Summary of Hoshin Policy Deployment
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1 Summary of Hoshin Policy Deployment
2 The Starting Point: First, they must assure the business is healthy today. Second, they must assure the business will remain healthy in the future. Peter Drucker
3 Hoshin Policy Deployment NNG TABLE Situation Mission Key activities - Describe - Owner - Metrics - Action limits ning table for each key activities Drill down to every value stream,process & department VSON Metaphor, model, picture Emotions & purpose nspiration CURRENT STUATON Sale & sales trends Customer satisfaction Competitors Technology trends Suppliers Core competencies S O W T LONG RANGE 3-5 years Quantify vision Limited deployment Wide communication Changes slowly LONG RANGE NNG TABLE Situation Objectives - Owner & metrics Strategies - Owner - Metrics Usually just a single level ANNUAL NNG Specify actions this year to achieve long range plan Deploy in all critical areas Changes from year to year DETALED MPLEMENTATON Situation Task Owner Deliverables Dates Locations not in long range plan decide their own breakthru changes PERODC REVEW each strategy from the annual plan Table Bowling Chart Abnormality Report mplementation standardized by moving into
4 How to read the chart 3-5 year objectives relate to annual objectives Global Corporate T/Communications Rollout WEEE,Export,SO) Lean Education/Training mplement Lean Practice of 4 Continuous mprovement (e.g. define & map value streams) Annual objectives relate 0to New Market Development New Product Development annual targets to improve 1 mplement SOFP Annual Objectives # Resources V Global T Platforms Systems Sales Lean Culture Lean Thinking Three Year Objectives V 2006 Targets to mprove Revenue Margin Expenses Number of Employees Delivered Quality to the Customer Ease of Doing Perceived Value Velocity (nventory) Production & Procurement Lead Times?% of Reveunue From System Sales Finance/Legal/T Department Human Resources Department Marketing Department Sales Department Design Engineering Department Procurement Department Manufacturing Department Benefits p aa bb cc dd ee ff gg hh AAA EBTDA 50 MM TO 60MM KEY a b c BBB Sales Per Employee 150k TO 15k Primary CCC Sales Growth 322 MM TO 355 MM o Secondary DDD Customer Satisfaction From 5 TO Annual targets to improve EEE nventory Turns 3.3 TO 6 FFF On Time Delivery FROM 30% TO 5% relate to benefits GGGG CASH FLOW FROM MM TO 30 MM Note: Only one primary resource per annual objective/target to improve square Note: List most important objectives and targets closest to the Matrix square d e f g h j k l
5 Level 5 Policy Deployment Chart format Level 4 annual Action Steps here Level 4 Specific Action Steps here V V V V V Develop YZ Channel to from 0 to MM 2006 Level 4 Specific Actions Q1 Q2 # Resources Rationalize DEF Line for cost Expand Sales of DEF Products Expand Sales of ABC Products by MM 2006 Level 4 Action Steps 2006 Specific Level 5 Action Steps Establish Regional Distributorships in NA Sell 1 MM per Q to 4 Distributors James Johnson Benefits p aa bb cc dd ee ff AAA EBTDA 50 MM TO 60MM KEY BBB Sales Per Employee 150k TO 15k Primary CCC Sales Grow th 322 MM TO 355 MM o Secondary DDD EEE FFF GGG Customer Satisfaction From 5 TO nventory Turns 3.3 TO 6 On Time Delivery FROM 30% TO 5% OPERATNG CASH FLOW FROM MM TO 30 M Level 5 enters their annual specific action steps here
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