H-kanri which is commonly known as Japanese Strategic Methodology, is a strategy management methodology developed at the Toyota Motor Corporation in the 1950s. The term 'Hoshin' means 'hitting the target' in Japanese. This strategy is often used in conjunction with the lean manufacturing strategies.

This strategy planning methodology targets an improvement effort at a lower level that results in higher level cost savings for the organization. The structured Hoshin Kanri method is built upon three main components.

1. Aikainin - which are customer-focused; improving customer satisfaction by offering better quality.

Process Optimization - reducing inefficiencies by optimizing current processes through reducing production delays.

Last Component in which, in terms of reducing costs by improving resource effectiveness through resource allocation.

These main components are at the heart of the Hoshin Kanri methodology. They provide a methodical approach for planning an organizational strategy. Hoshin Kanri methodology integrates all levels of an organization and optimizes production processes through a system of planning, control, and regular review and continuous improvement.

The methodology promotes long-term planning with an idea from a macro perspective. Ideas are sourced by operational employees. The employees are offered professional development to become more familiar with the management team. The vision is aligned with the company's business objectives. It highlights effective communication practices with management strategies.

The Hoshin Kanri approach gives the opportunity management to include ideas from customers team which helps share knowledge and ideas at every level. This provides a more productive action being taken at the organizational level.

In a company, after understanding the strategy with the Hoshin Kanri methodology, an action strategy is created. This document is sent to all departments for implementation. Regular reviews take place to evaluate progress.

To start with a new Hoshin Kanri strategy or methodology, the approach that should be taken is deciding a focused vision that everyone interprets in the company. After approval, provide an system and rules for conducting and implementing the Hoshin Kanri methodology. Follow with funding that encourages team members to be problem solvers, and provide support as needed to train.