Chapter two literature revie2 last but not list

ADDIS ABABA UNIVERSITY

SCHOOL GRADUATE STUDIES

COLLEGE OF EDUCATION AND BEHAVIORAL STUDIES

MA RESEARCH PROPOSAL

Practices and Challenges of Implementing Kaizen

Policy in Entoto Technical and Vocational Education

and Training College in Gulele Sub-city Cluster

Center

SUBMITTED TO: Fetene Regassa

BY

Berhanu Tadesse

ID/NO: GSE/0514/11

E-mail address [email protected]

Mobil No. +251911086066

January 2014

Addis Ababa, Ethiopia

Chapter Two Literature Review

2. Literature Reviews 2.1. Introduction

Definition and concepts of Kaizen 2.2. History Development of Kaizen. 2.2.1. The Kaizen Philosophy

The objectives of Kaizen: Kaizen mainly focuses Benefits of Kaizen Kaizen application and implementation Applicability to developing countries Roles of Management and employees function in Kaizen The roles of various levels under Kaizen

2.3. Techniques and implementation of Kaizen family The system and techniques of Kaizen families focuses on the

following Total quality management Implementation of TQM and Kaizen Kaizen Method Six sigma

2.4. Precondition necessary to implement Kaizen training Benchmarking Gap analysis

2.5. Kaizen verses BPR and other application

Business Process Re-Engineering (BPR) Relationship with TQM Decline of Re-Engineering (BPR) Kaizen and Re-Engineering

2.6. Managerial Behavior and effectiveness implementing Kaizen Concepts of Japanese Management System Environmental health and safety management in Kaizen. JMSs as a multi-stakeholder model of governance The innovation diffusion perspective Innovation Characteristics (of JMSs) Effects of company culture Leadership and core organizations: Development and diffusion of foreign technologies

2.7. Introduction to Kaizen in Africa Kaizen policy in the Africa context Current needs of TVET in the view of Africa Union and Donors

Policy in Malawi Comparative analysis features of three countries

2.8. Introduction of Kaizen strategy in Ethiopia Needs of Kaizen in Ethiopia The rationale behind the introduction Micro and small enterprises in Ethiopia Different sector policy and strategy framework and national strategies for the

development of MSEs in Ethiopia Major objectives of MSEs development in Ethiopia Stakeholders participation implementing Kaizen strategy The role of state government body The role of regional stakeholders The role of Ethiopian kaizen institution The role of TVET to MSEs Technological development Industrial extension service Directions of the industrial extension service Strengthen support providers The joint work between enterprise and TVET /cooperative training

Summery

2. Literature Reviews

This part of research deals with some conceptual, theoretical and historical background of the

issues related to the kaizen training implementation management. Initially it is better to discuss

the introduction; definition, historical development of Kaizen and concepts of japans Kaizen

management system. Then list out benchmarking, organizational performance and effectiveness

the support system of kaizen training in different sectors, and compared on the basis of a

comparative analysis of different country policy and then in the later part of the study it would be

contextualized Ethiopian management system in the MSEs, the TVET and other concerned body.

2.1 Introduction

Kaizen is a Japanese word that has become common in many western companies. The word

indicates a process of continuous improvement of the standard way of work according to Chen et

al., (2000). It is a compound word involving two concepts: Kai (change) and Zen (for the better)

according to Palmer, (2001). The term comes from Gemba Kaizen meaning ‘Continuous

Improvement’ (CI). Continuous Improvement is one of the core strategies for excellence in

production, and is considered vital in today’s competitive environment according to Dean and

Robinson, (1991). It calls for endless effort for improvement involving everyone in the

organization according to Malik and YeZhuang, (2006).

The Kaizen philosophy assumes that our way of life—be it our working life, our social life, or our home life—should focus on constant-improvement efforts..... In my opinion, Kaizen has contributed greatly to Japan’s competitive success. According to Imai, (1997, p.1)

The ultimate objective of manufacturing industries today is to increase productivity through

system simplification, organizational potential and incremental improvements by using modern

techniques like Kaizen. Kaizen refers to continuous improvement in performance, cost and

quality. Kaizen strives to empower the workers, increase worker satisfaction, facilitates a sense

of accomplishment, thereby creating a pride of work. It is not only ensures that manufacturing

processes become leaner and fitter, but eliminate waste where value is added. Kaizen by now is a

widely discussed and applied manufacturing philosophy, in a variety of industries across the

globe. This literature review discusses different articles that have been published in this field and

presents a review of literature.

Many organizations today find themselves undertaking a number of projects as part of their change effort. An organization may simultaneously be working on TQM, process reengineering, employee empowerment, and several other programs to improve performance. But the key to the change effort is not attending to each party in isolation;

it’s connecting and balancing all the pieces. In managing change, the critical task is understanding how pieces balance off one another, how changing one element changes the rest, how sequencing and pace affect the whole structure. Duck, J.D., cited in Philip Hallinger(1993).

This contract remains the background for all Kaizen activities providing the necessary security to

ensure confidence in the workforce according to Brunet, (2000). First, it was been introduced

and applied by Imai in 1986 to improve efficiency, productivity and competitiveness in Toyota, a

Japanese carmaker company in the wake of increasing competition and the pressure of

globalization. Since then, Kaizen has become a part of the Japanese manufacturing system and

has contributed enormously to the manufacturing success according to Ashmore, (2001).

The purposes of this literature reviews are to: (i) introduce the basic theories, concept and

characteristics of kaizen including compare and contrast the effectiveness of Kaizen and BPR in

developing country (ii) to introduce the basic concept and characteristics of kaizen in African

audience; (iii) explain how Japan has implemented kaizen effectively in their country and

assistance in developing countries including comparative study in other countries and the

methodology adopted from Japanese to transfer necessary techniques and practices; and (iv)

discuss factors that the stakeholder contribution on the application of Kaizen training.

Definition of KAIZEN

Kaizen is the main pillar of TQM (Total Quality Management) or TPM (Total Productive Maintenance) and its emphasis lies with continuous process improvement. The most effective way to achieve Kaizen is for worker themselves to be highly motivated to implement to improvement production methods and products. Suggestion systems, QC circle and self- management are typical methods to motivate workers to achieve Kaizen according to Ethiopian Kaizen institute (2013:6).

Kaizen is a system of continuous improvement in quality, technology, processes, company culture, productivity, safety and leadership. Kaizen was created in Japan following World War II. The word Kaizen means "continuous improvement". It comes from the Japanese words "Kai" meaning improvement (school) and "Zen" meaning change (wisdom). Kaizen is a system that involves every employee - from upper management to the cleaning crew BOGDĂNOIU (ND).

The Kaizen philosophy assumes that our way of life—be it our working life, our

social life, or our home life—should focus on constant-improvement efforts….. In

my opinion, Kaizen has contributed greatly to Japan’s competitive success.

According to Imai, (1997:1)

2.2. Historical Development of Kaizen

Henry Ford first develops a manufacturing concept of continuous moving assembly line – the

first approach for mass production. The Ford model of a worker performance in simpler and

repetitive tasks has been replaced by job rotation and teamwork, which mainly improve

employee morality but also yield substantial benefits in terms of higher quality and employee

suggestions for improvements in the process according to Ana Valentinova Kovacheva (2010)

The philosophy of Kaizen has kindled considerable interest among researchers because it

increases productivity of the company and helps to produce high-quality products with minimum

efforts. Several authors have discussed the concept of Kaizen including Deniels (1996), and Reid

(2006) etc. According to Imai (1986), Kaizen is a continuous improvement process involving

everyone, managers and workers alike. Broadly defined, Kaizen is a strategy to include concepts,

systems and tools within the bigger picture of leadership involving and people culture, all driven

by the customer. Watson (1986) says that the origin of Plan-Do-Check-Act (PDCA) cycle or

Deming cycle can be traced back to the eminent statistics expert Shewart in the 1920s. Shewart

Introduced the concept of PDCA. The Total Quality Management (TQM) Guru Deming

modified the Shewart cycle as: Plan, Do, Study and Act.

The Icfai University Journal of Operations Management, Vol. VIII, No. 2, 2009 divided into CI

and innovation. Kaizen signifies small improvements that have been made in the status quo as a

result of ongoing efforts. On the other hand innovation involves a step—improvements in the

status quo as a result of large investments in new technology and equipments or a radical change

in process design using Business Process Re-engineering (BPR) concept. Hammer et al. (1993)

explain that Kaizen generates process-oriented thinking since processes must be improved before

better results are obtained. Deming (1995) highlights that organizations are evolved at a greater

rate than at any time in recorded history. Since organizations are dynamic entities and since they

reside in an ever-changing environment, most of them are in a constant state of flux.

Under such a background history of the essentiality of kaizen is a very important hence, at the

Policy Dialogue Initiative Africa that was staged in Addis Ababa in 2008 “the master plan study

for implement of quality and productivity in Tunisia” and “development Enterprise of Asia”

were introduced by Japanese International cooperation Agency (JICA) and attracted strong

interest of higher Governmental official according to (EKI and JICA 2013). Further, added

subsequently, the Government of Ethiopia issued to the japans.

2.2.1. The Kaizen Philosophy

Improvement has become an integral part of theories and models of change such as structure

theory (Pettigrew, 1990), Ideal types of change (Van de Ven & Poole, 1995), and cycles of

organizational changes within revolutionary, piecemeal, focused, isolated and incremental

changes (Mintzberg & Westley, 1992). Imai (1986) introduced Kaizen into the western world

when outlined its core values and principles in relation to other concepts and the practices

involving the improvement process in organizations (Berger, 1997). Framed as Continuous

Improvement (Lillrank & Kano, 1989; Robinson, 1991), the Kaizen philosophy gained

recognition and importance when it was treated as an overarching concept for Total Quality

Management (TQM) (Imai, 1986; Tanner & Roncarti, 1994; Elbo, 2000), Total Quality Control

(TQC) or Company Wide Quality Control (CWQC) citing practices such as Toyota Production

Systems (TPS) and Just in time (JIT) response systems (Dahlgaard & Dahlgaard-Park, 2006) that

is aimed at satisfying customer expectations regarding quality, cost, delivery and service

(Carpinetti et al., 2003; Juran 1990). With this focus on improvement, the Kaizen philosophy

reached notoriety in organizational development and change processes and has been explained as

the “missing link” in western business models (Sheridan, 1997) and one of the reasons why

western firms have not fully benefited from Japanese management concepts (Ghondalekar et al.

1995).

Kaizen is a compound word involving two concepts: change (Kai) and to become good (zen)

(Newitt, 1996; Farley, 1999). To engage in Kaizen therefore is to go beyond one’s contracted

role(s) to continually identify and develop new or improved processes to achieve outcomes that

contribute to organizational goals. Kaizen can be understood as having a spirit of improvement

founded on a spirit of cooperation of the people, suggesting the importance of teams as a

fundamental design in this approach (Tanner & Roncarti, 1994; Imai, 1997). Based on the past

literature, the researcher summarize that Kaizen methodology as (1) one that involves all the

employees of the firm; (2) improving the methods or processes of work; (3) improvement are

small and incremental in nature and (4) using teams as the vehicle for achieving theses

incremental changes.

Kaizen philosophy, however, includes the concept of Kaizen (Continuous Improvement) and

Kairyo (Process Improvement). Imai (1986) proposes that the Kaizen philosophy embraces four

main principles: Principle1: Kaizen is process oriented. “Processes need to be improved before

results can be improved according to Imai”, (1986:16-17). “Principle2: Improving and

maintaining standards. Combining innovations with the ongoing effort to maintain and improve

standard performance levels is the only way to achieve permanent improvements” according to

(Imai, 1986:6-7). Kaizen focuses on small improvements of work standards coming from

ongoing efforts. “There can be no improvement if there are no standards” (Imai, 1986:74). “The

PDCA cycle (Plan-Do-Check-Act) is used to support the desired behaviors. This cycle of

continuous improvement has become a common method in Kaizen; it is used to generate

improvement’s habits in employees”. Principle3: People Orientation. Kaizen should involve

everyone in the organization, from top management to workers. One of the strongest

mechanisms aligning with this third principle is Group-oriented Kaizen (Imai, 1986). Kaizen

teams focus primarily on improving work methods, routines and procedures usually identified by

management (Imai, 1986).

The objectives of Kaizen:

The benefits of Kaizen includes increasing number of private enterprises will implement quality

and productivity improvement. The success of the Kaizen implementation also established to

disseminate Kaizen to private enterprise in sustainable manner (EKI and JICA, 2013). Kaizen

aims for improvements in productivity, effectiveness, safety, and waste reduction, and those who

follow the approach often find a whole lot more in return: Less waste – inventory is used more

efficiently as are employee skills; People are more satisfied – they have a direct impact on the

way things are done; Improved commitment – team members have more of a stake (a share or

interest in business) in their job and are more inclined to commit to doing a good job; Improved

retention – satisfied and engaged people are more likely to stay; Improved competitiveness –

increases in efficiency tend to contribute to lower costs and higher quality products; Improved

consumer satisfaction – coming from higher quality products with fewer faults; Improved

problem solving – looking at processes from a solutions perspective allows employees to solve

problems continuously; Improved teams – working together to solve problems helps build and

strengthen existing teams (Ibid).

To build ownership and establishing the acceptable working culture / environment

because kaizen relies heavily on a culture change that encourages suggestions by operators who

continuously try to incrementally improve their jobs or processes, continues improvement in a

sustainable manners. To determining capital cost projects, To involves slow but steady

incremental improvements, To create participatory approach on creativity and arrange work-

shop setting to minimizing time wastage during producing goods, To create zero defect

production in the production line according to Federal TVET bureau (2014) .

Benefits of Kaizen

The benefits of Kaizen include the participation of all collaborators in improving and

transforming (evolving) the organization in small, every day, incremental steps that do not lose

effectiveness over time. Benefits of implementing Kaizen accordingly EKI further added about,

Improves profit, Improves customer satisfaction, Discovers hidden talents, Promotes self-

development Improves the motivation and morale of employees at each level, Enhances

communication between top bottom level, Helps to build and improve team work, Creates

ownership and trust within each other, reducing waste, proper use of time by making proper

layout of the machinery getting space and the set up of the entire enterprise premises, Engages

and empowers employees at all levels, And improves the overall work environment. According

to (EKI 2013).

Kaizen application and implementation

Kaizen implementation is not a once a month or once a year activity. It is continuous. According

to Imai (1997) to express the rate of the worker participation in terms providing important

suggestion for their organization Japanese companies, such as Toyota and Canon, a total of 60 to

70 suggestions per employee per year are written down, shared and implemented. In most cases

these are not ideas for major changes. Kaizen is based on making little changes on a regular

basis: always improving productivity, safety and effectiveness while reducing waste. Suggestions

are not limited to a specific area such as production or marketing. Kaizen is based on making

changes anywhere that improvements can be made. Western philosophy may be summarized as,

"if it isn’t broke, don't fix it." The Kaizen philosophy is to "do it better, make it better, improve it

even if it isn't broken, because if we don't, we can't compete with those who do." Kaizen in Japan

is a system of improvement that includes both home and business life. Kaizen even includes

social activities. It is a concept that is applied in every aspect of a person's life. In business

Kaizen encompasses many of the components of Japanese businesses that have been seen as a

part of their success. Quality circles, automation, suggestion systems, just-in-time delivery,

Kanban and 5S are all included within the Kaizen system of running a business. Kaizen involves

setting standards and then continually improving those standards. To support the higher

standards Kaizen also involves providing the training, materials and supervision that is needed

for employees to achieve the higher standards and maintain their ability to meet those standards

on an on-going basis. Kaizen is focused on making small improvements on a continuous basis

according to Imai (1997).

Many scholars in the field believe that there are certain minimal conditions which have to be met

for successful implementation of kaizen. This includes conducive political framework,

harmonious social relations, compassionate and sympathetic attitude, capacity to take individual

as well as collective responsibility, and ability to work collectively or high social capital to

mention a few according to Ohno and et al, (2009)

Applicability to developing countries

The philosophy, concept, and tools of kaizen have been adopted not only in Japanese firms but

also in many multinational corporations in the US and Europe. Many studies note that, in both

Japan and abroad (especially in the cases of American and European companies), leadership is

the single most important factor for successful implementation of kaizen according to Imai, and

Kaplinsky, cited in Ohno, (2009) This implies that it is possible to apply kaizen in countries

with different socio-cultural contexts but that application must be conducted under proper

leadership and with adjustments that reflect the uniqueness of the targeted society (Ibid).

Roles of Managements and Employees Function in KAIZEN

When we see bureaucratic application of the management system it has perceptual difference

between western nations and Japan regarding job function. 1. Western Approach: Importance to

systems and procedures are as follows, through systems an organizational level and functions are

established. Focus is on control i.e. functioning 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. 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 according to Imai

(1986). 2. 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 according to Imai (1986).

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. For more understanding you can see the picture in

the appendix part No__ from the picture which found in the appendix 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. 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 according to Imai (1986).

The Roles of Various Levels under KAIZEN

1. Top Management: they work as a. Establish Kaizen as a corporate policy. Work out strategies

for implementation of Kaizen management philosophy in the MSEs. (b). Allocate resources, extend,

support guidance and provide direction according to Imai (1986). .

(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 according to Imai (1986).

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 upgrade existing standards through improvements. (d.)

Provide assistance to workers to develop skills and acquire knowledge on problem solving tools.

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 according to Imai (1986).

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.

2.3. Technique and implementation of Kaizen family

Indeed an integral part of Total Quality Management (TQM) is Kaizen therefore

reciprocally related terms. When an organization / company want to maintain a level of quality

that satisfy their customers at the appropriate time and price then that organization must follow

some quality management techniques for fulfill those principles and planning. According to

Masaki Imai (1986) the techniques associated to Kaizen included are: TQC/TQM, JIT, TPM, 5s,

Benchmarking, skill gap analysis, six sigma the information about it found under TQM, Policy

Deployment, a Suggestion System, Small-group activity,etc.

The System and Technique of Kaizen families focuses on the

following

Under Organizational performance and effectiveness it has, TQM/Kaizen, Six Sigma and BPR

are the meager ones. These are generally expressed in terms of a way of life for an organization

as a whole, committed to total customer satisfaction through a continues process of improvement

or and application of radical change, and the contribution and involvement of people. This topic

also emphasize on explanation about the features of TQM and kaizen in detail.

Total Quality Management (TQM)

One particular 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).

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. Deming

cited in, (Ibid), drew attention to the importance of pride in work and process control, and made

constant reference to the importance of ‘good management’ including the human side of quality

improvement and how employees should be treated.

The successful organization should as a matter of policy be constantly seeking opportunities to

improve the quality of its products and/or services and processes. The organization must also

couple quality with a required level of productivity. The chartered management institute gives

the following definition: according to, (Ibid: 782.)

TQM is a way of managing which gives everyone in the organization responsibility for delivering quality to the final customer; quality being described as ‘fitness for purpose’ or as ‘delighting the customer’. TQM views each task in the organization as fundamentally a process which is in a customer/supplier relationship with the next process. The aim at each stage is to define and meet the customer’s requirements with the aim of maximizing the satisfaction of the final consumer at the lowest possible cost.

Implementation of TQM and Kaizen

If TQM is to be implemented successfully it must be seen as a total process involving all

operations of the organization and the active participation of top management. It demands a

supportive organizational culture and a programme of management change. TQM places

emphasis on the involvement of people as the key to improved quality. It involves changes to the

traditional structure with greater emphasis on natural work groups, multi-discipline working and

team-based management. Attention must be given to effective education and training,

empowerment and the motivation to take ownership of quality, and systems of communications

at all levels of the organization. A related successor to TQM is the balanced scorecard.

According to Drummond cited in, Ibid, puts forward an interesting debate on comparing the

philosophies and ideas of Deming with Taylor’s Scientific Management, and questions whether

Deming’s ideas are as radical as they seem. Drummond suggests: cited in Mullins (2010)

Total quality management practices perform in the biggest change in the past two decades in the

way company are managed i.e. connect to reward practice. If managers want better performance

from TQM they must implement supportive monetary reward practices. Firms with such

practices in place report stronger organizational performance. Under these themes it is also found

Kaizen but while at the first parts of the study i.e. definition parts of the study already mentioned,

hence you can refers it.

The theme Kaizen is 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. Kaizen was introduced in several Japanese organizations after the Second World War

and is particularly associated with Toyota. The approach 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 it includes social life outside the working environment according to Mullins

(2010).

Six Sigma

Six Sigma the concept is quality initiative programme for change and continuous improvement,

based on the use of statistical analysis and computer simulation for the definition, measurement

and reduction of defects and waste. The principle of Six Sigma is the establishment of optimum

specifications for processes and products. 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… according to MULLINES (2010)

The Just- in-Time Production System, Originating at Toyota Motor Company under the

leadership of Taiichi Ohno, the just- in- time (JIT) production system aims at eliminating non

value-adding activities of all kinds and achieve a lean production system that is flexible enough

to accommodate fluctuations in customer orders. Just – in – time principles to produce only the

units in the right quantities, at the right time, and with the right resources, Applicable. “This

production system is supported by such concepts as takt time (the time it takes to produce one

unit) versus cycle time, one -piece flow, pull production, jidoka (“autonomation”), U-shaped

cells, and setup reduction” according to Masaki Imai (1986:9). To realize the ideal JIT

production system, a series of kaizen activities must be carried out continuously to eliminate

non-value- adding work in gemba. JIT dramatically reduces cost, delivers the product in time,

and greatly enhances company profits.

Total Productive Maintenance: An increasing number of manufacturing companies now

practice total productive maintenance (TPM) within as well as outside of Japan. Whereas TQM

emphasizes improving overall management performance and quality, TPM focuses on improving

equipment quality. TPM seeks to maximize equipment efficiency through a total system of

preventive maintenance spanning the lifetime of the equipment. Just as TQM involves everybody

in the company, TPM involves every - body at the plant. The five S will discuss in under,

another pivotal activity in gemba, may be regarded as a prelude to TPM. However, 5 S activities

have registered remarkable achievements in many cases even when carried out separately from

TPM according to Imai (1986).

The 5S for work place organization, 5s is not only the basic technologies to promote

Kaizen, but also a prerequisite for KAIZEN implementation. which are five Japanese

words that have equivalent meaning with English terms is as follows: 5s originally stands for

Sort=Seiri, Set-In-Order=Seiton, Shine=Seisou, Standardize=Seiketsu, Sustain=Shitsuke. It is

well-known but difficult to practice. But if you can install it successfully, you realize the cost

effectiveness of 5s. Let’s try 5s in your place for every one accordingly the further information

for application of the above Japanese terms can found in training material of Federal TVET

Bureau (2013).

Policy Deployment, although kaizen strategy aims at making improvements, its impact may be

limited if everybody is engaged in kaizen for kaizen’s sake without any aim. Management should

establish clear targets to guide everyone and make certain to provide leadership for all kaizen

activities directed toward achieving the targets. Real kaizen strategy at work requires closely

supervised implementation. This process is called Policy Deployment, or in Japanese, Hoshin

Kanri cited in Imai (1986). First, top management must devise a long- term strategy, broken

down into medium- term and annual strategies. Top management must have a plan-to-deploy

strategy, passing it down through subsequent levels of management until it reaches the shop

floor. As the strategy cascades down to the lower echelons, the plan should include increasingly

specific action plans and activities. According to Imai (1986:10) farther explain a policy

statement along the lines of “We must reduce our cost by 10 percent to stay competitive” may be

translated on the shop floor to such activities as increasing productivity, reducing inventory and

rejects, and improving line configurations. Major Kaizen Systems | 9 Kaizen without a target

would resemble a trip without a destination. Kaizen is most effective when everybody works to

achieve a target, and management should set that target according to Imai (1986).

The Suggestion System: functions as an integral part of individual-oriented kaizen and

emphasizes the morale- boosting bene fits of positive employee participation. Japanese managers

see its primary role as that of sparking employee interest in kaizen by encouraging them to

provide many suggestions, no matter how small. Japanese employees are often encouraged to

discuss their suggestions verbally with supervisors and put them into action right away, even

before submitting suggestion forms. They do not expect to reap great economic benefits from

each suggestion. Developing kaizen -minded and self-disciplined employees is the primary goal.

This outlook contrasts sharply with that of Western management’s emphasis on the economic

benefits and financial incentives of suggestion systems (Ibid).

Small -Group Activities: A kaizen strategy includes small-group activities—informal,

voluntary, intra-company groups organized to carry out specific tasks in a workshop

environment. The most popular type of small-group activity is quality circles. Designed to

address not only quality issues but also such issues as cost, safety, and productivity, quality

circles may be regarded as group oriented kaizen activities. Quality circles have played an

important part in improving product quality and productivity in Japan. However, their role often

has been blown out of proportion by overseas observers, who believe that these groups are the

mainstay of quality activities in Japan. Management plays a leading role in realizing quality—in

ways that include building quality-assurance systems, providing employee training, establishing

and deploying policies, and building cross-functional systems for QCD. Successful quality-circle

activities indicate that management plays an invisible but vital role in supporting such activities

(Ibid).

Kaizen Method

Kaizen methods for work process improvement that include making the improvements originated

in the World War II Job Methods training program. It was developed by the Training within

Industry (TWI) organization, a component of the U.S. War Manpower Commission during

World War II. Kaizen methods that suggest improvements also originated in the work TWI. As

suggestion rather than action improvement programs, Imai points out that, "Less well known is

the fact that the suggestion system was brought to Japan...by TWI (Training within Industry)

Imai, (1986:112).

Huntzinger (2002) also traces Kaizen back to the Training Within Industry (TWI) program. TWI

was established to maximize industrial productivity from 1940 through 1945. One of the

improvement tools it developed, tested, and disseminated was labeled. It taught supervisors the

skill of improving work processes. This program's name was changed to "How to Improve Job

Methods" (Production Board, 1945:191) and is most often referred to as Job Methods training. It

taught supervisors how to uncover opportunities for improving work processes and implement

improvements. It incorporated a job aid that reminded the person of the improvement process.

This process began with recording the present method of operation including details about

machine work, human work, and materials handling - much like a process observations would. It

used challenging questions, to provoke the discovery of improvement opportunities. It provided

tips for eliminating waste - e.g., discards unnecessary steps, combine steps where possible,

simplify the operations, and improve sequencing. It incorporated operator involvement in

identifying waste and developing better ways to do the process. It instructed people to check out

their ideas with others, conclude the best way to make the improvement, document it, get

authorization, and make the improvement. Its improvements included classic poka yoke

solutions like the use of jigs and guides to reduce or eliminate errors. TWI emphasized

incremental improvements focusing on the processes closest to the person and making

improvements that did not require wholesale redesign of machines or tools.

Hence, the techniques of kaizen application are more things but it is better concluding that.

Kaizen forms an umbrella that covers many techniques including Kanban, total productive

maintenance, six sigma, automation, just-in-time, suggestion system and productivity

improvement, mention in the above etc. according to Imai, (1986)

Kaizen advocate that all the time before the problem rice in the organization they can use

deferent problem identification method. Hence, the information about the stage of human capital

development, skill gap analyses and benchmarking detail practices as following.

2.4. Precondition necessary to implement Kaizen training

Since Kaizen implemented in the enterprises are new several problem have been observed in

both Enterprises and in the TVET. The Stage of Human Capital Development: since the Kaizen

advocate life-long learning. To conduct effective management leadership should use professional

development, self development, excellence model, assessing organizational performance and

effectiveness like benchmarking, gap analysis among other to become competitive, to improve

the skill, to sustain the effectiveness and performance of management leaders.

The most effective forms of development activity are those connected directly to managers’

experiences in the workplace. The belief that ‘leaders are born and not made’ has finally been

eclipsed by the implementation of job experience. The ability to facility organizational learning

and to lead through ethical/ value-based behavior are identified as priority areas. Continuing

professional development (CPD), management development should be seen as continues us

process including the preparation for and responsibility of a new job, and subsequent career

progression. in resent years greater recognition has been to the significance of lifelong learning

and to continuing professional development (CPD). Regarding CPD as vital to a successful

career and requires all members to make a commitment to their own professional development.

CPD is liked to gaining the status of chartered manager according to Mullins (2010). Hence,

human capital development are the very important things to evolved and create skilled individual

live without job to become long last employment. The conception of human capital development

underlies most vocational education and training programmes and it consists of at least four

different stages or outcomes which are causal and sequential so that if any one of them is

missing, the subsequent stages are aborted. The last stage is (4) creating long-run employment

and non-employment outcomes. How far achieve the last stage suggested in the above? By

achieving the last stage we can assure social welfare peaceful living for the people. The

organization should confirm lifelong learning and try to identify the human resource skill and

knowledge gap to fix from the dynamic economy and world of work.

There is a wide range of interrelated individual, group, organizational and environmental

influences on behavior in work organizations. If possible it is better to use developed nation

mostly used Excellency model in under professional development. Accordingly there are many

different criteria that might be applied in attempting to assess performance and effectiveness.

Popular management techniques include benchmarking and gap analysis we are using. Growing

attention has been given to measures of performance in the public secretor but there is a potential

difficulty in measurement of a service ethic. The overall effectiveness of the organization is

affected both by sound structural design and by the individual filling the various positions within

the structure according to Mullince (2010)

Benchmarking

Businesses in both public and private sectors seek to continuously improve the effectiveness and

efficiency of their products and services. In this regard, a number of changes have passed

through the practices of most organizations recently, especially concerning the management

accounting aspects. Business units are reviewing their costs, structures and the efficiency of their

functions. In response, the managers have undertaken a review and benchmarking of their

organizations’ costs and the efficiency of business units despite having developing strategies to

control other operating costs. As such, benchmarking has reached widespread diffusion and is

now considered as one of the most powerful tools for promoting process improvements and re-

engineering in many prominent organizations. Benchmarking is a popular method for developing

requirements and setting goals….The benchmarking is becoming more commonly used and it is

a more efficient way to make improvements. Managers can eliminate trial and error process

improvements….according to department of trade and industry American Productivity and

Quality Center (APQC) material cited in Abdullah (2009)

Whichever type is conducted, there are four main steps, as illustrated by the following

Benchmarking. Roadmap and explained more fully in the following section:

Stakeholders Executive champions

Process sponsor Benchmarking teamFunctional expertsResearch reports

Benchmarking

Partners_________________________________________________________________

Trigger for

change

Step1 Plan

the study Step 4 adapt

Step 2 collect data

Step 3 analysis data

The steps can include:

Step 1–Plan the study: Establish benchmarking roles and responsibilities, Identify the

process to benchmark, Document the current process, Define the measures for data

collection

Step 2–Collect the data, Record current performance levels, Find benchmarking partners,

Conduct the primary investigation, Make a site visit

Step 3–Analyses the data, Normalise the performance data, Construct a comparison matrix to

compare your current performance data with your partners’ data, Identify outstanding practices,

and Isolate process enablers

Step 4–Adapt enablers to implement improvements, Set stretching targets, “Vision” an

alternative process, consider the barriers to change, Plan to implement the changes

Gap analysisGap analysis involves an investigation of the gap between the vision, objectives and goals of the

organization and actual levels of performance, and establishing the actions necessary to bring

activities in line with that which is planned. For instant the larger quantity of non-financial

measures that most companies track, and the extent to which such measures are aligned with the

company’s strategies and value drivers. One method for assessing this alignment is gap analysis’

which requires managers to rank performance on at leasing two dimensions: their importance to

strategic objectives and the importance to strategic objectives and the importance currently

placed upon them. The importance of a collective understanding and vision of what the

organization is capable of achieving, expressed as short-term goals and long-term vision; and to

creating superior performance through inspired and committed people. The extent of the gap is

the basis for a shared understanding of the gap between current capability and the desired state,

the extent of the gap is the basis for a shared understanding of what needs to be achieved, and

potentially the energy for the journey according to Mullines (2010).

2.5. Kaizen verses BPR and other application strategy

Business Process Re-Engineering (BPR)

Business Process Re-Engineering (BPR) and Total Quality Management (TQM) both are

organizational performance and effectiveness it has also a debate between the two, Several

authors write about the theme of TQM according to MULLINES (2010).

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: cited in MULLINES (2010),

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.

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 with 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 Mullins (2010).

Relationship with TQM/ Kaizen

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 according to Mullins

(2010).

Decline of Re-Engineering

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 has surfaced about the effectiveness of re-engineering. 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 according to MULLINES (2010),. Stern cited in Mullins (2010) however, suggests that

downsizing and restructurings of immense size were justified by BPR according to (Ibid).

Kaizen versus BPR

When we Examination of Kaizen vs. BPR management techniques, First the applicability and

compatibility of these foreign management techniques to the Ethiopian context. Second, which

management technique- Kiazen /BPR - is the appropriate way of applying organizational

performance and effectiveness to transform enterprises in a better condition? And third, since

the possibility of implementing both management techniques is probable, we can also analyze

the possible different between, Kaizen and BPR techniques. Put differently, is a company

that has undergone BPR (Kaizen) suitable platform for the application of Kaizen (BPR)

principles? Let’s start answering these questions using the following tabular analysis and the

detail explanations follow the table according to Berihu (2010).

Table 4. Kaizen versus BPR

Feature Kaizen/TQM BPR

Management, culture and innovation the

Applicability globally

It’s Focused on demands timeliness(JIT) Kaizen are consistent to innovation all workers, skill, motivation, and Kaizen is applicable across different Cultural settings. This is so because the most important defining factors for Kaizen are workers’ skills, motivation, and top management commitment. Kaizen helps enterprise become several times as competitive as they are now.

BPR is focused on expensive technology or

Innovation hence has almost nothing to do with cultural differences. The management system of applying innovation is concerned only on top management than workers

Appropriate developmentAnd learning environment

Suitable for developing countries whose MSEs perform along traditional lines and works well for slow-growth it is costly match. It support lifelong learning adaptability flexibility the organizational response also paradigm shift. Focused on lifelong employment

BPR is better suited for developed nation, fast changing. Economies that can invest in new technologies and innovations. Since it is time bounded no longer emphasis for learning but it assign the worker after full implementation Right person at the right place.

Pace of change Incremental gain may often take a number of years to complete. Focused on minor, slows and incremental improvement

Re-engineering as opposed and no-room for incremental change. It is abrupt once and for all large step. Radical design of business process to achieve breakthrough results.

measurement and Stability

It is easy to assess the overall success or failure of the enterprise. Changes are Highly stable, predictable and keep going over time sustain the business

Difficult to measure and the overall success of the enterprise Changes are spontaneous and

less predictable, failed change program Investment orientation

Kaizen directly works on workers and managers and makes them several times as competent as they are now

BPR focuses customer satisfaction alone such as cost, quality, service and speed.

Bureaucratic system business system

It is fully decentralized (bottom up) management system non -judgmental, non-blaming .both friendly for customers and employees ,supports Collectivism business environment like Toyota car

Centralized It is exposed to Downsize and stand for restructuring layoffs happens during implementation it is exposed to persona l attack and revenge, it is the supports individualism business environment like Hammer car

Cost Without or less costly i.e. with current resourcesKaizen can be implemented even start with zero initial

Fundamental rethinking and radical design of business process to achieve dramatic improvements. Requires huge investment Outlays.

Everyday application

It focused on prevention not cure. Kaizen is practiced every time. This continuous application nature of Kaizen helps solve whenever flaws arise in the process.

It focused on cure not prevention. BPR can’t be used on every day basis. Hence, it Can’t be used whenever flaws are detected in the process.

Initial source Faculty of Financial Accounting Management Craiova But amended by the researcher

Indeed all organizational performance and effectiveness have its own strength and weakness

but the researcher paying attention on KAIZEN/TQM. Certainly the originators of TQM is

USA but properly applied in their almost entire Japanese industry. It can be concluding that

the main differences between Kaizen and BPR as follows. MacDonald and Dale (1999)

indicated Firstly, large step changes (BPR) are riskier, more complex and more

expensive than continuous improvement (Kaizen). This implies that Kaizen may be

preferable for developing countries for certainty, cost and simplicity reasons. Secondly,

BPR places more emphasis on equipment and technology rather than people; Kaizen is the

opposite. Given that developing countries are relatively technology scarce and labour

abundant though workers in developing countries may not be highly skilled, their

comparative advantage appears to lie in implementing Kaizen. Thirdly, re-engineering

tends to concentrate on one process at a time using a project planning methodology,

whereas Kaizen takes a more holistic view of the organization, building improvement into

all aspects of business operation.

2.6. Managerial Behavior and Effectiveness implementing Kaizen

Managerial Behavior and Effectiveness brought by the nature of the work environment and the

association between organization and individual draws attention to the traditional boss-

subordinate relationship. There appears to be a growing recognition that managers can no longer

rely solely on their perceived formal authority as a result of a hierarchical position in employee

relations today has to be on the individual and their position in the workplace.

“This changing relationship suggests that more than ever an essential ingredient of any successful manager is the ability of handle people successfully. There is therefore a heavy responsibility on managers and on the styles and systems of management adopted” according to J. Mullins (2010:475).

Supervision Models & Theories according to Jeremy C Bradle (ND) Effective managers

understand the importance of utilizing different supervision models. Business owners have a key

responsibility in supervising and managing employees. There are three models and theories on

supervision that have become widely popular: theory X, theory Y and theory Z. While these

three models take different approaches to supervision, skilled and experienced managers can

combine elements of each and to apply different models to varying workplace situations in his

psychological- models he further note that the hierarchy of needs, theory X, Y and theory Z as

follows.

According to Mullins (2010) managers achieve results through the utilization of human resources

and the efforts of other people. The manner in which managers exercise their responsibilities and

duties is important. The actions and behavior of managers and their style of management will

influence the effort expended and level of performance achieved by members of staff and

organizational effectiveness. Contrast the different attitudes and assumptions of managers about

human nature and behavior at work; examine managerial styles in terms of concern for

production and concern for people. It includes assess different systems of management.

Theory X, proposed by Douglas McGregor, states that most people innately dislike working;

they do it because they need the money, because it provides some security or because it helps

them feel safe. As a supervision model, theory X advocates the close monitoring of employees,

saying managers constantly should be encouraging their employees to do more. (Ibid)

Theory Y also was proposed by McGregor, but it contends that some employees like working

and even enjoy it. These workers find satisfaction in a job well done, and they may have personal

or professional goals that serve as innate sources of encouragement and motivation. As a

supervision model, theory Y advocates that managers spend less time looking after their

employees and more time providing a comfortable and friendly work environment. (Ibid).

Japanese Theory Z environment, Theory Z is a relatively new supervision model that grew from

perceived inadequacies with theories X and Y. This model is sometimes called the Japanese

model of management because it takes it cues from Japan's focus on employee loyalty. In

contrast to the traditional, more bureaucratic American organizational environment, Ouchi

recommends a Japanese-style Theory Z environment according to Mullinse (2010). ….“Note

also that while many British and US organizations once attempted to imitate Japanese methods

and styles of management, with mixed results, there is now evidence of a reversal of this trend,

with Japanese corporations moving away from a Theory Z environment and restructuring along

the lines of western organizations” according to Mullinse (2010:460).

The application of Theory Z offers several such ways, Long term employment, often for a

lifetime; Relatively slow process of evaluation and promotion; Development of company-

specific skills, and moderately specialized career path; Implicit, informal control mechanism

supported by explicit, formal measures; Participative decision- making by consensus; Collective

decision-making but individual ultimate responsibility; Broad concern for the welfare of

subordinates and co-workers as a natural part of a working relationship, and informal

relationships among people.

It can conclude that the responsibility of managers to achieve results through the efforts of other

people this involvements the effective management of human resources. The way in which

managers exercise their authority and carry out their responsibilities is important. The changing

nature of the work environment is reflected in changing in the traditional boss-subordinate

relationship. The style of management adopted, and the behavior displayed towards subordinate

staff, is likely to be conditioned by theory X and Y Theory Z predisposition about people, human

nature natural and work.

Concepts of Japanese Management System

Japanese Management System (JMSs) as well-designed management tools and techniques. The

most straightforward theory of the source of JMSs’ effectiveness emphasizes the production

system and the specificity, rational design, and coherence of policies that guide production

according to Shingo, et al (1989).

(Fruin, et al 1997a). In very broad strokes, their might say that the basis of wealth and power

over the last few centuries has progressed from land, to labor, to capital, and finally, at the end of

the 20th century, to knowledge. From this perspective, JMSs have succeeded because they re-

integrate the old manual/mental labor divide and allow for more effective factory-based

knowledge creation in the form of both continuous improvement and more radical product-

process innovation. JMSs’ effectiveness -- and indeed, the effectiveness of the tools and

techniques embodied in the production system -- derive in great part from the way they

encourage organizations to continually augment their knowledge stocks. A key feature of JMSs

highlighted in this view is the commitment to small-group activities as processes that integrate

individual and organizational learning (Cole, 1979; Lillrank and Kano, 1989; Fruin, 1998a).

Environmental health and Safety Management in Kaizen

All enterprises should have safety management systems, as part of their overall management of

the enterprises (in fact, there is a clear correlation between safely-run enterprises and well-

managed operations). A safety management system provides a structured approach to those

arrangements needed to achieve good safety performance within an enterprise. It should be based

on the Safety Policy. The system should define an ambition level that the enterprise considers

adequate for its business, as well as the safety concerns and requirements specific to their sites.

As a minimum, the requirements of the legislation and other imperative sources should, under all

circumstances, be fulfilled according to Waleed Al-Ghemlas (2004).

Train kaizen event team leaders to identify operational changes that may trigger EHS

involvement. These include changes that affect chemical exposure, compliance with regulations

and permits, pollution control management capacity, and work practice requirements…

according to Robert B. Pojasek (2004).

JMSs as a multi-stakeholder model of governance

The JMS researchers summaries the point that multi stakeholder model of governance the

attention inside the factory. But the effectiveness of JMSs, it could be argued, depends even

more strongly on broader governance structures. Corporations in Japan link stakeholders like

communities, unions, banks, suppliers and shareholders in distinctive ways Morikawa, (1992).

Many of the agency, property rights, and transaction cost models of governance that are based on

the experience of Western firms do not apply very well in Japan:

* Management and unions are not determined adversaries. The asymmetries between

managers and regular employees in terms of wages, authority, voice, rights, and benefits

are significantly muted.

* Close and long-standing relations with creditors and debtors encourage a long-term view

of the nature of competition and cooperation. Board members and top executives are

generally promoted from within firms. Hostile takeovers are rare and corporate control is

not contested Gerlach, (1992).

* Suppliers cooperate closely and without great concern for the appropriation of intellectual

property, the risk of losing key employees to competitors, or partners’ opportunism

Nishiguchi, (1994). Top executives of supplier firms are often dispatched from or recently

retired from large manufacturing firms. Suppliers are an integral part of the Japanese

system of production; they are part of a core firm’s operations in spite of their legal

independence. Production systems are integrated across the supply chain, organizational

learning spans company boundaries, and network position often defines the evolution of

technical capabilities Stuart and Podolny, (1996).

The more successful Japanese transplants are indeed attempting to recreate something akin to the

Japanese model. This represents a huge challenge, since it requires reshaping the expectations

and norms of local actors -- expectations and norms that have been formed by a long and very

different industrial, legal, and social history. The empirical research reported in this volume

casts light on the opportunities and constraints in the process.

Innovation Characteristics of Japanese Management Systems

Research on innovation diffusion has shown that the dynamics of diffusion depend crucially on

the characteristics of the innovation itself. Summarizing a large literature on the diffusion of

innovations, Rogers (1983) argues that innovations are more easily diffused if they have the

following features: high relative advantage, high compatibility with existing practices, low

intrinsic complexity, high trainability, and high observsability. The information also found in

under this table summarizes their assessment of JMSs.

Effects of company culture

Changes of mindset gives people an aim in their working life and have the potential to change

attitudes, so that the employees begin to think differently and are more willing to contribute to

company’s improvement initiatives. Stronger management control makes the organization

structure bureaucratic, which makes difficult the change from the existing ways of doing things.

Organizational culture is an essential element in lean implementation process and high-

performing companies are those with a culture of sustainable and proactive improvement efforts.

Culture readiness…. Organizational culture facilitates the integration of individual learning by

influencing the organizations’ ability to learn, share information and make decisions according to

Ana Valentinova Kovacheva(2010)

The goals of the organization may be pursued in accordance with an underlying ideology, or philosophy, based on beliefs, values and attitudes. This organization ideology determine the culture of the organization and provides a set of principles that govern the overall conduct of the organization’s operations, odes of behavior, the management of people and its dealings with other organizations. These sets of principles may be recognized and implemented informally as accepted conventions of the organization or they may be sated formally in writing according to Mullins (2010:705).

Leadership and core organizations

In Japan, the private sector took the initiative to create the core organizations responsible for

introducing, adapting and disseminating a method for improving quality and productivity. Three

non-profit, private organizations spearheaded this initiative—the Union of Japanese Scientists

and Engineers (JUSE), the Japan Productivity Center (JPC), and the Japan Management

Association (JMA). As summarized in Figure 1, these organizations played active roles in three

critical stages of technology transfer: (i) learning new technologies from advanced Western

countries; (ii) examining the adaptability and validity of technologies in Japan and making

necessary adjustments; and (iii) diffusing new technologies

Figure 1 the Role of Private Sector Organizations in

Development and Diffusion of Foreign Technologies

At the first stage, many study missions were dispatched to the US and Europe. Also, foreign

experts were invited for lectures. Mission reports and lecture notes were widely disseminated

among the organization members. Foreign text books and materials were translated and

distributed to companies and researchers, as well. At the second stage, various committees and

working groups were established, comprised of experts and researchers from industry,

government, and academia, to study the adaptability of foreign technologies and make necessary

adjustments. Pilot projects were also implemented. So, the private organizations did not simply

diffuse Western technologies in their original forms; foreign technologies were adapted to the

Japanese context through self-study. At the third stage, various measures were mobilized for

diffusing quality and productivity improvement technologies and developing the private sector

capability for providing consultancy on practical productivity improvement methods and

techniques. The measures included consulting services for guidance and advice; education and

training; qualification and certification systems; and a nationwide campaign through an annual

award ceremony, conventions and seminars, and newsletters and publications.

2.7. Introduction to Kaizen in Africa

Kaizen has become a global activity spread by multinational companies and their employees.

It has become popular not only in the manufacturing sector but also in the service sector.

However, proliferation of kaizen in Africa is still very small due to the limited number of

players and the philosophy the Government who bring in the practice. Due to this situation the

responsible Government body received the best practice of the Japans KAIZEN in their

premises. According to (EKI 2012) The Graduate Development Forum (GDF) is a policy

research unit of the National Graduate Research Institute for Policy Studies (NGRIPS) in

Tokyo Established in 2002, GDF works closely with frontline policy makers in Japan,

Southeast Asia, and Africa to improve the design and implementation of concrete

development policies. Since individual companies cannot be a major force in transferring

kaizen, the activities of the following four organizations are considered vital in transferring

the kaizen method to Africa the remaining three are the history of other continent. The fourth

phase, which is now beginning, has witnessed growing interest in East Asia’s industrial experience in

other developing regions (including Africa). However, outside, interest in and knowledge of the East

Asian approach often remains general and insufficient, and has not been operational with practical

details according to Ohno and et al, (2009).

For the effectiveness of the KAIZEN they commence it as institute, Kaizen Institute is an

international private consultant group that specializes in the kaizen method. It has licensed

networks throughout 24 countries from which consultants provide services globally. In Africa,

its subsidiary institute opened in several African countries including Ethiopia. Their

performance has proved that the kaizen method is much needed and commercially viable.

There are also other unlicensed consultancies firms, which can provide training on kaizen.

When we observe in the Japanese context all of KAIZEN consultants are private company. Yet,

these private services are still the domain of medium and large-scale companies, and their

services are not affordable for most micro and small enterprises in Africa according to (Ibid.)

Another organization which supports it is JICA; The Japan International Cooperation Agency

(JICA) is the executing agency for official development assistance from the Government of

Japan. JICA’s activities cover a variety of subjects, and kaizen is one of the activities often

undertaken by JICA under the subject of private sector development. A characteristic of JICA’s

assistance is that the content of each project is customized according to the needs and

conditions of the recipient country. Kaizen activities are often found project titles such as

“productivity improvement.” In Africa, are on-going be efficacies from the kaizen projects

assisted by JICA according to Ohno and et al, (2009).

Kaizen policy and strategy in the African context

Application of kaizen activities to African manufacturers are not only disadvantaged by the

technological gap but also by the lack of knowledge in key managerial methodologies like

kaizen. While engineering capacity and effective managements of organizational development

may take time to catch up and to implement in any enterprises. Kaizen is more to do with a

philosophy, discipline by positive changing of the manager the and daily practices rather than

techniques. For example, 5S can be taught not only in the TVET but also in the primary school

students since the philosophy is Sort, Straighten, Shine, Systematize, and Standardize. The

beauty of kaizen is that it can realize productivity improvements with little additional

investments. Simplicity and cost effectiveness are the major reasons why kaizen is well

appreciated globally Ohno and et al, (2011).

Learning lessons from East Asia does not mean copying policies adopted somewhere in East

Asia randomly without critical examination of feasibility and desirability of applying them to an

African country. The postal saving system of Japan, the New Village Movement of South

Korea, the National SME Development Council of Malaysia, or any other specific policy of

East Asia, can hardly be introduced directly to any of the developing countries of today, be it in

Africa or elsewhere, because internal and external situations are different from one country to

another as well as from one age to another Ohno and et al, (2011)..

Moreover, industrial strategies in East Asia have also been diverse. Singapore’s state-led

approach to human capital development had little similarity with Hong Kong’s laissez-faire

approach to commerce and finance. Malaysia’s well-structured policy coordination does not

resemble Thailand’s more flexible industrial promotion. In fact, East Asia is a region where a

variety of approaches to development have been tried. For this reason, there is no single East

Asian model to be imitated at the level of concrete policies according to Ohno (2011). If there is

a lesson Africa can learn from East Asia, it should be how policy is formulated and executed, not

what particular countries in East Asia did at certain moments of their history. The lesson is about

mindset and methodology that can instruct an African country to produce a policy package with

appropriate contents and sequencing for that country, and ensure its implementation. For

collecting specimens of concrete policy models, the search should cover the entire globe and not

just East Asia. But once collected, East Asian experiences may illustrate how these models

should be selected, combined, modified, and implemented under strong country ownership

according to Ohno et al (2011)…

Hence, there are many reasons why kaizen was so developed in Japan transform in to the East

Asia and Africa. One reason is that, After the Second World War Japanese private associations

played a very important role in disseminating quality and productivity improvement (Kaizen)

technology (including techniques and skills) widely to Japanese industrial sector according to

Ethiopian Kaizen Institution (2013).

Current needs of TVET in the view of African Union and Donors

According to African Union (2007:3) there is a fresh awareness among policy makers in many

African countries and the international donor community of the critical role that technical and

vocation education and training (TVET) can play in national development. The increasing

importance that African governments now attach to TVET is reflected in the various Poverty

Reduction Strategy Papers that governments have developed in collaboration with The World

Bank. One of the most important features of TVET is its orientation towards the world of work

and the emphasis of the curriculum on the acquisition of employable skills. TVET delivery

systems are therefore well placed to train the skilled and entrepreneurial workforce that Africa

needs to create wealth and emerge out of poverty.

Another important characteristic of TVET is that it can be delivered at different levels of

sophistication. This means that TVET institutions can respond to the different training needs of

learners from different socioeconomic and academic backgrounds, and prepare them for gainful

employment and sustainable livelihoods. This vision is predicated on the development of the

continent’s human resources. According to African Union strategic plan of Action for the Second

Decade of Education (2006 – 2015), the AU recognizes the importance of TVET as a means of

empowering individuals to take control of their lives and recommends therefore the integration

of vocational training into the general education system. The AU also recognizes the fact that

vast numbers of young people are outside the formal school system, and consequently

recommends the integration of non-formal learning methodologies and literacy programmes into

national TVET programmes.

Due to this fact TVET should work collaboratively with MSEs the support not only in the

formal education system but also those enterprises level their need to improve their production

and productivity the MSEs also serve TVET demands of cooperative training to make the work

of TVET effectively.

Policy in Malawi

The One Village One Product (OVOP) policy in Malawi has been implemented in the centralized

structure, being led by the central government, its secretariat office, and a donor agency while

local governmental actors have gradually enhanced their capacity to support producers. The

OVOP concepts were modified to fit in the situation of Africa by using the terms such as poverty

reduction and empowerment according to Jun Yamazaki (2010)… the study also included…

Comparative Analysis Features of three OVOPs and their

relations

According to Jun Yamazaki (2010) by using the above Malawi we can compare and contrast

with that of the three countries it have considerably different features of one village one product

(OVOP) applications, while sharing similar principles. Table 4 summarizes the essential factors

in the three cases; among them some of the important findings about reliability will be discussed.

Table 4 Comparative Table

Sphere Variable Japan (Oita) Thailand Malawi

Policy Objective Revitalization of Locality

(Economic and Social Goals)

Rural income generation, rural industry,

community development

Poverty reduction, Community

empowerment of rural area

Concept Three Principles (Local yet Global,

Self-reliance and Creativity, Human

Three Principles,

ICT, Export Promotion, SME promotion

value adding, local resource

utilization, equity

Resource Development)

Idea of One Village Territory to share Territory and functional producers group Functional community group

Strategy of One

Product

Emphasis on Process,

specialization for improvement,

diversification of product and

income,

Wide range of products(Fresh Food,

Processed Food, Tourism, Culture)

Specialization by quality assurance,

Diversification of income,

Limited range of product (Food

Processing, Handicraft, Cosmetics),

Exportable

Focus on "Project", not product,

Diversification of income by food-

processing,

Very limited range of product

(Processed-food, handicraft)

Local Resources Symbol of Locality,

Origin of Competitiveness

Symbol of Locality,

Local wisdom, Local raw material, Local

labour

Natural resources and Raw material

Financial Assistance Limited Provided Main

Marketing and

Promotion

Start from Local Market,

Strong Intervention to Domestic

Market,

Creating Linkages,

Local Brand

Strong Intervention to domestic and

international market,

Creating linkage,

OTOP brand

Strong Intervention to mainly

domestic market,

Creating linkage,

OVOP brand,

Collective Learning Emphasis on Community, Leader,

Network across villages

Long term training

Focus on Leader of Producers,

Network building among producers,

Not focused

Human and Social

Development

Goal of OVOP,

Accept Competition and Inequality

Focused in principle, but limited in

instruments

Implicitly focused

Context Economic Context Developed country,

Urban-Rural gap

Middle-developed,

Urban-rural gap

Poverty

Demographic Context Depopulation Seasonal Migration Labour surplus in urban and rural

Political Context Centralized,

LG has authority and capacity

Being decentralized Being decentralized

Initial Context Political Leader's initiative Political Leader's initiative Political Leader's initiative,

Donor's will

Spatial Context High density,

Domestic market available,

High density,

Domestic market available but limited

Low density,

Limited market

Actors Local Government PG as a producer,

MG as a coordinator

Centralized,

Province and District as a facilitator and

Being decentralized, but

limited,local capacity,Community

Organization

Functional Community Groups led

production and social activities

Producer Group work for production Producer Group for production

Producers and

Business Association

Leadership of Agricultural

Cooperative

Producer Group becomes Enterprise Cooperative

Source Jun Yamazaki (2010)

Product development strategy is one of the essential issues of OVOP. Diversification of income

by introducing value-adding activities can be seen in all cases; however, there seem to be

differences in the extent of diversification and specialization of “products”. The range of

products likely reflects the difference of strategy, concept and characteristics of locality. Unlike

Oita’s OVOP products which include a wide variety of exportable and cultural products, Thai

OTOP mainly produces exportable products such as handicrafts and cosmetics products, and

most of the products of Malawi are processed foods. These differences might be explained by the

differences of product strategy, and also their emphasis on policy. Namely, Oita’s OVOP

concentrates on social development recognizing intangible products such as culture, Thai OTOP

prioritizes export-product, and Malawi’s case especially cares about adding value by processing

raw material. The differences of products obviously came from the difference of emphasis of

policy. OVOP theory doesn’t explicitly involve specialization of product as long as the product

is adequately improved; instead, OVOP rather focuses on the process, in which local actors

choose their own products to be marketed. This idea seems to be replicated in other countries

too, while higher tiers of government and other actors tend to hold more control on producers

possibly due to the political needs to make visible outcomes in other cases… according to Jun

Yamazaki (2010)

2.8. Introduction of Kaizen strategy in Ethiopia

The Government of Ethiopia implemented Organizational performance and effectiveness before

implementing Kaizen called BPR, shortly after the introduction of a nationwide Business Process Re-

engineering (BPR). According to Debela, (2009) Since 1994, the government of Ethiopia has

embarked on reforming its civil service organizations with the objective of improving the

public sector service delivery system It was applied in Government bureaus, an idea introduced to

bring radical changes among state institutions but, in the process, virtually stalled them for months and

now widely deemed to be a failure. The Ethiopian government started advocating the idea of kaizen–a

Japanese management philosophy–among private and state owned companies; the idea was first

brought to the attention of Ethiopia’s late PM Meles Zenawi in 2008 according to Negussie, (2009).

In this instant the government of Ethiopia inspires by the practicality of the Kaizen policy and

strategy adopt the exemplary approach. In 2008, the Government of Ethiopia as a result

requested the Japanese Government to help Ethiopia established the Japanese management

technique, known as kaizen. Before implementing and fully institutionalizing the kaizen Unit on

a large scale, the then Ethiopian Ministry of Industry and Trade (MOIT) reviewed about 63

companies in 2009 that were located within 100-kms of Addis Ababa to ascertain their quality

and productivity status from October 2009 to June 2011. After a preliminary diagnosis of the 63

companies only 30 companies (i.e., 10 from Metal; 6 from Agro processing; 6 from Chemicals; 4

from Leather and; 4 from Textiles) were chosen to serve as pilot projects. The criteria for

selected of Those companies are (a) had proximity or outskirts to Addis Ababa (i.e., they were

within 100km distance), (b) contributed towards export and /or import, (c) achieved scale of

capital, and (d) had qualified employees. As a result, in 2011, the Ethiopian Kaizen Institute

(EKI, in 2011) was established as a fully-fledged consulting Unit to assist in the development

and enhancement of the quality and productivity framework for the entire country, (Ethiopian

ministry of Trade 2011).

After a preliminary diagnosis of the 63 companies only 30 companies (i.e., 10 from Metal; 6

from Agro processing; 6 from Chemicals; 4 from Leather and; 4 from Textiles) were chosen to

serve as pilot projects. The end goals of EKI were Kaizen implementation in the companies

upgrading them in sustainable manners, there were the total of 30 pilot companies from this, ten,

five and three companies have been awarded good, bets and excellent status respectively by

Ethiopian kaizen unit EKI report document (2012).

The institute claimed that the outcome of the work in the enterprises was, value was added by the

firms and workers, and the profit margin of the pilot firms who want through the kaizen process

increased by 176 percent, 105 percent, and 210 percent respectively, mainly due to labor

productivity. The effect of material inputs, machinery, and energy was insignificant as cited

(Asayehgn Desta, in Ethiopian Herald Development Hits: 289). These indicate that after

implementation of kaizen the process includes center of competency takes place and

accreditation expected from the implementers.

The government allowed commencing the policy as strategy after observing the success full

implementation of the pilot project, in 2009/10 for 30 company and start full implementation

package in MSEs at grass root level (woreda level) and college level in 2011. The

implementation of programme started in the mentioned year at both levels, including 10 sub-

cities where industrial extension head and expert were assigned and at the 110 woredas industrial

extension head and technicians hold a post. Based on this idea, the organizational structure of

cluster center was formulated for the purpose of getting the financial allocation and for proper

management system of sharing responsibility from AACA TVET agency to TVET colleges and

institutions.

In Addis Ababa there are 12 cluster centers of collages out of which 6 are government colleges

and 6 others are private colleges according to (federal TVET statistics abstract 2012). Those 6

governments TVET which found cover in all sub city. The roles of these 6 public TVETs is

facilitating a group of TVET colleges and institutions together undertaking similar activities

through supporting each other by meeting, short term trainings and practical activities.

Particularly, TVET institutions are supported by cluster center since they are capable of their

managing structure and enough professionals to implement the kaizen practices and technical

skill training in the enterprise. The service of the cluster center including experienced trainer

acting as an adviser, collegial supervision, mentor, technology transfer, kaizen practice and

training in technical skill to TVET institutions. Therefore, the members in cluster are the group

of TVET institutions center in one college. For example, under Entoto TVET Cluster College

includes the institutions; (I) Shuromeda TVET institutions (II) Gulele Meseretawi TVET

institution (III) Berhane Ethiopia TVET institutions. Hence, Entoto TVET Cluster College is

one of the government colleges which get financial allocation from Addis Ababa TVET agency

carried out on the kaizen training implementation. Due to this fact, the TVET Colleges gain

support not only from the above mentioned institution but also kaizen training support from

Ethiopian kaizen institutions and from the originator expertise which comes from Japanese. After

pilot project implementation the government launch full implementation package of Kaizen

support for MSEs, In 2011/12 fiscal year the plan of the sample colleges was 12 MSEs

implemented with the collaboration of woreda industrial extension workers according to (Entoto

TVET documentation 2013). The field of service intended to implement was, for metal work 2,

MSEs, for wood work 4 MSEs, for construction 1 MSE, for food preparation 5 MSEs,with a total

of 12 MSEs. The categories of their business level it said to be association 12 totals in number.

The Reason of selection to implement the full package was model enterprises; the MSEs

accommodation is comfortable for cooperative training, their willingness to implement the full

package of kaizen implementation. During the implementation period the cluster center assigned,

total participant of the industrial extension service and technology transfer facilitators and

trainers of the college were 132.Out of this 45 participant were females. The assigned trainers

and facilitators in the industrial extension service undertake such activists are kaizen training,

entrepreneurship, business plan, bookkeeping, etc. When we observe 2012/13 there is no

evidence from Entoto TVET College that there were no implementation document found but the

researcher got seven MSEs which implemented kaizen training at (woreda 3 and 5 monthly

report document 2013). Hence, from woreda 3 there were two of them are dry food preparations

and two metal and office furniture making. From woreda 5 there were three metal and furniture

making micro and small enterprise was implemented kaizen full package totally seven MSEs

implemented kaizen was reported. In addition to this the woreda industrial extension and

technology transfer head 195 micro and small enterprise presented entrepreneur training by

them.

In the implementation year of 2013/14 the Entoto cluster college holds a plan they received 189

up to 250 Micro and small enterprise from Gulele sub-city MSE office that will support on this

fiscal year. The objectives of the support also kaizen training implement aimed at upgrading

themselves the MSEs one step ahead from their level by providing kaizen entire activity of

continual improvement, change, Quality and productivity by assuring the sustainable

development. The cluster center assigned for the implementation of this year kaizen training the

college selected by the criteria of qualified and capable trainers the number of the trainer are 226

in all field of areas for facilitating the support system. The awareness creation day for MSEs to

undertake the kaizen implementation paired completed. For MSEs owner one day discussion

takes place to make easier during implementation. The selection of criteria is in line with the

interest of the enterprise. Then after, the kaizen will implement. Starting from 2011 to 2014the

kaizen implemented as a micro and small enterprise level with the collaboration of Entoto TVET

Polytechnic College resume.

Needs of Kaizen Case in Ethiopia

There are many reasons why kaizen was so developed in Japan transform in to the East Asia and

Africa including Ethiopia recently. One reason is that, After the Second World War Japanese

private associations played a very important role in disseminating quality and productivity

improvement (Kaizen) technology (including techniques and skills) widely to Japanese industrial

sector according to Ethiopian Kaizen Institution (2013).

Since privet associations are not well developed in Ethiopia, EKI should have the similar role of

Japanese private associations mentioned above. That is EKI 1. Learns advanced KAIZEN

technology from not only Japan but those also other countries, then 2. Ethiopianized those

technology and 3. Diffuse Ethiopianized technology to Ethiopian companies and micro small

enterprise…according to (EKI2013).

The contribution of the manufacturing sector to GDP even smaller in Ethiopia in 2006/2007 was

just 5.1%, in comparison to 46.3% from the agricultural sector and 40.3% from the service

sector. Compared to Kenya, the presence of multinational companies is very small in Ethiopia.

At the same time however, some talented local entrepreneurs have enjoyed the benefits of access

to a market consisting of nearly 80 million people. Due to the absence of major multinational

companies, Ethiopia is yet to absorb the knowledge of kaizen (Ishiwata, 2009).

One characteristic of the Ethiopian manufacturing industry is the dominance of public

enterprises. 44% of value addition from the manufacturing sector was produced by 154 public

enterprises in 2006/7. The Government of Ethiopia is committed to modernization and

productivity improvement in its public enterprises. The Privatization and Public Enterprise

Supervising Agency (PPESA), a section under the Ministry of Trade and Industry, is

responsible for implementing Business Process Reengineering (BPR) among public

manufacturers (Ibid).

The private sector in Ethiopia is also aware of the need for productivity and quality

improvements, and the leading manufactures have adopted TQM. Yet, they have not established

a visual monitoring system, which enables real-time production and quality control.

Furthermore, adoption of 5S is hardly observable. Introduction of kaizen shall strengthen TQM

already initiated in those manufacturers

The Rational behind the introduction

The study intends to investigate practices and challenges of implementing kaizen strategy in

Entoto technical and vocational education and training (TVET) college cluster center in Gulela

sub-city micro and small enterprises (MSEs). The problems that encountered in the kaizen policy

implementation at cluster college level need to be investigating and be put in context.

According to a report of 2013 produced by the Industrial Extension core presses of the Woreda

level, the supporting strategy for MSEs provides the package according to the enterprise’s

growth level (i.e. above capable alone allowed the implementation of Kaizen that means by their

wealth from MSEs to SMEs contrasting from the previous time but, nowadays, the support goes

to all, including the beginner enterprises or entrepreneurs which they are interested and allows to

implement the package.

The implementation of the package was initially undertaken by the financial support and

payment from Addis Ababa city Administration TVET Agency (AACA TVET A). However,

currently, TVET agency provides the responsibility and full accountability to the cluster college

level e.g. for Entoto TVET college of Gulele Sub-city working as a cluster center. The AACA

TVET agency also allocates budget for the full implementation of kaizen training its

implementation and remuneration. Despite the problem of during practice, the full

implementation package was good. After the implementation of the package the kaizen teams

have been follow-ups and providing feedback for the sustainability of the implementation were

week. At this time the position of industrial extension at woreda level in Gulele Sub-city the

kaizen teams (industrial extension and technology transfer team) shift in to sub-city level. It

indicate end up the programme at woreda level.

One of the challenges for instance is that Government uses desecration when stakeholders,

capable executives and experts are to participate in the policy and strategy development process.

In this regard, some stakeholders among others are excluded from the process while the preferred

stakeholders are involved.

The gap between intended policy and implemented policy is the lack of knowledge,

skills, attitudes and resource,

The absence of assessing work and activity kaizen team by using annual and monthly

reports both at woreda and TVET level on which either to go together with new

implemented policy strategy. Kaizen training policy implementation was based on some

of the management and implementers, skills and knowledge that will enable them to

successfully implement the new policy. The implementation will enable them to

successfully implement the new policy imperative.

The above statements indicate that lack of capacity could be the reason for the failure of policy

implementation. Could be the main and only reason for the none—implementation?

Some of the challenges faced by policy implementers in kaizen training according to the annual

and monthly report the TVET, woreda enterprises are as follows.

1. Lack of coherence and co-ordination between woreda industrial extension team and

TVET cluster college also AACA TVET agency. Prior to 2013 the delivery of services

were poorly planned. The Addis Ababa city Administration TVET Agency didn’t observe

the Woreda Kaizen team as their workers; hence, they didn’t offer capacity building for

kaizen team.

2. The funding of the programmes was not regular and timely in cluster center of TVET

college and created distorted incentives and disincentive the problem more observed at

woreda level the implementation ,

3. The kaizen training policy implementations during awareness creation by the executives

were poorly articulated, inhibiting the enterprise owners and leading to high levels of

inefficiency,

4. Kaizen training implementation differed widely in MSEs with respect to quality,

standards of provision, outcomes and center of competency accreditation from similar

enterprises,

5. The treatment of woreda industrial extensions and TVET cluster center lacks parity of

esteem and reflected rigid and outmoded distinction between the two sectors,

6. No one can deny the change of several lives by boosting the individuals’ income by

commencing MSEs in to a better position. But new entrants in to MSEs both within the

city particularly outskirts of the city generally lacked appropriate knowledge and skills.

They also serious problem is lacked infrastructure and facility like water, electricity,

unfinished building and shops market and advertisement of their product. Hence, for the

above mentioned MSEs, infrastructures are not fulfilled adequately because it is located

in the outskirts of the city one of the major critics associated to the shortcomings

pertaining to the implementation of the MSEs and entrepreneurs is that this approach

lacks a clear policy and principles on how to implement the actual functionality of form

of business, ether entrepreneurs or association.

7. The Government preliminary plan puts properly the importance of the new policy

authority and responsibility. The Government policy makers didn’t decentralized

authority and responsibility to woreda level. Without any detail study, the programme at

woreda level was opened and after one implementation period top executives decides to

shut down the new package. Later years they assured the reason of the end up of the

programme also first assessment meeting in the Entoto TVET cluster center. At the

launching period the executives didn’t planned prior-training and development program

for both the woreda and TVET cluster center level. The training must be prepared for

implementers of kaizen team about the training process, principles, articulation, etc.

Since rash commencement of the programme the effect was hinder the proper

implementation of the package. The executives and implementers used poor overall

quality of the policy implementation back and forth, other old fashioned managerial tools

and which are no longer appropriate for kaizen training policy.

8. During the implementation of the package, one of the major challenges observed are lack

of awareness of the enterprises about how to implement the package. In other word, to

change the attitudes towards entrepreneurs and enterprise,

9. During the implementation period the kaizen team observed, almost half of MSEs

characteristic spirit of a kaizen training and service delivery for their client, was not valid

MSEs also viewed kaizen as unnecessary. Hence, it doesn’t create favorable working

conditions and MSEs stopped working in the culture of kaizen training, as well as

executives, implementers’ service delivery were equipped with poor moral, work ethic

and low professional self-esteem amongst many stakeholders. Starting from the first part

of this paper we have seen several problems

To help managers to meet these challenges the Government preliminary plan for the future

policy had to be developed. December 2011 Green paper in kaizen implementation was

based on some of the managers in the former TVET, woreda sub-city and AACA TVET

office level kaizen team they lacked management skill and knowledge and unable to

successfully implement the new policy imperatives. To enunciate kaizen training as a

requirement of managers’ implementers of kaizen training policy, the cluster college should

be competent in managing the issue such as finances, administration, and human resource

(implementers). The remedial parts of the kaizen training policy implementation problems

would be alleviated offering for all capacity building by the Ethiopian kaizen institute

particularly the originators. Before launching Kaizen training programme in the MSEs. The

possibility of success on kaizen training policy by cluster center will, to a greater extent, be

determined by the existence of strong and focused leadership of these cluster center and other

stakeholders. The position at wored level should reinstatement since they are almost always

closer and live with micro and small enterprise. Hence, the transfer of power at woreda /local

level should return as previous according to the availability of the enterprise. The woreda

Kaizen team suggested that, for better implementation of this package other than locking the

entire position at the woreda level, it is better to open the position according to the

availability of the sheds, entrepreneurs and enterprise in if enterprises are many in number in

a given woreda supports should be assigned industrial extension workers. The trainers which

are assigned to implement the package are not regularly available on the workshop entire

days due to their own work i.e. providing training for their student in the TVET and also

industrial extension works at woreda level also several time assigned on other mission.

Micro and Small Enterprises (MSEs) in Ethiopia

Size of employment, capital investment or turnover is used as criteria to categorize enterprises

along scales of operation and define micro, small, medium and large enterprises. This

categorization is important for functional and promotional purposes to achieve the desired levels

of development. In the case of Ethiopia, there is lack of uniform definition at the national level to

have a common understanding of the MSE sector. While the definition by Ministry of Trade and

Industry (MOTI) (2004) uses capital investment, the Central Statistical Authority (CSA) (2004)

uses employment and favors capital intensive technologies as a yardstick. The definition used by

MOTI, which uses capital investment as a yardstick, has been developed for formulating micro

and small enterprise development strategy in 1997. According to (MOTI, 1997):

Micro enterprises are those business enterprises, in the formal and informal sector, with a

paid up capital not exceeding Birr 20,000 and excluding high tech consultancy firms and other

high tech establishments.

Small enterprises are those business enterprises with a paid up capital of above Birr

20,000 and not exceeding birr 50,000 and excluding high tech consultancy firms and other high

tech establishments.

On the other hand, CSA categorizes enterprises into different scales of operation on the

employment and the nature of equipment. According to CSA, (2004):…..

Clusters under the umbrella of MSEs are numerous activities-street vendors, shop keepers,

hotels, bars, shops, groceries, hair dressers, wholesale and retail traders, export important traders

and small scale industries etc. Most of these enterprises in the country are largely confined to

trade and services and to small scale manufacturing and handicrafts, which constitute an

important subset of small scale enterprises (SSE). The definition of small scale industries

adopted by the Federal Micro and Small Enterprises Development Agency (FeMSEDA) in

proclamation 124/77 (in MOTI, 1997) is as follows:

A small scale manufacturing activity and engineering service establishment is a manufacturing establishment-except handicrafts-which has a fixed location within urban center; uses either manually operated machinery and equipment motive power driven machinery and equipment and engaged in the mechanical-chemical transformation of substances into new products and in the fabrication, assembly, reconstruction, alternation, and repair activity; employs at least one person other than the owner/owners, unpaid family workers and/or apprentices; and has fixed assets of value not exceeding birr 200,000 excluding investments made on land and buildings.

Different Sector Policy and strategy framework and National

Strategies for the Development of MSEs in Ethiopia

That the need for a well-established national policy and strategy for MSEs should follow from

the prevailing situations of the sector in Ethiopia. The government recognized the contribution of

the informal sector. It has recognized and paid due attention to the promotion and development

of MSEs for they are important vehicles to address the challenges of unemployment, economic

growth and equity in the country. To this effect, it has formulated a National MSE Development

and Promotion Strategy in 1997:11, which enlightens a systematic approach to alleviate the

problems and promote the growth of MSEs. The overall objectives of national strategies:

To facilitate economic growth; bring equitable development; create long-term jobs; strengthen cooperation between MSEs; provide the basis for medium and large scale enterprises; promote export; balance preferential treatment between MSEs and bigger enterprises.

This section highlights the findings of the recent survey conducted by the Central Statistical

Agency of Ethiopia (CSA). According to the survey, over 89% of the informal sector operators

are concentrated in manufacturing, trade, hotel and restaurant activities. Of the small scale

manufacturing industries 85% are engaged in the manufacturing of food, fabricated metal

furniture and wearing apparels. The survey also revealed that the number of people earning their

livelihood from the informal sector activities and small scale manufacturing industries is eight

times larger than those engaged in the medium and large scale industrial establishments,

according to Ethiopia Ministry of Trade and Industry (1997).

MSE has great share in the economy by creating job opportunity, of the total domestic

production. In India for instant such sectors has a share of 45% in manufacturing, 40% in export

production and create job opportunity for about 60 million people. In Japan, similarly the sectors

has a share of 53.3% in manufacturing and create job opportunity for more than 40 million

people such as Policies and support frameworks, and detail implementation package and

regulations are formulated and practices in full scale in order to speed up development of the

sector and to enhance the competency of the country’s enterprise according to Federal Bureau of

MSEs of Strategic Plan( 2011).

Among the MSE support framework, the strategy focuses on creating and implementing and

enabling legal framework as well as on stream lining regulatory conditions by establishing an

user friendly environment for the simplification and standardization of documents such as

business registration and licensing; financial and loan application; purchasing and sub-

contracting (tender) document; export documentation and other commercial documents;

registration of contracts with municipalities; authentication of contracts anatomy public; and

simplified tax declaration forms for small businesses. Other specific support areas and programs

in the strategy include the facilitation of access to finance; incentive schemes; encouraging

partnership, training in entrepreneurship, skills and management; facilitating access to

appropriate technology, access to market, access to information and advice, access to physical

infrastructure and the institutional strengthening of private sector associations and chambers

(HLCLEP, 2006: 15-16).

Micro and small enterprises (MSEs) is one of the institutions given recognition in the country’s

industrial development plan and is the fact that it serves as vehicles for employment

opportunities at urban center and as it underpin the economic development. MSE serves as

sources for sustainable job opportunities not only for developing countries like ours, but also for

developed countries like USA. Thus, they should be given prior attention as they are important

and serve for sustainable source of job opportunities to our country. We give priority to these

institutions as they are important vehicles for production and growth in the manufacturing sector.

They will also be the major productive forces in the manufacturing sectors when our effort

towards the country’s renaissance is over. “Japan, for instance, the globally recognized in giant

companies like Toyota and Sony more than 50% manufacturing products are produced by

MSEs” according to Federal Bureau of MSEs of Strategic Plan( 2011:).

While the strategy clearly stipulates that the provision of meaningful supports require the

vigorous and synchronized efforts of the various development actors including government

bodies, non-governmental organizations, business associations, private enterprises, foreign

agencies and similar others, government has been setting-up federal and regional micro

enterprises promotion agencies aiming at providing the above services and coordinating efforts

of the various stakeholders. Even though, it might require substantiating with figures and facts,

these efforts are not only inadequate but also fragmentary or uncoordinated. Moreover, the

strategy does not address the informal sector and promotional measures do not target it.

Mechanisms to link the two sectors do not exist (HLCLEP, 2006: 15-16).

It can be concluded that the need for a well-established national policy and strategy for MSEs

should follow from the prevailing situations of the sector in Ethiopia. Currently, there is an

urgent need for a national strategy framework and coordinated programs at Federal, Regional

and Local levels to address the issue of MSEs support by implementing of the policy. Such a

national framework is also a precondition for setting up priorities and appropriate allocation of

scarce government resources. Furthermore, the framework will facilitate and distinctly articulate

the delegation of tasks and responsibilities concerning MSE support among all stakeholders and

the channeling of government resources. Policy dialogue is one of the key tools used widely in

Japanese development cooperation as explained. Although it can cover any topics related to

development, the Japan policy dialogue with Ethiopia focused mainly on industrial issues

Major objectives of MSE development in Ethiopia

a) Through creating job opportunity, bringing equal development, improving income

of the society and poverty reduction

b) Enabling the sector competent, facilitate economic growth and lays foundation for

industry development.

c) Expanding the sector’s development in urban by creating developmental investors.

Therefore the intimate relationship between TVET institution and MSE sectors play crucial role

to reduce poverty. Through micro and small business development offices, TVET graduates

trained on different streams are assisted to engage in self-employment ventures

Stakeholders participation implementing Kaizen Strategy

According to MULLINES (2010) to undertake the organizational responsibility and work ethics

are often viewed as social responsibility. when we talk about organizational stakeholders that is,

those individual or groups who have an interest in and/or are affected by the goals, for example,

are likely to have a particular interest in, and concern for, the size and growth of the organization

and its profitability, job security, status, power and prestige. Stakeholders, meanwhile, include a

wide variety of interests and may be considered, for example, under six main heading of:

Employees; Provides of finance; Consumers; Community and environment; Government; and

other organizations or groups it said to be stakeholder according to MULLINES (2 010).

According to (EKI, 2013) stakeholders which implement Kaizen in our country working together

with the governmental organization Ethiopian Kaizen Institute (EKI), Japan International

Cooperation Agency (JIKA) in addition to this it includes, Ministry of Industry (MoI), Ministry

of Urban Development and Construction (MoUDC), Ministry of Education (MoE), Federal

Micro and Small Enterprise Development Agency (FeMSEDA), Regional Micro and Small

Enterprise Development Agencies (FeMSEDAs), Federal TVET Agency (FeTA), Regional

TVET Agencies (ReTAs), Technical TVET Agencies (ReTAs), Technical Vocational Education

and Training Institute (TVETI).

As clearly mentioned in the above all stakeholders hold a support policy plan the intention of the

plan reaching/achieving their target. Due to this fact the stakeholders taking parts to share in the

proper implementation of government policy here in our country more responsibility providing

for TVET since they have entire professional personnel that can support for MSEs they are also

available and closer to the society. Despite the importance of the mentioned sector also un

deniable. From the above general policy, programme and strategy currently more emphasis

improving their competitiveness private and Government organization, due to this facts, Ethiopia

is proclaiming the Japanese kaizen policy, number of public and private enterprises try to

implement kaizen training policy (meaning change for better or continuous improvement

involving everyone in the micro and small enterprise) the benefit goes to both the client and for

MSEs.

The Roles of state government body

The roles of government almost always perform the formulation of policy and strategy for the

country at large. After a sorrow appraisal of appropriate organizational performs and

effectiveness policy for the country at large. It was imperative for Ethiopian policy makers to

support and confirm the institution of Kaizen from others in order to overcome the uncertainty of

industrial situation. Hence, the government role on policy and strategy formulation after proper

investigation by research and development of benchmarking appropriate policy and strategy to

the country at large. Due to this fact Kaizen select and set as government policy and then

cascading to the stakeholders to implement as strategic plan.

The Role Regional stakeholders

Services delivered in one center Services given for legal basis applying by stakeholders, (a)

Registration and identification of unemployment, and keeping/preserving data about those

involved in business (b) Organizing under cooperatives, registration and award certificate. c)

Registration and provision of trade license trade license for private and MSE. d) Registration of

trade license services of trade unions. (e) Registration of taxpaying (f) Facilitate bookkeeping

and auditing service. Governmental sector Bureau provisions and services offering to the

enterprises, (a) Facilitate, utilize and administrate products and sales cluster centers. b) Facilitate

credit and saving services. (c) Consolidating pay back of credit and saving, (d) Gathering,

analyzing and delivering data to users.(e) Make enterprise beneficiary by allowing participating

in government development projects. f) Support enterprise by coordinating bazaar, introducing

their products /commodities, (g) Facilitating experience sharing and market linkage among

enterprises, and (h) Support enterprise in utilizing common property, common purchase and

searching market linkage. Among other the center service to enterprise will be given product

and sales centers on their business nature and production ability basis, and they will pay rent

25%, 50%, 75% and 100% in the first year , second year, third year, and fourth year respectively

according to Federal Bureau of MSEs of Strategic Plan( 2011).

The roles of Ethiopian Kaizen institute

According to Ethiopian Kaizen institution (EKI, 2011) established in 2011 by council of

Ministers regulation No. 256/2011. The objectives of institution to carry out broad based

activities of ongoing quality and productivity improvement and thereby enhance the expansion of

competitive industries. The institute shall have the roles, power and responsibility:

1. Formulate strategy and plan that assist in the dissemination of the KAIZEN concept and

tools and implement same upon approval;

2. Create country wide quality and productivity movement that could enable to effectively

implement government policies and strategies;

3. Prepare, and distribute Kaizen training and consultancy manuals customized to micro,

small, medium and large enterprises and follow up their applications;

4. Provide training of trainers to technical and vocational education training institutions

industrial extension experts so as to enable them to be capable to provide Kaizen training

and consultancy to MSEs support and follow up the implementation of same;

5. Provide Kaizen training and consultancy service to medium and large companies;

6. Undertake training, consultancy and coordinating activities to disseminate Kaizen

concepts and tools at all levels service providers as well as all levels service providers as

well as education training institutions;

7. Case the establishment and follow up the implementation of system that induces

organization to implement Kaizen and develop the culture of pursuing quality and

productivity;

8. Support organizations to establish quality control circles and continuous productivity

improvement circles and continuous productivity improvement circle and register their

performance;

9. Prepare and implement a system of and provide incentives to beneficiary organizations in

Kaizen training and consultancy vices that manifest excelled performances; and authorize

them to display quality emblem;

10. Collect, compile, publish and disseminate indicators enabling to measure improvement

obtained as a result of Kaizen;

11. Prepare and implement key performance indicators enabling to evaluate kaizen

implementation results;

12. Establish evaluation and qualification systems for Kaizen trainers and consultants;

13. Organize and expand best Kaizen practices, and Kaizen model companies; prepare and

distribute annual publications,

14. Designate quality month and organize country wide discussion and awareness creation

forums;

15. Own, property, enter into contracts, sue and be sued in its own name;

16. Perform such other related activities necessary to the attainment of its objectives…

The role of TVET to MSEs

Conducting effective, continuous and appropriate growth and development for MSEs clearly

mention the role of TVET is the very important things, hence, accordingly the following role and

responsibility intended to TVET to MSEs

a) Organizing and providing industry extension services that enable to be effective.

b) Identifying the provided technology undertaken and distribute sample and design activities

c) Preparing and providing training on the basis of MSE level of growth /development in depth

and width that enable to be competent

d) Providing support to trainers to get certificate of assurance

e) Providing training and advice services about job creation/innovation/ hard working

competency, KAIZEN that help to realize saving attitude/ outlook and analyzing other related

management principles and methods.

f) Providing support and common services of quality control, design …, maintenance and

material rent services to MSE of the region.

Training and Development of TVET Support System, Conducting effective, continuous and

appropriate trainings that help MSE to enhance production and sales services, supplying new

products based on market demand is vital. Accordingly, the following trainings are intended as

the role of TVET to MSE. Providing training based on their interest and enhances productivity,

production and services quality. Providing training of improving product development and

production process based on market. Support MSE to get ability certificate on products and

services sector they are involved. Providing for MSEs appropriate training and development,

advice and support to enable enterprises competent internationally by fulfilling the

organizational setting, international standard organization (ISO).

Technological Development for MSE

It is important that enabling MSE to enhance productivity and quality, to be competent and

transforming to medium and higher industry by substituting the old factor of production with

new one and appropriate materials. Based on this, thus the following technology development

and distribution of support are presented.

Technological support incorporates appropriate technology, production and distribution and

producing project profiles that enable to support MSE, these activities are carried out by TVET,

sand they are.

Manufacturing, construction, mining and other services so as to substitute technological

development and import products, and to encourage export.

Appropriate technologies and production materials imported from abroad will be

produced and used at home.

Facilitate appropriate technology and manufacturing production materials to MSE in the

form of purchase, rent and lease.

Facilitate system through which TVET can copy various appropriate technologies both in

quality and quantity, and teachers are encouraged. Establish a system that encourages individuals

and institutional actors to supply improved technology in fair expense.

TVET institutions provide service such as maintenance , renewal and spare parts to

enterprise in their work site

Technological and standardization supports that speed up MSE productivity and growth

is implemented.

Industry extension service

The industry extension service provided to MSE must be first based on the direction of industry

development strategy and then on research/study that identify MSE problems and

implemented/organize service within the plan. The industrial extension must be wise and wide

than supports provided by medium and higher industry development institution. The supports

should include activities such as organizing information, providing training on entrepreneurship

and trade management, technological development and growth selection of technological

transfer, marketing productivity quality improvement and ISO and include analyzing and transfer

best experience. Accordingly the services are provided through TVET institutions in organized

form.

The industry extension service will be given prior attention to the existed enterprise and

growth oriented sectors until capacitate all enterprises; especially to those supply for export

market, produce import goods domestically, in manufacturing and constructions or/and in cluster

centers.

Use BDS and KAIZEN services as main tool in industry extension services as methods of

identifying enterprise problem in advance.

Training centers in which all experts of industry extension equip/build their capacity are

selected from all regions’ TVET. Training curriculum, trainees of training curriculum and

manuals that help for develop attitude, knowledge and skill of the industry extension experts are

set at federal level.

Training modules and manuals to MSE found at various growth levels are set by federal

TVET agency.

TVET institutions are responsible to preserve Information about number of enterprises

delivered industry extension service, sector and impacts of the service provision, successful and

not successful of MSE at various levels with justification.

In the process, TVET are responsible to keep information and introducing about income

of the products, available job opportunities on the basis of value chain.

Enterprises to be trained at regions are assigned to TVET by Regional MSE development

agency

Officials who run the industry extension activities in TVET are assigned based on their

qualification and commitment

The industry extension advice/consultancy service provide at regional TVET is on the

basis of value chain.

Incentive schemes that increase enterprises’ initiation to achieve best result are set by

TVET and implemented.

Budgets for industrial extension prepared by TVET are allocated by the regional

government. System of cost sharing focuses mainly on common services.

The services provide to MSE would be based on study/research in order to keep the

quality and effectiveness.

Directions of the industry extension service

Capacity building of TVET, The TVET teachers and leaders should be given training about the

sector as they are responsible for equipping the enterprises. The training and awareness creation

should redress the wrong perception about MSE’s history related to trainings, technology

transfer and enable to understand development directions of the sector, and goals of the industry

development and GTP. The training will also equip teachers and officials with the necessary

ability that enables to deliver the industrial extension services. Accordingly the activities to be

done are:

a) Industry extension service will be given to MSE by TVET institutions.

b) TVET institutions will work jointly with other supporters of the sector so as to improve the

modern management capacity & technological level of the MSE, and to expand and make

ready the industry extension service.

Strengthen support providers

Various capacity building activities will be undertaken in order to make development of the

sector sustainable and bring about developmental investor and create industrialists, to strength

capacity of governmental support providers and executive of the sector. Accordingly the

program includes the following.

The federal MSE development agency will be reorganized in new form. The agency will

accomplish tasks of capacity building of the agency itself and the regions. Similarly institutions

that implement MSE’s development strategy will be encouraged.

The National Bank of Ethiopia /NBE/ will organize department that build and support the

capacity of Micro Finance Institution /MFI/. And it would capacitate the MFI in integration with

other domestic MFI.

Center services for capacity building will be established by selecting the best TVET from

each region.

Since an integrated support is vital, responsible bodies to implement such as MSE

development agency, MFI, and TVET will work jointly

Consultation forum of executive bodies, stakeholders and major actors of the MSE will

be established at various levels. Policies, rules and regulations issued by government will be

ensured by inputs of consultation forum and through participation in planning and

implementation.

Strength MSE & creating strong linkage with government projects, and enable actors to

solve their problems by themselves through strong organization.

The joint work between enterprise and TVET/Cooperative Training

According to MoE (2007). Cooperative training is training provided in cooperating between

employers (i.e. systematic training at a specific work place / in the work process /work shop) and

a TVET institution (i.e. classroom, laboratories, and workshop). Cooperative training usually

takes the form of training at a (Public, non public or NGO) TVET institution for part of the time,

and at an enterprise (apprenticeship/internship) for the remainder of the school year, i.e. training

that take place alternatively in a school environment and in the real- life environment of the work

place. Parts in cooperative training are the trainee, TVET institutions and enterprise.

The Ethiopian TVET system will be outcome-based with competencies certified by an

independent testing body without consideration of the actual learning and training process used.

This testing and certification process will permit the comparison of CT outcomes with traditional

formal training processes. Enterprises and TVET institutions are expected to cooperate in

planning, implementing, and assessing CT Federal bureau of TVET strategy 2008.

Cooperative training can take place in public, non- public and NGO, TVET institutions, in public

and private enterprises and in micro, small, medium –scale and large enterprises from the formal

or the informal economic sector. Cooperative Education is a structured method of combining

academic education with work experience (Barton, 1996). There is a need for broader definition

of CT acceptable models for integrating work and learning. Barton (1996) and wilson et al.

(1996) identify a variety of work –based learning activities taking different names: Application

of Cooperative training encompasses all forms of training conducted jointly by TVET

institutions and enterprises. Co-op, internship, externship, apprenticeship, career academies, etc.

work based learning programs should look for connections and develop collaborative

relationships. The alternative and parallel co-op models may not meet the needs of returning

adult students and dislocated workers needing retraining (varty 1994)

The guiding principle is that as all parties involved, namely: the industry, the trainees and TVET

institutions will gain immediate and long-lasting benefit; they will choose it according to Federal

bureau of TVET 2008.

Summery

Despite some initial misgivings, it has been demonstrated that kaizen can be put into practice

in a variety of cultural settings. During the initial attempt in African, JICA experts believed

that introducing the productivity movement was the transfer of Japanese-style management

practices. It was sometimes considered that various aspects of Japanese-style management

were essential for the success of the productivity movement. However, we know that how far

kaizen can be applied in many parts of the world. JICA’s experience in Asia, Latin America,

Europe and now Africa, are testimony to this. It is also possible, even necessary, to adapt it to

the local context, as the Ethiopia case shows.

The implementation of KAIZE in the Japanese context For example Union of Japanese

Scientists and engineers (UJSE), Japan productivity center (JPC) and Japan management

Association (JMA) are very famous privet associations in Japan even now. JUSE has been

conducting ‘quality improvement’ movement in manufacturing sector in Japan. JAM has been

promoting “management efficiency “movement in Japanese industrial sector. (1). from their

private sector learnt advanced quality and productivity improvement technology from the US and

European countries after the Second World War. (2). Japanized those technology and (3).

Diffused Japanized technology to Japanese companies. The name of Kaizen has been given to

activities for quality and productivity improvement, cost reduction and shortening delivery or

lead time at factories level (“Gemba” level in Japan) according to (EKI2013).

The reasons why-developing countries remain behind the advanced country what can be done to

transform our economy into better condition. We can learn from the developed country applying

and implementation of effective organizational performance and effectiveness particularly

suggestion and support of private owned enterprises. Most of the Asian country growth

depends on applying properly TQM/KAIZEN implementation. During the industrial revolution

particularly Japanese were properly applying successfully TQM in their own most of

industries. Hence, the researcher recommend to use the TQM/KAIZEN since, we are

transforming our economy from agricultural lead to industry in to industry lead to agricultural.

The mainstream thinking of development economics, and with it the policy of bilateral and

multilateral agencies, has changed considerably over the past 65 years. In the early post Second

World War period there was emphasis on the roles of investment infrastructure and industry or

agricultural projects and the planned economy. The view then was that poor countries lacked

the savings and investment necessary for growth, which created a vicious circle of poverty.

When we talk about economic development we should have to clear increase living standards

of the individuals. We are not properly use African Growth Opportunity Act (AGOA)

substantial trade preferences that, along with those under the Generalized System of

Performance (GSP), allow virtually all marketable goods produced in AGOA-eligible countries

to enter the U.S. market duty-free. The growth of-national income per capita, development

economics is concerned with the reasons why-developing country remain behind the advanced

countries and what can be done about us aid agency to provide loans and grants for larger

investments in physical capital. The policy response therefore was for aid agencies to get loans

and grants for large investments in physical capital. Later in the face of the incompatibility of

the problem and the influence of growth accordingly placed on programs for improvements in

health and education that will be not only by of immediate benefit to the poor but which would

make growth possible.

In the 1980s, there was another shift in emphasis towards freeing-up markets and allowing the

shift in emphasis towards to growth activities. Attention therefore turned to macro-economics,

and the institutions made structural adjustment programs to reduce government budget

deficits, remove price controls, free exchange rates privatize and privatization state assets.

Once again emphasis on a single set of policies, in this case macro-economic proved

insufficient, even in the early 1990s in the economies in the transition in which education and

infrastructure standards were much higher than in developing countries. Mean while-newly

industrialized courtiers particularly in south and East Asia and china have experienced rapid

growth rates without massive foreign aid-models of development in these emerging markets

have varied, and there is controversy about why their experience has been so different from

that of most developing countries the secrete of this growth either properly applying

TQM/Kaizen or other organizational performance and effectiveness method in their industry.

In our country large proportion of the labour force almost more than 80% in the informal

sector. In the informal sector most people are engaged in agricultural subsistence or in small

trading and craft activities. Since we are scattered not organized to use effectively our human

resource we should have to live organized level for this issues the most important tools to

tackle the problem education is the best tool. To away from our problem human capital

development is the most important to shift from developing to developed country.

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