Hoshin Kanriis Critical in Deploying a True Company‐Wide ... Deployment (Hoshin Kanri) Process...

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© Copyright Productivity Inc 10/181

Hoshin Kanri is Critical

in Deploying a True Company‐Wide

Strategy of ExcellenceCatherine Converset – Senior Partner Productivity

Document confidentiel – Copyright Productivity Europe 11/20152

CONFIDENTIEL – Tous droits réservés, 2007

www.productivityinc.com

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>1979 First ever study mission in Japan— Norman Bodek met with Ohno et Shingo

— PRODUCTIVITY was born

>15 years cooperation with Ohno and Shingo, forming first generation consultants, developing training material, writing books. Shingo Doctor Honoris Causa and Shingo Prizein the USA.

>All major Japanese practitioners started with Productivity their journey to the West : Among them:

—NAKAJIMA and JIPM (TPM, Autonomous Maintenance)

—FUKUDA (CEDAC), IWATA (Flow Kaizen events) and Shingjitsu (flow management and process optimization)

Our Origins with Roots in The Legendary Toyota Production System

Document confidentiel – Copyright Productivity Europe 11/20154

CONFIDENTIEL – Tous droits réservés, 2007

Keeping Enterprise in Motion

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Working in All Manufacturing and Service Industry

Our people bring years of direct process improvement experience and a good business savy to a broad‐range of business practices….

Aerospace & Electronics

Automotive

Chemicals

Consumer Packaged Goods

Engineering & Construction

Financial Services

Food & Beverage

Industrial Manufacturing

Metals & Mining

Oil & Gas

Pharmaceuticals & Health Care


Our Value Proposition: Customised Consulting, Training and Support…

On site assessment

Lean and TPM implementation strategy

Policy Deployment (Hoshin Kanri)

Process improvement projects

Team and continuous improvement development

Design and implementation of specific Lean management system

Lean Leadership development

Support in building specific client resource

capabilities:

— Specific educational events

— Train the Trainers

— Lean leaders coaching

Management coaching and training

Audits and progress review

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A Long Experience in Training and CertificationIn Partnership With

Lean Manager Certification Manufacturing (LMAC)

Lean Manager Certification in Services (LMAC)

Lean Tool Awareness Certificate

Lean Primer for Service Processes (LPCS)

TPM Certification

Copyright Productivity 08/20168

www.productivityleanservices.com

Hoshin Kanri is Critical in Deploying a True Company-Wide

Strategy of Excellence

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Execs MiddleMgt.

LineAssoc.

71%

40%

3%

Source: CFO Magazine

Percentage of people whounderstand the strategy.

It is Difficult to Implement Strategy

The Kaizen Bubble Effect

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Too many projects

Long lead‐time for each project

Many non‐focused projects

Why did we decide to launch the project?

BENEFITS

HIGHLOW AVERAGE

High

Low

Aver

age

EFFORT



Most projectsare implemented in Operations

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But is this Lean?>You are able to produce a part in 24 hours, but it takes you two weeks to review the PO and process the order…

>or>You want to increase sales but the development of a new product is 6 months late…


Building a Lean Organization

Develop the capability to transform: • the input (information…)• into finished goods or services, as quickly as possible,with the minimal waste,with perfect quality and reliability

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Eliminate what prevents us from continuously doing

Right First TimeOn Time Delivery


Move From the Silo Thinking

QCD Customer objectives

SalesCustomer Service

R&D QualityMarketing

KPI’s: … KPI’s: …

Supply Chain Production

KPI’s: … KPI’s: … KPI’s: … KPI’s: … KPI’s: …

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CustomerQCD

Objectives

… To the Lean Thinking> In which all functions are connected to optimize the Value Streams

SalesCustomer Service

R&D QualityMarketing

New KPI’s: … New KPI’s: …

Supply Chain Production

New KPI’s: … New KPI’s: … New KPI’s: … New KPI’s: … New KPI’s: …



All functions, departments, processes and people must constantly improve

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Changing The Waythe Organization Works:

Policy Deployment (Hoshin Kanri)


Align the Organization

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Two dimensions

Business As Usual

Continuously Improve Processes and Focus on Customer Service

Achieve Strategic Initiatives

Build new processes/services/products


Monitor Progress

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How do you know you are progressing on the key issues?How many performance indicators do you follow?Are you measuring the right things?How do you see that projects are delivering?


Hoshin Kanri: the Definition

>Hoshin = vision

>Kanri = management

>Translation— Policy Deployment

— Vision Management

— Strategy Deployment

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Principles of Hoshin Kanri (Strategy Deployment)

From vision to daily work

Can every member of your organisation explain your strategic objectives?

Can they describe the link between their daily work and your strategic objectives?

How do we progress beyond our daily work?



The Hoshin Kanri Process

Aligning the organization

Following progress

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Business Model, Vision and Strategy

Level 0Executive committee

How much(Impact)

Strategic Actions

Target(How much)

Level 1: VP/Directors

and their teams

AS(What)

Initiatives (How)

How much(Target)

How much(Impact)

Level 2: Managers and team members

Initiatives(What)

Actions (How)

How much(Impact)

How much (Target)

KVD(What)

catchball

The Policy Deployment Process


We Use the X-Matrix to Help Building The Plan

STRATEGIC ACTIONS

KVD TARGETS

EXPECTEDRESULTS

Financial, market share, Customer‐focused

Social – Environmental.;.

What are the Key Value Drivers?

What are the targetresults?

What should we improve or achieve this year / on a 3‐year

horizon?

Impact of our actions

Activities for the current periodcorresponding with the Key Initiatives

The How?

Targets and milestones (dates) for completion ofeach Priority

How much?By when?

Get Focused

The What? Identify sponsors, leaders, and support personnel for eachInitiative

The Who?

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How much(Impact)

Strategic Actions

Target(How much)


and their teams

SA(What)

Initiatives (How)

How much(Target)

How much(Impact)


Initiatives(What)

Actions (How)

How much(Impact)

How much (Target)

KVD(What)

catchball

From Level 0 to Level 1

October – December


30

The result of catchball

> The result of catchball is team alignment at the operationallevel through the chartering, linking, and networking of teams

Warning:

Do Not Omit This Step

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How much(Impact)

Strategic Actions

Target(How much)


and their teams

SA(What)

Initiatives (How)

How much(Target)

How much(Impact)


Initiatives(What)

Actions (How)

How much(Impact)

How much (Target)

KVD(What)

catchball

From Level 1 to Level 2

October – December


32

Level 2 DeploymentMonitoring the plan and solving problems: Make strategy visible in the workplace

P O L I C I E S A N D O B J E C T I V E S M A T R I X

TEAM: Operations Divis ion Management DATE:Updated

#

15.0 P

14.0 P P P P

13.0P P

12.0P

11.0

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7.0

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5.0

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1.0P P P P P P P

STRATEGIC ACTIONS

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# 7 6 5 4 3 2 1 IMPACTS 1 2 3 4 5 6 7 8 9 10 11 12 13 14

1 200 Cash flow revenue FOCUS TEAM

2 TBC Op Cost Saving3 1st Quartile CSI4 TBC Card business case5 >300 Acquisition saving6 500 Ad hoc revenues7 ESI

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Reduc e SMR costs by 5% ye ar on yea r

Reduc e the cost of the t op 3 highest cost processe s by 20% in ea ch area.

Achie ve GS rat ing against all r isk cat egories and audit outcomes.Reduc e le ad time from customer commit ment to

activat ion t o achieve 200K cash flow benef it

Collect 100% of t he a uthorised tar iffsDefine a process for non-st andard requests and adhere to it

Reduc e by 30% t he defect rate for each product / servic e

Review and analyse employee surve y and build corrective act ion plans

Meet SLA expecta tions 100% for e ach segment

09-sept-08

Agree SLAs a nd KP Is with each segment

Design new cost effect ive processes for cardsHit the cr itical success factors for the implementa tion

of card processesImple ment 5S and Visual Pe rforma nc e management in all a reas

Improve ve hicle acquisit ion process cost s

Reduc e delays t o imple ment bene fit c apa bilit y by 20%


TEAM: Operations Division Management DATE:Updated

#

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13.0P P

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7.0

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5.0

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STRATEGIC ACTIONS

PO

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# 7 6 5 4 3 2 1 IMPACTS 1 2 3 4 5 6 7 8 9 10 11 12 13 14



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s

Reduce SM R cost s by 5% year on year

Reduce t he cost of t he top 3 highest cost processes by 20% in each area.

Achieve GS rat ing aga inst all risk c ategor ies and audit out comes.Reduce lead t ime from cust ome r commitment t o

ac tivation to achieve 200K cash f low benefit

Collec t 100% of the aut hor ised t ar if fsDefine a process for non-standard re quest s and adhere t o it

Reduce by 30% t he de fect rat e for each product/ service

Revie w and analyse employee survey and build correc tive action plans

M eet SLA expec tat ions 100% for each se gment

09-sept-08

Agree SLAs and KPIs wit h each segment

Design ne w cost effective processe s for cardsHit the cr it ical suc cess fact ors for t he impleme nt at ion

of c ard proce ssesImplement 5S and Visual Performance management in all areas

Improve vehicle acquisition proc ess costs

Reduce de la ys to implement benef it capability by 20%

A3- APP0 Matrix Level 2 HR

(specific)S

A # 4TEAM

ACTION PLAN

IMPROVEMENT AREA IMPROVEMENT TARGET / DESIRED FUTURE STATESLA's improvement

Incorporate project and business change programmes into resource planning Make sure that new ideas coming from other depts are discussed with DCC

ACTION TEAM

CURRENT STATE D

CC teamLack of visibili ty of small initiatives around the business, which creates extra work in DCC or difficulty to answer drivers. ACTION OWNERP

aul

ACTION PLAN PERFORMANCE MEASUREMENT

Actions Months

Who

11/08

12/08

01/09

02/09

03/09

04/09

05/09

06/09

07/09

08/09

09/09

10/09

11/09

12/09Obtain early warning from pricing regarding

new dealsP

aulPaul to get TAB minutes circulation list (weekly)

Paul

Understand impact of the changes on DCCP

aulPlan the activities / changes on how we can

manage the resources and the processP

aulFind/create incident log and implement it.

Joanna

Realign the process to reduce activation times for Minilease and Rental

Target:Establish process standards for Minilease

and RentalMeasurement

/ ReviewEstablish KPIs and measure lead time

performance for Minilease and Rental PERFORMANCE MEASUREMENT

Target: Measurement / Review

Level of achievement

Date: 29 october 08


(specific)S

A # 4TEAM

ACTION PLAN



ACTION TEAM

CURRENT STATE D


aul


Actions Months

Who

11/08

12/08

01/09

02/09

03/09

04/09

05/09

06/09

07/09

08/09

09/09

10/09

11/09


new dealsP


Paul





Joanna








Date: 29 october 08

Team action plans incorporated into team processesDaily team review

A3 Problem solving

Review of action plan achievement

Team processes and standards

Strategy achievement is a daily activity

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33

Monitoring the plan and solving problemsBuild a system



#

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14.0 P P P P

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5.0

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STRATEGIC ACTIONS

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# 7 6 5 4 3 2 1 IMPACTS 1 2 3 4 5 6 7 8 9 10 11 12 13 14



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09-sept-08








#

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7.0

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5.0

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STRATEGIC ACTIONS

PO

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# 7 6 5 4 3 2 1 IMPACTS 1 2 3 4 5 6 7 8 9 10 11 12 13 14



Mai

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nd

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09-sept-08







(specific)S

A # 4TEAM

ACTION PLAN



ACTION TEAM

CURRENT STATE D


aul


Actions Months

Who

11/08

12/08

01/09

02/09

03/09

04/09

05/09

06/09

07/09

08/09

09/09

10/09

11/09


new dealsP


Paul





Joanna








Date: 29 october 08


(specific)S

A # 4TEAM

ACTION PLAN



ACTION TEAM

CURRENT STATE D


aul


Actions Months

Who

11/08

12/08

01/09

02/09

03/09

04/09

05/09

06/09

07/09

08/09

09/09

10/09

11/09


new dealsP


Paul





Joanna








Date: 29 october 08

Regular team meetings at every level

Introduction of standard work for managers

« Go and see » activities

Simple Lean system audits

Systematic performance review for earlyproblem detection

System is key to reinforce Lean behaviours

Week Ending:

NVST delivery confirmed updated - 2 days from reciept from dealership

80% 99%

Service LevelAverage time to respond to service booking requests (mins)

60 37 minsAbandoned Rate

Rental vehicle to be delivered at time requested

99% 100%Not Ready %

Breakdown incidents to be repaired at roadside

80% 86%

SMR driver satisfaction survey 90% tbc Rental Booking Defect Rate

SMR utilisation 65% 66%SAP Error Rate (000)

VP utilisation 75% 69%

Number of Rectifies received and responded to within agreed service level

80% 84%

CostPreferred Vs nominated cost difference NVST

PSN %

SMR event savings £10.00 £16.67

Michelin utilisation 70% 84%

Productivity Units per FTE

Non network usage across all channels TBC TBCReduction in AHT of Rental booking calls (mins)

Dealer auction delivery process with preferred and nominated dealers

TBC TBC Online bookings (percentage)

Reduce leadtime for claiming rebates TBC TBC

5S audit score 5 5S audit score 5 5S audit score 5 5S audit score

Team meeting review 5 Team meeting review 5 Team meeting review 5 Team meeting review

PD and Visual Mgt board 5 PD and Visual Mgt board 5 PD and Visual Mgt board 5 PD and Visual Mgt board

Paul

Reduction in AHT of Rental boocalls

Increase Online bookin

SMR cost savings

Reduce leadtime on process with highest impact on service activation

OPERATIONS WEEKLY PERFORMANCE REVIEW

Key Improvements

Bob Nick

Team processes audit (monthly)

27/03/2009 Helen

KPI

SLA's

Quality

PD Action plan achievement (Key

Actions)

Week Ending:

NVST delivery confirmed updated - 2 days from reciept from dealership

80% 99%

Service LevelAverage time to respond to service booking requests (mins)

60 37 minsAbandoned Rate

Rental vehicle to be delivered at time requested

99% 100%Not Ready %

Breakdown incidents to be repaired at roadside

80% 86%

SMR driver satisfaction survey 90% tbc Rental Booking Defect Rate

SMR utilisation 65% 66%SAP Error Rate (000)

VP utilisation 75% 69%

Number of Rectifies received and responded to within agreed service level

80% 84%

CostPreferred Vs nominated cost difference NVST

PSN %

SMR event savings £10.00 £16.67

Michelin utilisation 70% 84%

Productivity Units per FTE

Non network usage across all channels TBC TBCReduction in AHT of Rental booking calls (mins)

Dealer auction delivery process with preferred and nominated dealers

TBC TBC Online bookings (percentage)

Reduce leadtime for claiming rebates TBC TBC

5S audit score 5 5S audit score 5 5S audit score 5 5S audit score

Team meeting review 5 Team meeting review 5 Team meeting review 5 Team meeting review

PD and Visual Mgt board 5 PD and Visual Mgt board 5 PD and Visual Mgt board 5 PD and Visual Mgt board

Paul

Reduction in AHT of Rental boocalls

Increase Online bookin

SMR cost savings

Reduce leadtime on process with highest impact on service activation

OPERATIONS WEEKLY PERFORMANCE REVIEW

Key Improvements

Bob Nick

Team processes audit (monthly)

27/03/2009 Helen

KPI

SLA's

Quality

PD Action plan achievement (Key

Actions)

Weekly Departmental Review

Weekly Divisional Review


Level 2 Deployment ‐Monitoring the plan and solvingproblems

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Regular Hoshin Kanri Review at Management Committee Level

> A new scorecardintegrating both:

—The Business As usual KPI’s

—The progressreview on the main projects and the related KPI’s

>Monthly / quaterlyreviews


Multi‐Level Mid‐Yearmeeting

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Hoshin Kanriis Critical in Deploying a True Company‐Wide ... Deployment (Hoshin Kanri) Process...

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Transcript of Hoshin Kanriis Critical in Deploying a True Company‐Wide ... Deployment (Hoshin Kanri) Process...