Influence of Lead Time System on Performance of Manufacturing Firms in Kenya

Abstract

This study sought to determine the influence of lead time system on performance of manufacturing firms in Kenya. Increasing competitive pressures are forcing companies to increase their rates of innovation to shorten each product’s duration in the market, thereby compressing each product’s life cycle. This study employed a descriptive survey research design to accomplish its goals since it has enough provision for the protection of bias and maximized reliability. The target population comprised of managers in manufacturing firms that are members of the Kenya Association of Manufacturers (KAM). KAM therefore provided the sampling frame for this study. As at 2017, KAM had a membership of 903 manufacturing firms. A sample of 90 respondents was drawn from this population. Primary data was collected using a semi-structured questionnaire which was self-administered. Data obtained was processed and analyzed using descriptive and inferential statistics. The results of the data analysis were presented in charts and tables. The findings revealed that lead time system accounted for 7.6% of change in performance of manufacturing firms in Kenya. The results showed that organisational policy had no intervening effect on performance and lead time system. Lead time system significantly influences performance of manufacturing firms in Kenya. This study recommends that manufacturing firms should ensure that they are proactive in activities that reduce lead time. Keywords: Lead time system, Manufacturing firm, Performance, Kenya.