As we enter the fall months, manufacturing businesses are beginning to wind down on this year’s activities and starting to think about next year’s plans: the budgeting process, forecasting sales, etc. With this timing in mind, I wanted to encourage you to consider implementing Hoshin Planning as your Strategy Deployment process.
Before we dive into how it can help your business, let’s briefly discuss Hoshin Planning’s process. The Hoshin Planning process consists of three phases: Planning, Implementation, and Review; each phase consists of several steps. Here is a summary:
•Planning: In this phase, the organization generates long/medium-term objectives (3-5 years typically) for specific measures at the business or enterprise level. Some of the most common are revenue, market share, and/or profit; however, these measures are not limited to financial performance. Understanding the voice of the customer is key to generating long/medium-term objectives. These objectives are supported by annual strategies and improvement initiatives. Each initiative is assigned an owner. A few key metrics are selected to monitor the progress and success of these improvement priorities. In addition, there is a cascading step, called catchball, which leads to engaging all levels within the organization. Finally, baseline and targets are agreed upon and the planning phase is completed.
•Implementation: This phase consists of creating and implementing a plan that will achieve the improvement initiative. Here is where the Lean tools start to make their way into the strategic planning process. Tools such as Value Stream Mapping will help create action plans. I do recommend focusing on quarterly priorities, as opposed to the entire year’s priorities.
•Review: Certain checks and balances are created in order to stay proactive. As most of us know, we begin with a plan, but things are bound to happen throughout. These checks and balances are monthly reviews in which the metrics selected during the planning phase are reported, and countermeasures are generated when gaps are identified. In addition, implementation updates are provided by the initiative owner. Finally, an annual review of the entire process will help in self-reflection and finding ways to improve the process.
Here is a useful template for managing the Hoshin Planning Process. During the Hoshin Planning process, it is very common to use A3s as a method to communicate plans and updates.
Now that we have a better understanding of the process, let’s talk about five ways Strategy Deployment can help improve your manufacturing business:
1. Answer the question: Where are we going? When working with manufacturing organizations, it is very common to discover that employees are oblivious to management’s long-term plans. Hoshin’s engaging process will help bring visibility to your plans.
2.Alignment of activities: As a manager myself, whenever I wasn’t given direction for specific priorities, I would work on those things I found most critical to success. What if I was working on the wrong thing from an enterprise-level perspective? Hoshin helps create alignment among your team. so that everyone is pulling in the same direction.
3. Learn from your experiences: Hoshin’s reflection phase helps us engage in a self-discovery of gaps in our execution of Strategic Planning. As organizations become better at this process, they gain more control over the future of the business.
4. Impact your culture: The clearer and more transparent we are, the sooner employees understand that improvement is not about trying to cut jobs, but about growth. Employees, as key stakeholders, will feel a sense of belonging when you include them in the Strategic Planning process. This will foster a culture of collaboration.
5. Create a Lean-Thinking workforce: As employees learn the tools, and have awareness of the objectives, they will begin to identify and eliminate problems getting in the way of achieving your improvement initiatives.
These are some of the ways Hoshin can help your manufacturing business.
If you want to ensure your improvements give your manufacturing business the largest ROI and want to discuss how we can help, schedule a call.
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