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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
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.
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
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!

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  • 1. 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
  • 2. 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
  • 3. 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.
  • 4. 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.
  • 5. 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.”
  • 6. 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
  • 7. 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....
  • 8. 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.
  • 9. 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?
  • 10. 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.
  • 11. 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.
  • 12. 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.
  • 13. 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.
  • 14. 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
  • 15. 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.
  • 16. 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.
  • 17. 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.
  • 18. 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.
  • 19. 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.
  • 20. 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.
  • 21. 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
  • 22. 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.
  • 23. 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.
  • 24. 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.

Editor's Notes

  1. Fetene Regassa (PhD)
  2. Pilot project was implemented for two years starting from 2009 and were chose a total of 30 companies (i.e., 10 from Metal, 6 from Agro-processing, 6 from Chemicals, 4 from Leather, and 4 from Textile Companies). Among these Companies, 3 were then evaluated as excellent 5 as best, and 10 as good performers. In 2011 the Ethiopian Kaizen Institute was established EKI. However, Ethiopia’s efforts to solving the problems have limited and inconclusive in different woredas of AACA. There are excess of complex factors that have positive and/or negative relationships with the practices and challenges of implementing kaizen strategy in the country in general and in Addis Ababa woredas in particular.
  3. Private sector development is central to addressing the youth employment challenge. None out of ten jobs in the developing world are in the private sector and private companies are the main long-term source of jobs and incomes. The growth of SMEs, in particular presents significant opportunities for employment generation and poverty reduction. Successful, growth-oriented enterprises invest to improve productivity and employ people, in Africa (Africa Commission, 2009). Africa’s small enterprises, from traders to farmers, contribute to more than 80 percent of output and jobs in most African nations. They offer the best opportunities for growth, diversification and job creation. But SMEs are constrained by limited access to stable energy services, business management skills, skilled labour, and especially finance for investment. Almost 50 percent of African companies identify lack of access to finance as a major constraint to doing business, which is higher than in any other part of the world according to the World Bank Enterprise Surveys (2009). The cost of finance, including investment finance, is higher in African than any other part of the world, and the access for SMEs is particularly limited. Very few commercial banks do small enterprise banking in Africa. Furthermore, the global financial crisis is likely to squeeze access to finance for these enterprises more than for bigger companies for some years to come (Africa Commission, 2009). Creation, Milford, and Dirk Willem te Velde (2010) Review of the most recent literature on Entrepreneurship and SMEs Input to DFID’s Wealth Creation Agenda: Making British International Development Policy more focused on Boosting Economic Growth and Wealth ODI overseas development institute.                    
  4. The primary data were triangulating the secondary data. Primary data was collected using semi-structured and structured interviews, questionnaires, and observations. Data from woreda three in six SMEs and one TVET College documents were also analyzed. Secondary data, on the other hand were obtained from the internet sources, books, pamphlets. The data from the secondary sources were analyzed using thematic and content analysis.   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. The data from the secondary sources were analyzed using thematic and content analysis.     The primary source of data was used since it is data provided by the actual witness to the incident in question, and for the reason that they are the most valid, the most illuminating and the most truth manifesting data; And secondary source of data was used in the absence of, or to supplement, primary data and was used as data derived not from the truth itself, but from the primary data (Leedy and Ormrod,2003).
  5. The actual implementation of kaizen strategy has achieved success stories in Woreda 3 Administration of Gulele sub-city, Addis Ababa
  6. This thesis has been arguing that the implementation of kaizen strategy documents limited success stories, but with multi-dimensional problems encountered in various socio-economic contexts on the implementing partners at different levels. One may conclude that there are good levels of commitment and interest on the part of those stakeholders for the implementation of kaizen in Woreda 3 area. The TVET College should continue to support kaizen in the future in that they agree on the essence of the statement.
  7. After the implementation stage, a reasonable number of the people in the implementation of the strategy have a very clear understanding of the kaizen strategy. Due to moderate level of implementation, the enterprises created conducive environment and then time was saved; problem of installation solved; after the installation conducive, visible and safe environment created; the warehouse was re-arranged and all materials were situated in a clearly visible area; and the garbage was prepared and situated in a specified areas of those sampled enterprises in the Woreda, created team work and synergy.
  8. The Addis Ababa City TVET agency used erase afar putting the organizational structure at Woreda level again cease officially without feasibility study. lack of coherence and co-ordination between Woreda Industrial Extension Team, TVET Cluster College and AACA TVET Agency;
  9. Challenges of with related to enterprises 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 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. Challenges of With related to the implementation 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