Analysis of Kaizen Systems on Performance of Tea Processing Firms in Kenya

Abstract

The purpose of the study was to ascertain the Analysis of Kaizen Systems on performance of Kenyan tea processing firms in Kenya. Performance of Tea Processing firms has been on an overtime decline of quality hence fetching low prices in the global market. The specific objectives that guided this reserch include to: determine influence of quality cycles, assess the influence of teamwork, influence of personal discipline and total productive maintenance systems on firm performance of tea processing companies in Kenya. The study is of significance to the administration of Tea processing firms, policy makers, scholars and the addition to the body of knowledge. The study also checked the moderating function of organizational dynamic capability on linkage between Kaizen Systems and performance of tea processing firms. The research was guided by Deming's quality improvement theory, dynamic capabilities theory and growth of the firm theory. Pragmatism research philosophy was employed in this research. Further, explanatory research design was deemed appropriate for the research. The study population under consideration was 66 operations managers of all the tea producing companies. A census of all the 66 operations managers was conducted. Utilizing structured questionnaires, both quantitative and qualitative data was gathered for analysis. Data analysis was undertaken utilizing SPSS Version 23.0. The multiple regression coefficient results indicated that quality cycles had greatest positive and significant relationship with performance of tea processing firms in Kenya where (β =.335) and p=.011). There was also a positive and significant relationship between personal discipline and performance of tea processing firms in Kenya where (β =.415 and p=.031). The regression coefficient of teamwork had positive and significant relationship with performance of tea processing firms in Kenya where (β =.511 and p=.001). Finally, the results indicate that there was a positive and significant relationship between total productive maintenance systems and performance of tea processing firms in Kenya where (β =.461 and p=.012). The study found that organizational dynamic capability moderates the relationship between Kaizen Systems and performance of tea processing firms. Based on the findings, the study concludes that quality cycles are critically important in the production of tea. The study also makes a conclusion that teamwork, personal discipline and total productive maintenance systems are significant component of Kaizen systems that influence tea production. The tea processing firms should work in coordination with quality standards bodies including Kenya Bureau of Standards, food Safety management systems among others to enhance production of quality tea. The study recommends that tea processing firms need to cultivate culture of team work among their workers by emphasizing virtues of unity and togetherness. The study recommends for the need to cultivate virtue of timeliness in task accomplishment among workers of tea processing firms. This can be conducted through workshops, close mentorship programs and support for employees’ growth and welfare programs. The study recommends for periodic diagnostic and maintenance of firm machines and equipment through well trained firm personnel. Thus, training of personnel on the maintenance of tea production equipment is essentially important in ensuring that costs arising from breakdowns are minimized. Organizational dynamic capability moderates the relationship between Kaizen Systems and performance of tea processing firms. The study recommends that tea processing firms should invest in research and development, training, networking capability and innovation since it affects performance positively.