LEAN SUPPLY CHAIN PRACTICES AND SUPLY CHAIN PERFORMANCE OF MOTOR VEHICLE ASSEMBLING COMPANIES IN NAIROBI CITY COUNTY, KENYA
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Abstract
Lean is a management approach that involves the identification and elimination of wastes through the continuous improvement of a product to ensure customer satisfaction is achieved. The goal of the lean approach is to create more value for the customers at a less cost. The general objective was to examine the effect of lean supply chain practices and supply chain performance of motor vehicle assembling companies in Nairobi County, Kenya. The specific objectives were to; determine effect of lean procurement, and waste management on supply chain performance of motor vehicle assembling companies in Nairobi County, Kenya. The study was guided by resource-based view theory and lean theory. The researcher employed descriptive research design. The target population of this study was 8 motor vehicle assemblers in Nairobi City County. The study adopted stratified sampling to sample 180 staff. The sample for piloting was 10% of the sample hence 18 staff. This study used both construct validity and content validity. The Cronbach Alpha coefficient was used to measure questionnaires’ reliability. Construct validity results show that lean procurement had an AVE value of 0.552,waste reduction AVE of 0.560, and supply chain performance an AVE of 0.541. Reliability results show that lean procurement 0.857, and waste reduction0.818. The findings show that lean procurement (coefficient = 0.232, p=0.003), and waste reduction (coefficient = 0.216, p=0.006) significantly enhance supply chain performance. The study concludes that adopting these lean practices is essential for improving efficiency and effectiveness in the supply chain. It recommends strengthening procurement processes, and advancing waste reduction strategies to achieve better performance.
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