Hoshin planning

Hoshin planning is an approach to target development (policy deployment) and planning of critical core processes from total quality management. It should ensure the consistency of the corporate goals, ie the correspondence of the visions / strategies of a company with the goals of the organizational units and the action plans derived from them.

The term Hoshin comes from Japanese and is made up of ho (method, form) and shin (compass). According to Japanese mythology, the compass is supposed to ensure that every single ship in a fleet sails in the same direction. Hoshin can therefore be freely used as a “method
to align ”, whereby the aim is to align all employees of a company to the same common visions and goals.
The Hoshin planning extends the PDCA cycle to the entire company and to include all employees. The PDCA cycle is a general description of the procedure for continuous process improvement: At the beginning, the initial situation is analyzed, goals are set, and possible solutions are sought and evaluated (plan).

The solution is then implemented (Do) and the result is checked for compliance with the plan (Check). If the desired result has been achieved, the procedure is retained and formalized as a standard, otherwise it is discarded again (Act). To further improve the result, the cycle is run through again and thus leads to continuous improvement. As part of the Hoshin planning, this cycle should take place at all planning levels.

Bei der Hoshin-Planung unterscheidet man zwischen dem strategischen Management und dem Tagesmanagement. Auf der Ebene des strategischen Managements geht es um grundlegende Veränderungen kritischer Kernprozesse und die Verfolgung der zentralen Zielsetzungen des Unternehmens, den sog. Durchbruchzielen und dem daraus abgeleiteten Jahresplan. Dagegen handelt es sich auf der Ebene des Tagesmanagements um graduelle Verbesserungen bzw. Anderungen nicht-strategischer Art i.S.v. Kaizen. Das Tagesmanagement soll in einem kontinuierlichen Prozess der Kontrolle und Verbesserung gemäß PDCA sicherstellen, dass auch die alltäglichen Handlungen der Mitarbeiter zur Erreichung der Zielsetzungen und Vision des Unternehmens beitragen.

The Hoshin annual plan is based on the agreed breakthrough goals. After the annual targets have been derived, Hoshin plans are drawn up at each level in mutual coordination between the two hierarchical levels. The mutual agreement on the goals to be set and in particular on their implementation within the framework of the available organizational resources is referred to as the "catch-ball principle". The "ball" is played back and forth between the two levels involved until an agreement is reached.
In contrast to management by objectives, in which the overall goals are set by the company management and the development of goals takes place through agreements or stipulations between the managers and their employees,

• Hoshin planning is a participatory process in which the goals and measures to achieve them are discussed at every level until an agreement is reached;

• The Hoshin plan of an organizational unit does not only consist of goals, but always also of measures to achieve them, as well as measures with which the achievement of goals is quantified;

• One does not look for justifications, but for causes and solutions to problems when an organizational unit does not meet its goals;

• The Hoshin planning includes a formalized and regular control of the plan implementation;

• Team-oriented target agreements are in the foreground.

The Hoshin planning is characterized by a high degree of formalization, the restriction to a few essential goals and a pronounced participation at all company levels. Each management level sees the entire plan and determines their respective implementation share, required times and resources. The result is a realistic picture of the resources required to achieve the company's key objectives.

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