Implementation of Kaizen 5S, MUDA, and PDCA for Productivity Improvement of Manufacturing Firms in Ethiopia: The Mediating Role of PDCA and Waste (Muda) Elimination between 5S and Productivity Improvement

Abstract

This study primarily aimed at investigating empirically the relationship between Kaizen 5S (housekeeping), waste (Muda) elimination, PDCA analysis and productivity improvements among manufacturing firms in Ethiopia using the Structural Equation Model (SEM). The study targeted 30 export-oriented manufacturing firms. However, in order to overcome the problem of common method biases, the data were collected from multiple respondents in each firm. The questionnaire was distributed to 313 respondents that were selected proportionally from 30 industries. The data for the study were collected through a five-point Likert type questionnaire. Kaizen implementation practice was examined through housekeeping (5S), Work standardization (PDCA), and Waste (Muda) elimination, and productivity through the cost of production, labor and capital utilization. The Structural Equation Model (SEM) was employed to investigate the direct and indirect relationship between the variables. The SEM direct effect result indicated that the firm’s 5S implementation practice was directly related to the elimination of the seven deadly wastes and continuously improved the manufacturing process through solving problems in the best scientific way. Furthermore, the 5S, waste elimination, and PDCA Analysis of Kaizen continuous improvement methodologies were perceived as methods for adding to productivity and efficiency in the production process. Moreover, the SEM bootstrapping result indicated the fact that PDCA analysis partially mediated the causal relationship between kaizen 5S (housekeeping) and productivity.