Kaizen:
Kaizen is the Japanese word for continuous improvement using small incremental changes. Kai means change, Zen means for the better. When applied to the workplace, Kaizen means continuous improvement involving everyone, managers and workers alike, every day and everywhere, providing structure to process improvement. Lean IT Kaizen is an approach for solving problems and forms the basis of incremental continual improvement in organizations. A problem is a difficulty that has to be resolved or dealt with. Kaizen is about continuously improving: everyday, everyone and everywhere. Many small improvements implemented with Kaizen produce faster results with less risk.
Kaikaku:
Lean also recognizes that there are moments that more radical, step change is necessary. This type of change is known as Kaikaku. This refers to a revolutionary change to the existing situation. Daily/Hourly recording of machine data, Kaikaku would be the upgrade of an application currently in use from a manually recording to automatic recording after certain set time.
Kakushin:
A third type of improvement known within Lean is Kakushin. The idea here is that some change will form a complete departure from the current situation. It is about innovation, transformation, reform and renewal. Again manually recording system with automatic recording system with storing memory and can retrieved as an when required. Also highlighting with alarm and indication if crosses control limit values. This kind of change will entail the disappearance of many roles and functions within a business. Both from technological and business process perspectives, this example represents a complete departure from the current way of working.
If any of these is not utilised in a company the operating cost of the company will remain same with no change in the process. Also the profit margin will deteriorate with the inflation as process remains same without any improvement.