KAIZEN AS A STRATEGIC CHOICE FOR ENHANCING THE CAPABILITIES OF MANUFACTURING COMPANIES IN ETHIOPIA

Asayehgn Desta, Dominican University of California, U.S.A.
TsegayTesfay Mezgebe, Ethiopian Institute of Technology, Mekelle University, Ethiopia
Hadush Berhe Asgedom, Ethiopian Institute of Technology, Mekelle University, Ethiopia
Alula Gebresas Gerezgiher, Ethiopian Institute of Technology, Mekelle University, Ethiopia

Published in

INTERNATIONAL JOURNAL OF BUSINESS STRATEGY
Volume 16, Issue 1, p55-72, March 2016

ABSTRACT

The success of manufacturing industries in global markets rests in large part on the degree of optimization that firms are capable of in order to produce products that are of quality, cost competitive and meet the needs of customers. After carefully examining: a)the 2004 Benchmarking model (that attempts to understand and evaluate the current position of a business in relation to industry's best practicing firms); b) the 2004 Business Process Reengineering paradigm (that calls for a drastic changes using large investment of resources and technology); and c) the 2011 Balanced Score Card Technique (i.e., centered on integrating strategic planning, implementation, performance and process assessment); a number of Ethiopian firms are vigorously exploring a redesign of their manufacturing enterprises to customize their products in line with Kaizen, the Japanese Management Strategy technique. Kaizen calls for continuous improvement through gradual upgrades in quality and productivity. It was introduced to Ethiopia in 2009 to strengthen and elevate the manufacturing industries to a higher level. To investigate the implementation of Kaizen management techniques, using observation, survey questionnaires, and interviews, three case studies of manufacturing companies in Ethiopia were studied. Specifically, data from the production department, supply & procurement department, and the marketing department of each case factory were collected and analysed. Though a longitudinal analysis was not conducted to ascertain or guarantee the sustainability of Kaizen events, a one-spot empirical analysis of data collected from the three companies reveals that the Kaizen method was acceptable and did serve to facilitate advancement in quality and productivity.

Keywords

Kaizen, Kaizen philosophy, manufacturing industries, quality, productivity


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