2What is Scientific Thinking? Goal is PERFECTION!!Eliminate any waste in value creation processesTherefore, Scientific Thinking is the PROCESS for WASTE:FindingUnderstandingEliminatingScientific Thinking is the PROCESS for improving the PROCESSES which create valueUltimately, scientific thinking is the process for continuous learning
3Examples of Problem Situations Correcting weakness in skill levels and development of training plansPurchasing new equipmentCost reduction activitiesTeam improvement activitiesImproving productivity and process flowAnnual planning and strategy development
6The Foundation of Hoshin Kanri PGrasp the SituationPlanAdjustCheckDo
7What is your problem Consciousness? What should be happening (WSBH)What is actually happening (WAH)Problem
8Problem Solving Image Countermeasures Breakdown Grasp the situation VagueBigConcernsWHY? WHY? WHY?BreakdownGrasp the situationActual vs. StandardActual vs. IdealGo and SeePoint of CausePoint where events cause abnormality5 Why AnalysisRoot CauseCountermeasures
9Grasp the SituationTake careful aim – ready-aim-fire vs. ready-fire-aimPotential value of the projectPotential cost of the projectCompare the ratios of various projectsDecide which problems to solve before searching for solutions – “Go See”Find the “True Problem” to get the most significant resultsClearly connect the true problem to primary performance measures
10Grasp the Situation Defining the Problem Make a Strong Case Actual current performance with some historical dataDesired performanceMagnitude of the problem as defined by the difference between current performance and desired performanceThe extent and characteristics of the problemMake a Strong CaseSymptoms of the problem provide supporting evidenceImportanceUrgencyTendency
11Grasp the Situation Clear Ownership of the Problem What, who, when, where (and how)Individual responsibility (not a group or team)
12Grasp the Situation Thorough Root Cause Analysis Good thinking, good productsPrinciplesEliminate preconceived ideasUse data to decide “where” to “Go and see”Analysis continues until we are certain of the root causeAlmost always multiple root causes – get them allFocus on the most significant root causesFind causes you can fix – don’t blame othersClearly defined root problems usually have clearly defined solutionsThorough analysis provides data which will predict the outcome of the solution
14Plan Countermeasures - Problems are never really solved Overall permanency of countermeasureShort-termLong-termLength of time to implementMinutes to hoursOne week to one monthDevelop consensus during the plan processPredict results
15Plan (Continued)Consider alternative solutions while building consensusBroadly consider all possibilitiesCriteria for good solutionsSimpleLow costWithin area of controlCan be implemented quicklyDevelop consensus
16Do Models Make a prototype Run a test case Simulations Run experiments (last resort!)Whatever it takes to be sure!Now we test our solutions to see what works bestAction frequently leads to identifying additional opportunities
17Check Verify Results All the way to desired performance measure 5 Therefores
18Check Did the countermeasure alter THE PROBLEM? Measure locally (effect on root cause)Measure globally (effect on THE PROBLEM)We are not focused on projects, just results
19Adjust (Reflect)Make necessary adjustments to solutions and the Action PlanStandardizeCreate stability in process with new processesEstablish standardized work with new processMonitor performance results of new processIdentify future stepsWhere is the next opportunity?
20Adjust Problem solving is a learning process We learn from mistakes, near successes, and clear successesExperimentation and simulation can minimize surprisesStand in the circle and observeEstablish stable operationsReflection**The learning process must achieve learning
21Practice ProblemMy friend comes to share every Christmas Eve with me. I live on the fifteenth floor. Unfortunately, he arrives without being announced by the doorman (who waits outside the elevator), puffing and panting from walking the last five flights. When he leaves, however, he gets into the elevator for the ride down. How can this be?
22Practice ProblemIt’s a mistake to hire amateurs, as the archaeologist found to his great distress. One of his new staff came running in one day, all excited. He had just paid a local a great deal of money for an extremely valuable coin. As he said, “I’ve never seen one like this before, and I’ve been looking in museums for thirty years. It’s a genuine Egyptian coin marked “100 B.C. – solid gold!” The director of the expedition sighed wearily and fired him. Why?
23What is Hoshin Kanri ho = direction shin = needle “policy, direction” kan = control, chanelling ri = reason, logic “management”Hoshin Management = Policy DeploymentToyota’s planning & execution system
24Hoshin Kanri (Policy Deployment) Keep all problem solving / continuous improvement activities coordinatedEnsure common goals and directionFacilitate consensus understanding and decision making
25A Touch of Fresh AirHoshin Kanri is the antidote for Conventional PlanningAnalysis + IntuitionIntuitionThe mood in the plantThe look on the customer’s faceThe supplier’s tone of voice
26The Foundation of Hoshin Kanri PGrasp the SituationPlanAdjustCheckDo
27PDCA in Lean Companies A P C D GTS P Daily Work Problem Solving A3 StrategiesPolicy DeploymentPAPGTSCD
28Annual Planning & Execution Cycle 9. Record in database (Book of Knowledge)1. Determine current state8. Year-end Review Perfection: Learning points next stepsCurrent Status A32. Determine future state7. Mid-Year ReviewCurrent Status A3PGrasp the SituationPlanAdjustCheckDo3. Prioritize needs & choose breakthrough objectives6. Micro Check & Adjust (weekly?)Dashboard4. Create one-page plan (A3) to achieve breakthrough objectives5. Deploy the plan Output – a Tree Diagram, action plans5. Each level implements its action plan
29Plan – Telling Compelling Stories The A3 report is the “currency” of Hoshin KanriOne-page storyboard on 11” x 17” paperCan you tell a compelling story?“Let’s talk about our business . . .”A3 ThinkingThe piece of paper is not the pointThe point is . . .
31Do – Deploying the Plan We can’t tell people what to do We need to translate our plans level by levelAnd engage people thereby (leads to empowerment)Mental models: What do you think? vs. Thou shaltKeep it simple
32“Catchball” Example: “Mr. Cho and “the beloved company” Refers to the horizontal and vertical give & take required to -Align activitiesTranslate & thereby engageObjectivesFocus & alignmentExample: “Mr. Cho and “the beloved company”
36Check – Making Problems Visible Check entailsSimple, connected meetings wherein the problems become visible to allException managementWhat are the hot spots?What are you doing about them?Mental model:Problems are nuggets to be mined – not garbage to be buriedImage:
37Checking as a System of Gears Plant Check / Adjust MeetingDepartment Check / Adjust MeetingTeam Check / Adjust Meeting
38Adjust – Solving Problems Adjust phase requires simple, shared problem solving approachSix sigma and other advanced approaches are needed for ~ 10% of problemsProblem solving requires support strategy
3910 Step Hoshin Kanri Process Assess Current StateEnvision Future StateIdentify Breakthrough ObjectivesIdentify Links to Daily ManagementCreate Breakthrough Strategies (A3)Deploy Plan through Catch BallImplement PlanReview Plan (micro check & adjust dashboard)Conduct Annual ReviewImprove Planning & Execution Process
40Hoshin Kanri Review A Policy Deployment Process Focuses on vital few breakthrough objectivesTells storiesChallenges conventional mental modelsEngages each levelProvides umbrella structure for PDCAChecks and improves planning processSupports organizational learning
41Tell the Story – A3 An A3 is a story explaining a: What’s in it for me? (WIFM)ProposalProblem-SolvingStatusInfoStory
44Chapters in the Problem Solving Story Thoroughly understand situation & Identify “THE SITUATION”Complete a detailed root cause analysisConsider alternative solutions while building consensusPlan-Do-Check-Act (PDCA)Plan: Develop an action planDo: Implement solutions rapidlyCheck: Verify results (improve “THE SITUATION”?)Adjust/ Reflect: Make necessary adjustments, standardize solutions, and reflect and learn. Start all over!
46Formatting Tips No “one” way Avoid excessive verbiage A picture is worth 1000 wordsUse familiar formats for particular informationUse consistent scales on charts for comparisonEliminate the “noise” or small issuesAvoid colorOverlay arrows to show logical flow