CPIM Practice Exam

What does "Hoshin" refer to in a business context?

1. A financial audit process

2. A system of employee evaluation

3. A statement of objectives

4. A customer feedback mechanism

The correct answer is: A statement of objectives

Hoshin, in a business context, refers to a strategic planning methodology that helps organizations define their long-term goals and objectives. It emphasizes alignment of individual and departmental objectives with the overall vision of the organization. This process typically involves setting a "Hoshin statement" that articulates the key objectives for a specific time period, ensuring that all employees understand the direction of the company and how their work contributes to achieving these goals. This approach fosters a united effort towards shared strategic priorities, promoting accountability and focus throughout the organization. The other options do not capture the essence of what Hoshin represents. A financial audit process is concerned with examining financial documents for accuracy, while a system of employee evaluation focuses on assessing individual employee performance. A customer feedback mechanism involves gathering insights from customers, but does not inherently relate to the strategic objectives within an organization.