Hoshin Kanri and Its Cousins
The Jones article refers to Bank of America's adoption of the Hoshin Kanri planning process. What's the big deal? Hoshin Kanri is often called Policy Deployment and it's the method used to translate the implementation goals of Six Sigma projects into action plans throughout an organization. Policy Deployment in turn can be considered the application of Deming's Plan Do Check Act cycle to the management process.
GP Deltapoint puts it this way...
Improving performance through waste reduction and following reliable methods to assure consistency are both essential components of world-class performance.
The best areas to focus on improvement are chronic, important issues. In other words, improvement projects should be carried out to improve key performance indicators (KPIs) that have lagged consistently. Some of those projects can be completed simply using standard analytical tools or our Situation, Target Proposal method. Others need more in-depth study by a team; that is where the Quality Improvement Story or Global 8D might be best. More intractable issues may need the analytical rigor of Six Sigma's designed experiments. In any case, measurable improvement is the result.
The best areas to focus reliable methods are those that can help keep key KPIs on track. Reliable methods are consciously developed, consistently followed and currently believed to be the best practice. They must have an identified owner to maintain the method as a standard. Many organizations link these efforts to ISO certification. In any case, sustaining of improvements is the result.
So the big deal is that Six Sigma without Hoshin Kanri would result in sporadic localized successes. Those successes would likely be most implementable by the Six Sigma cadre of black belts and might not translate well across locations and time. The big deal is that the $2 billion prize would be a lot smaller had BoA not been holding a full house of improvement cards.
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