the practices of kaizen philosophy: in the context of …
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THE PRACTICES OF KAIZEN PHILOSOPHY: IN THE CONTEXT OF
DIRE DAWA NATIONAL CEMENT SHARE COMPANY.
BY: ASSEGID ALEMU
DEBRE BREHAN UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
MAY, 2018
DEBRE BREHAN, ETHIOPIA
THE PRACTICES OF KAIZEN PHILOSOPHY: IN THE CONTEXT OF
DIRE DAWA NATIONAL CEMENT SHARE COMPANY.
BY: ASSEGID ALEMU
ADVISOR: TAMIRU FEYISSA
A THESIS SUBMITTED TO THE DEPARTMENT OF MANAGEMENT
DEBRE BREHAN UNIVERSITY IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTERS IN BUSINESS
ADMINISTRATION.
MAY, 2018
DEBRE BREHAN, ETHIOPIA
DEBRE BREHAN UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
APPROVAL OF THE THESIS
As members of board examiners of the final master thesis open defense examination, we certify
that we have read and evaluated the thesis prepared by Assegid Alemu entitled “THE
PRACTICES OF KAIZEN PHILOSOPHY: IN THE CONTEXT OF DIRE DAWA NATIONAL
CEMENT SHARE COMPANY” and examined the candidate. We recommend that the study be
accepted as fulfilling the thesis requirement for the degree of masters in business administration.
Board of Examiners
__________________ ____________ _________________
External Examiner Signature Date
__________________ ____________ _________________
Internal Examiner Signature Date
___________________ ____________ _________________
Chair person Signature Date
DECLARATION
I, the undersigned, declare that this study entitled “THE PRACTICES OF KAIZEN
PHILOSOPHY: IN THE CONTEXT OF DIRE DAWA NATIONAL CEMENT SHARE
COMPANY” is my own work. I have undertaken the research work independently with the guidance
and support of the research advisor. This study has not been submitted in this or any other university
and that all sources of materials used for the thesis have been duly acknowledged.
Name: Assegid Alemu
Signature: _____________
Date: MAY, 2018
DEBRE BREHAN UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
As a thesis research advisor, I hereby certify that I have read and evaluated this thesis prepared,
under my guidance, by Assegid Alemu entitled “THE PRACTICES OF KAIZEN
PHILOSOPHY: IN THE CONTEXT OF DIRE DAWA NATIONAL CEMENT SHARE
COMPANY”. I recommended that the study complies with the regulations of the University and
meets the accepted standards for the degree of masters in business administration.
Name: Tamiru Feyissa
Signature: _____________
Date: _____________________________
ACKNOWLEDGMENTS
First and above all, I praise God, the almighty for providing me with the strength to accomplish
this study and for all the blessings in my life.
I would like to express my sincere and heartfelt gratitude to my thesis advisor, Tamiru Feyissa
for his encouragement, support and continual guidance and understandings throughout the
research work.
My heartfelt thanks and sincere appreciation are extended to all members of my family for their
moral and financial support and to all others who directly or indirectly contributed to the
successful completion of the study.
Last but not least, I would also like to extend my sincere gratitude to all the participants of the
study for their genuine response to the data gathering tools.
TABLE OF CONTENTS
Content Page
Acknowledgements………………………………………………………………….....................iv
Table of Contents………………………………………………………………….........................v
List of Tables…………………………………………………………………............................viii
List of Figures …………………………………………………………………..........................viii
Acronyms and Abbreviations …………………………………………………………………....ix
Abstract…………………………………………………………………........................................x
CHAPTERONE: INTRODUCTION……………………………………………….......................1
1.1 Background of the study……………………………………………………………………....1
1.2 Background of the company…………………………………………………………………..2
1.3 Statement of the problem………………………………………………………………….......3
1.4 Research Questions……………………………………………………………………………6
1.5 Objective ……………………………………………………………… ……………………..6
1.5.1 General objective …………………………………………………………………….....6
1.5.2 Specific objective ……………………………………………………………………… 6
1.6 Significance of the study……………………………………………………………………....6
1.7 Scope of study……………………………………………………...........................................7
1.8 Limitations of the Study…………………………………………………………….………….7
1.9 Organization of the study ……………………………………………………………………...7
CHPTER TWO: LITERATURE REVIEW……………………………………………………….8
2.1 Theoretical framework………………………………………………………………………...8
2.2 Principles of Kaizen………………………………………………………………………….10
2.3 The Concept of PDCA Cycle………………………………………………………………...11
2.4 Kaizen and Management……………………………………………………………………..12
2.5 Kaizen and Training………………………………………………………………………….13
2.6 Kaizen Tools…………………………………………………………………........................14
2.6.1 Five „S‟/5S/………………………………………………………………………….....14
2.6.2 Quality Control Circle……………………………………………………………….....15
2.6.3 Suggestion System…………………………………………………………………......16
2. 6.4 Waste /Muda/ Elimination……………………………………………………………16
2. 6.5 Total Quality Control………………………………………………………………....18
2. 6.6 Total Productive Maintenance………………………………………………………..18
2.7 Kaizen Experience in Africa…................................................................................................18
2.8 Kaizen in Ethiopia……………………………………………………………………………19
2.9 Obstacles of kaizen Implementation……………………………………………………..…..20
2.10 Empirical literature…………………………………………………………………………21
2.11 Conceptual Framework…………………………………………………………………..…23
CHAPTER THREE: RESEARCH METHODOLOGY…………………………………………24
3.1 Research design……………………………………………………………….……………...24
3.2 Target Population……………………………………………………………………............24
3.3 Sampling technique and Sample size ………………………………………………………..25
3.4 Source of data………………………………………………………………………………..26
3.5 Data collection Instruments………………………………………………………………….27
3.5.1. Questionnaire………………………………………………………………………....27
3.5.2.Interview ……………………………………………………………………………27
3.5.3. Observation ………………………………………………………………………....28
3.6 Procedures of data collection…………………………………………...................................28
3.7 Data processing and Analysis………………………………………………………………..28
3.7.1. Data processing………………………………..………………………………...……..28
3.7.2. Data Analysis………………………………..………………………………...…...…..29
3.8 Ethical consideration ……………………………………………………………...................29
3.9 Validity and Reliability…………………………………………………………….…...........29
3.9.1 Validity …………………………...………………………………………...........29
3.9.2 Reliability……………………………………………………………….................30
CHAPTER FOUR: DATA ANALYSIS, RESULTS AND DISCUSSION..................................31
4.1. Introduction............................................................................................................................31
4.2 Background of the Respondents……………………………………………………………..31
4.3 Levels of kaizen Implementation.............................................................................................33
4.3.1 Five S…………………………………………………………………………………33
4.3.2 Quality control circle…………………………………………………………………34
4.3.3 Suggestion System……………………………………………………………………35
4.3.4 Waste Elimination…………………………………………………………………...…36
4.3.5 Total quality control…………………………… …………………………………….36
4.3.6 Total productive maintenance………………………………………………….……...37
4.3.7 Extent of kaizen tools implementation………………………………………….…….38
4.3.8 Training provision………………………………………………………………..……39
4.4 Achievements gained by implementing kaizen ......................................................................40
4.4.1 Correlation between kaizen tools and achievement……………………………….……….41
4.4.2 Correlation analysis between training and kaizen achievement……………………….......42
4.4.3 Correlation analysis between variables…………………………………………..………...44
4.5Challenges of kaizen implementation.......................................................................................45
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS……………47
5.1 Summary……………………………………………………………………………………..47
5.2 Conclusions.............................................................................................................................49
5.3 Recommendations...................................................................................................................50
References………………………………………………………………………………………..52
Appendices
Appendix (A) structured Questioners
Appendix (B) Interview questions
Appendix (C) Observation check-list
Appendix (D) Kaizen Photos
List of Tables
Table 3.1 sample size…………………………………………………………………….26
Table 3.2 Reliability test………………………………………………………………....30
Table 4.1 General Profile of respondents…………………………………………. …...32
Table 4.2 Results for Mean Value & Std. deviation of five S(5S)…………… …...........33
Table 4.3 Results for Mean Value & Std. deviation of Quality control circle………......34
Table 4.4 Results for Mean Value & Std. deviation of Suggestion System…………......35
Table 4.5 Results for Mean Value & Std. deviation of waste elimination……………....36
Table 4.6 Results for Mean Value & Std. deviation of Total quality control………........36
Table 4.7Responses on machine /equipment breakdown……………………………......37
Table 4.8 Results for Mean Value & Std. deviation of Kaizen tools………………….....38
Table 4.9 Results for Mean Value & Std. deviation of Training………………………...39
Table 4.10 Mean& Std. deviation of achievements by kaizen…………………………..40
Table 4.11 Correlation between kaizen tools and kaizen achievements………………....41
Table 4.12 Correlation analysis between training and kaizen achievements…………….42
Table 4.13 Correlation Analysis between Variables……………………………………..44
Table …4.14 Challenges of Kaizen implementation…………………………………….45
List of Figures
Figure 2.1 Diagram for the conceptual framework.............................................................23
Acronyms and Abbreviations
BPR Business Process Reengineering
CI Continuous Improvement
EKI Ethiopian Kaizen Institute
GDP Gross Domestic Product
GTP Growth and Transformation Plan
GRIPS National Graduate Institute for Policy Studies
JICA Japan International Cooperation Agency
MOFED Ministry of Finance and Economic development
NCSC National Cement Share Company.
NPC National Planning Commission
ODA Official Development Assistance
OJT on the Job Training
PDCA Plan-Do-Check-Act
QCC Quality Control Circle
SDCA Standardize-Do-Check-Act
TQC Total Quality Control
TPM Total Productive Maintenance
Abstract
The purpose of this study was to investigate the practices of kaizen philosophy in Dire Dawa
National Cement Share Company. It sought to find out the level of kaizen implementation in the
company, the extent of kaizen training provision, the achievements gained as well as the
challenges faced by the company in implementing kaizen. To address the objectives, descriptive
research design was employed, and mixed research approaches (i. e. an approach of both
quantitative and qualitative) were used. Out of 243 respondents included in the study, 3
respondents were purposely selected for an interview based on the researcher’s knowledge and
their better knowledge on kaizen practices while the remaining 240 respondents were selected
for questionnaire by stratified sampling method. From the total of 240 questionnaires distributed
to respondents, 236 were properly filled and collected. The quantitative data were analyzed by
using the statistical package for social science (SPSS) Version 21and the qualitative data were
analyzed by descriptive narrative method. Descriptive statistical analysis was used to investigate
the implementation of kaizen tools and kaizen training, achievements obtained as well as
challenges faced by the company and simple correlation analysis was used to observe the degree
of relationship between kaizen tools and achievements, training and achievements and between
variables. The results from the study show that on average kaizen tools have high level of
implementation in Dire Dawa National Cement Share Company: with 5S having the maximum
level of implementation and suggestion system and Total quality control (TQC) having the least
level of implementation. Regarding challenges faced in kaizen implementation, lack of
commitment and considering kaizen as a short term project posed the higher challenge whereas
insufficient training and insufficient participation by workers posed the lower challenge. Results
from the correlation analysis show that implementation of training and kaizen tools were
significantly related to achievemen
CHAPTER ONE
1. INTRODUCTION
1.1 Background of the Study
Many methods of improving manufacturing operations performance have been developed
over the years. Among these improvement possibilities there is one, which is derived from
Japanese companies and which brings them great success, it is the concept of Kaizen. In
Japanese management, kaizen means “continuous improvement” involving everyone in the
organization from top management, to managers then to supervisors, and to workers
(Thessaloniki, 2006).
The origin of Japan‟s kaizen movement was the quality control method imported from the
United States (US) in the post World War II period. Japan assimilated and developed this as
its own management practice method which later even surpassed performance in the US. This
adapted method, which became known as kaizen, spread rapidly among Japanese companies
including a large number of small and medium-sized enterprises. It subsequently spread
overseas as Japanese business activities expanded abroad and Japanese companies began to
build production networks with local companies (Izumi, O., Kenichi, O., & Sayoko, U.,
2009).
Imai (1986) introduced kaizen to the international audience and asserted that kaizen is an
umbrella concept for a large number of Japanese business practices that focuses on the way
people approach work. It shows how management and workers can change their mindset
together to improve their productivity. While there are many strategies for management
success, kaizen is different since it helps focus in a very basic way on how people conduct
their work. The beauty of kaizen is that it can realize productivity improvements with little
additional investments. Simplicity and cost effectiveness are the major reasons why kaizen is
well appreciated globally.
Japan offers assistance for kaizen in many developing countries through private channels such
as intra-company technology transfer and support for local suppliers, as well as through
public channels such as official development assistance (ODA) and guidance provided by
various public organizations (Imai, 1986).
By now, there is a need for Japan to more actively propagate the idea of kaizen in Africa as an
additional menu item in their industrial development strategies. This is partly because of
increased interest among African countries in the growth agenda in general and in East Asia‟s
industrial experience in particular (Izumi et al., 2009).
The introduction of kaizen as a management tool in Ethiopia has been started with the
assistance of JICA in response to the request of the government of Ethiopia to the government
of Japan for kaizen technology transfer to Ethiopia. After the project design phase was
completed, the former Ministry of Trade and Industry established kaizen unit with
professionals drawn from the ministry and relevant institutes, and JICA deployed a consultant
team to work with the Unit. The kaizen project was officially launched with the first National
Kaizen Seminar in the presence of high level officials from both sides. With the project pilot
companies, kaizen is selected as one of management tools to improve and enhance managerial
capability to implement Growth and Transformation Plan (GRIPS, 2011). The main objective
of Ethiopian Kaizen is, changing of attitudes as a driving force for competiveness (EKI,
2012).
The contribution of the industry sector to GDP in Ethiopia compared to other sectors like
Agriculture and service sectors were poor between years 1998 and 2007; particularly the
contribution of manufacturing to overall GDP was 5.1% in comparison to 46.3% of the
agricultural sector and 40.3% of the service sector (Ishiwata, 2009). Berhanu (2014) described
in his research entitled „‟Practices and challenges of kaizen implementation at Entoto
polytechnic cluster college‟‟ there have been limited studies conducted on Kaizen philosophy
in business organization at different levels in Ethiopia and the conclusions in the studies
cannot be generalized to all business organizations in the whole country.
Therefore, the purpose of this research is to investigate the practices of Kaizen in accordance
with its tools in Dire Dawa National Cement Share Company (NCSC).
1.2 Background of the company
Dire Dawa National Cement Share Company is located in eastern Ethiopia just at the entrance
of the queen city of Dire Dawa at 515 km. from Addis Ababa. It has been renovated from one
of the first cement factory in Ethiopia with the long history of over two generations in 2012
GC. The company produces of high graded cement called Ordinary Portland Cement and
Portland Pozzolana Cement amounted to 3,000 Ton of Clinker per day or 90,000 bags of
cement per day.
It shares 1.2 million ton of the country‟s total cement produce per annum. It has the objectives
of fulfilling the unleashed demands of the public and the private cement demands of
construction sectors. Beyond this, Dire Dawa National Cement earns foreign currency from
cement export to Djibouti and Somali land that the country demands for other economic
generations and to finance and import of heavy machinery spare. It also accommodates for
over one thousand employment opportunity in permanent and temporary bases. The industry
in its ongoing operation pays high tax that in its outcome augments tax funded infrastructures
which in return trickles down to the public investment. With its all these economic and social
benefits in building the Nation, Dire Dawa National Cement is striving in mitigation of
environmental hazards in frontline of the world. It is being on the move with a share of
responsibilities in rehabilitation works and other related duties for the sustainable
environment that safeguards the ecosystem where human being, the fauna and flora rely at the
setting of the industry.
The vision of Dire Dawa National Cement Company is „‟to become the leading industrial
group in the region by being the front runner in all the sector we operate in and position in the
enterprise competitively in the dynamic global business environment. The mission is „‟to
supply products that are Leaders in quality, Cost and Customer Satisfaction through the
integration of People, Technology, and Systems‟‟. To address its vision and mission, the
company has started implementing kaizen in since 2016 GC
1.3 Statement of the Problem
The main objective of industries today is to increase productivity through system
simplification and incremental improvements by using modern available techniques.
Improving customer service, making operation faster, more operation and reduction in costs
are challenges faced by most industries today. To meet these challenges many companies in
the world searching to improve their ability to compete globally. One of the most recognized
technique in order to minimize such problems is kaizen- continuous improvement which was
created in Japan and it becomes an important and widely used in various industries (Izumi et
al., 2009).
According to Imai (1986) Japan employed Kaizen and all the concepts which the term carries
such as 5S, Suggestion Systems, Seven wastage/muda/ elimination, quality control circle
(QCC), total quality controlt (TQC), Total Productive Maintenance (TPM), Just in Time
Kanban System Toyota Production System, Lean Production and others.
Kaizen is continuing improvement involving everyone from workers, middle and top
managers. The word indicates a process of continuous improvement of the standard way of
work. Moreover, Imai suggested that, it is a continuous improvement in personal life, home
life, social life, and working life. Anyone who contribute to improvement by continuous
suggestion improvement, are encouraged and suggestions are not presented once a month or a
year but they are continuous (Imai, 1986).
Niraj &Mayur (2016) Kaizen is a Japanese term that means continuous improvement, taken
from words 'Kai', which means continuous and 'zen' which means improvement. Some
translate 'Kai' to mean change and 'zen' to mean good, or for the better.
African manufacturers are not only disadvantaged by the technological gap but also by the
lack of knowledge in key managerial methodologies like kaizen. While engineering capacity
may take time to catch up, managerial capacity may be improved more quickly since kaizen
tools are developed in a way to be appreciated by all the workers, and its fundamental
methodology is not very complicated (Izumi et al., 2009).
The second Ethiopia‟s growth and transformation plan has enormous concern for quality,
productivity, competitiveness and existing capacity utilization in all productive sectors of the
economy. Pertinent to industrial sector, it is aimed to enhance existing industries
technological capabilities (technology adoption and imitation) so as to achieve productivity
and quality improvement in all priority manufacturing industries. To this end, the nation will
exert massive effort in the dissemination of a Japanese management philosophy called Kaizen
(NPC, 2016).Kaizen has been implemented across different industries and manufacturing
sectors successfully in Ethiopia, as a result significant achievements have been attained
through the implementation of the Kaizen concept. On the other hand, there are also a number
of serious challenges facing the implementation of the Kaizen program such as limited Kaizen
knowledge and the readiness and commitment of companies (EKI, 2014).
Nderi (2012) conducted a study on the relationship between kaizen implementation and
operations performance improvement in the case of Kenyan manufacturing firms. The
findings indicated that that kaizen implementation influences operations performance
measures positively.
In Ethiopia, so far, there have been limited and inconclusive studies conducted on the
practices of Kaizen in business organizations at different levels.
Nesra (2012) conducted a quantitative study entitled the role of the Ethiopian Government in
implementing Kaizen as a modern management tool for quality and productivity at Kadisco
Chemical Industry in Addis Ababa. The findings of her study indicated that the
implementation of the Kaizen philosophy was found to increase labor productivity by
reducing on average by 50% time wastage for searching tools; improved a defect ratio which
ranged from 50% to 70%; and improved lead time in the range of 16% to 90%.
Asayehgn (2014) conducted a study on the Analysis of Kaizen implementation in Northern
Ethiopia‟s Manufacturing Industries by undertaking three pilot companies namely Mesfin
industrial engineering, Sheba Leather and Almeda textile factories. Asayehgn described that
kaizen is partially implemented in the factories, Employee‟s lack a capacity to accept kaizen
and executive managers of three pilot companies were not committed. Among the beginning
level systems of Kaizen which is 5S only three of them implemented which are sorting,
setting in order, and shining but not standardizing and sustaining.
Alebel (2016) conducted a study on the achievements and challenges of Kaizen theory
implementation in Sino Ethiopia Pharmaceutical and Awash Tannery. Through the
implementation of kaizen, both Sino Ethiopia Pharmaceutical and Awash Tannery have
gained advantages such as; financial, cost reduction, obtaining additional income, reduction in
defect rate, decrease down time, reducing time loss for searching of tools, labor productivity
increased, and additional space obtained.
The Previous studies were confined to the study area and the conclusions in the studies cannot
be generalized to all business organizations in the whole country. Thus, in depth study is
essential to investigate the outcome of kaizen practice in accordance with its tools and then
come up with base line information which enables to tackle the challenges and disseminate
remarkable results from it. Therefore, this study has investigated the practices of kaizen
philosophy in Dire Dawa National Cement Share Company in accordance with its tools.
1.4 Research Questions
The study intends to address the following research questions:
To what extent kaizen philosophy is implemented within Dire Dawa National Cement
Share Company?
To what level kaizen training is provided in Dire Dawa National Cement Share
Company?
What are the major achievements gained during Kaizen implementation?
What are the major challenges encountered during Kaizen implementation?
1.5 Objectives of the Study
1.5.1 General Objective
The overall objective of the study is to investigate the practices of kaizen philosophy in Dire
Dawa National Cement Share Company in accordance with its tools.
1.5.2 Specific Objectives
In particular, the specific objectives of the study are:
To determine the extent of implementation of kaizen tools in Dire Dawa National
Cement Share Company.
To determine the level of kaizen training provision in Dire Dawa National Cement
Share Company.
To analyze achievements gained as a result of kaizen implementation.
To identify the challenges faced by the company in implementing kaizen.
1.6 Significance of the Study
The Japanese management technique, Kaizen is a recent philosophy in Ethiopia. Thus, the
study will contribute to enhance the existing knowledge on kaizen by serving as an addition to
the existing literature. The findings from this study may further aid all stakeholders within
Dire Dawa National Cement Share Company to better improve the implementation of kaizen
philosophy by sustaining their strengths and minimizing weaknesses. It can also provide
knowledge and insights into the adoption of kaizen by Ethiopian manufacturing firms.
1.7 Scope of the Study
In order to address the research objectives, the study was delimited to the practices of kaizen
philosophy. The study is limited to Dire Dawa National Cement Share Company as a research
setting. It is also delimited to the area of kaizen tools which includes 5S, Suggestion Systems,
seven wastage/muda/ reduction principle, Quality control circle (QCC), Total Quality control
(TQC) and Total Productive Maintenance (TPM).
1.8 Limitations of the Study
The study was limited to 5S, Suggestion Systems, Seven wastage/muda/ elimination, Quality
control circle (QCC), Total Quality control (TQC) and Total Productive Maintenance (TPM)
because these kaizen tools were highly implemented in most manufacturing industries in
Ethiopia as a whole and in Dire Dawa national cement company in particular.
Though the study did not include other kaizen tools such as Just in Time, Kanban System,
Toyota Production System and Lean Production, the absence of these tools did not affect
result of the study.
1.9 Organization of the study
The study was organized into five chapters with different sections and sub sections. The first
chapter is an introductory part which includes background, problem statement, research
questions, objectives, significance and scope of the Study. The second chapter reviews related
literature. In the third chapter the research methodology is discussed in detail. In the fourth
chapter the research findings, analysis and discussion of the findings that emerged from the
study are presented. The last chapter provides Summary, Conclusions and Recommendations.
CHAPTER TWO
2. LITERATURE REVIEW
2.1 Theoretical framework
The kaizen method has been established as an outcome of various activities undertaken for
improving the productivity and quality of Japanese products after mid1940s, as Japanese
manufacturers were urgently trying to catch up with the standards of American and European
manufacturers. Initially, efforts were made to learn from western management systems,
particularly the statistical quality control methods. Introduction of an annual award for quality
management, the Deming Prize, has contributed to awareness among enterprises and provided
opportunities to learn from best practices. Through this process, the western management
strategy was combined with Japanese management methodologies and gradually developed
into the kaizen system. Kaizen is an umbrella concept, means improvement, an ongoing
improvement involving everyone, top management, managers, and workers. Kaizen literally
means improvement - improvement in your personal life and your working life. When a
company adopts the kaizen model, it strives to improve its processes in small but meaningful
ways. And not just a one-time improvement, but a commitment to excellence by constantly
testing and improving the workflow, day in and day out (Imai, 1986).
In Japanese management, kaizen means “continuous improvement” involving the entire
workforce from the top management to middle managers and workers. Kaizen means
continuous improvement of productivity and quality, based on a participatory process
involving the entire workforce. With no requirement for huge investment, it is a low-cost
approach to productivity and quality improvement. Kaizen is applicable not only to the
manufacturing sector but also to the service sector, public organizations, and non-profit
organizations. The origin of Japan‟s kaizen movement was the quality control method
imported from the USA in the post-world war II period. Japan assimilated and developed this
as its own management practice method which later even surpassed performance in the USA.
This adapted method, which became known as kaizen, spread rapidly among Japanese
companies including a large number of small and medium-sized enterprises.
It subsequently spread overseas as Japanese business activities expanded abroad and Japanese
companies began to build production networks with local companies (Schroeder & Robinson,
1991).
Kaizen is the Japanese word for improvement or “change for the better” carrying the
connotation in industry of all the activities which take place in the Japanese workplace to
enhance the operations and environment. The phrase “change for the better” implies any
change that results in improvement which could be quality or other factors that customers or
an organization judges to be of value such as innovation, ease of use, on time delivery,
durability, operations flexibility, customer satisfaction and low cost (Zimmerman, 1991).
Kaizen is not just a management technique but a philosophy which instructs how a human
should conduct his or her own life. Kaizen is a philosophy and a workplace methodology that
allows everyone to take control of their work processes and improve them. By learning to
keep an eye out for possible changes, people are able to contribute in small ways that benefit
of the organization. As opposed to innovation which requires huge investments, kaizen can be
implemented with limited resources. It is an incremental effort starting from small steps
involving all individuals from top managers to those working in the factory floor. However,
commitment from the top management is essential. The best thing about kaizen and the
biggest reason that every company should adopt it is that it does not rely on expensive,
innovative solutions. Just the opposite is true. The core principle of kaizen is to make small,
immediate improvements in the processes and standards of the workplace. Looking for ways
to make small improvements should be part of everyone‟s job, every day of the week. And
after a period of time, all of these small improvements will add up to better working
conditions, a higher degree of safety, more efficiency, and ultimately, greater profits. Kaizen
is one of the most commonly used words in Japan. It is in the newspapers, on the radio and
TV. Japanese society is bombarded daily with statements regarding the Kaizen of almost
anything. In business, the concept of Kaizen is so deeply ingrained in the minds of both
managers and workers that they often do not even realize that they are thinking Kaizen. The
key difference between how change is understood in Japan and how it is viewed in the West
lies in the Kaizen concept. This concept is so natural and obvious to many Japanese managers
that they often do not even realize that they possess it.
This explains why companies are constantly changing in Japan. Within the Kaizen way of
thinking, not a day should go by without some kind of improvement being made somewhere
in the company. After WWII most Japanese companies had to start from the ground up. Every
day brought new challenges to managers and workers alike, and every day meant progress.
Simply staying in business required unending progress, and Kaizen has become a way of life
(Imai, 1997).
Cheser (1998) explains that kaizen is based on making small changes on a regular basis thus
reducing waste and continuously improving productivity, safety, and effectiveness. Kaizen is
participative and thus entailing the involvement of the workforce.
Kaizen is continuous in nature which signifies the embedded nature of the practice and it is
never ending journey towards quality efficiency and effectiveness in all activities. It describes
the viewpoints of various traditional quality management gurus on the concept of „zero
defects‟ and „do it better each time‟ that these strategies are the important ways to improve
quality continuously. „Zero defects‟ represents continuous improvement over quality by
detection of defects. A phrase „do it better each time‟ strategy is associated with constant,
conscious and committed efforts to reduce process variation. They conclude that continuous
improvement is the most important way to manage business through these strategies.
Although many firms have achieved process improvement through implementation of
continuous improvement program, the initial improvement is easily eroded back to the pre-
improvement level (Bateman and David, 2002).
2.2 Principles of Kaizen
Kaizen principles are a comprehensive way of approaching the continual improvement of
manufacturing processes. Each principle has a significant impact upon improvement of
quality and productivity. Kaizen philosophy embraces five main principles (Imai, 1986)
1. Processes must evolve by gradual improvement rather than radical changes.
In practice, kaizen can be implemented by improving every aspect of a process in a step by
step approach, while gradually developing employee skills through training education and
increased involvement resulting in quality improvement. With quality improvement,
employees meet together to discuss the current operations of the company. They decide what
things can be changed that will improve the quality of the company and of the products.
2. Human resources are the most important company asset
Kaizen must be practiced in tandem with "Respect for People" not resulting in outcomes such
as layoffs. Kaizen has become successful with many manufacturing companies because the
employees are involved. They feel that their opinion is important and this boosts the employee
morale. Keeping the employees happy will cause them to be more productive and satisfied
with their jobs.
3. Teamwork
One of the biggest principles of the kaizen approach is the ability to work in teams. Each
department is considered a team and they will be responsible for making small changes that
impact the organization. All employees from top manager to front line workers should share
common values, business objectives, and information. And, should fulfill their respective role
properly, enhancing their capabilities through exercising autonomy and creativity. The teams
will then report to their manager. The manager takes this information to management and the
entire process of kaizen is evaluated.
4. Discipline
In order for kaizen to be effective, discipline is necessary. Management as well as workers
needs to believe in the Kaizen idea and strive toward obtaining the small goals in order to
reach overall success. A strong commitment to discipline and to the kaizen method will prove
success for a company.
5. Continuous improvement
Improvement must be based on statistical or quantitative evaluation of process performance.
The small improvements will lead to bigger improvements throughout the entire company.
This is why kaizen is called a "continuous process improvement" system or a "continual
improvement method." Even with the changes, there are still small things employees can do to
change the way they work. There are simple things you can do to help your employees work
faster and become more efficient. All employees should have firm belief that the work place
must nurture a desire for continuous improvement Kaizen demands product or service quality
is improved and is monitored on a continuous basis.
2.3 The Concept of PDCA Cycle
The origin of Plan-Do-Check-Act (PDCA) cycle or Deming cycle can be traced back to the
Shewart (well-known statistician) thought in the 1920s. He introduced the concept of PDCA.
Deming the Total Quality Management (TQM) guru modified the Shewart cycle as: Plan, Do,
Study and Act. The Deming cycle is a continuous quality improvement model consisting of a
logical sequence of four repetitive steps for Continuous Improvement (CI) and learning. The
PDCA cycle is also known as Deming Cycle. Plan refers to establishing a target for
improvement (since kaizen is a way of life, there always should be a target for improvement
in any area) and devising action plans to achieve that target.
Do:- refers to implementing the plan. Check refers to determining whether the implementation
remains on track and has brought about the planned improvement. Act refers to performing
and standardizing the new procedures to prevent recurrence of the original problem or to set
goals for the new improvements. PDCA cycle revolves continuously; no sooner is an
improvement made than the resulting status quo becomes the target for further improvement.
PDCA means never being satisfied with the status quo. Because employees prefer the status
quo and frequently do not have initiative to improve conditions, management must initiate
PDCA by establishing continuously challenging goals (Watson, 1986).
2.4 Kaizen and Management
Kaizen management has two functions: Maintenance and Improvement. Maintenance
activities are directed towards maintaining existing technological, managerial, and operating
standards while improvement refers to improving existing standards (Imai, 1986).
2.4.1 Role of Top Management
Top management is responsible for establishing Kaizen as the overriding corporate strategy
and communicating this commitment to all levels through policy deployment of the
organization and allocating the resources necessary for Kaizen to work and build systems
procedures, and structure conducive to Kaizen.
2.4.2 Role of Middle Management
Responsible for implementing the Kaizen policies established by top management;
establishing, maintaining and improving work standards; ensuring employees receive the
training necessary to understand and implement Kaizen and employees learn how to use
problem solving and improvement.
2.4.3 Role of Supervisors
Responsible for applying the kaizen approach in their functional roles; engage in kaizen
through the suggestion system and small group activities, practice discipline in the workshop,
engage in continues self development to become better problem solvers, improving
communication at the work place; maintaining morale and providing coaching for teamwork
activities.
2.4.4 Role of Employees
Responsible for participating in kaizen through teamwork activities, making kaizen
suggestions, engaging in continuous self-improvement activities, continually enhancing job
skills through education and training and continually broadening job skills through cross-
functional training.
2.5 Kaizen and Training
Training on Kaizen requires not only On the Job Training (OJT) but also formal training. The
details of problem solving method have to be learnt particularly by the middle managers,
which should be facilitators in detecting problems and the solution measures through team
approach followed by each work unit. Various techniques to assess, to measure and to
monitor the problem and to gather information related to the problem solving process are all
to be acquired both in OJT and the formal training. Leadership and the creating positive mind
set are other important interpersonal skills for the middle managers (Toshihiko H. and Wimal
K., 2011).
Norhayati (2012), Baldrige Award winners place a great deal of emphasis on training and
support it with appropriate provision of resources. Motorola allocates 2.5 % of payroll costs
or $120 million annually to training 40% of which goes to quality training. Training is an
important factor that helps in making efforts toward quality improvement. Quality training
includes educating and training all employees, help employees to increase knowledge, provide
information about the mission, vision, direction and organization structure to enable them to
gain skills in an effort to improve the quality and thus solve the problem.
It is often said that managers have a better view of matters than their workers because they are
more informed, have broader skills and are exposed to a wider range of work environments
and situations. If workers are given the necessary information and training, they might be able
to reach similar conclusions to the managers, thereby freeing managers' time for strategic
aspects of the business. Providing training should make workers more aware of hazards at the
workplace and enhance their capacity to effectively contribute to the reduction or elimination
of such hazards. Working conditions and productivity within your enterprise will certainly
improve as a consequence of their contribution (ILO, 1998).
2.6 Kaizen Tools
According to Imai (1986) the techniques associated with Kaizen implementation include total
quality control (TQC)/TQM, just in time (JIT), total productivity maintenance (TPM), five‟s‟
(5s), Benchmarking, skill gap analysis, six sigma, Policy Deployment, a Suggestion System,
Small-group activity, kanban system, elimination of the seven kinds of wastes, poke-yoke
/error proofing.
2.6.1 Five’s’ /5S/
According to Imai (1986) 5S is a methodology of managing a workplace or workflow with the
intention of improving efficiency, eliminating waste, and increasing process consistency. It
derives its name from the use of five Japanese words beginning with the letter S as the corner
-stones of the philosophy. These words are: "Seiri" meaning Sort, "Seiton" meaning set in
Order, "Seiso" which implies Shining or Cleanliness, "Seiketsu" which means Standardize,
and "Shitsuke" which implies Sustaining. GRIPS (2009) also defined the 5S‟s as a system of
steps and procedures that can be applied to individuals and teams to arrange work areas in the
best manner and condition to optimize performance, comfort, safety and cleanliness.
2.6.1.1 Seiri (Sort)
The first step of 5S is to differentiate between what you need and what you don't or what is
essential and what is not. To do that effectively, you need to eliminate unneeded materials,
tools or equipment from the work place.
2.6.1.2 Seiton (Set in Order).
Once sorting has taken place, efficient storage methods must be enacted so that items are easy
to locate and use, as well as put away. The logic behind this stage is that everything that is
needed to do a job should be placed where it can be easily accessed. Every tool, every
Standard Operational Procedure (SOP) and Material Safety Data Sheet (MSDS) manual must
be designated in a place where it can be found easily when needed (Howell, 2009).
2.6.1.3 Seiso (Shine).
This phase assumes that everything unneeded is thrown away or disposed and all the tools
now available are organized for efficient use.
This phase means thoroughly clean up clutter, fixes things and involves checking and
inspection of everything to not only clean up the work place but also to eliminate the root
cause of that problem (Hough, 2008).
2.6.1.4 Seiketsu (standardize)
It involves working with the team in such a way that the team members without exception
agree to implement the new way of working as the normal way of working. Standardizing
creates a work area free of checklists; if appropriate standards are put in place it will be easier to
maintain and continue improving. By implementing this we make sure that the first three steps are
maintained (Howell, 2009).
2.6.1.5 Shitsuke (Sustain).
Sustaining is the end result of how well we have performed the previous four S's. It involves
building self discipline and making a habit of engaging in 5S„s by establishing standards.
Employee must follow established and agreed upon rules in their daily work. It is the most
difficult phase to be executed in the process (Van Patten, 2006).
2.6.2 Quality Control Circle
Quality control circles were stared in Japan in 1962 by Kaoru Ishikawa under The Union of
Japanese Scientists and Engineers support. Quality Control Circle (QCC) is a small group of
staff who meet regularly to discuss quality related work problems so that they may examine
and generate solutions to these. The circle is empowered to promote and bring the quality
improvements through to fruition. It is designed to address not only quality issues but also
such issues as: cost, safety, and productivity, quality circles may be regarded as group
oriented kaizen activities. Thus the adoption of quality circles (quality improvement team) has
a social focus. There must be commitment from senior management, unit management and
supervision, other staff and of course the circle members. The QC activities improve
communications, teamwork to solve problems, and sharing their findings among themselves
and with other team members in the organization. QCC activities pursue continuous
improvements in the workplace with self-disciplined and humanity-focused approaches,
utilizing scientific techniques (Thessaloniki, 2006).
2.6.3 Suggestion system
It involves any constructive ideas which helps for minimizing cost, improvement of product
quality, efficiency at workplace, customer service and working condition and any ideas and
suggestion which benefits the organization. Ideas and suggestions of employees forwarded
upward reviewed by committee and approved and finally implemented and end with giving
appropriate rewards for the deserved employees. In most cases these are not ideas for major
changes. Suggestions are not limited to a specific area such as production or marketing.
Kaizen is based on making changes anywhere that improvements can be made.
2.6.4 Waste (Muda) Elimination
Muda in Japanese means waste. Any non value adding activities in the process- of people and
machines are classified as muda in Japan. Hence, according to (Imai, 1997) Muda is any non-
value-added task. Muda elimination can be the most cost effective way of improving
productivity and reducing operating costs.
Imai (1997) classified muda (waste) in to the following seven categories.
2.6.4.1 Muda of Overproduction
Muda of overproduction is a function of the mentality of the line supervisor to be on a safe
side, due to uncertainties of machine filer, rejects and absentees. It results in raw material
conception before they are needed, wasteful input of utilities and manpower, additions of
machinery, increase in interest burdens, additional space to store, excess inventory, added
transportation and administrative costs.
2.6.4.2 Muda of Inventory
Products kept in the inventory do not add any value to the organization rather they occupy
warehouse space, and demanding additional facilities such as warehouses and forklift. When
market test or need changes product quality get worse and may even become obsolete over
night. Items in the inventory gather dust (no value added), and their quality depreciate. When
an inventory level is high, nobody gets series enough to deal with problems like quality,
absenteeism and machine downtime and provides little room for Kaizen.
2.6.4.3 Muda of Repair or Rejects (Defects)
Rejects interrupt production and require expensive rework. In today‟s mass production
environment a malfunctioning, high speed automated machine can spew out a large number of
defective products before the problem is detected. Imai, further discussed, too much
paperwork and many design changes will also results in a muda of reworks
2.6.4.4 Muda of Motion
Motion of persons not directly related to adding value is unproductive. Hence, workers should
avoid walking and carrying non-value added activities, for the reason that it is not only
difficult but also it represents muda. The Ethiopian Kaizen manual also refers Muda of motion
as any transport or transference of materials, parts, finished goods, from one place to another
for any case.
2.6.4.5 Muda of Processing
At every step in which a work piece or a piece of information is worked on, value is added
and sent to the next process. Imai refers here is muda of processing is modifying such a work
piece or piece of information. He also mentioned inadequate technology or design and failure
to synchronize process leads to muda in processing.
2.6.4.6 Muda of Waiting
Muda of waiting occurs when the hands of the operator are ideal due to line imbalances, lack
of parts or machine down time, monitoring the machine when the machine is performing
value added job. The Ethiopian Kaizen manual refers muda of waiting occurs due to both
ideal human and machine factors.
2.6.4.7 Muda of Transportation
Though, transportation in the work place is an essential part of operations, moving materials
or products adds no value stressed elimination of this muda will improve workplace
operation. Kaizen focuses on eliminating wastes (Muda) and loses from the processes. Waste
is any non-value adding procedure, item, or activity but consumes resources. Wastes consist
of over production, inventory, repair/rejects, motion, processing, waiting and transport.
2.6.5 Total Quality Control (TQC)
Total Quality Control is a management tool of integrating employee in every area within the
organization for improving total performance. Total Quality Control (TQC) is a
comprehensive and structured approach to organizational management that seeks to improve
the quality of products and services through ongoing refinements in response to continuous
feedback. Total quality is a description of the culture, attitude and organization of a company
that strives to provide customers with products and services that satisfy their needs. The
culture requires quality in all aspects of the company‟s operations, with processes being done
right the first time and defects and waste eradicated from operations. TQC is a method by
which management and employees can become involved in the continuous improvement of
the production of goods and services. It is a combination of quality and management tools
aimed at increasing business and reducing losses due to wasteful practices. TQC places
emphasis on the involvement of people as the key to improved quality. It is mainly concerned
with continuous improvement in all work, from high level strategic planning and decision-
making, to detailed execution of work elements in the lower level. It stems from the belief
that mistakes can be avoided and defects can be prevented. It leads to continuously improving
results, in all aspects of work, as a result of continuously improving capabilities, people,
processes and machine capabilities (Imai, 1997).
2.6.6 Total productive maintenance (TPM)
According to Thessaloniki (2006) total productive maintenance focuses on keeping all
equipment in best condition to prevent breakdowns and delays in manufacturing process.
TPM have the goal of increasing production, job satisfaction and morale of employee by
maintaining plants and equipment it will improve efficiency rate of equipment and reduction
of cost by eliminating breakdowns and defects.
2.7 Kaizen Experience of Africa
Japan offers assistance for kaizen in many developing countries through private channels such
as intra-company technology transfer and support for local suppliers, as well as through
public channels such as official development assistance (ODA) and guidance provided by
various public organizations. By now, kaizen assistance is one of the standard menu items of
Japanese industrial support in developing countries.
While such assistance initially focused on East Asia where Japan had active business
partnerships, it has now been implemented widely in other regions including South Asia,
Latin America and Eastern Europe. However, as far as Sub-Saharan Africa is concerned,
knowledge sharing and implementation of kaizen has been rather limited except in a few
notable cases. There are a lot of unexploited benefits of selective and well calibrated
application of kaizen from which African countries can draw upon to improve their
production and service units. There is also a need for Japan to more actively propagate the
idea of kaizen in Africa as an additional menu item in their industrial development strategies.
This is partly because of increased interest among African countries in the growth agenda in
general and in East Asia‟s industrial experience in particular. In addition, this is important
because of the plans announced by the Japanese government at the Fourth Tokyo International
Conference for African Development (TICAD) at Yokohama in May 2008 to promote trade
and investment in Africa (Izumi et al., 2009).
2.8 Kaizen in Ethiopia
The introduction of kaizen as a management tool in Ethiopia has been started with the
assistance of JICA in response to the request of the government of Ethiopia to the government
of Japan for kaizen technology transfer to Ethiopia. After the project design phase was
completed, the former Ministry of Trade and Industry established kaizen unit with
professionals drawn from the ministry and relevant institutes, and JICA deployed a consultant
team to work with the Unit. The kaizen project was officially launched with the first National
Kaizen Seminar in the presence of high level officials from both sides. Kaizen is selected as
one of management tools to improve and enhance managerial capability to implement Growth
and Transformation Plan (GRIPS, 2011). The Government of Ethiopia implemented Process
Reengineering (BPR) before implementing Kaizen.
The Kaizen project in Ethiopia consisted of three phases. The first phase was planning &
preparation phase started in August, 2009. The second phase was implementation phase and
Phase three involves Presentation, celebration, dissemination and follow up. The Ethiopian
Government has established Ethiopian Kaizen Institute (EKI) in October 2011 under the
Ministry of Industry with the objective of transferring, customizing, disseminating,
accumulating local best practices and crafting Ethiopian Kaizen management philosophy.
The institute shall have the roles, power and responsibility to:
Formulate strategy and plan that assist in the dissemination of the kaizen concept and
tools and implement same upon approval.
Create country wide quality and productivity movement that could enable to effectively
implement government policies and strategies.
Prepare, and distribute Kaizen training and consultancy manuals customized to micro,
small, medium and large enterprises and follow up their applications; etc (EKI, 2011).
2.9 Obstacles of Kaizen Implementation
The Japanese concept of kaizen, or continuous improvement, has been long lauded as a
success. However, there have been charges levied against kaizen that it is simply a passing
management fad, popular one day but out the next. Such an attitude is a truism: if a company
treats it as a fad then it will be a fad. Here are six reasons why organizations fail when
implementing kaizen. One of the reasons of kaizen failure is that a company is not fully
committed to making kaizen the cornerstone of their strategy. From different literatures: here
are several obstacles in organizations when implementing kaizen. Firstly, kaizen is seen as a
short term project. The emphasis here is on short term improvement. Although the concept of
kaizen is quite simple to understand, it is difficult to master and will need time before it is
fully understood by all employees. The main problem with implementation is that often
companies expect a quick turn around and visibility in Key Performance Indicators (KPIs)
within a year, and when it doesn‟t appear, write kaizen off as a failure. Secondly, kaizen can
only succeed in places where there is a true desire to improve. While it is important to tie
kaizen to KPIs, over emphasis on it would ignore the fact that improvements are often
incremental, not revolutionary. Kaizen is like a snowball rolling down a gently sloping hill –
it gathers momentum and increases in size as it comes down. The improvements gradually
accumulate overtime, as processes are perfected and methodologies tweaked. Thirdly, lack of
commitment is only one of several common reasons why kaizen implementation fails. Kaizen
will never succeed in an organization bogged down by a bureaucratic mind-set, filled with
rules and procedures with people who would resist any sort of change. Another type is where
change is punished and blocked, whether formally or socially, decimating any incentive to
improve. Fourthly, kaizen will never work if people do not implement its full suite of tools
and concepts, with sufficient training given to take advantage of them (training on kaizen isn‟t
provided). All the tools and the mindset that everything can be improved, is an essential part.
Fifthly, kaizen implementation will fail where management does not support kaizen
initiatives. The importance of support cannot be over emphasized. It is essential that
management isn‟t just fully on board, but essential that they want to fully embrace the long-
term commitment of kaizen to the organization.
They need to pass on their enthusiasm and demonstrate that even they are continually looking
for new and better ways of doing things (Murata and Katayama, 2010).
2.10 Empirical Literature
There is large evidence that kaizen implementation have positive impact on the performance of
the industries (Williams, 2001).
Different scholars in the area have been arguing that proper understanding of policy
instruments, methods, culture, principles, and application techniques of the kaizen philosophy
would be one essential step towards addressing and solving the currently existing problems and
challenges. By doing so, enterprises move towards incidentally achieving the desired
developmental objectives (Murata, K., & Katayama, H., 2010).
In Ethiopian context so far, there have been limited and inconclusive studies conducted on the
implementation of Kaizen in business organizations at different levels. Nesra Seid (2012)
conducted a quantitative study on the role of the Ethiopian Government in implementing kaizen
as a modern management tool for quality and productivity at Kadisco Chemical Industry in
Addis Ababa.
The findings of this study indicated that the implementation of the Kaizen policy was found to
increase labor productivity by reducing, on average of 50% time wastage for searching tools;
improved a defect ratio which ranged from 50% to 70%; and improved lead time in the range
of 16% to 90%. The study thus concludes that the implementation of Kaizen at Kadisco
Industry has brought those benefits.
As noted in a study based on the three pilot companies (Mesfin Industrial Engineering PLC,
Almeda Textile Factory PLC, and Sheba Leather and Tanning Industry PLC), the study found
that the employees didn‟t have the full capacity to accept the kaizen management system. If
they had for example, by forming a kaizen cross functional teamwork approach, workers could
have been empowered to challenge the status quo, gathering the most conspicuous internal and
external factors that could be become part of the work ethics necessary for continuous
improvement of productivity. Instead, it was found that some of the executive managers were
themselves not committed to the kaizen teamwork because they didn‟t usually participate nor
did they allow the shop floor workers or operators to participate in team group work. In
addition, the tools and techniques used by the pilot companies did not create lean enterprises
that could have minimized waste.
This might be because the internal and external training given to the employees was designed
for very short periods of time and some of the managers and employees of the pilot companies
were not yet fully committed to the kaizen management philosophy. Despite these weaknesses,
however, it can be appreciated that though only partially committed to the kaizen management
philosophy, the three pilot companies have marginally reduced the costs of production,
improved quality, reduced lead time and improved customer‟s satisfaction (Asayehgn , 2014).
On the other hand, a study found that Ethiopia does not have problems of leadership, since
kaizen was driven by strong commitment of the top leader. As a result, kaizen has come to be
known among policy makers and business managers in Ethiopia (GRIPS, 2011).
Kaizen implementation in private firm and in the context of the Ethiopian Government show
that there is a paradox and, therefore, seems strange. There is no conclusive empirical evidence
which clearly show whether or not the kaizen implementations in different contexts have
brought about positive outcomes (Birhanu, 2014).
2.11 Conceptual Framework
Successfully implemented Kaizen philosophy results in Product quality improvement, reduced
cost, reduced down time /reduced unproductive time, improved customer satisfaction, improved
safety and the like.
Figure 2.1 Diagram for the conceptual framework
Kaizen Tools
5S
Suggestion
Systems
Waste/Muda
elimination
QCC TQC TPM
,
Source: Developed by the Researcher, 2018
Source: Adopted from (Alebel, 2016).
CHAPTER THREE
3. RESEARCH METHODOLOGY
In this chapter research design, target population, sampling techniques and sample size, data
sources, and data gathering tools, data collection procedures, data processing and analysis,
ethical consideration, validity and reliability are discussed.
3.1 Research Design
Research design is the blueprint for fulfilling research objectives and answering research
questions (John, Hafiz, Robert & David, 2007). In other words, it is a master plan specifying
the methods and procedures for collecting and analyzing the needed information. The main
purpose of the study is to investigate the practices of kaizen philosophy in Dire Dawa
National Cement Share Company. Thus, the study is descriptive in nature because this type of
Product quality improvement
Cost reduction
Reducing lead time
Improving productivity
Employee motivation
Improved safety
study is conducted to provide detailed description about the existing phenomena and to justify
current condition (Jalu, 2015).
Creswell (2009) recommended a combination of qualitative and quantitative approaches for
doing research. Quantitative approach to research involves the generation of data in
quantitative form which can be subjected to rigorous quantitative analysis in a formal and
rigid fashion whereas, qualitative approach to a research is concerned with subjective
assessment of attitudes, opinions and behavior. Many researchers believe that mixed research
is a good way of approaching research because this approach counteracts the weaknesses in
both qualitative and quantitative research (Kothari, 2004). Thus, the study employed
qualitative and quantitative approaches to capture in depth and wider data for a thorough
investigation and understanding of the practices of kaizen in the company. To gather the
required data, the researcher used both primary and secondary data sources.
3.2 Target Population
The target populations of the study were all permanent employees of Dire Dawa National
Cement Share Company.
This is due to the fact that permanent employees having stayed within the company
permanently, they have an exposure to see changes done within the company uninterruptedly.
The target populations comprises of the management which include (CEO, Deputy CEO,
Division Managers, and Department Managers), Plant operation that include (employees who
are directly involved in manufacturing of the product), and support service which consists of
employees working in various departments (HRM, finance, purchasing /Supply chain/ and
marketing). There are 617 permanent employees in the company who are considered to be
relevant with the information needed on the topic under investigation (NCSC, 2018).
3.3 Sampling Technique and Sample Size
In this study, the population does not have homogeneous group, hence stratified sampling
technique was used in order to get representative for each group. Using stratified sampling
technique, the researcher has classified permanent employees of the company in to three
groups (strata) namely: 1. Management that consist of (1CEO, 2 Deputy CEO, 15 Department
managers, and 33 Division Managers), 2. Plant operation workers that include (488
employees who are directly involved in manufacturing of the product and 3. Support service
staffs which consists of 73 employees working in various departments (HRM, finance,
purchasing /Supply chain/ and marketing). Organizational structure of the company & the role
of employees were used as ground to classify employees in this way. Stratified sampling was
applied as a typical method of probability sampling technique and simple random sampling
was used to select respondents from each stratum while purposive sampling technique was
used as a key non-probability sampling tool in selecting kaizen officers. Therefore, the
researcher has employed both probability and non-probability sampling techniques in the
sampling process. There are 617 permanent employees in Dire Dawa National Cement Share
Company. To determine the sample size, a previously proven formula was applied (Borg and
Gall, 1979).
N
n =
1 + N (e) 2
Where, n= sample size
N= Total of population
e = Sampling error at 95% of level of confidence
n = 617 = 243
1 + 617(0.05)2
Table 3.1: Sample size
Respondents Population Sample
size
Sampling techniques
Plant operation 488 192 Simple random
sampling
Support service 73 28 Simple random
sampling
Management 51 20 Simple random
sampling
Kaizen officers/Steering
committee
5 3 Purposive sampling
Total 617 243
Source: NCSC, 2018
Out of 243 respondents included in the study, 3 respondents were purposely selected for an
interview based on the researcher‟s knowledge and their better knowledge on kaizen practices
while the remaining 240 respondents were selected for questionnaire on proportional basis.
Kothari (2004) recommended that if Pi represents the proportion of population included in
stratum i, and n represents the total sample size, the number of elements selected from stratum
i is Pi x n. Thus, [(488/617) x 243] = 192 Plant operation workers out of 488, [(73/617) x 243]
= 28 Support service employees out of 73 and [(51/617) x 243] =20 managers out of 51 were
selected.
The researcher has distributed 240 questionnaires to the selected respondents in the company.
Moreover, the researcher has undertaken observation to assure the data obtained through
questionnaires and interview.
3.4 Data Sources
In order to gather reliable information, both primary and secondary data sources were used.
Primary data are first hand data collected from primary sources. In this study, Primary data
were collected from the sample respondents through questionnaires and interviews.
Besides, a personal observation has been used to get additional information where
appropriate. Secondary data were obtained from various sources like minute, company
reports, circulars and other relevant documents about the company to make the study fruitful.
3.5 Data Collection Instruments
Questionnaire, structured interview and personal observation were used as data collection
instruments for the study. The data collection instruments were adopted from other sources
(Berhanu, 2014 & Alebel, 2016). These data collection instruments are presented in detail as
follows.
3.5.1 Questionnaire
To obtain the required information, the researcher has distributed 240 questionnaires to
sample respondents in the company. Respondents were Management, Plant operation workers
and Support service employees. A five-point likert scale: 1: strongly disagree, 2: disagree, 3:
neutral, 4: agree, 5: strongly agree was employed to measure the practices of kaizen
philosophy. The principles of questionnaires such as, use simple and clear languages,
statements should not be too long and use of appropriate punctuations were considered. The
content of the questionnaire was divided into four parts. Part one deals with demographic
information of the respondents. Part two contains questions related to level of implementation
of training and kaizen tools. Part three questions deals with results/achievements obtained by
implementing kaizen philosophy. The last part of the questionnaire contained questions
concerning challenges and constraints for the implementation of Kaizen
3.5.2 Interview
In order to enrich the data obtained through questionnaires, the researcher has conducted a
structured interview to three higher Kaizen officers who facilitate Kaizen implementation in
Management, Plant operation and Support service one from each. Kothari (2004)
recommended that in case of descriptive studies, we quite often use the technique of
structured interview because of its being more economical, providing a safe basis for
generalization and requiring relatively lesser skill on the part of the interviewer. The
researcher has asked questions in a prescribed order from higher kaizen officers of the
company and takes notes of the proceedings of the interview through direct personal
investigation and this will help the researcher to get more and significant information on the
study.
3.5.3 Observation
A personal observation has been used to triangulate questionnaire and interview responses on
kaizen practices in the company. The researcher has used observation check lists to record the
practices of kaizen in the company. The main advantages of observation are: subjective bias is
eliminated, the information obtained under this method relates to what is currently happening,
and it is independent of respondents‟ willingness to respond and as such is relatively less
demanding of active cooperation on the part of respondents (Kothari,2004).
3.6 Procedures of Data Collection
First, the questionnaires were pre-tested by some employees of the company that represent
each stratum and who had not been included in the main data collection. The purpose of the
pilot survey is to assess the relevance of the instrument designed to collect data for the study.
It also helps to find out ambiguities, omissions and misunderstanding (if any) of
questionnaires. From the experience gained in this way improvement has been effected. The
instruments were adapted to address the research questions. After collecting the required data,
processing and analyzing has been done to investigate the practices of kaizen.
3.7 Data Processing and Analysis
3.7.1 Data Processing
The method of data processing in the study will be manual and computerized system. In the
data processing procedure editing, coding, classification and tabulation of the collected data is
used. Data processing has two phases namely: data clean-up and data reduction. During data
clean-up the collected raw data is edited to detect anomalies, errors and omissions in
responses and checking that the questions are answered accurately and uniformly.
The process of assigning numerical or other symbols come next which will be used to reduce
responses into a limited number of categories or classes. After this, the process of classifying
or arranging large volume of raw data into classes or groups on the basis of common
characteristics is applied. Data having the common characteristics are placed together and in
this way the entered data has been divided into a number of groups.
3.7.2 Data Analysis
This will be further transformation of the processed data to look for patterns between and/or
among data groups. For analysis of the data, both quantitative and qualitative methods were
employed. The Statistical Package for Social Science (SPSS) version 21 has been used to
analyze quantitative data. Descriptive statistical analyses and simple correlation analysis were
applied to facilitate meaningful analysis and interpretation of the findings. Mean for
individual items and over all mean for each variable were calculated to analyze the current
level of kaizen practices. Moreover, the rest of the interview and observation data responses
were analyzed through descriptive narration method of analysis.
3.8 Ethical Considerations
All the respondents included in the study were appropriately informed about the purpose of
the research and their willingness and consent were secured before the commencement of
distributing questionnaire and asking interview questions. Regarding the right to privacy of
the respondents, the study maintains the confidentiality of the identity of each participant. In
all cases, names had been kept confidential thus, collective names like „respondents‟ was
used.
3.9 Validity and Reliability
3.9.1 Validity
Validity is defined as the accuracy and meaningfulness of the inferences which are based on
the research results. It is the degree to which results obtained from the analysis of the data
actually represents the phenomena under study. Validity is the degree to which a test
measures what it intends to measure (Creswell, 2009).
He contends that the validity of the questionnaire data depends on a crucial way the ability
and willingness of the respondents to provide the information requested. In this study validity
of the instrument was conducted by a wide review of the literature and pilot study has been
conducted to refine the instruments before administering the final phase. Besides,
questionnaires were designed on the basis of previous study questionnaires.
3.9.2 Reliability
The reliability of instruments measures the consistency of instruments. Creswell (2009)
considers the reliability of the instruments as the degree of consistency that the instruments or
procedure demonstrates. The reliability of a standardized test is usually expressed as a
correlation coefficient, which measures the strength of association between variables
According to Bryma & Bell (2003), the Cronbach‟s alpha result of 0.7 and above implies
acceptable level reliability. The scaled items in the questionnaire were found to be reliable
because the average value of cronbach‟s alpha 0.89 was higher than the criteria 0.7 as stated
in table 3.2.
Table 3.2 Reliability test
Variables
Cronbach’s alpha
Description
Training .96 Reliable
Five s (5s) .913 Reliable
Quality control circle (QCC) .648 Reliable
Suggestion System .956 Reliable
Waste Elimination .966 Reliable
Total quality control(TQC) .984 Reliable
Total productive
maintenance(TPM)
.792 Reliable
CHAPTER FOUR
4. DATA ANALYSIS, RESULTS AND DISCUSSION
4.1 Introduction
This chapter presents the analysis and interpretation of the data collected through
questionnaire, structured interview and personal observation on the practices of kaizen
philosophy in Dire Dawa National Cement Share Company. From 240 distributed
questionnaires, 236 were properly filled and returned by the respondents and were used for
this analysis. This represents a response rate of 98.33%. The quantitative data were analyzed
by using the statistical package for social science (SPSS) Version 21. In addition, information
obtained through interviews with three kaizen officers as well as personal observations are
presented through narrative description to complete the data obtained through questionnaires.
The chapter covers background of the respondents, level of kaizen implementation,
achievements and the challenges encountered in the implementation of kaizen philosophy.
Moving on to the description and analysis of data, it is important to have some background
information about Dire Dawa National Cement Share Company.
4.2 Background of the Respondents
Table 4.1 below shows that the response rate of the study was 98.33% where, 8.47% was
from management, 11.86% was from support service and 79.66% was from plant operation.
Thus, majority of the respondents who participated in this research were from plant operation.
Regarding the sex of respondents, 215 (91.1%) were males and 21(8.9%) were females. The
result shows majority of the respondents were males.
Table 4.1 General Profile of respondents
No
Item Respondents (N= 236)
Management Support Service Plant operation Total
F % F % F % F %
1
Sex
Male 19 95 16 57.14 180 95.74 215 91.1
Female 1 5 12 42.86 8 4.26 21 8.9
Total 20 100 28 100 188 100 236 100
2
Age
20 - 30 3 15 22 78.57 165 87.77 190 80.51
31 -40 11 55 4 14.29 23 12.23 38 16.1
41 -50 6 30 2 7.14 8 3.39
51 and
above
Total 20 100 28 100 188 100 236 100
3
Servic
e
Year
1 -5 6 30
20 71.43 153 81.38 179 75.85
6 -10 14 70 1 3.57 35 18.62 50 21.19
11 -15 6 21.43 6 2.54
16 &above 1 3.57 1 0.42
Total 20 100 28 100 188 100 236 100
4
Educa
tion
Level
Certificate
Diploma/
TVET
1 5 6 21.43 8 4.26 15 6.36
BSC/BA 18 90 22 78.57 180 95.74 220 93.22
MSC/MA 1 5 1 0.42
Based on the result of the questionnaire, the majority of the respondents fall in the age group
20-30 years (80.51%) followed by age group 31- 40 years (16.1%) and the least percentage
constituted the age group from 41-50 years (3.39%). The result indicates that most of the
respondents were in the young age category and dominated by active and productive age
group. Concerning service years of the respondents, majority of the respondents, 75.85% have
1-5 years of service while 21.19% of the respondents have served for 6 - 10 years and the
remaining 2.96% have served for more than 11 years. The result indicates that majority of the
respondents were the employees of the company prior to the implementation of Kaizen
philosophy (two years).
These employees were the most appropriate for responding the questionnaires due to the fact
that they have a clear image about Kaizen practices within the company. As far as educational
status is concerned, majority of the respondents, 220 (93.22%) were found to hold first degree
while15 (6.36%) of the respondents had diploma and 1 (0.42%) had second degree. The
findings of the study appear to be good on the part of the respondents in the study in terms of
their educational status.
4.3 Levels of kaizen Implementation
All the variables in the questionnaire of the study used a five-point Likert scale for scoring
responses (1 = strongly disagree; 2 = disagree; 3 = neutral; 4 = agree; 5 = strongly agree). For
easier interpretation of the results of the study, the scale is changed into interval class as
follows: (1) 1.00 to 1.80 = Very Low; (2) 1.81 to 2.60 = Low; (3) 2.61 to 3.40 = enough, (4)
3.41 to 4.20 = High; and (5) 4.21 to 5.00 = Very High (Bahri, S., Hamzah , D, & Yusuf ,R.,
2012 ; Munizu, M.,2013 ).
4.3.1 Five S (5S)
Table 4.2 Results for Mean Value & Std. deviation of five S (5S)
Other
Total 20 100 28 100 188 100 236 100
No Item Mean SD
As shown from table 4.2, the mean values range from 4.06 to 4.25. The first two S‟s: sorting
and set in order have very high level of implementation with mean values of 4.25 and 4.22.
Shine, standardize and sustain fall under high level with the point of 4.14, 4.11 and 4.06
respectively. Average mean value of the company shows 4.16 with high level execution. It
can be inferred from the data that the company‟s 5S implementation was high, but since
kaizen always assumes there is always better improvement, the company is expected to
sustain it and look for better improvements.
The interview result obtained from the company‟s kaizen officers was also in accordance with
the response of the respondents in that the company has achieved about 85% in its 5s
implementation. Moreover, the company‟s documents provided in terms of photographs and
the researcher‟s personal observation in the company confirmed that the company succeeded
in implementing 5s.
4.3.2 Quality control circle (QCC)
Table 4.3 Results for Mean Value & Std. deviation of quality control circle (QCC)
No Item Mean SD
1 Work groups meet as a team daily or at least monthly 4.27 .733
2 Every member of the work groups has clear roles 4.12 .832
3 Employees are multi-skilled & can cover a variety of job 3.89 .945
4 Teams are organized around processes or products 3.82 1.113
1 Sorting 4.25 .648
2 Set in order 4.22 .755
3 Shine 4.14 .669
4 Standardize 4.11 .714
5 Sustain 4.06 .697
Average mean 4.16
5 Work-groups have specific measurable team objectives 3.82 1.113
6 Increased employee participation 4.14 .669
7 Groups perform activities with regard to quality &
productivity 3.89
.945
8 Teams celebrate achievements & success 3.59 1.120
Average mean 3.94
Quality control circles deal with searching problems, analyzing various alternatives and
suggesting possible solutions with regard to quality, productivity and self-developments.
Table 4.3 indicates that Work groups meeting has the highest mean value of 4.27 followed by
increased employee participation with a mean of 4.14 whereas celebrating achievements &
successes has the least mean value of 3.59.
The remaining question items fall between these ranges. Work group meeting has very high
level of implementation and all the remaining questions indicated that quality control circle
has high level of implementation. The average means value of 3.94 shows that the
implementation of quality control circle was at high level in the company. The result implies
that quality control circle was well implemented in the company.
During the interview, the kaizen officers explained that there are eighty seven (87) quality
control circles in the company and each quality control circle has 5 to 13 members.
The quality circles have a weekly meeting on various agendas such as 5s improvement,
building industrial culture, cost reduction and the like that improves company‟s performance.
They further explained that every six months ten (10) quality control circles have been
awarded for their better achievements. They also said reward provision has increased
motivation and commitment of employees. In general, the interview result obtained from the
company‟s kaizen officers was in agreement with the response of the respondents.
4.3.3 Suggestion System
Table 4.4 Results for Mean Value & Std. deviation of Suggestion System
No
Item
Mean
SD
1 There is a smooth & convenient way to deliver ideas 3.99 .675
2 Forwarded ideas properly reviewed by committees 3.83 .852
3 Forwarded ideas successfully implemented 3.80 .794
4
Rewards & recognition given to idea generating employees
are satisfactory
3.55 1.081
Average mean 3.79
As indicated in table 4.4 smooth way of delivering ideas has a high mean value of 3.99.
Whereas, reward and recognition given to idea generating employee with a mean value of
3.55 being the least. Mean value of the remaining question items range between 3.55 and 3.99
points. The average mean value of the company was 3.79 point. The result implies that
suggestion system had high level of implementation in the company.
The information obtained from the interview shows that employees forward ideas through
kaizen board and reviewed through brainstorming among group members. Although
suggestion system had good implementation, due to the fact that continuous improvement
basis itself on employee suggestion, the company should further utilize the mental capability
and creativity of its employees so as to ensure continuous improvement.
4.3.4 Waste elimination
Table 4.5 Results for Mean Value & Std. deviation of waste elimination
No Item Mean SD
1 Defects & product quality problems reduced 3.81 .835
2 Inventory & work in process is the lowest 3.93 .763
3 Over production reduced 4.00 .769
4 Inappropriate processing removed 3.92 .762
5 Excessive transportation reduced 3.93 .825
6 Waiting without work removed 3.91 .825
7 Unnecessary motions are reduced 3.90 .940
Average mean 3.91
Table 4.5 Show that implementing kaizen has highly reduced over production, with a mean of
4.00. This is followed by inventory & work in process decrement and excessive transportation
reduction with an equal mean value of 3.93. Kaizen implementation has also reduced
inappropriate processing, waiting without work and unnecessary motions with mean values of
3.92, 3.91 and 3.90 respectively. From the above seven wastes the one that was less
influenced by implementing kaizen was defects & product quality problems with a mean of
3.81.The average mean value of 3.91 implies that by implementing kaizen, the company had
benefited most in its waste management.
4.3.5 Total quality control /TQC/
Table 4.6 Results for Mean Value & Std. deviation of Total quality control /TQC/
No Item Mean SD
1 All employees involve in total quality control 3.83 1.068
2 Various methods are used for quality control 3.79 1.018
3 Employees have sufficient skill for quality control 3.59 1.120
4 The company have sufficient quality control tools 3.82 1.113
Average mean 3.76
Table 4.6 shows that employee involvement in total quality control has a mean value of 3.83
followed by the availability of sufficient quality control tools, methods used for quality
control and employee skills for quality control with mean values of 3.82, 3.79 and 3.59
respectively. The average mean value of the company is 3.76 that indicate above average
implementation.
Moreover, the information obtained through the interview shows that the company controls
the quality of the cement at different stages of the production process beginning from the raw
materials to the finished product. Besides the researcher‟s personal observation confirmed that
the company had a separate quality control room supported by information systems to control
the quality of the cement.
The averages mean value of total quality control had lower mean value as compared to the
average mean values of the remaining kaizen tools considered in this study. The result implies
that TQC had relatively lower implementation. Thus, the company is expected to give due
attention to further improve its current total quality control implementation.
4.3.6 Total productive maintenance
Table 4.7 Responses on machine /equipment breakdown
Item
N = 236 Mean = 4.15
Response Strongly
disagree
Disagree Neutral Agre
e
Strongly
Agree
Machine/ equipment
breakdown decreased
Frequency 2 7 36 134 57
percentage 0.8 3.0 15.3 56.8 24.2
As it can be seen from table 4.7, respondents were asked to state their response about decrease
in machine/equipment breakdowns. Out of the total respondents 134 (56.8%) and 57(24.2%)
of the respondents responded strongly agree and agree. Whereas 36(15.3%), 7(3%) and
2(0.8%) of the respondents responded neutral, disagree and strongly disagree respectively.
Summing up the two good impressions 81% of the respondents have good impression on the
stated issue. Besides, mean value of 4.15 shows that the company has highly decreased its
machine/equipment breakdowns.
Moreover, the interview result is in accordance with the response of the respondents in that by
implementing kaizen the company has changed its maintenance focus from corrective to
preventive maintenance and by doing so, it has achieved about 90% in decreasing Machine/
equipment breakdowns. The result implies that the company‟s total productive maintenance
has high level of implementation.
4.3.7 Extent of kaizen tools implementation
Table 4.8 Results for Mean Value & Std. deviation of Kaizen tools
Kaizen tools (variables) Mean
Score range Description
Five s (5s) 4.16 4.06 - 4.25 High
Quality control circle (QCC) 3.94 3.59 - 4.27 High
Suggestion System 3.79 3.55 - 3.99 High
Waste Elimination 3.91 3.81 – 4.00 High
Total quality control(TQC) 3.76 3.59 – 3.83 High
Total productive maintenance(TPM) 4.15 4 .00 - 4.30 High
As shown in able 4.8 mean values of the variables range from 3.76 to 4.16. 5S has the highest
level of implementation with a mean of 4.16 followed by total productive maintenance (TPM)
,quality control circle (QCC) and waste elimination with mean values of 4.15, 3.94, 3.91 and
3.79 respectively. The kaizen tool that has relatively lower level of implementation was total
quality control (TQC) with mean values of and 3.76. The result indicated that all variables
have high level of implementation. However, the implementation had variation from variable
to variable. The results are in agreement with the results reported by (Nderi, 2012).
4.3.8 Training provision
Table 4.9 Results for Mean Value & Std. deviation of training
No Item Mean SD
1 Training has been given about kaizen before kaizen implementation 4.40 .723
2 The company consistently gives training 4.20 .861
3 The company provides necessary materials for training 4.19 .665
4 Training is given by appropriate professionals having sufficient skills 4.35 .731
5 Employees are cross- trained across departmental boundaries 3.75 .856
6 Skills and training records are maintained for every one 3.91 .706
7 Employees become eager in learning new skills 4.01 .817
Average mean 4.12
As it can be seen from table 4.9 training provision before kaizen implementation has the highest
mean value of 4.40 followed providing training by appropriate professionals having sufficient
skills (4.35), consistent training provision (4.20), providing necessary materials for training
(4.19), employees become eager in learning new skills (4.01), maintaining training records
(3.91). Cross - training across departmental boundaries has relatively lower implementation with
a mean value of 3.75. The average mean value of 4.12 shows training has high level of
implementation in the company.
The interview result obtained from the company shows that the company has given continuous
training on kaizen for new recruits as well as for the existing employees. Moreover the
respondents acknowledged that the company has given sufficient and consistent training about
Kaizen by appropriate professionals. The result implies that training has contributed in changing
attitude of the employees in the company.
4.4 Achievements gained by implementing kaizen
Table 4.10 Mean & Std. deviation of achievements by kaizen
Variables Mean
Score range Description
Quality 3.85 3.83 – 3.89 High
Productivity 3.94 3.86 - 4.03 High
Lead time 3.92 3.86 – 3.96 High
Safety 3.99 3.82 – 4.34 High
Employee motivation 3.93 3.87 – 3.99 High
Cost 4.03 4.03 High
Results from descriptive statistics in Table 4.10 shows that by implementing kaizen, the
company had reduced its cost of production with a mean of 4.03. This is followed closely by
improvement on the safety of employees with a mean value of 3.99, productivity was third
with a mean value of 3.9. Kaizen implementation has also resulted in employee motivation
and reduced lead time with mean values of 3.93 and less achievement obtained by
implementing kaizen was quality with a mean of 3.85. The result implies that by
implementing kaizen, Dire Dawa National cement Share Company has improved the quality a
product, increased productivity, reduced cost, increased employee motivation and improved
safety. Moreover, during the interview the company‟s kaizen officers explained that change
in attitude of the employees was considered as a great achievement of implementing kaizen
the company. They further explained that the company has started providing result based
evaluation and rewarding system and this has led to increased employee participation and
decreased absenteeism. For instance the company‟s human resource department report in July
2016 shows out of 235 working days, 33 employees were absent. The report further shows in
July 2017 out of 240 working days 11 employees were absent. The above report reveals that
even though the working days have increased from 235 to 240 days, the number of absentees
has decreased from 33 to 11 employees.
The information obtained from interview also shows that because of kaizen implementation,
the company had reduced its cost by eight million five hundred twenty birr (8,000,520) and
production capacity has increased from 3000 tons per day to 3200 tons per day in the year
2017.
4.4.1 Correlation between kaizen tools and achievements
Table 4.11 Correlation of Kaizen tools with achievements of kaizen implementation
Variables Quality Productivity Cost Lead time Safety Employee
Motivation
5S
PC .721**
.682**
.679**
.671**
.538**
.556**
Sig. .000 .000 .000 .000 .000 .000
N 236 236 236 236 236 236
QCC
PC .497**
.462**
.499**
.405**
.557**
.698**
Sig. .000 .000 .000 .000 .000 .000
N 236 236 236 236 236 236
SS
PC .618**
.615**
.633**
.647**
.647**
.807**
Sig. .000 .000 .000 .000 .000 .000
N 236 236 236 236 236 236
WE
PC .697**
.717**
.708**
.643**
.658**
.824**
Sig. .000 .000 .000 .000 .000 .000
N 236 236 236 236 236 236
TQC
PC .916**
.926**
.918**
.899**
.745**
.873**
Sig. .000 .000 .000 .000 .000 .000
N 236 236 236 236 236 236
TPM
PC .697**
.717**
.708**
.643**
.658**
.824**
Sig. .000 .000 .000 .000 .000 .000
N 236 236 236 236 236 236
As it is clearly indicated in table 4.11 above, there was a positive relationship and significant
association between kaizen achievements and kaizen tools. To begin with quality, it has a
strong positive relationship with total quality control (r = .916) followed by 5S (r =.721), total
productive maintenance and waste elimination (r =.697), and Suggestion System(r =.618).
Regarding the relationship with productivity, total quality control has the highest correlation
coefficient (r =.926), followed by total productive maintenance and waste elimination (r
=.717), 5S (r =.682) and Suggestion System(r =.615) respectively. The result also indicated
that there is a strong positive correlation between kaizen tools and cost.
Total quality control has the highest correlation coefficient of (r =.918), followed by total
productive maintenance and waste elimination (r =.708), 5S ( r=. 679) and suggestion system
(r = .633). As far as lead time is concerned total quality control has the highest correlation
coefficient of (r = .899) followed by 5S (r =.671), Suggestion System(r =.647) and total
productive maintenance and waste elimination (r =.643). Moreover ,safety has a strong
positive relationship with the six kaizen tools , total quality control being the highest with
correlation coefficient of (r = .745) followed by total productive maintenance and waste
elimination (r =.658) ,Suggestion System(r =.647), quality control circle (r= 557) and 5S (r
=.538). The result on the above table further indicates that, there is a strong positive
correlation between the six kaizen tools and employee motivation total quality control being
the highest with correlation coefficient of (r = .873) followed by total productive
maintenance and waste elimination (r =.824) ,Suggestion System(r =.807), quality control
circle (r= 698) and 5S (r =.556). The above results imply that total quality control has the
highest correlation with kaizen achievements.(i.e productivity, cost, quality, lead time, safety
and employee motivation). The above table also indicated that, there was weak positive but
statistically significant relationship between quality control circle and four (4) achievements:
i.e quality, productivity, cost and lead time with a correlation coefficients of (r =.497), (r
=.462) ,( r =.499),and (r = .405) respectively.
The overall result indicated that the kaizen tools had a significant role for improving
achievements in the company. Thus, the more kaizen tools are properly implemented, the
better the kaizen achievements would be. These results are in agreement with the results
reported by (Alebel, 2016).
4.4.2 Correlation analysis between training and kaizen achievements
Table 4.12 Correlation of Training with kaizen achievements
The correlation result in table 4.12 indicates that training has strong positive relationship with
kaizen achievements and the level of significance is less than 5% (P< 0.05) indicating that there
is statistically significant association between training and kaizen achievements. The
correlation coefficients between training and kaizen achievements were range from (.641) to
(.822). Based on the correlation result, training had the highest correlation with safety (.822),
followed by employee motivation (.762) ,Cost (.719), Productivity and lead time (0 .678) and
quality (0.641). The result implies that training provision has contributed for kaizen
achievements of the company. These results are in agreement with the results reported by
(Alebel, 2016).
Variables
Quality
Productivity Cost Lead
Time
Safety
Employee
Motivation
Training
PC
.641**
.678**
.719**
.678**
.822**
.762**
Sig. .000 .000 .000 .000 .000 .000
N 236 236 236 236 236 236
4.4.3 Correlation Analysis between Variables
Table 4.13 Results of Correlation Analysis between Variables
Training 5S QCC Suggestion
System
Waste
Eliminat
ion
TQC TPM
Training
PC 1 .389 .681 .717 .709 .659 .709
Sig. .000 .000 .000 .000 .000 .000
N 236 236 236 236 236 236
5S
PC 1 .455 .465 .604 .704 .604
Sig. .000 .000 .000 .000 .000
N 236 236 236 236 236
The correlation results in table 4.13 reveal that all the variables have positive and significant
relationship among themselves. The correlation coefficients between the variables were range
from .389 to 1.
Based on the correlation coefficient, waste elimination has a perfect positive relationship/the
highest correlation with total productive maintenance (r= 1) .The result shows that waste
elimination focused company is also to be focused on total productive maintenance which is,
in turn, highly correlated/related with quality control circle (r= .859). On the other hand, the
lowest correlation/ weak positive relationship has indicted between 5s and training (r=.389).
The correlation analysis further indicates that training has high correlation/ strong positive
relationship with suggestion system (.717), followed by waste elimination and TPM (.709),
QCC (.681) and TQC (659). Moreover 5S has high correlation/ strong positive relationship
with TQC (.704) followed by waste elimination and TPM (.604). On the other hand 5S has
low correlation / weak positive relationship with suggestion system (.465) and QCC (.455).
The correlation result also shows QCC has a strong positive relationship with TPM and waste
QCC
PC 1 .843 .859 .494 .859
Sig. .000 .000 .000 .000
N 236 236 236 236
Suggestion
System
PC 1 .828 .641 .828
Sig. .000 .000 .000
N 236 236 236
Waste
Elimination
PC 1 .737 1.000
Sig. .000 .000
N 236 236
TQC
PC 1 .737
Sig. .000
N 236
TPM
PC 1
Sig.
N
elimination (.859) followed by suggestion system (.843) But, it has a weak positive
relationship with TQC (.494).As far as Suggestion system was concerned, it has a strong
positive relationship with waste elimination and TPM ( .828) followed by TQC (.641). TQC
has a strong positive relationship with waste elimination and TPM (.737). The overall
correlation result indicated that there is a positive relationship and significant association
among variables.
4.5 Challenges of kaizen implementation
4.14 Challenges of Kaizen implementation
Variables Mean SD
Kaizen is seen as short term project
2.42 1.311
Insufficient participation by workers
2.04 1.127
Lack of management support or leadership
2.39 1.360
Insufficient Training
2.04 1.251
Lack of commitment
2.47 1.246
Ineffective communication system
2.11 1.160
Absence of true desire to improve
2.09 1.222
Resistance to change
2.25 1.245
Average mean 2.23
The result in table 4.13 above indicates that all the variables have low level of influence on
kaizen implementation. These are lack of commitment with a mean of 2.47 followed by
considering Kaizen as short term project (2.42), lack of management support or leadership
(2.39), resistance to change(2.25), ineffective communication system (2.11), absence of true
desire to improve(2.09), insufficient training and insufficient participation by workers with
same mean value of (2.04).The average mean value of 2.23 indicates that the above variables
have low level of influence on kaizen implementation in the company. The interview
conducted with the kaizen officers indicated that most of the challenges to the implementation
of kaizen in the company came from the management. The result implies that successful
implementation of kaizen in the company is dependent on employee commitment and
considering kaizen as a continuous and long term improvement process. Furthermore
continuous awareness creation and effective leadership & communication were mandatory for
kaizen implementation.
CHAPTER FIVE
5. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
In this chapter a summary of major findings, conclusions and recommendations are covered
based on the objectives of the study.
5.1 Summary
The purpose of this study is to investigate the practices of kaizen philosophy in Dire Dawa
National cement Share Company. Using data collected from the company through
questionnaire, structured interviews and personal observation, the study investigated the level
of kaizen implementation in the company. The study further examined the achievements as
well as the challenges in kaizen implementation. Sampling was carried out through stratified
and purposive sampling techniques. Descriptive statistical analysis was used to evaluate the
level of kaizen implementation, its achievements and the challenges encountered during
implementation. Moreover correlation analysis was used to evaluate the relationship between
kaizen tools and kaizen achievements as well as training and achievements.
In order to achieve the above objectives, the following basic questions were raised:
To what extent kaizen philosophy is implemented within Dire Dawa National Cement Share
Company?
Regarding five s the first two S‟s: sorting and set in order have very high level of
implementation with mean values of 4.25 and 4.22. Shine, standardize and sustain fall under
high level with mean values of 4.14, 4.11 and 4.06 respectively. Average mean value of the
company shows 4.16 with high level execution.
The study indicated that Work groups meeting has the highest mean value of 4.27 followed by
increased employee participation 4.14 whereas celebrating achievements & successes has the
least mean value of 3.59 and the remaining question items fall between these ranges. Thus,
work group meeting has very high level of implementation and all the remaining questions
fall under high level of implementation.
It has been found that suggestion system had average mean value of 3.79 point indicating high
level of implementation.
As far as waste elimination is concerned, average mean value of 3.91 shows that by
implementing kaizen, the company had benefited most in its waste management.
The averages mean value of total quality control had lower mean value (3.76) as compared to
the average mean values of the remaining kaizen tools considered in this study. The result
reveals that TQC had relatively lower implementation.
The finding showed that 81% of the respondents have good impression on total productive
maintenance. Besides, mean value of 4.15 shows that the company has highly decreased its
machine/equipment breakdowns.
Descriptive statistics showed that, 5S is implemented to the greatest extent with a mean value
of (4.16), followed by total productive maintenance (4.15), Quality control circle (3.94),
Waste Elimination (3.91), Suggestion System (3.79) and Total quality control (3.76). The
results are in agreement with the results reported by (Nderi, 2012).
Based on the correlation analysis result kaizen tools were positively and significantly
correlated with kaizen achievements. Total quality control has the highest correlation with
kaizen achievements.(i.e. productivity(.916), cost(.926), quality(.918), lead
time(.899),safety(.745) and employee motivation(.873). These results are in agreement with
the results reported by (Alebel, 2016). On the other hand there was a weak positive but
statistically significant relationship between quality control circle and kaizen achievements
with a correlation coefficients of cost (r =.499), quality ( r = .497), productivity (r =.462) and
lead time, (r = .405) respectively.
To what level kaizen training is provided in Dire Dawa National Cement Share Company?
Training has average mean value of 4.12 that indicates high level of implementation in the
company. Besides based on the correlation result, training had the highest correlation with
safety (.822), followed by employee motivation (.762), Cost (.719), productivity & lead time
(0 .678) and quality (0.641). Furthermore it has been found that training and kaizen tools
have positive and significant relationship among themselves.
What are the major achievements gained during Kaizen implementation?
Results from descriptive statistics showed that by implementing kaizen, the company had
reduced its cost of production with a mean of 4.03. This is followed closely by improvement
on the safety of employees (3.99), productivity (3.94), employee motivation and reduced lead
time (3.93) and quality (3.85).
The study also found out that there was a positive relationship and significant association
between kaizen achievements and kaizen tools.
Training has strong positive relationship with kaizen achievements and the level of
significance is less than 5% (P< 0.05) indicating that there is statistically significant
association between training and kaizen achievements.
What are the major challenges encountered during Kaizen implementation?
Descriptive statistics showed that lack of commitment has relatively high level of influence
with a mean value of 2.47, followed by considering kaizen as short term project (2.42), lack
of management support or leadership (2.39), resistance to change (2.25), ineffective
communication system (2.11), absence of true desire to improve (2.09), and insufficient
training and insufficient participation by workers(2.04). The average mean value is 2.23
which indicate that all the above variables have low level of influence on kaizen
implementation in the company.
5.2. Conclusions
The objective of this study is to investigate the practices of Kaizen philosophy, in Dire Dawa
National Cement Share Company. Hence, based on the findings encouraging efforts were
evidenced from the implementation of Kaizen in company. Despite the encouraging efforts,
some challenges were also evidenced from the study.
Concerning 5s the first two S‟s: sorting and set in order have very high level of
implementation. Whereas Shine, standardize and sustain fall under high level with
implementation. Average mean value of the company shows 5S has high level of
implementation.
The result showed that the average mean value of quality control circle was at high level
implying that quality control circle was well implemented in the company and QCC are
more or less achieving the main objectives for which they are established.
Regarding to suggestion system, the result showed that there is smooth and convenient
way to deliver ideas to concerned section and employees forward ideas through kaizen
board and reviewed through brainstorming among group members and forwarded ideas
properly reviewed by committees.
As far as waste elimination is concerned, the result showed that by implementing kaizen,
the company had benefited most in its waste management.
The averages mean value of total quality control had lower mean value as compared to
the average mean values of the remaining kaizen tools considered in this study. The result
implied that TQC had relatively lower implementation.
The findings showed that the company has focused on preventive maintenance and has
achieved about 90% in decreasing machine/ equipment breakdowns. The result implies
that the company‟s total productive maintenance has high level of implementation.
The findings further showed that 5S has high level of implementation followed by TPM,
QCC and waste elimination. Suggestion system and TQC have relatively lower level of
implementation. Overall most of the kaizen tools were well implemented in the company
The findings showed that there is a strong positive correlation between training and
kaizen achievements.
It revealed the company has given sufficient and consistent training about kaizen to new
recruits as well as for the existing employees by appropriate professionals and employees
are eager in learning new skills. The result imply that training provision has contributed
for kaizen achievements of the company
The correlation results showed that training and kaizen tools have positive and
significant relationship among themselves.
Reduction of cost, improvement in safety, improvement in overall productivity, increased
employee motivation and reduction in lead time where achievements of kaizen. Product
quality had relatively lower improvements as compared to the remaining achievements.
The findings show that the challenge that hindered kaizen implementation most were lack
of commitment, considering kaizen as short term project, lack of management support or
leadership, resistance to change, ineffective communication system, absence of true
desire to improve, whereas those that posed least challenge were insufficient training and
insufficient participation by workers.
5.3. Recommendations
Based on the major findings and conclusions reached, researcher has forwarded the following
suggestions to improve the implementation of kaizen in Dire Dawa National Cement Share
Company.
The company should sustain improvements achieved so far in the areas of 5s
implementation, total productive maintenance, cost reduction, safety, productivity,
employee motivation and participation.
Suggestion system is one of the main tools of kaizen. The system helps both management
and workers to communicate through two way communications and has also motivational
values for employees. Beside this, the system serves as an information channel for the
continuous improvement process. Hence, missing this process will have serious impacts
on the implementation process as well as sustainability. Therefore, the company should
give further attention and consideration for the suggestion system as well as the way
workers opinions and suggestions are managed.
The QCC activities improve communications, teamwork to solve problems and sharing
their findings among themselves and with other team members in the company. Thus, the
company should further strengthen the activities of its QCC‟s by practicing different
types of reward and recognition strategies.
The findings show that total quality control has the highest correlation with
achievements. On the other hand, total quality control has lower level of implementation
compared to other kaizen tools, which has lead to lower improvements in product quality.
Therefore, the company should improve the level of TQC implementation so as to
improve achievements.
The company should sustain its continuous training provision in order to strengthen
achievements since there is a strong positive relationship between training and kaizen
achievements.
The company should strongly work on challenges associated with lack of commitment,
considering kaizen as short term project, lack of management support, ineffective
communication system and resistance to change through continuous awareness creation
since kaizen involves continuous improvement and never being satisfied with the status
quo.
In general, the study has provided insights into the practices of kaizen in Dire Dawa
national cement share company and provided evidenced that kaizen implementation is
significant in enhancing achievements. Therefore, the company should sustain its
current achievements and effectively address the challenges identified in order to benefit
from kaizen philosophy.
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Appendix (A)
DEBRE BERHAN UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
MASTER OF BUSINESS ADMINISTRATION
Questionnaire to be filled by Management, plant operation and Support service staffs of
Dire Dawa National Cement Share Company.
Dear respondent,
I am a graduate student of Debre Berhan University. Currently, I am undertaking a research
entitled „„The practices of kaizen philosophy: The case of Dire Dawa National Cement Share
Company‟‟. The research is carried out in order to fulfill the requirement of Graduate Studies of
Debre Birhan University for Masters Degree in business administration. You have been selected
as a respondent to this questionnaire and I believe that the information you provide will be very
useful in enabling me realize the objectives of my study. To this effect your genuine response is
very essential. I confirm you that the information you provide will be kept confidential and used
only for academic purpose.
Thank you in advance for your kind cooperation
Sincerely,
Assegid Alemu
Please Note that:
No need of writing your name.
For all items indicate your answers with a tick mark “√” in the space
provided.
Please state your level of opinion for each likert scale type statement using
the following scales:
1= strongly disagree 2=disagree 3= Neutral 4= Agree 5=strongly agree
Part one: Demographic information
1. Sex: Male Female
2. Age: 20-30 31-40 41-50 51& above
3. Qualification (Education level): Certificate (Grade 10 or 12) Diploma /TVET
BA/BSC MA/MSC Other
4. Service years: 1-5 years 6-10 years 11-15 years 16 and above
Part II: Level of Implementation
1. Training
No Criteria 1 2 3 4 5
1 Training has been given about Kaizen before Kaizen implementation
2 The company consistently gives training
3 The company provides the necessary material for training
4 Training is given by appropriate professionals having sufficient skills.
5 Employees are cross-trained across departmental boundaries.
6 Skills and training record are maintained for everyone.
7 Employees became eager in learning new skills.
2. Kaizen Tools
1 Five S (5S) 1 2 3 4 5
1.1 Sorting: The factory properly differentiate between necessary and
unnecessary items
1.2 Set in order: all items that are needed to do a job are placed (stored)
in an orderly manner.
1.3 Shine: All products, equipment, tools and work environment properly
cleaned
1.4 Standardize: The above three S‟S (Sorting, Set in order & Shine) are
continuously practiced.
1.5 Sustain: Company efforts for sustaining 5S within the factory
2 Quality control Circle(QCC) /Team work 1 2 3 4 5
2.1 Work-groups meet as a team daily or at least monthly.
2.2 Every member of the work-groups has clear roles.
2.3 Employees are multi-skilled and can cover a variety of job
2.4 Teams are organized around processes or products
2.5 Work-groups have specific measurable team objectives.
2.6 Increased employee participation
2.7 Group perform activities with regard to quality & productivity
2.8 Teams celebrate achievements and expected success
3 Suggestion system 1 2 3 4 5
3.1 There is smooth and convenient way to deliver ideas to concerned
section
3.2 Forwarded ideas properly reviewed by committees
3.3 Forwarded ideas successfully implemented
3.4 Rewards and recognitions given to idea generator employees are
satisfactory.
4 Waste elimination 1 2 3 4 5
4.1 Defects/Frequent errors and product quality problems/ reduced
4.2 Inventory and work in progress for almost everything is the lowest in
the company.
4.3 Over production reduced
4.4 Inappropriate processing removed
4.5 Excessive transportation reduced
4.6 Waiting without work removed
4.7 Unnecessary motions are reduced
5 Total quality control (TQC) 1 2 3 4 5
5.1 All employees involve in total quality control
5.2 Various methods used for quality control: such as statistical quality
control and others
5.3 Employees have sufficient skill for quality control
5.4 The company have sufficient quality control tools
6 Total Productive Maintenance(TPM) 1 2 3 4 5
6.1 Equipment breakdowns are virtually eliminated.
6.2 Machine breakdowns decreased
Part III: Result/outputs achieved by implementing Kaizen
No Criteria
1 Quality 1 2 3 4 5
1.1 The company has made the key mind-shift from quality defect
detection to active prevention.
1.2 The defect rate has been reduced.
1.3 Employees are now responsible for inspecting their own work and
know exactly the standards they have to meet.
1.4 Product produced as per pre-established standards
1.5 Customer complaints reduced
2 Productivity 1 2 3 4 5
2.1 Efficient utilization of resources: it is possible to manufacture by
using less inputs than before.
2.2 Economies of scale improved: which is producing more in order
to decrease cost of production.
2.3 In the company there is change in new technology.
2.4 Change in technical efficiency: there is improvement in utilization
of company equipment, tools etc
3 Costs 1 2 3 4 5
3.1 Production cost has decreased because of kaizen implementation.
4 Lead time 1 2 3 4 5
4.1 Idle time has decreased
4.2 Production capacity increased
4.3 Reduction in manufacturing lead time
5 Safety 1 2 3 4 5
5.1 Number of accidents and injuries decreased.
5.2 Safety protection materials are strictly used.
5.4 Health and occupational safety of workers improved.
6 Employee motivation 1 2 3 4 5
6.1 Absenteeism decreased.
6.2 Improvement ideas increased.
6.3 Employee complaint decreased.
6.4 Promotions and career development system introduced.
6.5 Policies of compensation and benefits implemented.
Part IV Challenges of Implementing Kaizen Philosophy.
No Criteria 1 2 3 4 5
1 Kaizen is seen as a short term project
2 Insufficient participation by workers
3 Lack of management support or leadership
4 Insufficient training
5 Lack of commitment
6 Ineffective communication system
7 Absence of true desire to improve
8 Resistance to change
Appendix (B)
INTERVIEW QUESTIONS
Interview guidelines for kaizen officers (steering committee) on the practices of kaizen
philosophy in Dire Dawa national cement share company.
First I thank you for your willingness to participate in the study. The purpose of my research is to
investigate the current practices of kaizen philosophy in your company. The research is part of a
requirement for completing my Master‟s of business administration. In this study, I want to
explore your experience with regard to kaizen practices in your company. The information you
share me in the interview will have a practical significance of improving kaizen practices of the
company and I believe that your contribution is of great value. Your personal identity will be
kept confidential in the research report. Thank you again.
1. How do you provide training on kaizen philosophy in your company?
2. How do you describe the practices of kaizen philosophy in your company in terms of
kaizen tools?
3. What are the achievements and challenges of implementing kaizen philosophy in your
company?
Appendix (C)
OBSERVATION CHECKLIST
No
Item Availability
0 1 2 3 4
1 Clutter free and tidy environment in premises, inside Offices, Work
Place, etc. Evidence of removal of unwanted items should be evident all
around.
2 Tops and insides of all shelves, tables, drawers, etc. free of unwanted
Items
3 Ability to find whatever is required with the least possible delay
4 Unused equipment and machinery eliminated from the plant
5 Unnecessary inventory and raw materials eliminated from the plant
6 The plant is free from trash and dirt
7 All machinery, storage equipment and columns identified and numbered
8 All equipments, tools and work environment properly cleaned
9 Everything wearing proper safety gear
10 All raw materials and work in progress properly stored
11 Up to date work instruction, including quality checks, available and in
use at all work stations
12 All machines, tools and equipments are clean and in good
repair(functional)
The rating scale: 4=excessively available, 3=sufficiently available
2=moderately available, 1=Available, 0=Unavailable
Appendix (D)
Kaizen Photos
National Cement Share Company
Before Kaizen
After Kaizen
Before Kaizen
After Kaizen