Kaizen Research Paper
Introduction
The Japanese term kaizen directly translates to “change good” and has become ubiquitous for “continuous improvement.” [1] It is most famously linked to the Toyota Production Method, the paragon of business and manufacturing practices after icon Taiichi Ohno put Japan on the map again after World War II. [2] In fact, Eric Ries states in The Lean Startup that “Toyota has built the most advanced learning organization in history.” [3] After rippling through the automotive firms, Toyota’s influence extended to other industries through the 20th and 21st centuries, and we still find them in practice to this day. Three companies that demonstrate a commitment to kaizen are Apple, Lockheed Martin, and SpaceX.
Apple
Apple is a company known for innovation. Steve Jobs grew Apple from a nascent computer company to a lauded corporation that Tim Cook has transformed into a firm regularly in the running as the most valuable company in the world.
Apple, however, finds its success from not being the first to do something but being the best. Just as Henry Ford didn’t invent the automobile but perfected the process by which automobiles are made, Steve Jobs has uniquely been able to pair design with function [4] and compete with Microsoft for valuation while commanding a much smaller portion of the personal computer market. Apple continues to generate new products, ever redefining and disrupting itself. Though they started with computers, Apple is also known for the iPod, iPhone, Apple Watch, AirPods, iPad, and, to a lesser extent, their Apple Vision virtual reality headset and Apple Pencil stylus. In fact, Notre Dame business professor Timothy Hubbard said that Tim Cook’s tenure at Apple turned it into a company that was “the best at refining, scaling and defending an extraordinarily powerful system”. [5]
Their software pairs seamlessly with their hardware, creating an ecosystem that allows them to continue building their customer base as they become more ingrained. Apple’s success in hardware, though, “is due largely to the fact that they streamlined their production and their products, leaving out any non-value-adding technology.” [4]
We see Apple’s use of the DMAIC framework show their commitment to the customer. [6] The process—define, measure, analyze, improve, and control—is a continuous improvement technique seen in Apple’s innovative approach to sales. They have so clearly defined their customer that they do not build what customers ask for, but instead anticipate and delight customers through knowing them better than they know themselves. “Steve Jobs once said, ‘you can’t just ask customers what they want and then try to give that to them. By the time you get it to build, they’ll want something new,’ which may suggest that the approach of capturing the Customers’ requirements and building a solution based on this is not applied at Apple.” [4]
Apple Stores also very clearly demonstrate a commitment to 5S—sort, set in order, shine, standardize, and sustain. Their sleek appearance is organized, standardized, and minimalist. “Clean lines, uncluttered tables, and a straightforward style match the simple look of Apple’s devices. This makes the transition from product use to retail environment seamless, highlighting Apple’s consistent brand message.” [7]
Lockheed Martin
Lockheed Martin is a legacy defense contractor born of multiple mergers and acquisitions throughout the 1900s and 2000s. [8] As such, their facilities are a mismatched collection scattered across the country. In 2004, multiple hurricanes served as the catalyst to build a new factory for their Missiles and Fire Control business area. [9] Kaizen produced significant improvements when designing a new facility. The size was reduced from 75,000 square feet to 30,000 square feet; the smaller building can handle an increased capacity of 300%, and operating costs have been cut by 15%. The new manufacturing facility is co-located with office buildings and features a new automated storage and retrieval system (AS/RS) made by Toyota Automated Logistics. While takt time is the preferred method of measurement as it’s tied directly to customers’ needs, Lockheed’s cycle time at this facility has been reduced from 7 days to 1.5 days. [9]
Lockheed cited several key tools that allowed them to cut waste. Value stream mapping reduced the steps of a process from 113 to 45. Factory floor arrangement and flexibility through wheeled workstations decreased inventory by 44%. Implementing a “pull environment” decreased work-in-progress kits from 282 to 36. [9]
Lockheed continues to pursue continuous improvement efforts company-wide through their 2024 rollout of 1LMX, “implementing a new operational structure designed to streamline our processes and systems.” The key benefits they cite as a focus for this rollout are process standardization, system modernization, enhanced transparency, and improved collaboration. [10] Naturally, those are all important business practices, but process standardization is the most relevant to kaizen. This has further emphasis with a series of continuous improvement workshops offered in 2025, stating that “we’re committed to fostering a culture of excellence and efficiency throughout our supply chain. By working together to identify and eliminate waste, streamline processes, and drive innovation, we can unlock new levels of performance, quality, and customer satisfaction.” [11] While it may not seem like much, this is encouraging, as continuous improvement efforts are sustained and concerted introspection on how to implement change for the better. That momentum can be difficult to maintain without emphasis from leadership buy-in.
SpaceX
Elon Musk famously touts thinking from “first principles” to impact the industries he works in. In fact, the canonical story of SpaceX’s start was Musk flying home from Russia after trying to buy a rocket. He then asked how much it would cost to build a rocket. His challenging of engineers through the “five whys” is a major theme of why they find success. [12] [13] One need only look at their rockets’ reusability:
Why are rockets so expensive? Because they are single-use.
Why? Because we haven’t figured out how to reuse them?
Why? Because it’s a hard engineering challenge.
Why? Solid rocket boosters can only be ignited once.
Why don’t we use liquid fuel? It’s more volatile and difficult…but possible.
Oftentimes, SpaceX solves problems through vertical integration. When an engineer tried to procure an actuator, “A vendor quoted $120,000 and eighteen months of development. SpaceX’s engineers built it for $3,900 by summer.” [12] Another Five Whys analysis would lead the engineers to realize how much markup there is through multiple subcontractors before it ever reaches a prime contractor like SpaceX.
An additional simplification that made the process of new rocket design dramatically more approachable was to standardize the company’s use of liquid oxygen and RP-1 kerosene across all stages of all vehicles. Now, everything learned from one stage translates to another stage, as well as across vehicles. This builds institutional knowledge across teams and positions them to negotiate better fuel prices at volume.
A problem ailing factory owner Phil Jenkinson experienced in The Gold Mine was dealing with his customized DG product line. [14] SpaceX solved this by only offering their single, standardized product offering: “SpaceX published a ‘Falcon User’s Guide’ with defined bolt circles, electrical connectors, and fairing environments. Customers design to SpaceX’s spec instead of demanding customizations. The standard 5-meter fairing became the industry norm. Satellite orbits adjusted to Falcon performance curves.” [12] SpaceX can lock in their process while also making it simpler on themselves through that standardization, paired with unparalleled reliability.
Conclusion
You can see Toyota’s influence reflected across industries from consumer electronics to aerospace. Many tools companies use to improve operations fall under the kaizen umbrella, but more importantly, are championed by insiders, ensuring a mindset and culture of continuous improvement. Apple utilized DMAIC and standardization. Lockheed Martin improved cycle time, implemented a pull system in their factory, and provides employee training. SpaceX uses first principles, vertical integration, and standardization. [12] Taiichi Ohno’s influence continues on, neatly summarized by a modified quote from The Lean Startup: “There is a reason that all past management revolutions have been led by engineers like [Ohno]: management is human systems engineering.” [3]
References
[1] The Real Meaning of Kaizen by Katie Anderson
[2] Taiichi Ohno
[3] The Lean Startup by Eric Ries
[4] Six Sigma Leadership Profile: Apple
[5] New era as Apple names new boss to replace Tim Cook after 15 years by Kali Hays and Dearbail Jordan
[6] Does Apple use Lean Six Sigma? by Olivia Chalmers
[7] Apple Retail Stores Push the Boundaries of Visual Merchandising
[8] Success Story #1 Lockheed Martin Creating a New Legacy
[9] Lockheed Martin uses a mini-load AS/RS to enable lean manufacturing by Bob Trebilcock
[10] Lockheed Martin’s 1LMX: Digital Transformation and Operational Improvements
[11] Continuous Improvement Workshop Series
[12] Atoms are Cheap, Process is Pricey by Max Olson
[13] What Kaizen Techniques & Tools Can I Use?
[14] The Gold Mine by Freddy Ballé and Michael Ballé
This paper was written for my dual-degree program through Auburn University, Spring 2026 semester, for Dr. Tom Devall’s INSY 6800 Lean Systems course.