What is Hoshin Kanri?

The Japanese word Hoshin means: a course, a policy, a plan, an aim. 

The word Kanri means administration, management, control, charge of, care for. 

Hoshin Kanri (HK) is a cyclic planning and management concept from Japanese origin. It is applied at two levels:

1. The strategic planning level. A small number of key long-range corporate objectives are planned systematically. They are called Breakthrough Objectives, and typically last 2 to 5 years with little change. They are directed at achieving significant performance improvements, or at making significant changes in the way an organization, department or key business process operates.
2. The day-to-day level. Most of the time in an organization must be devoted to keeping the business running. Carrying out the value-added activities of the key business processes, which fulfill the purpose of the organization. These day-to-day Business Fundamentals must be monitored on a daily basis in all parts of the organization. This is how the process owners are able to take real-time corrective action for continuous process improvement (Kaizen)

The two-pronged Hoshin Kanri approach is considered one of the pillars of Total Quality Management philosophy. 

The method can also be thought of as the application of the Deming Cycle. 

Assumptions of the Hoshin Kanri Concept

• The best way to obtain the desired result is to ensure that all employees in the organization understand the long-range direction and that they are working according to a linked plan to make the vision a reality.
• There are fundamental process measures which must be monitored to assure the continuous improvement of the key business processes of the organization.
• Breakthrough activities can only really be carried out when the business fundamental activities are under reasonable control.

Steps in Hoshin Kanri. Process

1. Annual policy and medium- to long-term policy.
2. Basic company philosophy and quality policy.
3. Converting methodological policy into objective policy.
4. The composition of policy.
5. Two deployment styles of target – top-down and bottom-up.
6. Target deployment and “catch-ball”. A discussion process before policy is finally decided, wherein the policy ball (draft policy) is thrown back and forth between top and middle managers before a final decision is made.
7. Top management internal quality control audit.

Usage of Hoshin Kanri Planning

• Long-term strategic planning with the application of TQM principles and techniques.
• Developing shared strategic goals.
• Continuous organizational improvement.