The application of lean management practices in the supply chain unit of eThekwini municipality.

Abstract

With a rise in irregular and wasteful expenditure, supply chain processes have been the obvious target. Delays within supply chains account for misuse of resources and poor service delivery. The eThekwini Municipality although making clear strides in addressing socioeconomic inclusion and transparency, has shown little evidence to support its contribution to a more efficient supply chain process. This is due to operational deficiencies within the supply chain management process. The purpose of this study is therefore to investigate areas of ‘waste’ within Ethekwini’s supply chain acquisition stage where ‘Lean’ can be applied. This study investigates and quantifies these wasteful activities. A quantitative research methodology was used with the aid of a survey questionnaire that was targeted at project managers within the municipality using simple random sampling. The results were analysed using frequency tables from Statistical Package for Social Sciences (SPSS). Project managers, appointed by municipalities, are responsible for administration of the bid process through to award of contracts. Therefore, in order to understand the nature of operational delays, the Supply Chain Management (SCM) process is analysed using the perceptions of a sample size of 144 project managers that are key personnel in delivering these projects within time and budget. A survey was sent electronically to 160 candidates from the Human Settlements, Engineering and Transport cluster, of which 144 responded to gauge the project managers’ perceptions of SCM operations within the eThekwini Municipality. The questionnaire probed the project managers’ perceptions on their level of confidence in the understanding of the SCM process; communication from the SCM department; current bid documentation process; possible delays in the process and finally possible gaps in the process that are causing these delays. The results showed an obvious consensus of wastage incurred by procedural delays, resources and skills along the eThekwini Municipality’s supply chain management process. Recommendations to the arising issues included employing lean tools such as Value Stream Mapping; Kaizen and KPI’s along with a more efficient (electronic) system to circulate and approve documents interdepartmentally pre-bid meetings.