Professional Documents
Culture Documents
2.
Establish KPIs associated with the organizations key goals, and measure
performance in these
3.
4.
5.
6.
Once the metrics are aligned at all levels, process improvement projects
can be identified
7.
In most cases, the strategic plans are developed by senior management, and
deployment only involves the higher management levels
Those at the lower levels of the organization are not involved in identifying their
strategic goals, and often are not even informed of the goals after they are
developed
This makes it difficult (or impossible) for employee actions to be aligned with the
organizations key goals
From: Dilbert - A Treasury Of Sunday Strips: Version 00 by Scott Adams, (Andrews McMeel Publishing 2000)
BA 553: Business Process Management
Hoshin: Definition
Hoshin Planning
Focus on results
Focus on process
Quarterly management
Continuous management
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11
Hoshin Planning controls the means and methods, not just the
results.
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13
14
Hoshin Planning:
Factors that Contribute to Success
Targets are set based upon an understanding of both how they will
be achieved and the limits of process and organizational
capabilities.
15
16
Hoshin Management
(plot voyage)
All ports of call
Current Course
Next port of call
Functional Management
(set course and speed)
Daily Management (run the ship)
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Daily Management
Functional Management
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Focus on
process
Catch ball
understanding
Focus on
root causes
No tie to
performance
appraisals
Quality
first
King, Bob, Hoshin Planning: The Developmental Approach, Methuen, MA: GOAL/QPC, 1989.
BA 553: Business Process Management
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Managers are responsible for setting and evaluating their own personal
goals
The goals that are established are aligned with the goals of the rest of the
organization
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As root causes are identified and eliminated, the process is improved and
standardized, leading to a sustainable increase in process effectiveness
Quality first
Hoshin Planning is based upon the viewpoint that providing customer value
by means of quality is the basis for long-term success
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Focus on process
Factors which help the process better achieve the targets are
enforced
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5-year vision
1-year plan
Plan
Presidents
annual
audit
Audit
Monthly
diagnosis
Execute
Deploy to
departments
Detailed
implementation
King, Bob, Hoshin Planning: The Developmental Approach, Methuen, MA: GOAL/QPC, 1989.
BA 553: Business Process Management
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27
Meeting Purpose
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Meeting Agenda
Session 1 - Leadership Group Guidance
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30
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Workshop Topics
Session Topic
A
0. Purpose and Agenda
1. Leadership Guidance
B
2. Hoshin Planning
3. Systems Diagram
4. P2DCA - The Learning Cycle
5. Understanding Organizational Capabilities
6. Seeing the Organization as a Network of Processes
7. Employee Interest in Participating in Process Improvement Efforts
8. Vision of the Future
C
9. Working Groups to Establish Preliminary Hard and Soft Objectives
D
10. Organizational Improvement Planning Overview
11. Deploying Key Objectives - Case Examples
12. Multi-level Learning Cycle
13. The Deming Improvement Cycle
14. Organizational Change Model
15. Planning Process Overview
16. Performance Indicators Case Example
E
17. Hoshin Planning Implementation Workshop Groups
BA 553: Business Process Management
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Short-term Plans
3. Strengthen organizational
effectiveness
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Coordinating
Executive
Functional
Management
Department
Management
First Line
Management
Modify
distribution
substation
operations
Change
transmission
switching
priorities
Improve
field crew
response
times
others
others
others
Reduce
generation
forced
outages
Upgrade
equipment
and
facilities
King, Bob, Hoshin Planning: The Developmental Approach, Methuen, MA: GOAL/QPC, 1989.
BA 553: Business Process Management
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Power Plant
(PP) Level
Improvement
Spec
Reduce forced
outages
Integration
Improvement
Plan
(Plant 1)
Improvement
Plan
(Plant 2)
Additional
Plants
Improvement
Plan
(Plant 3)
Integration
Work Process
(WP) Level
Measures
amount of
equipment fixed
work orders
completed
Additional
WP's
Improvement
Spec
Improve
maintenance
Improvement
Spec
Improve
fuel supply
Improvement
Spec
Improvement
Plan
Improvement
Plan
Improvement
Plan
overtime costs
cost of expedited
parts
Etc.
Integration
Work Process
Improvement
Section (IS)
Level
Measure - EFOR
Measures
wait time for
parts
Additional
IS's
Improvement
Spec
Improve parts
availability
Improvement
Spec
Improve predictive maint.
Improvement
Spec
Improvement
Improvement
Improvement
# of times parts
not available
Etc.
Measures
# of parts in
warehouse
Implement
Improvement Plan
Parts
availability
BA 553: Business Process Management
Implement
Improvement Plan
Predictive
maintenance
Implement
Improvement Plan
Etc.
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Plant Strategic
Planning Groups
Dave, Mark,
Dept. managers and some
represented workers
Buddy, Trudy
Identify plant objective categories
and preliminary objectives
(what and why)
Department
Managers
Department
Planning Groups
All Department
Employees
Department
managers and PTC's
Support
Prepare department's
strategic plan as a draft
document
Review/comment on
departments
strategic plan
Review
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1.1
1.2
1.3
1.4
2. Optimize availability
3. Optimize employee
training
4. Change style of
management to reduce
fear in the work
environment
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Legend
Business Priorities
Plant Priorities
+++
++
+
o
B1.
B2.
B3.
B4.
P1.
P2.
P3.
P4.
Strongly supports
Moderately supports
Mildly supports
Unrelated
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Employee safety
Protect equipment
Generate megawatts
Environmental compliance
1.1
1.2
1.3
1.4
1.5
2. Optimize availability
4. Change style of
management to reduce fear
in the work environment
43
Legend
Business Priorities
Plant Priorities
+++
++
+
o
B1.
B2.
B3.
B4.
P1.
P2.
P3.
P4.
Strongly supports
Moderately supports
Mildly supports
Unrelated
Employee safety
Protect equipment
Generate megawatts
Environmental compliance
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Date:
Fiscal year:
Plant:
Location/Dept:
Ray Vogel
2/10/2004
2004-05
Clark
Administrative Services
Objective:
Subobjective:
2. Optimize availability
2.1 Analyze causes of every trip/failure to start event and
communicate results to plant team.
Performance measures:
Number of events by unit, cause, crew, and remedy
Number of unexplained events by unit and team
Number of corrective actions approved/completed
Situation (as is)
Trip and failure to start events are logged and reported. This data is not used
consistently in an organized process to identify and correct root causes, nor to
inform team members of their role in preventing future events.
Strategic plan for achieving 2004 objective:
Design a process for operations, maintenance, and administrative services to
cooperate in data gathering, analysis, reporting and corrective actions of all events.
BA 553: Business Process Management
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Process Improvement
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Establish measures and measurement systems to help the plant develop the capability to
meet and exceed internal and external customer requirements
Use of Systems Thinking
Focus on understanding and improving key plant processes - initial focus areas to be the
maintenance and fuel systems
Employee Involvement and Participation
Train Process Improvement Teams in systems thinking and process improvement, and will
be encouraged to participate in key improvement efforts
Employee Training and Development
Train employees and managers in Change Readiness, Customer Focus, Malcolm Baldrige
Award Criteria, Systems Thinking, Process Improvement, Leadership, Hoshin Planning
Plant and Systems-Level Measurement
Schedule regular sessions with all employees to review performance and status of goals
BA 553: Business Process Management
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