Supply chain factors and delivery of power generation projects at the Kenya electricity generating company limited
Abstract
The purpose of the study was to determine supply chain factors that influence the
delivery of power generation projects in KenGen. The research design was a case
study of Kenya Electricity Generating Company (KenGen). The study used both
primary and secondary data to meet its objectives. Collection of primary data was
through the use of questionnaire. The researcher used descriptive statistics and
principle component factor analysis to analyze quantitative data. For qualitative data,
the researcher used content analysis. From the study findings, the researcher
established that procurement had a high influence on delivery of power generation
projects in KenGen. It was also revealed that transportation and quality control has a
big impact on delivery of power generation projects in KenGen as the company was
found to use uneconomical means of transport and suffered from lack of systems for
due diligence and benchmarking. The study concludes that materials or inventory
control as well as materials handling and storage influenced delivery of power
generation projects in KenGen. The study further concludes that order processing and
production planning greatly influenced delivery of power generation projects in
KenGen as there were cases of increased variation orders, delay in order processing
and delays in manufacturing of equipment and material. The study recommends that
training is required for the users of procured equipment and materials. Independent
due diligence should also be carried out before awarding contracts to potential
contractors. In addition, proper planning of projects and exhaustive perusal of
procurement documents will enable overcome hurdles experienced during the
procurement stage.
Publisher
University of Nairobi