Kaizen Implementation and Performance of Manufacturing Firms in Nairobi County Kenya

Abstract

All across the world, firms are experiencing dynamic changes in their environments and this may present challenges. The Kenyan manufacturing sector is key in the development plan as envisioned in Kenya’s vision 2030. To achieve this, the manufacturing sector in Kenya must therefore come up with ways to ensure their sustainability moving forward. The general objective of the study was to establish the effects of Kaizen implementation on operations performance in the case of manufacturing firms in Nairobi, Kenya. Specifically, the study sought to establish the effect of quality circles, teamwork, total productive maintenance systems and personal discipline on the operations performance of manufacturing firms in Nairobi County. The study was guided by the operations management theory, dynamic capabilities theory, the kaizen theory and the balance score card theory. The study used the descriptive research design and targeted 52 manufacturing firms in Nairobi, Kenya. Simple random sampling was used to select 175 respondents from the 52 manufacturing companies were conducted where the unit of observation was the operations manager, human resource managers, finance managers, strategic managers, marketing managers and the sales manager from each of the manufacturing companies. The researcher collected primary data using questionnaires while secondary data from the companies’ financial statements was collected. Content validity was established by subjecting the research instruments thorough scrutiny by the supervisors overseeing the study while Cronbach’s alpha coefficient was used to determine reliability. Descriptive analysis was conducted to establish percentages, means and standard deviation. Further, inferential data analysis techniques that include correlation (Pearson Correlation Momentum) and regression statistics (multiple regression analysis) was used to draw inferences on the relationship between kaizen implementation and operations performance of manufacturing firms in Kenya. The study concluded that quality circles aim to give individual members the opportunity to contribute to problem-solving and have an emphasis on teamwork and collaboration. Teamwork is one of the most important tools when it comes to organizational efficiency as it cultivates effective communication. Total productive maintenance system helps to frame maintenance as a business advantage. Implementing total productive maintenance system enables manufacturers to decrease planned and unplanned downtime from breakdowns, equipment and maintenance cost, defects, and risk of damage or accidents. Discipline ensures individuals maintain silence at workplace and work as a single unit with their team members to achieve organization goals and objectives. The study recommended that the firms should recruit volunteers from different departments as volunteers are more likely to take their role seriously and want to see the group succeed. The management of the firm should build diverse and inclusive teams for effective decision making. The management should aim at reducing worry and stress to allow employees to stay on track with personal and professional goals and prevent them from getting behind or submitting work after the deadline has passed.