Lean Supply Chain Management Practices and Business Performance of State Corporations in the Ministry of Health

Abstract

The general objective of this study was to assess lean supply chain management practices and their impact on business performance of state corporations in the Ministry of Health. This study adopted a descriptive research design. The target population of this study included all state corporations in the Ministry of Health. There were 6 state corporations in Ministry of Health as of December 31st, 2014 (GOK, 2014). Since the study population was small, a census study was done. This study collected primary data using a self-administered questionnaire. This study used descriptive statistical analysis in terms of mean, frequencies, percentages and standard deviation and inferential statistical analysis in terms of regression and correlation analysis. In analysis the quantitative data, the study used descriptive statistics using SPSS software. The study concluded that relationship is positive and moderate correlation between lean supply chain management practices (overall) and business performance of state corporations in the Ministry of Health as the R = 0. 873; R2 of 0.762 indicating that 76.2 % of variation in business performance of state corporations in the Ministry of Health is explained by lean supply chain management practices. Overall, Upholding Problem Search and Problem Solving had the least effect on the business performance of state corporations in the Ministry of Health, followed by Focus on Waste Elimination, Sourcing for Customer Need Information, then Undertaking of a Value Stream Analysis, while Existence of Workplace Organization had the highest effect on business performance of state corporations in the Ministry of Health. Based on the findings, this study recommends emphasis in focusing on importance of customer value and also that those implementing and maintaining lean should make it continuous process since lean is “behavior-driven”.