The Influence of lean supply chain management practices on performance of manufacturing firms in Kenya
Keywords:Total Quality Management (TQM), Just In Time (JIT), Six Sigma, Kanban
AbstractLean Supply Chain Management is key for enhancing organizational performance in manufacturing firms. Despite many efforts to address lean supply chain management practices in manufacturing firms, there exist limited literature on the influence of lean supply chain management practices on the performance of manufacturing firms. Manufacturing companies face performance challenges which include an inadequate volume of sales, low profitability, uncompetitive market share, poor customer satisfaction associated with lean supply chain management practices. To fill this gap, the study sought to study the influence of lean supply chain management practices on the performance of manufacturing firms. In specific, the study aimed to assess the influence of just-in-time procurement on performance, to determine the influence of the Kanban system on performance, to examine the influence of Sigma Six on performance, and to establish the influence of Total quality management on performance. The study used a descriptive research design. The target population was 400 employees from five departments which forms the internal supply chain of Unilever Kenya Limited. A stratified random sampling technique was employed in attaining a representative sample from the target population. The study used a 20% sample size from the target population which is represented by 80 respondents. Data collection was done using structured open and closed-ended questionnaires. To test the validity and reliability of the research instruments a pilot test was conducted which involved a pilot sample of 16 staff who were excluded from the actual research study. The data were analyzed by use of descriptive statistics and inferential analysis through statistical package for social sciences (SPSS) version 21 software. Regression analysis results revealed that Just in Time Procurement had an insignificant negative influence on performance, Kanban system had a significant negative influence, Six Sigma lean supply chain practice had a significant positive influence on performance and Total quality management had an insignificant positive influence on performance. The study concluded that Just in Time Procurement, Kanban system and Total quality management have no notable influence on performance. However, Six Sigma is a good driver of organizational performance. The study recommends that manufacturing companies should deploy more resources towards the implementation of Just in Time Procurement policies. The study recommends that manufacturing companies should integrate the Kanban system with Just in time lean practices since the two practices have interdependence in operation. For Total quality management study recommends that manufacturing firms should adopt a continuous quality improvement strategy across all functions within the organization. Generally, resources (e.g. finances, system-process integration infrastructure, operational staff involvement, and top management support, etc.) are key from implementation to adoption and success of lean supply chain practices for contribution to the performance of manufacturing firms.
Adeyemi, S. L. (2010). Just-in-Time Production Systems (JITPS) in Developing Countries: The Nigerian Experience. J Social Science, 22(2), 145-152
Anthony. (2014). Manufacturing performance research paper. Performance of manufacturing industry: A quick guide, 1(1), 48-62.
Azman, D. (2010). Lean Supply Chain Implementation in Malaysia’s Electrical and Electronics Industry: Practices and Performances. , 3(2), 145-182
Ball, D., Geringer, M., Minor, M., &McNett, J. (2008). International Business: Challenges of global competition (11thed.). USA: McGraw-Hill Irwin, 21(2), 115-156
Bhasin, S., & Burcher, P. (2006). Lean viewed as a philosophy. Journal of Manufacturing Technology Management, 17(1), 56-72.
Boschman, G. (2006).Strategic responses of multinational organizations concerning human rights dilemmas.Tilburg: Neth, Tilburg University, 2(2), 135-157
Carolyne, K. (2013).Lean manufacturing practices and performance of Organizations listed at the Nairobi securities exchange. National security exchange: University of Nairobi. , 22(2), 45-52
Christopher. (2005) Logistics and Supply Chain Management: Creating Value Chains into Integrated Value System (6th Ed.). Upper Saddle River; N. Jersey, 22(2), 145-152
Cooper, M., & Lambert, M. (2014). Supply chain management: more than a new name for logistics. The International Journal of Logistics Management, 8(1), 10.
Cooper, D., & Schindler, P. (2006). Business research method (9thEd.). Boston: McGraw-Hill Irwin. , 8(12), 125-150
Cronbach, L. J., (1975). Beyond the two disciplines of scientific psychology. American psychologists, 30 (1), 116-127.
Daft, R. I. (2007). Understanding the Theory and Design of Organizations. Thompson press, 22(2), 45-72
Deming, W. E. (1986). Out of Crisis. Cambridge, M. A: MIT Centre for Advanced Engineering Study, 5(2), 118-123
Evenett, S., &Hoekman, B. (2005). Government procurement: market access, transparency, and multilateral trade rules. Eur J Polit Econ21 (1), 163–183.
Farah, M. (2013).Unpublished MBA Project on Lean supply chain management practices and performance in the public water sector in Kenya presented in university of Nairobi. , 7(2), 98-101
Farole, T., &Mukim, M. (2013).Manufacturing Export Competitiveness in Kenya. Policy Note: NLTA on Revitalizing and Diversifying Kenya’s Manufacturing Sector. , 22(5), 85-102
Gupta, A. K. (2012). Just in Time Revisited: Literature Review and Agenda for Future Research. International Journal of Research in Mechanical Engineering & Technology, 2(1), 969-971.
Gupta, R. (2013). Workforce diversity and performance. International Journal of Business and Management Invention, 2(6), 36-41.
Gupta, M., & Snyder, D. (2009). Comparing TOC with MRP and JIT: a literature review. International Journal of Production Research, 47(13), 35-39.
Hair, J., Hubona, G., & Ray, P. A. (2013). Using PLS path modeling in new technology research: updated guidelines. Industrial management & data systems, 1 16(1), 2-20.
Harry, M., & Schroeder, R. (2000). Perceptual measures of performance: fact or fiction? Journal of Operations Management, 22(1), 247-262.
Kimani, M. (2013). Lean Supply Chain Management in Manufacturing Firms in Kenya. Nairobi, KE: University of Nairobi. , 9(2), 134-158
Kootanaee, A. J., Babu, K. N., & Talari, H. F. (2013). Just-in-Time Manufacturing System: From Introduction to Implement. International Journal of Economics, Business and Finance, 1(2), 07–25.
Krafcik, J. (1998). “Triumph of the Lean Production System”. Sloan Management Review, 30(1),
Kumar, D. (2009). Balance among forecasting, network and inventory. Proceedings of 3rdAnnual Best Practice for Demand Forecasting & Inventory Optimization, Johannesburg. , 7(2), 345-453
Liker, J. (2014).The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer. New York: McGraw-Hill. 4(2), 145-178
Macharia, K. (2010).Kibaki’s ISO Plan turns the heat on Firms. Business Daily. , 4(2), 35-64
Marodin, G.A., Frank, A.G., Tortorella, G.L., & Fetterman, D.C. (2017). Lean production and operational performance in the Brazilian automotive supply chain. Total Quality Management and Business Excellence, 1(1), 1-16.
Martin, J. (2007). Deploying Lean Six Sigma Projects Using Lean Tools. McGraw-Hill. 1(1), 45–67.
Menard, S. (1995). Applied Logistic Regression Analysis: Sage University Series on Quantitative Applications in the Social Sciences. Thousand Oaks, CA: Sage. 15(12), 93–107.
McManus (2012). Lean enterprise value: Insights from MIT’s Lean Aerospace Initiative. New York: Palgrave. 2(1), 20–38.
Musyoka, M. (2015). Lean Supply Chain Management Practices and Performance of Large-Scale Manufacturing Firms in Kenya. Nairobi KE: University of Nairobi. , 22(2), 145-155
Mugenda &Mugenda. (2003).Research methods: Quantitative and Qualitative approaches. Nairobi: Acts Press. , 1(2), 155-167
Naylor, L. (1999). Managing Supply Chain Inventory: Pitfalls and Opportunities. Sloan Management Review, 33(3), 65-73.
Nahm, V., & Koufteros, X. A. (2003). Just-in-time manufacturing, management accounting systems and profitability. Accounting and Business Research, 30(2), 137- 151.
Nightingale, D. (2005). Lean Supply Chain Management Principles and Practices1 (1), 25–38.
Ogutu, M., & Samuel, C. (2011). Strategies adopted by multinational firms to cope with Competition in Kenya. AIBUMA Conference, July 12-13, 2012, Kenyatta International Conference Centre (KICC) Nairobi, 2(1), 12–13.
Ondiek, O. (2012). Assessment of material management in Kenyan manufacturing firms. Journal of business studies quarterly, 3(1), 40-49.
Papadopoulou, T., & Özbayrak, M. (2005): “Leanness: Experiences from the Journey to Date”. Journal of Manufacturing Technology Management, 16(7), 106-142.
Rexhepi, L., & Shrestha, P. (2011). Lean Service Implementation in Hospital: a Case study conducted in University Clinical Centre of Kosovo, Rheumatology department. 2(1), 21–38.
Richard, P. J., Devinney, T. M., Yip, G. S., &Johnson, G. (2009). Measuring Performance: Towards Methodological Best Practice. Journal of Management, 3(3), 71-98.
Rono, C. (2013). Lean Manufacturing Practices in a Continuous Process Industry: A Case Study of Bamburi Cement Limited. Nairobi, KE: University of Nairobi. 1(2), 35–58.
Shahram, T., & Cristian, M. (2011). The impact of lean operations on the Chinese manufacturing performance. Journal of Manufacturing Technology Management, 22(2), 223–240.
Skjoett-Larsen, T. (2013). Supply chain management: a new challenge for researchers and managers in logistics. The International Journal of Logistics Management, 10(2), 41-54.
Smart, A., Hudson, M. & Bourne, M. (2001). Theory and practice in SME performance measurement systems, International Journal of Operations & Production Management, 21(8), 106-115.
Sparks & Jared (1836). The Work of Benjamin Franklin. Boston. 2(2), 92-103.
Tabachnick, B. G., & Fidell, L. S. (2001). Using Multivariate Statistics (4th Ed.). Boston, MA: Allyn and Bacon. 13(2), 58–73.
Tersine, R.J., & Hummingbird, E.A. (1995).Lead-time reduction: the search for competitive advantage. International Journal of Operations & Production Management, 15(2), 28-51.
Tourki, T. (2010). Implementation of Lean within the Cement Industry. Leicester, UK: University of De Montfort 1(1), 14–28.
Ugochukwu, P. (2012). Lean in the supply chain: research and practice. Linkopings University, Sweden 2(2), 23–35.
Wanjiku, M. (2013). Lean Supply Chain Management in Manufacturing Firms in Kenya. Nairobi, KE: University of Nairobi. 2(1), 23–37.
Weru, M. (2015). Lean Manufacturing Practices and Performance of Large-Scale Manufacturing Firms in Nairobi. Nairobi, KE: University of Nairobi. , 1(2), 145-163
Womack, J. P., & Jones, D. T. (1996). Beyond Toyota: How to Root Out Waste and Pursue Perfection. Harvard Business Review, September-October, 1(1), 140–158.
Womack, J. P., & Jones, D. T. (2006). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Simon and Schuster, New York, NY. 1(2), 45–68.
Womack, J. P., Jones, D. T., & Roos, D. (1990). The machine that changed the world: Based on the Massachusetts Institute of Technology 5-million dollar 5-year study on the future of the automobile. New York 2(3), 12–39.
Yamane, Taro. (1967). Statistics, An Introductory Analysis, 2nd Ed., New York: Harper and Row. 4(3), 27-88.
Yasin, M., Small, M., & Wafa, M.A. (1997). An empirical investigation of JIT effectiveness: a perspective. International Journal of Management Science.25 (4), 461–471.
Copyright (c) 2022 handard kimari, Dr. Samuel Muli
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).