KAIZEN in Africa: towards
Industrial Development
JICA-ACET Information Seminar
Toru Homma
Senior Advisor on Private Sector Development
Japan International Cooperation Agency (JICA)
Homma.Toru@jica.go.jp

Accra, Ghana, 7 August 20121

Outline
1. KAIZEN and JICA’s Cooperation
2. JICA KAIZEN Project in Ethiopia
3. Other examples on KAIZEN in Africa
4. Wrap up

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1. KAIZEN and JICA’s Cooperation

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KAIZEN - spread in the world
Kaizen has spread among Japanese companies in Japan and abroad.
JICA has also offered assistance for KAIZEN to many developing
countries in Asia, Latin America, Eastern Europe and now in Africa!

“5S” in many languages
Hindi

SpanishIndonesianFrenchVietnamese
ArabicTurkishCroatia
Montenegro
SerbiaBosniaAmharic
Thai

Khmer

Portuguese
EnglishSwahili

Source: JICA’s World No.28 (2010)4

1.Seiri(Sort) 2.Seiton(Set) 3.Seiso(Shine) 4.Seiketsu(Standardize) 5.Shitsuke(Sustain)

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
 Idea of Kaizen is embedded in Japanesework style as well as daily life
Source: modified from Masaaki Imai, “Kaizen: The Key to Japan’s Competitive Success”, McGraw-Hill/Irwin, 1986.

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Kaizen and Innovation

Quality/Productivity level Kaizen and innovation complement each other.

KaizenInnovation
KaizenInnovation
With Kaizen

Innovation

Without Kaizen

Time
Source: Imai (undated), Ueda (2009)6

KAIZEN tools
Kaizen Umbrella

Source: Imai (1986), cited in GRIPS (2009).

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KAIZEN tools
5S

For working environment improvement
(1) Seiri (sort), (2) Seiton (set), (3) Seiso (shine), (4)Seiketsu (standardise), (5) Shitsuke (sustain)
Philosophy and checklist for good housekeepingA variety of translation in English and other languages
Muda doriFor problem finding and countermeasures
Elimination of muda (waste)
7 types of muda: (1) overproduction, (2) inventory, (3)repair/rejects, (4) motion, (5) processing, (6) waiting and(7) transport

Source: various cited in GRIPS (2009).

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KAIZEN tools
QC 7
Tools

For problem analysis and countermeasures(1) Pareto Chart, (2) Fishbone Chart, (3) Histogram, (4)Graph / Control Chart, (5) Check Sheet, (6) Scatter
Diagram, (7) Stratification
QC Circle

For sustainable improvement and entire involvement
Small groups who collectively find a problem, discussalternative remedies, and propose a solution
Suggestion BoxFor sustainable improvement and entire involvement
Suggestion system for bottom up

Source: various cited in GRIPS (2009).

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KAIZEN tools
TQM

Total Quality Management

TPSToyota Production System

JITJust-in-time System (a part of TPS)

KambanSignboard: A system/tool for JIT

SMEDSingle Minutes of Exchange of Die…and many more

Source: various cited in GRIPS (2009).

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JICA’s assistance in Kaizen
 Beginning with the project for Singapore in 1983
 Spread from Asia to Eastern Europe, Latin Americaand Africa
 JICA has assisted in capacity development ofquality/productivity organisations
Singapore, Hungary, Brazil, Egypt, Ethiopia etc.

 Pilot/demonstration + action planning: Tunisia, Ethiopia
 Regional: Central America - Costa Rica
 African Union Commission (requested) Others

As a component of industrial development project In various sectors: from manufacturing to service such as
hospital, electricity and public services
 Individual experts and senior Volunteers Group training in Japan and third-country training (Malaysia
etc.)
Source: modified from Ueda (2009).
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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(In addition to theindividual countries,
African Union Commission
is requesting for JICA
assistance on Kaizen)

Tanzania
ZambiaBotswana

Mozam
bique

South
AfricaSource: modified from Homma (2011).

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Various backgrounds/elements for
KAIZEN in Africa (1)i. Policy support and initiative
National mid-term plan, industrial strategy K
 Ethiopia: H.E. Prime Minister’s strong initiative

ii. Implementing/related ministry/agency
Ministry of Industry: most often observed
 Ministry of Trade: international competitiveness Ministry of Labour: productivity movement
 Ministry of Education: TVET system
 Ministry of Health: hospital Agencies/Centres: Productivity Centre, Development
Agency (Zambia ZDA), Small enterprise development
agency (Ghana NBSSI) K
 Specially established organisation: Productivity Centre,
Kaizen Centre, Kaizen Unit (Ethiopia, Tanzania), Kaizen
Institute (Ethiopia, Zambia) K
Source: modified from Homma (2011).

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Various backgrounds/elements for
KAIZEN in Africa (2)iii. Target sector/size
Sectors: Manufacturing, others (service, public, hospital K)
 Sub-sectors: Metal, agro, food, textile, leather K Size: Large, medium, small and microiv. Existing mechanism
BDS provider/facilitator
 Productivity Centre Management consultant: public, private
 Private sector organisation
v. Contents of KAIZEN programme
5S, Muda elimination, QC Circle K
 OJT, TOT, pilot project, seminar/workshop KSource: modified from Homma (2011).

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2. JICA KAIZEN Project in Ethiopia

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KAIZEN in Ethiopia (Phase I & II)
Industrial Policy Support to Ethiopia – BackgroundG8 Hokkaido
Toyako Summit(Jul. 2008)

TICAD IV(May 2008)
Symposium: Economic
Development in Africa
and the Asian GrowthExperience(May 2008)

Debate on how tomake the AsianExperience relevant withaccelerating economic
growth in Africa“The Initiative for
Policy Dialogue(IPD)
Taskforce on Africa
Meeting” in Addis
Ababa (Jul. 2008)
 Debate on amore active role of
the government ineconomic policies
Introduction of
JICA’s KAIZEN
Project in Tunisia

JICA’s Follow up ofJapan’s Commitment to Africa
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JICA’s Cooperation Framework for
Industrial development of Ethiopia
Request from Prime Minister Meles （July 2008）
Support to formulate industrial
development policy for Ethiopia
Intellectual exchange of views on
industrial development strategy, andpolicy recommendations from Japan
based on the Asian development
experience.

Support to nurture privatecompanies
Technical cooperation of JICA for
enhancing competitiveness of theprivate sector learning from the
JICA’s experience in Tunisia.

In parallel“Policy Dialogue on Industrial
Development”(1st Phase: Jun. 09-May 2011)“The Study Project on
Quality and Productivity
Improvement (KAIZEN)”(Pilot Phase: Oct. 09-Jun.11)17Ethiopia KAIZEN Project Phase I (2009-11)
Profile of the project
1. Name: The Project on Quality and Productivity Improvement(Kaizen) in Ethiopia
2. Objective: To formulate a national plan for enhancing activities on
quality and productivity improvement for Ethiopian
enterprises in industrial sector
 To formulate a manual for explaining and guiding thequality and productivity improvement activities
 To transfer relevant skills and techniques to the staff
members of the Kaizen Unit, Ministry of Industry
3. Period:
2 years (August 2009～June 2011)
4. Implementing Institutions:- Ministry of (Trade and) Industry (MoTI/MOI) of Ethiopia- Japan International Cooperation Agency (JICA)
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Ethiopia KAIZEN Project Phase I (2009-11)
Major activities
Stage
1

•

•

Situation analysis on quality/productivity improvement
activities / Visit to factories for preliminary diagnosis
Preparation for the pilot project (Kaizen methodology
selection, selection of 30 pilot companies with criteria)

Stage
2

 Implementation of the pilot project

Stage
3

• Formulation of a National Plan including an Action Plan of KAIZEN

a. to visit the pilot companies to diagnose the situation, and to give
guidance on the quality and productivity improvement activity(KAIZEN) with the staff members of the Kaizen Unit, MoTI
b. to repeat factory visit periodically and give KAIZEN advice and tomonitor the KAIZEN process
c. to evaluate the pilot project and compile recommendations to thefactories• Formulation of a Manual19Ethiopia KAIZEN Project Phase I
some of the achievements obtained in the 30 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 of transportation

Before Kaizen

After Kaizen
Source: JICA Study Team (2010) 20

Ethiopia KAIZEN Project Phase I
Sample Improvement Results at 30 Pilot Companies
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 to
reduce costs.
Source: JICA Study Team (2010) 21

Ethiopia KAIZEN Project Phase I
Sample Improvement Results at 30 Pilot Companies
Quantitative Results
Monetary impact from the improvements reported is USD 30,000/company.
The reporting ranges from USD 600 to USD 190,000. Example includes:
 By Reducing costs (a) USD 600/month and (b) USD 4,600/year; By generating additional income of USD 70,000/year; By just decreasing down time USD 12,000,
 By rectifying raw materials defect used for manufacturing USD 140,000;
 By identifying, repairing and reusing of usable machines & equipment
worth of USD190,000.
 Non-Monetary Measures of Improvement include: Increasing labor productivity, by reducing time loss for searching tools on
average 50%;
Note: originally calculated in Reduction of floor space around 50%;
Ethiopian currency Birr (ETB) Defect ratio improvement in the range of 50-70%; and converted into USD at therate: USD1 = approx. ETB 17
 Lead time improved in the range of 16 to 90%;
 Labor saved from 15 to 90%.
Source: JICA Study Team (2010)22

Ethiopia KAIZEN Project Phase I
Sample Improvement Results (3)Quantitative Results (examples)Company 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/monthCompany 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/dayCompany G (Agro)By decreasing milk wastage recovered 846 birr/day

Source: JICA Study Team (2010) 23

Ethiopia KAIZEN Project Phase I
Assessment of Capacity Development of KU members
Level
0
I
II
III

IV

V

Competence
no experience of
KAIZEN
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

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Junior KAIZEN
Consultant
Assistant KAIZEN
Consultant
KAIZEN Consultant

3
6

Senior KAIZEN
Consultant
Lead KAIZEN
Consultant
Source: JICA Study Team (2010) 24

Ethiopia KAIZEN Project Phase II
Project on Capacity Building for Dissemination of Quality
and Productivity Improvement (KAIZEN)
1. Project Purpose: The system is established to disseminate quality andproductivity improvement (KAIZEN) to private
enterprises in a sustainable manner.
2. Period:
3 years (November 2011 - November 2014)
3. Implementing institutions: Ethiopian KAIZEN Institute (EKI: gazetted andestablished in October 2011, based on the Phase I
Project), Ministry of Industry
 Japan International Cooperation Agency (JICA)

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Ethiopia KAIZEN Project Phase II
Comparison between Phase I and Phase II
Phase IStage

Planning with pilot
project

Phase II
Dissemination

Impleme Kaizen Unit (KU)
nted by

Ethiopian Kaizen
Institute (EKI)

TargetLarge and Medium
Enterprises (LMEs)

LMEs + Micro & SmallEnterprises (MSEs)

Area

Addis Ababa andsurroundings

All Ethiopia

Period2009-11 (2yrs)

2011-14 (3yrs)

SchemeTechnical Cooperation
for Development
Planning

Technical Cooperation
Project

Source: Homma (2012)26

Ethiopia KAIZEN Project Phase II
Enterprise supporting system for LMEs and MSEs

MoI: Ministry of Industry
MoE: Ministry of Education
MoUDC: Ministry of Urban Development and Construction
EKI: Ethiopia KAIZEN Institute
FeTA: Federal TVET Agency
ReTA: Regional TVET Agency
TTTI:TVET Teacher’s Training Institute
TVET: Technical and Vocational Education and Training
FeMSEDA: Federal MSE Development Agency
ReMSEDA: Regional MSE Development Agency
CRC: Cluster Resource Centre
LMEs: Large and Medium Enterprises
MSEs: Micro and Small Enterprises
TTT: TVET Trainers’ Trainer

Source: JICA Study Team (2011)27

Ethiopia KAIZEN Project Phase II
Planned KAIZEN dissemination structure

Source: JICA Study Team (2011)28

3. Other examples on KAIZEN in Africa

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Ghana – KAIZEN as a part of a
project for MSE development
Project for Formulating a Strategic Model for Quality / Productivity
Improvement through Strengthening BDS for MSEs
Project period: April 2012 – April 2015 (3 years)
Implementing agency: National Board for Small Scale

Industries (NBSSI), Ministry of Industry and Trade
Utilising and Capacity building of Business Advisory
Centres (BACs) and its network
Target area: Ashanti Region
Overall Goal: Replication of the “Strategic Model” in thewhole of Ghana
Project purpose: formulation of the “Strategic Model”
Function of BDS provision/facilitation
Some Kaizen experiences in Ashanti in the past
Kaizen as an additional tool of BDS / as a way of thinking
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Implementation image of Ghana Project
MOTI: Ministry of Trade and Industry
NBSSI: National Board for Small Scale Industries
BAC: Business Advisory Centre
GRATIS: Ghana Regional Appropriate Technology Industrial Service
RTF: Rural Technology Facility
BDS: Business Development ServiceInput the “Strategic Model”
to MOTI and NBSSI HDQs
MSE: Micro and Small Enterprise

NBSSI HDQs

Project Purpose:
Formulation of the “Strategic Model”

GRATIS

Ashanti Region

MOTI

Project Director
Deputy Project Director

Regional NBSSI
Project Manager
Project Staff

RTF
Enhancement of
BACs’ capacity

BAC

MSE

×20
BACs

BAC

BAC Heads/staff

BAC Heads

BDS

facilitation

MSE

PrivateBDS provider

BDS
BDS

MSE

BDS

MSE

MSE

Consulting ofspecific techniques

Support BAC’s BDS
utilising their technical knowledge and skills

cooperation

Overall Goal:
Replicationof the“Strategic
Model” inthe wholeof Ghana

Regional NBSSI
Output 1: formulation of
the system andcapability tocontinuously improvethe capacity of BACs’ BDS
provision/facilitation
Output 2 :Improvement of thecapacities of BACs toprovide/facilitate BDSby(i) Improving the existing
BDS, and(ii) Adding KAIZEN
concept to BDS:
through OJTs andseminars/workshops
Output 3: formulation of
the “tools” to be used in
the replication of the“Strategic Model” in thewhole of Ghana

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Kaizen in Zambia
 Started in 2009 with the QC Circle based approach, wider

and growing participation of companies / organisations:manufacturing, non-manufacturing and public institutes
 1st Zambia National KAIZEN Conference (12-13 Feb 2010)
 9 teams from 6 organisations participated 18 QCCs in 4 public, 5 QCCs in 4 non-manufacturing
and 20 QCCs in 5 manufacturing in operation in 2010
 2nd Zambia National KAIZEN Conference (18-19 Feb 2011) 20 teams from 9 organisations participated 44 QCCs in 12 public (ministries, local councils,colleges), 23 QCCs in 5 non-manufacturing (finance,
school, water supplier) and 19 QCCs in 8 manufacturing(various) in operation in 2011
 Participated in 36th International Convention on Quality
Control Circle (ICQCC) on 11-14 Sep 2011 in Japan(possibly first presentation from Africa) Source: modified from Adachi (2012). 32

Kaizen in Zambia
 3rd Zambia National KAIZEN Conference (16-18 Feb 2012)30 teams from 19 organisations participated 30 QCCs in public, 17 QCCs in education, 16 QCCs ingeneral services and 18 QCCs in manufacturing Currently under the framework of “Zambia Investment

Promotion Project - Triangle of Hope”
 Zambian Government sets up “Kaizen Institute of Zambia(KIZ)” A JICA technical cooperation project to support KIZ anddisseminate Kaizen is under formulation in response to theofficial request by Zambian Government.
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Source: modified from Adachi (2012).

4. Wrap up

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Wrap up - Implication
 How Kaizen spread in the world and Africa:

various practices/lessons available in the world
 Kaizen is: mindset, philosophy, way of thinking
 tool, technique, methodology
 Involvement of top management (country,
company) Process-oriented, practical, field-oriented,
implementation
 Sustainability – Self-sustainable Learning process and customisation
 Complementarity with policy dialogue
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Thank you

JICA’s VISION
JICA’s“Inclusive and Dynamic Development”
www.jica.go.jp

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