In his most recent article for Cost Management, Tom Jackson discusses how to keep all the pesky self-managed teams of lean, six-sigma and agile under control. Management accounting–the old-fashioned control system of budgets and audits–is not up to the task. Hoshin kanri (strategy deployment) is the way to go.
Toyota’s Last Secret
Recently published in Cost Management, Tom Jackson and Jeffrey Armfield’s article explores the connections between target costing and hoshin kanri in Toyota’s famous chief engineer (shusa) system of product development and their big impact on Toyota’s profitability. Toyota’s execution in operations is practically flawless. It’s profitability is by design.