Research undertake in the enterprises and in the College TVET, research methods also for enterprises I used convinces or (availability) sapling methods because of proximity for the college purposive sampling methods despite other colleges available in the Addis Ababa City Administration.

1. 1.1.Description of the Sample Organizations
Gulele Sub City is one of the sub cities under the auspices of the City Government of Addis
Ababa. The study was thus undertaken at Woreda 03 Administration among those ten Woreda
Administrations of Gulele Sub City. According to the Ethiopian Central Statistical Agency
(CSA), the total estimated number of inhabitants in the Woreda was in 2013. Disaggregated by
gender, there were males 9 and females 4.
Regarding the location of the TVET Office and the Woreda Industrial Extension Business
Process in Gulele Sub city, it appeared that it was difficult to actually state its current
geographical location in the Sub City as it had not had a permanent residential office. The Office
is currently situated in an office which was borrowed from Arada Sub City. However, the TVET
Office is planned to be moved to new premises which are under construction around Addisu
Gebeya in Gulele Sub City.
Whatever might be the case, the TVET Office in the Sub City is working in close collaboration
with AACA TVET Agency. They are governmental organizations which came into operations on
February 12, 2009. Specifically, the Act (Proclamation No. 11/2009-Amended) for the
establishment of the TVET Agency was put in force by the Council of Addis Ababa Regional
Government (AACC, 2009). Among those responsibilities delegated to the Agency, it has the
right to direct and to coordinate technical and vocational education and training colleges and
institutions ‘(private or public)’ in the City Administration (Article 9 [14]). Besides, it has been
coordinating and giving the necessary support for practical on-job trainings that have prepared
for technical and vocational education and trainings in collaboration with manufacturing and
service giving institutions (Article 9 [9]). Accordingly, the administration of TVET institutions
(both private and public) has become under a sub city level since then. The TVET Agency
provides administrative supports to the Sub City as it has been delegated with full responsibility
and authority to facilitate overall activity of the implementation (such as monitoring and
evaluation, including the implementation of Kaizen Management philosophy in the enterprises in
collaboration with the TVET Cluster College and institutions).

2. In the organizational structure of the TVET Agency, Woreda Industrial Extension Business
Owner (as one level which had had a direct responsibility to the sub city level) was founded until
last year. After the City Government had observed the success of the pilot project, it opened
office at every Woreda level. Hence, the Gulele Sub City Administration Office opened ten
offices in its ten woredas. The study Woreda Office is generally situated near Yekatit 12 (ex-
Menen) Preparatory School which is also about 300 meters away from the Addis Ababa
University (AAU).
The implementation of Kaizen Training at the enterprises which is found under the Addis Ababa
TVET Agency commenced in 2011. The Training Programme was conducted at Woreda 3 level
of Gulele Sub City. The implementation of Kaizen support, particularly quality and productivity
at the level of enterprises was conducted by Woreda 3 in the Sub City through MSEs. After the
Office had implemented a pilot project in the SMEs in 2010/11, according to the Report prepared
by Woreda 3 Administration Office, the Second Programme was started in Woreda 3
Administration in 2011/12. In the Woreda, there were a total of 12 Small and Micro Enterprises
in DTM manufacturing area and it implemented Kaizen in collaboration with TVET College. In
general, the study focused on Entoto TVET Polytechnic Cluster College; DTN Engineering
Enterprise; DOBA and ATW Enterprises; ATW Engineering; Lalibela Construction P.L.C.;
Ralcon Construction P.L.C.; and Beza Wood & Metal Work Enterprises in Woreda 3 of Gulele
Sub City.
1.1.1. Entoto TVET Polytechnic Cluster College
The College is located near Meskayeazunan Medehanialem Monastery around Sidist kilo area
which is situated a few metres away from the Main Campus of Addis Ababa University under
Gulele Sub City Administration (see its map on the annex page). This College has passed long
history of educating and training students for more than seventy-seven years. Since its
foundation until 1974, it was known by the name of the then king ‘Haile Selassie’ of Ethiopia -
Teferi Mekonnen. In 1974, the military Government (the Derg Regime) came into power, the

3. name of the School was changed to Entoto Comprehensive Secondary School. In 2000, the name
of the School was changed to Entoto TVET College.
Presently, the then Haile Selassie Secondary School is known as Entoto TVET College. This
College was established by the Proclamation No. 22/1999 in the Negarit Gazeta of the City
Administration of Addis Ababa. The City TVET Agency is authorized by that Proclamation and
then has duties and responsibilities.
Entoto TVET College is one of the known and giant public TVET clusters found in Gulele Sub
City of Addis Ababa. Pamphlets prepared by Entoto TVET College in 2013 indicated that there
were 402 (379 employed workers, consisting of 245 teachers, 134 administrative staff, and 23
contractual administration staff). The Vocational Training Centre has continued to provide the
Informal and Non-formal Training to 3128 trainees. Out of them, 2110 are regular students (1324
females and 786 males) and 1396 persons were informal types of trainee (378 males and 1018
females) in all departments in 2014 according to Entoto TVET report (2014). Beginning from
2000, the TVET College implemented outcome-based training for those trainees from level 1 to
level 4 until half of 2003. The College was offering Training Programmes on both hard and soft
skills (business, accounting, manufacturing, construction, etc.) until 2010.
The Ethiopian Federal TVET Agency labelled the College as a better training performer in 2011.
The new reform of the TVET Strategy amended in 2011. Thus, the then Entoto TVET College
has been named as Entoto TVET Cluster College since then. However, a new chapter was
opened in the College in 2011 due to the decision to offer training areas that require more
practice only in (hard skills) in the premises and the provision of Kaizen Training at the
enterprises. Currently, the Cluster College has started training in the level 5 of the TVET.
During the undertaking of the study, the College was offering training on the following levels of
occupations: Hotel Management at Levels 1-4; Information Technology - Levels 1-4; Metal and
Wood Work - Levels 1-4; Automotive Technology - Levels 1-4; Drafting and Survey - Levels 1-
4; Construction Technology - Levels 1-4; Textile and Garment - Levels 1-4; Electrical and
Electronics - Levels 1-4; and Aesthetics - Levels 1-4. The above-stated list of occupations is
derived from the National Occupational Standards (NOS) prepared by the Ministry of Education

4. in collaboration with stakeholders. Based on the availability of the occupations (departments),
they have been conducting Training on Kaizen starting from 2010 onwards. Owing to the
existing conditions, those aforementioned departments have been offering Kaizen Training in the
premises of the enterprises. As the stakeholders had high degree of involvement in the
development of the document, every training institution was expected to organize and provide
the actual training process using its own resources depending on it.
In line with the above-stated Training Programmes designed in the College, the Institute was
implementing Kaizen Training in the enterprises based on its own criteria to offer the support of
the Training. A guideline and a plan were prepared to facilitate the implementation of Kaizen
Training Programme. Accordingly, the TVET College received financial support from Addis
Ababa TVET Agency Office for offering Kaizen Training. The Training is supposed to pass
through a series of steps, viz., meeting appointment with enterprises and undertake Kaizen
Training implementation after they have got confirmation, planning of the Kaizen Training with
the enterprises, signing of training agreement, establishing Kaizen Training sites, assigning
training coordinators, inspecting training sites, and monitoring and evaluating the programme.
Along with this, the college developed various formats to facilitate the implementation of Kaizen
at the enterprises level and to provide promotion from their level one step ahead after providing
COC.
1.1.2. DTM Enterprise
DTM Metal and Wood Production is a private limited company which is located in Woreda 3
near the health centre. The DTM Enterprise is producing office and home furniture. The
Enterprise is at the status of Small and Micro Enterprise based on its own capital level, which is
set by the standards of measurement of capital owned, according to the Federal Micro Small
Enterprise Bureau. Regarding human resources in the Enterprise, there are 10 shareholders (8
males and 2 females) as members of association. Disaggregated by educational status, one
diploma, 2 certificate holders and the remaining, 7 members are 10 grade students. Last year, the
number of shareholders was 12 members (10 males and 2 females). In addition, this Enterprise
creates job opportunities for a total of ten employees (9 males and 1 female). In terms of their
employment, seven of them were full-time workers, while three employees were part-timers in

5. the Enterprise. DTM Enterprise was inaugurated with initial capital of ETB 1200 as of 2006. The
machinery costs were ETB 84700 and ETB 17000. The machineries contributed a lot in attaining
the current capital which exceeds to ETB 143,184. They applied Kaizen Management philosophy
in their Enterprise by the help of Entoto TVET Cluster College in 2010 before the
commencement of the Woreda Industrial Extension Process.
1.1.3. DOBA Enterprise
DOBA Metal and Wood Production Enterprise is a private limited company which is situated at
Woreda 3 aside the Health Centre. This Enterprise is producing office and home furniture,
garment machineries, among other products. As an association, it has achieved the status of
Small and Micro Enterprise ten shareholders (8 males and 2 females). Moreover, the Enterprise
has created job opportunities for other workers (8 males and 2 females). Disaggregated by types
of employment, there are 2 full-time workers and 3 part-timers. Two of the employees are first
degree holders in Textile Technology, two workers hold first degree in Mechanical Engineering,
and one of them also holds MSC in Mechanical Engineering, including two of them hold
Diploma in Accounting and two of them have certificates.
The Enterprise was started with an initial capital of ETB 1200 as of 2009. Having made a great
effort after its establishment, it currently manages to have a capital of ETB 720,000. DOBA
Enterprise started implementing Kaizen with the help of the Ethiopian Kaizen Institute in 2012.
This Enterprise was implementing the Kaizen Philosophy properly. Although there was a
shortage of place for their products, the workers were found to strictly follow the steps and
discipline of the System. Since most of the Enterprise members are educated, the application of
Kaizen is proper and their management system also revealed a potential for bringing
improvement in the production values. The Enterprise got an award from the Ethiopian Ministry
of Science and Technology for its members’ innovation of a machine which can produce
traditional clothes called Shema and Tibeb. The machinery has reduced production time and
created comfortable working environment. Hence, the shareholders of the DOBA Enterprise are
engaged in modern types of production as they do not longer use the ordinary and traditional
types of production tool of weaving which have been consuming their production time and
power.

6. 1.1.4. ATW Engineering Company
ATW Engineering was inaugurated in 2013 which could be considered as a type of
entrepreneurship organization. The ATW Engineering Company is located between Kechenie
Medhanialem and Shuro Meda area in Woreda 3 of Gulele Sub City which is in the northern part
of Addis Ababa. This Enterprise started its operation last year. Based on the successful
contribution of the ATW Engineering Company last year, it has started working with DOBE
Enterprise. In 2013, the ATW Enterprise had four permanent and twelve temporary workers
based on the projects on hand. There were four trainees in the Company at that time. Nowadays,
the same Company is offering cooperative training. Thus, the Company will keep on accepting
practitioners and trainees from TVET colleges as the two Enterprises have already signed
memorandum of understanding (MOU) with Entoto TVET Polytechnic College. The main work
of the Enterprise is being innovative of every devise which is important for human beings.
Presently, the House and Construction Bureau of the City Government of Addis Ababa has
already provided one workshop to the Enterprise for its great work. Besides, this Workshop is
believed to ease its activities for future. Consequently, the Ethiopian Ministry of Science and
Technology accepted its innovative work and awarded the Company with a certain amount of
money in Ethiopian Birr. Finally, the ATW Enterprise got its patent right of knitting (crafts)
machine from the Ministry of Science and Technology. At this time, the Company was
nominated for an international award for the innovative their machinery.
So far, the ATW Engineering has created several types of equipment, but among other things, its
great innovation is finishing the semi-finished car and making it a Mobile Clinic (Ambulance)
through its owners’ efforts. In so doing, the workers have furnished its inside part with a solar
device using solar energy and then changing it into electric light, which supplies power for
sterilization of medical equipment and ventilation thereby adding value that is unique aspects of
their innovation. In addition, the workers in the Company furnished the internal parts of the car
with various facilities (like patients’ bed, tool kits together with other medical devices they have
made it). It is, therefore, an extraordinary and a perfect achievement for the Enterprise and for
those millions of poor which cannot access to health care and medical services. Generally, the
innovator of the services which have improved and eased the lives of the rural society by
addressing their health related problems.

7. 1.1.5. Lalibela, Ralcon, and Beza Wood & Metal Work Enterprises
The overall activity which is performed in the implementation of Kaizen Training by keeping the
particular procedures is presented as follows:
Implementation of ‘Kaizen’ philosophy is conducted in the three i.e. A,B,C, enterprises which
are founded in Woreda 3 of Gulele Sub City, namely, Lalibela Construction P.L.C., Ralcon
Construction P.L.C., and Beza Wood and Metal Work Enterprises. The full implementation package
of Kaizen Programme has been performed by Kaizen team of the Enterprises in collaboration
with the Woreda and the TVET College.
a. Lalibela Construction Private Limited Company
The Lalibela Construction P.L.C. was inaugurated in 2009 and started its function with an initial
capital of ETB 1,500.00 as it is illustrated in some of the documents in the Office. In this
Construction Company, participants (implementers) in a Kaizen team which undertakes its full
implementation package undertook the continual support for the sustainability of the
implementation last year.
As to the profile of the Lalibela Construction Enterprise, it is a private limited company with a
total of seven shareholders. In terms of their employment status, four of the shareholders are full-
time and seven of them were part-timers which are recruited for the purpose of running their
business properly.
In Lalibela Company, the cost of the machineries was ETB 84,700 in 2010. Furthermore, the
same Enterprise purchased the machinery by the price of ETB 17,000. This shows that Lalibela
Construction Enterprise totally spend ETB 117,000 for purchasing machineries in order to
improve its services. In addition, the owners of the Company rented machineries for other
business venture for the purpose of internal income generating activities. Currently, the total
capital of the Enterprise is ETB 200,000.
b. Ralcon Construction P. L. C.
The full implementation packages of Kaizen Programme have been performed by Ralcon
Construction P.L.C. in collaboration with the Woreda 3 and the TVET College of Kaizen team in

8. the Enterprises. Therefore, Ralcon Construction P.L.C. is a member of the Kaizen team which
has undertaken the full implementation packages. This Construction Company was inaugurated
in June 2004, got legal status from the concerned government body and started its actual
operation in the same year. Ralcon Construction Company was generally established by its 15
members as an association.
However, as there were problems related to lack of money, financial crisis and problem of
market, five of its members desperately gave it up. Then, Ralcon Construction Company once
again started its operation with an initial capital of ETB 3,500. As they have told to researcher
they got the money from individual members’ contribution for the purpose of running the work
of their business. The shareholders of the company own machineries which are estimated to
worth ETB 175,000.
Currently, in the Enterprise, there are 11 full-time workers (i.e. one of these employees was
employed as a permanent worker and the remaining, 10 are sole shareholders who have created a
job opportunity for one person). The Company has eight additional workers who are employed
on a contractual basis that are performing daily site work. Nowadays, the Ralcon Company has
hired five more workers based on its burdened demand of labour force. In the end, Ralcon
Company currently has no debt and is operating with a total capital of ETB 300,000.
Consequently, the shareholders of the Company have increased their assets due to Kaizen
implementation in their premises.
c. Beza Metal & Wood Work Enterprise
This Enterprise was inaugurated in 2004. It was established by seven shareholders, consisting of
four full-time workers and with an initial capital of ETB 5,000. Presently, there are also nine
part-time workers. Therefore, the Company created job opportunities for six individuals (3 males
and 3 females). But the number of permanent shareholders remains five and the total number of
workers in the Enterprise is 13. In general, the Company engages in the fields of metal and wood
work. The working capital of Beza Metal & Wood Work Enterprise is also ETB 200,000. In this
year, the Enterprise was closed by SMEs because the Sub City Office had claimed that Beza
Metal & Wood Work Enterprise was operating without getting registered as an association.