Just-in-time Adoption and Operational Performance of Cement Companies in Kenya

Abstract

This study aimed at establishing effects of Just-In-Time (JIT) adoption on operational performance of cement companies in Kenya. Specifically, this study aimed at establishing how much Just-In-Time (JIT) is applied in cement firms in Kenya, to determine the factors that enhances JIT adoption in cement firms in Kenya and to establish the relationship between JIT adoption and operational performance of cement firms in Kenya. This study was founded on Henri Fayol Principle of Operation Management, and Theory of Constraints (TOC). The research design adopted in this study is the descriptive research design, the study targeted operations managers, quality control managers and procurement managers of these companies. Therefore, the study population consisted 18 managers in the major cement companies in Kenya. Purposive sampling method was used to select the 18 operations managers, quality control managers and procurement managers. The study collected both primary and secondary data. The study used a questionnaire for primary data collection purposes. The study generated both qualitative and quantitative data. Quantitative data collected through the questionnaires were checked for completeness and accuracy and usability. Descriptive statistics was used to quantitatively describe the imperative structures of the variables using SD, frequency and the mean. The researcher employed a multivariate regression model to study the relationship between employee training, information communication technology, top management support and level of payroll and operational performance of major cement companies in Kenya. In the first objective, the study established that JIT in cement manufacturing companies has been implemented to a great extent. The second objective established among the factors that enhanced JIT implementation includes; top management support, Information Communication and Technology (ICT), training and level of payroll. JIT lead to reduction in waste, lead time, stock out, cost of production and production time. Further, the study established that there was a positive direct relationship between JIT adoption and operational performance of cement firms in Kenya. This study concludes that JIT inventory management technique presented high operational advantages to cement manufacturing firms in Kenya. Employee training, ICT utilization and top management commitment are paramount in ensuring successful implementation of JIT inventory management technique. Cement manufacturing companies should uphold continuous implementation of JIT inventory management technique. Cement should firms should continually ensure continuous employee training and development. However, quality and consistency measures must be embraced to ensure that skills acquired are relevant and can bring about the anticipated changes toward efficient implementation. JIT inventory management cement manufacturing companies should lay adequate IT infrastructure. For JIT implementation to take place in an effective manner, top management of cement manufacturing companies should remain fully commitment. The top management ought to closely monitor the process in order to incorporate the necessary changes in timely manner.