NAME: ALMAS PRATAMA INDRASTI

INT - 7
STRATEGIC MANAGEMENT

A REVIEW OF JOURNAL/ARTICLE TITLE :

INTRODUCING THE HOSHIN KANRI STRATEGIC MANAGEMENT

SYSTEM IN MANUFACTURING SME’s

The journal purposely to explore the basic principles and describing of the Hoshin
Kanri strategic management system that has been used in manufacturing small-and
medium sized enterprises (SMEs). The dominating of strategic management in
manufacture industries are using strategic planning (SP) model, on the other hand,
Hoshin Kanri (HK) offering an additional approach to SP, as system of strategic
management.

HK consist of two words, which mean Hoshin means shining metal, compass or
direction pointer and Kanri can be translated as (daily) management control in the
organization. This paper solely focused on how an implementation process where the
strategic management system is being introduced by externals to top managers in
manufacturin SMEs. Hoshin Kanri (also called Policy Deployment) is a method for
ensuring that the strategic goals of a company drive progress and action at every level
within that company. This eliminates the waste that comes from inconsistent direction
and poor communication.

HK principle formed on 1950s, whether we can not trace the origin, it is commonly
argued that he model’s conceptualization began to discuss quality control. Next, HK
is widely adopted in Japanese companies, but less-so in Western ones, moreover the
western companies who adopted HK mostly large companies. Beside that, based on
previous researcher represents the only identified source with an explicit SME focus,
reporting on an action research project in a small company within 20 employees. It
means the HK offers a high potential in the SMEs context as the implementation of
the model of transformation in organization culture in the case company, which is
holds a more inclusive and holistic view in business.

HK Management system providing an annual step by step planning, deployment,

and review process for managing change. It can be described as a simple PDCA
applied to the planning and execution of a few strategic organizational objectives.
 Plan in phase of HK consists of the analysis being conducted, and the objectives
being set. HK in this phase really assembled with traditional SP model. Do, in HK are
deployment and catch-balling.

Check in the third phase will be more differ between SP and HK. The different lies
on SP is driven by a need for accountability while HK represents an attempt to
continuously learn, correct and advance the strategy within all levels of the
organization. HK goals are participative and shared communality of direction, rather
than top-down command and control.

Act. In the fourth phase, refers to the continuous learning and repetition that is the
fundamental assumption in HK, rather than SP that try to advance the present strategy
on the other hand HK try to develop the strategic management system.

There are four particular interest when introducing HK to management. First, HK is

a management model that is centered in continuous improvement. Moreover, HK
need an active involvement of leadership, has to lived and integrated in daily
management.
The researcher do some observation at the four companies

All in all, the paper describing how the basic principles and introduction of HK are
related to managerial practices in manufacturing SMEs. The initial process was only
partially successful which has led them to the theorization of an alternative approach.
It seems the introduction of strategic management systems in SMEs should instead
focus more on process accentuating engagement experimentation and immediate
relevance for the people involved.