Kaizen is a Japanese word which means “Change for Better”. It actually focusses on continuous improvement by eliminating waste and work process which are overly difficult. It is a lean manufacturing tool that improves quality, safety and workplace culture. Kaizen focusses on applying small, daily changes that results in major improvements over time. For Kaizen to work successfully all employees in the organisation right from the CEO to an associate need to look for areas of improvement and provide suggestion based on their experience and observation. Kaizen benefits in increasing productivity with improved quality, ensuring better safety with lower cost and improved customer satisfaction. Kaizen benefits industries like – Manufacturing, Finance, IT, Software, healthcare etc.
Kaikaku is a Japanese term for “Radical Change”. Kaikaku makes fundamental and radical changes during a limited time in business unlike Kaizen which is focussed on incremental minor changes. Kaikaku means radical change in business in the form of project which is generally initiated by management where the result significantly impacts business. New strategy, approach, production technique, new knowledge is always introduced in kaikaku. Kaikaku generally comes in when management sees the stagnancy in business through the ongoing Kaizen with not much adequate result in relation to the effort. Kaikaku projects often results in improvement in range of 40-50%, Kaikaku may also be termed as System Kaizen or Kaizen Blitz.
Kakushin is all about innovation, transformation, reform and renewal.
Difference between Kaizen, Kaikaku and Kakushin -
Kaizen is a continuous improvement using small incremental betterment. Kaizen involves everyone across all levels in an organisation working towards the solution for continuous improvement, this implies to minor change. Kaizen is evolutionary based on incremental improvement.
Kaikaku is implemented when there is a faster or radical change required in an organisation. Or there is stagnancy in the business improvement by Kaizen, so for faster result Kaikaku is adopted where the new technology, process, strategy is introduced by the management for significant business impact. This implies to a large step change. Kaikaku is revolutionary based on radical improvement.
Kakushin - The idea here is some change will form a complete departure from the current situation. Kakushin is all about innovation, transformation, reform and renewal. It is like replacing a complete application with some different application that supports the process in a complete different way. This kind of change will entail the disappearance of many roles and function in an organisation. In other words kakushin is where the organisation standardizes a process supporting software across the entire organisation where previously different groups had different processes and application to achieve goals.
What would a company lose if one of these concept was not utilised-
For any organisation to stay steady with the competition and ahead in their continuous improvement in today’s economy, it is essential for them to adopt to these 3 K’s – Kaizen (Change for Better), Kaikaku( Revolutionary change) and Kakushin ( Innovation). Organisations benefit for all these 3 K’s in terms of continual improvement of their processes, Transformation of their organisation culture and continuous innovation. So if a company will not follow any of these K’s , then the challenge will be faced in terms of continual growth needless of effort as the efforts put in might be futile not being systematic & methodic whereas Kaizen will easily and systematically help in improvement eradicating waste and overly difficult process, similarly for immediate improvement in business Kaizen Blitz will be helpful in bringing in radical change to the process and improve it.