The Hoshin Kanri method tries to get each and every employee pulling in a similar direction and at the same time. It attains this by aligning the aims of the company (Strategy) with the plans of middle management (Techniques) as well as the work performed by all staff (Operations).

What Is the Hoshin Kanri Method

Hoshin Kanri method which is also known as Policy Deployment is a technique for making sure the strategic aims of a company generates progress and actions at each and every level within that company. This removes the waste coming from unreliable direction and inadequate communication.

The following steps outline the Hoshin Kanri method and how you can implement it within a manufacturing plant or any other business to increase efficiency and reduce cost.

Step 1 – Set up Organizational Vision

  • What is your present state with regards to your vision, business planning procedures and execution engine?
  • What policies and processes are generally in place to develop and deploy objectives?
  • What is the organizational structure and also daily management system?
  • What are the present long-term plans?
  • What are your current vision and mission statements?

Step 2 – Build up Breakthrough Objectives

Breakthrough objectives are very important improvements that your organization need to expand, but will take three to five years to accomplish. To develop all these, we make use of various tools to determine growth opportunities, which includes the four quadrants of growth which is an adaptation of the Ansoff Matrix. Using this model, we consider consumers and also non-consumers, those who are presently making use of your product or service and those that aren’t against existing jobs and also new jobs so as to outline expand objectives in every area.

Step 3 – Build up Annual Objectives

What exactly will you really need to accomplish this year so as to attain those three- to five-year breakthrough objectives? To illustrate, if the breakthrough objective is to “achieve industry major closing time,” then an annual objective could possibly be “Ninety eight percent of loans closed in thirty days.”

Step 4 – Deploy Annual Objectives

How can you transform those breakthrough objectives into workable goals and objectives at the departmental level? First of all, you should build top level improvement priorities and then apply metrics to them. Then, you should create business specific second and third level goals to improve that attach straight to the top level priorities. Generally, you are should cascade right down to create total alignment all through the entire organization. Each level goes down into a lot more detail to where you are viewing the product or shipping it. This alignment makes people focused and also combines various departments, ensuring everything across the whole company aligns back up to the strategic objectives.

The Hoshin Planning Matrix or X matrix captures the objectives and even cascading priorities. Additional equipment, which includes detailed action plans, overview reports as well as value stream maps also assist in determining improvement opportunities and managing progress toward accomplishing goals.

Step 5 – Implement Annual Objectives

This is where improvements are carried out, making use of the suitable problem solving method. The Lean techniques Group’s five-step methodology for performing Kaizen events SCORE (Choose, Clarify, Organize, Operate, Examine) provides an awesome system for getting teams all together to make improvements. The SCORE methodology is included in A Team Leader’s Manual to Lean Kaizen Events. Apart from SCORE events , further problem solving methods may possibly include innovation projects , capital improvement projects , Lean Six Sigma DMAIC projects and just-do-its.

Step 6 – Monthly Overview

How prosperous is the organization in meeting the action plan deliverables? What corrective measures are necessary for those that are behind? A monthly overview fosters a culture of accountability as well as actions by checking out development towards acquiring annual improvement objectives.

Step 7 – Annual Overview

Finally of the annual cycle, a complete overview of the year’s objectives demonstrates how far ahead or behind the organization is against the mentioned objectives and exactly what adjustments should make to the next cycle.


The Hoshin Kanri method can be used in any business to align activities and get everyone working on actions moving the company in the direction defined by its strategy. The result is in a more efficient business with less cost on waste.