JAY ERICKSON C.

TIO
TECHNOLOGY MANAGEMENT
January 30, 2015

INNOVATION and KAIZEN

Innovation is the catalyst to growth in the fields of economics and business. The
rapid advancements in transportation and communications over the past few decades
have outpaced the old methods and economic model for todays global economy. An
economist by the name of Joseph Schumpeter argued that industries must incessantly
revolutionize the economic structure from within, that is innovate with better or more
effective processes and products, such as the connection from the craft shop to
factory. Schumpeter is great contributor to the studies on innovation.i
Entrepreneurs will always look for better ways to satisfy their consumer base.
They can do this with improved quality, durability, service, and price.

This

improvements

and

are

the

organizational strategies.

fruits

of

innovation

with

advanced

technologies

ii

In Japanese management, kaizen means continuous improvement involving

the entire workforce from the top management to middle managers and workers. The
origin of Japans kaizen movement was the quality control method imported from the
United States (US) in the post-World War II period. Japan assimilated and developed
this as its own management practice method which later even surpassed performance
in the US.

This method that will be later be known as kaizen, expanded

exponentially among small and middle sized Japanese companies.

Kaizen means that improving the processing in any and all aspect of the
business. This concept is a part of Total Quality management (TQM). It is used and
applied in variety of businesses.

These businesses include healthcare, tourism,

educational institute, and banking and financial services etc. More importantly, Kaizen
is a system of continuous improvement in quality, technology, processes, company
culture, productivity, safety and leadership.
The word Kaizen means "continuous improvement". It originated from the
Japanese words ("kai") which means "change" or "to correct" and the word ("zen")
which means "good". Kaizen is a system that involves every staff member -

management, secretariat, development, sales, and production. Every employee is

encouraged to come up with small improvement suggestions on a regular basis. This is
not one month or once a year activity. It is continuous.

The 5 S or 5 steps is defined by the Kaizen Institute as

The 5 Steps are as follows:iii

Sort: Sort out & separate that which is needed & not needed in the area.
Straighten: Arrange items that are needed so that they are ready & easy
to use. Clearly identify locations for all items so that anyone can find

them & return them once the task is completed.

Shine: Clean the workplace & equipment on a regular basis in order to

maintain standards & identify defects.

Standardise: Revisit the first three of the 5S on a frequent basis and

confirm the condition of the Gemba using standard procedures.

Sustain: Keep to the rules to maintain the standard & continue to
improve every day.

5S or 5 steps is a systematic approach allowing groups and teams to organize

their workplace in the most efficient manner. It organizes the work environment and
forms a firm foundation as a base for their drive for continuous improvement. It is
equally applicable & successful in all sectors helping to achieve high impact results.

i Schumpeter, J. A. (1943). Capitalism, Socialism, and Democracy (6 ed.). Routledge. pp. 8184. ISBN 0-415-10762-8.
ii Heyne, P., Boettke, P. J., and Prychitko, D. L. (2010). The Economic Way of Thinking. Prentice Hall, 12th ed. Pp. 163.
iii http://www.kaizen.com/knowledge-center/what-is-5s.html