Productivitymovement
movement
Productivity
ininAfrica
Africa11

Notes on the icons in the upper rightcorner of the slides
Projected on the screen and also
included in the handouts.
Only projected on the screen.
(Not included in the handouts)
Only included in the handouts.
(Not projected on the screen)

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Profile of JPC• Established in 1955
• Private and non profit organization• Tripartite composition of management, scholars & trade union
leaders• Now 10 departments with 300 + employees (250 permanent staff, 50+ exclusive consultants and overseas technical experts)• 7 regional centers and 8 prefectural centers (4,000 members)• JPC has 2,000 members (72% from companies, 18% from tradeunions. 34% from SMEs)• Total Budget: 9billion JPY(app. 82 million USD), FY 2016
• Business income 94%– Government consignment 4%– Membership fee 2%
3Main activities• Management innovation & development• Management consultation• Policy Proposal making & productivity
researches• Labor-management relations• International cooperation

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Management Innovation andDevelopment• Management seminars for top executives• Managerial capacity development programs (bymanagerial level, management skills andprofessional expertise )• In-company tailor made training programs• Business School “Management Academy”

5Management consultation• Consultation activities– Strategy and Plan
– Human resource management– Production innovation

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3

Policy proposal & Productivity
researches• Policy proposal making for improving SocioEconomic System – basis for productivity
improvement• Productivity research• Labor Productivity -Monthly & Quarterly• International Comparison• Total Factor Productivity
7

IMPORTANCE OF PRODUCTIVITY【Businesses】
The efficiency of corporate activities can be
improved while enhancing profits and expanding
resources for wages.

【Countries, industries】
Enhanced labor productivity can improve
economic efficiency, leading to economic growthand bringing affluent lives to people.
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IMPORTANCE OF PRODUCTIVITY(VARIOUS COUNTRIES’ PERSPECTIVES)【Japan】
1955○ Improvements in general productivity, including corporate
management skills, and facility modernization led to reduced costs
and enhanced quality while boosting exports and increasing thenational income.
2015-2016○As the working population declines, productivity innovation has
become imperative to overcome supply constraints and achievesustainable growth. (Investments in equipment, technology andhuman resources aimed at improving productivity are crucial.)○Comprehensive measures are required to strengthen growth in theservice industry, which accounts for 70% of GDP. (The goal is to double
the productivity growth rate of the service industry by 2020.)
9

IMPORTANCE OF PRODUCTIVITY(VARIOUS COUNTRIES’ PERSPECTIVES)【USA】
2014 Economic Report of the President○ Productivity over the past two decades was higher than in the 1970s and 1980s,
though falling short of the levels achieved in the 1950s and 1960s. The
Administration aims to improve productivity by implementing measures topromote innovation while reducing its impediments.
2015, 2016 Economic Report of the President○ The widening income gap has been particularly conspicuous in the US in recent
years compared with other industrialized countries. Reducing inequalities inincome, wealth and opportunities is among the top priority issues for the U.S.
economy. By promoting equality in productivity, labor participation and laboroutcomes, the US aims for inclusive growth in the country.
※In 2016, sluggishness of labor productivity, an indicator of economic efficiency,
triggered a debate among observers in the US over the outlook of the country’s
economy.

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IMPORTANCE OF PRODUCTIVITY(VARIOUS COUNTRIES’ PERSPECTIVES)【The European Union】
Europe 2020: Medium-term economic and employment
strategies○ The three pillars of Europe 2020 are smart, sustainable
and inclusive growth aimed at eliminating the mismatchof labor supply and demand while improving productivity
by ensuring opportunities for member countries actively
developing human resources.

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IMPORTANCE OF PRODUCTIVITY(VARIOUS COUNTRIES’ PERSPECTIVES)【The African Union】
Agenda 2063: Long-term vision on politics, economy and society○The Productivity Agenda for Africa will be enhanced as an essential
engine for industrialization, increasing agricultural and industrial
values and boosting the African continent’s competitiveness in the
global economy.

【Kenya】
Vision 2030: Long-term development policy
Vision 2030, the country’s long-term development policy from 2008
to 2030, includes the National Productivity Policy aimed at improving
productivity at an annual rate of 5% while raising the percentage ofthe population who understand the concept of productivity to 60% by2030. Pillars have been set for enhancing productivity mainly in fourareas: productivity culture, labor market development, technologicalchange and innovation, and institutional and legal arrangements.
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ROLES PLAYED BY THE PRODUCTIVITY ENHANCEMENTMOVEMENT (JAPAN’S EXPERIENCE)

Three Guiding Principles on “Productivity”:(1) Improving productivity should lead to expanding
employment.
(2) Labor and management must cooperate in researching anddiscussing specific methods to improve productivity inconsideration of specific corporate circumstances.
(3) The fruits of productivity should be distributed fairly amonglabor, management, and consumers in line with the state ofnational economy.
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SHARING JAPAN’S EXPERIENCE WITH ASIA AND
AFRICA
1955-65 Transfer ofWestern businesstechniques to Japan

2006- Transfer ofJapanese businessknow-how to Africa

1996 Reimport ofAmericanmanagement
skills(management
quality) to Japan
1960- Transfer ofJapanese businessknow-how to Asia
Asian economies customized andtransferred Japanesemanagement know-how to Africa

1980s Focus on the studyof Japanese-style
management (bestpractice, benchmarking)

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PRODUCTIVITY ENHANCEMENT THROUGH HUMANRESOURCE DEVELOPMENT (JAPAN’S EXPERIENCE)
Top management
Executives
Tech supervisors, seniortechnical professionals
Middle management
Middle technical professionals
Lower managers, supervisors
Lower tech professionals

Productivity enhancement
through human resource
development×＝

Mid-level employees

Young/newly hired employees

New business, productdevelopment
Marketing, client management

Customized training according topositions, skills and functions

Consulting

Team leaders

Business/corporate strategies

Establish a system for thecompany to achieve growth on
its own

Tech management,
manufacturing
Corporate governance,
organization development
Financial accounting, financial
planning
Human resource development,
personnel affairs
Management/business skills

Management consultants

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PRODUCTIVITY ENHANCEMENT THROUGH HUMANRESOURCE DEVELOPMENT (JAPAN’S
EXPERIENCE)(IMPLEMENTED
IN AFRICA)
Top management
Executives
Executives
Tech supervisors, senior
Senior technical professionals
technical professionals
Middle management
Middle technical professionals
Lower managers, supervisors
Lower tech professionals
Team leaders

Productivity enhancement
through human resource
development

Young/newly hired employees

Management consultants

New business, productdevelopment
Marketing,Marketing client management

Customized training according topositions, skills and functions

×

Consulting＝

Mid-level employees

Business/corporate strategies

Establish a system for thecompany to achieve growth on
its own

Tech management,
Manufacturing
manufacturing
Corporate governance,
organization development
Financial accounting, financial
Financial accounting
planning
Human resource development,
Human resource development
personnel affairs
Management/businessskillsManagement skills
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8PRODUCTIVITY PROMOTION IN AFRICA BY THE JAPANESEGOVERNMENT AND MINISTRY OF ECONOMY, TRADE AND INDUSTRY
1. Background【Asian-African Summit, April 2005 】
Then Prime Minister Junichiro Koizumi proposed support for peace-building andeconomic development in Africa by applying the knowledge gained through Asia’s
movement towards higher productivity.
【TICAD V, June 2013 Plenary Session 3 “Dialogue with the Private Sector”】
Prime Minister Shinzo Abe introduced Kaizen as one of Japan’s business strengths,
proposing to spread the industrial culture that brought about miraculous economic
growth in Asia to Africa.
2. Objectives
・ Support the establishment of national productivity organizations (NPOs) as
prospective members of the Pan-African Productivity Association (PAPA)
・ Strengthen the consulting ability of NPO staff
・ Conduct pilot projects that involve productivity enhancement in manufacturing andother industries (OJT at model companies)
・ Promote productivity enhancement in Africa
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PRODUCTIVITY PROMOTION IN AFRICA BY THE JAPANESEGOVERNMENT AND MINISTRY OF ECONOMY, TRADE AND INDUSTRY
3. Project overview○ Dispatch experts to strengthen the abilities
of NPO staff and provide OJT on 5S and
Kaizen at model companies○ Disseminate initiatives by sharing theresults in seminars○ Enhance consulting abilities by providing
training in Japan※ Features of the 2016 project○ Strengthen the abilities of NPO staff in
South Africa, Kenya, Nigeria and neighboring
countries⇒ Invite staff to the project’s target countries○ PAPA workshop⇒ Promote productivity in Africa, strengthen
the relationship with the AU, establish
relationships with African Regional Economic
Communities (RECs), and support otherefforts by PAPA

Ghana
Nigeria
Kenya

Burkina Faso
Tanzania
Botswana
Namibia

Zimbabwe
MauritiusSouth Africa
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9PRODUCTIVITY PROMOTION IN AFRICA BY THE JAPANESEGOVERNMENT AND MINISTRY OF ECONOMY, TRADE AND INDUSTRY

4. Transition of target countries
Business year

Target countries

2006-2010

South Africa, Kenya, Mauritius, Botswana, Zambia (from 2010)2011-2012

Zambia2013

South Africa, Kenya, Mauritius, Botswana, Zambia

2014

South Africa, Kenya

2015

South Africa, Kenya, Nigeria (preliminary survey only)

2016

South Africa (participants invited from Namibia, Botswana,
Zimbabwe and Mauritius), Kenya (participants invited from
Tanzania), Nigeria (participants invited from Ghana and Burkina
Faso)

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PRODUCTIVITY PROMOTION IN AFRICA BY THE JAPANESE GOVERNMENT
AND MINISTRY OF ECONOMY, TRADE AND INDUSTRY
Discuss productivity
promotion in Africa,
collaboration with
relevant bodies andstrengthening of
PAPA’s efforts

Experts

C/Ps
Provide practical knowledge in classroom
lectures

Experts
PAPA workshop（FY 2016）

Experts
Experts

C/Ps

C/Ps

C/Ps

Introduce practical productivity enhancement
measures through OJT

Share the results with various parties
through seminars
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What is 5S?
5S represents five keywords for maintaining order in the workplace with theaim of enhancing productivity and quality
Japanese

EnglishExamples of actual measures

Seiri

Sort

Discard unnecessary things

SeitonSet in order

Keep documents and tools where they
can be found within 30 seconds

SeisouShine

Assign an area to each person to be
responsible for keeping clean

Seiketsu

Standardize

Shitsuke

Sustain / Discipline

Store things where they are visible(avoid stacking and blocking
passageways)
Practice the above 4S’s in daily
operations
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What is KAIZEN??
Kaizen refers to simultaneous, multilateral improvement efforts that involve
everyone in the organization from top management to rank-and-filers.

Based on American
quality management
methods, management
techniques have beendeveloped to suit
Japanese businesses.

Kaizen umbrella

・TQC
・ QC circle
・ Proposal system
・ Automation
・ Workplace
discipline
・ TPM

・ Kanban method
・ Quality improvement
・ Just-in-time
manufacturing
・Zero defects
・ Small-group activities
・ Productivity
enhancement

Studies in the US on thestrengths of Japanesemanufacturers in the 1980s
contributed to spreading
the concept and methodsof Kaizen outside Japan.

KAIZEN is an umbrella concept that covers various management
techniques devised in Japan.
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11Features of KAIZEN・Existing techniques are developed further in a phased manner.
・Focuses are placed on human elements and improvement efforts in each process.
・No need for large investments.

Kaizen is a method of improving quality and productivity using existing
personnel and financial resources. Kaizen requires constant effort andcontribution by all members of the organization!

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Structure of Productivity & Quality Improvement
Methods
Advanced methods ofproductivity & quality improvement(TQM,Six Sigma, etc.)

5S promotes workplaceorder and shapes themindset of workers. It
also serves as thefoundation of thequality/productivity
enhancement scheme.

Continuous, multilateral
improvement activities
involving top management
and employees.

KAIZEN(Continuous improvement)

5S(Foundation of productivity
improvement)
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RESULTS OF OJT AT A MODEL FIRM:JUNGLE NUTS (KENYA) – NUTS PROCESSING COMPANY
Piled up products blocked thepassageway, making it hard touse the shelves. By securing
the necessary space, the time
for taking out or storingproducts was reduced by 120
hours per year.

Improvement in temporary product storage (review of the workspace)
Inefficient routes of moving
products were causing a
number of unnecessary
moves. By changing theprocesses, productivity per
worker improved 162%.

1

Improvements in the processes of packing and moving products

RESULTS OF OJT AT A MODEL FIRMWECO (SOUTH AFRICA) – MANUFACTURER OF PRECISIONMACHINERY PARTS

Improvement in the manufacturing processes of “1838 Liner”
Purchasematerial

External
grindInternal
grind

Cut
65mm
long

DeburrInspection

Predrill
Ø60mm
Drill 5 offvariousholes
GRN tostores forstock

Turn 1st
operation

Turn 2ndoperation

Purchasematerial

External
grindInternal
grind

Turn 1st
operation

Cut 65mmlong

DeburrInspection

Drill 5 offvariousholes

Turn 2ndoperation

GRN tostores for
stock

Visualization/reexamination of the manufacturing processes helped confirm that predrilling could be cut
without affecting product quality. The elimination of predrilling shortened the production cycle for 30 units
from 119 hours to 88 hours.
21Major Results of Consulting at Model Firms in Recent Years (Reference)【South Africa】
Company data

Productivity / quality issues

Consulting outcomes

Main business: apparel
manufacturing
Employees: 114●Low labor productivity due to muda (activities that ●Improvement in labor productivity by rethinking the work procedures
add no value), such as excessive waiting time and(small-group activities for reviewing operations, standardization of work
inefficient machine preparations
procedures, introduction of cellular manufacturing, etc.): 18.5%●High manufacturing costs●Cost reduction through productivity improvements: 19.2%
Main business:●Lack of basic structure for improving productivity●Implementation of 5S
manufacturing of building
and quality (5S, lead-time management, and●Introduction of lead-time management by small-group activities,
materials (curtain rails, etc.)
quality control not practiced)
introduction of quality standards, enhancement in client
Employees: 200●Need to increase sales
communication, standardization of work procedures, production
planning and management●Per-capita sales increase through the above efforts: 45.2%
Main business:●Lack of basic structure for improving productivity ●Implementation of 5S in the embroidery area and visual work
manufacturing of clothing
and quality (5S and visual work management not
management (installation of a bulletin board for shipment control)
items
practiced)●Reduced time for finding necessary materials: 75%
Employees: 30
Main business:●Lack of basic structure for improving productivity ●Reduced time for finding works-in-process and tools by implementing
manufacturing of waterand quality (5S and visual work management not
5S in the storage areas
valvespracticed)
Employees: 75●Low productivity due to unnecessary processes(inefficient conveyance, hard to find parts andtools)
Main business:●Low productivity due to muda (inefficient ●Improvement in productivity by changing the layout and rethinking the
manufacturing of officeconveyance, excessive waiting time)processes and movements: 11.5%●High costs due to excessive work-in-process ●Formulation of a plan for reducing excessive work-in-process inventory
furniture (steel shelves）
inventory
Employees: 250
Main business:●Short-term challenge: customer complaints arising ●Revision of the contract form based on an analysis of customer
manufacturing of granitefrom sales-manufacturing miscommunication
complaints, reduction in complaints by early provision of necessary
products (headstones, etc.) ●Medium-term challenge: frequent do-overs due toinformation
Employees: 67
unclear instructions●Reduction of do-overs through the introduction of job cards (workinstruction chart)
Main business:●Defects in flagship products (A-product labeling ●Reduction of defects by introducing an on-site QC circle andmanufacturing ofline, A-product processing line)
implementing specific measures against major causes (improvements
intravenous fluids
in work balance, reinforcement of inspections, worker training, etc.);
Employees: 700
improvement rate in A-product labelling line: 60.3%, processing line:
43.7%

Company data

Productivity / quality issues

Consulting outcomes

Main business: cleaning,linen supply
Employees: 120●Low productivity due to inefficient ironing methods ●Improvement in productivity by revising the work methods (modification●High failure rate relating to color changes duringof working tables, reconsideration of movements): shortened ironing
cleaning
time per item by 12.2 seconds●Reduced failure rate by introducing a QC circle and adopting measuresaccording to its analysis of major causes (standardization ofprocedures, implementation of 5S to prevent the accidental mixture ofsolvents, worker training): approximately 70%

Main business:
manufacturing of tissue
paper
Employees: 51●Long lead time of packaging●High failure rate in pocket tissue production

Main business: port
management●Lack of basic structure for improving productivity ●Implementation of 5S at the model quay
and quality (5S and visual work management not ●Introduction of education and training programs for employees
practiced)●Introduction of a value-streaming map for raising quay usage●Need to raise quay usage●Lack of basic structure for improving productivity ●Shortened moving distance through layout changes
and quality (5S and visual work management not ●Work standardization
practiced)●Lack of basic structure for improving productivity ● Shortened walking distance through layout changes, leading toand quality (5S and visual work management not
reduced working hours equal to 2-3 days per year
practiced)●Shortened working hours by standardizing the procedures foreliminating unnecessary movements

Main business:
manufacturing of steel andaluminum molds
Main business: brazing of
diamond chips on cutting
tools
Employees: 4Main business:
manufacturing of
excavators and their repair
parts
Employees: 73●Shortened lead time by increasing the efficiency of the packaging
process (reduction of unnecessary procedures, waiting time): 23%●Reduction of defects by taking measures based on the cause analysis
results (introduction of machine maintenance tools, machine cleaning
and inspections, introduction of a quality control check sheet, etc.)●Lack of basic structure for improving productivity ●Major improvements in the working environment by installing a 5S
and quality (5S and visual work management notcommittee and carrying out its measures
practiced)●Reduction in manufacturing time and costs by identifying wastefulspending

【Kenya】
Company data

Productivity / quality issues

Consulting outcomes

Main business: truck (FY2013)assembling●Lack of basic structure for improving productivity ●Improvement in productivity by reviewing the work procedures andEmployees: 280
and quality (5S and visual work management not implementing 5S (better management of parts and tools): 36.2% (a total ofpracticed)
two lines)●Low productivity resulting in the failure to meet ●Introduction of 5S and visual management
deadlines (inefficient work procedures)Main
business: （FY2013）
manufacturing of car ●Low productivity due to inefficient manufacturing ●Improvement in productivity by eliminating inefficiencies and introducing
components(wire
processes (excessive work-in-process inventory, one-piece-at-a-time production; improvement rate in wire harness
harnesses, roof parts,
waiting time, inefficient conveyance, etc.)
production: 41.6%, roof spring production: 20%
etc.)●Poor material management●Introduction of 5S and visual management
Employees: 154●Lack of basic structure for improving productivity
and quality (5S and visual work management notpracticed)●Low manufacturing quality（FY2014）●Lack of basic structure for improving productivity ●Introduction of 5S and visual management
and quality (5S and visual work management not ●Improvement in labor productivity by reviewing the manufacturing processes;
practiced)
improvement rate in wire harness production: 20%●Low productivity due to inefficient manufacturing ●Reduced failure rate in wire harness production: 30%3%
processes (excessive work-in-process inventory,
waiting time, inefficient conveyance, etc.)※Continued agenda from the previous year
(FY2015)●Need for organizational enhancement of 5S, ●Introduction of 5S and visual management
including other divisions●Introduction of visual management in manufacturing for reviewing work
●Low productivity due to inefficient manufacturing procedures and eliminating inefficiencies
processes (excessive work-in-process inventory,
waiting time, inefficient conveyance, etc.)※Continued agenda from the previous year

Company data
Main business:
manufacturing ofnuts
Employees:
approximately 1,000

Productivity / quality issues

Consulting outcomes（FY2014）●Lack of basic structure for improving productivity ● Introduction of 5S and visual management, enhancement of safety
and quality (5S and visual work management not management
practiced)●Improvement in the productivity of packaging by reviewing the procedures to●Low productivity due to inefficient manufacturing reduce waiting time and improve conveyance: 162%
processes (excessive work-in-process inventory,
waiting time, inefficient conveyance, etc.)（FY2015）●Lack of basic structure for improving productivity ●Introduction of 5S and visual management
and quality (5S and visual work management not ●Achievement of stable productivity (quantity/time) by improved shelling
practiced)
efficiency●Low productivity due to inefficient manufacturing
processes (excessive work-in-process inventory,
waiting time, inefficient conveyance, etc.)※Continued agenda from the previous year

EXPECTATIONS FOR THE PAN-AFRICAN
PRODUCTIVITY ASSOCIATION (PAPA)“Productivity is above all a state of mind. It is an attitude
that seeks the continuous improvement of what exists. It
is a conviction that one can do better today thanyesterday and that tomorrow will be better than today. It
also requires constant effort to adapt economic activities
to ever-changing conditions and the application of new
theories and methods. It is a firm belief in the progress ofhumanity.”-----Rome Declaration in 1959, the European Productivity Agency
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KAIZEN for the brighter futureof Africa.

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