WELCOME To VIVA VOCE …PRACTICES AND CHALLENGES OF KAIZEN

IMPLEMENTATION AT ENTOTO POLYTECHNIQUE CLUSTER COLLEGE IN WOREDA 3 OF GULELE

SUB-CITY, ADDIS ABABA CITY ADMINISTRATION

By

Berhanu Tadesse Taye

Advisor:.......

Vocational Education and Management Unit

College of Education and Behavioural Studies

Addis Ababa University

November 2014

Outline of Presentation 1. Introduction

2. Background of the Study

3. Statement of the Problem

3.1. Basic Research Questions

4. Objectives of the Study

5. Context of the Study

6. Research Design and Methodology

7. Findings

8. Conclusion

9. Recommendation

10. Limitations of the Study

1. INTRODUCTION• In globalization era, the world gets organized in the form of

economic unity which necessitates quality management system, like kaizen.

• Kaizen literally means “improvement” or is often interpreted as gradual progress or incremental change participating the whole workers share ideas and their creativity ↑↓ in the hierarchy.

• TQM (in 1950), Kaizen later (1986) is one way of improvement of work process associated with organization performance and effectiveness.

• Prominent intellects (scientist), Edward Deming from USA but in Japan, Isikawa and Eiji Toyoda from Japanese work on it (TQM). The later is Masaaki Imai clarify it the term Kaizen.

2. BACKGROUND OF THE STUDY

• Against those backdrops, a number of countries in the world, including Ethiopia have got convinced by the positive contributions of the Kaizen (Total Quality Management) System to the quality of business management and products from the firms.

• The Government of Ethiopia, inspired by the practicality of the Kaizen Policy in the business firms, adopted it as an exemplary approach and tool of growth and development in July 2008.

• According to Imai (1997) Kaizen is a commonsense low cost approach to management its goal is to help enterprises attain higher quality of products and services lower cost and timely delivery.

3. STATEMENT OF THE PROBLEM Different countries in the world applied Kaizen Management techniques.It has various types of practice for the purpose of slow and steady improvement. Most Asian countries have successes in this strategy. But, it has encountered by multi-dimensional challenges. Ethiopia has taken similar reforms measures aiming at alleviating the observed problems through the incorporation of Kaizen as a policy from Japans. Likewise, Kaizen being implemented in Addis Ababa at industry/company and Woreda level (SMEs level). Kelly (2000: 71), in contrast, states that “…the partial or incorrect implementation of generated strategy and policy will always produce instability and wastage of resources.”

Statement of the Problem (Cont’d…)That is why the Government of Ethiopia employed professionals to implement the full package of industrial extension and technology adaptation and transfer workers which were an attempt was launched as the second phase in 2011. The researcher’s knowledge acquired through work experience alike to this theme exposition and practical involvement in an event and activity as a coordinator that enable gained knowledge over time.Therefore Kaizen implementation some of the drawback linked to the pre- and present Kaizen implementation in the Woreda level as lack of awareness, attitudes and stakeholder participation for the amelioration of SMEs business activity. Consequently, the practice of Kaizen Training was not fully implemented due to several reasons, such usAfter the first implementation of Kaizen for twenty one days In 2011, the TVET Agency AACA conducted an assessment to examine the states of the implementationThe assessment includes examine all collaborator and partners during kaizen implementation absence of good attitude towards implementation and the owners of the Enterprises lack awareness of Kaizen implementation including the implementers at all level. The report wrongly presented i.e. newly employed workers lack skill, knowledge and attitude during implementation stressed on it etc.

Statement of the Problem (Cont’d …) There were material and financial constraints and the executives’ and the implementers’ poor capacity to applying the proper policy and strategy in a context sensitive approach. The assessment report presented in the meeting shows that kaizen training implementation had come up with several problems associated with the implementation of Kaizen in all constituencies/ stakeholders of Addis Ababa which played similar roles. Kaizen strategy and its application in the SMEs were at grassroots (Woreda) level in Addis Ababa, the organizational structure was done without any detailed and feasibility study. If the Government’s policy makers are benchmarking the appropriate policy, it should safeguard at least for five, ten or more years like that of the originator as a strategy implementation at grassroots level. Nevertheless, due to dawdling of working environment most of Woreda Kaizen team was evacuated from their work place and employed in the factories also the remaining professionals lastly the TVET agency assigned as trainers in TVET colleges others lay off....

Statement of the Problem (Cont’d …)Though a number of journals and reviews have been conducted, a comprehensive and systematic study was not conducted regarding kaizen program implementation to benchmark best practices, innovation, knowledge sharing, ergonomics and obtained operational knowledge management about the theme. Gemechis (2007) and ILO (2009) also indicate that entrepreneurs in SMEs are surrounded by a number of challenges. These challenges have thus hindered the entrepreneurs in the enterprises from making meaningful contributions to the attempt towards poverty reduction in towns, region and the country as a whole. Therefore, this research aims at attempting to make a profound (deep) study at the Entoto TVET Cluster College implementation of Kaizen in the SMEs.

3.1. Basic Research QuestionsAs Kaizen Management System is a newly emerging system, this study intended to address the following research questions: How did the managers of kaizen training implementers and stakeholders practice kaizen as expressed in the documents on Kaizen Training Strategy at those SMEs in the Woreda? To what extent, is the implementation of kaizen strategy changing the activities, products and services provided by the Cluster Polytechnic College?What important advantage has implementing the Kaizen Training Strategy to SMEs under the Cluster Polytechnic College? why the challenges encountered during implementation and successes of implementing Kaizen in the SMEs under Entoto Cluster College?

4. OBJECTIVES OF THE STUDY4. 1General Objective

This study generally aimed at investigating the practices and challenges of implementing Kaizen at SMEs which are working in partnership with Entoto TVET College in Woreda 03 of Gulele Sub City, AACA.

4.2 Specific ObjectivesIdentify the kaizen implementation practices at Entoto TVET Cluster polytechnic college in Woreda 03 SMEs of Gulele Sub-City Administration. To investigate the organizational strength of the stakeholders and Entoto TVET Cluster College in relation to the provision of Kaizen Training implementation in SMEs Gulele Sub-City,Identify Kaizen contributions to knowledge, skills and attitudes development in different SMEs in partnership with Entoto Polytechnic Cluster College;To investigate the approach used by enterprises and TVET College to address the challenges encountered by SMEs in Gulele Sub-City; To identify factors contributing to challenges in implementing kaizen strategy in the Woreda and stakeholders.To identify possible and plausible suggestions to be implemented at different and various socio-economic contexts.

5. CONTEXT OF THE STUDYThe pilot project in the company 2009 to 2010 was conducted and observed the success and resumed the best practices at AACA SMEs Gulele Sub-City including woreda 3 DTM/Menen industry areas and other place there were 12 small and micro Enterprise in 2011/12 implemented the area of manufacturing, construction and service sectors implemented Kaizen with the collaboration of TVET College, former Woreda Industrial Extension and Kaizen Institute. This study involve only 6 enterprises by using available sample of small and micro enterprises which implement Kaizen at Woreda 3 of Gulele Sub-City were more capable of doing kaizen implementation.The overall description profile of sample enterprises and Entoto TVET College may vividly put the image(s) of them.

5.1. Rationale of the Study The supporting strategy set by AACA for SMEs provides the package according to the growth level of the enterprises which mean the beginners level (MSEs) did not involved in the kaizen implementation. That is above capable alone SMEs endorsed (formally approved) to implement kaizen according AACA TVET agency.i.e. for MSEs practices of kaizen implementation were not endorsed.Working culture and activity of the TVET, the stakeholders and the Enterprises clearly expressed including their profile.

6. RESEARCH DESIGN AND METHODOLOGY

• The methodology of a research study emerges out of the nature of the problems and purpose of the study. •In order to have understanding of the new phenomenon as recommended (Yin,2009) mainly quantitative and qualitative mixed research methods were used. • The mixed method in another form can use by means of multiple methods in a single study.

• 6.1. Research design The chosen design for this research is Case Study, and it falls within the interpretive and positive paradigm in which both qualitative and quantitative mixed approach were the most prominent research methods in this study employed.

6.2. Source of Data Collection Data for this research was collected from both primary and secondary sources of data collection during the field work since each source has its own importance about obtaining right data.The primary data were triangulating the secondary data. Primary data was collected using semi-structured and structured interviews, questionnaires, and persistent observations. Data from one TVET College and six SMEs which found in woreda three documents were also analyzed. Secondary data, on the other hand were got from books, report document, internet sources, pamphlets other media sources. The data from the secondary sources were analyzed using thematic and content analysis.Primary and secondary data sources were used for this research, Interviews, questioners and frequent field observation were used to get valid information to assess the states of TVET and enterprises from respondents, as well as for triangulation purpose.To strengthen the data, the study is conducted with document reviews to mismatch between actions and outcomes. The job positions of the study participant

6.2 Sampling Techniques Purposive sampling for selecting Entoto TVET CollegeConvenience or availability sampling for selecting the SMEs. Stratified sampling to collect the quantitative data Purposive, snowball and judgment sampling for selecting the informants.For the quantitative data, the researcher used stratified sampling technique. In order to use the stratified sampling, the study population was stratified into strata. In the first stratum, all teachers (trainers) in the TVET College and all employees in those enterprises were grouped to select and draw samples for the actual data collection as trainees and trainers.

6.3. Selection of ParticipantsIn E TVET CC, out of the total population of 105 trainers, 55sample of the targeted coordinators and trainers, 26 (47.27%) + mgt staff (Dean) 1=27Among a total of 142 employees in the enterprises, the researcher selected only 35 (24.65%)From former Woreda Kaizen Teams…… 4 (Mgt staff=2; staff=2).Woreda MSE Office ……………………… 4 (staff=3 ; Mgt=1)Woreda MFSCA……………………………staffs=3 mgt 1=4Out of 6 SMEs………………………41 (35 employees ; owners+ 6) Interviewed: a total of 7 interviewees (composed of 1 Vice Dean, 2 Woreda Industrial Extension Coordinators (Kaizen implementers), 1 MSE Office Head, 1 Microfinance Office, and 2 SMEs were selected for interviews. 80 respondents in the study Woreda were selected and interviewed. Specifically, the researcher dispatched 27 questionnaires to the trainers, 41 to the employees and 12 to the stakeholders who are directly related their job implement kaizen in the sample enterprises to collect the quantitative data.

6.4. Data Collection Instruments Yin (2008) defined the case study as research approach that seeks to answer the “how” and “why” questions. In the study, both quantitative and qualitative data collection instruments and procedures were employed. These include:Questionnaires; Interview guide/protocol; Semi-structure interview Observation checklists; and Documentary Analysis Template/Matrix.

6.5. Reliability and ValidityThose scaled items in the structured questionnaire were found to be reliable and valid because the Cronbach’s alpha coefficient correlation was calculated to be .850 which is higher than .70 (as stated in the main study of Table 3.2). Cronbach's alpha coefficient is generally used as a tool for assessing the reliability of Likert scales it measure attitude. The higher the score, the more reliable the generated scale is.Content validity checked by advisor and three kaizen trainers. 6.5.1. Pre-testing and Pilot StudyPilot Study: Once the questionnaire was constructed, the researcher must pilot, it used as feasibility study the idea or method behind research ideas are sound, before launching a larger quantity, this was done.Pre-test: To detect ambiguous and unclear statements, a draft questionnaire was first administered by selecting a total of ten respondents (i. e. five trainers, two coordinators, and three owners of the enterprises) for pre-testing the questionnaire and undertaking the initial pilot study at Entoto TVET Institution which was not included in the actual research, including trustworthiness and ethical considerations.

7. RESEARCH FINDINGS - FIRST IMPLEMENTATIONBackground characteristics of the respondents: a total of 75 (93.8%) of the respondents were males and 5 (6.2%) were females. The majority of the respondents are males. which involves much more physical work, might have contributed to the less number of female workers in the study. Regarding their educational status, more than half of the proportion of the respondents, 42 (52.5%) were found to hold first degree.However, a total of 17 (21.3%) of the respondents were below certificate in their educational status most of them were those employees in the enterprises that appeared to be below the recommended standard proposed by the TEVT Agency Office in Addis Ababa. The actual implementation of kaizen strategy has achieved success stories in Woreda 3 Administration of Gulele Sub-City, Addis Ababa. After the implementation stage, fifty-three percent of the respondents felt that they had a very clear understanding of the kaizen strategy. The study assessed whether or not they were able to use the information and/or skills acquired through the implementation to improve their own effectiveness as a leadership team. About two-fifth (thirty-nine percent) of the respondents evaluated the kaizen implementation at low level.

Findings (Cont’d …)Despite the problem which was observed by the managers and the implementers, their commitments were encouraging,The stakeholders were positively involved in Woreda 3 Administration.One Center Service in Gulele Sub-City Woreda 3 indicated that the Office made a link between the enterprises to governmental organizations, NGOs and buyers. Therefore, the enterprises sold their products in a large quantity. Overall success of the enterprises in kaizen implementation within their enterprises. Being in the initial stage of the kaizen implementation, only 36.0% of the respondents felt that kaizen contributed to reduction in lead time, whereas six percent of them showed some types of quality improvement, five percent of the respondents replied customers’ satisfaction, 45.0% of the respondents replied that after implementation reduction of cost and lead time. In addition, after going through the kaizen training and implementation stage, (13.0%) of the respondents believed that kaizen would likely contribute to increased staff motivation. Based on the second indicator - the implementation included an effective level of participation and involvement, a total of 36 (45.0%) of the participants in the study considered its implementation as highly implemented, and 34 (42.5%) of them ranked it at the rate of moderately implemented.

Findings (Cont’d … )Thus, this finding implies that the kaizen implementation is rated at moderate level. One may conclude that there were good levels of commitment, interest and application on the part of those stakeholders for the implementation of kaizen at Woreda 3 Administration. As the research indicate that most of the enterprises didn’t apply properly Kaizen particularly after implementation the sustainability of the strategy most of the enterprises quit the event after the kaizen trainers leave the enterprise. Almost all enterprises didn’t implement properly except two enterprises the formality and standard fulfilled by the enterprises, like changing management and skills. Awareness creation also not carried out properly before starting the event. Due to this problem the willingness of the enterprise is less. This makes them difficult to implement and the success rate are lower than kaizen strategy standard. ATM engineering Metal and Wood Works Enterprise performed extraordinary innovative technological work and gained in terms of shop width of 100 m2, and extra space of 24 m2 . The Enterprise not only implemented Kaizen, but also applied BPR to increase organizational performance and effectiveness in the Enterprise which can be best practice for others and other enterprises which, in turn, used ATM as benchmarking.Lalibela Woodworks Enterprise achieved such positive outcomes as shop width of 140 m2, extra space of 50 m2, and expenses of ETB 1500 for the implementation, incomes which amounted ETB 1000 from the selling of waste products and ETB 800 in support of electricity installation. the sustainability of the strategy quit the event after the kaizen trainers leave the enterpriseKaizen team Woreda level was commenced without feasibility study and also ceased without intention. However, the positions at this level were important for the purpose of supporting SMEs.

8. Conclusion The use of pilot taste to know the intended program is feasible or not this was conducted in

company but not in woreda level before hired kaizen implementers in larger quantity they should have to hired and start small amount of employees. When we estimate the amount lost due to fail the program it was much costly.

Indeed, kaizen during implementation (event) it has its own procedure to implement said former woreda level kaizen team coordinator farther more if the enterprises implement the procedure enthusiastically they will get small improvement at the beginning and big improvement in the long range;

Based on the total mean of 2.77, one can easily conclude that the activity of 5s in the management resembles poorly implemented since the number is more than 2.5 times. It somehow resembles fair. Therefore, the management needs capacity building before implementing kaizen. Thus, more work is needed to solve the 5s implementation problems.

Challenges related to the implementers of 5s: Woreda level Kaizen team has commenced without feasibility study and also ceased

without intention. Members of the implementation group are new to the activities which lead to loss of

confidence, lack of infrastructures and material resources Failure to actively involve the newly selected members of the implementation group from

the College and Woreda offices. Unable to recruit qualified employees for the jobs. New members are not familiar with job – there are gaps in their skills Coordination problem during commencement and communication, Lack of a trainer for Tapestry Training No adequate administrative supports, feedbacks , and encouragement.

9. Recommendation Before implementation, kaizen implementers and top management should get training which ties them together on knowledge of kaizen leadership quality, skills hand on and attitudes to go together with this dynamic world. Within the premises of SMEs, training and development implementers should be well-equipped with necessary materials and provide all forms of training, and encourage private advisory kaizen training, The assignment of the position of top management should be merit -based , the City Government should revise organizational structure based on what the Policy document plan stipulates, the stakeholders should improve their practice of documentation of kaizen at MSEs level. Enterprises should revise business plan work on quality, reduce price of production, as well as customers satisfaction, should increase staff motivation, increase contribution of staff’s idea sharing and decision making, and should work on the safety, and the sustainability of the package.Therefore, the stakeholders should consider those stories as good lessons, work hand-in-hand and shoulder-to-shoulder with one another in synergy form or esprit de corps to effectively address the challenges identified. Finally, it is recommended that professionals from different fields of study should conduct studies on kaizen using more of quantitative methods which will be triangulated by qualitative methods. While we are on the verge of industrialisation which means transforming from agriculture-led to industry-led in both our governmental institutions and private enterprises, these organizations should have to implement Kaizen/TQM as a strategy.

10. Limitations of the Study The research has some limitations although the student researcher has devised mechanisms for handling risks, challenges and using the existing opportunities properly in the process of the research undertakings. The limitations include: •Lack of comprehensive and systematic study on kaizen and related issues at grassroots level even in the national level.•Lack of books with reference to Kaizen (business management) in the campus libraries, and also the book in the book shop is too mach expensive to purchase.•Lack of time and financial resources on the part of the researcher•The sampled enterprises and trainers (respondents) ran in shortage of time as they were busy in their engagement in production, sells and daily responsibilities the trainers. In general Lack of willingness to actively participate in the study. •Some of the observed enterprises and TVET College had suspicions to a few of the sensitive questions which might result in biased responses.•The study may lack external validity because of the types and size of sample taken.

Thank You!