1. Kaizen – Continuous Improvement
Year 12 – Operations Management

2. Introduction
Kaizen is a philosophy of ongoing improvement based around small changes involving everyone – managers and workers
There are 2 key elements:
Improvements are based around people and their ideas rather than investment in new technology.
Each change on its own may be of little importance. However, if hundreds of small changes are made the effect of all of them together can be huge.

3. Components of Kaizen
In order for Kaizen to work, all the employees must contribute and accept the culture of the business.
The business must encourage:
Teamworking
Empowerment – contribute to decision making
Performance targets
Contribute ideas of improvement
One employee has 2 jobs – doing the job and looking at ways of improving it.

4. Potential problems of Kaizen
Culture
All employees must be proud of contributing ideas. There is no payment for ideas, the workers are informed of the culture at recruitment
Resistance to the culture;
From management – unwilling to pass decision making to the workers (autocratic)
From employees – staff may be reluctant to give ideas, may see empowerment as more effort and work.

5. Problems contd. Training cost
It is difficult to change the culture and attitudes of employees.
Training is required to change attitudes.
This can be costly and take a long time.
Justifying the cost
Managers find it difficult to justify the decision to train employees as it is hard to prove the benefits
It is easier to estimate the benefit of investing in machinery.

6. Evaluation of Kaizen
Sometimes solutions are needed quicker than kaizen will provide.
However, good as a continuous practice which shows a commitment to excellence.
Cheaper alternative to investing in technology.
Commitment to employees - their development and involvement. Recruit best people.