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European Online Journal of Natural and Social Sciences 2013; www.european-science.

com
vol.2, No. 3(s), pp. 1094-1103 ISSN 1805-3602

Impact of Kaizen implementation on performance of manufacturing


companies’ staff
Fariba Rahmanian, Ziba Rahmatinejad
Qom University, Qom, Iran

Abstract Introduction

Astonishing progress of Japan has made every- In case we intend to consider the manager’s
one think over policy, theme of work culture and responsibilities, we find a long list that most of its
management systems of these hard-working people. items are located in sortable frames. Accordingly,
In the last analysis, improvement creation in field of scientists of management sciences have created
cost quality and planning (rate of productivity and some hypotheses that their most significant usage
delivery time) is converted to a key and major factor. is to categorize or sort these duties. One of the ap-
Kaizen is strategy of improvement based on needs proved hypotheses is Fayol hypothesis that considers
and demands of the customers. Kaizen believes that the main duties of the managers are as follow:
employees of an organization should uninterrupted- Directing and leadership, organizing, planning,
ly think over improving and maintaining improve- controlling and monitor and coordination
ment achievements in their own organization but Although there are other hypotheses in this field,
how much is their share in this movement? There but Fayol hypothesis has been accepted as far as one of
are two different approaches to achieve progress: a the most valid principles in management sciences and
gradual improvement (Kaizen) and improvement fields of the managers’ duties considering mentioning
based on the great leap (innovation). Overall, Japa- and principal criticism of Tylor views. Since we accept
nese companies prefer gradual improvement and Fayol principles as the most important duties of the
the western companies believe in innovation. Now, managers regardless other existing views in this field,
in this article, we seek to answer this question: which we want to review these principles from Kaizen view.
of this view is implementable in Iran? Improvement According to Kaizen, management duties are divided
means Kaizen and innovation; each company or into two main categories that are improvement and
organization use both Kaizen and innovation for its maintaining improvement. It is necessary to remind
survival, growth and progress. Continuous improve- that the manager doesn’t only mean official and or-
ment refers to the operation, process of achieving ganizational position that he meant and everyone who
better productions and cost reduction in production has a responsibility in the organization is assumed the
and sales operation and as a strategic goal, it con- manager or manger of that job. Today’s organizational
tains certain categories of total quality control, effi- world is full of competition and challenges. High speed
ciency increase, effectiveness surplus, improvement of changes and volatility of the environment put or-
promotion, cost reduction and elimination of de- ganization’s life at risk and menace. Among all these,
fective items (wastes) from the productive process. they want to guarantee their long stay and they think
Similarly, the managers will get involved in the base over their improvement in the market so that they have
of the job and they will truly develop partnerships’ no way but choosing modern approaches.
level and solve problems using accurate view. In recent years, the movement of productivity and
excellence has spread to Iranian organizations as well.
Keywords: Continuous Improvement, Kaizen, Various motivations as competition, show, matching
innovation, management, competition, cost re- with the public, show-off, obligation and finally real
duction evolution have resulted in different movements (Paki,

Corresponding author: Ziba Rahmatinejad, Qom University, Qom, Iran. E-mail: rahmani_2003@
yahoo.com
Copyright © Fariba Rahmanian, Ziba Rahmatinejad, 2013
European Online Journal of Natural and Social Sciences; vol.2, No. 3(s), pp. 1094-1103

1094
Social science section

2001). Considering the aforesaid issues, most of the suc- not understand even having it. In Japan, Prof. Deming
cessful organizations and companies in the world owe submit the Deming Cycle which is considered as one
their productivity and organizational dynamics to using of the main tools for quality control to gain continues
improvement systems (Masaki, 2001). One of these im- improvement and it is famous as PDCA (Do-check-
provement systems is Kaizen which is defined as con- Act-Plan)meaning design (to make action for con-
tinuous improvement in organizational workplace and a trolling results about what we had predicted and finally
view based on common sense in modern management. modifying action to remove all defects and errors).
Masaki entered term of “Kaizen” for the first time in This cycle is repeated and the product is always
the management contexts and defined it as an improve- improving. However, this cycle principally moves
ment strategy that involves and activates all senior man- upward around a cylinder because the product
agers of the organizations and operational employees. which has passed this cycle is qualitatively higher in
Using Kaizen pattern in the various organizations in ranking and all its defects have been removed.
the whole world resulted in extremely high savings in After World War II, most Japanese companies
costs of these organizations. Kaizen method is one of were forced to work almost to start from scratch. Man-
the fundamental plans to improve productivity and op- agers and employees were challenging new problems
timism of administrative, producing ad service systems every day and they would get new improvements every
(Zareh, 2005). And instead of huge investments, it re- day. In short, continuum of such companies depends
quires attempt, commitment and leadership which lead on their endless progress, so that Kaizen became a life
to customer-orientation, their more faithfulness, hav- style for the Japanese. The Japanese were lucky at that
ing productive and satisfied workforce, higher income time that various methods and tools could help flour-
and lower costs that result in customer-orientation and ishing Kaizen concept in Japan and it was announced
more faithfulness, having efficient and satisfied work- in the late 1950 and in the early 1960by certain experts
force, higher income, lower costs and more profit. Mr. as Deming and Jouran. Nevertheless, most of these
Honda from Honda Motors Co. says:” as far as the cus- systems concepts and new instruments which are be-
tomer is concerned, quality is something that one prod- ing used widely today in Japan, were developed by the
uct has it or not and there is no moderate way in this Japanese and it led to quantitative improvement, sta-
matter”. He also believed that role of management is to tistic quality control and total quality control in 1960.
attempt continuously to produce better products with
lower prices. Kaizen strategy can provide a systematic Review of literature
view to fulfill this objective. The Japanese managers are
continuously looking for finding ways of improving sys- Kaizen is a successful improvement pattern which
tems and internal processes and Kaizen is used in some has been conducted in various countries along with
fields as relations of workforce, marketing management having successful results due to its fame. Therefore, it
and relationships of goods distributors. should be noted that Kaizen implementation requires
Middle managers, workgroup’s supervisors and being localized as any other strange pattern, so that
workers actively participate in Kaizen. Japanese en- it has been attempted in such local experiences to
gineers are constantly reminded that if things do not implement and submit this pattern as well as possible.
follow the same process, no progress will be made.
Kaizen is a Japanese term which consists of two words: History of Kaizen in Iran
Kai means change; Zen means a good mode. So that, In 2000, coordinating with National Iranian
Kaizen can be defined: a change toward being better. Productivity Organization and Asia Productivity
This change has the following four main features: Organization, a five-day course on workshop of
1. Continuous and inexhaustible practical Kaizen was held for a couple of industrial
2. Regular and gradual units of Yazd. Nobody could assume that this work-
3. Typically economical and based on minor shop would be an advent of introducing a pattern for
modifications. improving and producing in the country. Instruc-
4. It’s based on public participation (Pour Khor- tor and counselor of this workshop was ShwitchiY-
sand, 2002) oushida, Kaizen counselor and former deputy of
Kaizen philosophy is based on our life style as Nissan Motors Co. This five-day workshop in which
work, society and family focusing on achieving con- some parts of working processes of industrial units
tinuous improvement (Masaki, 2001). This concept is of the participant were selected and reengineered as
ordinary and clear for most Japanese so that they do a sample was effective on changing employees’ view

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Social science section

about peripheral issues, so that National Iranian Statement of problem and significance of the
Productivity Organization immediately put imple- research
mentation of subsequent projects in other provinces
on its agenda to be followed. In 2002, National Ira- Kaizen philosophy stays on this principle that hu-
nian Productivity Organization started Kaizen im- man life including working life, social life and family
proving movement by implementing Management life should be improved continuously and constantly.
and Productivity Cycle project in five governmen- Kaizen culture and its interaction among the layers
tal organizations in Kerman and Kaizen was sent and various social organizations in Japan caused that
to the field of service and especially governmental factories are converted to universities and vice-versa,
organizations. Now, the movement of continuous worker learns from manager and the manager takes
improvement (Kaizen) in different industrial and advantages of the workers’ ideas, researcher wears
service parts of Iran started and it continues to find cardigan and comes to scene instead of sitting in Ivo-
its real position in improving productivity and the ry tower and activists of production scenes think over
country’s development. improving their jobs and refer to the research.

Successful Experience of Kaizen in Central Poly- Basic Definitions and Concepts


technic of Fars Oil Industry
Sharifi and Ghadrdani in a successful experi- Kaizen: Kaizen is a combination of two words
ence, improvement efficiency cycle was imple- from one Japanese concept that its definition refers
mented in the central polytechnic of Fars Oil In- to a change toward betters or continuous and gradual
dustry with an operational Kaizen approaches. improvement. In fact, Kaizen stands on this philoso-
176 employees of this unit participated in this phy that is not necessary to look for explosive or sud-
experience. This pattern is mainly based on the den changes for improvement of the organizations,
training programs and transmission of the key but any improvement or reform will bring productiv-
concepts and improvement methods for the em- ity enhancement if they are continuous and constant.
ployees which has been submitted in five stages Continuous and gradual improvement using
as below: employee’s participation
1- Investment and culture making to prepare KAI + ZEN = KAIZEN
employees psychologically for acceptance and co- Kaizen and innovation: Improvement means Kai-
operation in project implementation zen and innovation. Each company or organization
2- Formation of Kaizen committee containing uses Kaizen and innovation for its survival, progress
15 people which have main responsibility of Kaizen and growth. Kaizen refers to the conducted partial ex-
implementation. pressions in the existing circumstance through endless
3- Holding workshop of adornment system and attempts and innovation refers to the general conduct-
Focus-PDCA with presence of the management, ed expressions in the existing circumstance through
supervisors and members of Kaizen committee huge investment in technology with new equipment.
4- Implementation of pilot project in accep-
tance unit Objectives of the study
5- Spreading pattern to other units, complete
settlement of the pattern and In Kaizen projects, it is expected from all em-
6- Monitoring improvement activities ployees in the continuous improvement activities as:
In this experiment, more than 60 wasting cas- • All activities which are costly but do not pro-
es were identified and eliminated using scientific duce any value (Muda), should be eliminated.
principles and methods as spaghetti, fish bone dia- • All activities that are being conducted in paral-
gram and rating table. Moreover, crowd at the re- lel style (Muri) should be combined.
ception (which is normally one of the most crowd- • Those activities which are necessary to comple-
ed departments of the health care organization) ment and improve service quantitative level (Mura)
has been reduced by 30 % which has a remarkable should be added to the organization’s activities. This
role in improving employee’s performance and sat- movement or Mu3 movement forms base of work-
isfaction in this unit. This pattern could enhance shops’ actions of Gemba Kaizen (practical Kaizen).
reliability of the conducted tests by 7 % (Sharifi, Kaizen is not a static theory but it is a concept
Ghorbani, 2005) inducing a practical and exclusive thought.

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Social science section

Kaizen characteristics and innovation of these two cases (Kaizen or Innovation) consid-
ering economic situation, organizational objec-
Each organization after being established tives, type of production, quality of production
should commence a constant attempt to maintain and the existing social environmental situations
its existing situation. It is possible to suggest one in the organization.

Table 1. Kaizen characteristics and innovation


Row Type of Variables Kaizen Innovation
1 Effect Long-term and stable but non-thriller Short-term but thriller
2 Speed Small steps Long steps
3 Time spectrum Continuous and long intermittent and short
4 Changes Gradual and steady Sudden with fluctuation
5 Cooperation Inclusive A number of elites
Extreme individualism, individual
6 Views Collectivism, collective, systematic
ideas and efforts
7 Methods Maintenance and improvement Category removal and recreation
Technical management, conventional Technologic innovations and new
8 Theme
and modern technology theories
Need to low investment and more Need to more investment and low
9 Practical needs
attempt to maintain it attempt to maintain it
10 Evaluation criteria Process and attempt to get better results Profitability of the service
11 Advantage Appropriate for low-growth economy Appropriate for a fast-growing economy
12 Directions Population Technology

Kaizen against innovation shown in diagram 2 is found in the industry having


advanced technology. Such companies start their
There are two different approaches to achieve jobs successfully and they grow swiftly. Moreover,
progress: a gradual improvement (Kaizen) and im- they are also approved at the same speed due to re-
provement based on the great mutation (innovation). duction of initial successes or market decline. The
Most Japanese companies prefer gradual improve- worst companies are the ones in which nothing but
ments and western companies believe in innovation. maintaining is done. In such companies, there is no
Senior management/ Middle management/Ad- motivation for Kaizen or innovation and changing
mins/Workers is only imposed through market situation and com-
Innovation petition and the management doesn’t follow any
Kaizen specific goal.
Maintenance

Figure 1. Impression of Japanese Management from Figure 2. Job functions based on innovation
job functions (maintenance, innovation, Kaizen)
(Imani, 1995). The most basic concepts of Kaizen

In the perceptions of the western managers, a Kaizen is an umbrella-shaped concept including


few spaces have been predicted for Kaizen. Some- most specific Japanese management methods which
times, another type of management which has been have recently found international fame (Fig. 3).

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Social science section

11- Comprehensive system of productive repairs


12- Quality improvement
• Total Quality • Customer Focus
13- Untimely and flawless productivity
Management (TQM) • Science and 14- Activities of small groups
• Cores of quality control technology robots
15- Mutual cooperation of management and
• Automation • Proposals system
• Comprehensive system • Regulations of employees
of productive repairs workplace 16- Productivity improvement
• Just-in-time productivity • Quality
• Activities of small group improvement
17- Productivity of new production
• Mutual cooperation of • Flawless
productivity
management and
employees • Productivity
Kaizen and QC (Quality Control)
improvement
• Productivity of new Kaizen in a workgroup demonstrates constant
production
cores of quality control and other activities of a small
1- Customer Focus group which uses various statistical tools to solve
2- Long-term and system-oriented thinking problems. This constant view needs complete imple-
3- More emphasis on manpower and equipment mentation of planning cycle, results evaluation and
4- Participation of all organization members operations and it requires attempts of team members
5- Emphasis on process rather than outcome in order to identify problems, their reasons, experi-
6- A comprehensive quality control menting and analyzing them and submitting solution.
7- Proposal system These attempts must result in standards establish-
8- Cores of quality control ment or new instructions. In June 1954, the Union
9- Automation of Japanese Scientists and Engineers invited Juran to
10- Regulations of workplace speak at the seminar on quality control management.

Figure 4. Process-based model of quality management system

It was the first time that quality control was ucative program to quality control.In1960, the first
studied after general management. In 1956, radio of month of national quality control was held. At the
short-wavelength of Japan allocated a part of its ed- same year, signs and flags of quality were officially

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Social science section

used. Pattern of a quality management system based Deming tenet


on the process has been shown in figure 1. Prof. Deming whose ideas were not consid-
Diagram 6 shows that the customers have an ered much by the Americans in 1950, was accepted
important role in determination of requirements or warmly in Japan and his proposal strategies for im-
demands as inputs. Monitoring customer’s satisfac- proving quality of Japanese goods made this country
tion requires comprehensive information regarding as one of the most advanced and superior countries
customer’s perception in this matter whether the in the World Economics.
organization could fulfill customer’s demands or Principles of Deming in his famous cycle have
not? Kaizen and Total Quality Management (TQM) been shown in diagram 6.
(Inclusive)is objective of TQM, efficiency improve- The remarkable note of this circle is that the ex-
ment of the management in all levels. isting status is always the main subject for planning.
After planning for passing the actual situation, the
Kaizen and Management executive actions to achieve the predicted objec-
tives will commence and its weak and strong points
Management consists of two major factors: will be clear by evaluating method of implementing
Maintenance and Improvement. Maintenance re- programs. In the last stage, modifying actions start
fers to maintaining activities of the existing stan- for improving the conducted activities and this cycle
dards in technology, management and operations. continues similarly.
Improvement refers to the measurements that are On the other hand, the existing situation is never
used to improve these standards. completely satisfying according to the Deming te-
net and we should continuously seek improvement
Model of Kaizen Management of the situation. Another point is that implementa-
Figure 5 demonstrates method of perceptions of tion of the Deming Tenet commences always from
the Japanese from duties: planning and terminates to the planning once more.
Namely, if a plan is adjusted and implemented (in
case it faced a problem in implementing) we should
think over modifying stages of plan implementa-
tion and we should finally make required actions for
amending implementation process without wasting
time.
Thus, we should plan for implementing other ac-
tivities. The point is that if adjusting plan faces any
Figure 5. Kaizen Management Model
problem while implementing, we are not allowed to
easily interrupt the plan but also we should look for
As it is observed, as we travel from the top
reasons of the plan’s inability. In case we leave the
levels of the management toward the lower lev-
adjusted plan for organization improvement undone,
els, responsibilities of improving group is re-
the main subject of the plan will be questioned again.
duced and maintaining responsibilities are in-
In other word, this question will be raised that why we
creased instead. As we find out from this diagram changed and improved the existing situation.
is that the managers of the higher levels should
always spend a majority of their time improving
4-- Carry out the 1-Planning
the organization and maintaining duties should necessary reforms
A P
be assigned to the lower levels. How do they re-
ally act in our organizations? A manager who
spends much of his time reviewing letter initials
C D
which have to be done by the experts, has never
2- Implementation of
enough time to improve the organization. There- 3- Evaluation and
the pilot program
fore, Kaizen believes that an organization should control
always think over improving and maintaining Figure 6. The Deming Cycle
improvement achievements in their own organi-
zation, but their shares from this movement has As you can see, the base of Japanese thought for
been demonstrated in the above diagram. deciding and implementing the decision in the orga-

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Social science section

nization was the said stages above. It is noteworthy Continuous improvement


to mention that the Deming Cycle is followed inter- If each manager of the successful companies is
minably. Therefore, the common method (Kaizen) asked on what the senior manager emphasizes more.
known as planning, implementation, evaluation The response would be: Kaizen (improvement). Im-
and action can enhance the used processes. proving standards means to determine higher stan-
How structural variables influence on innova- dards. After determination of higher standards, the
tion? Based on extensive research, we can express management is responsible for monitoring new stan-
three statements considering the structural variables. dards. The continuous improvement is merely possible
Firstly, the mechanical structure have a positive ef- through monitoring higher standards on behalf of the
fect on innovation because they have lower work ex- employees, so that maintenance and improvement be-
pertise, less regulation and decentralization is more came two inseparable components for majority of Jap-
in them comparing with the mechanistic structures. anese managers. What is improvement? Improvement
Furthermore, it increases flexibility, strength, and means Kaizen and innovation. Kaizen is called to pro-
fertility that make adoption of innovations easier. cessed partial expressions in the existing circumstance
Secondly, easy access to frequent resources is a key through relentless efforts and so-called processed gen-
factor for innovation. Resource frequency can en- eral innovation in the existing circumstance through
able the managers to spend money on innovation vast investment in the technology with new equipment.
and accept failures. As a result, relationship between As diagram 7 shows, the organization should continu-
units assists breaking possible obstacles against in- ously improve effectiveness of quality management
novation by accelerating in mutual action. Howev- system through application of quality strategy, qualita-
er, none of these three variables can exist unless the tive objectives, audit upshot, data analysis, reforming
managers are committed to these three factors. and preventing actions and management revision.

Continuous
Improvemen
t

Quality policies

Management Planning
Review

Review and
corrective action Implementation
and operation

Figure 7. Continuous improvement

Twenty principles of management in Kaizen 6- In order to find out problem’s root, ask five
1- Never say why. Think how to do it. times “ why” ?
2- Don’t be worried about the problem and just 7- Gemba is real place of error occurrence.
take action to fix it. Do not try to solve environmental problems at the
3- Don’t be satisfied from the existing situation. workplace.
Believe that there is always a better way. 8- Use always little and modern information
4- If you make a mistake, immediately try to fix it. and data in order to solve the problem.
5- Don’t look for perfection to fulfill your ob- 9- To solve problems, do not spend a lot of money.
jectives. If you are 60% sure about fulfilling the ob- In case you cannot find a wise solution, you should
jectives, take an action. ask your colleagues and use common wisdom.

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Social science section

10- Never forget the details and fine points. lateral relationship with lower layers of the organization.
Most problem stem from such fine points. 16- Human has a variety of abilities. Use multi-
11- Senior management support is not limited skill patterns and job make wealth to flourish them.
to words and promises. Management must have 17- Make merely the activities which brings
both tangible and evident presence. added value for your organization.
12- Do not hesitate to assign authority to subor- 18- Don’t forget that 5t is base and foundation
dinates wherever is possible. of creating high-quality productions.
13- Never look for guilty. Don’t judge hastily. 19- To solve problems of your workplace based
14- Visual management and information transmis- on workgroup’s patterns.
sion are the best tools collectively to solve problems. 20- Muda removal is an endless process. Don’t
15- One-way communication command makes ever get tired of it.
organizational problems more complicated from top to - Hierarchical structure of decision making in
the bottom. The senior management should have a bi- organizations:

Unit …

Commercial
department
Senior
Manufacturing unit management

Quality unit
Middle
Administrative and management
Financial Unit
Supervisions
Employees
Planning unit

Figure 8. The hierarchical structure of decision in organization

Tylor can make an organization manageable ferent departments and various management layers. In
through a systematic method by dividing duties and these organizations, there are various stations that some
specializing activities of an organization in competi- of them convert to bottleneck themselves. Everyone is
tive situation of today’s world that customers express responsible for their own job and they have no informa-
the first word in determining type and quality of the tion about activities of their own colleagues. Circulation
aforesaid services and the world cannot fulfill them. of information and documents are proceeding slowly in
Today, customers of organizations which produce the organization. Similarly, the required information for
public services have other expectations. They seek decision-making in various layers of the organization
other services which have three features: get late to the hand of the managers and they don’t have
• Cheaper than private providers accuracy due to prudential sublimations. At the best
• In a period of time quicker than private sector situation, information is not updated and they have the
• With a desirable quality for him least possible value for decision-making.
• In such circumstances, merely organizations What should we do to meet needs of our cus-
that are familiar with modern methods of manage- tomers in the organization? Is it possible to deform
ment and organization can meet customers’ need hierarchical structures and create new structures
and doing suitable changes compatible with fluctua- quickly? Experience of implementing changing tech-
tions of the market. niques from the top and at once implementation in
Customers have normally no choosing right in the whole organization prove opposite of this issue.
this organization. In short, these organizations face The organization culture dominating most of the
some problems as below: current organizations doesn’t allow any fundamental
Hierarchical organizations practically construct in- changes happening. In the other word, management
visible walls among their own employees by creating dif- course is short in our organization and the managers

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Social science section

expect to find tangible results at a rational time. What search evaluates establishment of functional
should we do? Secret of success should be searched Kaizen in a producing company before after in-
in improvement approaches which have pointed to. tervention (Kaizen)and its evaluation has been
done by SPSS software and all utilized variables
Method of Implementation are as below:
All variables are numeric and rating rank is from
This project intends to achieve the aforementioned 1 to 5
objectives relying on the previous experiences by the aim
of improving productivity, costs reduction, processes Variable’s name Variable’s name
analyses, wastes elimination, optimization of workplace Age Former innovation
and submission of required trainings to the employees. Gender Former results
1) To study the existing situation ( at zero situation) Background Subsequent quality
2) General conference on Kaizen introduction Education Subsequent quantity
3) To form kaizen team Former quality Subsequent cooperation
4) To hold workshop of adornment system Former quantity Previous quantity
5) To implement the first step of adornment system Former cooperation Previous cooperation
6) To implement the second step of adornment Former knowledge Previous knowledge
Former trust Previous time
system
Former time Previous time
7) To prepare comprehensive map of processing
8) To modify process
It is an experiment over quality management
Functional aspects of Research Project
and the sampling was done randomly. This re-

Figure 9. Evaluation of mean of seven functional aspects in employees prior and after Kaizen implementation

Conclusion this success was done with no major investments. Kai-


zen results in decrease of the breakeven point and forces
This study intended to explain Kaizen and innova- the management to pay more attention to customers’
tion along with disclosure of nature of performance and needs and creates a system to consider customers’ de-
its role. Advantage of Kaizen is obvious to whom that mands. Improvement means Kaizen and innovation;
have already performed it. Kaizen leads to greater quali- each company or organization use both Kaizen and
ty and more productivity. Where Kaizen was first imple- innovation for its survival, growth and progress. There-
mented, the management clearly found an increase of fore, Kaizen refers to processed partial expressions in
30%, 50% and even 100% or more in productivity and the existing situation through interruptible attempts and

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Social science section

processed general expressions in the existing situation organizations and factories due to lack of ability of this
innovations through huge investment in technology or pattern in reducing costs and improving productivity.
equipment. After determination of higher standards,
the management is responsible for monitoring new References
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Openly accessible at http://www.european-science.com 1103

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