CHAPTER ONE

GENERAL INTRODUCTION

Introduction

This chapter focuses on the background of this study, from global to specific, the scope and delimitation of the study is discussed, and then followed by the statement of the problem which brings out the main and specific problems necessitating this research, this is immediately followed by the research questions which are the main and specific questions. It is from these questions that the objectives and hypotheses are formulated. The chapter equally looks at the significance of the study, limitation of the study and ends with organisation of the study which is done chapter by chapter.

1.1 Background to the Study

The first chapter which is chapter one focuses on the implementation and effects of lean manufacturing on supply chain companies firstly in the world, America and other countries, furthermore, we look at lean Manufacturing in the African continent as well as the Sub-Sahara Africa, then we conclude on the effects of lean manufacturing on the Supply Chain performance of Brasserie Du Cameroun-Yaoundé (SCPBC).

A variety of authors have published on lean manufacturing. Lean simply means no excess, so lean production can be translated simply into minimal waste manufacturing (Remus, 2016). Lean is centred on determining what activities or processes add value by reducing other aspects such as lessening the production of a certain kind of product that gives less value and using the resources to produce more of another, while at the same time lessening waste (Holweg, 2004). Lean is all about reducing waste, not just material waste but labour and time waste generated by some processes (Womack and Jones, 2001). When these wastes have been removed from a system, only then can it be said that the system is truly lean and optimized. In short, lean production involves constant effort to eliminate waste (Rother and Shook, 1999). Lean manufacturing is not just about reducing waste and overhead, the principle of lean production is also about increasing speed, efficiency and improving quality on top of waste elimination (Taiichi Ohno, 1950). This requires work and the development of a lean culture within the work phase, which ultimately leads to added value both for the customer and the company.

The roots of Lean can be found in the Japanese Toyota Company. The origins of Toyota Production System (TPS) dates back to the beginning of the twentieth century (Ohno, 2008). The fathers of the system are Sakichi Toyoda, his sons: Kiichiro Toyoda and Eiji Toyoda as well as Taiichi Ohno, a manufacturing engineer (Ohno, 1989).  Sakichi Toyoda, who then worked in textile industry, invented a motor-driven loom with a specialized mechanism devised to stop in case of breaking off the thread (Shingo, 1989). Lean manufacturing, though first used in the car manufacturing industry, has today, widened in scope to cover all supply chains and is not limited to production (Michael, 2019; Purna, 2015). When the fathers of lean manufacturing brought up this idea of minimal waste in a supply chain, in 1910, Sakichi Toyoda visited the United States of America for the first time and realised that the new automotive era had just begun, this to him was the beginning of the implementation of the ideas of lean manufacturing (Ohno, 2008)

The term Lean Manufacturing (LM) was initially introduced by Krafcik in 1998 which was further made popular by Womack in the book “The machine that changed the world”, (Womack et al., 1990). Lean Manufacturing or lean according to Slone et al.,(2016), means “the New Supply Chain Agenda (NSCA)”, which is a manufacturing term used to describe a manufacturing, industrial or service operation which deals with little or no type of muda (waste), (Rother, 1999). Lean manufacturing centres around the idea that the customer purchasing a good or service is only willing to pay for the value added “steps” in making or delivering such a service (Dal Pont et al.,1991). Therefore, the non-value adding “steps” and its associated costs are barred by the manufacturing company, thus reducing margins for the manufacturer (Perez et al., 2010). Most lean manufacturing concepts are derived from the Toyota Production System (TPS), which aim at the continuous flow of materials through a process with minimal inventory or work in progress, through the different value adding work stations or stages (Maware and Adetunji, 2018).

So many companies in the world have implemented Lean Manufacturing (LM) as Kojima and Kaplinsky assessed the performance of auto companies in South Africa using Lean Production Index (LPI) (Chen, 2013). According to this assessment, the lean production index is composed of three elements which are quality, flexibility and continuous improvement. Upon completion of this assessment, the results indicated that buyers and the size of the firm had no effect on LPI (Jehoiakim et al., 2006).

Lean manufacturing philosophy has emerged as a powerful approach that has been used by companies in developing countries to improve their operations (Scerkenbach, 1986). Developing countries such as India, Kuwait, Malaysia, Turkey, Brasil, Thailand, and Indonesia have adopted the philosophy to reduce manufacturing costs so that their products remain highly competitive. In southern Africa, the effect of lean manufacturing on operational performance is still under research. Studies on the application of LM in these countries include South Africa, Zambia, Namibia, and Bostwana (Peck 1987). In Zimbabwe, cases of implementation of Lean Manufacturing tools and the impact on individual company performance have been reported. Such companies are found in margarine production, bakery, tile company, furniture company, plastic manufacturing, foundry, pharmaceutical company, service industry, battery manufacturing and clothing (Gimenez, 2010).This shows that research has been done on implementing Lean Manufacturing in Zimbabwe, but the reports have been incoherent, making it difficult to understand how the concept has made an impact on industry wide operational performance. Some studies focused on the synergistic results obtained from implementing Lean tools on operational performance. For instance, value stream mapping was used by Goriwondo et al., Muvunzi et al. and Dzanya and Mukada. However, Furlan et al., as well as Schroeder and Flynn (2010) state that greater operational efficiency can be obtained when the Lean bundles are implemented simultaneously due to the synergistic effect of various Lean tools.

A study in Africa conducted on lean manufacturing implementation in Zimbabwean industries (Maware and Olufemi, 2018), the essence of this study was to find out the impact or effect of lean manufacturing on operational performance, one of the results arrived at indicated that most supply chain companies in Zimbabwe do not effectively train their employees, this was a negative outcome.  In Bostwana, Mapfaira et al., (2014) studied the level of lean manufacturing adoption and its effects on performance, and proved a positive and negative result (Mutingi, 2014). Other researchers such as Eswaranoorthi et al., (1996) Khanchanapong et al., (1998), have shown that the adoption of lean manufacturing has given manufacturing companies a competitive edge through yielding positive results.

The heart of lean manufacturing is the act of “polishing up” a company and this can only be achieved thanks to changes in the company’s policy, particularly in the company’s assets and its management style (Maqbool and Rafiq, 2014). Additionally, lean management and manufacturing concentrates on professional training and shaping the staffs’ attitudes and as well maintaining positive relation (Lichtarski, 1997). Due to fierce competition which compels companies to cut costs for market survival, companies need to enhance quality, minimize waste, ensure customer satisfaction and increase productivity through reduction in resource wastage, Chauhan and Chauhan (2019). The adaptation of lean practices by companies improves the optimization of resources (Goshime et al., 2019), while digitalization, localized production and consumption characteristics (Prendeville et al., 2016) has the potential to establish local and circular economic patterns.

The notion of supply chain can be seen as the entire process of making and selling commercial goods, including every stage from the supply of materials and the manufacture of the goods right down to their distribution and sales (Malhotra and Robinson, 2005). Although Kushwaha and Barman (2010), Ana, Paulo & Maria (2014) and Marcio et al, (2016) amongst others, have designed models that have helped unravel the meaning of supply chain quality management, a lot more is yet to be done particularly in relation to customer satisfaction and the context of application for managerial decision making. As the opposition moves past a solitary firm into the supply chain (SC), firms started to understand that it is not sufficient, on the off chance that they just focus on improve performance all through inside practices inside their own firm. As indicated by Li et al., (2006), the turn of events and execution of Supply Chain practices can expand client esteem, pick up competitive advantages in the commercial centre, and also get great benefits. Numerous firms have begun perceiving that Supply Chain Practices are the fundamental factor to make a sustainable competitive edge for their items as well as services in an undeniably jam-packed commercial centre. Supply Chain Management or Lean, is an umbrella term that covers product development, sourcing, procurement, production, logistics, distribution and creating relationships more, when it comes to operations in the supply chain. Without it, companies run the risk of reducing its customers, and losing a competitive edge in respective industries. Supply Chain Management is not just about creating the most efficient process possible, it is also crucial to mitigate risks and ensure everything runs smoothly. This is because; so many elements make up the supply chain, from manufacturing sites and warehouses to transportation, inventory management and order fulfilments. Each step of this process carries countless risks and possibilities to derail an entire customer order. Minimizing delay, optimizing the time and day that goods are moved, the length of time that inventory is held for and the order dispatch process are all points that can have huge impacts on the operation. Without an optimized supply chain management process and close collaboration between the actors in place, the chain can fall apart from the very beginning.

In today’s world more and more organizations are realizing the importance of eliminating waste, improving quality and customer satisfaction in order to sustain a competitive business. (Womack, 1990). There is also a pressure to reduce manufacturing, operating and inventory costs and increase efficiencies not only in manufacturing but in different types of industries, such as banking, business and community services (Castro, 2010). The challenge today is adapting these concepts and technologies to this wide range of industries successfully. The key to success in implementing lean manufacturing principles in any organization is to foster a culture of continuous improvement within its company culture, quality focus, lean thinking, and customer satisfaction as the organization’s ultimate goal (Scholtes, 1998). This shift in culture, if not already present, must come from top management and be embraced by all layers of the organization.

Brasserie du Cameroun is a growing supply chain company that was created in 1948 as a brewery company with focus on the production, marketing and distribution of its products. The main production unit is in Douala- Cameroun. In the year 1966, the first beer bottling chain was set up in Yaoundé, this was immediately after the creation of SOCAVER in Douala, and this implies that most of the bottles and product as well as other manufacturing services were imported. SOCAVER is a company based in Douala that focuses on the production of bottles, plastic pallets, crates, as well as hollow glasses. This is when the application of lean started in the company (Charles, 2016). It is in line with this that the researcher has to investigate the effect of lean manufacturing on the supply chain performance of Brasserie du Cameroun-Yaoundé.