The impact of whole life costing on organisational efficiency: A case study of Kampala Industrial and Business Park
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Date
2024-09-18
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Nakeyi Esther
Abstract
The study "The Role of Whole Life Costing on Organizational Efficiency in Manufacturing
Industries: A Case Study of Kampala Industrial and Business Park." aims to investigate the
role of whole life cycle costing (WLC) in cost optimization, waste reduction, and the
relationship between Whole Life Costing (WLC) and risk management. A combination of
methods was used, merging non-numerical data interpretation alongside statistical data
interpretation. The Kampala Industrial and Business Park's manufacturing sectors served as the
main source of data, with secondary data obtained from books and journal articles.
The study involved a population of 64 stakeholders, with a sample size of 55 determined using
the Taro Yamani 1967 formula. A simple random sampling method was employed, and data
was gathered by using questionnaires that included structured interview questions. Findings
were presented using tables and determined by descriptive metrics. Following the study's
outcomes, whole-life costing can reduce financial risks, facilitate the inclusion of sustainable
waste management in manufacturing industries, and achieve cost efficiency with time.
In examining the role of WLC on organizational efficiency in manufacturing industries, several
key findings emerged. Whole-life costing promotes effective waste management processes and
has reduced waste generation by the manufacturing industries. This accounting system has
especially improved asset management and increased machine useful life while mitigating
operational risks. The respondents exhibited an understanding of whole-life costing although
certain data indicated recent integration of Whole-life costing in certain industries. However,
gaps existed in stakeholder engagement in many industries, and a challenge with acquiring
financial data for accounting purposes.
Overall, the study highlights the need for investment in training aid for employees for a clear
understanding of whole life costing, investment in technology for data accuracy, and
integration of WLC in Inventory management, supply chain management, and logistics of
industries. The research also indicated that WLC is largely used in the construction sector. In conclusion, this research has contributed to a more thorough understanding of cost
management strategies which will enable industries to enhance cost efficiency, and risk
visibility and gain competitive advantage.