Lean Tools (I). Hoshin Kanri

Grupo Espacio Industrial applies the lean philosophy in the development of its activity of supplying comprehensive industrial services focused on manufacturing solutions and maintenance of electromechanical equipment, among others.

As commented in previous posts, a Lean Management System (LMS) is based on the continuous improvement of productivity and quality, through the involvement of staff, and the elimination of waste (activities that do not add value to the product / service or to the processes). Today, we focus on one of the tools used in Lean Manufacturing: Hoshin Kanri.

The meaning of the two words that give name to this strategic planning and execution model is: “compass” and “control administration”, respectively.

It is a working method based on the cooperation of the entire company to achieve the long-term strategic objectives and the short-term management plan.


The foundations of Hoshin Kanri are:

  • Integrate routine (repetitive) and disruptive (innovative) tasks, based on the company’s key objectives.
  • Cover two dimensions: strategic direction and operational management, so that it allows to align the general objectives of the company, long-term strategic plans and daily processes.
  • Establish a system to formulate cascading objectives, plans and goals, based on continuous improvement models; and indicators to assess the scope of objectives and effectiveness of the plans.
  • Relying on periodic reviews to ensure progress.
  • Focus on few critical goals for success.


The Hoshin Kanri method is developed in seven steps:

  1. Identification of business keys.
  2. Establishment of quantified business objectives.
  3. Definition of the global vision and goals.
  4. Development of strategies to achieve the goals.
  5. Determination of action plans (tactics and objectives) for each strategy.
  6. Identification of indicators that measure the performance of each process.
  7. Review.