connecting kata with hoshin kanri and true north
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Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Connecting KATA with Hoshin KanriIntroduction
Marek Piatkowski – January 2017
Thinking win, Win, WIN
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Introduction - Marek Piatkowski Professional Background
Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from 1987-1994
TPS/Lean Transformation Consulting - since 1994 Professional Affiliations
TWI Network – John Shook, Founder Lean Enterprise Institute (LEI) – Jim Womack Lean Enterprise Academy (LEA) – Daniel Jones CCM/CAINTRA – Monterrey, Mexico SME, AME, ASQ, CME
Lean Manufacturing Solutions - Toronto, Canada
http://twi-network.com
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Hoshin Kanri – True North
Improvement KATA
A3 Based Problem Solving
Strategy Deployment
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Hoshin Kanri – True North
ImprovementKATA
A3 Based Problem Solving
Strategy Deployment
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Hoshin Kanri – True North
3
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Strategy Deployment - Hoshin Kanri Hoshin Kanri provides a planning structure for bringing critical and
important processes up to the desired level of performance. Hoshin Kanri is a methodology that seeks to apply the Plan-Do-
Check-Act (PDCA) methodology to Strategy Deployment process throughout the Company
It provides a systematic approach to managing changes and improvements in the organization
Hoshin Kanri strives to provide management a methodology for creating consensus about fundamental changes in the organization
This is NOT something NEW - this is an improvement to your current way of planning and reviewing annual objectives
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Hoshin Kanri Process
Strategic Goals and Objectives
CurrentStatus
TargetConditions
ImprovementPlan
KPIs and Process Review
What is our Vision?
Where are we now?
Where do we need to be?
How do we get there?
Are we getting there?
HoshinKanri
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Strategy Deployment - Hoshin Kanri Hoshin Kanri provides a planning structure for bringing critical and
important processes up to the desired level of performance. Hoshin Kanri is a methodology that seeks to apply the Plan-Do-
Check-Act (PDCA) methodology to Strategy Deployment process throughout the Company
It provides a systematic approach to managing changes and improvements in the organization
Hoshin Kanri strives to provide management a methodology for creating consensus about fundamental changes in the organization
This is NOT something NEW - this is an improvement to your current way of planning and reviewing annual objectives
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Improvement Concept – The Deming Wheel
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Hoshin Management Basic direction alignment assured throughout the organization Involvement at every level Hoshin management aligns the activities of people throughout the
company so that the company can achieve key goals and react quickly to a changing environment
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Why are we introducing this? Because companies have problems achieving their annual
objectives Companies define “Success” only in financial terms Not all levels of the Organization are aligned with Company’s
Targets Not all employees aligned with the company’s vision and objectives Not all employees engaged in tasks which strive to achieve the
company’s main objectives – are they working on “Hobbies”? Structure of setting up objectives, reviews and activities is not well
defined and it is not standardized Not all employees have opportunity to participate in the planning
process, therefore there is a limited ownership and accountability Management planning and execution is not 100% effective
True North
Strategy DeploymentHoshin Kanri
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
You cannot argue with the Statistics 90% of well-formulated strategies fail due to poor
execution 85% percent of management teams spend less than one-hour per
month on strategy issues Only 27% of a typical company’s employees have access to its
strategic plan 92% of organizations do not report on lead performance indicators 60% of typical organizations do not link their strategic priorities to
their budget 66% of HR and IT organizations develop strategic plans that are
not linked to the organization’s strategy 70% of middle managers and more than 90% of front-line
employees have compensation that is not linked to the strategy Most devastating, 95% of employees do not understand their
organization’s strategy
Is this you?
Source:
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Step 1 - Company’s Vision and Strategic Objectives
Step 2 - Business Unit Strategic ChallengesStep 3 - Business Unit TargetsStep 4 - Departmental ChallengesStep 5 - Departmental Target Conditions and TargetsStep 6 - Departmental Improvement Plan
Step 7 - Execution of the Plan
Step 8 - Establishment of KPIs and KPI Review Process
Hoshin Kanri Process
ACT
DO
CHECK
PLAN
1. Hoshin Kanri – Strategy Deployment Planning process
Vision andStrategic Objectives
Development ofBusiness Unit Challenges
Interpretation ofBusiness Unit
Challenges and Targets
True North
Strategy DeploymentHoshin Kanri
Business Unit Challenges
Business Unit Objectives
President BU VP / Director
Plant Manager
Dept. Manager Dept. Staff
A3 Format
We have develop Strategy (Hoshin Kanri) for each Business UnitAnnual Business Unit Challenges (Objectives)
2017 Hoshin Kanri – Operations Strategy PlanCompany Strategic Objectives
• Our specific objectives that we must accomplis h this y ear• Our Cus tomers and our Employ ees are our future
1. Exceed customer expectations at every level.
2. Anticipating our customers’ needs and resolving them.
3. Make a reasonable profit which will allow us to continually invest in the development and growth of our people and our company.
4. Maintain the highest level of design and engineering possible.
5. Do it right, first and fast.
6. Establish and cultivate a training program to ensure quality product and service.
7. Hire, develop, and retain employees who are committed to our growth and customer satisfaction.
8. Communicate clearly, precisely and frequently with our customers and among our team.
Business Unit Challenges• What is a high level objec tive?• What is a desired result• What is the ideal situation?
1. Introduce better product to the market quicker (Objectives: 1,2,4,5)
2. Breakdown disconnects between Manufacturing, NPD and Sales and Marketing (Objectives: 2,5,8)
3. Improve stability and predictable performance in all Departments (Objectives: 5,6,8)
4. Energize our cost-reduction activities (Objectives: 3,5)
5. Reduce scrap and waste in all departments – find “Hidden Bank Accounts” (Objectives: 3,5,6,7)
6. Improve equipment availability for critical process(Objectives: 3, 5, 6)
7. Improve employee satisfaction – make Polar a desired employer in the area (Objectives: 5,6,7,8)
8. Involve all our employees in problem solving and continuous improvement activities (Objectives: 2,6,7,8)
Current Situation• Why is this a priority?• Do you have data to support?
2017 Strategy/Action Plan• Spec ific action steps to be tak en• How and When
2017 Targets• What? How muc h? By When?• Can it be measured by a Graph?
Leader Status ReviewEval.
= Behind schedule but still achievable by FY End= On target, on schedule X = Behind schedule but not recoverable by FY EndStatus Evaluation:
Review Date: April 25, 2017Presented by: Tom Kingston
NPD lead time < 6 monthsRevenue = $252 MillionEBIT = 5% (12.6 Million)
Cash Flow increase = $10 Million
Overtime < $1.2 MillionOperating Expenses < $2.3 Mil.Cost of Quality < $4.5 Million
Material Cost Reduction $2.1 Mil.
< $2.00/Unit in scrap and reworkInventory < $6.3 Million
100% Build-to-Schedule (BTS) 100% On-Time-Deliveries (OTD
Safety - ZERO Lost Time CasesAbsenteeism - < 3%Turnover Rate < 5% No Layoffs
New products miss industry need of customer design and air quality
2016 BTS Target = 90%, Actual = 62%,
2016 Scrap cost = $1.2 Million
Changeovers take anywhere from 40 minutes to 2 ½ hours.2016 OEE Target = 80%Actual = 57%
2016 Absenteeism Target = 5%, Actual = 7.2 %
2. Hoshin Kanri - Departmental Improvement PlanBusiness Unit VP
Plant Manager
Dept. Manager Supervisors Project
Teams
True North
Strategy DeploymentHoshin Kanri
Improvement Project A3 Project Leader creates a
PLAN portion of A3 for each project
Each A3 PLAN is approved by a Project Leader’s Coach
Plan of Activities – Project A3s
A3 Format
DepartmentalObjectives
Identify and prioritize improvement projects
Select: Project Leader, Project Coach and Improvement Team
List of projects and activities
A3 Format
Approved Projects and Activities – Plan
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Hoshin Kanri – True North
ImprovementKATA
A3 Based Problem Solving
Strategy Deployment
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Using the A3 Report to Align the Organization
An A3 Report contains objective facts, technical data and it shows a progress of a Plan - how a problems is being solved. It tells a story
But being technically “right” is only half the battle… A good A3 should engage and align the organization
It forces us to have structured discussion with all stakeholders in the process and create an acceptable solution that works
What really makes an A3 a “good one” is not the specific collection of facts and data that tell how I will solve this problem
A good A3 is a reflection of the dialogue that created it
Connecting Kata with Hoshin Kanri Introduction
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Two Types of Problems
44
CausedGAP
CreatedGAP
Target Objectives
Connecting Kata with Hoshin Kanri Introduction
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True North
Strategy DeploymentHoshin Kanri
Several times per weekSeveral times per weekSeveral times per weekSeveral times per weekSeveral times per weekSeveral times per weekSeveral times per weekSeveral times per week
3. Hoshin Kanri – Progress Review ProcessBusiness Unit VP Department Project
Leader CI Teams
True North
Strategy DeploymentHoshin Kanri
WeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeekly
Several times per weekSeveral times per weekSeveral times per weekSeveral times per weekSeveral times per weekSeveral times per weekSeveral times per weekSeveral times per week
Plant
Monthly
Monthly
Monthly
Monthly
Connecting Kata with Hoshin Kanri Introduction
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Project(Problem Solving)
A3 Template
Connecting Kata with Hoshin Kanri Introduction
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Example of a Project A3
Connecting Kata with Hoshin Kanri Introduction
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Hoshin Kanri – True North
ImprovementKATA
A3 Based Problem Solving
Strategy Deployment
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
DNA of Toyota Production System
October 1999
Connecting Kata with Hoshin Kanri Introduction
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TPS System Rules
Rule 4:
Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization
Rule 2:
Every customer-supplier connection must be direct, and there must be a unmistakable yes-or-no way to send requests and receive responses
Rule 1:
All work shall be highly specified (standardized) as to content, sequence, timing and outcome
Rule 3:
The pathway for every product and service must be simple and direct – flow
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
What is Hoshin Kanri methodology?
Hoshin is a system of A3 templates, forms and rules that provides structure to the planning process
It encourages (forces) employees to analyze situations create plans for improvements conduct performance checks and take appropriate actions
It is a methodology driven by data and supported by documentation
Hoshin Kanri is a Top-down methodology
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Core of Toyota Kata = Routines
Compact Simple
to learn to teach
Consistent Easy
to understand
to practice Time
Efficient
Connecting Kata with Hoshin Kanri Introduction
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Senior Management
Line Management
THE IMPROVEMENT KATA CONNECTSSTRATEGIC AND OPERATIONAL TARGETS
Connecting Kata with Hoshin Kanri Introduction
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Successive Improvement Activities (Kaizens) to achieve the Challenge
Challenge
1 week to 3 months
1 to 3 years
Distant
Process Level Value Stream Level Organization Level
The Improvement Kata ChallengeThe Challenge is a link between Process Level Improvements and Organizational Strategy
Connecting Kata with Hoshin Kanri Introduction
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THE ROLE OF THE COACH
Connecting Kata with Hoshin Kanri Introduction
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Kata is a routine you practice so it becomes a habit
Through practicing, the pattern of a Kata becomes second nature – done with little conscious attention – and readily available
An example is practicing to learn to drive a car. Once you know how to drive, you do not think much anymore about how to use the car's controls and instead you focus your attention on the situational aspects of navigating the road
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Practicing Routines
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
COAC
HING
KAT
A The Five Coaching Questions1. What is the Target Condition? (the Challenge)2. What is the Current Condition now?3. What problems or obstacles are preventing you
from achieving the Target Condition?Which oneare you addressing now?
4. What is your next step? ….Turn the Card over and start the PDCA cycle
5. When can we go and see what you have learned from taking that step?
Obstacle: Process/Operator:
http://w w w .truenorththinking.ca/
Con
duct
the
Expe
rim
ent
PDCA Cycles Record (Each row = one Experiment)
PLAN - what are we going to do
DO - what do you expect
CHECK - what happened
ACT - what did we learn
Connecting Kata with Hoshin Kanri Introduction
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How do you want to manage your True North?
If you wish to manage in a way that develops people to solve problems, accept responsibility and take initiative while aligning the organization…
How do you intend to do that? Do you have a process to help you with that task? To make it easy, or easier?
Hoshin Kanri – True North
Improvement KATA
A3 Based Problem Solving
Strategy Deployment
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
“If you want to teach people a new way of thinking, don’t bother trying to teach them.
Instead, give them a tool, the use of it will lead to new ways of thinking”
R. Buckminster Fuller was a 20th century inventor and visionary who did not limit himself to one field but worked as a 'comprehensive anticipatory design scientist' to solve global problems. Fuller's ideas and work continue to influence new generations of designers, architects, scientists and artists working to create a sustainable planet.
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Hoshin Kanri – True North
Improvement KATA
A3 Based Problem Solving
Strategy Deployment
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
Changing the World. One Transformation at a timeThis presentation is an intellectual property of W3 Group Canada Inc.
No parts of this document can be copied or reproducedwithout written permission from:
Marek PiatkowskiW3 Group Canada Inc.iPhone: 416-235-2631
Cell: 248-207-0416
[email protected]://twi-network.com
Thinking win, Win, WIN
Connecting Kata with Hoshin Kanri Introduction
Thinking win, Win, WIN
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