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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 us

After the first implementation of Kaizen for twenty one

days In 2011, the TVET Agency AACA conducted an

assessment to examine the states of the implementation

The 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 Questions

As 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 STUDY

4. 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 Objectives

Identify 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 STUDY

The 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.

8.8%

37.5% 53.7%

Manager and Owner

Coordinator and Trainer

Trainee/Employee

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 College

Convenience 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 Participants

In E TVET CC, out of the total population of 105 trainers, 55

sample of the targeted coordinators and trainers, 26 (47.27%) + mgt

staff (Dean) 1=27

Among 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=4

Out 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 Validity

Those 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 Study

Pilot 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 IMPLEMENTATION Background 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 enterprise

Kaizen 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!