A Hancho is the first management level in a lean organization. A hancho is the technical manager or team leader (speaker - Japanese chô) in one part of the process or a small group (Japanese han) and typically consists of 6 to 10 employees. A Hancho masters all processes in his /her area, receives a slightly higher wage (5-10 %) than normal operators and is selected and appointed by the company. The hancho’s responsibilities include reacting to abnormalities and promoting standardized work and the process of continuous improvement.

In order to increase productivity the Hancho is the key player in his role as a team leader. Above the Hancho level your organization, depending on size, has the group leaders which are having a larger number of employees underneath them.

In order to implement the role of a Hancho you need define several aspects upfront. Just answer some questions to yourself:

1. How many Hanchos do we need?

2. What will be their daily tasks?

3. Which qualifications are a necessity?

4. Which employees are suitable for this role?

5. Does the employee have the right professional and social qualifications?

At Toyta e.g. the Hancho has following tasks:

You see that most of the time is used for problem solving and the dealing with absence. In best case the Hancho is dedicated to only this tasks, because he contributes the most for a successful continuous improvement management on the shop floor.