Influence of Material Resource Planning on Operations Management among Manufacturing Firms in Nairobi, Kenya

Abstract

Superior process operations management performance is achieved by an effective technology adopted by the organization. Manufacturing firms in Kenya have ignored the potential savings from Material Resource planning thus treating inventory as not necessary an asset requiring effective operations management performance. The practices adopted have a significant impact on returns, profitability and volume of sales. Manufacturing firms that efficiently apply these practices have an excellent performance. This paper examined the effect of Material Resource Planning on operations management of manufacturing firms in Kenya, by analyzing the extent to which lean control system, lead time reduction, quality management system and product specialization are being applied in these firms. A descriptive survey design was used. The study used structured self-administered questionnaire to collect data. The target population of the study was 455 manufacturing firms in Nairobi County. The study findings showed that the four variables had a significant effect on operations management. The study recommends that since lean control systems have a positive significant effect on operations management the manufacturing firms in Kenya should invest more in lean control systems like adoption of just in time strategy, proper communication systems with suppliers, lean inventory, materials requirements planning systems and Enterprise resource planning. The study also recommends that manufacturing firms should consider adopting  lead time reduction practices for instance automation tools, integrated material resource planning tools, efficient information technology tools, flexible manufacturing systems as well as implementing high level of innovation.

Keywords: Lean control systems, Lead time, Quality management systems, Product specialization