A survey of the factors affecting operational productivity in small and medium sized manufacturing firms in kenya

Abstract

This study sought to establish the factors affecting the operational productivity of the small and medium sized manufacturing firms in Kenya and to establish the challenges facing small and medium sized manufacturing firms in achieving optimal operational productivity. The study utilized a survey research design. The population of this study was the small and medium sized manufacturing firms registered with the Ministry of Industrialization and whose headquarters are based in Nairobi. A semi-structured questionnaire was administered to the persons heading the production and / or operations departments in the small and medium sized manufacturing firms. Cross tabulation, correlation analysis , multiple regression analysis and factor analysis were used to determine the relative significance of the factors. Analysis of the factors indicated that quality, human resource issues, management and technology related issues had a strong effect on operational productivity. On the other hand, capital and ergonomics/safety had a small to very small effect on operational productivity. Correlation analysis indicated that four of the six independent variables (quality, technology, management and human resource issues) had strong correlations with operational productivity. Multiple linear regressions clearly indicated a link between safety as a business objective and increased levels of production, quality, and cost efficiency. From the study findings, the study makes the following recommendations. First, for small and medium sized manufacturing firms to improve their operational productivity, they should enhance their human resources and consider improvement efforts in quality of their output. Firms should also adopt state-of-the-art manufacturing and information technology. To address the challenge posed by power outages, the study recommends that the government invests in alternative sources of power such as geothermal power. This will ensure a continuous supply of energy and reduce dependence on hydroelectric power which is subject to weather fluctuations.