Abstract:
KAIZEN has been introduced in ETHIOPIA and also in Dire Dawa to strengthen Micro and
Small Enterprises (MSEs) through productivity and quality improvement. The research aims
to examine the practices and challenges of implementing 5S-KAIZEN among MSEs in Dire
Dawa. The total population the study covers 356 enterprises which all implements kaizen. Out
of which the sample size of 192 enterprises were selected for the study and carried out using
questionnaires and interviews with top 10 enterprises that KAIZEN implementation was held
in Dire Dawa city administration micro and small enterprise. The study used descriptive
survey design methodology with simple random sampling technique to determine the
participants. Statistical analysis like DESCRIPTIVE, CORRELATION and REGRESSION
were applied in the study. The conclusion drawn from the analysis implies that kaizen
management support and kaizen promotional team play a significant role. Thus, the study
recommends that manager/owner should focus on improving performance of work area,
should support employee to gain new skill, should giving training to understand kaizen related
issue. KAIZEN is acceptable among MSEs, however, its implementation is very challenging.
training of managers and employees, motivating employees, transforming management styles
and making KAIZEN a national campaign as suitable strategies to facilitate successful
adoption and implementation of KAIZEN in Dire Dawa city.
