Maintenance Management of Automatic Teller Machines and Operations Performance of Commercial Banks in Kenya

Abstract

This study aimed to understand the MM practices adopted by ATM channels and operational performance of commercial banks in Kenya. The theories used in the study were: system theory, reliability theory and transaction cost theory. The study employed a descriptive cross-sectional design as the study sought to bring out relationships between constructs. The study focused on all the 14 ATM channel departments in commercial banks in Kenya ranked in the large and medium peer group categories by the CBK. Primary data was collected from 14 ATM channels managers and 14 Service desk staffs by use of an electronic questionnaire. Data collected was analyzed using STATA version 15.1 software. Regression analysis was used to establish if and which of the MM practice(s) adopted have impact on OP (cost, reliability, and quality). Regression was used to quantify the association between MM and OP. With regards to the study findings, the study concluded that application of proactive MM practices especially preventive maintenance resulted to high operational performance. The initial cost of implementing proactive maintenance may be high but the return on investment is high compared to reactive maintenance. MM practices should be seen as value addition processes and not a necessary bad expense. The study brought out the main determinants that management ought to put into consideration during selection of a fit for purpose MM practice. These comprised of a better understanding of the equipment series and functionality, familiarity with maintenance protocols, and organizational needs against the allocated resources. This study concluded that MM practices (preventive) positively impact OP (ATM reliability, ATM maintenance cost and ATM services quality) of commercial banks. The study recommends that future studies should focus on the challenges affecting application of predictive maintenance in commercial banks in Kenya. In addition, a comparative study should be carried out between the maintenance management practices in service industries and manufacturing industries. Further research needs to be focused on best approaches for successfully implementing the MM practices in different business systems. From the study 35% of the OP in commercial banks is attributed to MM practices, further research can be done to determine the other factors that influence the remaining 65%.