Kaizen

Definition

Kaizen is a Japanese term meaning 'continuous improvement,' focusing on small, incremental changes to enhance efficiency and quality. It is often implemented in business processes to optimize operations and improve performance.

5 Must Know Facts For Your Next Test

1. Kaizen emphasizes employee involvement at all levels for continuous improvement.
2. It originated in Japan and has been widely adopted in various industries worldwide.
3. In managerial accounting, Kaizen can lead to cost reductions by streamlining processes.
4. Kaizen promotes a culture of ongoing change rather than sporadic, large-scale transformations.
5. Key principles include teamwork, discipline, improved morale, and quality circles.

Review Questions

• What is the primary focus of Kaizen in a business context?
• How does implementing Kaizen affect cost management in managerial accounting?
• What are some key principles that underpin the Kaizen philosophy?

Related terms

Lean Manufacturing: A systematic method for waste minimization within a manufacturing system without sacrificing productivity.

Total Quality Management (TQM): An organizational approach that seeks to improve quality and performance through continuous feedback and refinement.

Just-In-Time (JIT): An inventory management strategy aimed at reducing inventory costs by receiving goods only as they are needed in the production process.