Lean supply chain management practices and organizational performance of cement manufacturing companies in Kenya: a case study of Bamburi Cement Company Limited
Ondieki, Frankline Babu
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Lean Supply Chain Management philosophy is considered to enhance customer value through waste elimination and continuous improvement. The cement manufacturing industry in Kenya has recently been on the spotlight for adverse technical innovations and systems reengineering in the quest to mitigate the ever increasing competitive operating platform. This research focused on determining the extent of practice and impact of lean supply chain management practices on organizational performance of cement manufacturing companies in Kenya. Specifically; the study aimed at establishing the lean supply chain management practices used in Bamburi Cement Limited, and also establishing the impact of lean supply chain management practices on the performance of Bamburi Cement Limited. The study was bolstered on resource-based view and systems theories. A descriptive design was used in studying the research problem and analyzing for the objectives. The target population included all the 175 personnel from all departments of Bamburi Cement Limited –Nairobi grinding plant. A stratified random sampling technique was used: of which 20% sample size was subjected to each categorical stratum to give a total sample size of 35 respondents. The researcher collected quantitative and qualitative primary data by use of open and closed ended questions. The questionnaires engaged reverse Likert scales. Data was subjected to Statistical Package for Social Science (SPSS) version 20 and further exported and refined in Microsoft excel for proper presentation. The analysis was descriptively done by use of mean, frequency and percentile tables and also by use of column charts. The response rate of 89% was sufficient enough for analysis. The findings indicate that all the lean supply chain practices were engaged by the company. However lean manufacturing was the most highly engaged, followed by lean transportation, lean supplier, lean procurement, and lean customer respectively. The analysis on their effect on performance indicates an average mean of 1.9418. These readings indicate that lean supply chain management practices impact on organizational performance at a higher level. The study findings also signposts that internal lean practices tend to perform higher than those extending outwards. The study recommends that staff training be done in concern of mean practices employed within the company’s supply chain. The intensity of implementing these practices should also be uniformly distributed so as to balance internal and external oriented practices.
University of Nairobi
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