
This strategy planning methodology targets an improvement effort at a lower level that results in higher level organizational benefits for the organization. The structured Hoshin Kanri method is built upon four main components.
First Priority Component - which are customer-focused; improving customer satisfaction by offering improved quality.
2. Tsujin-in - reducing inefficiencies by optimizing current systems through reducing cycle times.
3. Ika in which, in terms of reducing costs by improving resource effectiveness through waste reduction.
These core components are at the center of the Hoshin Kanri methodology. They provide a methodical approach for planning an organizational vision. Hoshin Kanri methodology integrates all members of a company and improves production processes through a process of planning, control, and regular review and continuous improvement.
The methodology promotes long-term planning with an idea from a macro perspective. Ideas are sourced by operational staff. The employees are offered professional development to become more familiar with the executive leadership. The vision is aligned with the company's key strategic goals. It highlights strong communication practices with management strategies.
The Hoshin Kanri approach gives the opportunity management to include input from their operation team which helps share knowledge and ideas at every department. This provides a more productive action being taken at the organizational level.
In a company, after understanding the strategy with the Hoshin Kanri methodology, an action strategy is created. This plan is sent to all departments for implementation. Regular reviews take place to evaluate progress.
To start with a new Hoshin Kanri strategy or methodology, the approach that should be taken is deciding a clear vision that everyone interprets in the company. After approval, provide an system and rules for conducting and implementing the Hoshin Kanri methodology. Follow with funding that encourages employees to be problem solvers, and provide resources as needed to train.
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