EFFECT OF LEAN MANUFACTURING PRACTICES ON SUPPLY CHAIN PERFORMANCE IN FOOD AND BEVERAGE MANUFACTURING FIRMS IN NIGERIA
Abstract
Purpose of Study: The study examined the effect lean manufacturing practices and supply chain performance in food and beverage manufacturing firms in Ibadan, Oyo state.
Methodology: To achieve the objectives, three food and beverage manufacturing firms were randomly selected from the twelve food and beverage manufacturing firms quoted in Nigeria Stock Exchange (NSE). Simple random sampling technique was used to draw up the sample size of 155 managers from production, purchasing, quality control, warehouse/ store and physical distribution departments of food and beverage manufacturing firms. Structured questionnaire subjected to reliability test was used to collect the needed information from the respondents. The information elicited from respondents was analysed with descriptive statistics and multiple regression analysis.
Result: The study revealed that there is positive and significant relationship between lean manufacturing practices and supply chain performance. It revealed that pull system, six sigma, 5s, kaizen and supplier relationship are positively related to supply chain performance. Based on the findings,
Recommendation: The study recommends that manufacturing firms should adopt lean thinking approaches and practices to reduce inherent variation with suppliers, processing time, and demand from customers in order to improve on the firm’s supply chain performance. Managers should ensure their workers understand, appreciate and embrace lean concept to achieve substantial reductions in production cost to strengthen competitiveness. Manufacturing firms should involve suppliers ‘decision making which is one of the best practices of lean manufacturing management.
Keywords: Lean manufacturing, Supply chain performance, Food and beverage manufacturing firms.
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