THE ROLE OF LEAN MANUFACTURING IN IMPROVING PRODUCTIVITY AND QUALITY IN NIGERIAN BUSINESSES (A CASE STUDY OF KOSSO FARMS)

CHAPTER ONE

INTRODUCTION

1.1 Background to The Study

Today's business environment is very volatile and therefore the lifespan of products and services offered in the market is greatly reduced due to increasing competition from competitors. Given these modern realities, it is critical for organizational managers to adopt effective mitigation practices and strategies to maintain fair levels of performance that ultimately impact the bottom line of their operations. Production processes that include flexibility, reduced operating costs and minimized waste of human and non-human resources invariably determine to a large extent the effectiveness of a given organization (Onwughalu et al., 2017).

With continuous technological advancement across the world, globalization has been institutionalized through the emphasis on knowledge and use of telecommunications, satellite and Internet facilities and services. Technological commerce has compressed the world into what a Canadian scholar, Marshal Mchihan, called the “global village” (Udeze, 2012). The recommendation of free trade has made trade so popular that in recent times many economies have become largely dependent on trade. People consume products produced in their own and other nations in large quantities every day. Countries are now largely dependent on each other for goods and services.

As international trade and transactions became more popular, more and more business organizations developed, increasing global competitiveness, forcing companies to look for measures to improve performance while maintaining competitiveness (Udeze et al., 2014). The concept of lean manufacturing is gaining increasing global importance in both theory and practical practice in various sectors such as the automotive, manufacturing, construction and service industries.

Lean manufacturing, a method for maximizing value while minimizing waste, has become a key strategy for increasing productivity and quality in companies worldwide. In Nigeria, where economic development is critical to improving living standards and promoting industrial growth, adopting lean manufacturing principles can significantly impact business performance. The role of lean manufacturing in Nigerian companies is diverse and includes streamlining processes, reducing inefficiencies and improving product quality.

This introduction explores the transformative impact of lean practices on the Nigerian industry, emphasizing their systematic approach to problem-solving and continuous improvement. Central to lean manufacturing principles is the elimination of waste in all forms—be it time, materials, or labor. Lean manufacturing pioneer Ohno (1988) highlights that the methodology's objective extends beyond cost reduction to include value addition through optimized processes.

With the use of lean principles, Nigerian enterprises may efficiently handle the issues of high production costs and variable quality. Studies by Igham et al. (2020) shows that the application of lean principles for Nigerian manufacturing companies results in significant improvements in operational efficiency and cost reduction. The positive effect of lean manufacturing on productivity is one of its main advantages. Increasing productivity in the Nigerian manufacturing sector can lead to improved market positioning and more competitive prices. Ojo (2021) states that techniques such as Just-In-Time (JIT) and Total Productive Maintenance (TPM) are critical to increasing productivity by reducing downtime and optimizing resource utilization.

Furthermore, lean methodologies foster a culture of ongoing enhancement, which supports long-term increases in production. A significant benefit of lean production is its emphasis on quality improvement. By incorporating quality control into every phase of the production process, lean approaches help Nigerian companies deliver superior products with fewer defects. Companies that implement lean principles report lower defect rates and higher customer satisfaction, as Adewale and Olowu (2022) show, highlighting the transformative potential of these practices in raising standards in the Nigerian manufacturing sector.

Lean tools such as root cause analysis and the 5S system contribute to these improvements by systematically addressing and resolving quality issues. However, for Nigerian enterprises to embrace lean manufacturing, specific regional constraints, including a lack of infrastructure and a skills shortage, must be addressed, and Adegbite and Salami (2023) assert that while lean manufacturing holds promise, its effective application in Nigeria depends on adapting these methodologies to overcome regional limitations and scarce resources. By resolving these issues and tailoring lean practices to the Nigerian environment, businesses can further boost productivity and quality.

1.2 Statement of The Problem

In recent years, Nigerian businesses have faced significant challenges related to productivity and quality, which are crucial for their competitive edge in both local and international markets. Lean manufacturing, a production practice aimed at minimizing waste and maximizing value, has been identified as a potential solution to these issues. Despite its proven success in various global contexts, the adoption of lean manufacturing principles in Nigeria remains limited and inconsistent. This limitation is exacerbated by infrastructural deficits, workforce skill gaps, and resistance to change within organizations. As such, there is a pressing need to explore how lean manufacturing can be effectively implemented to enhance productivity and quality in Nigerian businesses.

Several studies have highlighted the potential benefits of lean manufacturing for improving operational efficiency and product quality. For instance, a study by Adewale and Ibitoye (2022) found that Nigerian manufacturing firms implementing lean practices experienced noticeable improvements in both production speed and defect reduction.

However, the research also pointed out that challenges such as inadequate training and infrastructural constraints hinder the widespread application of these practices (Adewale & Ibitoye, 2022). Similarly, a report by Oladejo and Adedeji (2023) emphasizes that while lean manufacturing offers substantial advantages, Nigerian companies often struggle with the initial costs and the need for significant cultural shifts to fully realize these benefits (Oladejo & Adedeji, 2023).Top of Form

1.3 Objectives of The Study

The main objective of the study is to examine the role of lean manufacturing in improving productivity and quality in Nigerian businesses. Specific objectives of the study are:

1. To assess the Current Implementation of Lean Manufacturing in Nigerian Businesses
2. To analyze the Impact of Lean Manufacturing on Productivity and Quality
3. To identify Best Practices and Recommendations for Lean Manufacturing in Nigeria

1.4 Research Questions

To guide the study and achieve the objectives of the study, the following research questions were formulated:

1. What is the prevalence of lean manufacturing practices among Nigerian businesses, particularly in manufacturing and service sectors?
2. How does the adoption of lean manufacturing practices influence productivity levels in Nigerian businesses, as measured by metrics such as output per labor hour and overall equipment effectiveness?
3. What are the best practices and strategies for successful lean manufacturing implementation in Nigerian businesses, considering the unique cultural, economic, and regulatory contexts?

1.5 Research Hypothesis

The following research hypothesis was developed and tested for the study:

Ho: Lean manufacturing practices do not significantly improve productivity and quality in Nigerian businesses.

1.6 Significance of The Study

The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:

Firstly, the paper will benefit major stakeholders and policy makers in the Operations Management sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.

Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analyzed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organizations used as a case study.

Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.

1.7 Scope of The Study

The study is delimited to Kosso Farms. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.

1.8 Limitations of The Study

The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.

1.9 Organization of The Study

The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.

Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.

Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.

Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.

Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.

1.10 Definition of Terms

1.  Lean Manufacturing

 A production philosophy and methodology that focuses on minimizing waste and maximizing value by streamlining processes, reducing costs, and improving efficiency. It involves techniques such as continuous improvement (Kaizen), value stream mapping, and just-in-time production.

2.  Waste

In the context of lean manufacturing, waste refers to any activity or process that does not add value to the product or service from the customer's perspective. Common types of waste include overproduction, waiting time, transportation, excess inventory, over-processing, defects, and unused talent.

3.  Value Stream Mapping

 A visual tool used in lean manufacturing to analyze and design the flow of materials and information required to bring a product or service from concept to customer. It helps identify inefficiencies and areas for improvement in the production process.

4.  Kaizen

A Japanese term meaning "continuous improvement." In lean manufacturing, Kaizen refers to the practice of continuously making small, incremental changes to processes to enhance productivity, quality, and overall efficiency.

5.  Just-in-Time (JIT)

 A production strategy that aims to improve efficiency and reduce inventory costs by producing only what is needed, when it is needed, and in the amount needed. JIT minimizes excess production and helps to better align production schedules with actual demand.

6.  5S System

 A workplace organization method consisting of five Japanese terms: Seiri (Sort), Seiton (Set in Order), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain). The 5S system aims to create an orderly, efficient, and clean work environment to enhance productivity and quality.

7.  Root Cause Analysis

 A problem-solving method used in lean manufacturing to identify the underlying causes of defects or issues in a process. By addressing the root causes rather than just the symptoms, businesses can implement effective solutions to prevent recurrence and improve overall quality.