ORGANIZATIONAL PERFORMANCE AND EFFECTIVENESS (KAIZEN)

TRAINING ON
ORGANIZATIONAL PERFORMANCE AND
EFFECTIVENESS (KAIZEN)
IMPLEMENTATION IN THE INDUSTRY
CHERKOS SUB CITY ADDIS ABABA CITY
ADMINISTRATION ETHIOPIA
Vocational Education and Management
improvement for change
BY: BERHANU TADESSE TAYE
October 2014

ü Training duration 15 days
ü Methods of presentation, short lecture,
individual exercises, group activities and
discussions, project work, using energizer
between the session and question and answer
ü Target group executives, managers,
supervisors, company and enterprises owners
and also employees
BY: Berhanu Tadesse Taye

Outline of Presentation
ü Kaizen
ü 5s and visual management
ü Training within industry TWI
ü Value streaming mapping
ü Perceptual difference between western nations and Japan regarding job function:
ü Western Approach
ü Japanese Approach
ü Top Management
ü The roles of various level under KAIZEN
ü Supervisors
ü Middle Management
ü Workers
ü Organizational performance and effectiveness
ü Problem solving
ü Total productivity maintenance (TPM)
ü Hoshin Kanri
ü Cost of Quality (COQ)
ü Benchmarking
ü Suggestion system
ü Lean six sigma overview
ü Research investigation
v BY: Berhanu Tadesse Taye

1. Kaizen
Kaizen strategy is the single most important concept in Japanese
management the key to successful Japanese companies such as
Toyota and other corporations. Based on Masaaki Imai's
teachings on 'Kaizen' and 'Gemba Kaizen', this training prepared
for managers and supervisors who are interested in developing a
Kaizen culture in their workplace, offices etc, facilitating Kaizen
events as a mechanism to improve operational efficiency.
Concepts and benefits of Kaizen and how to manage Kaizen in
the organization work areas to improve productivity and customer
value. The key tools and techniques for running Kaizen activities
on a daily basis, problem solving, conducting a Kaizen event as
well as overcoming barriers to successful implementation.

1.1. Kaizen mean
•An integral part of a total quality approach is the Japanese
concept of Kaizen, which literally means ‘improvement’ or is
often interpreted as gradual progress or incremental change.
•Analyses every part of a process down to the smallest detail;
•Sees how every part of the process can be improved;
•Looks at how employees’ actions, equipment and materials
can be improved; and
•Looks at ways of saving time and reducing waste.
Kaizen was introduced in several Japanese
organizations after the Second World War and is
particularly associated with Toyota.

Cont’d
According to Masaaki Imai, Kaizen is a
Japanese term meaning ‘change for the better’.
Applied to business organizations, it implies
continuing improvement involving everyone
that does not cost much. Kaizen organization
culture is based on three super-ordinate
principles: process and results; systematic
thinking; and non-judgmental, non-blaming
(Mullins, 2010). Kaizen strategy begins with
customers’ needs concerning quality, cost and
delivery and is founded on a people-oriented
culture.

KAIZEN is based on the simple principle that, whatever the field in our
lives, be it social life, working life, domestic life or even leisure life, we
need continuous improvement in order to progress and advance as
opposed to status quo and stagnancy. For such an effort we must have
participation and involvement of one and all whether it is society or an
enterprise.
In industry, to stay there and compete, there should be an unending
improvement and progress to provide leverage against other
competitors.
Management Function in KAIZEN, Management has two major functions
in KAIZEN
I) Create a conducive environment and encourages continuous
improvement (technological, managerial and operative) and establishes
standards.
ii) Maintain the standards established

2. 5S and Visual Management
It is the first part of kaizen implementation, 5S workplace
organization and good housekeeping is a set of basic management
principles that are widely adopted in industries, trade, service
providers and even in the office. As a foundation of Lean
management, the key targets of 5S are improved workplace
efficiency, morale and safety. At the end of this lesson trainees will
be able know how to mobilize and align your management team to
launch or improve a 5S and Visual Management implementation in
your organization. The training covers 5S and Visual Management
best practices, step by step implementation guidance, and the best
ways to integrate 5S into the organization’s culture to achieve
sustainable quality on customer satisfaction and staff self esteem. It
includes the principles of 5S and Visual Management and the
benefits, initial implementation, future refinement, self assessment as
well as the infrastructure necessary to start and sustain a 5S initiative
for your organization

3. Training Within Industry (TWI)
The application of kaizen takes place in the industry, Within Industry (TWI)
is an integral part of Lean to reinforce the practice of Standard Work.
Standardized work eliminates waste, improves process stability and provides
a baseline for process improvement Program Objectives Job Relations (JR):
To lead people by effectively and positively dealing with relationship
problems between the supervisor and the employee, and preventing these
problems from developing in the first place by maintaining positive
employee relationships. Job Instruction (JI): To provide proper training and
assuring this training is effective in helping people do their jobs correctly
and efficiently. Job Methods (JM): To improve processes and the workplace
by developing improvement proposals and implementing them to get
improved results. Benefits Get more done with less machines and manpower
Improve quality, reduce scrap by achieving standard work across workers
and shifts, Reduce safety incidents, Decrease training time, especially for
temporary workers Reduce labor hours Reduce grievances Transfer
knowledge from a skilled workforce to an unskilled or green workforce

4. Value Stream Mapping
It is a lean management method for analyzing the
current state and designing a future state for the
series of events that take a product or services of
events that take a product or service from its
beginning through to the customer (Rother, Mike,
Shook, John, 2003). Current state and future state
value stream maps, and to identify opportunities to
achieve the future state that have the greatest
impacts on the business as well as customer value.
The critical tool of value stream mapping and
analysis helps your organization see waste and
opportunities, and envision a Lean future state

PERCEPTUAL Difference between western nations
and Japan regarding job function:
Western Approach:
* Importance to systems and procedures
* Through systems an organizational level and functions
are established. Focus is on control i.e. function within
chance cause variation level. Take action when
assignable causes creep in.
* Changes are mainly through innovations. They are top
and middle management responsibilities. This leads to
two types of organizations.

cont’d
a. Status quo organization: No attempt to improvement or innovation till market
condition forces.
b. Innovation centered organization: High technology industry. Eventually disappear
after sometime.
:
Table 1. Western Approach

cont’d
Japanese Approach:
Technological and process innovation fall largely in the domain of top and
middle management but improvements are an all pervasive activity from top to
bottom with varying degrees.
Table 2. Japanese Approach

Cont’d
6. The roles of various level under KAIZEN
1. Top Management:
a. Establish Kaizen as a corporate policy. Workout strategies
for implementation.
b. Allocate resources, extend, support guidance and provide
direction.
c. Establish clear policies on KAIZEN and provide cross
functional management goals for achieving KAIZEN.
d. Evolve systems and procedures and organizational
structures for promotion of KAIZEN.

Cont’d
2. Middle Management:
a. Deploy and implement Kaizen goals directed by Top
Management. Use KAIZEN in cross functional management
activities.
b. Effect improvements (KAIZEN) in functional capacity.
c. Maintain and up grade existing standards through
improvements.
d. Provide assistance to workers to develop skills and acquire
knowledge on problem solving tools.

Cont’d
3. Supervisors:
a. Follow Kaizen in the functional role
b. Sustain high morale of workers; keep continuous
communication links; assist in KAIZEN.
c. Involve in and support SGA like QC circles and also
suggestion system.
d. Provide assistance and involve workers in KAIZEN
activities.

Cont’d
4. Workers
a. Through small group activities and suggestion
system involve in KAIZEN
b. Be disciplined to follow standards. Think of
KAIZEN in day to day activities.
c. Concentrate on self-development
continuously and increase capabilities for
problem solving.

Cont’d
Table 3. Perception of the below function category
wise. As can be seen from the picture, as we go
from the bottom, the improvement function
increases and the top and middle management
have a greater role in it. Similarly, as we come
down from the top, the supervisors and workers
have a greater role in maintenance function.

Organizational performance and
effectiveness, Kaizen (continuous
improvement) for small- and medium-sized
enterprises, industry and companies select
from the alternatives
better allow to implement appropriate
forms of organizational performance and
effectiveness mandatory for their growth

A. Total Quality Management (TQM)
After the end of this training trainees will learn and designed to help you,
as a key manager, to understand how to approach quality as a company
wide effort. You will learn how to make a commitment, plan and begin to
implement systems for managing quality that integrates all the people,
processes and continuous improvement initiatives together. Based on
Philip Crosby's methodology, this training introduces participants to the
Five Quality Principles and the Four Key Activities for Quality
Management. Finally, the role of the manager will be examined so as to
identify what you, personally, can do to plan the improvement process
and communicate the need to change. To manage and improve quality, a
long term commitment of time and effort will be required. For these
efforts to succeed, every employee in the company must get involved.
TQM is designed to involve every employee in your company in quality
improvement efforts.

Cont’d
one practical approach to improved organizational
performance and effectiveness is the concept of the
Japanese inspired total quality management (TQM).
There are numerous definitions of TQM. These are
generally expressed in terms of a way of life for an
organization as a whole, committed to total customer
satisfaction through a continuous process of
improvement and the contribution and involvement of
people according to MULLINES (2010).
Laurie J. Mullins is lecturer in Portsmouth University he
wrote a book Management and organizational Behavior,
the TQM information can get in the themes of
organizational performance and effectiveness.

Cont’d
A major influence on the establishment and
development of TQM was the work of Deming, who
emphasized the importance of visionary leadership
and the responsibility of top management for
initiating change. A mathematician by training, he
was interested in statistical measurement of industrial
processes and attempted to persuade the American
manufacturing industry to improve quality, and to
create constancy of purpose for improvement of
products and service.

B. Six Sigma
Another quality initiative programme for change and continuous
improvement is the concept of Six Sigma, based on the use of statistical
analysis and computer simulation for the definition, measurement and
reduction of defects and waste (Sigma is the Greek letter used as a
statistical term to denote standard deviation or variations from the
mean). The principle of Six Sigma is the establishment of optimum
specifications for processes and products, and an improvement in
quality through a continuous reduction of variations that result in
defects. If you can measure the number of defects in a process you can
then attempt systematically to eliminate them. Each level of sigma (six
being the highest) indicates a reduction in the extent of defects. A true
Six Sigma quality organization implies a defect rate of only 3.4 defects
per million opportunities for each process or product. The aim is not
only to reduce existing variations but also to design new processes and
products so that there is as little variation as possible.

C. Business Process Re-Engineering (BPR)
Another concept to have received much
attention in recent years is that of business
process re-engineering (BPR). The pioneers of
BPR are generally acknowledged as Hammer
and Champy, who define it as:
The fundamental rethinking and radical redesign
of business processes to achieve dramatic
improvements in critical, contemporary
measures of performance, such as cost, quality,
service and speed.

Cont’d
Their approach has two principal features: (i) a
completely fresh start, or blank sheet of paper
approach, to organizational redesign, ignoring past
history or present structure or practices, and (ii) a
process-orientation approach to organizational analysis
centered around a horizontal review of all activities
involved in the process, or set of activities, in the
delivery of a product or service to the customer. BPR
is concerned wit the total restructuring of the
organization. It starts from how one would like the
organization to be and works backward in an effort to
achieve real gains in organizational performance and
delivery of products or services.

Cont’d
Relationship with TQM
What is the relationship between BPR and TQM? Both are
concerned with organizational processes that lead to customer
satisfaction. However, while TQM tends to seek continuous
incremental improvement within a specific framework, BPR
seeks major advances in performance from a horizontal, cross-
functional anatomy of performance perspective. It involves a
challenge to traditional structure, relationships, boundaries or
barriers. TQM requires a supportive environment and relies on
teamwork, participation and commitment BPR takes a more
strategic approach and needs to be driven, at least initially, by
top management. Some commentators appear to suggest that
TQM has been taken over by BPR although others argue that
it can be seen as complementary to and/or a forerunner for
BPR.

Decline of Re-Engineering
In a discussion on outdated motivational patterns
utilized to maintain role performance in organizations.
Risk and Pena link this with what they maintain is a
failure in re-engineering. Although the originators of
re-engineering insisted it was about rethinking work
not eliminating jobs, managers equated re-engineering
with downsizing. Despite early successes, with each
passing year fewer and fewer projects appeared to be
producing the desired results and doubts have surfaced
about the effectiveness of re-engineering.

Cont’d
Reis and Pena suggest that theories of motivation
might offer an important observation and point to the
decline in re-engineering based on its lack of concern
for people and its takeover by managers wishing to
downsize.
In a subsequent publication, Hammer restates that
BPR is just as valid today but acknowledges that in the
light of experience re-engineering needs to be
complemented with a range of other changes, a focus
on corporate objectives and building collaborative
partnership with suppliers.

Cont’d
Stern, however suggests that downsizing and restructurings of
immense size were justified by BPR and:
The internet-inspired, emotionally intelligent ‘new economy’
of the late 1990s was the great reaction against BPR’s
brutalism. All pool tables and skateboards, the new economy
was great fun while it lasted-which was not very long.
Someone forgot to tell the geeks about the iron laws of
business-those boring old things such as profits and cash.
Critical Reflection
“Effective organizational performance is about a shared vision, inspired
leadership and the quality of its managers. Concepts such as total quality
management or techniques such as business process re-engineering are
just passing fads that offer little real long-term value to the business
organization.” according to (Mullins, 2010)

D. Lean Thinking for Transformational Leadership
Toyota Production System) is an organization wide continuous
improvement initiative that is gaining popularity in the
manufacturing, process and service industries today. At the end of
this lesson trainees will gain an understanding of productivity loss
from the three major sources of waste:
•value added work,
•Process variability and Process/System inflexibility (bottlenecks) In
addition,
•Lean principles and tools can be applied to eliminate non value
added work,
create stable processes and mistake proof operations so as to
significantly improve productivity and increase value to customers.
As a senior executive,

Cont’d
Lean Leader and create the right
conditions to start and sustain a
successful Lean program. Recommended
audience senior executives, managers,
project champions or project sponsors of
manufacturing and service industries who
are interested in getting a “big picture”
perspective of Lean before embarking
on the detailed planning and
implementation’

Cont’d
The important role for management in
maintenance function is to establish the
standards, policies and procedures so that they
are followed by everybody and they could be
monitored and reviewed. Management also
has the responsibility to educate and train the
people to enable them to follow the standards.
Thus, in the Japanese perception, one action
follows the other in succession.

cont’d.
Table, 4. The point to be noted here is that the
workmen, though most of the time are expected
to maintain established standards by religiously
following them, can also suggest improvements.

Cont’d
The important role for management in
maintenance function is to establish the
standards, policies and procedures so that
they are followed by everybody and they
could be monitored and reviewed.
Management also has the responsibility to
educate and train the people to enable them
to follow the standards. Thus, in the
Japanese perception, one action follows the
other in succession.

?á Customer
orientation
?£ TQC (total quality
control)
?= Robotics
? QC circles
?- Suggestion
system
?á Automation
?z Discipline in the
workplace
?-TPM (total
productive
maintenance)
?á Kamban
?_ Quality
improvement
?ù Zero defects
?Æ Small-group
activities
?¿ Cooperative
labor- management
relations
?Œ Productivity
improvement
?¿ New-product
development
Figure 1. The Kaizen Umbrella
KAIZEN
Source: Kaizen Umbrella courtesy of (Imai, 1986)

v PDCA Problem Solving
How do you solve business problems that are cross-functional and there
is not a single subject matter expert who has sufficient knowledge about
the real causes of the problem? How do you break through the functional
silos to obtain a detailed understanding of the current processes and then
develop a future state process that involves all departments and gives you
the true nature of the problem to be solved? In this training, you will
learn the structured Plan-Do-Check-Act (PDCA) approach to problem
solving. The PDCA problem solving process is a technique that is used
by Toyota to identify problems, analyze root causes and generate
solutions. When combined with the basic quality ("QC") tools, real
causes to business problems can be identified and effective solutions can
be put in place to prevent similar problems from recurring in the future.
For all enterprises which want to facilitating, leading or participating
in a problem solving project.

v A3 Problem Solving
After the end of these training trainees will learn the structured
problem solving approach that uses a tool called the A3
Problem Solving Report. For example the A3 report is a tool
that Toyota uses to propose solutions to problems, give status
reports on ongoing projects, and report results of information
gathering activity. The term "A3" is derived from the paper
size used for the report, which is the metric equivalent to the
11" x 17" paper. You will learn the steps to proceed from
problem identification to resolution in a fashion that fosters
learning, collaboration, and personal development. The
problem solving team records the results of investigation and
planning in a concise, two page document (the A3 Report) that
facilitates knowledge sharing and collaboration.

innovation
Learn Do
planAction
Check
P
D
Figure 3. Complementary Relationship
between BPR and Kaizen
Figure 3. Complementary Relationship
between BPR and Kaizen
Source: Takanashi (2006, p.71).

E. Total Productive Maintenance (TPM)
Total Productive Maintenance (TPM), is a company wide initiative for
maximizing the effectiveness of equipment. The goal of the TPM
program is to significantly increase labor and capital productivity while,
at the same time, increasing employee morale and job satisfaction. TPM
brings maintenance into focus as a necessary and vitally important part
of the business. Targeted at all levels of the organization, TPM and its 8
pillars provide the necessary process and tools to achieve zero defects,
zero breakdowns and zero accidents.
•Understand the concept and management philosophy of TPM as a
foundation for Lean Transformation Learn the 8 pillars of TPM
activities, TPM implementation strategy, roadmap and step by step
approach, Learn the TPM tools and be able to identify and eliminate loss
through TPM implementation. Understand the Autonomous Maintenance
process and how to improve equipment reliability. Understand the roles
of a TPM implementation organization and the critical success factors.

F. Hoshin Kanri
Hoshin Kanri. is a powerful, systematic Strategic Planning
methodology that uses a Plan- Do-Check-Act cycle to create
goals, choose control measures and link daily control activities
to the enterprises strategy. It involves a "catch ball" as the
driving force of alignment, clarification and employee
involvement. The methodology has been used by some of the
world’s most successful companies such as Toyota, Hewlett-
Packard and Bank of America as a systematic approach to
capture and strengthen strategic goals and develop the means
to bring these into reality. The successful achievement of the
company shared goal

G, Cost of Quality (COQ)
As a key factor of competitiveness, cost has to be
managed all the time, not only in times of economic
downturn. The Cost of Quality (COQ) program fits
well into any operational excellence initiative,
including Lean, Six Sigma and TQM. The COQ
methodology approach to quantifying the financial
impact of the Cost of Non - Conformance (CONC)
and Cost of Conformance (COC), lifting the problem
solving focus from quick fix to prevention, and
prioritizing quality improvement opportunities based
on the expected financial return

H, Benchmarking
Benchmarking is the process of continually searching for the best
methods, practices and processes, and either adopting or adapting their
good features and implementing them to become the “best of the
best.”To become the best in class, organizations need to implement the
right processes to get there. benchmarking, various types of
benchmarking, identification of what to benchmark, and provides a
detailed step by step guidance on how to systematically carry out a
benchmarking project based on the world renowned benchmarking
model. It also includes practical tips on the benchmarking process,
benchmarking etiquettes and the critical success factors today's
competitive environment, organizations must delight their customers and
relentlessly look for new ways to exceed their expectations. To
accomplish this, Kaizen and Six Sigma Quality has to become a part of
an organization’s culture.

Cont’d
Six sigma provides a rigorous and structured approach
to help organizations improve their performance in
meeting their customers' requirements. This training
introduces you to the Kaizen and Six Sigma
philosophy, methodology and tools and the
infrastructure for successful Six Sigma deployment
without too much of statistical jargon. It includes
applications of Six Sigma in manufacturing, process
and service industries, step by step DMAIC
improvement approach, phase description and
deliverables, and roles of the Leadership team,
Champion, Process Owner,

I, Suggestion System
Employees have lots of ideas, but how do you listen to them? How do you harvest their
ideas formally and informally, and bubble up the good ones? How do you generate
good quality ideas and sustain the flow of employee's suggestions to increase customer
satisfaction, improve bottom line and enhance employee motivation and enthusiasm? At
the end of this training the trainees will be able to know about the characteristics of a
successful staff suggestion system and establish an infrastructure to implement and
sustain an employee suggestion system that provides a constant flow of quality ideas.
individual exercises, group activities and discussions, plan and launch a suggestion
system Acquire skills in setting up a management infrastructure to generate ideas,
capture quality ideas, evaluate ideas and sustain a constant flow of ideas. Learn how to
develop employees to identify opportunities for improvement and write good quality
ideas. Develop supervisors and managers to guide employees in writing suggestions.
Learn how to recognize and reward participation Program, Outline Introduction &
Basic Concepts• Scope of Suggestions• Goals of a Suggestion System• Planning &
Launching a Suggestion System•

Cont’d
Roles & Responsibilities of the Suggestions Committee, Suggestions
Office & Department Representatives• The Suggestions Process•
Evaluation & Award Systems• How to Develop Good Quality
Suggestions• How to Sustain a Suggestion System Description In
today's competitive environment, organizations must delight their
customers and relentlessly look for new ways to exceed their
expectations. To accomplish this, Six Sigma Quality has to become a part
of an organization’s culture. Six Sigma provides a rigorous and
structured approach to help organizations improve their performance in
meeting their customers' requirements. The training introduces you to the
Kaizen and Six Sigma philosophy, methodology and tools and the
infrastructure for successful Six Sigma deployment without too much of
statistical jargon. It includes applications of Kaizen and Six Sigma in
manufacturing, process and service industries, step by step DMAIC
improvement approach, phase description and deliverables, and roles of
the Leadership team, Champion, Process Owner.

14. Kaizen Lean Six Sigma Overview
Lean Six Sigma provides a rigorous and structured approach to help
organizations improve their performance in meeting their customers'
requirements. This training introduces you to the Kaizen, Lean, Six
Sigma philosophy, tools, DMAIC structured problem solving and the
infrastructure for successful Lean Six Sigma deployment. It emphasizes
how to lead a Successful Kaizen and Lean Six Sigma deployment.

15. Delivering Service Excellence
After the end of this training the trainees will be able
to know the approachs of customer satisfaction,
manage your own emotions and deliver professional
and personalized service, and treat customers as
unique individuals with different needs and
expectations. It includes the techniques and skills to
find out and respond to each customer's needs and
expectations, reduce customer's negative feelings and
heighten customer's positive feelings towards your
organization. Finally, you will learn how to satisfy
customers in comfortable and difficult conditions as
well as apply the five A's of service recovery

16. About Operational Excellence Consulting
Trained of consulting groups around the world their advertisement
presented as follows, who we are Operational Excellence Consulting
helps organizations to work smarter and grow faster. The objective of the
training is always evolving to respond to industry trends and
management focus, and we combine our deep technical skills in response
to our clients' changing needs. Over time, what we do remain closely
linked with helping our clients improve the way they operate; innovate
and grow; reduce costs; manage risks; leverage talent; and change the
way they do business. One of our unique strengths is going beyond a
tools focused approach to seamlessly integrate people, processes,
technology and continuous improvement initiatives to suit the specific
needs and situations of our clients What we do, we provide corporate
learning programs and management advisory services to assist our clients
to achieve breakthrough in business performance and effectiveness. The
aim of the training is to support our clients in designing, managing and
executing lasting beneficial change.
.
Website: www.oeconsulting.com.sg,

Term Explanation
5S 5S is a philosophy and checklist for good housekeeping to achieve greater order, efficiency and
discipline in the workplace. It is derived from the Japanese words Seiri (Sort), Seiton (Straighten), Seiso
(Shine), Seiketsu (Systematize), and Shitsuke (Standardize/Self-Discipline). There are also different
English renditions.
Suggestion
System
A Suggestion System is the method by which the ideas and suggestions of employees are
communicated upwards through the management hierarchy to achieve cost savings or improve product
quality, workplace efficiency, customer service, or working conditions. Examples range from simply
placing suggestion boxes in common areas, to implementing formal programs with committees
reviewing ideas and rewards given for successful adoption of those ideas.
Quality
Control Circle
(QCC)
QCC is a small group of workers who collectively find a problem, discuss alternative remedies, and
propose a solution. QCCs voluntarily perform improvement activities within the workplace, as part of a
company-wide program of mutual education, quality control, self-development and productivity
improvement.
Total Quality
Management
(TQM)
TQM represents a number of management practices, philosophies and methods to improve the way an
organization does business, makes its products, and interacts with its employees and customers. QCC
activities function as an integral part of TQM. Historically, statistical quality control was born in the
US, and Japan imported and developed that concept as Total Quality Control (TQC) in the 1960-70s,
which evolved as TQM in the late
80s.
Toyota
Production
System (TPS)
TPS is the philosophy which organizes manufacturing and logistics at Toy- ota, including interaction
with suppliers and customers. It focuses on the elimination of waste and defects at all points of
production including inputs, process and final output (delivery). The term “Lean Production System”
can be used interchangeably.
Just-In-Time
(JIT) System
JIT, a part of TPS, is a production system aimed at eliminating non-value- adding activities of all kinds
and achieving a lean production system flexible enough to accommodate fluctuations in customer
orders.
Kamban
System
Kamban refers to a communication tool in the JIT production and inventory control system, developed
at Toyota. A kamban (signboard) is attached to a given number of parts and products in the production
line, instructing the delivery of a given quantity. When the parts have all been used, the kamban is
returned to its origin where it becomes an order to produce more.

Kaizen Innovation
1. Effect Long-term and long-lasting but undra-
matic
Short-term but dramatic
2. Pace Small steps Big steps
3. Timeframe Continuous and incremental Intermittent and non-incremental
4. Change Gradual and constant Abrupt and volatile
5. Involvement Everybody Select few ìchampionsî
6. Approach Collectivism, group efforts, systems
approach
Rugged individualism, individual
ideas and efforts
7. Mode Maintenance and improvement Scrap and build
8. Spark Conventional know-how and state of
the art
Technological breakthroughs, new
inventions, new theories
9 Practical
requirements
Requires little investment but great ef-
fort to maintain it
Requires large investment but little ef-
fort to maintain it
10. Effort
orientation
People Technology
11. Evaluation
criteria
Process and efforts for better results Results and profits
12. Advantage Works well in slow-growth economy Better suited to fast-growth economy
Table 6. Features of Kaizen and InnovationSource: Imai (1986, p.25).
6 Clark et al. (2009) describes it as the difference between kaikaku (reform, big change) and kaizen (small incremental changes).

Organized PP implementation teams Number of team
members from JICA,
counterpart, PP tar-
get companies
Electrical &
electronic sector
team
Food processing
sector team
JICA consultant team
Team leader
Member in charge of
institution building
Member in charge of
work coordination
Electrical and
electronic
consultants: 2
Food processing
consultants: 2
7
Counter- part team UGPQ director
Member in charge of
institution building
Member in charge of
work coordination
Electrical and
electronic technical
staff: 5
Food processing
technical staff: 5
13
PP target companies
team
Top managers
Production
managers /
Quality controllers
Employees in
charge of
production
Production
managers /
Quality controllers
Employees in
charge of
production
Numbers varied
depending on the
company
Table, 7 . Pilot Project Implementation Team
75 The Japanese word “kaizen” has come to be internationally used in the area of production management.
In English, this is referred to as continuous improvement.
panies was organized. Table 4-2 shows the composition of the teams organized in the target sec-
tors.

?á Improvement
Technique
Contents of Improvement Technique
1. Layout improvement PQ analysis / Transfer distance analysis / Process proximity
analysis78
2. Improvement of work
human-hours balance
Time research (stopwatch method) / Operation research
3. Shortening of setup
times
Single setup (SMED) method / Vide analysis79
4. QCCs80 Analysis using 7 tools of QC / 7 areas of waste elimination81
5. 5S82 Tag method / Color display / Visual control / Dividing lines
Table. 8, Source: Compiled from the Master Plan Study for Quality/Productivity Improvement in the Republic of Tunisia
(Final
Report, July 2008), available from JICA homepage (http://www.jica.go.jp/).
Types of Improvement (Kaizen) Techniques that were Acquired in the PP
and can be Autonomously Used by Counterparts in Future

- Setting of
model
?U PP implementation plan -
A/P and M/P compilation
?A Survey of all industrial
sectors
company
selection
implementation (company -
Final report (manual Nationwide
deployment (all
(20 companies) criteria diagnosis, quality/productivity completion) industries and all
regions) of
?, Survey of the PP target
sectors
improvement guidance, draft -
Preparation of video of quality/productivit
y improvement
- Electrical and electronic - Selection of
model
manual utilization) successful cases by the
counterparts
themselves
(approx. 30 companies) companies -
Around 15 electrical and - Trainers’ training
- Food processing electronic companies
(OJT/WS, etc.)
(approx. 30 companies) - Draft manual - Around 15 food processing - Training in Japan
?ì Survey of policies, measures preparation companies
and related legislation ?= Draft final report preparation
?+
?
Survey of current
conditions of support
systems and agencies
Survey of trends of other
- Draft PP
implementation
plan
preparation
(including draft A/P and M/P,
etc.)
Establishment of
dissemination setup by
the Tunisia side
(systems,
Donors organization, budget)
Table. 9. Note: -PP: Pilot Project, M/P: Master Plan, A/P: Action Plan, OJT: On the Job Training, WS: Workshop
-This figure was prepared at the start of the project (July 2006). Accordingly, the numbers of companies in each PP target
sector and companies targeted in the PP

Start
up
stage
Transition stage
Independent
Agency
Developmental stage
Government agency / Ministry
Stages of development

What do you observe from this
picture try to explain and
clearly figure it out your
impression according to their
orders respectively.
Figure 5

Source from BBC
Figure 5 weaving Ethiopian cultural clothe called “Sheme, netela, Gabi”

Office performance
before and after
implementation of kaizen
Figure 7

Dust bin before and after
Figure 8

Archive performance
before and after
Figure 9

Medical store materials performance before and after implementation of kaizen
Medical store materials performance
before and after implementation of
kaizen
Figure
10

No. Item SMEs En. TVET Stakeholders
(MTM)
office
Total
F % F % F % F %
1 Sex Male 38 87.5 26 92.9 11 91.7 75 93.8
Female 3 12.5 1 7.1 1 1 5 6.2
Total 41 100 27 100 12 100 80 100
2 Service 1 – 5 7 16.7 19 71.4 4 33.3 30 37.4
Year 6 – 10 6 12.5 8 28.6 3 25 17 21.3
11 – 15 12 29.2 0 0 5 41.7 17 21.3
16 and above 16 41.6 0 0 16 20.0
Total 41 100 27 100 12 100 80 100
3 Level of
Education
Below certificate 17 33.3 17 21.3
Certificate 10 25 10 12.5
Diploma 8 20.8 8 10.0
Degree 5 16.7 25 92.9 12 100 42 52.5
MA/MSC 1 4.2 2 7.1 3 3.7
Total 41 100 27 100 12 100 80 100.
0
Table. 10 Demographic Characteristics of the Respondents

Demographic Characteristics of the Respondents Research
on SMEs and stakeholders who implement kaizen
1.The first analysis of data involves profiling the background
characteristics of the respondents drawn from the six sampled small
and micro enterprises. Table 10 indicates the demographic
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. Apart from the social/cultural influence and
restriction, the prevailing low level of technology by manufacturing
related to sectors, which involves much more physical work, might
have contributed to the less number of female workers in the study.
Notwithstanding, efforts should be made to encourage female workers,
as well as possible means need to be sought and put in place for better
technology utilization, including love of hard work.

Cont’d
On the other hand, more than half of the respondents, 30 (37.4%) were found to have
low level of service years (1 – 5 years), while the remaining, 34 (42.6%) had 6 up to 15
years of service. Thus, the majority of the enterprises which have been implementing
the kaizen strategy are less-experienced business firms. It is advisable for the kaizen
implementers to choose those enterprises which have been involved in the business for
at least ten years in order to counsel those firms to implement the kaizen. Regarding
their educational status, a significant proportion of the respondents, 42 (52.5%) was
found to hold first degree. However, a total of 17 (21.3%) of the respondents were
below certificate in their educational status which appeared to be below the
recommended standard proposed by the TEVT Agency Office in Addis Ababa. The
findings of the study appear to be good on the part of the participants in the study in
terms of their educational status. Moreover, the two enterprises (i.e. ATW Engineering
and Dobbe Enterprises) were exemplary Organizations which could be compared with
other enterprises in terms of the importance of education in answering the
organizational performance and effectiveness in the manufacturing sector. The
educational background of the respondents further indicates that a large number of them
about sixty-three percent) were highly trained. This significant proportion of the
respondents was diploma and/or degree holders (that is, a total of years of schooling
which ranges from 13 to 18).

8.8%
37.5%53.7%
Manager and
Owner
Coordinator
and Trainer
Trainee/Emplo
yee
Figure 11

Figure, 12, depicts most of the respondents held job
positions, like coordinators/trainers and
technicians/employees. A total of 7 (8.8%) of respondent were
top-level managers and owners of the enterprises, whereas 30
(37.5%) were coordinators and trainers, and 43 (53.7%)
respondents were technicians and employees. About three-
fourth (91.2%) of the total participants in the research were
found to be coordinators, trainers and
trainees/technicians/employees, while one-fourth (8.8%) were
members of the management staff – managers and owners.
Thus, the majority of people in the SMEs in Woreda 3
Administration of Gulele Sub-city are holding technical
positions – trainers and trainees. The job positions are
appropriate to run the manufacturing businesses.

Overall Success of Enterprises in Kaizen Implementation, First
phase of kaizen implementation stimulating the respondents by asking
the above questions. The above figure. 11. Indicate that there are
generally overall successes of enterprises in the implementation of
kaizen strategy. Being in the initial stage of the kaizen implementation,
only (36.0%) of the respondents felt that kaizen contributed reduced lead
time, where as six percent of to some types of quality improvement, five
percent of the respondent replied customer satisfaction, (45%) of the
respondent replied that after implementation reduction of cost and lead
time. Thirty-two percent of the respondents also felt that the involvement
of the companies in implementation of kaizen increased staffs’
contribution and involvement in decision-making also reduced work
force in terms exerting energy which mean time factor, but they were of
the opinion that top management didn’t seem to be a regular participant
in the team work. In addition, after going through the kaizen training and
implementation stage, (13%) of the respondents believed that kaizen
would likely contribute increased staff motivation.

Productivity: 5 nets per min. With 2 workers
Selection of Better Means to Change of Current Method for achieving your objective.
Agriculture performance before and after implementation of
kaizen
How far team
work influence the
work area
Figure
11

Figure 12orange Packing (1)
It is difficult to open net and put oranges in the net at the same time.
Figure
12

Figure 13Productivity: 1 net Permian.
Figure 13

Figure 14 Orange Packing (2) cooperation increases work efficiency
Figure 14

Figure 15 Productivity: 5 nets per minProductivity: 5 nets per min. With 1 worker
Figure 15

1.Overall Success of Enterprises in Kaizen Implementation
Figure, 17. Overall Success of Enterprises in Kaizen Implementation

Cont’d
Figure 17 indicates that there are generally overall successes of the
Enterprises in the implementation of Kaizen Policy and Strategy.
Being in the initial stage of the kaizen implementation, only
(25.0%) of the respondents felt that kaizen contributed to reduced
lead time, whereas six percent of them were successful ones to
some types of quality improvement, and five percent of the
respondents replied that their customers were satisfied due to the
implementation of kaizen. Those findings of the study imply that
too much work is necessary creating awareness in terms of quality
since the percentage were relatively lower and also most of the
respondent not work for the purposes of customers’ satisfaction.
awareness creation on the part of the members of the management
body in the enterprises is mandatory because of customers
satisfaction is necessary for the sustainability and survival of every
enterprises and mach more explanation from the above fingers.

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