Designing Lean Supply Chain Framework in the Offshore Sector of the Oil and Gas Industry with a Sustainable Development Approach
Subject Areas : Sustainable DevelopmentAhmadreza Etemadi 1 , Ahmadreza Kasraei 2
1 - Ph.D. Student, Department of Management, Central Tehran Branch, Islamic Azad Unoversity, Tehran, Iran
2 - Associate Professor, Department of Forestry, Faculty of Natural Resources and Environment, Science and Research Branch, Islamic Azad University, Tehran, Iran ٭(Corresponding Authors)
Keywords: Sustainable development, Oil and Gas Industry, Lean Supply Chain,
Abstract :
Background and Objective: Today, Companies can use different supply chain paradigms to achieve better performance and improve their competitiveness. Lean supply chain is one of these paradigms that focuses on eliminating waste along the chain. On the other hand, the lean approach emphasizes three dimensions of economic, social and environmental along the chain and can lead to sustainability in supply chain. In fact, sustainability refers to a good balance between economic development, social assets and environmental issues. Due to the importance of the oil and gas industry in our country, the implementation of a lean supply chain based on sustainability in active organizations in this area is very important. Method: In order to conduct this study that has been carried out in one of the largest companies operating in the offshore sector, first, by reviewing the literature and opinion poll at the experts, the ten factors that lead to lean supply chain were identified. Then, using an interpretive structural modeling approach, the research framework was developed. Findings: in this framework, "management and leadership" as the most influential and the two factors, "minimization of delivery time" and "flexibility" were determined as the most influential factors. Discussion and Conclusion: Accordingly, the "management and leadership” was the basis of this framework and should be much considered. Finally, some suggestions were made to achieve lean procurement process with sustainable approach in the offshore sector of the oil and gas industry.
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- Patri, R., Suresh, M. 2017. Factors Influencing Lean Implementation in Healthcare Organizations: an ISM Approach. International Journal of Healthcare Management, Vol. 10, 1-13.
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- Tajbakhsh, A., & Hassini, E. 2015. A Data Envelopment Analysis Approach to Evaluate Sustainability in Supply Chain Networks. Journal of Cleaner Production, 105, 74-85.
- Jadhav, J. R., S. B., Mantha, S. S. 2014. Development of Framework for Sustainable Lean Implementation: an ISM approach. Journal of Industrial Engineering International, Vol. 10, No. 27.
- Hassini, E., Surti, C., & Searcy, C. 2012. A Literature Review and A Case Study of Sustainable Supply Chains with a Focus on Metrics. International Journal of Production Economics, 140(1), 69-82.
- Prakash, R., Thennaasou, E., Jegan, R. 2017. Lean in Supply Chain Management. International Journal of Innovative Research in Science, Engineering and Technology, Vol. 6, Issue 2, pp. 1-9.
- Lorden AL, Lin SH, Cote MJ. 2015. Measures of Success: The Role of Human Factors in Lean Implementation in Healthcare. Qual Cont Appl Statist, 60(1), 127–30.
- Sobral, M.C., Jabbour, A.B, Jabbour, C.J.C. 2013. Green Benefits from Adopting Lean Manufacturing: A Case Study from the Automotive Sector. Environ. Qual.Manag. 22 (3), 65–72.
- Pampanelli, A. B., Found, P., Bernardes, A. M. 2014. A Lean & Green Model for Aproduction Cell. J. Clean. Prod., 85, 19–30.
- Dickson E, Anguelov Z, Vetterick D, Eller A, Singh S. 2009. Use of Lean in the Emergency Department: a Case Series of 4 Hospitals. An Emerg Med, 54(4): 504–10.
- Kim, C. S., Spahlinger, D. A., Kin J., Billi, J. E., 2016. Lean Health Care: What Can Hospitals Learn From a World-Classautomaker? J Hosp Med 2016, 1(3), 9–191.
- Kundu, G. K., Manohar, B. M. (2012). A Unified Model for Implementing Lean and CMMI for Services (CMMI-SVC V1.3) Best Practices. Asian Journal on Quality, 162–138.
- Panizzolo, R., Garengo, P., Sharma, M. K., Gore, A. 2012. Lean Manufacturing In Developing Countries: Evidence From Indian Smes. Production Planning & Control: The Management of Operations, 769-788.
- Afonso, H., Cabrita, M. 2015. Developing a Lean Supply Chain Performance Framework in a SME: a Perspective Based on the Balanced Scorecard”, Procedia Engineering, 131, 270 – 279.
- Carvalho, H., Azevedo, S., & Machado, V. 2014. Trade-offs among Aean, Agile, Resilient and Green Paradigms in Supply Chain Management: a Case Study Approach”, Proceedings of The Seventh International Conference on Management Science and Engineering Management. Springer Berlin, 953–968.
- Chauhan, G., Singh, T. 2012. Measuring Parameters of Lean Manufacturing Realization. Measuring Business Excellence, 57-71.
- Machado, A., Catia, M., Annibal, S. 2014. Lean Healthcare Supply Chain Management: Minimizing Waste and Costs. Journal of Management & Production, 5, 4.
- Bai, C., Sarkis, J., Dou, Y. 2015. Corporate Sustainability Development in China: Review and Analysis. Ind. Manag. Data Syst. 115 (1), 5–40.
- Srivastava, S.K. 2007. Green Supply Chain Management: A State-Of The-Art Literature Review. International Journal of Management Reviews, 9 (1), 53-80.
- Vinodh, S., Aravindraj, S. 2012. Axiomatic Modeling of Lean Manufacturing System. Journal of Engineering, Design and Technology, 199-216.
- Huang, J., Tzeng, G., Ong, Ch. 2005. Multidimensional Data in Multidimensional Scaling Using the Analytic Aetwork Process. Pattern Recognition Letters, 26, 755-767
- Azar, A., Khosravani, F., Jalali, F. 2013. Soft Operational Research. Industrial Management Organization Press, Tehran, Iran. (In Persian)
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- Seuring, S, & Müller, M. 2008. From a Literature Review to a Conceptual Framework for Sustainable Supply Chain Management. Journal of cleaner production, 16(15), 1699-1710.
- Agarwal A., Shankar R., Tiwari M. K. 2006. Modeling agility of supply chain. Industrial Marketing Management, Vol. 36, 2006.
- Naylor J. B., Naim M., Berry D. 1999. Leagility: Integrating the Lean and Agile Manufacturing Paradigms in the Total Supply Chain International Journal of Production Economics, Vol. 62.
- Anand, G., Kodali, R. 2008. A Conceptual Framework for Lean Supply Chain and Its Implementation. Value Chain Managem ent, Vol. 2, No. 3.
- Womack, J.P. Jones, D.T. 1996. Lean Thinking: Banish Waste and Create Wealth in Your Corporation. New York, NY: Simon & Schuster.
- Vondermebse, M.A., Uppal. M., Huang. S. 2007. Designing Supply Chain: towards Theory Development. International Journal of Production Economics, 100(2), 223-238.
- Safaei, A., Mohamadnejad, Z. 2016. Comparative Evaluatuion between Lean Supply Chain, Agile Supply Chain and Lean/ Agile Supply Chain Strategy. Journal of Executive Management, 3(6). (In Persian)
- Cabral, I., Grilo, A. 2011. Decision Making Models for Interoperable Lean, Agile, Reselient and Green Supply Chains. International Symposium on the Analytic Hierarchy Process. 3, 6.
- Jafarnejad, A., Morovati, A. 2016. Selection Topics in Supply Chain Management. Ketab Mehraban Press, Tehran, Iran. (In Persian)
- Jasti, N.K., Kodali, R., 2014. Lean production: literature review and trends. Int. J.Prod. Res. 53, 1–19.
- Garza-Reyes, J.A., 2015. Lean and Green: a Systematic Review of the State of the Art Literature. J. Clean. Prod. 102, 18–29.
- Marodin, G.A., Saurin, T.A., 2013. Implementing Lean Production Systems: Research Areas and Opportunities for Future Studies. Int. J. Prod. Res. 51 (22), 6663–6680.
- Manzouri, M., Ab Rahman, M.N., 2013. Adaptation of Theories of Supply Chain Management to the Lean Supply Chain Management. Int. J. Logist. Syst. Manage.14 (1), 38–54.
- Martínez-Jurado, P.J., Moyano-Fuentes, J., 2013. Lean Management, Supply Chain Management and Sustainability: a Literature Review. J. Clean. Prod. 85, 134–150.
- Carvalho, H., Duarte, S., Machado, V.C., 2011. Lean, Agile, Resilient and Green: Divergences and Synergies. Int. J. Lean 6 Sigma 2 (2), 151–179.
- Muduli, K., Govindan, K., Barve, A., Kannan, D., Geng, Y. 2015. Role of Behavioural factors in Lean Supply Chain Management Implementation in Indian Miningindustries. Resource. Conserv. Recycle. 76, 50–60
- Vonderembse, M., an Uppal, M., Huang, S.H., Dismukes, J.P., 2006. Designing Supply Chains: towards Theory Development. Int. J. Prod. Econ. 100(2), 223–238.
- Azevedo, S.G., Carvalho, H., Duarte, S., Cruz-Machado, V., 2012a. Influence of Green and Lean Upstream Supply Chain Management Practices on Business Sustainability. IEEE Trans. Eng. Manage. 59(4), 753–765.
- Carter, C. R., Roger D.S, 2008. A Framework of Sustainable Supply Chain Management: Moving toward New Theory”, International Journal of Phisical Distribution & Logestics Management, Vol. 38, No, 5, P. 360-387.
- Pederson, A., 2010A Moral Sustainable Global Supply Chain. Supply Chain Management Review, V. 13, Issue 7. pp. 6.
- Zhu, Q., Sarkis, J. ,Lai,K., 2013. Institutional-based Antecedents and Performance Outcomes of Internal and External Green Supply Chain Management Practices. J. Purchasing Supply management. Vol. 19, pp. 106–117.
- Ahi, P. Searcy, C. 2013. A Comparative Literature Analysis of Definitions for Green and Sustainable Supply Chain Management. Cleaner Production, Vol.52, pp. 1-504.
- Carter, C. R., Liane Easton, P. 2011. Sustainable Supply Chain Management: Evolution and Future Directions. International Journal of Physical Distribution & Logistics Management, 41(1), pp. 46-62.
- Tafreshi, A., Olfat, L., Jahanyar, B., Amiri, M. 2017. Relation Pattern of Lean or Green Supply Chain. Journal of Iran Science Management, 11(44). (In Persian)
- Rajabzadeh Ghatari, A., Keramatpanah, M., Shahroudi, K., Keramatpanah, A. 2015. Comparative Modeling of Supply Chain Using Interpretive Structural Modeling and DEMATEL.Journal of Organizational Resources Management Research, 5(2). (In Persian)
- Olfat, L., Mazrooii Nasr Abadi, E. 2014. A Model for Measuring Sustainability of Supply Chain, Case Study: Mechain Made Carpet Industry of Iran. Vol. 9, No. 33. (In Persian)
- Zhan, Y., Kim, H., T., Guojun, J., Chung, C., L. 2018. Green and lean sustainable development path in China: Guanxi, practices and Performance. Journal of Resources, Conservation and Recycling, 128, 240-249.
- Patri, R., Suresh, M. 2017. Factors Influencing Lean Implementation in Healthcare Organizations: an ISM Approach. International Journal of Healthcare Management, Vol. 10, 1-13.
- Fritz, M., Schöggl, J., Baumgartner, R. 2017. Selected Sustainability Aspects for Supply Chain Data Exchange: Towards a Supply Chain-Wide Sustainability Assessment, Journal of Cleaner Production, 141, 587–60.
- Tajbakhsh, A., & Hassini, E. 2015. A Data Envelopment Analysis Approach to Evaluate Sustainability in Supply Chain Networks. Journal of Cleaner Production, 105, 74-85.
- Jadhav, J. R., S. B., Mantha, S. S. 2014. Development of Framework for Sustainable Lean Implementation: an ISM approach. Journal of Industrial Engineering International, Vol. 10, No. 27.
- Hassini, E., Surti, C., & Searcy, C. 2012. A Literature Review and A Case Study of Sustainable Supply Chains with a Focus on Metrics. International Journal of Production Economics, 140(1), 69-82.
- Prakash, R., Thennaasou, E., Jegan, R. 2017. Lean in Supply Chain Management. International Journal of Innovative Research in Science, Engineering and Technology, Vol. 6, Issue 2, pp. 1-9.
- Lorden AL, Lin SH, Cote MJ. 2015. Measures of Success: The Role of Human Factors in Lean Implementation in Healthcare. Qual Cont Appl Statist, 60(1), 127–30.
- Sobral, M.C., Jabbour, A.B, Jabbour, C.J.C. 2013. Green Benefits from Adopting Lean Manufacturing: A Case Study from the Automotive Sector. Environ. Qual.Manag. 22 (3), 65–72.
- Pampanelli, A. B., Found, P., Bernardes, A. M. 2014. A Lean & Green Model for Aproduction Cell. J. Clean. Prod., 85, 19–30.
- Dickson E, Anguelov Z, Vetterick D, Eller A, Singh S. 2009. Use of Lean in the Emergency Department: a Case Series of 4 Hospitals. An Emerg Med, 54(4): 504–10.
- Kim, C. S., Spahlinger, D. A., Kin J., Billi, J. E., 2016. Lean Health Care: What Can Hospitals Learn From a World-Classautomaker? J Hosp Med 2016, 1(3), 9–191.
- Kundu, G. K., Manohar, B. M. (2012). A Unified Model for Implementing Lean and CMMI for Services (CMMI-SVC V1.3) Best Practices. Asian Journal on Quality, 162–138.
- Panizzolo, R., Garengo, P., Sharma, M. K., Gore, A. 2012. Lean Manufacturing In Developing Countries: Evidence From Indian Smes. Production Planning & Control: The Management of Operations, 769-788.
- Afonso, H., Cabrita, M. 2015. Developing a Lean Supply Chain Performance Framework in a SME: a Perspective Based on the Balanced Scorecard”, Procedia Engineering, 131, 270 – 279.
- Carvalho, H., Azevedo, S., & Machado, V. 2014. Trade-offs among Aean, Agile, Resilient and Green Paradigms in Supply Chain Management: a Case Study Approach”, Proceedings of The Seventh International Conference on Management Science and Engineering Management. Springer Berlin, 953–968.
- Chauhan, G., Singh, T. 2012. Measuring Parameters of Lean Manufacturing Realization. Measuring Business Excellence, 57-71.
- Machado, A., Catia, M., Annibal, S. 2014. Lean Healthcare Supply Chain Management: Minimizing Waste and Costs. Journal of Management & Production, 5, 4.
- Bai, C., Sarkis, J., Dou, Y. 2015. Corporate Sustainability Development in China: Review and Analysis. Ind. Manag. Data Syst. 115 (1), 5–40.
- Srivastava, S.K. 2007. Green Supply Chain Management: A State-Of The-Art Literature Review. International Journal of Management Reviews, 9 (1), 53-80.
- Vinodh, S., Aravindraj, S. 2012. Axiomatic Modeling of Lean Manufacturing System. Journal of Engineering, Design and Technology, 199-216.
- Huang, J., Tzeng, G., Ong, Ch. 2005. Multidimensional Data in Multidimensional Scaling Using the Analytic Aetwork Process. Pattern Recognition Letters, 26, 755-767
- Azar, A., Khosravani, F., Jalali, F. 2013. Soft Operational Research. Industrial Management Organization Press, Tehran, Iran. (In Persian)