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A3 Hoshin Planning

A3 Hoshin Planning training presentation.

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A3 Hoshin Planning

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  1. A3 HOSHIN PLANNING Navigating Your Path to Clear Execution C:\Users\Allan BigMac\Documents\000 OEC\Logo\The Logo Company\FINAL\OperationalExD24aR02bP01ZL\TRANSPARENT.png © Operational Excellence Consulting © Operational Excellence Consulting. All rights reserved.

  2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg LEARNING OBJECTIVES Comprehend the Check and Adjust process for strategic review. Master the hoshin planning process by translating the “True North” to the A3. Gain proficiency in using the A3 tool for effective hoshin deployment. 2 © Operational Excellence Consulting

  3. CONTENTS Key Concepts and Principles of Hoshin Planning The A3 Completion Sequence 1 5 True North, A3 and Bridging the Gap A3 Breakdown: Step-by-step Guide 2 6 Hoshin Formulation and Deployment Check and Adjust (Strategic Review) 3 7 Success Factors for A3 Hoshin Planning 4 8 A3 Template Overview 3 © Operational Excellence Consulting

  4. UNLOCKING STRATEGIC POTENTIAL Missed Market Opportunities Unexplored Initiatives Anticipated Challenges Future Opportunities Identify untapped markets by improving preparedness. Overcome resource constraints to pursue pending projects. Proactively address upcoming challenges for resilience. Envision and prepare for opportunities beyond current capabilities. 4 © Operational Excellence Consulting

  5. THE CASE FOR HOSHIN PLANNING 3 Desired State With the Hoshin Planning process, you can prioritize truly important aspects, propelling your organization from the Future State Status Quo to the Desired State, without getting bogged down by every detail. 4 Strategy 1 2 Future State Status Quo Current State 5 © Operational Excellence Consulting

  6. BENEFITS OF HOSHIN PLANNING Drives Collaborative Results Enhances Accountability and Support Prioritizes Importance Over Urgency Enables outcomes that go beyond the capabilities of independent or loosely collaborating country/function operations. Facilitates effective management follow-up to hold participants accountable for their plan and offers support as needed. Ensures focused attention on what is truly important, not just what is urgent. 6 © Operational Excellence Consulting

  7. DEFINITION OF HOSHIN PLANNING Hoshin kanri or hoshin planning is the short-term (one year) and long-term (three- to five-year) process used to identify and address critical business needs and develop the capability of our people, achieved by aligning company resources at all levels and applying the PDCA cycle to consistently achieve critical results. PASCAL DENNIS Author of ‘Getting the Right Things Done’ 7 © Operational Excellence Consulting

  8. OBJECTIVES OF HOSHIN PLANNING Clarity & Alignment Focus Quick Response Results Assure that everyone is going in the same direction with the same amount of effort. Narrow down what is important to the organization. Don’t complicate it. Create a sense of urgency for the focused activities. Stay on schedule. Each individual is accountable for the overall strategy’s success. 8 © Operational Excellence Consulting

  9. HOSHIN PLANNING: CLARITY ACROSS ALL LEVELS ACCELERATES SUCCESS Informed Insights and Feedback Flow Good Clarity and Understanding at all Levels Top Management Velocity Towards the Vision Middle Management Value Added Workforce 9 © Operational Excellence Consulting

  10. PRINCIPLES OF HOSHIN PLANNING Catchball Plan-Do-Check-Act Drive continuous improvement. True North Align on business purpose and strategy. Foster alignment through open discussions. Pareto Principle Focus on vital few for significant impact. Cause & Effect Analyze relationships for effective problem-solving. A3 Thinking Storytelling in planning, structured execution. 10 © Operational Excellence Consulting

  11. HOSHIN PLANNING IS BASED ON THE PDCA CYCLE PLAN: ADJUST: ▪ Define organizational-level objectives, goals, activities, and targets ▪ Address problems identified in the check process ADJUST PLAN ▪ Answer the question, “Where are we going and how do we get there?” ▪ Implement countermeasures based on a root cause understanding Hoshin Planning Process CHECK: DO: CHECK ▪ Analyze actual vs. planned results ▪ Translate and deploy organizational plans, level by level DO ▪ Differentiate normal vs. abnormal; make problems visible ▪ Execute according to those plans 11 © Operational Excellence Consulting

  12. HOSHIN PLANNING PROCESS & PDCA CYCLES Hoshin Planning comprises overlapping PDCA cycles Prioritize and select breakthrough objectives Create plan to achieve breakthrough objectives Determine current condition Determine desired condition Deploy the plan (catchball) 2nd 1st A P D A P D PDCA cycle PDCA cycle C C Annual review: Reflection and learning points Review plan (weekly, monthly, biannual) Confirm and implement plan (A3 report) A P D Note that there is a 3rdPDCA cycle over a 3-5 year horizon C 12 Source: Adapted from Dennis © Operational Excellence Consulting

  13. “ small things go in the right direction.” You’ve got to think about big things while you are doing small things, so that all the ALVIN TOFFLER Author and futurist 13 © Operational Excellence Consulting

  14. WHAT IS “TRUE NORTH”? EFFICIENT FOCUS VISIONARY DIRECTION OBJECTIVE FRAMEWORK True North serves as a vision for the company’s middle-term destination. It answers the question: Where do we want to go? True North establishes main objectives supporting the vision. It addresses obstacles, defining key targets for success. True North guides efficient focus on critical topics. It involves leadership, monitoring, and accountability for chosen programs. 14 © Operational Excellence Consulting

  15. TRUE NORTH: SETTING THE COURSE VISION Manufacture, Implement, and Deliver top-quality products efficiently and economically to delight our Customers. (e.g. of a manufacturing company) Emphasize key aspects of the value proposition (Quality, Efficiency, Cost-effectiveness, Timeliness) to become the preferred supplier, delivering significant benefits to both Customers and the Organization. STRATEGY 15 © Operational Excellence Consulting

  16. HOSHIN PLANNING: TACKLING COMPANY PROBLEMS AT EVERY LEVEL Sustained high performance and results Team member motivation A P Company C Hoshin D A P A P A P Department Hoshin C D C D C D HORIZONTAL ALIGNMENT A P A P A P A P A P Group and Individual Problem Solving C D C D C D C D C D 16 Source: Adapted from LEI © Operational Excellence Consulting

  17. THE PLANNING & EXECUTION TREE Speed – Cost – Teamwork Targets: True North Revenue = $500 million Return on Sales = 10% No layoffs “Mother” A3 strategies Quality People Profitability Delivery Departmental Action Plans & Kaizen Activity “Daughter” Action Plans 17 Source: Adapted from Dennis © Operational Excellence Consulting

  18. BRIDGING SUCCESS: A3 HOSHIN PLANNING JOURNEY Current State Desired State A3 Hoshin Planning Journey Hoshin Formulation Hoshin Deployment Analyzing current strategies, identifying strengths and weaknesses, and conducting a thorough evaluation. Efficient rollout and communication of the A3 Hoshin Planning strategy throughout the organization. Anticipate challenges on your A3 Hoshin Planning journey and skillfully navigate through difficulties. © Operational Excellence Consulting Obstacles & Risks 18 © Operational Excellence Consulting

  19. HOSHIN CASCADE: UNLEASHING STRATEGIC FLOW Organization’s Guiding Principles The compelling future state that reflects the organization’s ultimate aspirations and purpose. A set of fundamental values and principles that guide the overall direction and decision- making of the organization. True North Vision One-page documents that capture the essence of a specific improvement project or initiative, aligned with organizational strategies. Strategies High-level, focused plans outlining how the organization will achieve its True North Vision. A3s Ongoing processes and practices to manage day-to- day operations efficiently and continuously improve organizational performance. Daily Ambitious and measurable goals derived from A3s, representing significant improvements in key areas. Management & Continuous Improvement Breakthrough Objectives 19 © Operational Excellence Consulting

  20. HOSHIN FORMULATION & DEPLOYMENT 3 Desired State Hoshin Formulation Check & Adjust 4 Strategy Hoshin Deployment 1 2 Future State Status Quo Current State Plan & Do 20 © Operational Excellence Consulting

  21. ALIGNING STRATEGIES WITH THE TRUE NORTH VISION ILLUSTRATIVE Main Objectives: Growth & Innovation Support Objectives: Operational Excellence Product Innovation ● Introduce cutting-edge technologies and features in current and new product lines. Talent Development ● Foster a culture of continuous learning and development for employees. Global Supply Chain Optimization ● Enhance efficiency and resilience in the supply chain for global readiness. Market Leadership ● Strengthen market presence and become a leading player in key markets. Process Efficiency ● Streamline operational processes to achieve excellence in efficiency and quality. Customer Experience Enhancement ● Elevate customer satisfaction through improved services and support. 21 © Operational Excellence Consulting

  22. A3 EXCELLENCE UNVEILED: YOUR ROADMAP TO SUCCESS 1 Your main Objective for this Year 6 KPIs that illustrate your Objective 2 Your Action Plan to Achieve the Objective 3 Reflections on Last Year 4 Critical Few Goals for This Year 7 8 How you monitor your plan Concerns to remain in sight Rationale that supports your Critical Few Goals 5 22 © Operational Excellence Consulting

  23. PURPOSE OF CHECK & ADJUST MONITORING STATUS REVIEW PERFORMANCE METRICS CONTINUOUS IMPROVEMENT Monitor hoshin plans and results. Review project status aligned with strategic objectives. Monitor key performance parameters, address anomalies. Continuously improve the hoshin planning process. 23 © Operational Excellence Consulting

  24. TYPES OF STRATEGIC REVIEWS Weekly Review: A focused 90-minute session for updating progress, addressing discrepancies, and ensuring alignment with strategic goals. Weekly Review Annual Review: The pivotal event for assessing the year's strategy deployment, identifying root causes, standardizing improvements, and documenting lessons learned for continual enhancement. Quarterly Review: A comprehensive offsite meeting to evaluate goal contributions, review trends, address challenges, and adapt tactics for ongoing strategic success. Annual Review Quarterly Review 24 © Operational Excellence Consulting

  25. “ is to do what you believe is great work.” Your work is going to fill a large part of your life, and the only way to be truly satisfied STEVE JOBS 25 © Operational Excellence Consulting

  26. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg Logo Fb / Logo Fb Png / How the X Logo (Twitter | 01) - Women In Wilmington Transparent-Pinterest-Logo-Icon-660x660 • The Book © Operational Excellence Consulting

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