DETERMINANTS OF INTEGRATION OF LEAN PROCUREMENT METHODOLOGIES IN AVIATION INDUSTRY IN KENYA: A CASE OF KENYA AIRWAYS LIMITED
Abstract
The general objective of the study was to establish the determinants of integration of lean procurement methodologies in the aviation industry in Kenya. The study findings revealed that: volume purchase had a positive impact on lean integration, the organization had adopted recent information technologies in purchasing of goods/services and maintenance of supplier relationships however inadequate lean information dissemination was carried, the management strategies considered lean practices however employee and supplier involvement was minimal and substantial cost was further incurred in lean procurement methodologies integration. The study further revealed lean integration in procurement was moderate. The study recommended that: employees to be involved in lean policy formulation, proper dissemination of lean procurement information to staff and suppliers, proper monitoring and evaluation of lean integration as well as cost-benefit analysis of lean integration. The study recommended that there was need for setting up purchase volumes which is based on usage, urgency and perishability of the item. The purchase volumes guidelines and the level of integration of lean procurement methodologies need to be well articulated. The purchasing in volumes lowers costs, contributes to continuous innovation and improvement and gives the organization competitive advantage. The study recommended that there is need to have information tools in ensuring integration of lean procurement methodologies. The organization needs to adopt recent technologies in information management such as ERP systems, E-procurement and electronic fleet spares manuals and maintenance manuals. The study recommended that there is need to enhance management strategies in support of the lean procurement methodologies integration. The top management need to emphasize on waste elimination and process standardization audits before purchasing of any goods, the management should emphasize on screening of suppliers and management appreciated the role played by supply chain. There was need to develop lean policies which could lead to incidental cost such as training costs, loss of investment opportunities, replacing of fleets and purchase of lean products compared to conventional in order to enhance lean procurement methodologies integration in the organization.
Key Words: Volume of Purchases, Information Tools, Management Strategies, Lean Procurement
Full Text:
PDFReferences
Abbot, Karl, &Vitasek. (2006). Understanding the lean supply chain: beginning the journey, 2005. Report on Lean Practices in the supply chain.
Ansari, A., & Modarress, B. (1988). JIT purchasing as a quality & productivity centre.Journal of Production Research, 26(1), 19-26.
Ansoff, H. I., & McDonnel, E. (1990). Implanting Strategic Management, Prentice Hall, Europe, 2nd edition, 1990.
Arnold, J.R., & Chapman, S. (2004). Introduction to materials management (5th ed.). Pearson. Axelsson, B., Rozemeijer, F., &Wynstra, F. (2005). Developing sourcing capabilities: creating strategic change in purchasing and supply chain management. West Sussex: John Wiley & Sons.
Bhasin, S., & Burcher, P. (2006). Lean viewed as a philosophy, Journal of Manufacturing Technology Management.
Bonavia, T. & Marin, J.A. (2006). An empirical study of lean production in the ceramic tile industry in Spain, International Journal of Operations & Production Management, 26 (5), 505-631
Brian, R.R. (2006). Purchasing Best Practices. Ten Keys To Effective Purchasing. UK CPA publishing
Carter, C.R., & Dresner, M. (2001). Purchasing role in environmental management: Cross-functional development of grounded theory. Journal of Supply Chain Management, 37(3), 12-26
Chuah, P., Wong, W.P., Ramayah, T., & Jantan, M. (2010). Organizational context, supplier management practices and supplier performance. Journal of Enterprise Information Management. Vol. 23 (6), 724-758.
DeSanctis, G., & Poole, M. S. (1994). Capturing the Complexity in Advanced Technology Use: Adaptive Structuration Theory. Organization Science, 5(2), 121-147.
Fernandez, E., Jonquiere, B., & Ortiz, M. (2006). Managers' profile in environmental strategy: a review of the literature. Corporate Social Responsibility and Environmental Management, 13(5), 261-274.
Handfield, B., Monczka, M., Giunipero, C., & Patterson, L. (2009).Sourcing and supply chain management (4th Edition.) Canada, UK: South-western publishers.
Harland, C.M., Caldwell, N.D., Powell, P. & Zheng, J. (2007), Barriers to supply chain information integration: journal of operation Management.25, (6) 34-54
Hines, P., Francis, & Found, P. (2006). Towards lean product lifecycle management; a framework for new product development, Journal of Manufacturing Technology Management, 17 (7) 866-87
Hines, P., & Taylor, D. (2000).Going lean. Cardiff: Lean Enterprise Research Centre, Cardiff Business School.
Horacio, S., & Paul, L. F. (2002). A model for evaluating the degree of leanness of manufacturing firms, Integrated Manufacturing Systems, 13 (2) 104 – 109.
Jungman, K. (2007). Corporate Responsibility in Supply Chain Management – Case Environmentally Responsible Procurement
Karlsson, C., & Ahlstrom, P. (1997). A lean and global smaller firm? International Journal of Operations & Production Management, 17(10) 940-52.
Kenya Airways. (2015). Annual Reports and Financial statements 2013 https://www.kenya-airways.com/uploadedFiles/KQ_2013_Annual_Report_Final.pdf
Kippenberger, T., (1997). Apply lean thinking to a value stream to create a lean enterprise, the Antidote, 2 (5) 11 – 14.
Kotter, J.R. (2007). Leading change-Why transformation efforts fail, Harvard Business review, vol. 85, no. 1, pp. 96.greatest manufacturer, McGraw-Hill, New York.
Langley, J., Coyle, J., Gibson, B., Novack, R., &Bardi, E. (2008).Managing supply chains (8th ed.). Cengage learning.
Lean Enterprise Institute. (2009). What is lean. Retrieved January 21, 2011, from http://www.lean.org/whatslean
Lee, Q. (2007). Implementing lean manufacturing: imitation to innovation. Consulting engineers strategy.
Leire, C. (2006). The application of green purchasing tools in the corporate sector.
Environmental Engineering and Management Journal 5(5): 1159-1178.
Lewis, M. (2000).Lean production and sustainable competitive advantage. Internation-al journal of operations & production management, 20(6), 959-976.
Liker, J., & Choi, T. (2006).Building deep supplier relationships.Harvard business re-view on supply chain management.
Liker, J.K. (2004). The Toyota way: 14 management principles from the world's Lysons, K., & Farrington B. (2006). Purchasing & supply chain management (7th ed.). London, UK: Pearson Educational Limited.
Manrodt, Karl, B., Vitasek, Kate & Thompson, R. H. (2008). Lean practices in the supply chain. Retrieved October 10, 2011, from Jones Lang Laselle report: http://podcastfiles.am.joneslanglasalle.com/u/docs.
Mark, Wilson & Ram. (2009). Enabling lean procurement: a consolidation model for small- and medium-sized enterprises, Journal of Manufacturing Technology Management,. 20 (6),. 817 – 833.
Mason, A. (2007). The benefits of kaizen and kaizen events.Quality progress, 47-48.
Mertins, K. & Jochem, R. (2001). "Integrated enterprise modelling: a method for the management of change", Production Planning & Control, 12, (2)
Obino, M., Kanyagia P., & Wagoki, J. (2012). Market Positioning and Organizational
Performance in the Airlines Industry in Kenya: Journal of Arts and Commerce, 123-130
Pius, A., EsamShehab, Rajkumar, R., & Geoff, N. (2006), "Critical success factors for lean implementation within SMEs", Journal of Manufacturing Technology Management ,17( 4) 460-471.
Polito, T., & Watson, K. (2006). Just-in-time under fire: the five major constraints upon JIT practices, Journal of American Academy of Business, (9), 8-13.
Porter, M. (1986).Competitive advantage. Creating and sustaining superior performance. New York: Free press.
Safaricom. (2012) Drive operational Excellence: Safaricom’s Annual report
http://www.safaricom.co.ke/images/Downloads/Annual_Reports/Annual_Report_2012_Final.pdf
Shah, R., & Ward, P.T. 2003, "Lean manufacturing: context, practice bundles, and performance", Journal of Operations Management, 21,( 2,) 129-149.
Shook, J. (2009). Applying Leaner thinking across the enterprise, Lean transformation summit Atlanta [Homepage of Lean Enterprise Institute], [Online]. Available: www.lean.org [March 4th & 5th 2009,
Sohal, & Egglestone, A. (1994), “Lean production: experience among Australian Technology Management, 17 (1, 2), 56-72.
Van Weele, A. (2002). Purchasing and supply chain management (3rd ed.). Thomson learning.
Virolainen, V. (1998).A survey of procurement strategy development in industrial companies.International journal of production economics, 56-57, 677-688.
Waters-Fuller, N. (1995). Just-in-time purchasing and supply: a review of the literature. International journal of operations & production management, 15(9), 220-236.
Wisner, D. & Stanley L. (2008). Process management: creating value along the supply chain. Ohio, USA: South western.
Womack, J., Jones, D., & Roos. (2007). The machine that changed the world” New York: Free press.
Womack, J.P., Jones, D.T., Roos, D. (1990).” The machine that changed the world” New York: Macmillan Publishing Company
Womack, James, P. & Jones, D. T. (2003). Lean thinking: Banish waste and create wealth in your corporation. London, UK: Free Press
Young, J.A., & Varble, D.L. (1997). ``Purchasing performance as seen by its internal customers: A study in service organisation'', International Journal of Purchasing & Materials Management, Summer, pp. 36-41.
DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.756
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.