Hoshin KanriHoshin Kanri - EOQ€¦ · Hoshin KanriHoshin Kanri ... why did it and how can we stop it in the future? ... lost their way temporarily and maybelost their way temporarily

Hoshin KanriHoshin Kanri

Becoming the best of the best and staying there!g y g

2 years ago Toyota appeared untouchable then followed the2 years ago Toyota appeared untouchable then followed the product recalls

*

BP was Master Class, then the Gulf Oil fiasco*

Rolls Royce engines equalled the best in the world then the TrentRolls Royce engines equalled the best in the world, then the Trent Engine failure

*

Then there was the case of the Staffordshire Hospital deaths*

th H i Al i i l d di tthe Hungarian Aluminium sludge disaster

Etc., Etc., Etc.,

All of these failures cost billions and all of them were

quality related why?quality related why?

We have had ISO 9000 for nearly 4 decadesWe have had ISO 9000 for nearly 4 decadessurely this sort of thing could not happen today so

why did it and how can we stop it in the future?why did it and how can we stop it in the future?

Let’s take another look at QualityLet’s take another look at Quality.

The ‘Toyota Way’ led the world

in the principles of quality managementin the principles of quality management*

The others operated highly structured quality management systemsq y g y

*

The Hungarian Aluminium company wasThe Hungarian Aluminium company was audited just two weeks before the disaster

and everything appeared fine!and everything appeared fine!

So what is wrong?

What can we do?What can we do?

Has ‘quality’ failed or are we missing something?

Is there something better than quality?

We do not think so

We think that in the case of Toyota they lost their way temporarily and maybelost their way temporarily and maybe

some of the others never found it!

Toyota had it right for decades That isToyota had it right for decades, That is how they came from obscurity in the

1950s to world leader in the late 2000s1950s to world leader in the late 2000s.but have admitted that they took their eye off the ball I think they are focused againoff the ball, I think they are focused again

now!

So what is the ‘right’ way?So what is the right way?

We believe that there has been too muchWe believe that there has been too much reliance on Quality Management Systems

Of d t thOf course, we need systems, they areessential

I live not so far from a nuclear power station and would not sleep at night if Istation and would not sleep at night if I did not think they had good systems!

But

It does not matter how much System youIt does not matter how much System you have, if people do not really care,

d th t it lf i fl d b d illand the system itself is flawed nobody willnotice it and nobody will fix it.

It is then a disaster waiting to happen

A d it ill!And it will!

Th t d t d d h b tThe trend over past decades has been tofocus entirely on systems and surveillance

Quality itself has become a sort of policing activity bound up in standards,activity bound up in standards, conformance, compliance, rules,

regulations, regulations regulations!regulations, regulations regulations!

If things have gone wrong then the d h b tremedy has been more severe systems,more auditing, more blame!

This is not the way!

Quality has become -yA police force activity parallel to production rather than part of it!

If people do not care if people just doIf people do not care, if people just do their job according to ‘regulations’ then no amount of quality control is going to makeamount of quality control is going to make

any difference.

Somehow we need to capture the heartsSomehow we need to capture the hearts and minds of our people,

How?

‘Putting Qualityg Q yat the heart of

the organisationthe organisation and people at the heart ofthe heart of

quality’

We also need some underlying beliefs

Each person is (or should be if we have trained them properly) the p p y)

expert in his or her own job

We need to

Harness the creativity, skills, jobknowledge of all the people in ourg p p

organisation to make us the best in our field (Corporate IQ!)our field (Corporate IQ!)

Typical Global High Performer usingyp

organisation Performer usingHoshin Kanri

Management

M t

Managementby process -

Highperformance

Managementby function -

Lowperformance

processoutput

performanceprocessoutput

We do not want to We want to look like this? look like this?

We need to move from this

Functional management – Departmentalgoals more important than corporate goals –when things go wrong blame the other departments –

Whose fault was it! it is a terrible waste of energy

H hi t

To this

Hoshin management - Corporate goals ARE Departmental goals – Ifthings go wrong – find what is wrong with the process

– attack problems not people!

‘Value’ Chain InterconnectionsMultiple interacting suppliers and sub supplier processes

h i i l th d t i l i t

Value Chain Interconnections

each comprising – people, methods, materials, equipment,environmental variation and measurements makes for a complex systemcomplex systemImagine each contributing to the VISION and each has its specific KPIs integrated into the Corporate wholep g p

Key Business Processes

Olympic hero Chris Hoy knightedy p y gas sport stars grab honours

Do we want to look like this?------------------- or this?

David Brailsford Olympic team y pcoach said: "Everybody in our y yteam dedicate their

lives to the pursuit of alives to the pursuit of adream - to win a gold medal. When they do getWhen they do getrecognised in this way it is a fantastic honour.”fantastic honour.

Beijing: 8 Gold, 4 Silver, and 2 Bronze medals!j g

David BrailsfordDavid Brailsfordalso said: “It was by attention

We considered everything even the smallest improvements that would

to detail that gave us the advantage over the other

give us a competitive edge. It was the accumulation of these small details that made usover the other

teams.small details that made usunbeatable.

in Toyota from a labour force of 40000in Toyota from a labour force of 40000people they have over 2,600,000

improvement suggestions per year ofimprovement suggestions per year ofwhich 96% are implemented!

(Th i t f il f diff t )(Their recent failure was for a different reason)

Quality Circle at work in Kraft Foods VenezuelaKraft Foods VenezuelaDecember 2008

Establish Vision and Mission SetEstablish Vision and Mission, SetCorporate goals and targets -agree overall programme, monitor and supportand support.

Agree and establish departmental goals participatedepartmental goals, participatein project teams, support Quality Circles.

Agree and establish section goals, participate in continuous improvement activities through Quality Circles.

Set the goal from BenchmarkingSuccessful presence in global and domestic p gmarkets as a leading organisation in quality,

technology, production and sustainable development

eor

man

ce

World class performers

ess

Perf

o performers

DDo not target where they

Bus

ine

Our Company

are now, target for where they will be in 3/5 years

time.

3/5 years

Our CompanyNOW

3/5 years

Problem Composition: 1987 and 1994(Industry Average Problems Per 100 Cars)

166Water Leaks

Steering and HandlingTemperature Control

BrakesTransmission 9

8766

This might be the target for today

110Wind Noise

Body

Interior 17

16

11

654

for today

Interior

Exterior Paint & Moldings

Squeaks & Rattles 18

17

17

14

855

Squeaks & Rattles

Engine

2010?

24

9

18

12

12

11

Electrical & Accessories2010?

2020?2819

9

1987 19941987 1994

Hoshin Implementation Outline Plan October/November November onwards

Steering Group meetingCustomers

Employees •“as is”Analysis

Set up project office and facilities

Organisation

Suppliers • Prioritiseopportunities• Establish

•Implement

Analysis•ProcessMap• B/mark best inIdentify key resources

Plan Steering Group meetings

g

etcDesign andinnovation

T h l

KPIs (use QFD)

• Plan for roll out and

• Review

• Update

• PDCA

best inclass

• Agree targetperf’mnceg p g

Brief and train combined teamsProcesses

Technology deployment

• Monitor Cost/ benefits

PDCAp

• IdentifyImprovementopp’s

Develop communication planProject Support

etcFinancepp

Brief managersCommunication

Change/program mgtMobilisation

Plan. Analyse. Develop, implement

MISSIONELEMENT

DRIVERS MEASURE CURRENTSITUATION

BENCHMARKSOURCE

TARGETTree diagram format - Key Performance Indicators

ELEMENT

SKILL TESTING

EDUCATION PROGRAMMES

STAFF APPRAISAL

SITUATION SOURCE

WORLD-CLASS COMPANIES


UNIVERSITIES AND COLLEGESKNOWLEDGE

MULTI-SKILLING

TRAINING BUDGET

COURSES

SUGGESTIONS




UNIVERSITIES AND COLLEGES

DEVELOP THE

SKILLS

PROJECTS

INNOVATION

TEAM WORK

PRESENTATIONS





KNOWLEDGE,SKILLS &

CREATIVITYOF OUR

TEAM TOGENERATE

INVOLVEMENTAND PRIDE

CREATIVITY

PRESENTATIONS

SELF-IMPROVEMENT

ABSENTEEISM

SICKNESS

DISPUTES

LOCAL COMPANIESLOCAL COMPANIES

LOCAL COMPANIES



AND PRIDEAS WE

CONTINUALLYIMPROVE OUR

BUSINESS.

INVOLVEMENT

PRIDE DISPUTES

LABOUR TURNOVER

RESPONSE TO JOB ADVERTS

PERFORMANCE IMPROVEMENT

SCRAP REDUCTION

LOCAL COMPANIES

LOCAL COMPANIES



WORLD CLASS COMPANIES/

PRIDE

SCRAP REDUCTION

IMPROVED DELIVERY

CUSTOMER COMPLAINTS

SAFETY - LOST-TIME ACCIDENTS

WORLD-CLASS COMPANIES/

WORLD-CLASS COMPANIES/TRADE ASSOCIATIONS

WORLD-CLASS COMPANIESAND ROSPA ETC

BUSINESSIMPROVEMENT

DHi David Hutchins Consulting GroupDOPRES5PAPER1

To be both the internal and the external customer's first choice by the identification anticipation and satisfaction of their real

Strategic Plan

MaximiseSAPCOs

importance to both

CUSTOMER

EMPLOYEES

To be both the internal and the external customer s first choice by the identification, anticipation and satisfaction of their realneeds, and to provide excellent after sales support. Customers also include stakeholders and interested parties.

To be seen as a caring employer to attract the best graduates and local people to join our highly trained workforce and to usethe knowledge skill and creativity of all of our employees to make us the best in our business

VisionRanked at top

10 global auto -parts supplier

enjoy 50% of its

Iran Khodro andthe Iran KhodroSupply Chainthrough theprovision of

Shared Services tocreate and grow

SUPPLIERS

the knowledge, skill and creativity of all of our employees to make us the best in our business

To assist our suppliers to become world class and loyal to our company through partnerships, long term business, caring fortheir needs, and listening to their skilled advice.

enjoy 50% of itsincome by

export

CorporateMission

Supplying

create and growprofit centres in

in FinancialManagement,

Training Services,Market Research,2nd Party Quality

PROCESSES To provide rapid high quality low cost response to the customers of all our key business, support and management processesthrough the minimisation of non added value activities

Supplyingmaterials, Parts,

autocombinations

throughestablishing and

extending a

y Q yAuditing

Supply ChainManagement, Call

Centre facilities

SAPCO also toff h

ORGANISATION

To become Fit, fast, lean and hungry through the application of best practice management skills. To constantly review themanagement system to remain in a state of continual improvement at a rate equal to or better than our competitors andensure that our management system is designed to optimise the whole business rather than improve one function at the

expense of others..

gcompetent world

class chainnetwork

suppliers tomeet the ends

of the IranKh d

offer theseserviices to both

local andinternationalorganisationsthrough the

development of its

TECHNOLOGY To continually evaluate and where appropriate, implement new technologies where they can be proven to optimise businessperformance in terms of cost, quality and delivery

Khodro group development of itsfacilities in Tehranand later in other

internationallocations.

FINANCE

DESIGN AND

To practice added value management accounting procedures to satisfy the needs of both its internal and external customers.

To keep the market looking to us for the latest and most innovative environmentally friendly products and services to meet theINNOVATION present and future needs of our customers, from conceptual design through to after sales support.

T i l l

ELEMENT MEASURE SUB MEASURE CURRENTSITUATION

IMPORTANCE FORACHIEVEMENT OF VISION BENCHMARKING TARGET

PERFORMANCE

Internal customers

Triple roleworkshops*

Process Analysis

Customer surveys

New - no data

New?

MailedQuestionairre-

Telephoneinterviews

Face to face

No data

No data

No data

HIGH

HIGH

MEDIUM

MEDIUM

MEDIUM

NO

NO

NO USE TRENDDATA

NO USE TRENDDATA

NO USE TREND

external customers

Warranty Claims

Product recall

interviewsKano Model

analysis

No data

No data

Data

Number of recalls/annum

Cost of recalls/annum

Data?

Data?

MEDIUM

MEDIUM

HIGH

HIGH

HIGH

DATANO USE TREND

DATA

AUTO MEDIA

AUTO MEDIA

AUTO MEDIA

To be both theinternal and the

external customer'sfirst choice by the

identification,anticipation and

satisfaction of theirreal needs, and toprovide excellentf l Fi t Ch i

Complaint data

Customer praise

Internationalmedia reports

OEM analysis oft d

Number ofcomplaintsNumber of

recorded incidentsNumber of positive

reportsNumber of

negative reports

I t i

Data?

Data?

No Data

No Data

N D t

HIGH

HIGH

HIGH

HIGH

HIGH

AUTO MEDIA

AUTO MEDIA

AUTO MEDIA

AUTO MEDIA

NO USE TRENDafter sales support.

Customers alsoinclude

stakeholders andinterested parties.

First Choice

Identification ofneeds

Anticipation ofneeds

customers andnon customers

Market research

Focus Groups

Trend analysis

Interviews

Multipleparameters

Number of teams

Market research

No Data

Data?

None

HIGH

MEDIUM

MEDIUM

DATA

NO

KOMATSU

Satisfaction of realneeds

After sales support

Combine withInternal and

external customerchoice surveys

Replacementavailability

User training

Analysis ofsurveys

Survey

Company TrainingSchool

Data?

Data?

HIGH

HIGH

AUTO INDUSTRY

ANY GOODSOURCEAfter sales support

Stakeholders

Repair time

Analysis of servicereports

Identify specificstakeholders

Local Communityneeds analysis

Field data

Field data

Check EFQM andISO 9001

Check EFQM

Data?

Data?

New?

Use score ifavailable

HIGH

HIGH

MEDIUM

MEDIUM

ANY GOODSOURCE

ANY GOODSOURCE

EFQM WINNERS

EFQM WINNERSInterested Parties needs analysis

Media and PRrelations Check EFQM

available

Use score ifavailable HIGH EFQM WINNERS

Can be Hoshin Planning

Correlation matrix

‘CUSTOMER RELATED MANAGEMENT’

HOUSE OF QUALITY

transferred to Staff objectives

Function/department/process

HOUSE OF QUALITY

To improve customer loyalty

j

Central Matrix rent

man

ce

get

man

ce

From(Relationships) C

urr

perfo

rm

Targ

perfo

rmtreeDiagram

Actions

Departments in Company orfunctions in own department

n co

ntro

l

teria

met

er

tatio

n

Mob

arak

eh

and

achi

eved

C t T t

Medical Productsdepartment

ring

serv

ices

and

pro

duct

ion

on rtatio

nng er

sup

port

s s es

tabl

ishe

d cr

it

ce o

f the

par

am

cust

omer

exp

ect

vel a

chie

ved

by

wee

n ex

pect

ed Customer: Trumpton

Hospital

Performance & In-process Measures En

gine

erS

ales

Pla

nnin

gP

rodu

cti o

Tran

spor

Pack

agin

Cus

tom

eAc

coun

tsP

revi

ous

Impo

rtanc

Leve

l of c

Act

ual l

ev

Rat

io b

etw

On time delivery 5 85%P i i f T h i l S i 2 100%

Promises kept

P d t li ti

35%70%

0.410 70

..

Provision of Technical Services 2 100%Prompt handling of complaints 4 80%Good quality (Physical Characteristics) 5 100%Suitable Price 4 100%

Product application

No of days

The product standard

Market price band

70%100%55%90%

0.701.250.550.90

.

..

.Effective communication 2 50%Provision of consultation 2 100%Packaging 4 100%Provision of credit 5 100%

No of meetings

No of consultation hrs

Packaging standard

Financial crediting

50%100%85%80%

1.001.000.850.80

.

..

.2 100%4 100%5 100%

100%85%80%

1.000.850.80Mission Element. ……………………………………………….…..

Customer focus

Department ……………………………………Date……………….……….

Name…………………………..Signature……………..…………….Position……………………

Endorsedby (Name)…………………….Signature…………………………...Position……………………

Oncology

Hassan G SupervisorHassan G

………………………………………………………………….……

KPI Measure Current Target

Performance Performance

Deliveries85% 100%

Kept promises

Planned completion

Surfacedefects

No of rejects

4% 0% Skills training

IMPROVEMENT

Multiple story boards for visible management)

IMPROVEMENT

Daily Performanceagainst Staff Objectives

Projectsselected from

Staff Objectives

Vision

Mi i

Management Reviewagainst Score Cards

ObjectivesMission

Policies GoalsKeyPerformance

Divisional Heads Policy

Indicators

Section Heads PolicySection Heads Policy

Story BoardsSelf Directing Work Groups Policy

DCHLINE\REV 1

Finally!Finally!Award achievement

We all seek recognition f hi tfor our achievements no matter how small.

Look what people will do to get a Gold Medal in the Olympic Games!the Olympic Games!

Global High8 features of Global High gPerformerPerformance

1 Top management involvement – not just Vector sum1. Top management involvement not justcommitment.

2. Clear ‘Vision’ from the top and clear policies for all business ‘drivers’

of energy

business drivers .

3. ‘Key Performance Indicators’ (KPI’s).

4. ‘Benchmarking’ against competitors and ‘best in l L k f h d hclass processes. Look after the process and the

product looks after itself!

5. ‘Champions’ nominated for major initiatives. D l t f l t ll l lDeployment of goals to all levels

6. Continuous Improvement at all levels + Lean Six Sigma

7. Self Directing Workplace improvement teams.

8. Attack problems not people.High ‘Corporate IQ’

Hoshin KanriHoshin Kanri - EOQ€¦ · Hoshin KanriHoshin Kanri ... why did it and how can we stop it in the future? ... lost their way temporarily and maybelost their way temporarily

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