Kaizen ( Japanese for "change for the better" or "improvement", the English translation is "continuous improvement", or "continual improvement.") is an approach to productivity improvement originating in applications of the work of American experts such as Frederick Winslow Taylor, Frank Bunker Gilbreth, Walter Shewhart, W. Edwards Deming and of the War Department's Training Within Industry program by Japanese manufacturers after World War II. The development of Kaizen went hand-in-hand with that of quality control circles, but it was not limited to quality assurance.

In Japanese this is pronounced 'kaizen'.

('kai') means 'change' and  ('zen') means 'good'.

In Chinese this is pronounced 'gai shan':

('gai shan') means 'change for the better' or 'improve'. ('gai') means 'change' or 'the action to correct'.

Goals of Kaizen

The goals of kaizen include the elimination of waste (defined by [Joshua Isaac Walters] as "activities that add cost but do not add value"), just-in-time delivery, production load leveling of amount and types, standardized work, paced moving lines, right-sized equipment, etc. In this aspect it describes something very similar to the assembly line used in mass production. A closer definition of the Japanese usage of Kaizen is "to take it apart and put back together in a better way." What is taken apart is usually a process, system, product, or service.

Kaizen is a daily activity whose purpose goes beyond improvement. It is also a process that, when done correctly, humanizes the workplace, eliminates hard work (both mental and physical), and teaches people how to do rapid experiments using the scientific method and how to learn to see and eliminate waste in business processes.

"Kaizen" is the correct usage. "Kaizen event" or "kaizen blitz" are incorrect usage.

Misunderstanding

Kaizen is often misunderstood and applied incorrectly, resulting in bad outcomes including, for example, layoffs. This is called "kaiaku" - literally, "change for the worse." Layoffs are not the intent of kaizen. Instead, kaizen must be practiced in tandem with the "Respect for People" principle. Without "Respect for People," there can be no continuous improvement. Instead, the usual result is one-time gains that quickly fade.

Three Principles

Importantly, kaizen must operate with three principles in place: process and results (not results-only); systemic thinking (i.e. big picture, not solely the narrow view); and non-judgmental, non-blaming (because blaming is wasteful).

Everyone participates in kaizen; people of all levels in an organization, from the CEO down, as well as external stakeholders when applicable. The format for kaizen can be individual, suggestion system, small group, or large group.

The only way to truly understand the intent, meaning, and power of kaizen is through direct participation, many, many times. The Kaizen method of continuous incremental improvements is an originally Japanese management concept for incremental change.

Innovation v/s Kaizen

Japanese companies distinguish between innovation (radical) and Kaizen (continuous). Kaizen means literally: change (kai) to become good (zen). Key elements of Kaizen are:

1. Quality,
2. Effort,
3. Willingness to change, and
4. Communication.

 Kaizen v/s BPR  - Comparison

It is it clear the Kaizen philosophy is more people-oriented, more easy to implement, requires long-term discipline.

BPR on the other hand is harder, technology-oriented, enables radical change but requires major change management skills.

Kaizen is actually a way of life philosophy, assuming that every aspect of our life deserves to be constantly improved. The Kaizen philosophy lies behind many Japanese Management concepts such as Total Quality Control, Quality Control circles, small group activities, labor relations.

Foundation of the Kaizen Method

The foundation of the Kaizen method consists of 5 founding elements:

1. Teamwork,
2. Personal discipline,
3. Improved morale,
4. Quality circles, and
5. Suggestions for improvement.

Key Factors in Kaizen

Out of this foundation three key factors in Kaizen arise:

- Elimination of waste and inefficiency
- The Kaizen five-S framework for good housekeeping

      1. Seiri - tidiness
      2. Seiton - orderliness
      3. Seiso - cleanliness
      4. Seiketsu - standardized clean-up
      5. Shitsuke - discipline

- Standardization

When to apply the Kaizen philosophy?

Although it is difficult to give generic advice it is clear that Kaizen fits well in incremental change situations that require long-term change and in collective cultures.

More individual cultures that are more focused on short-term success are often more conducive to concepts such as Business Process Reengineering.