Lean Production and Operational Performance of Large and Medium Sized Construction Firms in Nairobi, Kenya

Abstract

Lean production is a business oriented philosophy that enable firms both in manufacturing and service sector to focus on elimination of waste and/ or any non- value adding activity from their production systems resulting to value delivery to their customers. In spite of mixed reactions on the impact of lean production practices and operational performance from empirical studies, lean production continues to generate considerable global interest due to the benefits firms implementing its practices continues to enjoy. This study focused on evaluating widely applied lean production practices in the Kenyan construction sector and their impact on operational performance of these large and medium sized firms. Survey was made through physically and electronically delivered questionnaires. A response of 71 respondents was successful. According to the study, most of the respondents noted that quality management tools were moderately implemented, while last planner system was least implemented by the firms. A weak positive relationship was found to exist between operational performance and lean production practices, which was obtained through multiple regression analysis. This study recommends large and medium sized construction firms to implement a holistic lean system due to the synergy benefits attained rather than implementing an individual lean practice. However, considerable concern should be established on the lean practices being integrated. The study further recommends higher extent of the long term lean strategy implemented, as well as lean knowledge dissemination amongst firm employees in order to maximize the benefits of lean production.