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A kaizen system was designed and installed in a large manufacturing organization as a part of a TQM exercise. Detailed studies were carried out by collecting extensive data over a period of 23 months, and by using statistical methods to understand the dynamics in the kaizen process. The kaizen process was found to be an auto regressive process, which leads to habit formation in making improvements. The process was observed to be influenced by seven controllable variables, which affect the quantity and quality of improvements. Reveals that implementation of kaizen as the first step in the TQM journey can lead to a self‐sustaining, controllable process of setting up a culture of continuous improvement.

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