Abstract: Considering today-s increasing speed of change,
radical and innovative improvement - Kaikaku, is a necessity parallel
to continuous incremental improvement - Kaizen, especially for
SME-s in order to attain the competitive edge needed to be profitable.
During 2011, a qualitative single case study with the objective of
realizing a kaikaku in production has been conducted. The case study
was run as a one year project using a collaborative approach
including both researchers and company representatives. The case
study was conducted with the purpose of gaining further knowledge
about kaikaku realization as well as its implications. The empirical
results provide insights about the great productivity results achieved
by applying a specific kaikaku realization approach. However, it also
sheds light on the difficulty and contradiction of combining
innovation management and production system development.