Ethiopian production
systems have generally been characterized by low levels of productivity
and inconstant quality
of products compared with industrialized countries. The decision-making process in organizations is generally portrayed by strong top-down processes
, but its implementation on the ground is often disorganized and not very efficient. Chanie (
2001) argues that this is partly due to the low capacity
of the civil service to cope with prevailing social, political and economic difficulties, as well as management innovations
.
Cognizant of these facts, since the current ruling party assumed power in 1991 after defeating the former socialist government, reforms have been introduced across political, economic and social spheres. From 1996 until 2009, the Public Sector Capacity Building Program (PSCAP)
was initiated to bring about comprehensive civil service reform, focusing on (1) expenditure management and control, (2) human resource management, (3) enhancement of the top management system
, (4) improved service delivery and quality of service, and (5) ethics and judicial reform. The outcome of PSCAP
was satisfactory (World Bank Group
2013).
Several other reform approaches were also attempted. Business Process Re-engineering (BPR)
was implemented in parallel with PSCAP
, commencing in 2004, because service delivery by public institutes was very slow, costly and non-responsive to the needs of customers (Gebrehiwot
2010). The concept of BPR
emphasizes the fundamental reconsideration and radical redesign of organizational processes to realize a drastic increase in performance, particularly by eliminating the work that does not add any value for customers.
However, some evaluation reports on BPR
(Debela
2009; Setegn et al.
2013; Kebede and Abetwe
2017) concluded that BPR
had failed to bring about drastic change and contributed only limited improvement in the Ethiopian civil service delivery. In addition, there was dissatisfaction among workers at the organizations because BPR
puts greater emphasis on processes that benefit the organizations than it does on human resources development. Absence of alternative employment
or safety net schemes to absorb laid-off manpower resulting from the change process gave rise to negative perceptions of the process that severely hindered and eventually undermined the sustainability
of BPR
.
Furthermore, as part of the ongoing civil service reform that the government is undertaking, a balanced score card (BSC)
has been under implementation since 2011. It is an approach that integrates strategic planning, implementing and measuring the performance of all actors involved in the realization of the goals and objectives of the country (MoCS
2013).
The Ethiopian government has a strong policy orientation toward the developmental state
, as Meles Zenawi
argues in his paper (Zenawi
2012). He
defines the “developmental state
” as the single-minded pursuit of accelerated development with the strong superiority of the public sector over the private sector
. Along with this policy direction, the government led by Prime Minister Meles Zenawi
and his successor Prime Minister Hailemariam Desalegn
undertook 14 capacity-building programs
to accelerate industrial development including Technical and Vocational Education and Training (TVET)
, Engineering Capacity Building Program (ECBP), Textile and Garments Capacity Building Program (TG-CBP), Private Sector Development Program (PSDP) and Information Communication Technology Development Program (ICT-DP).
Outcomes of the capacity-building programs
included the establishment of eight institutes, such as the Textile Industry Development Institute (TIDI), Leather Industry Development Institute (LIDI), and Metal Industry Development Institute (MIDI). These institutes provide support for the development of specific technical skills, which is technical capacity
, for private companies in priority subindustries. Furthermore, the government has been simultaneously investing heavily in the development of key infrastructures such as transportation, power supply and industrial parks, and applying different industrial development tools to attract foreign direct investment
as Oqubay (
2015) describes.
Since 1991, the economy of Ethiopia had fluctuated, attributing to the character of a rain-fed agrarian economy. However, from 2004 the economy has been in a high growth trajectory and performed double-digit growth for more than a decade.
2 This growth was sustained by a balanced growth of agriculture, industry and services
3 until 2013. From 2014, growth of the industry has become higher than that of other sectors, which has triggered economic transformation.
4 On the other hand, growth of the manufacturing industry
is not significantly high and its share in GDP
remains at 4.3 percent as of 2016, which is not higher than its average between 2003 and 2016 (4.7 percent). Therefore, the country does not yet reach a stage wherein growth of the manufacturing industry leads to the country’s economic growth
. It means that the impact of
Kaizen at the macro level in the manufacturing industry
is not yet visible. In addition, causality between
Kaizen and economic growth
in the macro level is always difficult to analyze due to the complex multifactorial influences affecting both.
The introduction of the Japanese
Kaizen approach into Ethiopia was initiated by then Prime Minister Meles Zenawi
in 2008, who directly requested assistance related to
Kaizen from the Japanese government. Zenawi
referred to a book chapter written by Kikuchi (
2008) about a quality and productivity improvement
project in Tunisia
supported by the Japan International Cooperation Agency (JICA)
, and explained to the mission members
5 sent by JICA
headquarters that he wanted to develop a
Kaizen approach, as JICA
had done in Tunisia
, among other tools to promote industrial development. He promised the mission that the government would assign five to ten staff members to form a new unit that will work with Japanese experts on
Kaizen.
His intentions regarding technology transfer are clearly detailed in his article on the developmental state
(Zenawi
2012). He argues that the investment in human resources development
to create continuous upgrading of standards is more effective in mastering existing technologies during the catch-up process for developing countries
than investment in research infrastructure for innovation
. Meles deliberately chose the Japanese
Kaizen as a relatively low-cost approach
for investing in human resources. In fact,
Kaizen promotes the gradual and continuous improvement
of existing technologies by utilizing the know-how of floor workers without the need for large-scale capital investment. Strong guidance by Meles was one of the reasons why the government has maintained a firm commitment to
Kaizen.
In 2009
Kaizen was introduced to the Ethiopian manufacturing sector through the first project titled the “Study on Quality and Productivity Improvement (KAIZEN) in the Federal Democratic Republic of Ethiopia”
6 to test its applicability in the Ethiopian context. After verifying its effectiveness, the
Kaizen unit with ten staff was expanded to become the Ethiopia Kaizen Institute (EKI)
in 2011, an independent organization with a technical staff of 60 people who were trained to be consultants. This rapid scale-up of the implementing body of
Kaizen created the capacity
in the government to apply
Kaizen across a wider range of targets. Several sector-specific development institutes, such as TIDI, LIDI and MIDI, were put in place to facilitate human resources development for industrialization
. EKI
is communicating closely with these sector-specific institutes and trying to mainstream
Kaizen training
for future industrial extension agents.
In mid-2014, the government formed the National Kaizen Council chaired by then Prime Minister Hailemariam Desalegn. The Council is the highest decision-making body for the national Kaizen movement and meets quarterly to deliberate on plans and endorse new directions. During the first extraordinary meeting that the Council had in September 2014, the Council set the month of September (the first month Meskerem in the Ethiopian calendar, commencing on September 11 or 12, depending on the leap year) as Kaizen month in order to promote the concept as a national movement. The government also started creating regional Kaizen institutes in the major regional states to further strengthen the dissemination of Kaizen across the country.
EKI
, the main promoter of
Kaizen activities in Ethiopia, provided training to 68,954 trainees and established 9658
Kaizen Promotion Teams
(KPTs; a customized version of the Quality Control Circle (QCC)
7 in Ethiopia) in 473 target institutes from 2012/2013 to 2016/2017 (Mekonen
2018). It provides training and consultations to large and medium enterprises directly and training to micro and small enterprises
through Technical and Vocational Education and Training (TVET)
as Suzuki and Sakamaki report in Chap.
7 of this book. EKI
received its recurrent and capital budget from the government, which amounted to 119.3 million birrs
8 since its establishment in 2011 until 2016/17.
9 EKI
estimated that the benefits of
Kaizen implementation between 2011 and 2016 reached 2169.5 million birrs, equivalent to US$105 million (Mekonen
2018). Mekonen vividly illustrates the details about the strategy, activities and challenges of EKI
regarding
Kaizen promotion.
One remarkable point is that while EKI implemented the Kaizen training within a framework of the project agreement between JICA and the government, EKI also started providing basic Kaizen consultations—soon after mastering basic skills—to the large-scale parastatal companies located outside Addis Ababa, who were not targets of the project. Such activities of EKI initially created tension between EKI members and JICA experts because the JICA team complained about the potential negative effects on the quality of Kaizen training implemented only by EKI staff, as well as delays in their project activities.
However, as a symbolic episode, it shows the strong ownership of and expectations by the Ethiopian participants related to
Kaizen promotion in the country—a point that is now highly appreciated by JICA
.
10 The management of EKI
also became more strategic and capable of handling requests from high-level government officials regarding the application of
Kaizen to parastatal factories, while at the same time working to maintain project activities supported by
JICA.
Based on these achievements, the government of Ethiopia
incorporated a proposal for
Kaizen mainstreaming into its five-year national development plan, the Growth and Transformation Plan II (GTP II)
, in order to scale up
Kaizen promotion across the country
(NPC
2016).
On the other hand, in 2015 the government changed the supervising ministry of EKI from the Ministry of Industry to the Ministry of Public Service and Human Resource Development, which represents its policy expansion to applying Kaizen, not only to the development of industry but also to the public sector and broader human resources development. Local Kaizen institutes were also established in Addis Ababa and Dire Dawa municipalities and the Oromia Regional Government promoted Kaizen in local institutes and companies.
From 2013, EKI
started sharing its experiences of
Kaizen promotion with neighboring countries, receiving study missions from Sudan
, the Democratic Republic of Congo
, Tanzania
and Zambia
(JICA et al.
2018b). NEPAD
also sent a mission in 2017 to learn about the Ethiopian model of
Kaizen promotion in order to prepare a position paper on the Africa Kaizen Initiative
, which aims to accelerate industrialization
, economic transformation and creation of decent work in Africa
between 2017 and 2026. Therefore, other countries and organizations in Africa
are expecting to learn something from the case of Ethiopia.