VOLUME 2, ISSUE 1, (JANUARY, 2014) (ISSN: 2321-1709) website:- www.gejournal.net GE - International Journal of Management Research Double-Blind Peer Reviewed Refereed Open Access International Journal www.gejournal.net email: gejournal.net@gmail.com Page 1 KAIZEN COSTING: A CATALYST FOR CHANGE AND CONTINUOUS COST IMPROVEMENT Manmeet Kaur Assistant Professor in Commerce Govt.College, Sector -14, Gurgaon [India] Abstract ________________________________________________________________ The paper presents the application of kaizen costing as a tool of positive changes and continuous cost improvement. There is confusion between concepts ‘Kaizen’ and ‘Kaizen Costing’ in previous studies. The paper discusses that kaizen costing is the part of new business concept ‘Kaizen’ and this method is based on the philosophy of ‘ Kaizen’ a new way of thinking. The paper also describes the main differences between kaizen costing and other similar term ‘Innovation’. The paper discusses that kaizen costing is used as a modern costing method for continuous cost improvement and this method is different from old cost control techniques standard costing. Introduction The term kaizen is originated by the Japanese companies for continuous improvement. According to Barnes (1996) the Japanese word kaizen is a composition of the words kai and zen where kai, means “change” and zen, means “good or better” and can be translated as improvement. The popular meaning of kaizen is continual incremental improvement in all aspects of a company. Kaizen is a Japanese word meaning gradual, orderly, continual improvement or change for better. The kaizen concept involves everyone in an organization working together to make incremental improvements without large capital investment. Imai (1986) defined kaizen as continuing improvement in personal life, home life, social life, work like and when it is applied to the workplace then kaizen means continuing improvement involving everyone from top managers to workers. In business culture and management process the term kaizen refers for continual and gradual improvement. The kaizen approach is not only about doing things better, but getting specific outcomes.