Kaizen: Continuous improvement

In Japanese Kaizen is what comes to mean "continuous improvement". it is based on the idea that small, ongoing positive changes can reap significant improvements in contrast to approaches that use radical or top-down changes to achieve transformation. Kaizen, as an approach, was developed to lower defects, eliminate waste, boost productivity, encourage worker purpose and accountability and promote innovation. Kaizen is based on the belief that everything can be improved, and nothing is the status quo.

10 principles of Kaizen

The 10 principles that address the Kaizen mindset are commonly referenced as core to the philosophy in order to enable the right mindset throughout a company.  The 10 principles are:

1. Let go of assumptions.
2. Be proactive about solving problems.
3. Don't accept the status quo.
4. Let go of perfectionism and take an attitude of iterative, adaptive change.
5. Look for solutions as you find mistakes.
6. Create an environment in which everyone feels empowered to contribute.
7. Don't accept the obvious issue; instead, ask "why" five times to get to the root cause.
8. Cull information and opinions from multiple people.
9. Use creativity to find low-cost, small improvements.
10. Never stop improving.

There are several reasons why Kaizen can be an advantage for an organization:

1. Kaizen's focus on gradual improvement can create a gentler approach to change in contrast to big efforts that may be abandoned due to their tendency to provoke change resistance and pushback.
2. Kaizen encourages scrutiny of processes so that mistakes and waste are reduced.
3. With fewer errors, oversight and inspection needs are minimized.
4. Employee morale improves because Kaizen encourages a sense of value and purpose.
5. Teamwork increases as employees think beyond the specific issues of their department.
6. Client focus expands as employees become more aware of customer requirements.
7. Systems are in place to ensure improvements are encouraged both in the short and long terms.

Examples of Kaizen

Toyota is arguably the most famous for its use of Kaizen, but other companies have successfully used the approach. Here are three examples:

• Lockheed Martin. The aerospace company is a well-known proponent of Kaizen. It has used the method to successfully reduce manufacturing costs, inventory and delivery time.
• Ford Motor Company. When lean devotee Alan Mulally became CEO of Ford in 2006, the automaker was on the brink of bankruptcy. Mulally used Kaizen to execute one of the most famous corporate turnarounds in history.
• Pixar Animation Studios. Pixar applied the continuous improvement model to reduce the risks of expensive movie failure by using quality control checks and iterative processes.