Hoshin Kanri Research Articles

Using Management Control Systems to Implement CSR Activities: An Empirical Analysis of 12 Japanese Companies

AbstractManagement accounting research regarding corporate social responsibility (CSR) implementation in Japan has yet to address the lack of empirical research examining the processes, styles and efficacy of communicating CSR activities. Thus, this study conducts survey interviews with 12 Japanese corporations to examine how Japanese companies implement CSR activities in terms of the formal control system (FCS) and informal control system (ICS) of management control systems (MCS). The results of these interviews identified how Japanese managers employ the MCS approach to implement CSR. Hoshin kanri, a non‐financial control component of the FCS, supports successful implementation of CSR under the organizational climate dictated by the ICS. This MCS approach is enhanced by three factors that reflect characteristics of Japanese management: employee commitment, a consensus decision making process and long‐term management. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

Organizing for Lean: autonomy, recursion and cohesion

Purpose – The purpose of this paper is to address the organizational implications of transformative Lean Deployment initiatives, leveraging the Viable System Model to understand what is needed organizationally so these initiatives can succeed and take root. Design/methodology/approach – The paper starts by pointing out how Lean practices presuppose and demand empowered, autonomous organizational units at all levels. It then highlights how Lean manages the resulting Recursive Organization of “autonomous units within autonomous units” through powerful cohesion mechanisms addressing the negotiation of goals and resources, unit-to-unit coordination and process monitoring – with tools such as Pull, Kanban, Hoshin Kanri, A3 and the Toyota Kata, supported by operational practices such as Visual Controls, Standard Work, etc. Findings – The Viable System Model was found to provide a valuable guide for articulating the organizational underpinnings of Lean deployments, including the effective, recursive distribution of deployment responsibility and authority at all levels, the identification of the right composition and reporting structure of implementation teams, and the role to be attributed to support organizations. Originality/value – The approach provides a framework for understanding the organizational implications and possible resistance to comprehensive Lean deployments, and for appropriately including the all-important organizational dimension in order to promote the success of these deployments. It is also hoped that the paper can contribute to a more holistic, integrative understanding of what it means for an organization to embark on its Lean journey.

The convergence of "Management by Objectives" and "Policy Management (Hoshin Kanri)", and its complementarity based on their heterogeneousness

The convergence of "Management by Objectives" and "Policy Management (Hoshin Kanri)", and its complementarity based on their heterogeneousness

Towards a Formal Model of the Lean Enterprise

Abstract In this paper, we describe the characteristics of the Lean Enterprise and make the case for modelling it in order to reproduce its successful practices more easily. The literature contains many good descriptions of the Toyota Production System and Lean in general, but no formal model that we can build upon. We then make the hypothesis that Lean is a Complex System, which can be modelled formally. We propose to follow the KREM model which comprises four components. The K (Knowledge) component includes domain knowledge about Lean in the form of several ontologies, the R (Rules) component is expressed by probabilistic rules, the E (Experience) component describes the practices (Kata) and the M (Meta-data) component describes the context of the application of Lean (different types of companies or cultural environments, for example). A practical example modelling the Hoshin Kanri process for setting objectives at the enterprise level demonstrates how to put this approach into practice.

The HOSHIN KANRI TREE. Cross-plant Lean Shopfloor Management

Shopfloor Management (SM) empowerment methodologies have traditionally focused on two aspects: goal achievement following rigid structures, such as SQDCME, or evolutional aspects of empowerment factors away from strategic goal achievement. Furthermore, SM Methodologies have been organized almost solely around the hierarchical structure of the organization, failing systematically to cope with the challenges that Industry 4.0 is facing. The latter include the growing complexity of value-stream networks, sustainable empowerment of the workforce (Learning Factory), an autonomous and intelligent process management (Smart Factory), the need to cope with the increasing complexity of value-stream networks (VSN) and the leadership paradigm shift to strategic alignment. This paper presents a novel Lean SM Method (LSM) called “HOSHIN KANRI Tree” (HKT), which is based on standardization of the communication patterns among process owners (POs) by PDCA. The standardization of communication patterns by HKT technology should bring enormous benefits in value stream (VS) performance, speed of standardization and learning rates to the Industry 4.0 generation of organizations. These potential advantages of HKT are being tested at present in worldwide research.

Hoshin kanri and critical success factors in quality management and lean production

Hoshin kanri (HK) is a management methodology commonly practiced in Japan. It co-evolved in the 1960s with concepts and practices associated with total quality management (TQM) and lean production as a way to focus the organisation, align goals and plans among all levels and functions, integrate objectives and strategies into daily operations, and review progress to facilitate learning. Although some respected sources consider HK as a component of TQM/lean production (QM/LP), for the most part HK has been relatively ignored by Western academics and practitioners. This paper surveys the empirical literature to show that, among the factors found to be related to successful implementation and sustainment of QM/LP initiatives, many of them are contained within HK methodology and practices. The paper discusses how HK addresses these factors, ponders the reasons for Westerners' ignorance of or lack of interest in HK, and offers suggestions for future research.

Lean Leadership – 15 Rules for a Sustainable Lean Implementation

Lean leadership could be the missing link between toolbox lean and a sustainable continuously improving organization. More and more enterprises realize that they have so far basically focused on the visible parts of lean production systems. Although process optimization with the various methods like kanban, 5S, SMED, FIFO and many more is very effective to achieve short term improvements, after a few years, the lean programs of many enterprises do not meet the expectations anymore. The common approach can be explained by using the 4P Model. It consists of 4 levels that are all necessary for a sustainable lean implementation. The levels are: philosophy (long-term thinking), process (eliminate waste), people and partner (respect, challenge and grow them) and problem solving (CIP and learning). All these terms are well- known. However, most enterprises merely focus on process. Eliminating waste in all processes has been preponderantly adopted, whereas the other 3Ps, the “invisible” parts of lean, are less easy to adopt but equally important for the sustainable implementation. Lean leadership addresses all 4Ps and provides a methodical system for the sustainable implementation and continuous improvement of lean production systems. It describes the cooperation of employees and leaders in their mutual striving for perfection. By now, many authors have identified the need for a lean leadership but only few holistic concepts exist. Especially lower and middle management lacks some clear advices and rules for lean leadership implementation. Therefore, some indicators for successful lean leadership were deduced from literature, study results, and practical experiences of lean implementation. The indicators were found in advices given on successful lean implementations, but particularly in mistakes and shortcomings. After reformulating the indicators into requirements for leaders, they were assigned to the five principles improvement culture, self-development, qualification, gemba, and hoshin kanri. These requirements shall help executives in realizing lean leadership.

Hoshin Kanri planning process in human resource management: recruitment in a high-tech firm

The Hoshin Kanri (HK) planning process is widely used in Japanese and Western companies for strategy planning and performance measurement in the manufacturing sector. Human resource management (HRM) plays an important role in business operations; HRM practices have a significant positive effect on implementing total quality management and on employee and customer satisfaction. However, HRM has always been considered reactive, uncoordinated, and unprofessional, delivering poor, slow, and ineffective services. This study presents the envision, identify, diagnose, prioritise, execute, and review (EIDPER) model, an extension of HK. EIDPER translates strategies into achievable actions to fulfil organisational objectives. We introduce a case study to illustrate applying EIDPER to the recruitment process of the HRM department in a high-tech manufacturing firm. The approach was successfully applied in the HRM department of the case company and effectively reduced hiring costs by US$360,000 in 5 years and improved recruitment cycle time by 40%. Managerial implications are also discussed at the end of the study.

Twenty‐first century benchmarking: searching for the next generation

PurposeThe purpose of this descriptive research article is to investigate current benchmarking practices (2001 to 2010) so as to determine new approaches which may transcend the traditional benchmarking model developed by Watson.Design/methodology/approachPrevious generations of benchmarking have been developed and utilized in the last century. Watson's generational benchmarking model predicted that global benchmarking would encompass future benchmarking. Watson's Strategic Benchmarking: Reloaded with Six Sigma links Six Sigma strategies with strategic planning and benchmarking.FindingsMost articles and dissertations reviewed indicate usage of existing benchmarking practices. The research also uncovered complementary approaches, including the Boyd Cycle, which underscores flexibility and speed, Six Sigma tools to implement significant business change decisions, the insights of Hoshin Kanri's philosophy of management, which fosters communication such that everyone in an organization is working toward a common goal, and “rapidmarking” of business improvements.Practical implicationsThese approaches, while complementary, do not represent a “new generation” of benchmarking.Originality/valueThe value of this article comes from making the connection between the very beginnings of benchmarking techniques and the latest techniques in use today.

The Levels of Using Strategic Management Tools and Satisfaction with Them: A Case of Five-Star Hotels in Turkey

The main purpose of this research is to determine the levels of using strategic management tools (SMT) and satisfaction with them in five star hotels in Turkey. In addition, the relationships between the characteristics of managers and organizations in terms of using the SMT and satisfaction with term are investigated. The sample includes 53 five-star hotels in Turkey. Results show that the levels of using SMT are high, but satisfactions with them are low. While the tool with the highest usage is customer relationship management, the tool with the lowest usage is Hoshin Kanri. On the other hand, while the SMT of Swot Analysis has highest satisfaction scores, the Search conference has lowest. Thus, a matrix of the levels of using SMT and satisfaction with term is presented. In this study, significant differences among organizations’ operation years and their decision making levels in terms of using SMT are determined. No significant differences are determined among all demographic characteristics in terms of satisfaction with the SMT.

The Effect of a Lean Quality Improvement Implementation Program on Surgical Pathology Specimen Accessioning and Gross Preparation Error Frequency

Few reports have documented the effectiveness of Lean quality improvement in changing anatomic pathology patient safety. We used Lean methods of education; hoshin kanri goal setting and culture change; kaizen events; observation of work activities, hand-offs, and pathways; A3-problem solving, metric development, and measurement; and frontline work redesign in the accessioning and gross examination areas of an anatomic pathology laboratory. We compared the pre- and post-Lean implementation proportion of near-miss events and changes made in specific work processes. In the implementation phase, we documented 29 individual A3-root cause analyses. The pre- and postimplementation proportions of process- and operator-dependent near-miss events were 5.5 and 1.8 (P < .002) and 0.6 and 0.6, respectively. We conclude that through culture change and implementation of specific work process changes, Lean implementation may improve pathology patient safety.

HOSHIN KANRI: POLICY MANAGEMENT IN JAPANESE SUBSIDIARIES BASED IN POLAND

This article presents the findings from a research project on the Polish model of Hoshin Kanri identified in Japanese subsidiaries operating in Poland. It begins with an overview of the basic models of the method described in literature. Next, the findings of the project are presented. They were established on the basis of the first, quantitative stage of research conducted in over 50 enterprises of this kind and focusing on the awareness and practical application of Japanese manage­ment methods. The case studies permitted to develop a meta-model of the method typical of Japanese companies operating in Poland.

The theory behind hoshin: a quantitative investigation of Toyota's strategic planning process

Many companies have attempted to imitate and copy Toyota’s strategic planning process more formally known as hoshin kanri in the implementation of lean manufacturing. Unfortunately, most observations of hoshin fail to quantify and accurately represent how such preferences are designed and integrated into Toyota’s strategic planning process. This study combines classical strategic planning theory and latent semantic analysis in the study and classification of Toyota’s hoshin kanri practices. This study shows that Toyota’s hoshin practices inherently have preferences towards resourceand knowledge-based theory which means that internal development of resources, especially human capital is of high importance. Interestingly, Toyota’s blend between emergent and deliberate strategic planning approaches creates a targeted creativity style that is difficult to establish without a highly structured problem-solving process. Toyota’s hoshin process is also well balanced between the agency aspects of cross-organisatio...

The applicability ofHoshin Kanrifor strategic planning and deployment in the public sector: A case study from NHS North East

The gap between strategy formulation and its implementation has been cited as one of the main reasons why strategies fail. This paper outlines the development and early implementation of a strategy deployment framework using Hoshin Kanri principles. Hoshin Kanri is a Japanese phrase that describes a systematic approach to deploying strategies to ensure alignment between strategy and implementation. These principles have been used very successfully by world-class private sector companies. The first part of the paper defines Hoshin Kanri principles, explores their history and how it is the critical success factor for many world-class organisations. This is followed by a case study description of how these principles were used to develop and implement the NHS North East's objectives, goals, initiatives and monitoring metrics framework.

Hoshin Kanri: The strategic approach to continuous improvement

Hoshin Kanri: The strategic approach to continuous improvement

Total quality management and Hoshin Kanri for construction organizations

Quality trends in construction projects have advanced from quality assurance to quality management under the ISO 9000 standards. Having achieved ISO 9000 certification and established a systematic approach to operations, the journey towards Total Quality Management (TQM) seems to weigh significantly on the ability of an organization to translate, integrate and institutionalize TQM behaviour into its business culture. More importantly, there is a need for organizational-wide management and a need to provide alignment of processes and people in the TQM environment. The Japanese concept of Hoshin Kanri, a form of policy management which prescribes a participative way of quality management, offers such leverage. Hoshin Kanri is a system for translating an organization’s vision and objectives into actionable and measurable strategies throughout the company, and is also a means by which TQM can be institutionalized. The concept of Hoshin Kanri provides a powerful tool for deploying the strategic direction of the organization. This paper presents the essential steps in deploying the Hoshin Kanri form of policy management using a construction firm as a case study. A framework for implementing Hoshin Kanri in the construction industry is also recommended for the first time.

Dynamic capabilities for strategic team performance management: the case of Nissan

PurposeThe purpose of this paper is to explain how hoshin kanri (policy management) is used as a higher order dynamic capability at Nissan. The paper also seeks to examine the role of top executive audits as part of the FAIR strategy execution process to develop core competences as part of team management.Design/methodology/approachThe research used semi‐retrospective ethnographic case summaries recorded by an active manager involved in the implementation process of the researched organizational phenomenon. These documented observations were triangulated against internally published company reports and those made public, and any externally published documentation about Nissan.FindingsThe paper finds that the use of a top executive audit (TEA) as a part of hoshin kanri, works as a high‐order dynamic capability according to Teece et al. . Hoshin kanri is premised on a strong reliance on teamwork, and the effectiveness of teams is a major contributory factor to organizational performance. It works well because TEAs are a special form of organizational audit of lower‐level operations against top‐level strategy (i.e. it is a strategic review framework).Originality/valueHow Nissan's business philosophies and methodologies are managed as core capabilities is explored. TEAs, as a key component of hoshin kanri, are examined as a strategic team performance management system.

Dynamic capabilities: top executive audits andhoshin kanriat Nissan South Africa

PurposeThe purpose of this paper is to examine the use of top executive audits (TEAs) as part ofhoshin kanri(policy management) at Nissan South Africa (NSA). It relates these to the emerging importance of core competencies in the resource‐based view of strategy to discuss “nested” sets of dynamic capabilities and superior performance.Design/methodology/approachThe case study of NSA is considered in terms of how the firm defines its core areas, evaluates its business methodologies and management philosophies, and conducts its diagnosis of management. This was through real time internal company observation during an intensive phase of organizational change and documentation supplied by a senior manager.FindingsThe style of TEAs at Nissan is related to the concepts of “core competency” and “dynamic capability.” The core business areas of NSA are organization‐wide competencies necessary for competitive success, and the management of these is shown to be most effective in the form of a TEA, which in thehoshin kanriform, is arguably a nested set of dynamic capabilities.Originality/valueThe paper concludes thathoshin kanriand TEAs are used at Nissan as a higher order dynamic capability to develo0p both core competences in key areas of the business, and core capabilities in terms of its corporate methodologies and business philosophies. The recovery of Nissan during the East Asian Crisis of the late‐1990s was the result of improved productivity practices, such as the uses ofhoshin kanriand TEAs, and not just of economic recovery.

Hoshin kanri and hoshin process: A review and literature survey

This research is based on a comprehensive survey and review of hoshin kanri (HK) literature. In the research, the lists of elements that characterize HK and elements that distinguish it from the conventional strategic planning are compiled and presented. The seven steps of the hoshin process developed by the GOAL/QPC Research Committee are extended to ten. Discussions of the results of the survey and review are based on these ten steps. This enables us to cover all the key elements of the Western-type or modern HK in our discussions. Many interesting findings are obtained from the research. Most of the findings relate to the shortcomings of modern HK. These shortcomings have their roots in the ways modern HK and its processes are generally presented in literature. Modern HK is greatly shortchanged in its presentations by Western scholars. Most published works on it and its processes fail to adequately cover all the key elements and characteristics that can give it superiority and advantage over the Japanese hoshin. The shortcomings are discussed alongside suggestions and recommendations for improvements.

Hoshin Kanri planning: the system of five alignments behind the Toyota Production System

The Toyota Production System (TPS), also termed lean manufacturing, is famous for its ability to improve productivity, quality, space utilisation, customer focus, suggestions and positive employee outcomes. It is also known to be difficult to imitate and implement. This paper explores the secrets to the successful implementation of TPS/lean production. The discovery that the TPS is grounded in a Hoshin Kanri planning system composed of five major alignments is reported. Characteristics of each Toyota alignment and linkages to US planning literatures are explicated. The US alignment literature is critically analysed using the Toyota framework. Examples from the field are provided. Implications for operations management practitioners, consultants and those attempting mass to lean conversions or lean launches are drawn. A call for research on a taxonomy of alignments is provided.