Application Of Lean Principles By The Volta River Authority Of Ghana – Prospects And Benefits
Seth Ampaw Sqn Ldr
Air Force Base, Tamale
Keywords: Lean principles, power manufacturing process, waste elimination, operational efficiency
Abstract
This paper examined the prospects and potential benefits that could accrue to the Volta River Authority (VRA) of Ghana through the application of lean principles in its power manufacturing processes. The research employed secondary data from documented research papers and periodicals. Other secondary data sources included news bulletins, financial statements and strategic plans, and survey reports by the VRA. The VRA is Ghana’s major power generating company but grapples with inadequate power production. This has adversely affected the country’s socio-economic growth as businesses and households spend more on expensive alternative power sources. While funding is a major constraint, systemic wastage is another. Thus, if waste is minimized, production cost would reduce as revenue is maximized. The wastage manifests in forms including non-value-add activities such as delays, overproduction, and plant and personnel underutilization among others. Ridding itself of such wastage, which would include non-value-add activities, would free capital for the company to pursue more value-add activities for optimal benefits. The wastage or otherwise non-value-add activities identified include unpaid revenues, delayed information flow, excessive stores and staff and machinery underutilization. Others are frequent and long meetings and conferences, and the untapped potential in Information Communication Technology (ICT).