Toyota Way Approach: Aligning Vision with Daily Operations

H-kanri which is commonly known as Japanese Strategic Methodology, is a strategy management methodology developed at Japanese Car Manufacturers in the 1950s. The term ‘Hoshin’ means ‘target alignment’ in Japanese. This strategy is often used in conjunction with the lean manufacturing strategies.

This strategy planning methodology targets an improvement effort at a lower level that results in higher level cost savings for the organization. The systematic Hoshin Kanri method is built upon four main components.

Streamlined Processes – which are customer-focused; improving customer satisfaction by offering better total quality management excellence.

Streamlined Efficiency – reducing inefficiencies by optimizing current processes through reducing production delays.

3. Ika in which, in terms of reducing costs by improving production effectiveness through waste reduction.

These main 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 system of planning, control, and regular review and continuous improvement.

The methodology promotes thinking ahead 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 management team. The vision is aligned with the company’s business objectives. It highlights strong communication practices with management strategies.

The Hoshin Kanri approach gives the opportunity management to include ideas from customers team which helps share knowledge and ideas at every level. 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 plan 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 focused 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 team members to be problem solvers, and provide resources as needed to train.