The Causal Relationship Model of Factors Affecting Lean Waste Elimination in Oil and Gas Exploration and Production Industries in Thailand

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Prateep Nark-On
Yanyong Kodcharat
Siriluck Thongpoon
Woraluck Lalitsasivimol


Companies in the oil and gas exploration and production industry in Thailand have been adversely affected by the rapid and continued decline in global oil prices. As a result, the strategic plan has to be adjusted in order to reduce the production cost per unit. The Lean concept to eliminating waste in the organization has been considered to apply instead of reducing the number of employees. Factors used for this study were: Lean waste, Digital transformation, Human resource management, Tools and technique, and Organization change. The results of the study by analyzing the statistical multivariate using the structural equation model. The consistency of the model with the empirical data, it was found that Chi-square (c2) = 113.59, Degree of freedom (df) = 62, c2 /df = 1.83, c2 test (p-value) = 0.00007, RMSEA = 0.060, CFI = 0.99, NNFI = 0.99, RMR = 0.013 and SRMR = 0.017. Digital transformation, and Tools and techniques are the factors that direct influence to Lean wastes elimination. Human resource management is a factor that direct influences to Organizational change. Organizational change is a factor that direct influence to Tools and techniques. As a result of the relationship, it was suggested that the adoption of digitalization and applications in the organization reduces wastes and costs. Especially in term of transportation, reduce working and waiting time. In case of Digital transformation, it needs the support from management and human resource management section to make organization change. Including selection of appropriate and consistent tools and techniques for efficient, integrated and sustainable operation.

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Nark-On, P., Kodcharat, Y., Thongpoon, S., & Lalitsasivimol, W. (2020). The Causal Relationship Model of Factors Affecting Lean Waste Elimination in Oil and Gas Exploration and Production Industries in Thailand. WMS Journal of Management, 9(4), 109–123. Retrieved from
Research Articles-Academic Articles
Author Biographies

Prateep Nark-On

Hatyai Business school, Hatyai, Songkhla, 90110

Yanyong Kodcharat

Hatyai Business school, Hatyai, Songkhla, 90110

Siriluck Thongpoon

Hatyai Business school, Hatyai, Songkhla, 90110

Woraluck Lalitsasivimol

Hatyai Business school, Hatyai, Songkhla, 90110


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