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Toyota Kata Unified Field Theory & Strategy Deployment (Hoshin Kanri)

Since 2011 the Toyota Kata Unified Theory has helped me in explaining the Improvement Kata. After some time I ran into obstacles, particularly when I started moving towards policy deployment. In this slide deck I share some insights that have brought me further.

Toyota Kata Unified Field Theory & Strategy Deployment (Hoshin Kanri)

  1. 1. Lean Management Teachers Expanding Toyota Kata Unified Field Theory towards Strategy Deployment (Hoshin Kanri) Emiel van Est March 2015 (Update May 2015) © Emiel van Est
  2. 2. Lean Management Teachers Understand the Direction Grasp the Current Condition Establish next Target Condtion PDCA toward Target Condtiont Target Condition HT DT ?! Toyota Kata Source: Mike Rother © Emiel van Est In 2010 Mike Rother published the book Toyota Kata. In that book he outlines two routines: the Improvment Kata (shown above) and the Coaching Kata. The Improvement Kata
  3. 3. Lean Management TeachersToyota Kata Unified Field Theory © Emiel van Est x Target Condition Vision Big Challenge The Toyota Kata Unified Field theory has been very helpfull in explaining the Improvement Kata. It was first presented by Bill Costantino in 2011. See http://www.slideshare.net/BillCW3/toyota-kata-unified-field-theory Threshold of Knowledge “Lean temptations”: • Problems • Improvement opportunities • Waste Current Condition Grey zone of unclear territory Path of discovery & learning
  4. 4. Lean Management TeachersEach point in this diagram is a condition © Emiel van Est x Target Condition Vision Big Challenge The Current Condition & Target Condition have been named “condition”, but also the Big Challenge and the Vision can be described as a condition.
  5. 5. Lean Management TeachersWhat is a condition? © Emiel van Est Results • Outcomes • Effects • What we currently get or what we want in the future. Characteristics • Description of the circumstances • Can be in text • Can be with diagrams • Process diagram • Value stream map • ... • Etc • Format is not that important. What is important is that you can explain what the situation is currently like or should become in the future and how that leads or will lead to the described results. Thesecharacteristics leadtotheseresults A condition, whether now or in the future, consists of two main blocks: results and characteristics. A condition describes the relation between the results and the circumstances that lead to these results. Process-thinking is at the root of this. You can also see this in terms of cause and effect.
  6. 6. Lean Management TeachersExample: True North © Emiel van Est Results • 0 defects • 100% value add Characteristics • lot size 1 • in sequence • on demand Thesecharacteristics leadtotheseresults If you look at the de True North of Lean it can be split in results and characteristics. 0 defects and 100% value add are results that we pursue. We think we can reach these results by striving towards 1x1 flow.
  7. 7. Lean Management Teachers © Emiel van Est x Vision Results • • Characteristics • • • Results • • Characteristics • • • Extremely big unclear territory High level, still vague images. Long term, global perspective.
  8. 8. Lean Management TeachersMid-long term, more concrete © Emiel van Est x Results • • Characteristics • • • Results • • Characteristics • • • A level deeper with more details Big Challenge Results • • Characteristics • • • Results • • Characteristics • • • Some more focus Vision
  9. 9. Lean Management Teachers © Emiel van Est x Results • • Characteristics • • • Results • • Characteristics • • • Another level deeper with even more details. Results • • Characteristics • • • Results • • Characteristics • • • Target Condition Results • • Characteristics • • • Results • • Characteristics • • • Even more focus Short term, much more concrete In this example we look at the current condition on 3 different levels. Big Challenge Vision
  10. 10. Lean Management Teachers © Emiel van Est x Results • • Characteristics • • • Results • • Characteristics • • • The devil is in the details Results • • Characteristics • • • Results • • Characteristics • • • Target Condition Results • • Characteristics • • • Results • • Characteristics • • • More focus again What really happened? Last step • • • What do you expect? Next step • • • Experimenting, very concrete Big Challenge Vision
  11. 11. Lean Management Teachers © Emiel van Est x Target Condition Unclear territory What to do, and what not...? So, with this approach you make an ever sharper distinction between the subjects that are important and those that you don’t want to pay attention to. Doing so reduces the “grey zone”. We need to pay more attention here. We do not pay more attention here. Big Challenge Vision
  12. 12. Lean Management Teachers © Emiel van Est Results • • Characteristics • • • Results • • Characteristics • • • A bit closer to the Big Challenge. Results • • Characteristics • • • Results • • Characteristics • • • Results • • Characteristics • • • Results • • Characteristics • • • Even more focus Target Conditionxx Achieved Target Condition, what will be the next one? Big Challenge Vision
  13. 13. Lean Management TeachersWhat to do, and what not...? © Emiel van Est By using the Improvement Kata on different levels you try to get an ever clearer answer to the question: “What do we need to do?”. Implicitly you also answer this question: “…and what not?” May be the latter question is even more important because it gives ever more focus and frees up time to do what matters. Understand the Direction Grasp the Current Condition Establish next Target Condtion PDCA toward Target Condtiont Target Condition HT DT ?! Source: Mike Rother
  14. 14. Lean Management Teachers © Emiel van Est x Results • • Characteristics • • • Results • • Characteristics • • • Results • • Characteristics • • • Results • • Characteristics • • • Target Condition Results • • Characteristics • • • Results • • Characteristics • • • How do the conditions on the different levels relate to each other? Big Challenge Vision
  15. 15. Lean Management Teachers Here we want to go. Unclear territory Now we are here. Basic building block © Emiel van Est Results • • Characteristics • • • Results • • Characteristics • • • Before we can explain the relation between the conditions on different detail levels we need a better understanding what the relations are on one detail level. On the next sheets we focus, step by step, on these relations. I will also introduce some definitions that I think will be helpful.
  16. 16. Lean Management Teachers Understand the Direction Grasp the Current Condition Establish next Target Condition PDCA toward Target Condition Target Condition HT DT ?! Understand the Direction Source: Mike Rother © Emiel van Est Let’s start with the first step of the Improvement Kata.
  17. 17. Lean Management Teachers Needed results • • • Unclear territory Current results • • • Here we want to goNow we are here Understand the Direction. What is the Challenge? DEFINITION CHALLENGE A result that has to change. © Emiel van Est
  18. 18. Lean Management Teachers Needed results • Lead time = 6 weeks • • Current results • Lead time = 9 weeks • • Here we want to goNow we are here Challenge Example © Emiel van Est
  19. 19. Lean Management Teachers Understand the Direction Grasp the Current Condition Establish next Target Condition PDCA toward Target Condition Target Condition HT DT ?! Grasp the Current Condition Source: Mike Rother © Emiel van Est What is the essence of understanding the current condition? It means that we understand which circumstances lead to the current results. Do we know what knobs to turn to change the results? Do we truly understand?
  20. 20. Lean Management Teachers Needed results • • • Unclear territory Current results • • • Here we want to goNow we are here Current characteristics • • • DEFINITION UNDERSTANDING CURRENT CONDITION We can explain current results with current characteristics. We understand what the key drivers are for our current results. Thesecharacteristics leadtotheseresults Understand the Direction What is the Challenge? © Emiel van Est
  21. 21. Lean Management Teachers Needed results • Lead time = 6 weeks • • Current results • Lead time = 9 weeks • • Here we want to goNow we are here Challenge Example © Emiel van Est Current characteristics • Output = 14 products/week • WIP = 126 products •
  22. 22. Lean Management Teachers Understand the Direction Grasp the Current Condition Establish next Target Condition PDCA toward Target Condition Target Condition HT DT ?! Esthablish next Target Condition Source: Mike Rother © Emiel van Est What does it mean to establish a target condition? In the previous step we searched for the knobs to turn. In this step we try to establish the position that the knobs need to get so we will get the required results. Do we truly understand?
  23. 23. Lean Management Teachers Needed results • • • Unclear territory Current results • • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristics leadtotheseresults Understand the Direction What is the Challenge? Needed characteristics • • • Thesecharacteristics leadtotheseresults DEFINITION ESTABLISH TARGET CONDITION We can determine the values for the driving characteristics that will lead to the required results. © Emiel van Est
  24. 24. Lean Management Teachers Needed results • Lead time = 6 weeks • • Current results • Lead time = 9 weeks • • Here we want to goNow we are here Challenge Example © Emiel van Est Current characteristics • Output = 14 products/week • WIP = 126 products • Needed characteristics • Output = 14 products/week • WIP = 84 products •
  25. 25. Lean Management Teachers Understand the Direction Grasp the Current Condition Establish next Target Condition PDCA toward Target Condition Target Condition HT DT ?! PDCA toward the Target Condition Source: Mike Rother © Emiel van Est Knowing the positions of the knobs – that will bring the needed results – does not mean that you know how to get these knobs in the right position. For that you'll have to experiment. Be prepared though; the unknown territory may have some surprises in store! Do we truly understand?
  26. 26. Lean Management Teachers Needed results • • • Unclear territory Current results • • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristics leadtotheseresults Understand the Direction What is the Challenge? Needed characteristics • • • Thesecharacteristics leadtotheseresults What do we need to work on? What characteristics have to change? What are the obstacles? DEFINITION OBSTACLE A characteristic that needs to change
  27. 27. Lean Management Teachers Needed results • Lead time = 6 weeks • • Current results • Lead time = 9 weeks • • Here we want to goNow we are here Challenge Example © Emiel van Est Current characteristics • Output = 14 products/week • WIP = 126 products • Needed characteristics • Output = 14 products/week • WIP = 84 products • Obstacle
  28. 28. Lean Management Teachers Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understand the Direction. What is the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • What characteristics have to change? Whichobstacle(s)areweaddressing? Storyboard © Emiel van Est In this way we get a storyboard or an A3 with clearly defined relations
  29. 29. Lean Management TeachersWhat about the actions? These are some actions we can take:  Further research and adding details to the Storyboard. © Emiel van Est
  30. 30. Lean Management Teachers Needed results • Lead time = 6 weeks • • Current results • Lead time = 9 weeks • • Here we want to goNow we are here Challenge Example © Emiel van Est Current characteristics • Output = 14 products/week • WIP = 126 products • Needed characteristics • Output = 14 products/week • WIP = 84 products • Obstacle
  31. 31. Lean Management Teachers Needed results • Lead time = 6 weeks • • Current results • Lead time = 9 weeks • • Here we want to goNow we are here Challenge Example © Emiel van Est Current characteristics • Output = 14 products/week • WIP = 126 products • Needed characteristics • Output = 14 products/week • WIP = 84 products • 4.5 weeks 63 products 3 weeks 42 products 1.5 weeks 21 products Obstacle
  32. 32. Lean Management Teachers Needed results • Lead time = 6 weeks • • Current results • Lead time = 9 weeks • • Here we want to goNow we are here Challenge Example © Emiel van Est Current characteristics • Output = 14 products/week • WIP = 126 products • Needed characteristics • Output = 14 products/week • WIP = 84 products • 4.5 weeks 63 products 3 weeks 42 products 1.5 weeks 21 products ? ? ? How many ways do you know to make 6 with 3 numbers? Obstacle
  33. 33. Lean Management TeachersWhat about the actions? These are some actions we can take:  Further research and adding details to the Storyboard.  Asking detail questions to the next level.  Based on a first assumption for example. © Emiel van Est
  34. 34. Lean Management Teachers Needed results • Lead time = 6 weeks • • Current results • Lead time = 9 weeks • • Here we want to goNow we are here Challenge Example © Emiel van Est Current characteristics • Output = 14 products/week • WIP = 126 products • Needed characteristics • Output = 14 products/week • WIP = 84 products • 4.5 weeks 63 products 3 weeks 42 products 1.5 weeks 21 products 3 weeks? 42 products? 2 weeks? 28 products? 1 week? 14 products? Obstacle What would it mean for your teams if we strive for a lead time of 6 weeks by dividing it in these 3 portions?
  35. 35. Lean Management Teachers Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Connecting with the rest of the organization © Emiel van Est So, you can make a first assumption and investigate what the consequences would be. You may find out that the effect for one team will be much bigger than the effect for another team. The dialog about the proper distribution of the challenges is called “catch ball” in Hoshin Kanri.
  36. 36. Lean Management TeachersWhat about the actions? These are some actions we can take:  Further research and adding details to the Storyboard.  Asking detail questions to the next level.  Based on a first assumption for example.  Experiment to learn about the effect of “turning the knobs”.  Experiment to really get the knobs in the right position. © Emiel van Est
  37. 37. Lean Management Teachers Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Connecting with the rest of the organization © Emiel van Est The obstacle is the challenge! Thus, one or more obstacles can be translated into a challenge for the next level. You can make choices what to do first and what next. You can also divide an obstacle in smaller pieces First walk, then run.
  38. 38. Lean Management TeachersYou can choose a route. © Emiel van Est
  39. 39. Lean Management Teachers Connecting with the rest of the organization © Emiel van Est The challenge is the obstacle! If you can translate an obstacle into a challenge… …then you can also translate a challenge to an obstacle. That gives the answer on an higher level why it is important to work on that challenge. In this way you build a chain of obstacles and challenges; a chain of cause and effect. Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? The obstacle is the challenge!
  40. 40. Lean Management Teachers © Emiel van Est That chain of obstacles and challenges can take many forms. Connecting with the rest of the organization Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan? Needed results • • Current results • • Here we want to goNow we are here Current characteristics • • • Thesecharacteristicsleadtotheseresults Understandthe Direction.Whatis the Challenge? Needed characteristics • • • Thesecharacteristicsleadtotheseresults Actions • • • Wat moeten we doen? Obstacles • • • Whatcharacteristics haveto change? Welkobstakelpakkenweaan?
  41. 41. Lean Management TeachersAnother way to look at it © Emiel van Est Vision Current Condition Big Challenge 6 months 3 year Far away 2 months 1 year 2 weeks 3 months Intermediate targets + Intermediate conditions Current Condition & Target Condition on Vision Level; on Big Challenge level; etcetera.
  42. 42. Lean Management Teachers Expanding Toyota Kata Unified Field Theory towards Strategy Deployment (Hoshin Kanri) I hope these slides are helpful to you. I would love to hear what you think about this material and about the effect it has when you start using it. emiel@leanmanagement.nl © Emiel van Est

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