Effect of Lean Six Sigma on Operational Performance of Food Processing Firms in Mombasa County, Kenya

Abstract

Lean six sigma, a continuous improving technique organizations adopt for enhancing operational performance. It encompasses a set of tools useful in evaluating production bottlenecks and developing improvement measures. Originally utilized in manufacturing sector it has spread its tentacles to the service front with immense and tangible benefits. This study undertook to inquire into benefits of LSS amongst food processing firms in Mombasa County, Kenya including challenges encountered in adoption. Practices of Lean Six Sigma under study were Organizational Leadership, Customer Focus, Employee Involvement and Production Control. Theories used to anchor this study were Resource-Based View, Theory of Constraint and Customer Satisfaction Theory. The population under study were 62 food processing firm in Mombasa County, Kenya. A census survey was adopted to examine Lean Six Sigma`s effect on Operational Performance of food processors. Data was collected via closed ended questionnaire which composed of four parts herein A, B, C and D to capture data on demographics, Lean Six Sigma practices, operational performance measures and challenges on Lean Six Sigma implementation. Original data was obtained via questionnaire and a response rate of 77% was achieved. Normality and reliability test were carried out to check on the diagnostic nature of obtained data. Test of Normality performed indicated that data procured was normal. Internal consistency of study variables obtained from computation of Cronbach Apha test showed that data obtained was reliable for carrying out this examination. Descriptive statistics deployed to determine LSS practices amongst food processors within Mombasa while Pearson Correlation Coefficient utilized to examine extent of study variables association. Positive association existed linking operational excellence and production control and top managerial engagement. Negative association linked operational performance, customers` focus and employee`s involvement. Multiple regression model indicated that production control and organizational leadership played key roles in influencing operational performance in food processors. Analysis of variance demonstrated that the residuals of study variables are distributed normally at all performance levels and variance persistence across all operational performance levels. From results obtained customer care carried the largest weight amongst other LSS practices with a mean of 4.52 implying that food processors should make their customer their sole purpose for their venture existence. The study also revealed that inadequate training posed the biggest challenge for food processors while communication barriers caused the least disharmony. The study commended execution of more of such studies to determine unknown factors affecting operational efficiency of food processors. The study concluded that LSS affected Operational performance of food processors and the effect was 63% of overall variation recommending its adoption in totality since selective singling out of individual LSS practices may not yield desired results.