OPERATIONS MANAGEMENT AND PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING FIRMS IN KENYA

Abstract

Despite the importance of the food manufacturing industry in Kenya, it has been experiencing a lot of turbulence in the recent past including a drop in the GDP, an increasing imbalance of trade, and the exiting of large multinationals. The main focus of this study was to assess the effect of operations management on the performance of food and beverage manufacturing firms in Kenya. The research design that was appropriate for this study was a descriptive cross-sectional design. 246 food and beverage manufacturing firms formed the source from which the respondents will be sourced. The population frame was thus the procurement managers of the 246 food and beverages firms. These firms are registered under the Kenya Association of Manufacturers. The study used a Stratified random sampling technique. The study further used simple random sampling within the different strata of 152 food and beverage manufacturing firms. The heads of departments concerned with procurement formed the unit of observation. The questionnaire was used to collect primary data. Quantitative and qualitative data were generated from the closed ended and open-ended questions, respectively. Descriptive statistics such as frequency distribution, mean (measure of dispersion), standard deviation, and percentages were used. Inferential data analysis was conducted by use of univariate regression analysis, Pearson correlation coefficient, and multiple regression analysis. The inferential statistic is used to make judgments about the probability that an observation is dependable or one that happened by chance in the study. The study results were presented through the use of tables and figures. The study found that operations management is statistically significant in explaining performance of food manufacturing firms in Kenya. The influence was found to be positive, indicating that an increase in operations management would lead to an increase in performance of food manufacturing firms. Therefore, the study concluded that operations management has a positive and significant relationship with performance of food manufacturing firms in Kenya. The study therefore recommends that manufacturing firms should reduce excess inventory by implementing just-in-time (JIT) inventory systems. This minimizes carrying costs, reduces the risk of waste due to product expiration, and optimizes working capital. In addition, the firms should develop standardized work procedures and ensure that all employees follow these procedures rigorously. This will lead to consistent product quality and efficient production processes