EFFECT OF OPERATIONS MANAGEMENT PRACTICES ON THE PERFORMANCE OF KENYA POWER AND LIGHTING COMPANY LIMITED

Abstract

The ineffective implementation of operations management practices at Kenya Power and Lighting Company Limited hinders the efficiency, reliability, and service quality of the company. They pose significant problems that need to be addressed for the improvement of KPLC's overall performance. This study aimed to determine the effect of operations management practices on the performance of Kenya Power and Lighting Company Limited. The specific objectives of the study were to establish the effect of quality management practices, procurement management practices, information management practices, and operational resources management practices on performance of Kenya Power. The findings of this study are significant for Kenya Power as it provides insights into how operations management methods can affect the performance of the Kenya Power. The four theories which guided this study included Quality Improvement Theory, Transaction Cost Economics theory, Knowledge-Based View Theory, and ResourceBased View Theory. The study utilized a correlation research design, which sought to explore relationships between variables. The target population consisted of 98 employees in the managerial positions from various departments at the Kenya Power Headquarters in Nairobi. The study employed a census method thus including all members of the target population in the data collection process. Data was collected using a self-administered questionnaire, which includes closed-ended questions. A pilot study was conducted at GDC, where a 10% sample, consisting of nine workers from different departments, participated. The collected data was analyzed using SPSS Version 25, employing regression analysis and correlation analysis. The findings were presented through tables. The research employed regression and correlation analyses conducted with SPSS Version 25 to explore the relationships between quality management, procurement management, information management, and operational resources management practices, and KPLC's performance. The findings reveal significant positive relationships between these operational practices and KPLC's performance. It was concluded that, these practices significantly affect the company's performance, underscoring the importance of prioritizing and investing in them. The study recommends ongoing efforts to enhance quality management, refine procurement strategies, optimize information management, and ensure effective resource allocation. These findings provide valuable insights for decision-makers aiming to improve Kenya Power Company Limited's performance. Future studies could explore additional factors affecting performance to enhance organizational success.