ASSESSMENT OF THE IMPACT OF KAIZEN

IMPLEMENTATION ON ENTERPRISES PROFITABILITY

IN THE CASE OF BOLE SUB CITY IN MEDIUM
MANUFACTURING INDUSTRIES.

BY: REDIET BEGASHAW ID:22310

ADVISOR: ABEBE GETAHUN(PHD. cand)

APRIL 2024
Presentation Outline
1. Introduction
 Background study and statement of the problem
 Objective of study
 Research question
 Scope and significance of the study

3. Methodology
 Description of study
 Research Design
 Research Method
 Sampling procedure
 Research Instrument
 Type and data source
 Definition of variables
 Validity and Reliability
INTRODUCTION
Introduction

 Kaizen means continuous improvement. The word implies improvement that involves
everyone- both managers and workers- and requires relatively little expense.
 The principles and approaches of Kaizen have raised interests among researches as it enhances
the productivity of companies, produce quality products and services with minimum efforts
and resources deployed.
 Although the philosophy of Kaizen is mostly applicable manufacturing areas, currently most
service sectors are engaged in deploying kaizen as their leading quality management tool.
Cont…

 The background of kaizen in Ethiopia trace back to the agreement between Ethiopia and Japan
in 2009 for the pilot project of 30 manufacturing industries with technical assistance from
JICA(Japan International Cooperation Agency).
 After the effectiveness of the pilot project on those selected manufacturing industries, for
further transfer and implementation of the philosophy Kaizen Institute of Ethiopia (EKI) is
established in 2004 Ethiopian Calendar.
 The Ethiopia Kaizen Institute enthusiastically launched the Kaizen movement in large-scale
sugar, textile, and leather companies using trained consultants. Highly promising quantitative
and qualitative changes were recorded.
Cont…

 The greatest interest among many organizations currently is the need to improve performance.
In this regard, the ability of an organization to improve performance is largely predicted upon
the organizations interactions with effective and productive culture
 In order to increase the ability for organizational culture to be effective towards enhancing
organizational performance, we need to look at several interrelated dynamics.
 This includes how employees make the connection between what they do, and how they do it:
the clarity of understanding on principles and organizational values; understanding the locus
between individual behavior and performance; and how effective planning impacts
performance.
Statement of the problem

 Different countries in the world have applied Kaizen Management techniques with various
types of practices and encountered multi-dimensional challenges.
 Currently, Ethiopia is applying kaizen implementations for governmental and public
associations so as to develop and improve developmental ethics manufacturing sector.
 The typical problems that Medium Manufacturing Industries (MMIs)mainly textile and
garment enterprises facing a problem like lack of skilled and educated man power, limited
efficiency and capacity utilization in the enterprises.
 And that leads to poor product quality and productivity, poor product design and development,
poor market strategies and segments, high cost of production, high inventories, long production
lead time, incapability of satisfying the continuous growing number of customers who have
demand for textile and garment products.
Cont…

 This is because; most of the activities taken for quality and productivity Improvement are
through top-down approaches without the best management skills.
 Due to this reason the medium manufacturing industries faced different problems to enhance
their profitability in domestic and global market.
 My research will focus on the following gaps: The factors that influence the effect of kaizen
implementation on profit productivity in Addis Ababa city specifically at Bole sub-City
medium manufacturing industries.
 Enterprises are poor organization structure, backward organization culture and, lack of
employee’s attitude
 Thus, the research tries to find out whether these factors have been taken into consideration,
what outcome results the Factory has gained and what challenges it has encountered through
the process and has identified the lessons that can be drawn for other organizations to learn.
Objectives

General Objective
 The general objective of the study is to assess the effect/impact of kaizen implementation on
firms/enterprises profitability in the case of bole sub city in medium manufacturing industries.
Specific Objectives
 1. How do we assess the main challenges of Kaizen implementation its implications on
profitability?
 2. What are the factors that positively and negatively influence Kaizen Implementation?
 3. What are the gaps between employee’s attitude and Kaizen implementation on profitability?
Research Questions

1. How to assess the main challenges of Kaizen implementation on profitability?

2. What are factors that influence kaizen Implementation?
3. What are the gaps between the employee attitude and Kaizen implementation?

Hypothesis of the Study

 H1: There is significant positive relationship between organizational culture and effectiveness
of Kaizen implementation.
 H2: There is significant positive relationship between organization structure and effectiveness
of Kaizen implementation.
 H3: There is significant positive relationship between employee attitude and effectiveness of
Kaizen implementation.
Scope of the Study

 The scope of the study is focused on bole sub city medium manufacturing industries. Medium
Manufacturing Industries to assess impact of kaizen implementation, kaizen implementation
process toward kaizen implementation.
 The target populations for the study are managers, supervisors, employees working in MMI’s
textile and garment enterprises and knowledgeable persons about kaizen practice on
manufacturing sector.
Significance of the study
 It may activate and initiate the attention of the concerned authorities in particular and the
society.
 it may increase efficiency and effectiveness at the organizational level,
 It may be used as a secondary data in due course of further research.
RESEARCH METHODOLOGY
Cont…

Description of study
 The district is located in the southeastern suburb of the city. It borders with the districts of Yeka, Kirkos, Nifas
Silk-Lafto, Akaki Kaliti and lemi kura.
Research Design
 Explanatory research design was used in line with the objective of the study which involved observing and
describing the subject without influencing it in any way.
 Quantitative method was used to generate numerical data to ensure high levels of reliability of gathered data,
and qualitative method to generate non-numerical data in order to get in-depth information about the variables.
 The study engaged a descriptive, correlation and regression research designs. It is descriptive because it used
descriptive statistics to describe the variables of the study; and it engaged correlation design to establish the
relationship between Independent Variables and Dependent Variable at Bole Sub City textile and garment
(MMI’s).
 For this study, the researcher applied quantitative (questioner) and qualitative and were discussed in the
following sub-sections.
Cont…

Research Method
 I have decided to use mixed methods design as it is a method that includes both qualitative and
quantitative data collection.
Population of the study
 The medium manufacturing industries has 117 industries in bole sub city. From 117 industries
the researcher has selected five of the industries who have knowledge and implemented in
kaizen.
 Using purposive sampling, the study includes all relevant populations within these five selected
industries, encompassing managers, supervisors, and individual workers.
 This approach indicates a targeted investigation into the understanding, implementation, and
impact of Kaizen within these specific medium manufacturing industries, involving key
stakeholders at different levels within the organizations to gather comprehensive insights into
the challenges and achievements of Kaizen implementation.
Cont…

Sample size
 The researcher tried to sow the sample size using by using (slovin’s, 1966) probability sampling formula
by taking population of 174.

 Where n is the sample size,

 N is the population size,
 And e is the level of precision or sampling error = (0.05)
 N = 174/1+174(0.05)2

= 120
Cont…

Sampling Procedure
 The study uses simple random sampling method in selecting the respondents in the study.
Random sampling is used because of its simplicity and it gives equal chance to each person to
be selected.
Research Instrument
 In this study, data collect using semi structured questionnaire that is administer to kaizen staff
and a face to face interview is conduct to the key people to get depth information on the matter.
 A questionnaire design according to Likert Scale: “Strongly disagree (1), Disagree (2), Agree
(3) and strongly agree (4)” to explore the key variables.
 The questionnaire comprises of closed questions, Attitude questions and open questions.
Cont…
Type and data source
 There are two types of data sources.
 1. Primary sources of Data
 Questionnaires and
 Interview from respondents who are working in Bole sub city.

 2. Secondary Data Sources

 Documentary analysis information from country reports, journals, internet sources, research findings.

Definition of Variables
 Dependent variable: - Effectiveness of Kaizen Implementation. The researcher uses the summative score techniques for
the questions in each factor for each participant. This is because Likertscale is the common summative
 Independent variables: -This study focuses on three independent variables that might have an impact on the effectiveness
of kaizen implementation. Those predicted variables investigate in this research are:
 Organizational Structure,
 Organizational Culture and
 employee’s attitude
Cont…

Validity and Reliability

 According to MacMillan and Schumacher (2001:407), validity is the degree to which the
interpretations and concepts have mutual meanings between the participants and the researcher.
 According to Silverman (2004:285), Reliability is the degree to which the findings of the
research.
Methods of Data Analysis
 Data collected were subjected using a statistical analysis software called Statistical Package for
Social Science (SPSS Version-20) to assess kaizen implementation towards profitability of the
enterprises.
Cont…

Ethical issues to be considered

 So as to get the required result during records series and interpretation process the researcher
tried to make it practical and free from bias as much as possible.
 Furthermore the researcher made an effort to persuade the participant of the survey about the
importance and cause of the study that help Bole sub city administration, labor union,
employees and administration in assessing the position and contribution of labor union in the
industrial relation and promised that the agency personal records that used to be being
mentioned will be saved confidential.
THANK YOU