IENG 451 Planning Functions

Responsiveness Customer Satisfaction Cost + Quality +Dependability + Flexibility + Time + Service 6 Dimensions of Competition Structural Prerequisites Continuous + R&D + Advanced Tech. + Integration Improvements People & Systems Customer Driven Strategy

Planning Functions Operational – How do we manage day to day Financial – How do we allocate resources Project – How do we achieve a specific goal Strategic – What do we want to be when we grow up

Problems Unrealistic goals Goals are arbitrary Inadequate focus Planned activities are not regularly reviewed Data is over analyzed Lack of communication; vertical and/or horizontal

Mission & Strategy Def: The corporate mission outlines a firm’s values, intended markets and product, broad goals and objectives, core competencies, and strategic capabilities. Def: The corporate strategy states how a firm will achieve its goals and objectives

What is Strategy? Distinguishing strategy from tactics: – Strategy is the overall plan for deploying resources to establish a favorable position. – Tactic is a scheme for a specific maneuver. Characteristics of strategic decisions: – Important. – Involve a significant commitment of resources. – Not easily reversible.

Effectiveness and Efficiency Leaders Doing Right Things IneffectiveEffective Inefficient Efficient Managers Doing Things Right Death (fast) Success Death (slow) Survival

Managing Complex Change ConfusionSkillsIncentivesResourcesAction Plan Change VisionIncentivesResourcesAction Plan VisionSkillsIncentivesResourcesAction Plan VisionSkillsResourcesAction Plan VisionSkillsIncentivesAction Plan VisionSkillsIncentives Resources Anxiety Gradual Change Frustration False Starts

Strategic Process Mission & Strategic Goals Competitive Analysis * Strengths * Weakness * Opportun * Threats Specific Strategies * Corporate * Business * Functional Carry Out Strategic Plans Maintain Strategic Control Assess Environmental Factors Assess Organizational Factors Strategy FormulationStrategy Implementation

One of the Tools Competitive Analysis SWOT – Strengths – Weaknesses – Opportunities – Threats

Macroprocesses Juran – anatomy of macroprocess does not match that of the functional organization – Functional goals often at a heavy price of macroprocess – There should be a clear responsibility for macroprocess Inspect Customer

Forced Choice Model Organization Position Mission Objectives Strengths, Weaknesses Forecast Operational needs Major Future Programs Environmental Assessment Economic Environment Key regulatory issues Major technology forces Opportunities, threats Competitor strategies Strategic Options Action Plans Contingency Plans

Hoshin Kanri or Policy Deployment The Company develops a year plan The Senior Executives develop the current years objectives. Catchball occurs – The process is interactive – Teams report up – Management delivers feedback

Hoshin Planning

Elements of Hoshin Planning Plan-do-check-act Nemawashi Catchball Control department A3 thinking

Elements of Hoshin Planning Plan-do-check-act – Macro, 3-5 yrs, senior management – Annual, operating managers Nemawashi Catchball Control department A3 thinking

Elements of Hoshin Planning Plan-do-check-act Nemawashi – Process of consensus building that creates alignment – Stakeholders; management, workers, customers Catchball Control department A3 thinking

Elements of Hoshin Planning Plan-do-check-act Nemawashi Catchball – Company develop a vision and toss to senior mgmt – Sr. mgmt translate vision to hoshins and toss back – Give and take until consensus is reached Control department A3 thinking

Elements of Hoshin Planning Plan-do-check-act Nemawashi Catchball Control department – Breakdown functional silos – Control dept., quality, would coordinate cross- functional activities A3 thinking

Elements of Hoshin Planning Plan-do-check-act Nemawashi Catchball Control department A3 thinking – One page story communication tool – Hoshin planning A3 – Problem Solving A3 – Proposal A3 – Current Status A3

4 phases of Hoshin Planning Hoshin generation Hoshin deployment Hoshin implementation Final evaluation

4 phases of Hoshin Planning Hoshin generation – Eg; we will reduce defect rates by 20% Hoshin deployment Hoshin implementation Final evaluation

4 phases of Hoshin Planning Hoshin generation – Eg; we will reduce defect rates by 20% Hoshin deployment – Here’s how we can achieve this goal Hoshin implementation Final evaluation

4 phases of Hoshin Planning Hoshin generation – Eg; we will reduce defect rates by 20% Hoshin deployment – Here’s how we can achieve this goal Hoshin implementation – Activities required to implement hoshin; e.g.; defect data collection, analysis Final evaluation

4 phases of Hoshin Planning Hoshin generation – Eg; we will reduce defect rates by 20% Hoshin deployment – Here’s how we can achieve this goal Hoshin implementation – Activities required to implement hoshin; e.g.; defect data collection, analysis Final evaluation – Year end assessment of each hoshin