In today‘s market, competition companies are striving to remain the leader in the market. But to exceed customer expectation with limited resource utilization is becoming a challenge. Productivity is one of the major determinants to remain competitive in the market. Nowadays companies are introducing different methods and techniques to improve the productivity of the company. The company selected for the case of this study is Kangaroo Shoe Factory. Nowadays the company has encountered a lower productivity which leads it to be incompetent in the footwear manufacturing industry. This study believed implementing kaizen is the most suitable productivity improvement tool for the company. The study used the two major kaizen tools which are 5s and muda elimination concepts. Sideways the relationship between this two major kaizen tools with productivity improvement have been studied. The main objective of the study is improving productivity of Kangaroo Shoe Factory by identifying all non-value added activities of C1 model shoe. To achieve the objective, a literature survey has been conducted to get an empirical knowledge on the study. Data is gathered through multiple site visits and semi-structured interviews with the company‘s key staffs, as well as relevant company documentations were examined. The study has shown that the company‘s productivity is low thus by implementing kaizen activity the company can improve its efficiency. The results of this method were highly encouraging. Some of the key benefits entail an income by selling the red tagged machineries, raw materials, process parts, and finished shoe parts, the company can earn an income of around 3.5 million birr. By reducing the time loss, the company will get the opportunity of acquiring 32,760 ETB profit per single order quantity. Key words: Kaizen, 5S, Muda, Productivity