Operations management practices and performance of electric utility firms in Kenya

Abstract

Operations Management has changed in the face of evolving businesses and the recent trends gives a very good idea about what to expect in the coming future. Operations management practices include quality management, inventory management, supply chain management, risk management and information technology. The study was aimed at establishing operations management practices in electric utility firms in Kenya. Additionally, the study established the performance of electric utility firms in Kenya and determined the relationship between operations management practices and performance of electric utility firms in Kenya. The type of data collected was both primary and secondary data. The primary data collection instrument for this study was a designed questionnaire, as questionnaires are one of the widely-used primary data collection tools. The secondary data on performance was obtained from the electric utility firms end year financial report. It was found that there is a chance of improving the activities of the companies by employees. The operation costs in the firms were also found to have reduced due to improved activity and work in the organization proving that they were efficient. The findings therefore point to very high levels of efficiency among Electric utility firms in Kenya. The study established that electric utility firms in Kenya are using the most effective way of calculating safety stock levels. This was used to enhance inventory management. From the study, it was found that operations management practices had a positive influence on performance. The study recommended that they should utilize supply chain management initiatives since it will enhance transformation process of the raw materials to end-user services, continuously monitor quality in their services, always undertake proper inventory control, identify risks in all processes in the utility and encourage research and development.