Question

1. What is the Hoshin Kanri method of strategic planning?
   Detail the implementation steps for an exporting manufacturer using this Hoshin planning method. Outline the top three opportunities among exporting manufacturers.                    
                                                                                                                                                   

PLEASE TYPE ANSWER

Answer 1

Hoshin Kanki is a Japanese method of strategic planning, the main objective of the method is to reduce & bring improvement in the communication structure of company and also to mitigate the effects of waste on the company due to negligence on the part of the management.

Now let us discuss the steps for implementation of the captioned technique in the context of an export manufacturer: -

i) Establishing values within organisation - The management of the export manufacturing company must answer a basic question which is the reason for the existence of the company. This helps in segregating & creating values within the organization.

ii) Develop objectives - The leadership must develop objectives, for successful implementation of business and key mission for the purpose of the existence of the company. This step involves development of overall objectives for the entire organization as a whole and not for individual persons working within the organization. In case of a manufacturing exporter company, it includes conducting survey how the top 20% of our customers in outside countries found us.

iii)Develop annual objectives - This step involves further breaking the objectives drawn in the previous step into various sub-parts which includes year-wise targets to be achieved for the company. In case of export manufacturing company, it will be the market share it wants capture within the next year.

iv) Annual objectives placed into the hierarchy - The annual objectives are drawn must be then placed among the different hierarchy of the organization making it suitable to be followed by individual departments. In case of export manufacturing company it will be segregating the sales targets among different managers managing different destination-oriented to different countries of export.

v)Bring annual objectives into action- The annual objectives now are followed and brought into action,  In export manufacturing company it will include trying different measures to include new customers for increasing market share of the company.

vi ) Monthly review - In this step the company must ensure that its already set targets are being achieved if not it must go into the detail of finding out why the steps are not achieved, by the organisation.

vii) Annual Review - This is the review which needs to be done by the manufacturing company at the end of the year to check whether its annual objectives are being met after adopting the new technique.

The top three opportunities among the export manufacturers are as follows : -

1) Easily finding new market places to sell their products, thus never falling short of customers.

2) Comparing and selling its products in those external countries which offer the maximum price for the product.

3) Getting various incentives from the government which includes tax exemptions for exporting and bringing foreign currency within the country.