Evaluation of the status of the Kenya manufacturing sector through the Hayes Wheel Wright Framework

Abstract

The study documented the strategic importance of the manufacturing function, of Kenyan firms. The study explored the level of pro-activeness of the manufacturing function as a discriminating factor, for manufacturing functions that offered strategic benefits to the firm and those that didn't. A sample of 45 manufacturing firms in Kenya was studied. The sampling frame was derived from the Kenya association of manufacturers 1998/99 directory, the most current listing of Kenyan manufacturing firms. Efforts were made to ensure representation from all sub-sectors to ensure subsequent generalization. The study was necessitated by the recognition of the fact that the changing business environment that the country is currently facing necessitated the manufacturers to look for new strategic positioning. The interrelationship between production operations and corporate strategy is not easily grasped, and thus the studies objective to shed more light on this interrelationship. It was also noted that there had been no previous study into the manufacturing sector that focused specifically on manufacturing and its role in corporate strategy. The findings of the study indicate that, manufacturing accepts a reactive role rather than a proactive role; such a situation was attributed to the state of the economy that seems to encourage marketing and financial control. Additional findings indicated that, the various decision areas in the manufacturing function were at different levels along the Hayes and Wheelwright continuum, but the overall sector had achieved a between stage2 and stage3 level of manufacturing effectiveness, but showed signs of moving towards stage3. On the findings of this study it was recommended that, there was a need to propagate the concept of stage4 level of effectiveness and to educate and motivate local manufacturing practices to move towards it, since it was noted that, good practices should lead to increased competitiveness