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Arabian Journal of Business and Management Review
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Achievement of Quality, Productivity for Market through Kaizen Implementation in Ethiopia

Jalu G*

Marketing Management, Mekelle University, Mekelle, Ethiopia

Corresponding Author:
Jalu G, Lecturer
Marketing Management
Mekelle University; Mekelle, Ethiopia
Tel: +251 344 40 40 05
E-mail:
[email protected]

Received July 29, 2015; Accepted September 23, 2015; Published September 30, 2015

Citation: Jalu G (2015) Achievement of Quality, Productivity for Market through Kaizen Implementation in Ethiopia. Arabian J Bus Manag Review 5:170. 

Copyright: © 2015 Jalu G. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

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Abstract

The research was based on the kaizen implementation in Finca’a sugar factory due to the fact that the factory was considered as the role model within the country following its achievement of earning birr 55.6 million birr from first year result of kaizen implementation. This achievement enables the factory to be the first among Kaizen implementers in 2013, and receive Excellence award from Ethiopian kaizen institute in the same year. The following results for Finca’a sugar factory such as financial, cost reduction, obtaining additional income, decrease down time, defects reduction, re usage of machines and equipments by repairing, increasing labor productivity by reducing time loss for searching for tools, additional space obtained, defect improvement, lead time improvement, clean working environments creation, team work and motivation of workers development, health and occupational safety workers improvement, increasing labor employee participation, knowledge obtained on how to meet quick delivery to reduce costs were studied.

Keywords

Kaizen implementation; Finca’a sugar factory; Quality; Productivity; Ethiopia

Introduction

After WWII, U.S.A was the only country having industrial power while many European countries including Japan suffer from the war damage and forced to buy manufacturing goods from U.S.A. which results for the country manufacturers to get in to “Golden Age” and generate high profit. American work force made support in order to revive Japans economy. Among the professionals Dr. Edwards Deming, is considered as the pioneer of Kaizen concept. He contribute a lot for rebuilding Japan due to this Japans honor award named after his name “Deming Prize” The name Kaizen emanated from Japanese word combination of two words Kai means Continuous and Zen means improvement in combination it is Continuous improvement. Which involves all workers from top management to the bottom level employee Due to the implementation of Kaizen Japans firms become successful and the 1970 the country’s export was greater than its import [1,2].

Following the success of Japan’s firms, Japan takes initiative to support Africa under Yokohama action plan. Due to this in November, 2009 about 300 Ethiopian participated in seminar. Similarly in 2010 Ethiopia established a Kaizen Institute [3]. Finca’a is among the others that has implemented kaizen and even become successful and able to earn over 123.9 million birr within two year this achievement enables them to get excellence award from kaizen institute in 2013 [4]. Despite kaizen is in infancy level in Ethiopia Finca’a sugar factory able to enhance quality, productivity and profit through kaizen.

There is huge gap between developed and developing countries in way of doing business. Despite there is strong association between business management and (productivity, profitability, growth of sales and survival) the way of doing business in Africa is poor, its effect in small business is high. East Asian countries like sub-Saharan had similar problems in the beginning and finally they have become successful by improving their management, marketing and product development [5]. African manufacturers not only facing technological gap but also in short or key managerial knowledge like kaizen.

Unlike agriculture and service sectors, manufacturing sector contribution is limited towards production, employment and export. Industry and manufacturing register 10.7 and 4 percents respectively less than sub-Saharan average which is 28 percent and 10.2 percent respectively (World Bank 2011) cited in Abegaz [6]. Even empirically it is evidenced that if manufacturing sectors implements kaizen their contribution to GDP increases. In his finding Desta [7] described that Kaizen Implementation in Northern Ethiopia’s Manufacturing by undertaking three pilot companies namely Mesfin industrial engineering, Sheba Leather and Almeda textile factory shows that Kaizen in partially implemented in the factories. Employee’s lacks a capacity to accept kaizen and executive managers of three pilot companies themselves not committed. Among the beginning level systems of Kaizen which is 5S only three of them implemented which are sorting, setting, and shining but not standardize and clean.

In comparison with Manufacturers registered at Ministry of industry until June, 2006 which are 1036 and Manufacturing sector which works with Ethiopian Kaizen institute which are 24. It shows Kaizen expansion in manufacturing sector is less than three percent. It implies that many companies not yet implement it. Moreover among implementer few can succeed, because of this many companies can learn from successful implementer like Finca’a sugar factory. The researcher wants to study kaizen implementation in Finca’a sugar factory due to the fact that the factory is considered as the role model within the country following its achievement of earning birr 55.6 million birr from first year result of kaizen implementation. This achievement enables the factory to be the first among Kaizen implementers in 2013, and receive Excellence award from Ethiopian kaizen institute in the same year.

Conceptual Framework

Ten basic kaizen principles

Kr [8] the Ten Basic Kaizen principles throw away unchanging ideas, don’t think why it cannot be done instead how to do it, start by inquiring existing practices instead of making justifications. Despite it is 50% from target do it don’t try to find perfection, correcting immediately if there is a mistake, utilize your wisdom instead of spending money, hardship will results for Wisdom, find out root causes by asking “WHY”? Five times, use the wisdom of many people instead of using one; because of continuous improvement ideas in KAIZEN ideas are endless.

Kaizen philosophy

Kaizen philosophy listed in kaizen definition [9] as a) Leadership b) Cross-functional Teams, c) 5S, d) Productivity improvement, e) Process focus, f) Discipline in the workplace, g) Teams

a. Leadership: Leadership is the process where a person exerts influence over others and directs, motivates and inspires to achieve goals [10]. The above definition also supported by Kulveer Singh [10] Leadership is influencing, inspiring, motivating and directing others to meet organizational goals. To increase qualities at all level the following points discussed by the researcher.

b. Mentoring others: achieving outcomes through the effort of other staffs. Influencing employees without positional authority is very important for achieving meaningful leadership in any organization. Integrity is considered as one ingredient for mentoring program, it assumes consistency of actions, values, methods, measures, principles, expectations and outcomes. Leading change listed as get to what really matters, Generate fresh insights, Plan from a new point of view, Move from intention to results.

c. Cross-functional teams: It is a group of people from various experts working toward a common goal. It might include from production, sales and human resource. Members from outside of the organization might be included [11].

d. 5S system which is five steps of Good maintenance listed as Seri: sorting making different between important and unimportant items. Seiton: ordering/Arrangement. Seiso: cleaning and disturbance detection making working areas/equipment clean. Seiketsu: standardizing. Shitsuke: Disciplining getting self– discipline [12]. 5S facilitate pleasant organization system and enhance productivity and efficiency [12].

e. Productivity improvement: improving productivity ongoing basis.

f. Process focus: instead of focusing on the final result Kaizen is focusing with the process.

g. Discipline: In the workplace: every employee should act in a discipline manner in work place; good behavior must be developed and practices from time to time.

h. Teams: Kaizen works on group basis instead of individual basis. 8, Improvement: nonstop change for better.

Kaizen tools

a. Customer orientation: The objectives of production of goods are aiming to customer will and capability to buy the product [11].

b. Total quality control (TQC): integrating employee in every area within the organization for the purpose of improving performance. TQC also known as TQM (Total quality management) it is a management tool for improving total performance. Eight principles of TQM listed by Taylor [13] as;

i. Quality defined by the customer it have a top priority of satisfying the customer,

ii. The leadership for quality must be provided by Top management,

iii. Strategic plan requires for Quality due to it’s a strategic,

iv. Every level of employee have a responsibility for Quality,

v. In order to strategic goals continuous quality improvement must be addressed by all functions of the company,

vi. Cooperation between employees and management will solve Quality problem,

vii. By using statistical quality-control methods problem solved and continuous quality improvement enabled,

viii. For assuring continuous quality and improvements training and education mandatory.

c. Robotics: In manufacturing process information controlled and processed by using automated machine and feedback from computer used [11].

d. Quality control circles: Searching problems, various alternatives analyzing and suggest possible solutions performed by small groups activities regard to quality, productivity and self-development [14].

e. Suggestion system: any constructive ideas which helps for minimizing cost, improvement of product quality, efficiency at workplace, customer service and working condition and any ideas and suggestion which benefits the organization. Ideas and suggestions of employees forwarded upward, reviewed by committee and approved and finally implemented and ends with giving appropriate rewards for the deserved employees, [14] each suggestion recorder and reviewed and displaying some items made by employee suggestion for the purpose of giving recognition for the idea forwarded employee and finally rewards will be granted within the month or year [2].

f. Automation: using of various control system for operating equipment such as machinery, boilers and heat treating ovens etc. with minimum human intervention.

g. Discipline in the workplace: Discipline is ability to win ones weakness and control emotion and firm stand to follow what is considered as right, with regard to workplace discipline his or her think will be substitute by organization discipline rules [11].

h. Total productive maintenance (TPM): it focuses on keeping all equipment in best condition to prevent breakdowns and delays in manufacturing process. TPM have the goal of increasing production, job satisfaction and morale of employee by maintaining plants and equipment it will improve efficiency rate of equipment and reduction of cost by eliminating breakdowns and defects [15].

i. Kamban: It is a tool for communication in just in time its meaning is signboard the following process worker gather parts from previous process by leaving a Kamban which indicate a given quantity to be delivery, by doing so inflow of parts can be coordinated.

j. Quality improvement: Crosby [16] Define quality as producing products and delivering service as per previously set requirements [17] State Joseph Juran definition of quality as “fitness for use” having those definition we can improve quality from time to time.

k. Just in time: supplying of anything such as finished goods, raw material when needed. It has a goal of elimination of waste. In the case of production producing necessary quantities, necessary item at the necessary time. In traditional system manufactured items immediately transferred to the next section when they are product, but in JIT the following stage goes back and take what is needed for production. JIT have various advantages such as minimization of operating costs, better performance and throughput, quality improvement, delivery speed and flexibility and innovativeness advancement. The components of JIT are leveling production, Kamban, Housekeeping, reduction of setup time, TPM, TQC, JIT purchasing, balancing Line, Flexible Manufacturing and activities of Small group activities (SGA).

l. Zero defects: Is making the output free from defect.

m. Small-group activities: It focuses on using small group in might consist from 3-20 individuals [11].

n. Cooperative labor management relations: Harmony relationship between management and labor [11].

o. Productivity improvement: productivity is a ratio of output to input in production, if we make high output with a minimum input our productivity can be improved.

p. New-product development: It is a full process of bringing a new product or service to market.

The key kaizen tools classified by two 1, Mindset and Culture includes quality improvement, total quality control, customer orientation, quality control circles, suggestion system, discipline at work place, activities of small-group, collaborative relation of labor and management 2, Production Process includes automation and robotics, automation, zero defects, total productive maintenance (TPM), Kamban, just-in-time (JIT), improvement of productivity and development of new product.

The three pillars of Kaizen: Housekeeping, waste elimination and standardization

Under his study Kr [8] three important kaizen rules which can be applied in Gemba are Housekeeping, waste elimination and standardization. Housekeeping is involved using 5S method. Waste: any cost raising activity without adding value for the organization. Standardization refers to doing certain job in best way; it ensures quality and avoids recurring problems. As a general rule standardization assure reduction of 50% failure rate and further 50% can be assure by implementing standardization.

a. Housekeeping: Ascertained by 5S which are five steps of Good maintenance listed as Seri: sorting making different between important and unimportant items. Seiton: ordering/Arrangement. Seiso: cleaning and disturbance detection making working areas/equipment clean. Seiketsu: standardizing. Shitsuke: Disciplining getting self–discipline [12]. 5S enhances productivity and efficiency and also creates pleasant organization system [12]

b. Waste elimination: Various types of waste explained by Kr [8] waste of over production it is considered as the worst type of waste because it causes for handling and stock cost.

c. Waste of inventory: Any cost associated with carrying of large inventory. Waste of waiting: spending time without work.

d. Waste of motion: Spending time in non-value adding movement. Waste of transportation: moving materials on trucks, forklifts or on conveyer. Waste of production rejects: producing unfit products which leads to rework or it will throw it is considered as a big waste.

e. Waste of processing: Causes from improper arrangement of working sequence, by rearranging the working sequence, we can avoid a particular process.

f. Standardization: Maintaining and improving standards is one of the main objectives of management [2]. One task might be standardized among many tasks, displaying on board in work area helps for workers to remind it if a company assures discipline environment within the organization [18]. Setting standards and continually improving it involves in Kaizen [2] (Figure 1). Standards must consider the changing environment and it is never ending process and Deming cycle better explain it [9] key features of standardization presented by Thessaloniki [9] as characterize by the best safest and easiest way for job doing, Protecting know-how and expertise with the best, arrange performance measurement method, indicate cause and effect relationship, providing basis for both maintenance and improvement, Providing objectives and indicating training goals, offer a basis for training, making a basis for auditing or diagnosis, and Provide a means for minimization of errors and inconsistency.

arabian-journal-business-management-review-Conceptual-Framework

Figure 1: Conceptual Framework.

Objectives of the Study

To assess to what extent kaizen is implemented within the factory in accordance with its Principles, philosophy, tools and three pillars in order to achieve profitability, productivity and quality.

Research Design and Methodology

To accomplish the objectives of the study both qualitative and quantitative research strategies used. The researcher used cross sectional design as per Zikmend [19]. Based on the purpose, the study is descriptive in nature because, this type of study will be conducted to provide detailed description about the existing phenomena and to justify current condition. To gather the required data, the researcher used both primary and secondary. Tools include questionnaires from supervisors, team leaders and managements (Top, Middle and lower level) interview from three higher officers whom coordinate Kaizen implementation with in Service, Factory and Sugar development departments. For secondary data’s the researcher used various documents. From Ethiopian sugar development agency: general information about sugar factories with in the country, from Finca’a sugar factory Annual reports and data presented for Ethiopian Kaizen institute. To collect the primary data, the researcher will distribute organized questionnaires to the respondents; the questionnaires prepared using Likert scaling questions. And also open ended questions would be included to facilitate the respondents to address the issued they want. Concerning secondary documents the researches collect relevant secondary data from Ethiopia sugar development agency, Finca’a sugar factory Ethiopian kaizen institute, and Ministry of trade.

The researcher distributed the questionnaires to selected employees among permanent employees of the organization; this is due to permanent employees having stayed within the company permanently and they have an exposure to see changes done within the organization uninterrupted. In addition, Using stratified and purposive sampling system the researcher classifies the whole permanent employees in to three groups namely 1,service providers includes (office workers, hospital workers and garage workers) 2, Factory workers includes employees which are directly involved in manufacturing of the product and 3, Sugar development employees which are involved in sugar cane plantation and related duties. Furthermore the questionnaires filled by team leaders, supervisors and Management (Top, middle and lower lever) due to the fact that the researcher purposively selected them by believing they have knowhow concerning the questions at hand. The population does not have homogeneous group, hence stratified sampling technique used in order to get representative for each group. After classifying total group to strata samples selected. In purposive sampling researchers select samples that satisfy their specific purposes [19,20] the researcher distributes the questionnaires purposively to selected employees, interview conducted to higher Kaizen officer whom facilitate Kaizen implementation within service, factory and sugar development departments one from each and observation undertaken in selected areas of the factory. There are 2,311 permanent employees in wonji-shoa sugar factory [21]. To determine the sample size, a previously proven formula applied.

image

Where, n= sample size, N= Total of population, e = Sampling error at 95% of level of confidence

image

The researcher classified total employee into three groups which are sugar development workers, factory workers , service providers. Sugar development workers include employee who involve in sugar cane plantation, collection and related worker with in the farm (Table 1). Factory workers include employees who involve in manufacturing process of the sugar cane. Service providers include employees who involved in office works such as accounting, medical, and garage etc.

Service providers Factory workers Sugar development Total
No  of employees sample size taken No of employees sample size taken No of employees sample size taken No of employees sample size taken
820 121 776 115 715 105 2,311 341

Table 1: Sample size and collected questionnaires

In order to analyze the collected data for this study the researcher used statistical package for social science (SPSS) 20. The responses will edit and variable coded before analysis. In this process descriptive statistics such as mean, percentage and frequencies used and also regression analysis done separately for measuring Enhancement of quality, productivity and profit (dependent variables) against the set of kaizen (independent variables). More over correlation used to see the relationship between kaizen with quality, productivity and profit

Results and Discussion

Kaizen tools

Suggestion system: It involves any constructive ideas which helps for minimizing cost, improvement of product quality, efficiency at workplace, customer service and working condition and any ideas and suggestion which benefits the organization. Ideas and suggestions of employees forwarded upward reviewed by committee and approved and finally implemented and end with giving appropriate rewards for the deserved employees [14].

As far as Suggestion system concerned except the question their smooth and convenient way to deliver ideas to concerned section which fall under agree level with total point of 3.54 (Table 2). All of the remaining questions fall under neutral level except the factory result on 2.53 for the question rewards are recognition given to ideas generator employees are satisfactory which fall under disagree level. It implies that the current performance with regard to Suggestion system is not successful, though it one of the key tool of kaizen. The research finding is consistent with Nderi [22].

No Variables of suggestion system Service provider   Factory Sugar development Total Finca’a sugar factory
Mean St.D Mean St.D Mean  St.D Mean  St.D
1 There is smooth and convenient way to deliver ideas to concerned section 3.61 .907 3.41 1.25 3.61 .985 3.54 1.06
2 Forwarded ideas properly reviewed by committees 3.37 1.09 2.98 1.36 3.26 1.00 3.20 1.17
3 Forwarded ideas successfully implemented 3.33 1.02 2.75 1.21 3.15 1.14 3.08 1.15
4 Rewards and recognitions given to ideas generator employees are satisfactory. 3.00 1.06 2.53 1.22 2.88 1.06 2.80 1.13
5 The rewards given as per the choice of employee from the alternatives. 2.78 1.20 2.74 1.28 2.83 1.11 2.78 1.19
Average mean 3.22 .795 2.88 1.04 3.14 .859 3.08 .912

Table 2: Suggestion system.

As far as suggestion system of Finca’a sugar factory is concerned the result is far from Japanese companies, despite most of the ideas are not for big changes each employee forwarded 60 to 70 suggestions per year in the case of Japanese companies, such as Toyota and Canon. Kaizen is a concept of small improvement ongoing basis [18]. Out of seventy five thousand various suggestions by seven thousand Toyota employees 99% implemented. In addition it satisfies employees and reduce turnover [18].

Unless the organization take immediate solution continuous improvement cannot be assured, due to the fact that continuous improvement basis itself on employee suggestion. Suggestion system enables the company to utilize its employee mental capability, creativity by doing so the company can ensure its continuous improvement. The data collected from three higher officer’s shows that employee forward ideas through kaizen board and reviewed by brain storming among group member discussion.

Though, research and development department is one of the key supporters for the success of the organization by helping the organization to solve kaizen related problems, empowering and other related issues. It is learnt that the research and development department could not assist with regard to kaizen implementation. Research and development department can also contribute a lot by conducting researches irrespective of ideas suggested by employees or not.

Quality control (QC) circles and Total quality Control (TQC): Quality Control circles: Searching problems, various alternatives analyzing and suggest possible solutions performed by small groups activities regard to quality, productivity and self-development [14].

Total quality control: Integrating employee in every area within the organization for the purpose of improving performance. TQC also known as TQM (Total quality management) it is a management tool for improving total performance.

All quality control circle result fall under neutral level, it implies that as per the respondent’s response and stated quality control circle questions it is low result. The result indicates that there is a gap in quality control circles. Quality control circles deals with Searching problems, analyzing various alternatives and suggest possible solutions with regard to quality, productivity and self-developments (Table 3).

No Quality control (QC) circles Service provider   Factory Sugar development Total wonjishoa sugar factory
Mean St.D Mean St.D Mean  St.D Mean  St.D
1 Quality circle teams are properly organized 2.77 .989 3.00 1.30 3.01 1.10 2.92 1.14
2 All group members within the quality control circles properly participate 3.08 1.05 3.01 1.29 2.94 1.04 3.01 1.13
3 Groups perform  activities with regardto quality, productivity and self-development 3.17 1.01 3.02 1.23 2.99 .976 3.06 1.08
Average mean 3.01 .901 3.01 1.11 2.98 .936 3.00 .983
  Total quality control
1 All employees involve in total quality control 2.92 1.00 3.50 1.24 3.41 1.03 3.27 1.13
2 Various methods used for quality control: such as statistical quality-control  and others 2.97 .903 3.43 1.24 3.25 .978 3.21 1.06
3 Employees have sufficient skill for quality control 3.00 .953 3.47 1.22 3.34 .998 3.27 1.08
4 Factory have sufficient quality control tools 2.99 .961 3.37 1.29 3.10 1.06 3.15 1.12
Average mean 2.97 .760 3.44 .979 3.28 .806 3.22 .874

Table 3: Quality control circle.

As far total quality control question is concerned except factory which shows agree level average mean result, both departments result fall under neutral level. It implies that the Total quality control is moderately used in factory department and not known or not properly applied in service and sugar development departments. The result shows there is total failure in utilization on total quality control within service department. In sugar development department employee involvement in total quality control is moderate level result 3.41, but using various methods, having sufficient skill and tools show neutral result. Properly solving the discussion at hand will solve quality related problem with in the factory. Proper application helps for the service department to solve associated quality problem in service delivery and for sugar development department will help to deal with quality problems associated with sugar development.

Other Kaizen tools: Five of kaizen tools for service department’s fall under neutral level namely Robotics, using automated tools, Factory products is free from defects, Kamban and Just-in-time (JIT) All the rest eight question results shows agree level with the highest of there is discipline in the workplace followed by Productivity improves from time to time, works done by targeting customer need and desire, Activities done by small group, Factory improves quality from time to time. There is cooperative labor management relations, Total productive maintenance (TPM) and The factory works for new products development. The result concerning Kaizen tools with in service department shows partially implementation. With regard to factory department its relatively better than service department it shows only one tools have neutral level namely, there is cooperative labor management relations: all the rest tools show agree level result. The company in factory department able to implement higher tools however all the result doesn’t reach at strongly agree level, The factory department show lower result in cooperative labor management relations (Table 4).

No Other kaizen tools Service provider   Factory Sugar development Wonjishoa sugar factory
Mean St.D Mean St.D Mean  St.D Mean  St.D
1 Activities done by small group 3.85 .882 4.08 .727 3.42 1.01 3.79 .913
2 There is cooperative labor management relations: 3.74 .899 3.35 1.14 3.57 .908 3.56 1.00
3 works done by targeting customer need and desire 3.86 .820 4.14 .926 3.76 .883 3.92 .888
4 There is discipline in the workplace 3.91 .730 3.96 1.06 3.99 .740 3.95 .857
5 Factory improves quality from time to time 3.80 .714 4.06 .920 3.64 .810 3.84 .833
6 Robotics: 3.21 .912 3.42 1.13 3.20 .870 3.27 .982
7 The factory uses different automated tools within the factory 3.38 .756 3.50 1.05 3.10 .980 3.34 .943
8 Factory products are free from defects 3.33 .850 3.65 1.11 3.28 1.07 3.42 1.02
9 Total productive maintenance (TPM): 3.60 .935 3.68 1.10 3.48 .981 3.59 1.01
10 Kamban : 3.29 .831 3.80 .966 3.67 .937 3.58 .935
11 Just-in-time (JIT): 3.30 .982 3.88 1.00 3.28 1.05 3.49 1.04
12 Productivity improves from time to time 3.87 .632 4.11 .886 3.92 .817 3.97 .787
13 The factory works for  new products development: 3.53 .786 3.79 1.00 3.65 .898 3.65 .903
Average mean 3.59 .509 3.80 .568 3.53 .556 3.64 .554

Table 4: Other kaizen tools.

Four of sugar development department kaizen tools show neutral result namely, Robotics, using automated tools, factory products is free from defects and Just in time. The remaining nine result shows agree level. Among There is discipline in the workplace, followed by productivity improves from time to time, works done by targeting customer need and desire, Kamban, doing for new product developments, improvement of quality from time to time, having cooperative labor management relations, Total productive maintenance and activities done by small group.

The results shows the company still have a room for further stretch in implementing kaizen tools, due to the fact that all results cannot reach strongly agree result. And five tools from service one tools from factory and four tools from sugar development departments show neutral level. Aggregate result shows that three of the tools fall under neutral level namely robotics, using automated tools and factory products are free from defects and the rest under agree level. Total average mean result shows agree level with the result of 3.64. The research finding of total productive maintenance consistent with Nderi [22], but the finding of Kamban and Just in time is not consistent with Nderi [22].

Kaizen pillars

Kaizen three pillars according to Thessaloniki are Housekeeping, Waste elimination and Standardization [9]. Under his study [8] also mention three important kaizen rules which can be applied in Gemba are Housekeeping, waste elimination and standardization. Housekeeping is involved using 5S method. On the other hand Kaizen philosophy listed by Thessalonioki [9] as 1, Leadership 2, Crossfunctional Teams, 3, 5S 4, Productivity improvement 5, Process focus 6, Discipline in the workplace 7, Teams.

Average means results of Kaizen three pillars and Kaizen philosophy

The average means results of Kaizen three pillars and Kaizen philosophy are shown in Table 5.

No Variables of Service Factory Sugar dev. Wonjishoa
Mean St.D Mean St.D Mean  St.D Mean  St.D
1 Housekeeping 4.12 .552 4.22 .736 4.27 .489 4.20 .605
2 Standardization 3.66 .783 3.89 .793 3.69 .774 3.75 .788
3 Waste elimination 3.76 .602 4.05 .730 3.82 .532 3.88 .640
4 Kaizen philosophy 3.74 .664 3.82 .847 3.81 .433 3.79 .675

Table 5: Average mean results of kaizen three pillars and kaizen philosophy.

Housekeeping: In service department sorting result shows higher result and the remaining 5S questions agree level. The factory result shows even better result with three of them namely shine, standardize and sustain result show higher level and sorting and set in order agree level. In sugar development department sorting, set in order and shine shows higher result and standardize and sustain fall under agree level. The total wonji shoa results is agree with sugar development department result, With sorting, set in order and shine higher level with the point of 4.27, 4.22 and 4.26 respectively and standardize and sustain are agree level with the result of 4.14 and 4.11 respectively. Average mean result of wonji shoa sugar factory shows 4.20 with higher level execution. It can be inferred from the data that the company 5S implementation is high, but since kaizen always assume there is always better improvement the company expected to sustain it and look for better improvements. The interview result conducted from factory higher kaizen officer also in accordance with the response of respondents. The interview result of service department and sugar development department with regard with standardization is relatively lower it also agree with the response of respondents. In addition the company documents provided in terms of photos and conducted observation within the organization confirms that the company succeeded in housekeeping. In aggregate the company results of housekeeping as per respondent’s response and secondary documents is high. The research finding is Consistent with Nderi [22].

Standardization, waste elimination: All three department result and factory in total achieve moderate level result. Despite it is encouraging achievement it requires due attention because of one of the three pillar of kaizen. Without having standards for all works, conducting inspection and improvements of standards continuous improvement cannot be assured. Standardization is a base for continuous improvement after achieving current standards it is possible for thinking better improvement by doing so continuous improvement can be achieved. All waste elimination result of all departments and total shows agree level it implies that the company able to eliminate waste at agrees level. However it is possible to further improve all. The result of waste elimination is Consistent with Bisht and Nderi [2,22].

Kaizen philosophy: Except the question of leadership for factory workers which shows 3.16 result fall under neutral level, all other results show moderate result. It shows that the company properly used kaizen philosophy within the company. With regard to leadership question for factory it is lower and also cooperate labor management relation raised in kaizen tools for factory also shows lower result it implies that there is leadership problem with in the factory and labor management relationship is low It requires sufficient attention.

Kaizen principles

In his study Kr [8] lists Ten Basic Kaizen principles (Table 6). In service provider section Many Peoples skills used instead of one person score 3.89 followed by Ask ‘’WHY?’’ five times and seek root causes and By understanding Kaizen continuous improvement nature, employees contribute ideas infinitely both score 3.87. The lower results from service providers are Conventional fixed ideas discarded and Do not seek perfection do it right away even if it will only achieve 50% of target Shows 3.63 and 3.66 respectively. Average mean of service department shows 3.79 it is agree level result. With regard to factory Many Peoples skills used instead of one person score 4.27 followed, by understanding Kaizen continuous improvement nature employees contribute ideas infinitely core 4.36. The lower results from factory department are do not seek perfection do it right away even if it will only achieve 50% of target and Do not make excuses Start by questioning current practices with result of 3.83 and 3.94 respectively. In sugar department higher result registered in think of how to do it not why it cannot be done, by understanding Kaizen continuous improvement nature, employees contribute ideas infinitely with a result of 4.28 and 4.27 respectively. Two of the lower results of sugar development department are do not seek perfection do it right away even if it will only achieve 50% of target and Wisdoms are used instead of spending money and Ask “WHY?” five times and seek root cases with the result of 3.81, 4.07 and 4.07 respectively. Average mean of service, factory and sugar development department result shows 3.79, 4.11 and 4.12 respectively. Total average mean result is 4.00 with agree level. In general the result of kaizen principles in each department and total result fall under agree level, it is moderate achievement. Kaizen principles measures how employees perceive within the factory and opportunity given to employees to act according to kaizen principles.

No Variables of Kaizen principles Service Factory Sugar  dev. Wonjishoa
Mean St.D Mean St.D Mean  St.D Mean  St.D
1 Conventional fixed ideas discarded 3.63 .877 4.11 .971 4.12 .646 3.94 .878
2 Think of how to do it, not why it cannot be done 3.74 .791 4.22 .781 4.28 .563 4.07 .762
3 Do not make excuses. Start by questioning current practices. 3.73 .739 3.94 .861 4.16 .652 3.93 .776
4  Do not seek perfection. Do it right away even if it will only achieve 50% of target. 3.66 .770 3.83 1.01 3.81 .681 3.76 .835
5 If you make mistake, correct it right away 3.82 .816 4.00 1.16 4.23 .624 4.01 .914
6 Wisdoms are used instead of spending money 3.83 .789 4.06 1.11 4.07 .615 3.98 .873
7  Understanding wisdom is brought out when faced the hardship 3.81 .820 4.16 .954 4.10 .678 4.02 .842
8  Ask ''WHY?'' five times and seek root causes 3.87 .912 4.10 1.10 4.07 .763 4.01 .944
9 Many Peoples skills used instead of one person 3.89 .947 4.36 .786 4.10 .706 4.11 .845
10 Employees contribute  ideas infinitely 3.87 .927 4.27 .820 4.27 .580 4.13 .817
Average mean 3.79 .609 4.11 .749 4.12 .377 4.00 .622

Table 6: Kaizen principles.

Total result of Finca’a sugar factory result shows By understanding Kaizen continuous improvement nature, employees contribute ideas infinitely , Many Peoples skills used instead of one person and Think of how to do it not why it cannot be done scores one up to three with the result of 4.13, 4.11 and 4.07 respectively. On the contrary do not seek perfection do it right away even if it will only achieve 50% of target, do not make excuses Start by questioning current practices and Conventional fixed ideas discarded shows 3.76, 3.93 and 3.94 scores one up to three respectively. The total average result is 4.00 at agree level. With regard to kaizen principles the company result shows at agree level even, however the result differ from department to department.

Conclusions

Kaizen contribute the following results for Finca’a sugar factory such as financial, cost reduction, obtaining additional income, decrease down time, defects reduction, re usage of machines and equipments by repairing, increasing labor productivity by reducing time loss for searching for tools, additional space obtained, defect improvement, lead time improvement, clean working environments creation, team work and motivation of workers development, health and occupational safety workers improvement, increasing labor employee participation, knowledge obtained on how to meet quick delivery to reduce costs. In addition the company gains more than 123 million birr from kaizen implementation within two years.

With regard to implementing kaizen fundamentals except factory department both service and sugar development workers result is neutral. With regard to the level of kaizen implementation the company shows moderate level implementation for the majority of kaizen particulars namely, kaizen fundamentals, other kaizen tools, Housekeeping, standardization, waste elimination, kaizen philosophy, kaizen principles. The higher result of kaizen variables is housekeeping at higher level. On the contrary the company shows lower result for suggestion system, quality control circle and total quality control and also the company able to increase quality, productivity and profitability by implementing kaizen.

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