Consequences of Kaizen Practices in MSMEs in the Philippines: The Case of the Manufacturing Productivity Extension Program (MPEX)

Authors

Nestor O. Raneses, University of the Philippines Diliman
Nelson G. Cainghog, University of the Philippines Diliman
Mili-Ann M. Tamayao, University of the Philippines Diliman
Kristine Mae C. Gotera, University of the Philippines Diliman

Document Type

Book

Publication Date

2-15-2020

Abstract

The Manufacturing Productivity Extension Program (MPEX) is a fully subsidized public-instigated productivity improvement program directed toward the micro, small, and medium enterprise (MSME) sector. While not advertised and packaged as a Kaizen initiative, it has all the elements of the Kaizen philosophy. Based on survey responses from 64 MPEX beneficiaries and 47 non-MPEX beneficiaries, the study showed that MPEX increased the number of product lines implying that Kaizen practice leads to product innovation among firms. Due to data and confounding issues, significant difference in productivity in terms of number of workers and sales per worker was not established. Firm asset size was implied to influence the capability to implement Kaizen. Regulatory compliance and customer demand requirements and entrepreneurial capacity are catalysts for enabling, adopting, and sustaining Kaizen implementation.

Recommended Citation

Raneses, N. O., Cainghog, N. G., Tamayao, M.-A. M., & Gotera, K. M. C. (2020). Consequences of kaizen practices in MSMEs in the Philippines: The case of the manufacturing productivity extension program (MPEX). In A. Hosono, J. Page, & G. Shimada (Eds.), Workers, Managers, Productivity: Kaizen in Developing Countries (pp. 293–316). Springer. https://doi.org/10.1007/978-981-15-0364-1_13