The Method to our Madness

DENSO’s Long-term and Mid-term Policies are Lean Management Tools

Did you ever wonder why we roll out Mid-term and Long-term policies every few years? Why do we call them policies? And what do they even mean to me? We assure you, there’s a method to our madness. And there’s even a name for the method we use. It’s called Hoshin Kanri.

Hoshin Kanri

Our Long-term Policy sets a long-term goal looking approximately ten years ahead. This approach, the word “policy” comes from “hoshin kanri”.

Hoshin Kanri is a method for ensuring that the strategic goals of a company drive progress and action at every level within a company. Also called Policy Deployment, Hoshin Kanri is an approach that strives to get every associate pulling in the same direction at the same time. It achieves this by aligning the goals of the company (Strategy) with the plans of middle management (Tactics) and the work performed by all associates (Operations). This approach is at the heart of lean manufacturing and Six Sigma.

HOSHIN = Direction or Sharp Needle. Kanri = Management. The two words together = Compass

The Method: Our Planning Process

• Our Long-term Policy sets a long-term goal looking approximately ten years ahead.
• The Mid-term Policy specifies mid-term strategies necessary to achieve our Long-term Policy.
• The Mid-term plan is subsequently broken down in to the Annual Plan. These plans are finally incorporated in the annual activity target and daily efforts for each of us.

Shared Vision

It’s a proven fact we perform best when we have a purpose. Hoshin Kanri helps create a global purpose, and provides focus and drive toward specific goals. When we understand WHY things are important, it helps us do our jobs.

Right now, our leadership teams are working on annual planning for Fiscal Year 2019. These plans will help each business group, product group, team and individual associate, determine their targets and actions for the next year – the targets and actions that will help us get one step closer to our long-term vision goal.

Learn more about our vision for the future here.