Mea Measures sures
Develop Deve lop Implementation Implementation Plan
Conduct Regula Regularr Re Review view Meetings Total Quality Engineering
© PeteBabich, 4/20/2004 HoshinWorkshop
Briefly discuss each of the behaviors. Stress that the most important behavior separating good planners from the rest is the fact that they “check on progress” or conduct periodic reviews.
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I am now going going to introduce introduce the concept concept of Hoshin planning planning and I think you will will see that it models these effective behaviors.
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Hoshin Workshop Leader’s Guide
Overview
Hoshin Kanri Kanri was developed developed in Japan, but it’s based on the US concepts of Management by Objective and the basic quality improvement model PDCA.
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Hoshin Kanri Developed to communicate company policy and Developed facilitate implementation implementation of the strategic plan.
Japan’s Deming Prize winners credit Hoshin as being a key contributor to their business success.
US companies like Hewlett-Packard and Xerox have also adopted the concepts of Hoshin Planning.
Hoshin meets the intent of item 2.0, Strategic Pla Planning nning of the Malcolm Baldrige National Quality Award.
Hoshin is a set of forms and rules that encourage employees to analyze situations, create plans for improvement, conduct perfor mance checks, and take appropriate action. Total Quality Engineering
© PeteBabich, 5/27/2004 HoshinWorkshop
Briefly discuss each of the bullet points based ba sed on your own experience and knowledge.
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When you distill Hoshin to its most basic elements, however, it’s a set of forms and rules. The forms provide the planning structure and the rules provide the process for using the the forms. If you use the the forms and and follow the rules, rules, it will walk walk you through through the planning process. process.
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The term Hoshin Kanri was first documented in 1965, in a paper by Bridgestone Tire Company that studied the planning behaviors used by Deming prize winners.
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English Translation Hoshin hoshin = a course, a poli cy, a plan, an aim.
Discuss the translation of Hoshin Kanri into English. Use the Hoshin Handbook as your reference.
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Kanri kanri = administration, management, management, control, charge of, care for.
Many early adopters of of Hoshin changed changed its name. The most most common translation is Policy Deployment, but most people now just call it Hoshin.
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© PeteBabich, 4/20/2004 HoshinWorkshop
Organizations like Hewlett-Packard and Xerox began using Hoshin back in the early 80s. It was considered company private by many organizations until the early 90s. Hoshin is now now in the public public domain domain and just about every every Baldrige Baldrige winner uses uses Hoshin or a Hoshin like process.
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As I mentioned mentioned before, before, Hoshin is based on the concepts of MBO and PDCA. Peter Drucker popularize popularized d MBO.
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Management by Objectives
Focus the entire organization on common goals.
Identify how each organization unit supports the goals. For each unit ob tain agreement agreement on annual objectives consistent with the common goals. Establish measures measures for u nit self-control.
Discuss the concepts of MBO.
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Point good people in the right direction and then let them go.
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© PeteBabich, 5/26/2004 HoshinWorkshop
While Drucker described the review process as an integral part of MBO, many people failed to conduct conduct reviews reviews and as a result, MBO didn’t didn’t work. Good people people were pointed in the right direction direction and they went in a hundred different directions.
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Hoshin Workshop Leader’s Guide
Module 1
By combining combining PDCA with MBO, periodic periodic review became an integral part of Hoshin.
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Plan-Do-Check-Act
Resolve Issues Standardize Gains Conduct Training Reflect on Lessons Learned
Evaluate Results Analyze Deviati ons
PDCA describes the basic process improvement model created by Shewhart and popularized populari zed by Deming. Deming. In simple terms terms it states; Plan what you want to do, go Do it, Check to see if the results were as expected, and Act on what has been learned.
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Examine present status Identify improvement areas Establish PMs& Goals Identify Root Causes Schedule Action
A
P
C
D
Conduct Training Implement Action
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© PeteBabich, 5/27/2004 HoshinWorkshop
Embellish the discussion with your own experience and knowledge of PDCA. For example, point out that the Six Sigma DMAIC model is a variation of PDCA.
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As we continue continue to learn learn about Hoshin, Hoshin, you will see many examples of PDCA.
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As I mentioned mentioned earlier, earlier, effective planners must focus on both today and tomorrow’s
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business. this effort, Hoshin is broken intoSupporting two key parts.
Two Basic Parts Business Fundamentals Fundamentals
Fundamentals focus on today’s Business Fundamentals business or “keeping the ship afloat.”
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Breakthrough Activities
Breakthroughs Breakthroughs focus focus on transforming transforming the organization to meet the needs of the future.
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© PeteBabich, 4/20/2004 HoshinWorkshop
80-90% of the organization organization’s ’s About 80-90% resources will be focused on Business Fundamentals and about 10-20% of the resources will be focused on Breakthroughs.
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Effective Hoshin users users have learned, learned,
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however, that nobody that nobody in in the organization should focus 100% on Business Fundamentals. They should always reserve a small amount of resources to “make things better.”
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Hoshin Workshop Leader’s Guide
Overview
This is the basic flowchart of the Hoshin annual planning process. Notice how it fits the PDCA model.
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External Data Customers Competitors Market Forces
Plan
Internal Data Long Range Plan People, Suppliers Last year’s results
Identify keyissues. Develop objectives, strategies, performance measure goals, and implementation plans.
Do Check
Yes
Results as expected?
No
Ac t
Ask participants to refer to page 68 in the Hoshin Handbook for a bigger picture of the flowchart.
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Work the plan
No
Time for Annual Review?
Ye s
Analysis of deviation
Analysis of results
Implement countermeasures
Document & standardize gains
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One of the most important features of the flowchart is is the fact that that lessons learned from from the previous year are a key input to planning for the next next year.
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© PeteBabich, 5/27/2004 HoshinWorkshop
Creating “Cycles of Learning” is one of Hoshin’s biggest biggest benefits. benefits.
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Earlier, I stressed stressed the importance importance of checking checking on progress as an essential behavior of effective planners. Hoshin integrates the PDCA model to conduct periodic reviews
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Key Elements of any Review P
Wh a att d dii d y o ou u p pll an an tto o a ac cc co o mp mp l is is h h? ?
D
Wh a att d iid d y ou ou a ac ctu ua a llll y a ac c c om om p pll is is h h? ? Why is there a difference between expected expecte d and actual results?
C A
What was learned and what are the implications for the future?
P
What do you expect to accomplish during the next period?
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and assure the plan stays on track. Briefly discuss the review elements.
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Unfortunately, we will spend the least amount of time in this workshop on the review process, but conducting reviews is the is the most important part of part of Hoshin.
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© PeteBabich, 4/20/2004 HoshinWorkshop
don’t review your your plan, then then you are If you don’t not using the Hoshin process!
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Hoshin is about about forms forms and rules so let’s look look at what forms are necessary for a complete Hoshin plan. plan.
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Hoshin Plans have fi ve key elements
The Business Fundamentals Fundamentals Plan documents daily work. Based on the company’s Mission, it describes what the business is is.. The Long Range Plan documents how the company expects to operate in the future. Based on the Company’s Vision, it describes what the business should be. be.
Briefly discuss each of the sets of tables that make up a complete Hoshin plan.
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The Annual Plan Plan documents the key activities that must be accomplished this year in order for t he company to achieve its Long Range Plan. Plan. Review Tables Tables compare actual results to expected results and document changes to the plans.
the remainder remainder of the workshop, workshop, we During the are going to look in more detail at each of these elements.
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Abnor malit y Tables docu ment “ out o f th e ordin ary” occurrences, and address problem root causes.
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© PeteBabich, 4/20/2004 HoshinWorkshop
Ask for and answer any questions.
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This is probably a good place for a break.
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Hoshin Workshop Leader’s Guide
