The Causal Relationship Model of Factors Affecting Lean Waste Elimination in Oil and Gas Exploration and Production Industries in Thailand
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Published:
Oct 27, 2020
Keywords:
Lean waste, Digital transformation, Human resource management, Tools and technique, Organization change
Main Article Content
Abstract
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.
Article Details
How to Cite
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 https://so06.tci-thaijo.org/index.php/wms/article/view/245377
Section
Research Articles-Academic Articles
References
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Nguyen, D. M. (2015). Lean Management Model in Retail Business The Case of Supermarkets in Hanoi. VNU Journal of Science: Economics and Business, 31(2), 1-14.
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Schubmehl, D., & Vesset, D. (2014). The knowledge quotient: Unlocking the hidden value of information using search and content analytics. White paper, IDC.
Schumacker, R. E. & Lomax, R. G. (2010). Structural Equation Modeling. (3rd ed.). New York: Routledge.
Shah, R. & Goldstein, S.M. (2006). Use of structural equation modeling in operations management research: looking back and forward. Journal of Operations Management, 24(2), 148–169.
Song, J., Guo, B., Lee, J., & Jiang, S. (2016). Application of Lean Tools in the Oil Field Safety Management. International Journal of Engineering Research and Applications, 6(11), 58-67.
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[The analysis of MIMIC model: The using of LISREL program trial version for research]. Journal of the Association of Researcher, 18 (2), 128-140.
Thumkhosit, U. (2011). kānčhatkān . [Management]. (1st ed.) Bangkok, Thailand: Graduate School of Public Administration, National Institute of Development Administration.
Uppathampracha, R. (2019). samatthana khō̜ng nak sapphayākō̜n manut mư̄ʻāchīp. [Competencies of Human Resources Professional]. WMS Journal of Management, 8(2), 122-135.
Wahab, A. N. A., Mukhtar, M., & Sulaiman, R. (2013). A conceptual model of lean manufacturing dimensions. Procedia Technology, 11, 1292-1298.
Wanitbancha, K. (2007). kān wikhro̜ sathiti : sathiti samrap bō̜rihān læ wičhai. [Statistical Analysis: Statistics for Management and Research] (10th ed.). Bangkok, Thailand: Chulalongkorn University.
Wiratchai, N. (1999). mōdēnlitrēn : sathiti wikhro̜ samrap kānwičhai .[LISREL Model: Analytical Statistics for Research] (3rd ed.). Bangkok, Thailand: Chulalongkorn University.
Womack, J. (2006). MURA, MURI, MUDA? Retrieved from http://www.lean.org/womack/DisplayObject.cfm?o=743
Wycherley, I. (1999). Greening supply chains: the case of the Body Shop International.
Business Strategy and the Environment, 8(2), 120-127.
Yuwanasiri, B. (2016). chēprō̜n lot tonthun plot phanakngān - phū rapmao Khon Thai pǣtrō̜i khon. [Chevron "cost reduction layoffs - 800 Thai contractors”] Retrieved from https://aeitfthai.org/pr-news/1038.html
Abdullah, F. M. (2003). Lean manufacturing tools and techniques in the process industry with a focus on steel. (Doctoral dissertation, University of Pittsburgh, USA).
Adriana Rossiter, H., Hofer, C., Eroglu, C., & Waller, M. A. (2011). An institutional theoretic perspective on forces driving adoption of lean production globally. The International Journal of Logistics Management, 22(2), 148-178.
Alavala, C. R. (2008). CAD/CAM: concepts and applications. (2nd ed.) New Delhi, India: PHI Learning Pvt. Ltd.
Alinaitwe, H. M. (2009). Prioritising Lean Construction Barriers in Uganda's Construction Industry. Journal of construction in developing countries, 14(1),15-30.
Angsuchot, S., Wichitwanna, S. & Phinyophanuwat, R. (2009). sathiti wikhro̜ samrap kānwičhai thāng sangkhommasāt læ phrưttikam sāt : theknik kānchai prōkrǣm LISREL .[ Statistical Analysis for Social and Behavioral Science Research: Techniques for Using the LISREL Program.] (2nd ed.) Bangkok, Thailand: Charoen di Mang Khong.
Association for Talent Development. (2014). The ATD Competency Model. Retrieved from http://www.astd.org/Certification/ Competency-Model.aspx
Baldwin, J. S., Allen, P. M., Winder, B., & Ridgway, K. (2005). Modelling manufacturing evolution: thoughts on sustainable industrial development. Journal of Cleaner Production, 13(9), 887-902.
Bergmiller, G. G., & Mc Cright, P. R. (2009). Parallel models for lean and green operations. In Proceedings of the 2009 industrial engineering research conference (pp. 22-26). University of South Florida and Zero Waste Operations Research and Consulting.
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy: toward a next generation of insights. MIS quarterly, 37(2),471-482.
Bollen, K. A., & Long, J. S. (1993). Testing structural equation models. Newbury Park, CA. USA: SAGE Publications, Inc.
Caldera, H. T. S., Desha, C., & Dawes, L. (2017). Exploring the role of lean thinking in sustainable business practice: A systematic literature review. Journal of Cleaner Production, 167, 1546-1565.
Christopher, M. & Towill, D.R. (2000). Supply chain migration from lean and functional to agile and customized. Supply Chain Management: An International Journal, 5(4), 206-213.
Drew, J., McCullum, B. & Roggenhofer, S. (2004). Journey to Lean: Making Operational Change Stick. Virginia: Palgrave MacMillan.
Fercoq, A., Lamouri, S., & Carbone, V. (2016). Lean/Green integration focused on waste reduction techniques. Journal of Cleaner production, 137, 567-578.
Fitzgerald, M., Kruschwitz, N., Bonnet, D., & Welch, M. (2014). Embracing digital technology: A new strategic imperative. MIT sloan management review, 55(2), 1-12.
Garson, G. D. (2011). Structural Equation Modeling. Retrieved from http://faculty.Chass.ncsu.edu/garson/PA765/structur.htm
Hair, J. F., Jr., Black, B., Babin, B., Anderson, R., & Tatham, R. (2006). Multivariate data analysis. (6th ed.). New Jersey: Prentice-Hall.
Hobbs, D.P. (2004). LEAN manufacturing implementation: a complete execution manual for any size manufacturer. New York: J. Ross Publishing.
Howell, G. A. (1999). What is lean construction-1999. Proceedings of the 7th IGLC, (pp.1-10). Berkeley, CA, USA: University of California.
Kim, D., & Park, H. S. (2006). Innovative construction management method: Assessment of lean construction implementation. KSCE journal of Civil Engineering, 10(6), 381-388.
Kline, R. (2011). Convergence of structural equation modeling and multilevel modeling. In Williams, M., & Vogt, W. P. The SAGE handbook of innovation in social research methods,562-589. London: SAGE.
Knegtering, B., & Pasman, H. J. (2009). Safety of the process industries in the 21st century: A changing need of process safety management for a changing industry. Journal of Loss Prevention in the Process Industries, 22(2), 162-168.
Krichbaum, B. D. (2008). Standardized Work: The Power of Consistency. Retrieved from http://www.processcoachinginc.com/images/Standardized%20Work.pdf.
Lawrence, T.B., Dyck, B., Maitlis, S., & Mauws, M.K. (2006). The underlying structure of continuous change. MIT Sloan Management Review, 47(4), 59-66.
McManus, W. (2013). Muda, Muri, Mura - Toyota Production System guide. Retrieved from http://blog.toyota.co.uk/muda-muri-mura-toyota-production-system
Mearns, K., & Hope, L. (2005). Health and well-being in the offshore environment: The management of personal health. Sudbury, UK: HSE Books.
Mollenkopf, D., Stolze, H., Tate, W. L., & Ueltschy, M. (2010). Green, lean, and global supply chains. International Journal of Physical Distribution & Logistics Management, 40(1-2), 14-41.
Monden, Y. (2011). Toyota production system: an integrated approach to just-in-time. (4th ed.). Florida, USA: CRC Press.
Muchira, T. N., & Kiambati, K. (2015). The Role of Human Resource Development as a Change Agent. Education Journal, 4(5), 214-221.
Nguyen, D. M. (2015). Lean Management Model in Retail Business The Case of Supermarkets in Hanoi. VNU Journal of Science: Economics and Business, 31(2), 1-14.
Nicolette, D. (2012). Utilization thinking vs. throughput thinking. Retrieved from: https://davenicolette.wordpress.com/2012/02/04/utilization-thinking-vs-throughput-thinking/
Oladiran, O. J. (2008). Materials wastage: causes and their contributions’ level. In Proceedings of the CIB-2008, 15-7. University of Salford, UK.
Pienkowski, M. (2014). Waste Measurement Techniques for Lean Companies. International Journal of Lean Thinking, 5(1), 9-24.
Rawabdeh, I. A. (2005). A model for the assessment of waste in job shop environments. International Journal of Operations & Production Management, 25(8), 800-822.
Robbins, S.P. (1994). Essentials of Organizational Behavior. (4th ed.) Englewood Cliffs New Jersey: Prentice Hill.
Sarkis, J. (2003). A strategic decision framework for green supply chain management. Journal of cleaner production, 11(4), 397-409.
Schubmehl, D., & Vesset, D. (2014). The knowledge quotient: Unlocking the hidden value of information using search and content analytics. White paper, IDC.
Schumacker, R. E. & Lomax, R. G. (2010). Structural Equation Modeling. (3rd ed.). New York: Routledge.
Shah, R. & Goldstein, S.M. (2006). Use of structural equation modeling in operations management research: looking back and forward. Journal of Operations Management, 24(2), 148–169.
Song, J., Guo, B., Lee, J., & Jiang, S. (2016). Application of Lean Tools in the Oil Field Safety Management. International Journal of Engineering Research and Applications, 6(11), 58-67.
Swuste, P., Theunissen, J., Schmitz, P., Reniers, G., & Blokland, P. (2016). Process safety indicators, a review of literature. Journal of Loss Prevention in the Process Industries, 40, 162-173.
Sylthe, O., & Brewer, T. (2018). The Impact of Digitalization on Offshore Operations. In Proceeding of Offshore Technology Conference, Texas, USA.
Teungfung, R, & Chitwirat, K. (2011). panhā læ khō̜sanœ̄nǣ nai kān wikhro̜ mōdēn samakān khrōngsāng dūai prōkrǣm Lisrel [Problems and suggestions for analyzing the structural equation modeling with Lisrel program] Journal of the Association of Researcher, 16(1),106-119.
Teungfung, R. (2013). kān wikhro̜ mō dē lami mik kānchai prayōt čhāk prōkrǣm LISREL run thotlō̜ng chai phưa ngānwičhai
[The analysis of MIMIC model: The using of LISREL program trial version for research]. Journal of the Association of Researcher, 18 (2), 128-140.
Thumkhosit, U. (2011). kānčhatkān . [Management]. (1st ed.) Bangkok, Thailand: Graduate School of Public Administration, National Institute of Development Administration.
Uppathampracha, R. (2019). samatthana khō̜ng nak sapphayākō̜n manut mư̄ʻāchīp. [Competencies of Human Resources Professional]. WMS Journal of Management, 8(2), 122-135.
Wahab, A. N. A., Mukhtar, M., & Sulaiman, R. (2013). A conceptual model of lean manufacturing dimensions. Procedia Technology, 11, 1292-1298.
Wanitbancha, K. (2007). kān wikhro̜ sathiti : sathiti samrap bō̜rihān læ wičhai. [Statistical Analysis: Statistics for Management and Research] (10th ed.). Bangkok, Thailand: Chulalongkorn University.
Wiratchai, N. (1999). mōdēnlitrēn : sathiti wikhro̜ samrap kānwičhai .[LISREL Model: Analytical Statistics for Research] (3rd ed.). Bangkok, Thailand: Chulalongkorn University.
Womack, J. (2006). MURA, MURI, MUDA? Retrieved from http://www.lean.org/womack/DisplayObject.cfm?o=743
Wycherley, I. (1999). Greening supply chains: the case of the Body Shop International.
Business Strategy and the Environment, 8(2), 120-127.
Yuwanasiri, B. (2016). chēprō̜n lot tonthun plot phanakngān - phū rapmao Khon Thai pǣtrō̜i khon. [Chevron "cost reduction layoffs - 800 Thai contractors”] Retrieved from https://aeitfthai.org/pr-news/1038.html