Hoshin Kanri Goal Cascade to Factory Floor

"Goals Goals are first set at the company level, then unfolded down the organization through the Hoshin Kanri process (another Falconi/TQM influence). Company goals follow a basic Balanced Scorecard model, with a heavier weight given to an EBITDA (earnings before interest, taxes, depreciation and amortization) goal that serves as a trigger for variable…"

"This way, the company generates an actual framework with which to make everybody “row in the same direction.” From the big dream, the company breaks down company-wide yearly goals, and then CEO goals, VP goals, Director goals, all the way down to the factory employees, who are all aligned by targets derived from the company’s Big Dream."

"Type A Breakdown: Goal-Measure Some goals can be broken down in measures. If goals can’t be broken down in measures, it’s because the goal is an action to be taken. Measures are the components that lead to achieving a goal. For example, in order to achieve higher EBITDA, a company must increase sales, and/or reduce costs, and/or reduce expenses, and/or increase productivity. These are measures. When a goal is broken down in measures, these measures must themselves become someone else’s goals (when they’re added to a time-frame.) So the CEO’s EBITDA goal is broken down to a sales measure, which then becomes the goal of the VP Sales. A goal-goal breakdown is called a Type A breakdown by Vicente Falconi,"