Achievements in the Quality andProductivity Improvement (KAIZEN)
Project

Go Shimada,Director, Private Sector Development Division,
Industrial Development and Public Policy
Department, JICA1

Profile of the Project

Project Title: The Study of Quality and Productivity Improvement(KAIZEN) in Ethiopia
Project Duration: October 2009 to May 2011
Project Holder: JICA & Ministry of Industry
Study area: Addis Ababa and its surroundings
Sector Focused: Manufacturing
Objectives
1) Pilot Project Performance: To formulate a manual to be used forconducting KAIZEN activities in Ethiopia, which is prepared basedon results from verification study through the implementation ofpilot activities for selected 30 (thirty) companies;2) Human Resources Development: To transfer relevant skills andtechniques to the staff members of KAIZEN Unit of MoI; and,
3) National Plan Formulation: To make a plan to disseminate
KAIZEN activities for manufacturing companies in Ethiopia.

Sample Improvement Results (1)Qualitative Results:
Clean working environment created,
Team work and motivation of workers developed,
Health and occupational safety of workers improved,
Lowerlevelworkers

accustomedtosuggesting

improvement ideas to management decisions – Increased
Employee Participation,
Knowledge obtained on how to meetto reduce costs.

quick delivery andSample Improvement Results (2)Quantitative Results
Monetary impact from the improvements reported is ETB
500,000/company. The reporting ranges from ETB 10,000 to ETB
3.2 mill.
 By Reducing costs (a) ETB 10,000 per month and (b) ETB 78,000 per annum; By generating additional income of ETB 1.2 million per year; By just decreasing down time ETB 204, 000 per day, By rectifying raw materials defect used for manufacturing ETB
2.4mill; By identifying, repairing and reusing of usable machines &equipments worth of ETB 3.25 mill.
 Non-Monetary Measures of Improvement include: Increasing labor productivity, by reducing time loss forsearching tools on average 50%;
 Reduction of floor space around 50%;
 Defect ratio improvement in the range of 50-70%;
 Lead time improved in the range of 16 to 90%;
 Labor saved from 15 to 90%.

Sample Improvement Results (3)Quantitative Results
Techtra Engineering
Recovered additional revenue with an amount of 118,995birr
Maru Metal Industry
Lead time reduced from 2weeks to 1week
Ethio Japanese Synthtic Textile S.C.
Reduced wastage of time by 624 min/monthMatador Addis Tyre
Reduced wasters of over production by 50%
Motion and movement by 100%
Universal Food Comples
Decreased flour wastage by 190 qtl of wheat flour
Addis Modjo Edible Oil Complex
Produced additional 12,000 lit/day
By eliminating 6hours dawn time/day
Sebeta Agro-Industry
By decreasing milk wastage recovered 846 birr/day5Pictorial Presentation of some of the achievements
obtained in the pilot companiesFig.1 Sort, Set-in-order & Shine (3S) are implemented to standardize theinventory stock

Fig. 2 In-process stock is repositioned to avoid Muda of transportation

Before Kaizen

After Kaizen

Highlighted results of the Pilot Project (1)Possibility*

high good some low

noGrade

54

3

2

1

number of thecompanies

64

8

6

4

total

28

* Possibility to be a “KAIZEN model company”•10companies which are graded 5 and 4 are a candidateof the excellent companies.
•Exceeds one third of the companies has a possibility ofthe KAIZEN model companies.
7Highlighted results of the Pilot Project (2)KAIZEN Model Company (Graded 5)means a company which continuously practices KAIZEN andas the result realizes achievements that significantly excel othercompanies in terms of quality /productivity improvement.
Adama SpinningEast Africa GroupKadisco Chemical
Maru Metal Industry
Universal Food Comples
ZenithKey Criteria for the Model Company
Model workplace activities: 5S, Standard operation sheets,
Layout study
General activities: Employee training of basic KAIZEN
knowledge, Workload reduced
Organization management: QCC activities, Wide disseminationof KAIZEN
Management direction: Active top management, Good
employee relations, Development of KAIZEN activities
8Assessment of Capacity Development of KU members
Level0IIIIII

IVVCompetence
no experience ofKAIZEN
Competent to conduct
KAIZEN activities foryourself
Competent to guide
KAIZEN activities
Competent to provide
consultancy services on
KAIZEN
Competent to provide
consultancy services on
KAIZEN
Competent to provide
consultancy services on
KAIZEN

Assignment

Beforeproject

Afterproject

8Junior KAIZEN
Consultant
Assistant KAIZEN
Consultant
KAIZEN Consultant

26

Senior KAIZEN
Consultant
Lead KAIZEN
Consultant

9