Abstract:
Manufacturing firms exist in a dynamic environment that is unpredictable thus the need to effectively and efficiently carry out their operations which will lead to maintaining consistency in ensuring value creation through the supply chain. Value management aims at delivering products on time to their customers with appropriate performance and cost. The study sought to analyze the influence of value management approaches on on-time delivery of products in Kenya. It reviewed cost reduction, new product development, pricing and staff competence. The study adopted descriptive research design using qualitative and quantitative approaches using the survey method. The target population of this study was 84 managers working in procurement department, production and operations management, marketing and human resource department. These managers were from manufacturing firms in Nakuru. Census sampling design was employed. Primary data was collected by use of questionnaire on drop and pick later basis. Data collected was analyzed by means of Statistical Package for the Social Sciences (SPSS), and presented through percentages and frequencies. The information was displayed by use of bar charts and frequency tables. To help establish the relationship between the variables, a correlation analysis was undertaken. Out of the questionnaires issued, 71 were returned fully filled achieving a response rate of 84.52%. Regression results revealed that there was an existing direct relationship between cost reduction and on-time delivery of products (P=0.012, α = 0.05). A P-value of 0.026 against a significance level of 0.05 showed that new product development influenced on-time delivery of products. Model coefficients gave P=0.042 against α = 0.05 for pricing. The study made recommendations that: manufacturing organizations should use systems and operations methods that help in cost reduction; manufacturing firms should do product development for the products they manufacture; manufacturing firms should adopt pricing strategies that help in delivery of products, and; manufacturing firms should have competent employees and have measures put in place to see their development.
