Impact of kaizen-like practices in the Brazilian manufacturing sector

Abstract

One of the key drivers for firm’s productivity growth is management. One particular management practice considered cost effective is Kaizen. Using firm-level dataset from Brazil’s innovation and manufacturing surveys, this chapter evaluates quantitatively whether Kaizen has impacted the performance of domestic firms. Our initial results suggest a productivity premium on Kaizen adopters, yet when it materializes it is not detectable in the short term. Moreover, impact on innovation is observable after Kaizen implementation. Understanding these outcomes with a qualitative approach, our analysis highlights the importance of Kaizen on innovation, especially by improving worker’s time at production line as well as the long-term vision of Kaizen on productivity.