Organisational Factors Influencing Adoption Of Lean Logistics In Manufacturing Companies In Nairobi, Kenya: A Case Of Roto Moulders Limited

Abstract

The study intended to determine organizational factors influencing adoption of lean logistics in manufacturing companies. Lean logistics has significantly become a significant factor in enhancing organizational success. Lean logistics is one approach that focuses strongly on continuous improvement of organizational processes towards realization of increased efficiencies. Once knowledge is acquired, mitigation measures should be applied to prevent further wastage, and foster value added lean management. This research study studied organizational factors influencing adoption of lean logistics. Case of manufacturing companies, Roto Moulders Limited. Four organizational factors were studied, they are: Organizational structure, Leadership, Skills and expertise and Resource availability on manufacturing companies. The study used descriptive survey design with a target population of 120 individuals in logistics competency. This comprised of drivers, forklift operators, load builders, checkers, stock controllers, administrative assistants, fleet technicians and logistics team leaders. Using kerjice and Morgan table a sample size was determined, 98 individuals were selected from the 120 target population, and stratified sampling was used to select sample size from the strata. A six level data collection questionnaire, comprising of closed ended questions was utilized and interview guide as a data collection tool. Collected data was cleaned, decoded, organized and analyzed using SPSS software. The software analyzed the data using both descriptive statistics and inferential statistics.73 (79.4%) of respondents managed to successfully fill the questionnaires and interview guide. In terms of age 41.7% were employees between age 35-45 years which the highest number of respondents.interms of working period 32(43.8%) of employees had worked in the organization for more than 3 years. . The findings indicated that all organizational factors studied related moderately with the adoption of lean logistics in manufacturing companies in Nairobi with resource availability leading with p=0.005, followed by skills of employees with p=0.004, followed by leadership with p= 0.003 and the least is organization structure with p=0.001. The study recommended that organization should identify structures that fits the organization, priority be given to training and imparting of technical skills required for integration of lean management and enough resources to be availed for successful lean adoption. The study concluded that all employees should acquire necessary skills needed to implement lean adoption and that the employees should undergo refresher trainings, be coached and developed by lean experts. Secondly, it is important for the organization to ensure that all resources required are availed at the right time by allocating enough time and funds for all operational expenses.