Operations Management Practices and Performance of Steel Manufacturing Firms in Kenya

Abstract

Changes in business environment occasioned by globalization and development in information communication and technology have revolutionized the way manufacturing is conducted. The entire manufacturing process from reception of input to generation of outputs needs to be closely monitored to ensure high quality products are produced in a more effective manner. The issue of organizational performance has been central in sustaining businesses in dynamic technological innovations, political and economic factors and customer demands. Organizations employ various practices in order to achieve high efficiency which results into their performance. The study sought to determine how operational management practices influenced performance with specific reference to Kenya’s steel manufacturing firms. The type of design adopted was descriptive. The study targeted one manager from each steel manufacturing, form Operations management department making a total of 165 managers as the respondents. The study used a census design because the population was small and it is easily accessible. This study collected primary data using structured questionnaires. The study found out that operation management practices positively influence performance of steel manufacturing company. The study concludes that manufacturing firms’ labor was easily available and the distribution was easily accessible. The firms hired more workers when demand increased and increased working hours depending on demand. The firms experienced limited employee skills, there was limited capital to invest in the operations management practices and relatively high costs associated with new technologies hindered the application of management practices. The study recommends that manufacturing firms’ labor ought to be easily available and the distribution ought to be easily accessible. The firms ought to hire more workers when demand increases and increase working hours depending on the demand. The organization ought to implement a quality management system and conduct regular staff training on quality management programs. Manufacturing firms ought to increase their market edge due to increased level of competition in the industry. Employees ought to be ready to adapt to change and the cost of implementation of operations management practices should not hinder the application of operation management practices.