Hoshin Kanri: The Strategic Approach to Continuous Improvement

309 Pages·2008·3.46 MB·English

by  David Hutchins

Hoshin Kanri
The Strategic Approach to Continuous Improvement
David Hutchins
GOWER e-BOOK
Hoshin Kanri
This page has intentionally been left blank
Hoshin Kanri
The Strategic Approach to Continuous
Improvement
david hutchins
© David Hutchins 2008
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or
transmitted in any form or by any means, electronic, mechanical, photocopying, recording or
otherwise without the prior permission of the publisher.
Published by
Gower Publishing Limited
Gower House
Croft Road
Aldershot
Hampshire GU11 3HR
England
Gower Publishing Company
Suite 420
101 Cherry Street
Burlington,
VT 05401-4405
USA
David Hutchins has asserted his moral right under the Copyright, Designs and Patents Act, 1988, to
be identified as the author of this work.
British Library Cataloguing in Publication Data
Hutchins, David C.
Hoshin Kanri : the strategic approach to continuous
improvement
1. Total quality management
I. Title
658.4'013
ISBN-13: 9780566087400
Library of Congress Cataloging-in-Publication Data
Hutchins, David C.
Hoshin Kanri : the strategic approach to continuous improvement / by David Hutchins.
p. cm.
Includes index.
ISBN 978-0-566-08740-0
1. Total quality management. I. Title.
HD62.13.H883 2008
658.4'013--dc22
2007051242
Printed and bound in Great Britain by TJ International Ltd, Padstow, Cornwall.
Contents
List of Figures vii
Preface xi
Chapter 1 Hoshin Kanri – An Overview 1
Chapter 2 Creating the Vision 13
Chapter 3 Strategy and Tactics 19
Chapter 4 Driver Policies. Becoming Fit, Fast, Lean and Hungry! 31
Chapter 5 Driver Measures to KPIs 39
Chapter 6 Benchmarking 45
Chapter 7 Prioritising KPIs and Cost of Poor Quality 55
Chapter 8 Risk Management 67
Chapter 9 The Loose Brick 83
Chapter 10 Hoshin Policy Deployment and Control 93
Chapter 11 The Voice of the Customer 107
Chapter 12 Supply Chain Management 117
Chapter 13 Six Sigma 123
Chapter 14 Lean Manufacturing 143
Chapter 15 Process Analysis and Process Re-engineering 161
Chapter 16 The Principles of Continuous Improvement 171
Chapter 17 Quality Circles 185
Chapter 18 Business Management Systems 217
Chapter 19 Quality Function Deployment 245
Chapter 20 Education 263
Chapter 21 Suggestions for Performance Indicators 267
Chapter 22 Implementation Plan 277
Index 281
This page has intentionally been left blank
List of Figures
Figure 1.1 The four key elements of Hoshin Kanri 3
Figure 1.2 Process ownership 5
Figure 1.3 Non-Hoshin-style management – the worst case scenario 7
Figure 1.4 Comparison between extremes of management style 8
Figure 1.5 Comparative business performance 9
Figure 1.6 The Hoshin Kanri model with chapter numbers 10
Figure 2.1 Creating the Vision 13
Figure 3.1 Strategy development 19
Figure 3.2 Closing the gap 23
Figure 3.3 Headline results of internal interviews at OURCO 25
Figure 3.4 Headline results if supplier interviews at YOURCO 26
Figure 3.5 Summary Force Field analysis 26
Figure 3.6 Summary Force Field analysis of the opportunities for OURCO 27
Figure 4.1 Defining the Drivers 31
Figure 4.2 Fishbone diagram 35
Figure 4.3 Fishbone diagram with ‘Post-it’ stickers 36
Figure 5.1 From Measures to KPIs 39
Figure 5.2 A road map of how to progress from the Driver through to the KPIs 41
Figure 5.3 Identifying the KPIs 41
Figure 5.4 Selection Matrix 43
Figure 6.1 Benchmarking 45
Figure 7.1 Prioritising the KPIs 55
Figure 7.2 The FAP relationship 60
Figure 7.3 The fallacious Minimum Cost curve 61
Figure 7.4 The real effect of one competitor aggressively reducing Quality-Related Costs 61
Figure 7.5 Comparative costs – best and worst 62
Figure 7.6 The Hidden Factory concept 63
Figure 7.7 Some typical Quality-Related Costs 63
Figure 8.1 Risk Management 67
Figure 9.1 The Loose Brick 83
Figure 10.1 Hoshin deployment and control 93
Figure 10.2 The full Hoshin Policy Deployment model 95
Figure 10.3 The basic PDCA Cycle 100
Figure 10.4 The Division of Labour version 100
Figure 10.5 Participation in daily management 101
hoshin kanri
Figure 10.6 The full Management Control PDCA model 102
Figure 10.7 Hoshin Control 102
Figure 10.8 Theory ‘X’ and Theory ‘Y’ managers 103
Figure 10.9 Card system for KPI deployment 105
Figure 10.10 The ‘flagship’ approach to KPI deployment 105
Figure 11.1 The voice of the customer 107
Figure 11.2 The two arms of Customer Focus 108
Figure 11.3 Customer satisfaction 112
Figure 11.4 How profitability is achieved through customer retention 114
Figure 12.1 Supply Chain Management 117
Figure 13.1 Six Sigma 123
Figure 13.2 Dr Taguchi’s Quadratic Loss Function 125
Figure 13.3 Reduction in variation through the use of diagnostic statistical tools 126
Figure 13.4 The two arms of Six Sigma improvement 127
Figure 13.5 Attribute Data with mean of 7 per cent 129
Figure 13.6 Attribute Data with a mean of 3.5 per cent 130
Figure 13.7 Attribute Data with a mean of 1 per cent 130
Figure 13.8 Attribute Data charted for leaks in catheter bags 131
Figure 13.9 The data from Figure 13.8 stratified by welding head 131
Figure 13.10 A typical well-centred histogram 132
Figure 13.11 Histogram of average lengths of bandage 133
Figure 13.12 Montage of steel works 136
Figure 13.13 Statistics training kit 138
Figure 13.14 Exhibition by project teams 139
Figure 13.15 Relationships diagraph 139
Figure 13.16 The chief executive taking an interest 140
Figure 13.17 Recognition awards ceremony for completed projects 141
Figure 14.1 Lean Manufacturing 143
Figure 14.2 Single Minute Exchange of Dies (SMED) 155
Figure 14.3 The Toyota ‘house’ 156
Figure 14.4 A non-Jidoka system 157
Figure 14.5 Stoppage at operation ‘C’ 158
Figure 14.6 Use of Jidoka 159
Figure 14.7 Example of Andon-type display system 159
Figure 15.1 Process Re-engineering 161
Figure 15.2 The complexity of processes 162
Figure 15.3 Process Mapping 165
Figure 15.4 Posting to the wall 166
Figure 15.5 Critical Examination 167
Figure 15.6 Identification of possible causes 168
Figure 16.1 Continuous Improvement 171
Figure 16.2 Random and residual failures 174
Figure 16.3 Continuous Improvement of residual performance 175
Figure 16.4 Keeping a record 177
Figure 16.5 Road map for project-by-project Continuous Improvement 179
Figure 16.6 Quality Circles problem-solving road map 180
Figure 16.7 KPI perceived behaviour 181
Figure 16.8 KPI actual behaviour 181
Figure 16.9 KPI variation 182
viii
list of figures
Figure 16.10 Variation about a mean value 182
Figure 16.11 A situation where variation has been reduced and the mean lowered 183
Figure 16.12 Reduction of the mean and reduction in variation 183
Figure 16.13 This is typical of Attribute Data situations 183
Figure 17.1 Quality Circles 185
Figure 17.2 Pareto diagram 198
Figure 17.3 Cause and effect diagram 199
Figure 18.1 Auditing Hoshin Kanri 217
Figure 19.1 Quality Function Deployment 245
Figure 19.2 External key issues 246
Figure 19.3 Affinity Diagram 249
Figure 19.4 Affinity Diagram detail 249
Figure 19.5 Tree Diagram 250
Figure 19.6 Tree Diagram example 251
Figure 19.7 The Kano Model 252
Figure 19.8 The Kano Questionnaire 253
Figure 19.9 Kano Evaluation 253
Figure 19.10 Kano Analysis 254
Figure 19.11 Feasibility analysis 255
Figure 19.12 The House of Quality 256
Figure 19.13 ‘The War Room!’ 256
Figure 19.14 Assigning responsibilities 257
Figure 19.15 The Arrow Diagram 258
Figure 19.16 Chart data 259
Figure 19.17 Critical Path Analysis 259
Figure 19.18 Completed process decision programme chart 260
Figure 20.1 Education 263
Figure 22.1 Implementation Plan 277
Figure 22.2a Typical activities for year one in bar chart form 278
Figure 22.2b Typical activities for year one in bar chart form 278
Figure 22.3 Typical activities for next 2 years successively 279
Figure 22.4 Typical activities for next 2 years successively 279
ix