EFFECT OF KAIZEN ON MIDROC‘S PRODUCTIVITY: THE CASE OF TEA PROCESSING AND PACKING FACTORY

Abstract

This study investigated the effect of Kaizen principles on productivity at MIDROC's Tea Processing and Packing Factory in Addis Ababa, Ethiopia. Amidst growing global competition in the tea industry, the research aimed to assess the effectiveness of key Kaizen elements—continuous improvement practices, employee involvement, standardized procedures, and the Plan-Do-Check-Act (PDCA) cycle—within the specific context of Ethiopian tea production. A mixed-methods approach was employed, combining quantitative data from surveys and key performance indicators with qualitative insights gleaned from document analysis. This approach allowed for a more nuanced understanding of the complexities of Kaizen implementation. The study revealed significant correlations between certain Kaizen principles and improved productivity. A strong positive correlation was observed between continuous improvement practices and overall productivity, validating existing literature on Kaizen's impact. Furthermore, active employee participation in decision-making and problem-solving demonstrated a significant positive impact, highlighting the importance of empowering workers in process improvement. While standardization showed a positive correlation, the PDCA cycle unexpectedly exhibited a negative correlation with productivity, suggesting the need for further investigation and potential adjustments in its implementation. This counterintuitive finding underscores the importance of context-specific research in Kaizen implementation. The study recommends that MIDROC and other organizations in the Ethiopian tea industry prioritize fostering a culture of continuous improvement, actively engage employees in decision-making and problem-solving, and implement robust and appropriate standardized processes. Crucially, further research is needed to understand the specific challenges related to PDCA cycle utilization within the factory, including potential cultural or contextual factors influencing its effectiveness, and to develop tailored strategies for its more effective implementation. These strategies can enhance operational efficiency, reduce waste, improve product quality, and contribute to a stronger competitive advantage for Ethiopian tea producers in the international market.