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CHALLENGES IN IMPLEMENTING QUALITY LEAN MANAGEMENT TECHNIQUES IN TANZANIA PROJECTS DAR ES SALAAM
RICKY JOSSE EMMANUEL
A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE MASTERS DEGREE IN PROJECT MANAGEMENT OF THE OPEN UNIVERSITY OF TANZANIA
2015
CERTIFICATION
The undersigned certifies that he has read and hereby recommends for acceptance by the Open University of Tanzania a Dissertation titled: “Challenges in Implementing Quality Lean Management Techniques in Tanzania Projects Dar es Salaam”,in partial fulfillment of the requirements for the Masters Degree of Project Management of the Open University of Tanzania.
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Dr. Salvio Macha
Supervisor
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Date
COPYRIGHT
No part of this Dissertation may be produced, stored in any retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the author or the Open University of Tanzania in that behalf.
DECLARATION
I, Ricky Josse Emmanueldo hereby declare that this Dissertation is my own original work and that it has not been presented and will not be presented to any other University for a similar or any other degree award.
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Signature
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Date
DEDICATION
This dissertation is dedicated to my lovely family
ACKNOWLEDGEMENT
I extended gratitude to those who tremendously contributed to this work. Special thanks go to My Supervisor Dr. Salvio Macha of the Open University for providing me with constructive comments and useful guidance.
Special thanks are also due to people and all institutions for their cooperation in availing important information which stand to be the essence inputs to this dissertation. Appreciation is extended to ILALA Municipal, Coca-Cola, Pepsi and Tanesco, for their kind assistance in getting information for this work.
Appreciation is extended to the Open University where the course was conducted, to all instructors involved and colleagues for their constructive comments during lectures and advice while writing this work. Sincere gratitude is extended to my family, work colleagues and my friends for their encouragement including their concern for the entire period of preparing this dissertation.
ABSTRACT
The point aim of this study was to assess the challenges in implementing quality lean management in Tanzania projects. With regard to the study objectives this study was conducted with the intention of comparing the challenges facing private sector and public sector in implementing lean management in their projects, where by a researcher used Ilala municipal and TANESCO as a public sector while Coca cola kwanza limited and SBC Limited as private sector in Dar es Salaam region. This study was conducted in Dar es Salaam. Data were collected using interview, observations, questionnaire and documentary review. Both purposive sampling and Simple Random Sampling procedures were used. A sample of 90 respondents was used. Data were analyzed using descriptive and content analysis. The study finds that factors such as strategies used to engage staffs in lean management, respondents awareness on the concept and application of lean management as well as challenges which hinders implementation of lean management and strategies used to engage staffs in the application of lean management were considered since they prove to be validity for the improvement in application of lean management in Tanzania projects.However the study rejected that time commitment from all those involved as well as additional funding to implement lean management and shortage of staffs as the main challenges, which led to the failure of organization in implementing lean management in their projects.
TABLE OF CONTENTS
CERTIFICATION
COPYRIGHT
DECLARATION
DEDICATION
ACKNOWLEDGEMENT
ABSTRACT
LIST OF TABLES
FIGURE
APPENDIX
LIST OF ABBREVIATIONS
CHAPTER ONE......
INTRODUCTION AND BACKGROUND OF THE STUDY......
1.1 Introduction
1.2 Background of the Study
1.3 Statement of the Problem
1.4 Objectives of the Study
1.4.1 General Objective
1.4.2 Specific Objectives
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
2.2 Conceptual Review
2.2.1 The Concept of Lean Management......
2.1.2 The Concept of Lean Manufacturing......
2.2 Empirical Review
2.3 Theoretical review
2.3.1 Kaizen Rapid Improvement Process......
2.3.2 Total Productive Maintenance (TPM)......
2.4 Conceptual Framework
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
3.2 Study Area
3.3 Research Paradigm and Approaches......
3.3.1 Research Paradigms
3.4 Types and Sources of Data
3.4.1 Primary Data
3.4.2 Secondary Data
3.5 Target Population and Sampling Design......
3.5.1 Study Population
3.5.2 Sampling Design
3.5.3 Sampling Frame
3.5.4 Sampling Techniques
3.5.5 Sample Size
3.6 Data Collection Methods
3.6.1 Pilot Testing
3.6.2 Data Analysis Methods
3.7 Tools for Data Analysis
3.8 Data Validity, Reliability and Ethical Consideration......
3.8.1 Validity
3.8.2 Reliability
3.9 Ethical Consideration
3.10 Compensation
CHAPTER FOUR
STUDY FINDINGS, ANALYSIS AND DISCUSSIONS
4.1 Introduction
2.2Reliability and Validity
4.2.1 Data Reliability
4.2.2Data Validity
4.2.3Characteristics of the Respondents......
4.2.4Distribution of Respondents
4.2.3Age of the Respondents
4.2.4Gender of Respondents
4.2.5Respondents’ Gender
4.2.6Education Level of the Respondents......
4.3 Findings as Per Study Objectives
4.3.1Objective One
4.3.2Strategies in Implementation of Lean Projects
4.3.3Department Applying Mostly Lean Management
4.3.4Objective Two
4.3.5Level of Awareness Among Employees
4.3.6Improvement in Resource Productivity
4.3.7External Support in Utilizing the Implementation of Lean Management
4.3.8Objective Three
4.3.9Shortage of Staffs
4.3.10 Time Commitments
34.3.11 Lack of Resources
4.3.12Low Investments
4.3.13Significant of Lean Management
4.4Summary
CHAPTER FIVE
DISCUSION OF THE FINDINGS
5.1 Introductions
5.2 Discussion of the Findings
5.2.1Significant of Lean Management
CHAPTER SIX
STUDY CONCLUSIONS AND RECOMMENDATIONS
6.1 Introduction
6.2 Conclusion of the Findings
6.3 Recommendations of the Findings
6.4 Area for Further Research
REFERENCES
APPENDICES
LIST OF TABLES
Table 3.1: The Response Rate of Respondents......
Table 4.1: Reliability Test......
Table 4.2: Distributions of Respondents on Organizations they Work
Table 4.3: Distributions of Respondents by their Age......
Table 4.4: Organizations ‘Gender Cross Tabulation......
Table 4.5: Distributions of Respondents on their Gender on Cross Tabulations....
Table 4.6: Distributions of Respondents on their Education on Cross
Tabulations......
Table 4.7: Distributions of Respondents on Strategies used......
Table 4.8: Distributions of Respondents on Department Involving......
Table 4.9: Distributions of Respondents on their Gender on Awareness
of Lean Management......
Table 4.10: Distributions of Respondents on Improving Resource Productivity....
Table 4.11: Distributions of Respondents on External Supporters......
Table 4.12: Distributions of Respondents on their Gender on Shortage of Staffs....
Table 4.13: Distributions of Respondents on Time Commitments on Cross Tabulations
Table 4.14: Distributions of Respondents on Lack of Resource on Cross
Tabulations......
Table 4.15: Distributions of Respondents on Low Investments on Cross
Tabulations......
Table 4.16: Distributions of Respondents on Significant of Lean on Cross Tabulations
FIGURE
Figure 2.1: Conceptual Framework of the Application of Lean Management
in both Public and Private Sector......
APPENDIX
Appendix I: Study Questionnaires to the Respondents......
LIST OF ABBREVIATIONS
CCBRT Comprehensive Community Based Rehabilitation of Tanzania
EPA Environmental Protection Agency (USA)
JICA Japan International Corporation Agency
MoHSW Ministry of Health and Social Welfare
SPSS Statistical Packages for Social Science
SERVQUAL Service Quality
TPM Total Production Maintenance
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CHAPTER ONE
INTRODUCTION AND BACKGROUND OF THE STUDY
1.1 Introduction
This research aims at examining the challenges in implementing Quality Lean Management Techniques in Tanzania. The researcher’s main objective of this study is attempting to identify the application of lean management in various public and private sector projects and its management system with the goal of determining if the philosophy of lean management is known and applied inbothareas as well as the challenges faced in implementing it. The research will further propose the measures, which can be taken by projects managers and management so as to ensure the effective application of lean management in carrying out various public and private sector activities.
1.2 Background of the Study
The business environment has changed rapidly over recent decades, and continues to change. Globalization has brought new technology and made the business environment open to greater competition. These changes have impacted greatly on the business environment, especially on manufacturing industry, which has been identified as the most active and important contributor to the economy. The success of companies/businesses and managers depends on their ability to react, operate and adapt to change (Kotter 2007).
Some authors argue that the capability to adjust to the new conditions fast is a competitive advantage. Time cannot be wasted if one wants to be successful. (Spur et al.1996) as cited in (Mertins, Jochem 2001) Management of change requires being a day-to-day plan for a leader. The successful structuring of change processes requires powerful methods and tools.
Being competitive requires the need for determining new ways of reducing costs and increasing the quality of the company’s products/services. Lean thinking was considered to be one potential approach for improving organizational performance. Authors suggest that this complex highly integrated system is the reason for Japan’s manufacturing effectiveness (Womack et al.1990, Liker, 1998). Lean management is a powerful set of tools and techniques that many companies choose to implement and sustain a way of increasing their efficiency of production and the overall customer value while at the same time eliminating waste.
The concept of lean management can be traced as far back in history as the industrial revolution when machines, having shorter through – put times, replaced humans (hubs, 2004). However the concept advanced its impetus during the 1920s when one of its concept known as the assembly line was created by Henry Ford, during that period of time Ford Motor Company (FMC), created a model of assembly line production that simplified the process of car manufacturing from individual production to mass production which resulted into elimination of wastes such as time, resources and space wasted in assembling cars in individual production (Hubbs, 2004).
In the report written by (Hubbs 2004; Bicheno & Holweg 2009; Fiano, 2013) revealed that the concept of lean management was developed and started by Toyota Company in Japan which was founded at the time when American automobile companies such as Ford Motor Company dominated the world automobile business. Toyota asserted that the customary thinking that Sales Price = Cost + Profitwas incorrect, instead, they believe that Profit = Sales Price – Cost. Thus Toyota began a manufacturing system that focused on the management of costs. It is due to this advanced innovation that Toyota is referred as the birthplace of lean management.
Dennis Hubbs in his book titled “Applied Business Lean Transformation” stated that applied lean methods are series of scientific, objectives techniques that cause work tasks in a process to be performed with a minimum of non- value adding activities resulting in greatly reduced wait time, queue, move time, administrative time and other activities used to satisfy customer requirements.
Although lean is commonly used in manufacturing and supply chain management, but it is a philosophy that can be applied in an entire company as long as the overall goal remains the same which is to achieve customer value while eliminating waste.
In Tanzania the concept of lean management is a new concept which started to be implemented in both public and private service management. This was evidenced at the Ministry of health and Social Welfare (MoHSW) under the Health Service Inspectorate Unit in 2009 in collaboration with JICA, whereby they adopted the philosophy with the intention of creating a continuous improvement based on waste elimination culture that involves workers and operators at all levels of the health facility. They introduced the approaches into clinical service and now more than 60 hospitals all over the country are improving their activities successfully.
In addition to MoHSW lean management was evidenced in Tanesco where as they are now executing 5S-KAIZEN for lean management activities with big success based on the five key words of Sort, Set, Shine, Standardize and Sustain in its all 24 Regional Offices countrywide. 5S and KAIZEN are bottom-up approaches for continuous quality improvement and management as well as improvement of safety in working places. The goal of practicing 5S-KAIZEN is not only to make the workplace more efficient and effective by eliminating all kinds of waste, unnecessary movements, cost and faults but also to contribute to the improvement of the service quality and delivery to TANESCO's customers(Jica, 2013).
Another area in Tanzania where lean management was evidenced is in Comprehensive Community Based Rehabilitation of Tanzania (CCBRT) whereby in November 2013 Dr. Grogan Michael spent five weeks transferring his knowledge on lean management system by introducing both visual management tools and the Kaizen approach where as he applied those methods with the goal of ascertaining, understanding and solving problems at the correct level (CCBRT, 2013).
In Tanzania private sector, lean management is practiced with the same intention as within the government sector that is to reduce production resource requirements by minimizing inventory, equipment, storage, service space, materials as well as increasing service provision velocity and flexibility. As it was argued by Sungau et al, (2013) that organization used several techniques to reinvent their business process and one among them is through application of using lean management approach so as to improve production. However most of lean experts do argue that companies cannot become lean tools alone rather they may apply thinking and principles so as to increase efficiency in manufacturing and services theyrender/provide (Parris 2013).
1.3 Statement of the Problem
For many years developed countries have applied the philosophy of lean in their managerial activities as well as manufacturing service; this notion is supported with the evidence from (Udo, 2012).The U.S Environmental protection Agency (EPA) sponsored a lean manufacturing study in 2000 with the intention of exploring the relationship between lean production and environmental performance by focusing on Boeing Company as a case study. Findings of their studies revealed that lean implementation at the Boeing Company resulted in significant resource productivity improvements with important environmentally improvement.
Also Prattana et al. (2012) conducted a study in India titled healthcare service quality: A case example of a hospital with a lean implementation in order to measure service quality of the hospital implementing lean management. Researchers assess patient’s expectation and satisfaction pertaining to hospital service quality. In doing so they collect data from 450 patients and analyzed them by using SERVQUAL model. The results of their study revealed that overall service quality score is positive.
However there is no significant different between overall patients perception and expectation. Also the study finds out that the service quality level of the hospital implementing lean is moderate, the hospital is able to deliver service as expected.Given the origins of Lean thinking in the automotive sector, the application of Lean without appropriate adaptation for service organization’s has been widely questioned. Hines et al., (2004)) highlight a number of the key criticisms associated with gaps in the Lean philosophy.
The criticisms include: concerns about the increased vulnerability of Lean systems to errors or resource shortages; In spite of these key success and shortcomings seen in European context, the application and use of lean management techniques in Tanzanian projects both government and non-government projects still facing a lot of challenges such as failure to add value in an organization, failure to develop strategies to minimize wastage of organizational resources, employees failure on being innovative due to lack of training in some of the government parastatals as well as private enterprises concerning the implementation of lean management resulting to lack of knowledge and technical know-how on lean application among employees.
Therefore this study aims at providing an insight through assessing and comparing the challenges in implementing quality lean management techniques in Tanzania projects by focusing on Ilala Municipal and Tanzania Electrical Supply Company (as a public sector) and Coca cola Kwanza Ltd and SBC Tanzania Limited (as a private sector) as a case study.
1.4 Objectives of the Study
In this study, research objectives have been divided into two groups, which are general objectives and specific objectives.
1.4.1 General Objective
To assess the challenges in implementing quality lean management techniques in Tanzania projects.
1.4.2 Specific Objectives
The specific objectives of this study will be:
(i)To assess the application of lean management techniques in projects performance Tanzania projects.
(ii)To assess the awareness of lean management techniques among employees inprojects performance in public sector compared to private sector.
(iii)To assess the challenges and effectiveness of projects that are conducted through application of lean management techniques inprojects performance in both public and private sector.
1.5Research Questions
1.5.1General Question
What are the challenges in implementing quality lean management techniques in Tanzania Projects?
1.5.2 Specific Questions
(i)What are the techniques used in the application of lean management in Tanzanian projects?
(ii)What awareness of lean management techniques exists among employees in projects from public sector compared to private sector?
(iii)What are the challenges faced by projects that are conducted through effective implementation of lean management techniques in both private and public sector?
1.6Significance of the Study
This research will be significant to any organization in and outside of Tanzania as well as managerial and human resource consultants by adding them with relevance status of lean management.
1.7Limitation of the Study
This study will not pretend to be free of limitations. Though the findings and conclusion will not be affected, it is important to highlight some of the limitations: -
(i)Due to limitation of funds, the study will be conducted in Ilala municipal of Dar es Salaam and projects within Kinondoni district leaving the other municipal of Temeke.
(ii)As with most surveys, the study will only capture the circumstances prevailing at the time of the interviews.
(iii)Basing on the fact that there is no study conducted in Tanzania concerning challenges in implementing quality lean management in Tanzania projects. Therefore this study will lack some of literature and empirical review of Tanzania lean management hence to a greater extent it will rely on literature from outside Tanzania.
(iv)It is also possible that some of the respondents will not provide their true opinions during the interviews because they regard some of the questions as sensitive. However it is the researcher’s expectation that this group will be small and we assume that they will not affect the overall results and conclusion.