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    HLF Kaizen

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    Henry Duna
    The KAIZEN Quality and Productivity Improvement project in Ethiopia piloted the implementation of KAIZEN activities in 30 manufacturing companies over 2 years. Key results included cost savings up to $500,000 per company, increased productivity, reduced defects and lead times, and improved workplace organization and employee participation. The project also developed the skills of staff at the KAIZEN Unit of the Ministry of Industry, with over half becoming competent to provide KAIZEN consultancy services to other companies. Overall the pilot demonstrated the potential of KAIZEN to significantly improve company performance in Ethiopia.

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    HLF Kaizen

    Uploaded by

    Henry Duna
    52 views9 pages
    The KAIZEN Quality and Productivity Improvement project in Ethiopia piloted the implementation of KAIZEN activities in 30 manufacturing companies over 2 years. Key results included cost savings up to $500,000 per company, increased productivity, reduced defects and lead times, and improved workplace organization and employee participation. The project also developed the skills of staff at the KAIZEN Unit of the Ministry of Industry, with over half becoming competent to provide KAIZEN consultancy services to other companies. Overall the pilot demonstrated the potential of KAIZEN to significantly improve company performance in Ethiopia.

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    HLF Kaizen PPT

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    The KAIZEN Quality and Productivity Improvement project in Ethiopia piloted the implementation of KAIZEN activities in 30 manufacturing companies over 2 years. Key results included cost savings up to $500,000 per company, increased productivity, reduced defects and lead times, and improved workplace organization and employee participation. The project also developed the skills of staff at the KAIZEN Unit of the Ministry of Industry, with over half becoming competent to provide KAIZEN consultancy services to other companies. Overall the pilot demonstrated the potential of KAIZEN to significantly improve company performance in Ethiopia.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    52 views9 pages

    HLF Kaizen

    Uploaded by

    Henry Duna
    The KAIZEN Quality and Productivity Improvement project in Ethiopia piloted the implementation of KAIZEN activities in 30 manufacturing companies over 2 years. Key results included cost savings up to $500,000 per company, increased productivity, reduced defects and lead times, and improved workplace organization and employee participation. The project also developed the skills of staff at the KAIZEN Unit of the Ministry of Industry, with over half becoming competent to provide KAIZEN consultancy services to other companies. Overall the pilot demonstrated the potential of KAIZEN to significantly improve company performance in Ethiopia.

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    © All Rights Reserved
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    Download as pdf or txt
    of 9

    Achievements in the Quality and

    Productivity Improvement (KAIZEN)


    Project

    Go Shimada,
    Director, Private Sector Development Division,
    Industrial Development and Public Policy
    Department, JICA

    1
    Profile of the Project
     Project Title: The Study of Quality and Productivity Improvement
    (KAIZEN) in Ethiopia
     Project Duration: October 2009 to May 2011
     Project Holder: JICA & Ministry of Industry
     Study area: Addis Ababa and its surroundings
     Sector Focused: Manufacturing
     Objectives
    1) Pilot Project Performance: To formulate a manual to be used for
    conducting KAIZEN activities in Ethiopia, which is prepared based
    on results from verification study through the implementation of
    pilot activities for selected 30 (thirty) companies;
    2) Human Resources Development: To transfer relevant skills and
    techniques to the staff members of KAIZEN Unit of MoI; and,
    3) National Plan Formulation: To make a plan to disseminate
    KAIZEN activities for manufacturing companies in Ethiopia.
    Sample Improvement Results (1)

    Qualitative Results:
    Clean working environment created,

    Team work and motivation of workers developed,

    Health and occupational safety of workers improved,

    Lower level workers accustomed to suggesting


    improvement ideas to management decisions – Increased
    Employee Participation,

    Knowledge obtained on how to meet quick delivery and


    to reduce costs.
    Sample Improvement Results (2)
    Quantitative Results
    Monetary impact from the improvements reported is ETB
    500,000/company. The reporting ranges from ETB 10,000 to ETB
    3.2 mill.
     By Reducing costs (a) ETB 10,000 per month and (b) ETB 78,
    000 per annum;
     By generating additional income of ETB 1.2 million per year;
     By just decreasing down time ETB 204, 000 per day,
     By rectifying raw materials defect used for manufacturing ETB
    2.4mill;
     By identifying, repairing and reusing of usable machines &
    equipments worth of ETB 3.25 mill.
     Non-Monetary Measures of Improvement include:
     Increasing labor productivity, by reducing time loss for
    searching tools on average 50%;
     Reduction of floor space around 50%;
     Defect ratio improvement in the range of 50-70%;
     Lead time improved in the range of 16 to 90%;
     Labor saved from 15 to 90%.
    Sample Improvement Results (3)
    Quantitative Results
    Techtra Engineering
    Recovered additional revenue with an amount of 118,995
    birr
    Maru Metal Industry
    Lead time reduced from 2weeks to 1week
    Ethio Japanese Synthtic Textile S.C.
    Reduced wastage of time by 624 min/month
    Matador Addis Tyre
    Reduced wasters of over production by 50%
    Motion and movement by 100%
    Universal Food Comples
    Decreased flour wastage by 190 qtl of wheat flour
    Addis Modjo Edible Oil Complex
    Produced additional 12,000 lit/day
    By eliminating 6hours dawn time/day
    Sebeta Agro-Industry
    By decreasing milk wastage recovered 846 birr/day 5
    Pictorial Presentation of some of the achievements
    obtained in the pilot companies
    Fig.1 Sort, Set-in-order & Shine (3S) are implemented to standardize the
    inventory stock

    Fig. 2 In-process stock is repositioned to avoid Muda of transportation

    Before Kaizen After Kaizen


    Highlighted results of the Pilot Project (1)

    Possibility* high good some low no


    total
    Grade 5 4 3 2 1

    number of the
    6 4 8 6 4 28
    companies

    * Possibility to be a “KAIZEN model company”

    •10companies which are graded 5 and 4 are a candidate


    of the excellent companies.
    •Exceeds one third of the companies has a possibility of
    the KAIZEN model companies.

    7
    Highlighted results of the Pilot Project (2)
    KAIZEN Model Company (Graded 5)
    means a company which continuously practices KAIZEN and
    as the result realizes achievements that significantly excel other
    companies in terms of quality /productivity improvement.
    Adama Spinning
    East Africa Group
    Kadisco Chemical
    Maru Metal Industry
    Universal Food Comples
    Zenith
    Key Criteria for the Model Company
    Model workplace activities: 5S, Standard operation sheets,
    Layout study
    General activities: Employee training of basic KAIZEN
    knowledge, Workload reduced
    Organization management: QCC activities, Wide dissemination
    of KAIZEN
    Management direction: Active top management, Good
    employee relations, Development of KAIZEN activities 8
    Assessment of Capacity Development of KU members
    Before After
    Level Competence Assignment
    project project
    no experience of
    0 8
    KAIZEN
    Competent to conduct Junior KAIZEN
    I KAIZEN activities for Consultant
    yourself
    Competent to guide Assistant KAIZEN 2
    II
    KAIZEN activities Consultant
    Competent to provide KAIZEN Consultant 6
    III consultancy services on
    KAIZEN
    Competent to provide Senior KAIZEN
    IV consultancy services on Consultant
    KAIZEN
    Competent to provide Lead KAIZEN
    V consultancy services on Consultant
    KAIZEN
    9

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