LEAN SUPPLY CHAIN MANAGEMENT AND PERFORMANCE OF CEMENT MANUFACTURING FIRMS IN MACHAKOS COUNTY, KENYA

Patricia Musenya Mbevi, Dr. Charles Ndeto

Abstract


In Kenya, cement manufacturing supports the construction industry, which is a major driver of economic growth and employment. To remain competitive in the cement industry as well as increase efficiency and effectiveness, various firms have adopted lean supply chain management. The use of lean supply chain management contributes to improved operational efficiency, cost reduction, and overall competitiveness in the industry. However, despite the adoption of lean supply chain management, firms in the cement manufacturing industry in Kenya have been experiencing a decline in their profitability, market share and customer satisfaction. Therefore, the general objective of the research was to examine the effect of lean supply chain management on performance of cement manufacturing firms in Machakos County, Kenya. The specific objective of the study was to examine the effect of quality management and distribution management on performance of cement manufacturing firms in Machakos County, Kenya. The study adopted a descriptive research design. The target population was seventy-two (72) heads and assistant heads of production, procurement, store/warehouse, transport, sales and marketing as well as quality assurance departments in 6 cement manufacturing firms in Machakos County. The study used a census approach and hence the whole population was included in the study. The research made use of both primary as well as secondary data. Secondary data was collected from the annual; reports of cement manufacturing firms. Primary data was obtained by use of semi-structured questionnaires. A pilot test was conducted in Ndovu Cement to assess the reliability and validity of the instrument for research. Both quantitative and qualitative data was generated by the questionnaires. Qualitative data was analyzed using thematic analysis, and the results were presented narratively. Descriptive as well as inferential statistics will be employed in analyzing quantitative data with an assistance of SPSS version 25 statistical software. Descriptive statistics comprised of mean, standard deviation, percentages and frequency distribution. Inferential data analysis was carried out using Pearson correlation coefficient and linear regression analysis. The study found that quality management had a positive and significant effect on performance of cement manufacturing firms in Machakos County, Kenya. In addition, the study found that distribution management had a positive and significant effect on performance of cement manufacturing firms in Machakos County, Kenya. The study recommends regular training programs for updating employees on changes in quality assurance procedures. Also, cement manufacturing firms should employ advanced technology for accurate and real-time inventory tracking. Further, the management of cement manufacturing firms should implement a real-time distribution management system.

Key Words: Lean Supply Chain Management, Performance of Cement Manufacturing Firms, Quality Management, Distribution Management


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References


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