Introducing the Hoshin Kanri strategic management system in manufacturing SMEs

Abstract

Purpose The purpose of this paper is to explore the basic principles and introduction of the Hoshin Kanri (HK) strategic management system, as related to the management practices in manufacturing small- and medium-sized enterprises (SMEs). Design/methodology/approach This paper reports the findings from the introduction of HK to four manufacturing SMEs by following an assistance support-based research approach where teams of coaches and researchers observed and learned from the introduction phase. The overall design of the project is theory building and learning oriented. Findings It is suggested that the successful introduction of a strategic management system in manufacturing SMEs has to balance the inherent level of formalization therein, with the individual company’s management practices. Based on HK as the strategic management system, pDCA is proposed as an alternative approach to the introduction, matching differences in management practices. Research limitations/implications The explorative nature of this research provides room for subsequent studies by elaborating the knowledge on the introduction of strategic management systems in SMEs. Practical implications Awareness of the existing managerial practices is essential when introducing a new strategic management system in manufacturing SMEs. Such awareness is the starting point of customizing the introduction, so that proper levels of engagement and flexibility can be balanced with increasing systematic formalization, and optimized adequacy. Originality/value Following an assistance support-based research approach the result of this research project is summarized in the iterative pDCA model emphasizing engagement and flexibility when incrementally introducing strategic management systems in SMEs. This model addresses a hitherto under-researched topic in strategic management.

Lessons for Construction: Delivering Mega Project on Time Through Culture and Hoshin Kanri

“…Giordani da Silveira et al (2017) argue that cultural resistance becomes a main challenge for implementation of Hoshin Kanri. Melander et al (2016) argue that SMEs through Hoshin Kanri introduce trust in their organizations, as the employees are involved in translating objectives into actions. In this case, the "catchball process" became the translation of priorities into tangible targets throughout the teams in the organization.…”

6. Balanced Scorecard and Hoshin Kanri: Why and how they might be used together

“…Although the BSC and HK emerged from two different disciplines, they both address the managerial challenge of aligning a departments' activities with the organization's strategy (Asan & Tanyaş, 2007;Chiarini, 2016;Kaplan & Norton, 2008;Nørreklit, 2000;Witcher & Sum Chau, 2007;Yang & Yeh, 2009). The tools also originated in different geographical and historical contexts.…”

“…The strength of BSC is to clarify and communicate the organization's longterm strategic goals. Less known is Hoshin Kanri (HK), originally developed as a holistic framework for Total Quality Management (Asan & Tanyaş, 2007;Melander, Löfving, Andersson, Elgh, & Thulin, 2016;Witcher & Butterworth, 1999). The strength of HK is the deployment of strategic goals through cycles of planning, execution and feedback (Asan & Tanyaş, 2007;Chiarini, 2016;Witcher & Sum Chau, 2007;Yang & Yeh, 2009).…”

The Degree of Implementing Hoshin Kanri Methodology in Developing Quality of Culture at the Jordanian Secondary Schools

“…Furthermore, there were some indications that the basis for developing this methodology is constructed by mixing Edward Deming's ideas and ideologies in the processes that institutions in Japan have been performing with Peter Druckers' philosophy of management with objectives. This provides indications that there is a close relationship between Total Quality Management (TQM) and the Hoshin Kanri's methodology (Melander, Lofving, Andersson, Elgh, & Thulin, 2016). Osada (1998) defined the methodology of Hoshin Kanri of the Total Quality Management (TQM) as it is the process of selecting strategic change, which in many institutions, is called strategic planning.…”