H-kanri which is commonly known as Hkanri, is a strategy management methodology developed at Toyota Plants in the 1950s. The term 'Hoshin' means 'target alignment' in Japanese. This strategy is often used in conjunction with the lean manufacturing strategies.
This strategy planning methodology targets an improvement effort at a lower level that results in higher level cost savings for the organization. The systematic Hoshin Kanri method is built upon three main components.
First Priority Component - which are customer-focused; improving customer satisfaction by offering improved quality.
Process Optimization - reducing inefficiencies by optimizing current systems through reducing production delays.
3. Ika in which, in terms of reducing costs by improving production effectiveness through waste reduction.
These main components are at the center of the Hoshin Kanri methodology. They provide a structured approach for planning an organizational strategy.
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