Effect of lean manufacturing practices on operational performance of manufacturing firms in Mombasa county, Kenya

Abstract

Manufacturing firms operating in the presents' rapidly changing and highly

competitive market have been pressured to improve all aspects of operational

performance; quality, flexibility and customer response time as well as reduce costs

of manufacturing. They have retorted by adopting a set of practices that is fast

becoming the dominant paradigm in manufacturing - lean manufacturing. Lean

manufacturing involves continuous elimination of waste from the value chain of

manufacturers thus enhancing customer value through continuous improvement of

operational performance of the manufacturers. This research sought to determine the

effect of lean manufacturing practices on the operational performance of

manufacturing firms in Mombasa County. The study was guided by to three

objectives: To determine the extent to which manufacturing firms in Mombasa

County have adopted lean manufacturing practices; To establish the effect of lean

manufacturing practices on operational performance of manufacturing firms in

Mombasa County and finally the challenges faced by firms when implementing lean

manufacturing. The data analyzed was gathered using a semi-structured questionnaire

targeting operations managers of manufacturing firms in Mombasa. The results were

presented using tables, pie charts and were analyzed using descriptive statistics and

regression models. The findings indicated that most manufacturing firms in Mombasa

practiced lean manufacturing. It was also clear that lean manufacturing firms had seen

an improvement in their operational performance. The effect of lean manufacturing

practices on the operational performance of manufacturing firms was tested against

four operational performance metrics; quality, flexibility, speed and cost). The

outcomes showed that lean manufacturing practices; just-in-time, continuous

improvement/kaizen, value stream mapping and total productive maintenance; are

positively related to operational performance while automation is negatively related

to operational performance. The study also established that the most experienced

challenge in adopting lean manufacturing was high costs of implementation and the

least was lack of top management support. The study recommends more awareness of

the importance of lean manufacturing practices in manufacturing firms and support

from the top management as critical tool for takeoff. Most of all, the researcher urges

manufacturing firms to implement lean manufacturing practices and create a culture

that accommodates them since they have excellent systems and structures that can

productively support it. If lean manufacturing practices are consistently implemented

the operational performance of the manufacturing firms can significantly improve and

this will enable manufacturing firms to survive the harsh business environment. The

study also recommends that for lean manufacturing to be successful it should to be

practiced within the entire supply chain.