Effect of adoption of world class manufacturing on the operational performance of Unilever Kenya limited, tea division

Abstract

With the introduction of modern technology and the onset of globalization, the world is transforming into a global village. Orga nizations are facing very tough competition both locally and internationally and firms are striving to graduate to world class status in order to compete favorably in the market. The objective of this study is to determine the effect of implementation of world class manufacturing on the operational performance of Unilever Kenya, Tea Division. In order to determine the effects of implementation of WCM in Unilever, it was necessary to look at the following parameters; customer complaints, customer case fil l on time (CCFOT) or in other terms in time on full (OTIF), tea calibration accuracy, forecast accuracy, days on hand inventory. One null hypothesis was tested with a one tail t - test on 0.05 level of significance for 12 months done before the implementati on and another 12 months after implementation. A break of 1 5 months after implementation was taken into consideration to allow for the implementation to take effect. The findings of the study revealed significant improvements in the operational performan ce at 0.05 significance level. On time in full deliveries drastically improved, which also translated to high levels of customer satisfaction after implementation of world class manufacturing practices. The study recommends total involvement of all stake holders when implementing world class manufacturing practices and that top management should drive the entire process. Since world class manufacturing concept is a continuous process, the researcher also recommends that firms should be on the lookout for new production methods and upgrade their practices if they are to remain competitive