Just in time adoption and performance of major oil companies in Kenya

Abstract

The recent decades’ global economic trends and the oil industry have turned out to be inseparable and they have a great impact on each other. The oil market is also exceedingly volatile because of various unpredictable factors. The purpose of this study was to assess Just in Time adoption and performance of major oil Companies in Kenya. The research design employed in this study was a descriptive survey research design with an illustration of a case study. The target populations for this study were the 15 major oil firms in Kenya, which are; Vivo Ltd (Shell), Total Kenya Ltd, Kenol/Kobil (Kenya Oil Ltd), Oil Libya Kenya Ltd, National Oil Corporation of Kenya (NOCK), GAPCO, Hashi, Gulf, Hass, Galana, Bakri, Engen, Oilcom, Rivapet and Fossil due to their market share and depot capacity. The respondents were selected from operations, customer service and procurement departments making a total sample of 45 respondents. Census sampling was used hence the entire target population of 15 major oil companies was studied. The study collected primary data which was analyzed by the use of descriptive statistics using SPSS (Statistical Package for Social Sciences) and presented through percentages, means and frequencies. The study concluded that the aspects of JIT practiced in the organization were; Continuous improvement, Set-up time reduction, Smoothed line production, JIT purchasing, Work team quality control and Flexible workforce. The study further concluded that the greatest performance indicators the respondents’ organization experienced as a result of implementation of Just in Time (JIT) techniques were; the organization currently has audited financial reports and it enjoys a good reputation with other partners. The study recommended that the companies should work to achieve the following specific requirements; Stabilize and level the master production system with uniform plant loading; Reduce or eliminate set-up times; Reduce lot sizes and lead times; Use total productive maintenance to reduce machine breakdowns; Train the work force to multi-skill; Develop few nearby suppliers, this may be difficult for the oil marketers during the first time but in the long run it can be achieved, and Use small-lot (single unit) conveyance using kanban card like system.