Impact of Hoshin Kanri on lean management: a case study in the food retail industry

Abstract

PurposeThis study aims to describe how the Hoshin Kanri (HK) strategic methodology facilitates implementation of lean management (LM), achieving greater integration of the strategic and operational levels, resulting in higher performance level.Design/methodology/approachThe authors conducted an in-depth case study of a top-10 Spanish food retail company with experience in HK and LM. First, the authors conducted 17 semi-structured interviews with the management team. Second, the authors analyzed all minutes from meetings of the key management entities for HK monitoring over a period of 3 years (2016–2019). Third, the authors evaluated the reports and key scorecards for the same period. Finally, authors visited the operating facilities and attended multiple team management meetings.FindingsThis study demonstrates that deploying HK creates the strategic ecosystem for operations management that facilitates successful implementation of LM. By sharing common cultural concepts, both methodologies generate faster transformation of the organization and thus push it towards its strategic objectives with more determination and better performance.Originality/valueThe lack of strategic alignment is one of the most important reasons for LM failure. Although HK is a strategic methodology that facilitates this alignment, a gap exists in the literature on the benefits of HK for implementation of continuous improvement initiatives such as LM. Our research shows how HK enables a participative connection between the strategic and operational areas of the firm that reinforces the fundamental elements of LM. Employee involvement, widespread use of plan-do-check-act (PDCA) methodology and multidisciplinary work (among other effects) make HK a key element for successful implementation of LM.