Effect of Lean Practices on Operational Performance of Shipping Firms in Kenya

Abstract

The aim of the study was to identify the effects of lean practices on the operational performance of shipping companies in Kenya. The research project was based on three theories, the resource-based view, the theory of constraints and the theory of contingency. In this study, the lean practices were Just in Time, 5S, Total Quality Management (TQM) Kaizen and Value Stream Mapping. In this study, a descriptive research design was adopted to collect data from respondents. The population for the study consisted of 78 shipping companies in Kenya, comprising ship owning and operating companies operating in the East African region, which includes Kenya, as well as shipping agents representing various foreign companies and acting as logistics and service centers for their different customers. A questionnaire was used to collect data from shipping companies. The respondents were sent a total of 78 questionnaires, of which only 45 were returned. This represented a response rate of 57.7 percent and was considered appropriate for the study, as suggested by Mugenda & Mugenda (2007), which claimed that a response rate of 50% was sufficient. The study concluded that Just in Time, Kaizen and Value Stream Mapping have a positive relationship with operational performance in general. In particular, 5S and TQM were found to be negatively related to operating performance. Although 5S was found to be insignificant, the effect of the independent variables and the dependent variables was significant. This study recommends improving the adoption and implementation of lean practices such as Just in Time, 5S, TQM, Kaizen and Value Stream Mapping to improve operational performance, among others. In order to benefit from the use of these lean practices, it is advisable to apply all lean practices. This is because one or two lean practices cannot achieve the desired operational performance in comparison with all synergistic practices.