Application of operational research / management science in manufacturing companies in Kenya

Abstract

This study analysed the extent of usage of Operational Research / Management Science techniques in manufacturing organizations, specifically those in Nairobi. Among other things, the study explored the reasons behind the use of various OR! MS techniques surveyed, the problems encountered in their use and the situations in which OR! MS is applied most.

The study was necessitated by the fact that there are many OR! MS techniques that could be used in ever changing business environment while very little has been done in establishing the level of application in Kenya. Thus the study sought to establish whether, like it is the case in other countries in which ORIMS has been applied, the speed of diffusion of OR!MS is low. The study also sought to determine whether the problems encountered in those countries where ORIMS has been used are the same ones affecting the use/ no use of ORIMS techniques. Further, the study sought to determine the relative importance of the above factors.

A list of companies obtained from Kenya Association of Manufacturer was used as the sampling frame. A simple random sample of 62 firms was selected from this list using a table of random numbers. Questionnaireswere then distributed to the selected firms. Thirty six (36) firms responded and these were the responses used in the analysis.

The results of the analysis indicated that among the firms that responded, majority of them were locally owned and mostly food processing. It was also found that majority of them were familiar with simple ORIMS techniques and use such techniques more often. They said that the methods they don't use are difficult to understand.

In view of the above, it was recommended that departments of management science in higher institutionS of learning should re-define their role and include organisation of seminars, workshops and courses to cover the appropriate knowledge and skills in the area of OR/MS.