Achievements in the Quality andProductivity Improvement(KAIZEN) Project

Go Shimada,Director, Research Program Division,
JICA Research InstituteWhat is KAIZEN?
 Simply a word which means “improvement”

in Japanese Incremental and continuous improvementwith the involvement of entire workforce
 Quality and Productivity Improvement
 Without additional cost: “If no money, use
your brain.” Participatory process and bottom-up fromfactory floors (gemba)
 Emphasis on process as well as results Reflecting a Japanese philosophy (continuousimprovement through all aspects of life)
Source: Masaaki Imai, “Kaizen: The Key to Japan’s Competitive Success”, McGraw-Hill/Irwin, 1986.

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Profile of the Project Project Title: The Study of Quality and Productivity Improvement(KAIZEN) in Ethiopia
 Project Duration: October 2009 to June 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 usedfor conducting KAIZEN activities in Ethiopia, which is preparedbased on results from verification study through theimplementation of pilot activities for selected 30 (thirty)
companies;2) Human Resources Development: To transfer relevant skills
and techniques 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,
 Lower level workers accustomed to suggesting improvement
ideas to management decisions – Increased Employee
Participation,
 Knowledge obtained on how to meet quick delivery and toreduce costs.

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 for searching tools onaverage 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%;
Note: USD1 = approximately
 Labor saved from 15 to 90%.
ETB 17.1 as of Aug. 2011

Sample Improvement Results (3)Quantitative ResultsCompany A (Metal)
Recovered additional revenue with an amount of 118,995 birr
Company B (Metal)
Lead time reduced from 2weeks to 1week
Company C (Textile)
Reduced wastage of time by 624 min/monthCompany D (Chemical)
Reduced wasters of over production by 50%
Motion and movement by 100%
Company E (Agro)
Decreased flour wastage by 190 qtl of wheat flour
Company F (Agro)
Produced additional 12,000 lit/day
By eliminating 6hours dawn time/dayCompany G (Agro)By decreasing milk wastage recovered 846 birr/day

Pictorial Presentation of some of theachievements obtained in the pilot companies
Fig.1 Sort, Set-in-order & Shine (3S) are implemented to standardize
the inventory stock

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

Before Kaizen

After Kaizen

Highlighted results of the Pilot Project (1)Possibility*highgood somelownoGrade

543

2

1

number of thecompanies

64

8

64

total

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* Possibility to be a “KAIZEN model company”• 10 companies which are graded 5 and 4 are a candidate of
the excellent companies.
• Exceeds one third of the companies has a possibility of theKAIZEN model companies.

Highlighted results of the Pilot Project (2)KAIZEN Model Company (Graded 5)means a company which continuously practices KAIZEN and as the result
realizes achievements that significantly excel other companies in terms ofquality /productivity improvement (6 companies).
Key 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, Widedissemination of KAIZEN・Management direction: Active top management, Good
employee relations, Development of KAIZEN activities

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

9Junior KAIZEN
Consultant
Assistant KAIZEN
Consultant
KAIZEN Consultant

Senior KAIZENConsultant
Lead KAIZEN
Consultant

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Institutionalization of KAIZEN dissemination
system and JICA’s continuous assistance
1. Established first Kaizen-titled body (KAIZENUnit) and first Kaizen-titled organisation(Ethiopian KAIZEN Institute) in Sub-SaharanAfrica under Ministry of Industry
2. Phase 1 ended with tangible results in June
2011 and Phase 2 will start in November
2011 for 3 years

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JICA KAIZEN assistance spread in Africa
Tunisia

LEGEND
Project implemented/ing
Project officially requested
MPC course participated*(only for Sub-Saharan)

Egypt

Ghana

Ethiopia
UgandaRwandaKenya

Tanzania
ZambiaBotswanaSouthAfrica

Mozambique*Malaysian Productivity
Center (MPC) haveconducted “JICA Third
Country Training
Programmefor African Countries
on Enhancement ofProductivity andCompetitivenessfor Trade Promotion
through TQM and KAIZENApproach”.

Thank you very much.