Hoshin Planning

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What is Hoshin Planning?
Hoshin Planning is a system. Originally developed in Japan, and further improved in the U. S., Hoshin Planning enables organizations to achieve strategic breakthroughs. It is a component of the TQM system that facilitates strategic thinking and integrates the development of an implementation plan targeted to achieve a key organizational breakthrough.

Its key elements are:

• A planning and implementation process that is continuously improved throughout the year (e.g., via a Plan-Do-Check-Act [PDCA] Cycle).
• Focus on key systems that need to be improved to achieve strategic objectives
• Participation and coordination by all levels and departments as appropriate in the planning, development, and deployment of yearly objectives and means
• Planning and execution based upon facts
• Goals and action plans that cascade through the organization based upon the true capability of the organization

What Are the Benefits of Hoshin Planning?

• Creates an established process to execute breakthrough year after year
• Creates commitment to both the direction and implementation paths chosen
• Increases interdepartmental cooperation
• Draws upon and reinforces the Plan-Do-Check-Act Cycle (PDCA) in monthly progress reviews
• Creates a planning and implementation system that is responsive, flexible, yet disciplined
• Gives leadership a mechanism to understand the key problem areas in a company
• Creates quicker and more accurate feedback loops
• Provides a common focus throughout the organization

How Does the Hoshin Planning Process Work?
Traditional management approaches accept the fact that some managers will execute well and others will not. Hoshin Planning provides methods that eliminate at least some of the natural manager-to-manager variability. In order to ensure that the execution of this process is consistent with TQM, there are two sets of tools that participants utilize:

Seven Basic Quality Control Tools

• Check Sheet
• Pareto Chart
• Run Chart
• Cause & Effect Diagram
• Scatter Diagram Matrix Diagram
• Histogram Process
• Control Chart

Seven Management and Planning Tools

• Affinity Diagram
• Interrelationship Digraph
• Tree Diagram
• Prioritization Matrices
• Decision Program Chart (PDPC)
• Activity Network Diagram