Effect of information technology integration on lean production: a case of Nestle Kenya
Date
2020
Authors
Mbula, Susan
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Lean production in the business improves productivity and competence by that business stability and profitability can be achieved per the recent trends in the business management and technology. Lean production cannot achieve the organizational goals alone. It need some support such as strategic planning, leadership and techno logy. Successful lean implementation can be done by using the information technology in enterprise, by integrating the lean and IT, misalignment can be eliminated which results in exact product output with least waste. By integrating lean and IT. An enterprise maintains their financial data, client orders and purchasing. The broad research objective was to investigate the effect of information technology integration on production in NestleĀ· Kenya. Specific objectives included; determining the effect of I IT integration on lean external IT integration on lean production in NestleĀ· Kenya, and also determining the role of knowledge management on the two relationships. An ex post facto and causal research design was adopted because it established the cause and effect relationship. The target population were all the employees of Nestle Kenya, numbering 70. The study employed primary data which was collected by use of a close ended questionnaire. It was a case study because entailed analyzing one firm, Nestle' Kenya. It was a cross-sectional study since data was collected across several units in a uniform timeframe. Data was analyzed through SPSS and interpretation through quantitative methods as per objectives and questions of the research. The study utilized descriptive statistics to gauge the existence of IT integration and utilization of lean management in Nestle ' Kenya. The researcher employed inferential statistics. Which included correlation analysis, simple linear regression, and hierarchical multiple linear regression to analyze data collected during the study. The study established that there is a significant association and relationship between both internal and external IT integration and lean production. Finally, the study established that knowledge management does not play a significant moderating role on the two relationships. The study established that internal IT integration had a positive significant association with lean production implementation and a significant positive effect on lean production. The study makes recommendations to the policy makers in the ministry of trade and industrialization, KAM, KNCCJ. Other bodies, practitioners in the industrial sector, and consultants to implement both internal and external IT integration in order to boost LP implementation. Thus, the stakeholders should engage IT in human resource management, customer credit procedures. Product development and research risk management systems and ERP systems. Additionally they should engage IT in customer relationship management and marketing processes. In addition, they should divide lead time in a supply chain into electronic ordering in limitation lead-time and physical material movement lead-time share demand and inventory data with suppliers/distributors to shorten the order processing to select most appropriate supplier. The study makes further recommendations that there should also be focus on knowledge management when utilizing IT integration to augment lean production.
Description
A Research dissertation submitted in partial fulfillment of the requirements for the Degree of Master of Business Administration (MBA) at Strathmore University