INFLUENCE OF MATERIAL HANDLING PRACTICES ON PERFORMANCE OF LARGE SCALE MANUFACTURING FIRMS IN NAIROBI COUNTY, KENYA

DOMINIC KORES KISIOYA, DR. MAKORI MORONGE (Ph.D)

Abstract


The purpose of the current study was to examine the influence of Material handling practices on performance of manufacturing firms in Nairobi Kenya. The specific objectives was to determine the influence of material stock control on Performance of large-scale manufacturing firms in Nairobi, to examine the influence of material handling automation on Performance of large-scale manufacturing firms in Nairobi, to determine the influence of Material packaging on Performance of large-scale manufacturing firms in Nairobi and to examine the influence of material logistics planning on Performance of large-scale manufacturing firms in Nairobi. The study adopted descriptive survey design and the target population was 355 large -scale-manufacturing firms in Nairobi county Kenya. Stratified random sampling was adopted to select a sample size of 188 large-scale manufacturing firms in Nairobi County, Kenya. Primary data was collected using structured questionnaires inform of Likert scale. The general managers of each manufacturing firm selected were involved in data collection. Filled questionnaires were reviewed for completeness and then coded and entered in SPSS. Data analysis was involved both descriptive and inferential statistics. The analysed data was presented inform of tables together with associated explanations.” A good response rate of 71.3% was realized. It was established that most of the material handling practices indicators have positive impact on performance of the firm. The study further adopted a regression analysis to determine the relationship between the variables at 5% confidence level of significance. The study findings showed that the four variables had a significant influence on performance of the firms. The study recommended that a similar research should be conducted in a different field

Key Words: Material Stock Control, Automation, Material Packaging, Logistics Planning

 CITATION Kisioya, D. K., & Moronge, M. (2019). Influence of material handling practices on performance of large scale manufacturing firms in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 6 (4), 745 – 760


Full Text:

PDF

References


Acharyaa, T. K. (2011). Material Handling and Process Improvement Using Lean Manufacturing Principles. International Journal of Industrial Engineering, 18(7).

Adejare, A. T. (2014). The analysis of the impact of accounting records keeping on the performance of the small scale enterprises. International Journal of Academic Research in Business and Social Sciences, 4(1), 1.

AgriFin (2013). Trade Finance: Warehouse and Inventory Management in Africa. Retrieved June, 2018, from AgriFin: http://agrifinfacility.org/trade-finance-warehouse-and inventory-management-africa

Ahmed, F., Daas, R., Asaad, M. M. & Zien, R, (2015). The Influence of Inventory Management Practices Towards Inventory Management Performance in Malaysian Public Hospitals. International Academic Research Journal of Business and Technology 1 (2), 142-148.

Andre Langevin, Riopel Diana (2005) Logistics Systems: Design and Optimization, Springer, New York.

Asaolu, T. O., Agorzie, C. J., & Unam, J. M. (2012). materials management: an effective tool for optimizing profitability in the Nigerian food and beverage manufacturing industry. Journal of Emerging Trends in Economics and Management Sciences, 3(1), 25.

Braglia, M., & Bevilacqua, M. (2013). Fuzzy modelling and analytical hierarchy processing as a means of quantifying risk levels associated with failure modes in production systems. Production Planning & Control, 10 (4), 340-358

Brason Steve, et al (2015), Strategic Operations Management, Second Edition, Butterworth, Heinemann, UK

Christian Resources Industry’s Supply Chain Management Committee. (2005). Product Coding Best Practices: A guide to product coding for the Christian-resources industry. New York: Christian Resources Industry’s Supply Chain Management Committee.

Coyle J.J., Bardi E.J., Langley C.J. Jr. (2003) The Management of Business Logistic: A Supply Chain Perspective, (7th Ed.) Cincinnati, Ohio: South-Western/Thomson Learning, Cop. 2003.

CSCOInsight (2011). Five Strategies for Improving Inventory Management Across Complex Supply Chain Networks. CSCOInsight.

Evaluation: A Comprehensive Review, European Journal of Operational Research, 203, 539–549

Federation Highway Administration (1995). Recording and Coding Guide for the Structure Inventory and Appraisal of the Nation's Bridges. USA: US. Department of Transportation-Federation Highway Administration.

Financial Accounting Foundation (2011). Accounting Srtandards Codification. Norwalk: Financial Accounting Standards Board of the Financial Accounting Foundation.

Gu Jinxiang, Goetschalckx Marc, McGinnisLeon F. (2010) Research on Warehouse Design and Performance

Hadley, G. (1960). A Family of Inventory Models. Management Science, 7 (1), 351-371.

Institute of Management Accountants (1999). Theory of Constraints; Management System Fundamentals. Montvale: Institute of Management Accountants.

Jihong, J. J. (1997). Yield comparison of push and pull control methods on production systems with unreliable machines. International Journal of Production Economics, 50 (1), 1-12.

Kang, Y. (2004). Information Inaccuracy in Inventory Systems: Stock Loss and Stockout. Laboratory for Manufacturing, 1 (1)1-29.

Kathurima, R. I., Ombul, K., & Iravo, M. A. (2016). Effects of materials handling systems on performance of cement manufacturing firms in Machakos County. International Academic Journal of Procurement and Supply Chain Management, 2(1), 21-36.

Kiisler, K. (2014). Inventory management – basic concepts. L-Consult OÜ.

Kyusya, J. M. (2015). Effect of logistics outsourcing on the operational performance of shipping industry in Kenya. University of Nairobi.

Lakmal AGDP, Wickramarachchi WADN (2011) Enhancing the Effectiveness and Efficiency of Warehouse

Lee, Q. (2006). Strategic Guide to Cycle Counting & Inventory Accuracy. Kansas City: Strategos, Inc.

Lwiki, T., Ojera, O., Mugenda, N., & Wachira, V. (2013). The Impact of Inventory Management Practices on Financial Performance of Sugar Manufacturing Firms in Kenya. International Journal of Business, Humanities and Technology. 3, (5), 76-85

Munyao, M. M., & Omulo, C. O. (2015). Role of Inventory Management Practices on Performance of Production Department’ A Case of Manufacturing Firms in Kenya. International Journal of Economics, Commerce and Management. 3 (5), 1625-1656

Oballah, D., Waiganjo, E., & Wachiuri, W. E. (2015). Effect of inventory management practices on Organizational performance in Public health institutions in Kenya: A case study of Kenyatta national hospital. International journal of education and research, 3(3), 703-714.

Odhiambo, R. A. (2015). Raw Materials Delivery Systems And Operations Performance Of Agrochemical Firms In Kenya.

Ogbadu, E. E. (2009). Profitability through effective management of materials. Journal of economics and international finance, 1(4), 099-105.

Ondiek, G. O. (2005). Assessment of materials management in the Kenyan manufacturing firms. Exploratory survey of manufacturing firms based in Nairobi.

Opeyemi, A. (2013). Design of a Computerized Inventory Management System for Supermarkets. International Journal of Science and Research, 2 (9), 340-344.

Operations in FMCG Sector in Sri Lanka, 17th ERU Research Symposium, Faculty Of Engineering, University of Moratuwa, Sri Lanka.

Patlins, P. (2016). Efficient transportation in cities and perishable goods secondary packaging. In proceedings of the international scientific conference. Latvia University of Agriculture.

Piasecki, D. (2015). Cycle Counting and Physical Inventories. Kenosha: Inventory Operations Consulting LLC.

Preston, C. C., & Colman, A. M. (2000). Optimal number of response categories in rating scales:reliability, validity, discriminating power, and respondent preferences. 104 ((2), 1 15).

Rand, K. (2000). Critical chain: the theory of constraints applied to project management. International Journal of Project Management, 173-177.

REM Associates of Princeton. (1999). Inventory Cycle Counting. Nassau: REM Associates of Princeton.

Rossetti, M. D. (2000). Inventory Cycle Counting-A Review. Fayetteville: University of Arkansas.

Samuel, I. S., & Ondiek, O. (2014). Inventory management automation and the performance of supermarkets in western Kenya. Master’s Project). University of Nairobi.

Schrady, D. A. (2006). Operational definitions of inventory record accuracy. Naval Research Logistics Quarterly, 17 (1), 133–142.

Schreibfeder, J. (2014). The First Steps to Achieving Effective Inventory Control. Microsoft.

Singh, D. K. (2013). JIT: A Strategic Tool of Inventory Management. International Journal of Engineering Research and Applications, 3 (2), 133-136.

Sople V. V. (2016) Logistics Management, Dorling Kindersley (India) Pvt. Limited, New Delhi.

Spillane, J. P., Oyedele, L. O., Von Meding, J., Konanahalli, A., Jaiyeoba, B. E., & Tijani, I. K. (2011). Challenges of UK/Irish contractors regarding material management and logistics in confined site construction. International Journal of Construction Supply Chain Management, 1(1), 25-42.

Steinhoff, C. J. (2002). Best Practices in Achieving Consistent, Accurate Physical Counts of Inventory and Related Property. USA: United States General Accounting Office.

Strategos, Inc. (2014). Cycle Counting & Inventory Record Accuracy. Kansas City: Strategos, Inc.

Supply Chain Metric. (2016). Inventory Record Accuracy. London: Supply Chain Metric.

Teunter, T. L. (2002). Inventory Strategies For Systems With Fast Remanufacturing. Erasmus Research Instirute of Management.

Tompkins, B. (2012). Cycle Counting Increase Inventory Accuracy & Eliminate Wall-to-Wall Physical Inventory. Japan: The Supply Chain Consortium.

Unam, J. M. (2012). Materials Management for Business Success. International journal of economics and management sciences, 1(7), 50-56.

Vijay R. (2004), Technology Adoption in Developing Countries, Oxford University Press

Wanjara, K. (2015). Influence of Internal Control System on the Financial Performance of Kenya Power. Nairobi: KCA University.

Wild, T. (2011). Improving Inventory Record Accuracy. UK: Taylor & Francis.

Woeppel, M. (2000). Manufacturer's Guide to Implementing the Theory of Constraints. Congo: CRC Press.

Wathe Mwangangi, P. (2016). Influence of Logistics Management on Performance of Manufacturing Firms in Kenya (Doctoral dissertation, Jomo Kenyatta University of Agriculture and Technology).

WBCSD (2002), Toward a Sustainable Cement Industry. Climate Change, WBCSD, Geneva, http://ww.wbcsd.org.

Zipkin, P. H. (2000). Foundations of Inventory Management. New York: McGraw. Hill.




DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1423

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

PAST ISSUES:
20242023202220212020201920182017201620152014
Vol 11, No 2 [2024]Vol 10, No 4 [2023]Vol 9, No 4 [2022]Vol 8, No 4 [2021]Vol 7, No 4 [2020]Vol 6, No 4 [2019]Vol 5, No 4 [2018]Vol 4, No 4 [2017]Vol 3, No 4 [2016]Vol 2, No 2 [2015]Vol 1, No 2 [2014]
 Vol 11, No 1 [2024] Vol 10, No 3 [2023] Vol 9, No 3 [2022]Vol 8, No 3 [2021]Vol 7, No 3 [2020]Vol 6, No 3 [2019]Vol 5, No 3 [2019]Vol 4, No 3 [2017]Vol 3, No 3 [2016]Vol 2, No 1 [2015]Vol 1, No 1 [2014]
  Vol 10, No 2 [2023] Vol 9, No 2 [2022]Vol 8, No 2 [2021]Vol 7, No 2 [2020]Vol 6, No 2 [2019]Vol 5, No 2 [2018]Vol 4, No 2 [2017]Vol 3, No 2 [2016]  
  Vol 10, No 1 [2023] Vol 9, No 1 [2022]  Vol 8, No 1 [2021]Vol 7, No 1 [2020]Vol 6, No 1 [2019]Vol 5, No 1 [2018]Vol 4, No 1 [2017]Vol 3, No 1 [2016]   


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.