DETERMINANTS OF INTEGRATION OF LEAN PROCUREMENT METHODOLOGIES IN AVIATION INDUSTRY IN KENYA: A CASE OF KENYA AIRWAYS LIMITED

Abstract

The general objective of the study was to establish the determinants of integration of lean procurement methodologies in the aviation industry in Kenya. The study findings revealed that: volume purchase had a positive impact on lean integration, the organization had adopted recent information technologies in purchasing of goods/services and maintenance of supplier relationships however inadequate lean information dissemination was carried, the management strategies considered lean practices however employee and supplier involvement was minimal and substantial cost was further incurred in lean procurement methodologies integration. The study further revealed lean integration in procurement was moderate. The study recommended that: employees to be involved in lean policy formulation, proper dissemination of lean procurement information to staff and suppliers, proper monitoring and evaluation of lean integration as well as cost-benefit analysis of lean integration. The study recommended that there was need for setting up purchase volumes which is based on usage, urgency and perishability of the item. The purchase volumes guidelines and the level of integration of lean procurement methodologies need to be well articulated. The purchasing in volumes lowers costs, contributes to continuous innovation and improvement and gives the organization competitive advantage. The study recommended that there is need to have information tools in ensuring integration of lean procurement methodologies. The organization needs to adopt recent technologies in information management such as ERP systems, E- procurement and electronic fleet spares manuals and maintenance manuals. The study recommended that there is need to enhance management strategies in support of the lean procurement methodologies integration. The top management need to emphasize on waste elimination and process standardization audits before purchasing of any goods, the management should emphasize on screening of suppliers and management appreciated the role played by supply chain. There was need to develop lean policies which could lead to incidental cost such as training costs, loss of investment opportunities, replacing of fleets and purchase of lean products compared to conventional in order to enhance lean procurement methodologies integration in the organization.