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TRAINING ON ORGANIZATIONAL PERFORMANCE AND EFFECTIVENESS (KAIZEN) IMPLEMENTATION IN THE INDUSTRY CHERKOS SUB CITY ADDIS ABABA CITY ADMINISTRATION ETHIOPIA Vocational Education and Management improvement for change BY: BERHANU TADESSE TAYE October 2014

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  1. 1. TRAINING ON ORGANIZATIONAL PERFORMANCE AND EFFECTIVENESS (KAIZEN) IMPLEMENTATION IN THE INDUSTRY CHERKOS SUB CITY ADDIS ABABA CITY ADMINISTRATION ETHIOPIA Vocational Education and Management improvement for change BY: BERHANU TADESSE TAYE October 2014
  2. 2. ü Training duration 15 days ü Methods of presentation, short lecture, individual exercises, group activities and discussions, project work, using energizer between the session and question and answer ü Target group executives, managers, supervisors, company and enterprises owners and also employees BY: Berhanu Tadesse Taye
  3. 3. Outline of Presentation ü Kaizen ü 5s and visual management ü Training within industry TWI ü Value streaming mapping ü Perceptual difference between western nations and Japan regarding job function: ü Western Approach ü Japanese Approach ü Top Management ü The roles of various level under KAIZEN ü Supervisors ü Middle Management ü Workers ü Organizational performance and effectiveness ü Problem solving ü Total productivity maintenance (TPM) ü Hoshin Kanri ü Cost of Quality (COQ) ü Benchmarking ü Suggestion system ü Lean six sigma overview ü Research investigation v BY: Berhanu Tadesse Taye
  4. 4. 1. Kaizen Kaizen strategy is the single most important concept in Japanese management the key to successful Japanese companies such as Toyota and other corporations. Based on Masaaki Imai's teachings on 'Kaizen' and 'Gemba Kaizen', this training prepared for managers and supervisors who are interested in developing a Kaizen culture in their workplace, offices etc, facilitating Kaizen events as a mechanism to improve operational efficiency. Concepts and benefits of Kaizen and how to manage Kaizen in the organization work areas to improve productivity and customer value. The key tools and techniques for running Kaizen activities on a daily basis, problem solving, conducting a Kaizen event as well as overcoming barriers to successful implementation. BY: Berhanu Tadesse Taye
  5. 5. 1.1. Kaizen mean •An integral part of a total quality approach is the Japanese concept of Kaizen, which literally means ‘improvement’ or is often interpreted as gradual progress or incremental change. •Analyses every part of a process down to the smallest detail; •Sees how every part of the process can be improved; •Looks at how employees’ actions, equipment and materials can be improved; and •Looks at ways of saving time and reducing waste. Kaizen was introduced in several Japanese organizations after the Second World War and is particularly associated with Toyota. BY: Berhanu Tadesse Taye
  6. 6. Cont’d According to Masaaki Imai, Kaizen is a Japanese term meaning ‘change for the better’. Applied to business organizations, it implies continuing improvement involving everyone that does not cost much. Kaizen organization culture is based on three super-ordinate principles: process and results; systematic thinking; and non-judgmental, non-blaming (Mullins, 2010). Kaizen strategy begins with customers’ needs concerning quality, cost and delivery and is founded on a people-oriented culture. BY: Berhanu Tadesse Taye
  7. 7. KAIZEN is based on the simple principle that, whatever the field in our lives, be it social life, working life, domestic life or even leisure life, we need continuous improvement in order to progress and advance as opposed to status quo and stagnancy. For such an effort we must have participation and involvement of one and all whether it is society or an enterprise. In industry, to stay there and compete, there should be an unending improvement and progress to provide leverage against other competitors. Management Function in KAIZEN, Management has two major functions in KAIZEN I) Create a conducive environment and encourages continuous improvement (technological, managerial and operative) and establishes standards. ii) Maintain the standards established BY: Berhanu Tadesse Taye
  8. 8. 2. 5S and Visual Management It is the first part of kaizen implementation, 5S workplace organization and good housekeeping is a set of basic management principles that are widely adopted in industries, trade, service providers and even in the office. As a foundation of Lean management, the key targets of 5S are improved workplace efficiency, morale and safety. At the end of this lesson trainees will be able know how to mobilize and align your management team to launch or improve a 5S and Visual Management implementation in your organization. The training covers 5S and Visual Management best practices, step by step implementation guidance, and the best ways to integrate 5S into the organization’s culture to achieve sustainable quality on customer satisfaction and staff self esteem. It includes the principles of 5S and Visual Management and the benefits, initial implementation, future refinement, self assessment as well as the infrastructure necessary to start and sustain a 5S initiative for your organization BY: Berhanu Tadesse Taye
  9. 9. 3. Training Within Industry (TWI) The application of kaizen takes place in the industry, Within Industry (TWI) is an integral part of Lean to reinforce the practice of Standard Work. Standardized work eliminates waste, improves process stability and provides a baseline for process improvement Program Objectives Job Relations (JR): To lead people by effectively and positively dealing with relationship problems between the supervisor and the employee, and preventing these problems from developing in the first place by maintaining positive employee relationships. Job Instruction (JI): To provide proper training and assuring this training is effective in helping people do their jobs correctly and efficiently. Job Methods (JM): To improve processes and the workplace by developing improvement proposals and implementing them to get improved results. Benefits Get more done with less machines and manpower Improve quality, reduce scrap by achieving standard work across workers and shifts, Reduce safety incidents, Decrease training time, especially for temporary workers Reduce labor hours Reduce grievances Transfer knowledge from a skilled workforce to an unskilled or green workforce BY: Berhanu Tadesse Taye
  10. 10. 4. Value Stream Mapping It is a lean management method for analyzing the current state and designing a future state for the series of events that take a product or services of events that take a product or service from its beginning through to the customer (Rother, Mike, Shook, John, 2003). Current state and future state value stream maps, and to identify opportunities to achieve the future state that have the greatest impacts on the business as well as customer value. The critical tool of value stream mapping and analysis helps your organization see waste and opportunities, and envision a Lean future state BY: Berhanu Tadesse Taye
  11. 11. PERCEPTUAL Difference between western nations and Japan regarding job function: Western Approach: * Importance to systems and procedures * Through systems an organizational level and functions are established. Focus is on control i.e. function within chance cause variation level. Take action when assignable causes creep in. * Changes are mainly through innovations. They are top and middle management responsibilities. This leads to two types of organizations. BY: Berhanu Tadesse Taye
  12. 12. cont’d a. Status quo organization: No attempt to improvement or innovation till market condition forces. b. Innovation centered organization: High technology industry. Eventually disappear after sometime. : Table 1. Western Approach BY: Berhanu Tadesse Taye
  13. 13. cont’d Japanese Approach: Technological and process innovation fall largely in the domain of top and middle management but improvements are an all pervasive activity from top to bottom with varying degrees. Table 2. Japanese Approach BY: Berhanu Tadesse Taye
  14. 14. Cont’d 6. The roles of various level under KAIZEN 1. Top Management: a. Establish Kaizen as a corporate policy. Workout strategies for implementation. b. Allocate resources, extend, support guidance and provide direction. c. Establish clear policies on KAIZEN and provide cross functional management goals for achieving KAIZEN. d. Evolve systems and procedures and organizational structures for promotion of KAIZEN. BY: Berhanu Tadesse Taye
  15. 15. Cont’d 2. Middle Management: a. Deploy and implement Kaizen goals directed by Top Management. Use KAIZEN in cross functional management activities. b. Effect improvements (KAIZEN) in functional capacity. c. Maintain and up grade existing standards through improvements. d. Provide assistance to workers to develop skills and acquire knowledge on problem solving tools. BY: Berhanu Tadesse Taye
  16. 16. Cont’d 3. Supervisors: a. Follow Kaizen in the functional role b. Sustain high morale of workers; keep continuous communication links; assist in KAIZEN. c. Involve in and support SGA like QC circles and also suggestion system. d. Provide assistance and involve workers in KAIZEN activities. BY: Berhanu Tadesse Taye
  17. 17. Cont’d 4. Workers a. Through small group activities and suggestion system involve in KAIZEN b. Be disciplined to follow standards. Think of KAIZEN in day to day activities. c. Concentrate on self-development continuously and increase capabilities for problem solving. BY: Berhanu Tadesse Taye
  18. 18. Cont’d Table 3. Perception of the below function category wise. As can be seen from the picture, as we go from the bottom, the improvement function increases and the top and middle management have a greater role in it. Similarly, as we come down from the top, the supervisors and workers have a greater role in maintenance function. BY: Berhanu Tadesse Taye
  19. 19. Organizational performance and effectiveness, Kaizen (continuous improvement) for small- and medium-sized enterprises, industry and companies select from the alternatives better allow to implement appropriate forms of organizational performance and effectiveness mandatory for their growth
  20. 20. A. Total Quality Management (TQM) After the end of this training trainees will learn and designed to help you, as a key manager, to understand how to approach quality as a company wide effort. You will learn how to make a commitment, plan and begin to implement systems for managing quality that integrates all the people, processes and continuous improvement initiatives together. Based on Philip Crosby's methodology, this training introduces participants to the Five Quality Principles and the Four Key Activities for Quality Management. Finally, the role of the manager will be examined so as to identify what you, personally, can do to plan the improvement process and communicate the need to change. To manage and improve quality, a long term commitment of time and effort will be required. For these efforts to succeed, every employee in the company must get involved. TQM is designed to involve every employee in your company in quality improvement efforts.
  21. 21. Cont’d one practical approach to improved organizational performance and effectiveness is the concept of the Japanese inspired total quality management (TQM). There are numerous definitions of TQM. These are generally expressed in terms of a way of life for an organization as a whole, committed to total customer satisfaction through a continuous process of improvement and the contribution and involvement of people according to MULLINES (2010). Laurie J. Mullins is lecturer in Portsmouth University he wrote a book Management and organizational Behavior, the TQM information can get in the themes of organizational performance and effectiveness.
  22. 22. Cont’d A major influence on the establishment and development of TQM was the work of Deming, who emphasized the importance of visionary leadership and the responsibility of top management for initiating change. A mathematician by training, he was interested in statistical measurement of industrial processes and attempted to persuade the American manufacturing industry to improve quality, and to create constancy of purpose for improvement of products and service.
  23. 23. B. Six Sigma Another quality initiative programme for change and continuous improvement is the concept of Six Sigma, based on the use of statistical analysis and computer simulation for the definition, measurement and reduction of defects and waste (Sigma is the Greek letter used as a statistical term to denote standard deviation or variations from the mean). The principle of Six Sigma is the establishment of optimum specifications for processes and products, and an improvement in quality through a continuous reduction of variations that result in defects. If you can measure the number of defects in a process you can then attempt systematically to eliminate them. Each level of sigma (six being the highest) indicates a reduction in the extent of defects. A true Six Sigma quality organization implies a defect rate of only 3.4 defects per million opportunities for each process or product. The aim is not only to reduce existing variations but also to design new processes and products so that there is as little variation as possible.
  24. 24. C. Business Process Re-Engineering (BPR) Another concept to have received much attention in recent years is that of business process re-engineering (BPR). The pioneers of BPR are generally acknowledged as Hammer and Champy, who define it as: The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.
  25. 25. Cont’d Their approach has two principal features: (i) a completely fresh start, or blank sheet of paper approach, to organizational redesign, ignoring past history or present structure or practices, and (ii) a process-orientation approach to organizational analysis centered around a horizontal review of all activities involved in the process, or set of activities, in the delivery of a product or service to the customer. BPR is concerned wit the total restructuring of the organization. It starts from how one would like the organization to be and works backward in an effort to achieve real gains in organizational performance and delivery of products or services.
  26. 26. Cont’d Relationship with TQM What is the relationship between BPR and TQM? Both are concerned with organizational processes that lead to customer satisfaction. However, while TQM tends to seek continuous incremental improvement within a specific framework, BPR seeks major advances in performance from a horizontal, cross- functional anatomy of performance perspective. It involves a challenge to traditional structure, relationships, boundaries or barriers. TQM requires a supportive environment and relies on teamwork, participation and commitment BPR takes a more strategic approach and needs to be driven, at least initially, by top management. Some commentators appear to suggest that TQM has been taken over by BPR although others argue that it can be seen as complementary to and/or a forerunner for BPR.
  27. 27. Decline of Re-Engineering In a discussion on outdated motivational patterns utilized to maintain role performance in organizations. Risk and Pena link this with what they maintain is a failure in re-engineering. Although the originators of re-engineering insisted it was about rethinking work not eliminating jobs, managers equated re-engineering with downsizing. Despite early successes, with each passing year fewer and fewer projects appeared to be producing the desired results and doubts have surfaced about the effectiveness of re-engineering.
  28. 28. Cont’d Reis and Pena suggest that theories of motivation might offer an important observation and point to the decline in re-engineering based on its lack of concern for people and its takeover by managers wishing to downsize. In a subsequent publication, Hammer restates that BPR is just as valid today but acknowledges that in the light of experience re-engineering needs to be complemented with a range of other changes, a focus on corporate objectives and building collaborative partnership with suppliers.
  29. 29. Cont’d Stern, however suggests that downsizing and restructurings of immense size were justified by BPR and: The internet-inspired, emotionally intelligent ‘new economy’ of the late 1990s was the great reaction against BPR’s brutalism. All pool tables and skateboards, the new economy was great fun while it lasted-which was not very long. Someone forgot to tell the geeks about the iron laws of business-those boring old things such as profits and cash. Critical Reflection “Effective organizational performance is about a shared vision, inspired leadership and the quality of its managers. Concepts such as total quality management or techniques such as business process re-engineering are just passing fads that offer little real long-term value to the business organization.” according to (Mullins, 2010)
  30. 30. D. Lean Thinking for Transformational Leadership Toyota Production System) is an organization wide continuous improvement initiative that is gaining popularity in the manufacturing, process and service industries today. At the end of this lesson trainees will gain an understanding of productivity loss from the three major sources of waste: •value added work, •Process variability and Process/System inflexibility (bottlenecks) In addition, •Lean principles and tools can be applied to eliminate non value added work, create stable processes and mistake proof operations so as to significantly improve productivity and increase value to customers. As a senior executive,
  31. 31. Cont’d Lean Leader and create the right conditions to start and sustain a successful Lean program. Recommended audience senior executives, managers, project champions or project sponsors of manufacturing and service industries who are interested in getting a “big picture” perspective of Lean before embarking on the detailed planning and implementation’
  32. 32. Cont’d The important role for management in maintenance function is to establish the standards, policies and procedures so that they are followed by everybody and they could be monitored and reviewed. Management also has the responsibility to educate and train the people to enable them to follow the standards. Thus, in the Japanese perception, one action follows the other in succession.
  33. 33. cont’d. Table, 4. The point to be noted here is that the workmen, though most of the time are expected to maintain established standards by religiously following them, can also suggest improvements.
  34. 34. Cont’d The important role for management in maintenance function is to establish the standards, policies and procedures so that they are followed by everybody and they could be monitored and reviewed. Management also has the responsibility to educate and train the people to enable them to follow the standards. Thus, in the Japanese perception, one action follows the other in succession.
  35. 35. ?á Customer orientation ?£ TQC (total quality control) ?= Robotics ? QC circles ?- Suggestion system ?á Automation ?z Discipline in the workplace ?-TPM (total productive maintenance) ?á Kamban ?_ Quality improvement ?ù Zero defects ?Æ Small-group activities ?¿ Cooperative labor- management relations ?Œ Productivity improvement ?¿ New-product development Figure 1. The Kaizen Umbrella KAIZEN Source: Kaizen Umbrella courtesy of (Imai, 1986)
  36. 36. v PDCA Problem Solving How do you solve business problems that are cross-functional and there is not a single subject matter expert who has sufficient knowledge about the real causes of the problem? How do you break through the functional silos to obtain a detailed understanding of the current processes and then develop a future state process that involves all departments and gives you the true nature of the problem to be solved? In this training, you will learn the structured Plan-Do-Check-Act (PDCA) approach to problem solving. The PDCA problem solving process is a technique that is used by Toyota to identify problems, analyze root causes and generate solutions. When combined with the basic quality ("QC") tools, real causes to business problems can be identified and effective solutions can be put in place to prevent similar problems from recurring in the future. For all enterprises which want to facilitating, leading or participating in a problem solving project.
  37. 37. v A3 Problem Solving After the end of these training trainees will learn the structured problem solving approach that uses a tool called the A3 Problem Solving Report. For example the A3 report is a tool that Toyota uses to propose solutions to problems, give status reports on ongoing projects, and report results of information gathering activity. The term "A3" is derived from the paper size used for the report, which is the metric equivalent to the 11" x 17" paper. You will learn the steps to proceed from problem identification to resolution in a fashion that fosters learning, collaboration, and personal development. The problem solving team records the results of investigation and planning in a concise, two page document (the A3 Report) that facilitates knowledge sharing and collaboration.
  38. 38. innovation Learn Do planAction Check P D Figure 3. Complementary Relationship between BPR and Kaizen Figure 3. Complementary Relationship between BPR and Kaizen Source: Takanashi (2006, p.71).
  39. 39. E. Total Productive Maintenance (TPM) Total Productive Maintenance (TPM), is a company wide initiative for maximizing the effectiveness of equipment. The goal of the TPM program is to significantly increase labor and capital productivity while, at the same time, increasing employee morale and job satisfaction. TPM brings maintenance into focus as a necessary and vitally important part of the business. Targeted at all levels of the organization, TPM and its 8 pillars provide the necessary process and tools to achieve zero defects, zero breakdowns and zero accidents. •Understand the concept and management philosophy of TPM as a foundation for Lean Transformation Learn the 8 pillars of TPM activities, TPM implementation strategy, roadmap and step by step approach, Learn the TPM tools and be able to identify and eliminate loss through TPM implementation. Understand the Autonomous Maintenance process and how to improve equipment reliability. Understand the roles of a TPM implementation organization and the critical success factors.
  40. 40. F. Hoshin Kanri Hoshin Kanri. is a powerful, systematic Strategic Planning methodology that uses a Plan- Do-Check-Act cycle to create goals, choose control measures and link daily control activities to the enterprises strategy. It involves a "catch ball" as the driving force of alignment, clarification and employee involvement. The methodology has been used by some of the world’s most successful companies such as Toyota, Hewlett- Packard and Bank of America as a systematic approach to capture and strengthen strategic goals and develop the means to bring these into reality. The successful achievement of the company shared goal
  41. 41. G, Cost of Quality (COQ) As a key factor of competitiveness, cost has to be managed all the time, not only in times of economic downturn. The Cost of Quality (COQ) program fits well into any operational excellence initiative, including Lean, Six Sigma and TQM. The COQ methodology approach to quantifying the financial impact of the Cost of Non - Conformance (CONC) and Cost of Conformance (COC), lifting the problem solving focus from quick fix to prevention, and prioritizing quality improvement opportunities based on the expected financial return
  42. 42. H, Benchmarking Benchmarking is the process of continually searching for the best methods, practices and processes, and either adopting or adapting their good features and implementing them to become the “best of the best.”To become the best in class, organizations need to implement the right processes to get there. benchmarking, various types of benchmarking, identification of what to benchmark, and provides a detailed step by step guidance on how to systematically carry out a benchmarking project based on the world renowned benchmarking model. It also includes practical tips on the benchmarking process, benchmarking etiquettes and the critical success factors today's competitive environment, organizations must delight their customers and relentlessly look for new ways to exceed their expectations. To accomplish this, Kaizen and Six Sigma Quality has to become a part of an organization’s culture.
  43. 43. Cont’d Six sigma provides a rigorous and structured approach to help organizations improve their performance in meeting their customers' requirements. This training introduces you to the Kaizen and Six Sigma philosophy, methodology and tools and the infrastructure for successful Six Sigma deployment without too much of statistical jargon. It includes applications of Six Sigma in manufacturing, process and service industries, step by step DMAIC improvement approach, phase description and deliverables, and roles of the Leadership team, Champion, Process Owner,
  44. 44. I, Suggestion System Employees have lots of ideas, but how do you listen to them? How do you harvest their ideas formally and informally, and bubble up the good ones? How do you generate good quality ideas and sustain the flow of employee's suggestions to increase customer satisfaction, improve bottom line and enhance employee motivation and enthusiasm? At the end of this training the trainees will be able to know about the characteristics of a successful staff suggestion system and establish an infrastructure to implement and sustain an employee suggestion system that provides a constant flow of quality ideas. individual exercises, group activities and discussions, plan and launch a suggestion system Acquire skills in setting up a management infrastructure to generate ideas, capture quality ideas, evaluate ideas and sustain a constant flow of ideas. Learn how to develop employees to identify opportunities for improvement and write good quality ideas. Develop supervisors and managers to guide employees in writing suggestions. Learn how to recognize and reward participation Program, Outline Introduction & Basic Concepts• Scope of Suggestions• Goals of a Suggestion System• Planning & Launching a Suggestion System•
  45. 45. Cont’d Roles & Responsibilities of the Suggestions Committee, Suggestions Office & Department Representatives• The Suggestions Process• Evaluation & Award Systems• How to Develop Good Quality Suggestions• How to Sustain a Suggestion System Description In today's competitive environment, organizations must delight their customers and relentlessly look for new ways to exceed their expectations. To accomplish this, Six Sigma Quality has to become a part of an organization’s culture. Six Sigma provides a rigorous and structured approach to help organizations improve their performance in meeting their customers' requirements. The training introduces you to the Kaizen and Six Sigma philosophy, methodology and tools and the infrastructure for successful Six Sigma deployment without too much of statistical jargon. It includes applications of Kaizen and Six Sigma in manufacturing, process and service industries, step by step DMAIC improvement approach, phase description and deliverables, and roles of the Leadership team, Champion, Process Owner.
  46. 46. 14. Kaizen Lean Six Sigma Overview Lean Six Sigma provides a rigorous and structured approach to help organizations improve their performance in meeting their customers' requirements. This training introduces you to the Kaizen, Lean, Six Sigma philosophy, tools, DMAIC structured problem solving and the infrastructure for successful Lean Six Sigma deployment. It emphasizes how to lead a Successful Kaizen and Lean Six Sigma deployment.
  47. 47. 15. Delivering Service Excellence After the end of this training the trainees will be able to know the approachs of customer satisfaction, manage your own emotions and deliver professional and personalized service, and treat customers as unique individuals with different needs and expectations. It includes the techniques and skills to find out and respond to each customer's needs and expectations, reduce customer's negative feelings and heighten customer's positive feelings towards your organization. Finally, you will learn how to satisfy customers in comfortable and difficult conditions as well as apply the five A's of service recovery
  48. 48. 16. About Operational Excellence Consulting Trained of consulting groups around the world their advertisement presented as follows, who we are Operational Excellence Consulting helps organizations to work smarter and grow faster. The objective of the training is always evolving to respond to industry trends and management focus, and we combine our deep technical skills in response to our clients' changing needs. Over time, what we do remain closely linked with helping our clients improve the way they operate; innovate and grow; reduce costs; manage risks; leverage talent; and change the way they do business. One of our unique strengths is going beyond a tools focused approach to seamlessly integrate people, processes, technology and continuous improvement initiatives to suit the specific needs and situations of our clients What we do, we provide corporate learning programs and management advisory services to assist our clients to achieve breakthrough in business performance and effectiveness. The aim of the training is to support our clients in designing, managing and executing lasting beneficial change. . Website: www.oeconsulting.com.sg,
  49. 49. Term Explanation 5S 5S is a philosophy and checklist for good housekeeping to achieve greater order, efficiency and discipline in the workplace. It is derived from the Japanese words Seiri (Sort), Seiton (Straighten), Seiso (Shine), Seiketsu (Systematize), and Shitsuke (Standardize/Self-Discipline). There are also different English renditions. Suggestion System A Suggestion System is the method by which the ideas and suggestions of employees are communicated upwards through the management hierarchy to achieve cost savings or improve product quality, workplace efficiency, customer service, or working conditions. Examples range from simply placing suggestion boxes in common areas, to implementing formal programs with committees reviewing ideas and rewards given for successful adoption of those ideas. Quality Control Circle (QCC) QCC is a small group of workers who collectively find a problem, discuss alternative remedies, and propose a solution. QCCs voluntarily perform improvement activities within the workplace, as part of a company-wide pro- gram of mutual education, quality control, self-development and productivity improvement. Total Quality Management (TQM) TQM represents a number of management practices, philosophies and methods to improve the way an organization does business, makes its prod- ucts, and interacts with its employees and customers. QCC activities func- tion as an integral part of TQM. Historically, statistical quality control was born in the US, and Japan imported and developed that concept as Total Quality Control (TQC) in the 1960-70s, which evolved as TQM in the late 80s. Toyota Production System (TPS) TPS is the philosophy which organizes manufacturing and logistics at Toy- ota, including interaction with suppliers and customers. It focuses on the elimination of waste and defects at all points of production including inputs, process and final output (delivery). The term “Lean Production System” can be used interchangeably. Just-In-Time (JIT) System JIT, a part of TPS, is a production system aimed at eliminating non-value- adding activities of all kinds and achieving a lean production system flexible enough to accommodate fluctuations in customer orders. Kamban System Kamban refers to a communication tool in the JIT production and inventory control system, developed at Toyota. A kamban (signboard) is attached to a given number of parts and products in the production line, instructing the delivery of a given quantity. When the parts have all been used, the kamban is returned to its origin where it becomes an order to produce more.
  50. 50. Kaizen Innovation 1. Effect Long-term and long-lasting but undra- matic Short-term but dramatic 2. Pace Small steps Big steps 3. Timeframe Continuous and incremental Intermittent and non-incremental 4. Change Gradual and constant Abrupt and volatile 5. Involvement Everybody Select few ìchampionsî 6. Approach Collectivism, group efforts, systems approach Rugged individualism, individual ideas and efforts 7. Mode Maintenance and improvement Scrap and build 8. Spark Conventional know-how and state of the art Technological breakthroughs, new inventions, new theories 9 Practical requirements Requires little investment but great ef- fort to maintain it Requires large investment but little ef- fort to maintain it 10. Effort orientation People Technology 11. Evaluation criteria Process and efforts for better results Results and profits 12. Advantage Works well in slow-growth economy Better suited to fast-growth economy Table 6. Features of Kaizen and InnovationSource: Imai (1986, p.25). 6 Clark et al. (2009) describes it as the difference between kaikaku (reform, big change) and kaizen (small incremental changes).
  51. 51. Organized PP implementation teams Number of team members from JICA, counterpart, PP tar- get companies Electrical & electronic sector team Food processing sector team JICA consultant team Team leader Member in charge of institution building Member in charge of work coordination Electrical and electronic consultants: 2 Food processing consultants: 2 7 Counter- part team UGPQ director Member in charge of institution building Member in charge of work coordination Electrical and electronic technical staff: 5 Food processing technical staff: 5 13 PP target companies team Top managers Production managers / Quality controllers Employees in charge of production Production managers / Quality controllers Employees in charge of production Numbers varied depending on the company Table, 7 . Pilot Project Implementation Team 75 The Japanese word “kaizen” has come to be internationally used in the area of production management. In English, this is referred to as continuous improvement. panies was organized. Table 4-2 shows the composition of the teams organized in the target sec- tors.
  52. 52. ?á Improvement Technique Contents of Improvement Technique 1. Layout improvement PQ analysis / Transfer distance analysis / Process proximity analysis78 2. Improvement of work human-hours balance Time research (stopwatch method) / Operation research 3. Shortening of setup times Single setup (SMED) method / Vide analysis79 4. QCCs80 Analysis using 7 tools of QC / 7 areas of waste elimination81 5. 5S82 Tag method / Color display / Visual control / Dividing lines Table. 8, Source: Compiled from the Master Plan Study for Quality/Productivity Improvement in the Republic of Tunisia (Final Report, July 2008), available from JICA homepage (http://www.jica.go.jp/). Types of Improvement (Kaizen) Techniques that were Acquired in the PP and can be Autonomously Used by Counterparts in Future
  53. 53. - Setting of model ?U PP implementation plan - A/P and M/P compilation ?A Survey of all industrial sectors company selection implementation (company - Final report (manual Nationwide deployment (all (20 companies) criteria diagnosis, quality/productivity completion) industries and all regions) of ?, Survey of the PP target sectors improvement guidance, draft - Preparation of video of quality/productivit y improvement - Electrical and electronic - Selection of model manual utilization) successful cases by the counterparts themselves (approx. 30 companies) companies - Around 15 electrical and - Trainers’ training - Food processing electronic companies (OJT/WS, etc.) (approx. 30 companies) - Draft manual - Around 15 food processing - Training in Japan ?ì Survey of policies, measures preparation companies and related legislation ?= Draft final report preparation ?+ ? Survey of current conditions of support systems and agencies Survey of trends of other - Draft PP implementation plan preparation (including draft A/P and M/P, etc.) Establishment of dissemination setup by the Tunisia side (systems, Donors organization, budget) Table. 9. Note: -PP: Pilot Project, M/P: Master Plan, A/P: Action Plan, OJT: On the Job Training, WS: Workshop -This figure was prepared at the start of the project (July 2006). Accordingly, the numbers of companies in each PP target sector and companies targeted in the PP
  54. 54. Start up stage Transition stage Independent Agency Developmental stage Government agency / Ministry Stages of development
  55. 55. What do you observe from this picture try to explain and clearly figure it out your impression according to their orders respectively. Figure 5
  56. 56. Source from BBC Figure 5 weaving Ethiopian cultural clothe called “Sheme, netela, Gabi”
  57. 57. Office performance before and after implementation of kaizen Figure 7
  58. 58. Dust bin before and after implementation of kaizen Figure 8
  59. 59. Archive performance before and after implementation of kaizen Figure 9
  60. 60. Medical store materials performance before and after implementation of kaizen Medical store materials performance before and after implementation of kaizen Figure 10
  61. 61. No. Item SMEs En. TVET Stakeholders (MTM) office Total F % F % F % F % 1 Sex Male 38 87.5 26 92.9 11 91.7 75 93.8 Female 3 12.5 1 7.1 1 1 5 6.2 Total 41 100 27 100 12 100 80 100 2 Service 1 – 5 7 16.7 19 71.4 4 33.3 30 37.4 Year 6 – 10 6 12.5 8 28.6 3 25 17 21.3 11 – 15 12 29.2 0 0 5 41.7 17 21.3 16 and above 16 41.6 0 0 16 20.0 Total 41 100 27 100 12 100 80 100 3 Level of Education Below certificate 17 33.3 17 21.3 Certificate 10 25 10 12.5 Diploma 8 20.8 8 10.0 Degree 5 16.7 25 92.9 12 100 42 52.5 MA/MSC 1 4.2 2 7.1 3 3.7 Total 41 100 27 100 12 100 80 100. 0 Table. 10 Demographic Characteristics of the Respondents
  62. 62. Demographic Characteristics of the Respondents Research on SMEs and stakeholders who implement kaizen 1.The first analysis of data involves profiling the background characteristics of the respondents drawn from the six sampled small and micro enterprises. Table 10 indicates the demographic characteristics of the respondents. A total of 75 (93.8%) of the respondents were males and 5 (6.2%) were females. The majority of the respondents are males. Apart from the social/cultural influence and restriction, the prevailing low level of technology by manufacturing related to sectors, which involves much more physical work, might have contributed to the less number of female workers in the study. Notwithstanding, efforts should be made to encourage female workers, as well as possible means need to be sought and put in place for better technology utilization, including love of hard work.
  63. 63. Cont’d On the other hand, more than half of the respondents, 30 (37.4%) were found to have low level of service years (1 – 5 years), while the remaining, 34 (42.6%) had 6 up to 15 years of service. Thus, the majority of the enterprises which have been implementing the kaizen strategy are less-experienced business firms. It is advisable for the kaizen implementers to choose those enterprises which have been involved in the business for at least ten years in order to counsel those firms to implement the kaizen. Regarding their educational status, a significant proportion of the respondents, 42 (52.5%) was found to hold first degree. However, a total of 17 (21.3%) of the respondents were below certificate in their educational status which appeared to be below the recommended standard proposed by the TEVT Agency Office in Addis Ababa. The findings of the study appear to be good on the part of the participants in the study in terms of their educational status. Moreover, the two enterprises (i.e. ATW Engineering and Dobbe Enterprises) were exemplary Organizations which could be compared with other enterprises in terms of the importance of education in answering the organizational performance and effectiveness in the manufacturing sector. The educational background of the respondents further indicates that a large number of them about sixty-three percent) were highly trained. This significant proportion of the respondents was diploma and/or degree holders (that is, a total of years of schooling which ranges from 13 to 18).
  64. 64. 8.8% 37.5%53.7% Manager and Owner Coordinator and Trainer Trainee/Emplo yee Figure 11
  65. 65. Figure, 12, depicts most of the respondents held job positions, like coordinators/trainers and technicians/employees. A total of 7 (8.8%) of respondent were top-level managers and owners of the enterprises, whereas 30 (37.5%) were coordinators and trainers, and 43 (53.7%) respondents were technicians and employees. About three- fourth (91.2%) of the total participants in the research were found to be coordinators, trainers and trainees/technicians/employees, while one-fourth (8.8%) were members of the management staff – managers and owners. Thus, the majority of people in the SMEs in Woreda 3 Administration of Gulele Sub-city are holding technical positions – trainers and trainees. The job positions are appropriate to run the manufacturing businesses.
  66. 66. Figure. 11.
  67. 67. Overall Success of Enterprises in Kaizen Implementation, First phase of kaizen implementation stimulating the respondents by asking the above questions. The above figure. 11. Indicate that there are generally overall successes of enterprises in the implementation of kaizen strategy. Being in the initial stage of the kaizen implementation, only (36.0%) of the respondents felt that kaizen contributed reduced lead time, where as six percent of to some types of quality improvement, five percent of the respondent replied customer satisfaction, (45%) of the respondent replied that after implementation reduction of cost and lead time. Thirty-two percent of the respondents also felt that the involvement of the companies in implementation of kaizen increased staffs’ contribution and involvement in decision-making also reduced work force in terms exerting energy which mean time factor, but they were of the opinion that top management didn’t seem to be a regular participant in the team work. In addition, after going through the kaizen training and implementation stage, (13%) of the respondents believed that kaizen would likely contribute increased staff motivation.
  68. 68. Productivity: 5 nets per min. With 2 workers Selection of Better Means to Change of Current Method for achieving your objective. Agriculture performance before and after implementation of kaizen How far team work influence the work area Figure 11
  69. 69. Figure 12orange Packing (1) It is difficult to open net and put oranges in the net at the same time. Figure 12
  70. 70. Figure 13Productivity: 1 net Permian. Figure 13
  71. 71. Figure 14 Orange Packing (2) cooperation increases work efficiency Figure 14
  72. 72. Figure 15 Productivity: 5 nets per minProductivity: 5 nets per min. With 1 worker Figure 15
  73. 73. 1.Overall Success of Enterprises in Kaizen Implementation Figure, 17. Overall Success of Enterprises in Kaizen Implementation
  74. 74. Cont’d Figure 17 indicates that there are generally overall successes of the Enterprises in the implementation of Kaizen Policy and Strategy. Being in the initial stage of the kaizen implementation, only (25.0%) of the respondents felt that kaizen contributed to reduced lead time, whereas six percent of them were successful ones to some types of quality improvement, and five percent of the respondents replied that their customers were satisfied due to the implementation of kaizen. Those findings of the study imply that too much work is necessary creating awareness in terms of quality since the percentage were relatively lower and also most of the respondent not work for the purposes of customers’ satisfaction. awareness creation on the part of the members of the management body in the enterprises is mandatory because of customers satisfaction is necessary for the sustainability and survival of every enterprises and mach more explanation from the above fingers.

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