The extent of adoption of lean thinking in the Kenyan petroleum industry

Abstract

Lean thinking seeks ways of eliminating waste. Lean thinking has been applied in both the manufacturing and service industries and is therefore applicable to any industry. The aim of the study was to examine the degree of adoption of lean principles in the Kenyan petroleum industry. Linked to this is the notion that the adoption of lean principles leads to market leadership as indicated by profitability. A survey of the major petroleum companies in Kenya was conducted. The target population comprised of the five major petroleum companies that dominate the Kenyan market. The list of the five major companies was obtained from the Petroleum Institute of East Africa (PIEA). Because the relevant data were not available in secondary form, primary data collection was necessary. The questionnaire was divided into three parts: part A had general questions about the company; part B comprised of a scale to measure the extent of adoption of lean principles in the company and part C had operational dimensions of lean principles. The questionnaire was distributed electrically and in some instances by hand delivery. It was self administered with a few instances requiring a short interview. From the study it was found that the companies in the Kenyan petroleum industry had widely adopted the lean principles and thus there continued leadership position in the Kenya market. Other companies are encouraged to adopt these principles in order to follow this path.