A Roadmap For Effective Implementation of Lean Production Tools in SMEs ( A case study of Small and Medium Tea Processing Industries In Southern Highlands Tanzania )

A ROADMAP FOR EFFECTIVE IMPLEMENTATION OF LEAN PRODUCTION TOOLS IN SMALL AND MEDIUEM ENTERPRISES (SMEs) A CASE STUDY OF TEA PROCESSING INDUSTRIES IN SOUTHERN HIGHLANDS 1

A ROADMAP FOR EFFECTIVE IMPLEMENTATION OF LEAN PRODUCTION TOOLS IN SMALL AND MEDIUEM ENTERPRISES (SMEs) A CASE STUDY OF TEA PROCESSING INDUSTRIES IN SOUTHERN HIGHLANDS By Aaron Sanga A Final Year Project Report Submitted in Partial/Fulfillment of the Requirements for Award of the Degree of Bachelor of Science in Industrial Engineering Management (BSc- IEM) of Mzumbe University. 2023 1

CERTIFICATION We, the undersigned, certify that we have read and hereby recommend for acceptance by the Mzumbe University, a Research project entitled Roadmap for Effective Implementation of Lean Production Tools in Small and Medium Enterprises (SMEs) in partial/fulfillment of the requirements for award of the degree of Bachelor of Science in Industrial Engineering Management of Mzumbe University. Signature ___________________________ Major Supervisor Signature ___________________________ Internal Examiner Accepted for the Board of Faculty of Science and Technology ____________________________________________ DEAN OF FACULT OF SCIENCE AND TECHNOLOGY i

DECLARATION AND COPYRIGHT I, Aaron Jackson Sanga declare that this Research project 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. Signature ___________________________ Date________________________________ © 2023 This final year project report is a copyright material protected under the Berne Convention, the Copyright Act 1999 and other international and national enactments, in that behalf, on intellectual property. It may not be reproduced by any means in full or in part, except for short extracts in fair dealings, for research or private study, critical scholarly review or discourse with an acknowledgement, without the written permission of Mzumbe University, on behalf of the author. ii

ACKNOWLEDGEMENT It’s through God’s gratuitous love that I have such an achievement; I feel that I owe a vote of gratitude to Him for every step I make in life. I do acknowledge the availability and a tireless assistance and guidance of my supervisor Madam Theodora. I would also like to extend my gratitude to DR Lyakurwa my Internal Examiner and Mr. Kevin Kashebo as my Oral examiner. Also I acknowledge the help received from other department teachers through lecturers for all my entire 3 years at Mzumbe University. I am deeply indebted to my family for their advice and encouragement throughout the process of mystudies and doing this project particularly My father Mr. Jackson Sanga for financing my project, my mum Imelda Jackson Sanga for her prayers, My Eldest Brother Repent Jackson Sanga, My Twin brother Moses Jackson Sanga and My beautiful little sister Glory for their support. Without Forgetting the enormous support that was given to me by the production managers from Kisigo Tea Factory, Mufindi Tea Company, Luponde Tea Company and Mwakaleli Tea Factory for them enabling me to get the data so that I can accomplish my Research project. Lastly, I also want to thank and appreciate the support of my fellow students who through their ideas and challenges contributed to this success. iii

DEDICATION I dedicate my Research Project to my Family particularly my Dad and mum, my twin brother and my eldest brother and my little sister Glory for their endless support. iv

ABSTRACT Globally, SMEs are essential to maintaining national economies. However, due to the highly competitive market in which they operate, these businesses are dealing with a lot of difficulties and issues. As a result, SMEs are making an effort to use novel strategies like lean production in order to improve their performance. However, it is generally known that only a small percentage of SMEs have been given the chance to reap from the competitive advantages brought about by lean production. Numerous researches have claimed that the following factors, in general, contribute to the failure of Lean production implementation in SMEs: the use of the incorrect tool, the use of one tool to handle all the problems, a lack of understanding, and poor decision-making. Although there are numerous models and frameworks in the literature, only a small number have been created with SMEs in mind and provide the right tools for them to properly adopt lean production. For this reason, this managerial report attempts to offer a methodical path that includes the best lean tools for SMEs. This roadmap was made by looking at a tea processing industries that are situated in Southern Highlands region. v

BNA LIST OF ABBREVIATIONS - Bottleneck Analysis CT – Contingency Theory JIT - Just in Time LM - Lean manufacturing MCA - Management Accounting and Control OEE - Overall Equipment Effectiveness PA - Production Assistant PM – Production Manager RBV - Resource Based Theory SD - Standard Deviation SME - Small and Medium Enterprises SW - Standardized Work TCT - Transaction Cost Theory TOC - Theory of Constraints TPM - Total Productive Maintenance VSM - Value Stream Mapping WIP - Work in Progress vi

TABLE OF CONTENTS CERTIFICATION ............................................................................................................i DECLARATION AND COPYRIGHT ......................................................................... ii ACKNOWLEDGEMENT............................................................................................. iii DEDICATION.................................................................................................................iv ABSTRACT ......................................................................................................................v LIST OF ABBREVIATIONS ........................................................................................vi LIST OF TABLES ...........................................................................................................x LIST OF FIGURES ........................................................................................................xi LIST OF APPENDICES .............................................................................................. xii CHAPTER ONE ..............................................................................................................1 INTRODUCTION............................................................................................................1 1.1 Background Information ..............................................................................................1 1.2 Research Problem.........................................................................................................4 1.3 Objectives of the study.................................................................................................5 1.3.1 General Objective......................................................................................................5 1.3.2 Specific Objectives....................................................................................................5 1.4 Research Questions ......................................................................................................5 1.5 Scope of the Research project ......................................................................................5 1.6 Significance of the study..............................................................................................6 1.7 Limitations and Delimitations of the study..................................................................6 1.7.1 Limitations of the study ............................................................................................6 1.7.2 Delimitations of the study .........................................................................................7 CHAPTER TWO .............................................................................................................8 LITERATURE REVIEW................................................................................................8 2.0 Introduction ..................................................................................................................8 2.1 Theories governing the study .......................................................................................8 vii

2.1.1 Resource-Based View (RBV) Theory.......................................................................8 2.1.2 Contingency Theory..................................................................................................9 2.1.3 Transaction Cost Theory.........................................................................................10 2.1.4 Diffusion of Innovation Theory ..............................................................................11 2.2 Theoretical Framework ..............................................................................................12 2.2.2 Small Medium Enterprises (SMEs) Performance ...................................................19 2.3 Empirical Study..........................................................................................................20 2.3.1 Presentation of Local studies that have addressed the issue under study ...............21 2.3.2 Presentation of Foreign studies that have addressed the issue under study ............21 2.4 Overall Research Gap ................................................................................................23 CHAPTER THREE .......................................................................................................24 MATERIAL AND METHODS.....................................................................................24 3.0 Description of the approach used in the Action Research .........................................24 3.1 Research Design.........................................................................................................24 3.2 Population ..................................................................................................................25 3.2.1 Sample Size.............................................................................................................26 3.3 Data Collection...........................................................................................................28 3.3.1 Primary Source........................................................................................................28 3.3.2 Secondary Source....................................................................................................29 3.3.2.1 Published reports and articles...............................................................................29 3.3.2.2 Online Databases..................................................................................................29 3.4 Data Analysis .............................................................................................................29 3.5 Ethical Considerations ...............................................................................................30 CHAPTER FOUR..........................................................................................................32 PRESENTATION OF RESULTS ................................................................................32 4.1 Introduction ................................................................................................................32 4.2 Questionnaires return .................................................................................................32 4.3 Position of the Respondents .......................................................................................32 viii

4.4 Level of education......................................................................................................35 4.5 Gender of Respondents ..............................................................................................37 4.6 Work Experience of Respondents..............................................................................39 4.7 Mostly common used Lean Production Tools used in Tea Industries in Southern Highlands..................................................................................................................41 4.8 Challenges which face Small and Medium Tea Processing Industries in Southern Highlands to Implement Lean Production Tools effectively....................................42 4.8.1 The impact of implementing Lean Production Tools in Small and Medium Tea Processing Industries...............................................................................................44 4.8.2 Relationship between Lean Production Tools and Performance of Small and Medium Tea Processing Firms in Southern Highland Region ..............................46 CHAPTER FIVE............................................................................................................50 DISCUSSION OF RESULTS .......................................................................................50 5.0 Introduction ................................................................................................................50 5.1 Comprehensive Discussion of the Results .................................................................50 5.2 Local studies whose Results are in-line with the study..............................................56 5.3 Foreign studies whose Results are in-line with the study ..........................................56 CHAPTER SIX ..............................................................................................................58 CONCLUSIONS & RECOMMENDATIONS ............................................................58 6.0 Introduction ................................................................................................................58 6.1 Summary of findings..................................................................................................58 6.2 Conclusion .................................................................................................................59 6.3 Recommendations ......................................................................................................59 6.4 Suggestions for further studies...................................................................................60 REFERENCES ............................................................................................................... 61 APPENDICES ................................................................................................................64 ix

LIST OF TABLES Table 1.1: Categories of Micro, Small, Medium and Large Enterprises by URT (2012)..2 Table 3.1 Depicted Below;...............................................................................................26 Table 4.1 shows the analyzed data in relation to the position of the respondents ...........32 Table 4.2 Represents the Level of Education of Respondents.........................................35 Table 4.3: illustrates the gender of the respondents .........................................................37 Table 4.4: The Work Experience of the Respondents; ....................................................39 Table 4.5: Mostly common used Lean Production Tools used in Tea Industries in Southern Highlands ......................................................................................41 Table 4.6: Challenges which face Small and Medium Tea Processing Industries in Southern Highlands to Implement Lean Production Tools effectively ........43 Table 4.7 Impact of Lean Production tools on Performance of Tea Processing..............45 Table 4.8: Variables Entered/Removeda ..........................................................................47 Table 4.10 ANOVAa ........................................................................................................48 Table 4.11 Coefficientsa...................................................................................................48 x

LIST OF FIGURES Figure 1.1: Google Map of Southern Highland .................................................................3 Figure 2.1: Relationship between Independent and dependent variables ........................12 Figure 3.1: Summary of the Research Methodology pursued .........................................31 Figure 4.1: Pie Chart Showing Position of the Respondents ...........................................33 Figure 4.2: Bar Chart Showing Position of the Respondents ..........................................34 Figure 4.3: Pie Chart Represents the Level of Education of Respondents ......................35 Figure 4.4: Bar Chart Represents the Level of Education of Respondents......................36 Figure 4.5 Pie Chart representing the gender of respondents ..........................................37 Figure 4.6 Bar Chart representing the Gender of Respondents .......................................38 Figure 4.7: Pie Chart representing the Work Experience of the Respondents.................39 Figure 4.8: Bar Chart representing the Work Experience of the Respondents ................40 Figure 4.9: Bar Chart Showing Common Used Lean Tools ............................................42 Figure 4.10 Model Summary ...........................................................................................47 Figure 5.1: Proposed Roadmap for effective implementation of Lean Production Tools in SMEs .....................................................................................................54 xi

LIST OF APPENDICES APPENDIX 1: Research Questionnaire...........................................................................64 APPENDIX II : List of Factories Research has been Done in the Southern Highlands Regions...............................................................................................70 APPENDIX 111: Letter of Inquiry ..................................................................................71 xii

CHAPTER ONE INTRODUCTION 1.1 Background Information In simple terms, Lean production can be described as “doing more with less”. This was invented with an aim of improving competitiveness and market share of manufacturing firms (Womack, 1991). According to (Oscar,2002) processing firms are categorized as lean and non -lean based. This study indicated that lean oriented firms had better returns on expenditure, stock return and growth of sales compared to non- lean based. Also in these lean based firms, waste in terms of time and materials is identified and removed so as to maintain quality while reducing manufacturing costs (Bhamu). Lean production tools refers to a set of methodologies, techniques and practices aimed at eliminating waste and maximizing efficiency in the manufacturing processes (Association, 2020). Usage of Lean Production tools dates back in the Late 1980’s when the term Lean production was introduced by the Japanese car manufacturer Toyota in order to describe a production system. The successful implementation of Lean depends solely on the application of specific tools called Lean tools. According to (Womack, 1991); Lean production is a strategy or philosophy that promotes the use of tools such as Kanban, Value stream mapping and Automation to minimize waste and improve organization performance. In the concept of implementing lean production tools, it is very important to look at the category of enterprises because the competitive advantage isn’t equally distributed to all the enterprises as some category benefit more. Enterprises have been categorized into different categories basing on different criteria. According to URT (2012), enterprises are classified into four main groups based on the total number of employees, total investment and sales turnover. 1

Table 1.1: Categories of Micro, Small, Medium and Large Enterprises by URT (2012) CATEGORY EMPLOYEES CAPITAL INVESTMENT IN MACHINERY (TZS) Micro Enterprise 1-4 Up to 5million Small Enterprise 5-49 Above 5million to 200 million Medium Enterprise 50-99 Above 200 million to 800 million Large Enterprise 100+ Above 800 million Source; URT Small and medium-sized businesses, which play a significant role in the business world, face a number of difficulties, particularly those that have to do with reducing waste and enhancing business performance. As a result, numerous studies have been carried out to determine the various criteria to be employed to lower the cost of production at different phases of production. This is what has led to invention of Lean production. 1.1.1 Tea Production in Southern Highlands Region of Tanzania Tea (Camellia Saneness) was first planted in Tanganyika in the year 1902, when German settlers introduced the crop to Agricultural Research Station in Amani and Rungwe. Commercial production began in 1926 in Usambara and Njombe region. According to data (Authority, 1989) Tea production was at an estimate of 23 tons in 1934, and after world war 2 of 1945 when the British took over the tea plantations, production rose from 2723 hectares in 1945 to 7336 hectares in 1960, yielding 3722 tons of made tea. Since then up to now tea has been a major crop produced in Tanzania. According to World Bank, Tea contributes more than $30 million to Tanzania’s export earnings, making it the fifth largest export crop after cashews, coffee, cotton and Tobacco. More than three-quarters of Tanzania’s tea is exported. Also data from International Labor Organization (ILO), states that tea industry provides employment to 50,000 families and directly or indirectly affects as many as 2 million Tanzanians. Tea is grown in three major zones in Tanzania. These include the Southern Highlands, the plantations of East Usambara in Tanga region close to the coast and Northwest zone 2

around Southwestern areas of Lake Victoria. The country’s main tea growing area is in Southern highlands area which comprises of Mufindi, Njombe and Rungwe districts. This study bases on small and medium Tea industries which are located in Southern Highlands. This can be seen in the Map below; Figure 1.1: Google Map of Southern Highland Source; Google map 3

1.2 Research Problem Small to medium-sized companies (SMES) are a significant engine for national growth in Tanzania and many other countries in Africa.(Pingyu, 2014) stated that SMEs account for as much as 70% of the labor force in many developing countries. But the majority of these small and medium-sized Enterprises (SMEs) face multiple difficulties which make them unable to sustain their business over the long run. Among these difficulties include a lack of information technology, inadequate state-of-the-art equipment, poor revolutionary technology, and underdeveloped competitive marketing techniques. Using appropriate lean tools in production process is one such initiative that can help these SMEs manufacture value-added products with increased profitability and waste minimization regardless of the challenges they face. (Matt, 2013) discussed the reasons why organizations are trying to apply lean tools in their own benefits and the competitive advantage they get compared to those who aren’t applying them. According to (Liker, 1996), problems like high production costs which results due to unnecessary activities within the value chain comes as a result of not implementing appropriate lean manufacturing tools. Other researchers like (Sangwan, 2014) have concluded that very few number of small and medium enterprises (SMEs) have succeeded to implement properly Lean production and benefit from its outcome. (Rahman, 2010) Stated that the failure of Lean production implementation in SMEs is generally due to the use of wrong tool, the use of one tool to solve all the problems and lack of understanding on lean tools. Despite the fact that there are numerous models and frameworks in the literature, only a small number have been created based on SMEs' demands, which includes the right tools for them to properly execute lean production. This research project, aims to provide a systematic roadmap that contains the most suitable lean tools for SMEs. This roadmap is developed basing on data collected from small and medium scale tea processing industries in southern highlands of Tanzania (Iringa, Mbeya and Njombe 4

regions) but its applicability extends to all small to medium enterprise (SMEs) regardless the product it deals with. 1.3 Objectives of the study The following are the objectives of the study. 1.3.1 General Objective The general objective of the study is to Develop a roadmap for effective implementation of Lean production tools in Small and Medium Enterprises (SMEs) 1.3.2 Specific Objectives These include the following; i. To investigate Lean production tools that are used in SMEs. ii. To determine the appropriate elements required for the roadmap of SMEs iii. Develop a roadmap for effective implementation of Lean production tools in SMEs. 1.4 Research Questions i. What are the common lean production tools that are being used in these Small and Medium Enterprises? ii. What are the appropriate elements that are required for the roadmap so that it suits all SMEs regardless the product or service it offers? iii. What are other developed roadmaps lacking that is essential needed to ensure effective implementation of lean production tools by SMEs? 1.5 Scope of the Research project This research aims at developing a roadmap for effective implementation of lean production tools in Small Medium Enterprises (SMEs). The research is based on 5

Southern Highlands of Tanzania and uses data collected from Small and Medium manufacturing tea factories which are situated in Iringa, Njombe and Mbeya regions. The scope of the study based on lean tools used in these companies. 1.6 Significance of the study i. The findings of the study would provide knowledge for researchers and academicians who may be interested in studying implementation of Lean production tools and its performance in SMEs ii. To policy makers and regulatory bodies, the findings would form the basis of making informed decisions and strategies in the light of increasing global competitiveness. iii. To the operations management profession like industrial engineers and managers, the findings from the study would help them to identify opportunities derived from implementing Lean production tools that enhance acquisition of capabilities that could result in competitive advantage. iv. To suggest areas of further research for academia in the future. 1.7 Limitations and Delimitations of the study 1.7.1 Limitations of the study i). Confidentiality Concerns Since this research involved collecting information from more than one company; some companies showed doubt about sharing some of their information saying it was confidential. This can limit the amount of data that is available for analysis. ii). Time constraint The time to collect the data from the companies was very limited. The data was supposed to be collected before beginning of the semester where analysis and interpretation was supposed to be carried out. Some companies responded late to the questionnaires hence delaying the process. 6

iii). Financial Constraint The research was done in three regions respectively, Iringa, Mbeya and Njombe regions. Money was supposed to be set for the survey to those two regions in order to reach the companies. Some companies like Kisigo Tea Company and Mwakaleli Tea Company are situated in the interior remote areas and hence budget for transport was required. Other financial expenses incurred include costs for papers for questionnaires and food expenses. iv). Communication Problems To some companies like Luponde Tea Factory, due to its distance from Njombe town, an email was sent having the required questionnaires. But unfortunately the email sent at first didn’t reach them and thus there was no response until communication was made through telephone to get the right communication credentials v). Human Error As a researcher am also a human being, so there were times when errors occurred especially in data entry but they were noticed and corrected. 1.7.2 Delimitations of the study i). Geographical location One of the delimitation set was that the research should cover only tea processing factories that are in the Southern Highlands (Iringa, Njombe and Mbeya regions) and not anywhere else. This is because Southern Highlands of Tanzania is the major tea producing area according to the report by Ministry’s Department of Agriculture Economics and Marketing (DAEM) of last year. Also it was because it was nearby my resident and thus, this would ensure easy access of information and would reduce transportation costs to a large extent. 7

CHAPTER TWO LITERATURE REVIEW 2.0 Introduction This chapter deals with Definition of key terms, Theories governing the study, Theoretical framework, Presentation of local and foreign studies that have addressed the problem understudy and the Research gap that has been identified. 2.1 Theories governing the study This research study is governed by four major theories namely; a) Resource-Based View (RBV) Theory b) Contingency Theory c) Transaction Cost Theory d) Diffusion of Innovation Theory 2.1.1 Resource-Based View (RBV) Theory This theory suggests that the key to successful implementation of Lean production tools in SMEs is to leverage the unique resources and capabilities of an organization. SMEs may have limited resources compared to larger organizations, but they can still use lean production tools to improve efficiency and reduce wastes.(Barney, 1991) points out that the abilities that can help the SMEs use lean tools appropriately is to understand which unique resources are more important to their competitive advantage. RBV theory can be applied to the implementation of lean production tools in SMEs by focusing on the unique resources and capabilities of the organization. For example, an SME that has limited financial resources can still implement lean production tools by leveraging its human resources and organizational processes. By Involving employees in the implementation process and developing a culture of continuous improvement, the SME can improve its efficiency and reduce waste without significant investment. 8

RBV theory also suggests that SMEs can achieve a sustained competitive advantage through development of unique capabilities. Competitive advantage from RBV perspective is achieved by focusing on and exploiting of SME’s internal characteristics specifically its resource profile (Rumelt, 1991)By implementing lean production tools, SMEs can develop capabilities such as process optimization, continuous improvement and waste reduction which can improve their competitiveness and performance. 2.1.2 Contingency Theory This theory proposes that the success of lean production tools in SMEs depends on the fit between the organization strategy, structure and environment. SMEs that have a clear strategy, flexible structure and favorable business environment are more likely to successfully implement lean production tools. Contingency theory can be applied to the Implementation of Lean production tools in SMEs by considering the fit between organization’s strategy, structure and environment. For example, an SME that operates in a rapidly changing business environment may need to implement lean production tools in order to improve the agility and responsiveness. However, the specific tools and approaches used may depend on organization’s structure and strategy (Fiedler, 1964), . For instance, an SME with a flat organizational structure may be able to implement lean production tools more easily than one with hierarchical structure. According to (Lindblom, 1959), Contingency theory also suggests that the effectiveness of lean production tools in SMEs will depend on the specific context in which they are implemented. For example, the success of lean production tools may depend on factors such as organization’s culture, the skills and knowledge of employees and the level of support from senior management. Therefore, SMEs should carefully consider the fit between their strategy, structure and environment as well as the specific context in which they are implementing lean production tools. 9

2.1.3 Transaction Cost Theory This theory suggests that SMEs can benefit from lean production tools by reducing transaction costs associated with production process. By minimizing waste and improving efficiency, SMEs can reduce the costs associated with production and improve their profitability. Also they can minimize transaction costs by adopting governance mechanisms that reduce uncertainty and improve trust between parties. From a study by Nguyen (2021) found that transaction costs were a significant determinant of the choice between exporting and licensing as entry modes for SMEs. The authors argued that exporting was more suitable for SMEs with low transaction costs, while licensing was more appropriate for SMEs facing high transaction costs, as it allowed them to transfer the burden of transaction costs to their partners. Another study by Neil and Ambos (2013) examined the role of transaction costs in the internationalization of SMEs. The authors found that the high transaction costs associated with entering foreign markets were a major barrier for many SMEs, particularly those with limited resources and capabilities. As a result, SMEs often relied on intermediaries and other forms of cooperation to reduce transaction costs and access foreign markets Transaction cost theory can be applied to the implementation of Lean production tools in SMEs by considering the transaction costs associated with the production process. For example, the cost of transactions between different departments or stages of production can be reduced by implementing lean production tools such as Just- in-Time production which aims to minimize inventory and reduce the need for transactions between different parts of the production process. Similarly, the cost of transactions between the organization and its suppliers can be reduced by implementing lean production tools such as supplier relationship management (SRM), which aims to improve trust and collaboration between the organization and suppliers. 10

By reducing transaction costs, SMEs can improve the efficiency and profitability through the implementation of lean production tools. Furthermore, Transaction Cost Theory suggests that the choice of Lean production tools should be based on the specific transaction costs associated with the organization’s production process and supply chain. 2.1.4 Diffusion of Innovation Theory This theory proposes that the success of Lean production tools in SMEs depends on the rate of adoption and the diffusion of the innovation within the organization. SMEs that are able to effectively communicate the benefits of Lean production tools and involve employees in the implementation process are more likely to succeed. (Eisenhardt) Suggested that there is relative advantage, compatibility and complexity of innovation like cloud computing in SMEs. This research suggested that SMEs should take a strategic approach to innovation assessing the costs and benefits of technology in light of their specific circumstances. (Yusof, 2000) . Suggested that SMEs should adopt a proactive research to the adoption of innovation, developing clear strategy and investigating the necessary resources to fully utilize the benefits of technology. The diffusion of innovation theory can be applied to the implementation of Lean production tools in SMEs by understanding the factors that influence the adoption of new production practices. For example, the characteristics of the innovation, such as its complexity and compatibility with existing practices, can influence the rate of adoption by SMEs. Lean production tools that are easy to understand and integrate with existing practices may be more readily adopted than those that require significant changes in production process. Similarly, the characteristics of the adopters such as willingness to take risks and their attitude towards change can also influence the adoption of Lean production tools. SMEs may be more likely to adopt lean production tools if they have the culture of continuous improvement and are open to new ideas and practices. 11

The communication channels used to promote the adoption of lean production tools can also influence the rate of adoption. Effective communication channels that reach a wide audience and provide clear and compelling information about the benefits of lean production may be more effective than those that are less clear or targeted to a narrow audience. Finally, the social context in which the innovation is introduced can also influence the adoption of lean production tools. SMEs may be more likely to adopt lean production tools if they perceive that there is pressure from customers or competitors to do so or if there is a supportive regulatory environment. 2.2 Theoretical Framework The below figure shows the relationship between variables under study which are the Independent variables for this case are the lean production tools like Kaizen,5S, Kanban and the dependent variables which is the performance of SME’s. Figure 2.1: Relationship between Independent and dependent variables Independent Variables Dependent Variable LEAN PRODUCTION TOOLS SMALL MEDIUM ENTERPRISES (SMEs)  Kaizen PERFOMANCE  Value Stream Mapping  5S  Productivity  Automation  Quality 2.2.1LeaTnoptarloPdruocdtuicotnivteooMlsaintenance  Waste Elimination (TPM) i). KaizenStandard Work  Pull System / Kanban 12

i. Kaizen Kaizen is a lean production tool that emphasizes continuous improvement and waste reduction through small, incremental changes. It is a philosophy that originated in Japan and has been widely adopted in manufacturing and service industries worldwide. One way to understand Kaizen is to view it as a mindset that values the pursuit of perfection through small and continuous steps rather than seeking radical change through large scale initiatives. The goal of kaizen is to identify and eliminate sources of waste such as overproduction, defects, waiting, excess inventory, unnecessary motion and over processing. According to (Womack, 1991), Kaizen is a key component of the lean production system, which aims to create value for customers by eliminating waste and improving quality, speed and flexibility. Kaizen involves everyone in the organization from top management to frontline workers, and encourages them to constantly look for ways to improve their work process and eliminate waste. Kaizen aims at eliminating waste through improved standards activities (Parker, 2003) ii. Value-stream Mapping Value stream mapping (VSM) is a lean production tool that is used to visualize and analyze the flow of materials and information through a manufacturing or service process. It is a powerful tool for identifying sources of wastes and opportunities for improvement and it is widely used in lean production systems to create more efficient and effective processes. VSM involves the creation of visual representation of the entire value stream including all the steps and activities involved in producing a product or delivering a service. This map shows the flow of materials, information and activities as well as time required for each step in the process. By analyzing this map, stakeholders can identify bottlenecks, inefficiencies and opportunities for improvement and develop strategies for eliminating waste and improving overall performance. 13

According to (Rother, 1999) value stream mapping is a critical tool for lean production because it helps to identify the “hidden factories” in a process, the activities that are not visible on the surface, but that can consume time, resources and energy. By Understanding these hidden factories and eliminating them, organizations can achieve significant improvements in productivity, quality and customer satisfaction. iii. 5S The 5S method is a popular lean production tool used to create a clean, organized and efficient workplace. The approach consists of five steps each starting with the letter “S”. 1. SORT- The first step is to sort through all the items in the workplace, separating the necessary items from the unnecessary items. Unnecessary items should be removed or discarded to reduce clutter and improve flow. 2. SET IN ORDER- The second step is to arrange the necessary items in logical and efficient order. This ensures that the tools, equipment and materials are easy to find and access when needed. 3. SHINE- The third step involves cleaning and organizing the workplace to ensure that it is safe, efficient, and visually appealing. Regular cleaning helps to identify potential causes or defects and prevent accidents or mistakes. 4. STANDARDIZE- The fourth step is to establish standard procedures and work instructions for maintaining the organized and efficient workplace. This ensures consistency and sustainability of the improvement made in the previous steps. 5. SUSTAIN- The final step involves creating a culture of continuous improvement by training and motivating employees to maintain the workplace organization and efficiency. This helps to ensure that the improvements made are sustained over time. (Lee, 1997) highlighted the benefits that SMEs get from the application and implementation of 5S in their production process and how it works at their competitive advantage. (Womack, 1991) it provides guidance on how to apply 5S in the manufacturing setting. 14

iv. Automation Automation is a powerful lean production tool that can improve productivity, quality and efficiency by reducing wastes, variability and errors. Automation involves the use of advanced technology and machinery to perform tasks that were previously done manually by workers.(Chen, 2009)proposed that one of the quickest ways of improving production in SMEs is through the application of automation as lean production tool. At its most elemental level, Lean manufacturing is \"pull\" production, which is driven by customer or market place demand (Soltan, 2013). Lean production optimizes all of your enterprise’s flow in response to that demand: material flow, people flow, and information flow. Is it possible to use automation and still be “Lean”? When automation is implemented to optimum it leads to emerging of new ways of reducing waste, energy and effort since they are used in the right way (Salleh). By Automating certain processes, companies can reduce the need for human intervention which can eliminate the potential for human error and increase the speed and accuracy of operations. Automation can also help to reduce waste by optimizing material usage and reducing effects. However, automation is not always the best solution for every situation. Some processes may not be suitable for automation, and the cost of automation may not justify the potential benefits. Additionally, automation may lead to job loss and may require significant investments in capital and training. Therefore, companies should carefully evaluate the potential benefits and costs of automation before implementing it. They should also consider the potential impact on their workforce and develop strategies to support their employees through transition. 15

v. Total Productive Maintenance (TPM) Total Productive Maintenance (TPM) is a lean production tool aimed at maximizing the productivity of equipment and machinery while minimizing downtime and waste. It is a holistic approach to maintenance that involves everyone in the organization, from top management to shop floor operators. The goal is to create a culture of continuous improvement and equipment reliability. According to OEE systems (2020), a provider of TPM software solutions, “TPM is a structured approach to maintenance that aims to maximize the efficiency and effectiveness of production equipment by involving all employees in the organization in a process of continuous improvement” Also, according to Nakajima (1998), TPM involves “the maintenance of equipment, not just by maintenance staff, but by all employees in the company”. It is a holistic approach to maintenance that emphasizes the prevention of equipment breakdowns, rather than simply repairing equipment after it has failed. This is achieved through the implementation of autonomous maintenance activities such as cleaning and lubrication, by operators themselves as well as the involvement of cross functional teams in equipment activities. One of the key principles of TPM is to involve all employees in the maintenance process. This includes training employees on how to identify and correct problems with equipment as well as encouraging them to take ownership of the equipment they use. By involving everyone in the process, TPM creates a sense of shared responsibility for equipment maintenance and helps to build a culture of continuous improvement. Another aspect of TPM is the focus on preventive maintenance. Rather than waiting for equipment to break down, TPM emphasizes the importance of proactive maintenance to prevent downtime and ensure equipment is operating at peak efficiency. This includes regular inspections, cleaning and lubrication as well as identifying and addressing potential problems before they become major problems 16

Overall, TPM is an effective lean production tool that can help organizations improve equipment reliability, reduce downtime and increase productivity. By involving all employees in the maintenance process and emphasizing preventive maintenance, TPM creates a culture of continuous improvement and equipment reliability. vi. Standardized Work Standardized work is a lean tool that involves creating detailed instructions for performing a task in the most efficient and effective way possible. It is the key element of lean production as it helps to eliminate waste, reduce variability and improve quality. According to the lean Enterprise Institute, “Standardized work is a tool for making the work simpler, safer and more efficient by specifying the tasks to be performed, the sequence of those tasks, the work in progress and the cycle time required and the standard inventory needed for the job” According to (Rother, 1999) standard work involves “creating and implementing a detailed, step-by-step sequence of tasks that represents the most effective way to complete a process or operation based on the current best practices and input from employees”. This documentation serves as a reference for all employees involved in the process and helps to ensure consistent performance and quality. Standard work is closely linked to the concept of continuous improvement, as it provides a baseline for identifying opportunities for improvement and testing new ideas. By regularly reviewing and updating standard work documentation, organization can continuously improve their process and achieve greater efficiency and quality. A study by (Karlsoon, 1996) found that the implementation of standard work in SMEs resulted in significant improvements in productivity, quality and employee satisfaction. The process of creating standardized work involves observing the current process and identifying areas where waste can be eliminated such as unnecessary motion, waiting 17

overproduction or defects. Once the waste has been identified, the process is redesigned to eliminate the waste and create a more efficient and effective process. Once the process has been redesigned, the next step is to create detailed instructions for performing the task in the most efficient and effective way possible. This includes specifying the sequence of steps, the time for each step, tools and the materials needed for the job. By standardizing the process, variability is reduced and quality improved. vii. Pull system / Kanban Pull system or Kanban is a lean production tool that is used to control the flow of materials and production process by producing only what is needed, when is needed, and in the amount that is needed. It was first developed by Toyota in the 1940s and has since been adopted by many manufacturing organizations worldwide. According to (Ohno, 1988) pull production involves “establishing a system where production process is initiated based on actual demand and the products are produced only when they are needed”. This is achieved through the use of Kanban cards, which are used to signal the need for more material or products to be produced. Kanban cards are used to track the movement of materials and products through the production process and to signal when more material is needed to keep the process flowing smoothly. This helps to eliminate waste and reduce inventory levels, as production is driven by actual demand rather than forecasts or assumptions. A study by Shah and Ward (2003) found that the implementation of Kanban in a manufacturing organization resulted in the significant improvement in production lead time, inventory levels and productivity. 18

2.2.2 Small Medium Enterprises (SMEs) Performance According to David (2007); Performance Indicators are elements that firms use to evaluate, examine and monitor SMEs. These elements are usually put in use to assess success in relation to set aims and objectives. Some of the commonly used performance indicators worldwide include: Count (Good or Bad); this is a crucial factory floor metric that establishes the amount of product produced. This appertains to a choice of product quality based on the last machine or production for the whole shift or week. In most firms’ individual worker is compared with the shift output in order to amusing the spirit of competitiveness among workers. Reject Ratio; this is an indicator where scrap in the production process is measured in terms of turn down ratio. Scrap minimization assists in maximization of profits and ensures minimum wastage. Rate; this is a performance indicator where there is the use of relative scale in relation to profits, speed and even holding in check of quality. That is the reason as to why operations speed should be ensured to be consistent and also have production targets well displayed including quantity and quality. These indicators improve the morale of workers which in turn leads to attaining the set targets which in turn leads to meeting specific performance targets; hence firm performance is determined using; Takt Time; is a manufacturing term to describe the require product assembly duration that is need to match the demand. But sometime many people confuse with cycle time, but TAKT time is a tool used to design work and it measure the average time interval between the start of production of one unit and the start of production of the next unit when items to produced sequentially. 19

Assuming a product is made one unit at a time at a constant rate during the net available work time, the TAKT time is the amount of time that must elapse between two consecutive unit completions in order to meet the demand. But in a net available work time we exclude break times and any expected stoppage time for stance scheduled maintenance etc. TAKT time can be first determined with the formula: ������������ ������ = ������ Where; T - TAKT time Ta - net time available to work during the period (work time per period) D - Demand (customer demand) during the period (unit required per period) Note that; in calculation of takt time only include the time that the production team will be actively working on creating value for customers. This means it’s important to exclude breaks, scheduled maintenances and shift change overs (If there are any). 2.3 Empirical Study This part presents all the local and foreign studies that have addressed the issue and implementation of lean production tools in SMEs. By Local studies, it means all the studies that have been conducted within the continent of Africa particularly from East Africa. Foreign studies are those that have been done outside the continent of Africa and for this case include those from Malaysia, India and Europe. 20

2.3.1 Presentation of Local studies that have addressed the issue under study A study by (Njoiri, 2008) on the application of Lean manufacturing tools to improve competitive advantage of SMEs, he concluded that operational strategies applied for competitiveness include high quality, low cost, innovativeness and flexibility which are ranked equally. A study conducted by (Manazai, 2012) which was looking at lead time variability and supply chain performance of SMEs in Kenya established that lead time variability has got a great impact on the performance of supply chain. A study conducted by (Ondiek, 2013) which was looking at the adoption of lean manufacturing tools and techniques in Sugar processing industries in Kenya established that not all lean manufacturing practices and tools had influence on time efficiency but instead it depended on the level of Implementation of the technique. Lastly, a study performed by (Magutu, 2016) on Lean manufacturing practices and performance of Tea processing firms in Kisii, Kenya suggested that it was important for industries to adopt Lean manufacturing practices as it will work on their competitive advantage. 2.3.2 Presentation of Foreign studies that have addressed the issue under study “Lean Manufacturing Implementation in Small and Medium-Sized Enterprises; A comparative study of India and the United States” by Kaur and Singh (2019). This study compares the Implementation of Lean production tools in SMEs in India and the United States. The authors identify the key differences in implementation strategies and cultural factors that affect the success of Lean implementation in each country. “The Implementation of Lean Production in SMEs; (Koenigsacker, 2005) This study investigates the implementation of Lean production tools in a Thai SME. The authors identify the key success factors and challenges of Lean Implementation in the Thai 21

context, and propose recommendations for other Thai SMEs considering the implementing Lean production. “The Implementation of Lean Manufacturing in Small and Medium Enterprises” by Shah and Ward (2003). This study investigates the implementation of Lean production tools in SMEs through a series of case studies. The authors identify the key success factors and challenges of Lean implementation in SMEs and propose a framework for implementation. “Lean Implementation tools within SMEs” by (Williams, 2015). This study explained in detail about the impact of Lean implementation in SMEs and the critical success factors for lean implementation in SMEs “Determinants and Barriers to Lean implementation in Food processing SMEs” by (Dora, 2016). The study explored the crucial elements of lean production tools implementation in the food processing SMEs. “Lean Philosophy Implementation in SMEs” by (Stadnicka, 2017). This paper shows the results of the study carried out in SMEs relating to the enterprises. “Lean implementation Frameworks” by (Yxu, 2017). The study reviews that there are few frameworks developed specifically for the needs of Small and Medium Enterprises. Lastly, “Lean manufacturing Implementation in Small and Medium Sized enterprises; A qualitative study” by Mokhtar et al (2015). This study investigates the implementation of Lean production tools in SMEs in Malaysia. The authors identify the key success factors and the challenges of Lean implementation in SMEs, and propose a model for implementation based on their findings. 22

2.4 Overall Research Gap While there is Literature available on the implementation of Lean production tools in SMEs, there is a lack of empirical studies exploring the steps to be taken in implementing lean production tools in SMEs from initial assessment of the organization’s current state to the final stage of continuous improvement. There is also lack of a clear and actionable plan for organizations (this case SMEs) to successfully adopt and utilize lean production tools. Also the available roadmap that was developed by seems complicated in the implementation process and doesn’t suit the implementation particularly in Africa as it categorizes SMEs slightly differently from categorization done by URT. That is why this research study aims to develop a systematic roadmap for effective implementation of lean production tools in SMEs (that will suit all regardless the product or service it offers) whilst taking all that into consideration. 23

CHAPTER THREE MATERIAL AND METHODS 3.0 Description of the approach used in the Action Research According to (Yin, 1994), action research “is a participatory democratic process concerned with developing practical knowledge in pursuit of worthwhile human purposes, grounded in a participatory worldview which we believe is emerging at this historical moment”. In simple terms action research is a research approach that involves problem solving and change in practical contexts. The approach typically involves a cyclical process of planning, action and reflection with a focus on addressing practical problems and improving performance (Barney, 1991)Conducting this research on the implementation of Lean production tools in SMEs involved a structural approach that includes the following steps; Problem identification, Literature review, Research questions formulation, Research design, Data collection, Data analysis, Results Interpretation and finally conclusion and recommendations. 3.1 Research Design To obtain answers to the formulated research questions, the research design method used was census survey research design which involved the collection of information from a sample of individuals through their responses to questions (Schutt, 2012). Also cross sectional study was adopted. Cross sectional study is the type of research design that involves collection of data at a single point in time. According to Shuttle (2008), this design is suitable for the study since it has been used by many scientific disciplines to attain general overview of the subject in a particular portion of study. This research study also used a quantitative method research design that involved collection of data through questionnaires. 24

3.2 Population The target population includes Small and Medium Scale tea processing industries in the Southern Highland Region including Iringa, Njombe and Mbeya regions. According to the report by Tanzanian Business Registration and Licensing Agency (BRELA) of 2020, Tea industries are categorized into tea processing industries and tea blending industries. The report pinpoints five industries in the Southern Highlands in which four of them fall in the category of Small and Medium Enterprises. The one left is Unilever Tea Processing Company (currently named Ekaterra) which is on Large scale. The sampling technique used to select these industries was purposive sampling which only concentrated on small and medium tea processing industries. The information was collected from management level only.These industries include; a). Mwakaleli Tea Factory It is a small scale tea processing factory situated in Mbeya Region, Tanzania. It is one among the major small scale industries situated in Mbeya region. b). Kisigo Tea Factory It is a small scale tea processing factory situated in Iringa region at Mufindi district. It was established in 1999 and acts as a processor, blender, packer and seller of Tea. Source of their tea is mainly from smallholder farmers. c). Luponde Tea Company It is a medium scale tea processing company located in the southern highlands; in Njombe region. The tea produced by Luponde Tea Company is sold under various brands including Luponde Tea, Usangu Tea and Safari Tea. The company is committed to a sustainable and ethical tea production and is Rainforest Alliance Certified. 25

d). Mufindi Tea Company (MTC) Mufindi Tea Company is a medium scale tea growing and processing company based in Tanzania. It was established in the 1970’s and is located in Mufindi district of Iringa Region. Tea produced by Mufindi Tea Company is sold under various brands including Mufindi Tea, Kilimanjaro Tea and Highland Tea. The population frame was shown in appendix ii. 3.2.1 Sample Size Data about the lean tools applied will be given by the management department of the chosen industries. This is to include production managers, factory unit manager and supervisors of the machines. Sample size is given by Slovan’s formula which is given as; n = ������ 1+������(������)2 Whereas; n is the sample size N is the total population e is the margin of error (it depends on the confidence level used) Table 3.1 Depicted Below; Company Respondents (Management only) Sample Size (n) Kisigo Tea Factory 1 1 Mwakaleli Tea Factory 2 2 Luponde Tea Company 3 3 Mufindi Tea Company 4 4 TOTAL N = 10 n =10 26

Total sample size is calculated as; n = ������ 1+������(������)2 In which; n= is the total sample size to be calculated N= is the total number of respondents which is 10 for this case e= is the margin of error which is 0.05 So, n= 10 1+10(0.05)2 n= 9.756~ 10 so the total sample size is 10 Sample size for each is given as; (Respondents in each /Total respondents (N)) × Sample size (n) So for the case of each Industry then; Kisigo Tea Factory= 1/10×10 =1 Mwakaleli Tea Factory = 2/10 ×10 =2 Luponde Tea Company = 3/10×10 =3 Mufindi Tea Company = 4/10×10 = 4 So a total of 10 questionnaires will be submitted to the respective tea factories. 27

3.3 Data Collection The data obtained and used in this research study were collected from two sources which are Primary source and Secondary source. 3.3.1 Primary Source Primary source of data employed in the research was obtained using a questionnaire. The questionnaire contained both open and closed ended questions related to Lean production tools of Small and Medium tea manufacturing factories in Southern Highlands, Tanzania. A 5 point and 3 point Likert scale was used in questions which need rating by the respondent. According to (Mugenda, 2003) if ¾ of the questionnaires are answered then they are reasonable to attain useful information in relation to the population. (Orodho, 2004) said that this technique reaches a huge number of subjects able to read and write independently. The questionnaire set was self-administered. It comprised of four sections; Section one was designed to collect data which was described as general information of the respondent, Section two was designed to address the commonly used lean production tools in Small and Medium tea processing firms in Southern Highlands, section three was designed to gather data related to the challenges faced by the tea processing firms in their pursuit to put into practice Lean production tools, and section four based on the impact of lean production tools. The respondents of the research questions were production managers, production assistants, Factory unit manager and Field coordinators per factory. 28

3.3.2 Secondary Source The major second hand sources of data in the research were; 3.3.2.1 Published reports and articles These included various reports from government agencies, research organizations and academic journals. These have helped in providing a comprehensive analysis of a specific topic and it’s useful in supporting the research study. 3.3.2.2 Online Databases These include data bases of articles, reports and other types of information that has been collected and analyzed by other researchers. Those have assisted a lot in finding relevant information on the topic under study. 3.4 Data Analysis Data which was collected was edited to establish the accuracy, uniformity, consistency and completeness and arranged which enabled coding and tabulation of the data before final analysis. Data was analyzed through descriptive statistics were an indication of Lean production tools in tea processing firms in Southern Highlands of Tanzania. The outcomes of the study were presented using tables, proportions and frequency distribution tables. Regression was used in determining the relationship between lean production tools and performance in tea processing factories in Southern Highlands of Tanzania. The following model was used to show the relationship between Lean production tools and the SMEs performance: Y=a+b1x1+b2x2+b3x3+b4x4+b5x5+b6x6+b7x7. Where; Y=Organizational Performance a = the Y intercept when x = zero 29

b1, b2, b3, b4, b5, b6 and b7 are the regression weights attached to the respective variables as stated below X 1=Kaizen x2 = Value Stream Mapping, x3= 5S, x4 = Automation, x5 = Total Productive Maintenance (TPM), x6= Standardized Work and x7 = Pull System / Kanban. The model was used simply because it is one of the crucial techniques in statistics for business application. It's a statistical technique that assists to estimate the strength and direction of the relationship between two or more variables. The software statistical package used for Data analysis was Statistical Product and Service Solution (SPSS). This has enabled provision of a t-test, ANOVA and Regression. SPSS was chosen as it is a user friendly interface that makes it easy to conduct data analysis. The program also provides guidance on which statistical tests to use. It provides output that can be easily exported to other programs for further analysis and reporting. 3.5 Ethical Considerations The study was conducted in a fair and unbiased manner. The study also considered respect for diversity in which participant’s cultural and social diversity was respected. The research study also considered issue of confidentiality in which participant’s data is confidential and can only be accessed by authorized personnel with participant’s consent. 30

Figure 3.1: Summary of the Research Methodology pursued Selection of Company Questionnaire From Report SME company s Primary (Tea Industry) Contact sources. through email Results analysis From Secondary sources. 31

CHAPTER FOUR PRESENTATION OF RESULTS 4.1 Introduction This chapter presents the data analysis, interpretation and presentation. The analyzed is presented using cumulative frequency tables, pie charts, Bar charts and SPSS has also been used to provide a wide range of analysis of data such as inferential statistics, ANOVA, correlation and also a regression model which established the relationship between lean production tools and performance in tea processing firms in southern highland Tanzania. 4.2 Questionnaires return Out of the ten questionnaires which were given out, all the 10 questionnaires were returned that meant data from all the four tea factory will be used for data analysis. This translated to 100% of the total questionnaires which is sufficient enough to represent the whole population which was targeted in this study. 4.3 Position of the Respondents Table 4.1 shows the analyzed data in relation to the position of the respondents Position of Frequency Valid % Cumulative % Respondents 40 40 Production Manager 4 20 60 Production Assistant 2 40 100 Supervisor 4 100 TOTAL 10 Source; Research Findings (2023) The table above illustrates the results regarding the position of the respondents. The results portray that majority of the respondents were production managers and supervisors which account to a total of 4 which is equivalent to 40%. Production 32

Assistant position had the lowest response rate accounting to 20% of the total respondents. Figure 4.1: Pie Chart Showing Position of the Respondents Position of Respondents 40% 40% Production Manager 20% Production Assistant Supervisor Source; Research Findings (2023) The pie chart above illustrates the position of the respondents in terms of percentage. The majority of respondents were production managers and Supervisors which were represented by blue color for production managers and grey for supervisors. The lowest rates of respondents were the production Assistants which was represented by orange color. 33

Figure 4.2: Bar Chart Showing Position of the Respondents Position of Respondents MUFINDI TEA COMPANY LUPONDE TEA COMPANY MWAKALELI TEA FACTORY KISIGO TEA FACTORY 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Supervisors Production Assistants Production Managers Source; Research Findings (2023) The bar chart above breaks down the results pertaining the position of the respondents in each tea processing industry respectively. Kisigo Tea Factory has no supervisors nor production assistants. However, it has one production manager. Mwakaleli Tea Factory has supervisor and one production managerand doesn’t have any production assistant. Luponde Tea company has one production manager, one production assistant and one supervisor respectively. And Lastly, Mufindi Tea Company (MTC) has got one supervisor, one production assistant and 2 production managers. 34

4.4 Level of education Table 4.2 Represents the Level of Education of Respondents Level of Education Frequency Valid % Cumulative % Graduate 1 10 10 Undergraduate 7 70 80 Diploma 2 20 100 TOTAL 10 100 Source; Research Findings (2023) The table above represents the results about the level of education of the respondents. The majority numbers of respondents were undergraduate level which was seven equivalents to 70% of all the respondents. This was followed by diploma level which amounted to two equivalents to 20% of all the respondents. And the lowest of them all was Graduate level which had only one equivalent to 10% of the total respondents. Figure 4.3: Pie Chart Represents the Level of Education of Respondents Level of Education 20% 10% Graduate 70% Undergraduate Diploma 35

The pie chart above represents the level of education of the respondents. The majority of the respondents had undergraduate level of education which is 70% and it is represented in orange color. This was followed by diploma level accounting to 20% and is represented by grey color and lastly is graduate level which had one-person equivalent to 10% and is represented by blue color. Figure 4.4: Bar Chart Represents the Level of Education of Respondents Level of Education 0 3 MUFINDI TEA COMPANY 3 LUPONDE TEA COMPANY 1 1 0 2 MWAKALELI TEA FACTORY 0 KISIGO TEA FACTORY 0 1 0 1 0 0.5 1 2.5 Diploma 1 1.5 2 Undergraduate Graduate Source; Research Findings (2023) The bar chart above represents detailed results concerning the level of education in all the four industries. Kisigo Tea Factory had neither graduate level nor diploma level respondents but had only one undergraduate level. Mwakaleli Tea Factory on the other hand had no graduate level respondent but had one undergraduate level respondent and one diploma level respondent. Luponde Tea Company had no graduate level respondent, two undergraduate level respondents and one diploma level respondent. Mufindi Tea Company (MTC) had no diploma, three undergraduate level respondents and one graduate level respondent. 36