Case Study: Applying Lean Techniques at Biyaq Oilfield Services, Oman

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This case study examines the implementation of lean techniques at Biyaq Oilfield Services (Chemical Blending Plant) in Oman. The study explores the application of lean principles to improve operational efficiency, reduce waste, and enhance customer service. The research encompasses a literature review on lean methodologies, an overview of Biyaq Oilfield Services, and a detailed analysis of the current operational processes. The methodology includes both qualitative and quantitative data collection methods, such as interviews and questionnaires, to assess the effectiveness of the lean approach. The findings highlight the benefits of lean techniques in terms of cost reduction, storage space optimization, and improved customer satisfaction. The study concludes with recommendations for further improvements and the sustainability of lean practices within the organization. The project aims to identify the impact of lean approach on Chemical Blending Plant and its effect on the construction of Chemical Blending Plant in Oman. Also, it explores the importance of implementing a Lean approach on Chemical Blending Plant in Oman, benefits of implementing a Lean approach to cost effectiveness, and the ways in which construction of a Chemical Blending Plant in Oman will help to provide better service to the customer and ways in which the construction of a Chemical Blending Plant in Oman will lead to the reduction of storage space.
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Improving operations of an Organisation
by using Lean Techniques: A case study
of Biyaq Oilfield Services (Chemical
Blending Plant)
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ACKNOWLEDGEMENT
I'm expressing my gratitude with love and sincerity to them who were associated with me
to accomplish this project work. All the hard work, devotion towards duty and the love or
tolerance which my supervisor has shown I'm grateful to. At the end I want to thank my family
and friends for their involvement and cooperation in my data collection on conducting my
research work on the to undermine the fact related to implementation of Lean approach and its
impact on construction of Chemical Blending Plant in Oman: A case study on Biyaq Oilfield
Services.
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ABSTRACT
The operations which company would be doing should be in order to this lean approach
only if they are making it a flexible and efficient one. So in this current dissertation we would be
studying upon the implementation of lean approach or techniques and what would be its impact
on construction of Chemical Blending plant which is Biyaq Oilfield Services situated in Oman.
As the chemical blending procedures could be defined as to that which is commonly called to as
mixing up of chemicals which are been used so that time and cost could be saved to greater
extent. The research paper would also be signifying different factors that generally is reducing
storage space of the plant of company and also giving better service to the customer as per their
demand. At the same time it would be important to maintain cost of company for the reason this
research paper is essential to recognise the overall work management of Chemical Blending
plant in Oman. Lean approach or technique is mainly withstanding in maximising customer
value creation at the same time it is minimising the wastage in particular company. Like in
Chemical Blending Plants there are maximum level of wastage at many stages of production or
manufacturing. So in order to remove this waste in company it is important to look after various
techniques that should be employed for minimising waste, cost, labour utilization in order to
maximise the profits by giving value to all customers. So if the company is considering the lean
approach then this could be impacting much of the quality of work which employee is doing so
that company is able to achieve its mission and goals. Due to application of lean approach they
could be leading to have good and strong customer base after they are been able to do their
production work in more efficient manner.
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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Overview:..............................................................................................................................1
1.2 Aims and Objectives:............................................................................................................2
1.2.1 Aims..............................................................................................................................2
1.2.2 Objectives......................................................................................................................2
1.3 Rational of the study:............................................................................................................2
1.4 Research problem:.................................................................................................................3
1.5 Research Questions:..............................................................................................................3
1.6 Research Scope and Significance:........................................................................................3
1.7 Structure of dissertation:.......................................................................................................4
1.8 Research Summary:..............................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................1
2.1 Overview:..............................................................................................................................1
2.2 Lean approach:......................................................................................................................1
2.3 Implementing a Lean approach in the Construction of a Chemical Blending Plant:............2
2.4 Benefits of Implementing a Lean approach leading to cost effectiveness in construction of
a Chemical Blending Plant:.........................................................................................................4
2.5 Provision of more Storage Space and better Customer Services due to the application of
Lean Approach:...........................................................................................................................6
2.6 Summary:..............................................................................................................................7
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................1
3.1 Introduction...........................................................................................................................1
3.2 Research philosophy.............................................................................................................1
3.3 Research approach................................................................................................................2
3.4 Research paradigm................................................................................................................3
3.6 Research design.....................................................................................................................3
3.7 Research strategy..................................................................................................................4
3.8 Data Collection......................................................................................................................5
3.9 Sampling...............................................................................................................................6
3.10 Data Analysis......................................................................................................................7
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3.11 Ethical consideration...........................................................................................................8
3.12 Research limitations............................................................................................................9
CHAPTER 4: DATA COLLECTION and ANALYSIS.................................................................1
4.1 Introduction...........................................................................................................................1
4.2 Thematic analysis for primary data collected through questionnaire...................................1
4.3 Thematic analysis for primary data collected through interview method...........................10
4.4 Summary.............................................................................................................................13
CHAPTER 5: CONCLUSION and RECOMMENDATIONS (1400)............................................1
5.1 Introduction:..........................................................................................................................1
5.2 Conclusion:...........................................................................................................................1
5.3 Recommendation...................................................................................................................3
REFERENCES................................................................................................................................4
APPENDICES.................................................................................................................................6
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CHAPTER 1: INTRODUCTION
1.1 Overview:
Lean approaches is mainly originated and inspired by the Japanese style of management
which was carried out in Toyota Production system. The main aim of which is to give the best
quality of products and service to all customers in order to maximise the values of all the
products of customers (Belekoukias, Garza-Reyes and Kumar, 2014). This could be done with
eliminating the cost of storage space, estimated arrival time and then to cut down the delivery
time together all these would then be providing better amount of profits after they have provided
customer service. The operations which company would be doing should be in order to this lean
approach only if they are making it a flexible and efficient one. So in this current dissertation we
would be studying upon the implementation of lean approach or techniques and what would be
its impact on construction of Chemical Blending plant which is Biyaq Oilfield Services situated
in Oman. As the chemical blending procedures could be defined as to that which is commonly
called to as mixing up of chemicals which are been used so that time and cost could be saved to
greater extent.
So if these type of chemical blending companies or plant should be using the most
effective lean techniques into their production so that their cost and time could be saved. The
research project would be considering the implementation of lean approaches and its impact on
the construction of Chemical Blending Plant in Oman (Bortolotti, Boscari and Danese, 2015). As
they would be saving out their cost which then they are to invest in building up new plant within
the country. Biyaq oilfield was established in the year 1996 and now is one of the major oilfield
service in Oman which is specialised in supplying chemicals, engineering service and manpower
within other oil companies of country. The mission of company is to become the leading
chemical solution providing firm in terms of oil and gas industries working with great team,
reliability, integrity and maximum customer satisfaction. Along with this mission and core
competency company is been able to increase its client base throughout the country which is also
providing innovative solution to market of country (Dobrzykowski, McFadden and
Vonderembse, 2016).
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1.2 Aims and Objectives:
1.2.1 Aims
To undermine the fact related to implementation of Lean approach and its impact on
construction of Chemical Blending Plant in Oman: A case study on Biyaq Oilfield Services.
1.2.2 Objectives
On the basis of the aim that has been constructed the following objectives have been
made that try to suffice particularly to understand the sanctity of the aim. The objectives are:
ï‚· To identify whether implementing a Lean approach would be effective on Chemical
Blending Plant in Oman in increasing the production.
ï‚· To understand the benefits of implementing a Lean approach on cost effectiveness in
construction of a Chemical Blending Plant in Oman.
ï‚· To access whether the construction of a Chemical Blending Plant in Oman will help to
provide better service to the customer
ï‚· To interpret whether the construction of a Chemical Blending Plant in Oman will lead to
the reduction of storage space.
1.3 Rational of the study:
The chemical blending industry is very much important one as it is giving great source of
employment or profits for country especially like that of Oman. As this country is mainly based
on oil, gas and chemicals industry and having majority of income for this industry only. So it
would be important and easy to deal with the present topic which is inspired by improving
operations by the use of lean approach of technique. This would be carrying out the research on
this topic by studying about Biyaq Oilfield analysing what are the issues which could be rising
in the process of production or extraction of oil and chemicals and how it must be sort out. The
topic is important to study and research upon as the industry is most important for the case of
profits and revenue generation for the country like that of Oman.
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1.4 Research problem:
This is important task to identify the problem which is associated with the current
scenario like at the time of implementation of lean approach what are the problem that could be
raised. There are problems which is related to that of keeping up of inventories of company
which in tern would be hampering the manufacturing or production function of firm. The most
important task is to increase the overall productivity of organisation so that they could maintain
profitability via providing better service to their customers. There are also many threats which
company need to overcome like that of increasing demand of customers on worldwide level,
entry of rival firm in market or growth of other current competitors with the use of innovation or
technology as well. So for all these reason they need to implement new and better strategies
which would be effective for their use with which they could also be able to production and then
service which they are giving to their clients.
1.5 Research Questions:
These are the various research questions that have been prepared on the basis of the aim
and objectives that have been taken in grant for the research project:
1. What is the importance of implementing a Lean approach on Chemical Blending Plant in
Oman will it be an ethical approach towards the society and the related industry or not?
2. What are the benefits of implementing a Lean approach to cost effectiveness in
construction of a Chemical Blending Plant in Oman?
3. What are the ways in which construction of a Chemical Blending Plant in Oman will help
to provide better service to the customer?
4. What are the main ways in which the construction of a Chemical Blending Plant in Oman
will lead to the reduction of storage space?
1.6 Research Scope and Significance:
The main aim of this project would be to understand the importance of implementation of
lean approach or techniques and what would be the impact of this on Chemical Blending
industry in Oman. How much effective and important is this lean approach this study would b
including this as well with the basic structure of lean approach which would be leading to higher
profits to that industry. Apart from this there are also many other approaches which firm should
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be implementing in their production and manufacturing plant like that of Just in time approach.
But if we want to know the effectiveness of the lean approach we should be identifying the basic
need and requirement of organisation which is helping in maintaining regular workforce of
company. The research paper would also be signifying different factors that generally is reducing
storage space of the plant of company and also giving better service to the customer as per their
demand. At the same time it would be important to maintain cost of company for the reason this
research paper is essential to recognise the overall work management of Chemical Blending
plant in Oman.
1.7 Structure of dissertation:
Chapter 1: Introduction- this part would be covering outline of the whole dissertation so that
researcher would be able to make out that what he has to do and how the aim or objective of
topic would be met out. This chapter will be including specified details about both topic and the
company on which we would be researching upon. In order to get the general idea about recent
activities that are going on or taking place this chapter is included in dissertation.
Chapter 2: Literature review- the second chapter would be including and allowing us to gain
more deeper knowledge about the topic and that industry or field on which research is going to
take place. This is important in aspect of checking that whether the aims and objectives which
we have set out in the starting of the dissertation is achieving or not. Articles or books that have
been written by various authors would be included in this chapter with laying out their writing in
our own language.
Chapter 3: Research Methodology- this is the third chapter which would b including various
tools and methodologies leading or conducting in current dissertation. Like which data collection
source to be used or how the data would be analysed all these important things must be added
with the chapter of research methodology.
Chapter 4: Data analysis and interpretation- this is the most important and crucial part or
chapter which is leading or answering to questions or research aim and objectives that are been
made. All the collected data like in the form of secondary and primary should be analysed and
interpreted so that conclusion could be drawn.
Chapter 5: Conclusion and Recommendation- the last part which is telling us what we have
concluded like whether result that is coming is in favour of the objectives that were set or not.
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This would also be including the recommendation part which is including the changes that could
be made while conducting the next research on same topic.
1.8 Research Summary:
All the things which are important for the topic which we would be learning about which
is implementation of Lean approach which would be impacting operations and its management
in Chemical Blending service company of Oman. So for this study we have taken Biyaq Oilfield
Services which is one of the biggest firm in country which is providing both oil and gas to its
clients. Majorly we would be discussing about what are the impact of implementing this lean
approach within firm and how would this be helping us or what are the other factors which is
related to this particular technique. The main aim of company would be providing better tools
and techniques to customers which would thus be helpful for them in order to maximise profits
of firm. The cost reduction that is related to many operations including to labour, storage and
production or sales need to be cut down so that amount is again reinvested to open new plant in
same country. All these problems would be studied and then solved in this particular research
paper which is focusing on Chemical Blending plant in Oman.
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CHAPTER 2: LITERATURE REVIEW
2.1 Overview:
Literature review would be that part of any dissertation paper which is including all
identification of problems, their impact and how would that be resolved as per analyse of the
topic. The themes which would be containing study of various writers and authors of book that is
concentrating upon topic and problems or solution which is related and directly linked to
Chemical Blending plants of Oman. This chapter is one of the most important and necessary one
which is inculcating all relevant information facts and figures that is mainly related to our topic
so that we could be able to understand in better terms. This particular segment would be
signifying the implementation of lean approach in Chemical Blending plants and its impact on
production as well as on overall performance of organisation.
2.2 Lean approach:
Lean approach or technique is mainly withstanding in maximising customer value
creation at the same time it is minimising the wastage in particular company. Like in Chemical
Blending Plants there are maximum level of wastage at many stages of production or
manufacturing. So in order to remove this waste in company it is important to look after various
techniques that should be employed for minimising waste, cost, labour utilization in order to
maximise the profits by giving value to all customers. As according to Maltese et al., (2017) it
was included that lean approach would be most beneficial for all type of manufacturing and
production firm like that which are dealing with oil and gas products. All the products and
services which are to be offered to customers by company should be as per their requirements
and need then only company could be earning higher amounts of profits. This could be done in
order to provide the customers with lower level of cost and best priced products that too at higher
and good quality.
Sajedeh et al. (2016) said that it is required by all the production company that they are
analysing all tools and techniques that could be applied and then deciding over them which one
to choose. It was looked up as there lean method would be the best one that is always helping
manufacturing firms to improve their operations and process of company. Some of the benefits
which this method is having after its implementation would be like that of cost effectiveness,
better quality, flexibility and speed in performing all the work in stipulated time. There are also
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various types of lean methods which could be included by firm like that of Just In Time, Kaizen,
Value Stream Mapping (VSM) and Total Productive Maintenance (TPM). As it is seen in this
contemporary world that market and firms are very much competitive as they are having pressure
to pursue operational excellence with improvement into their performance. Reduction in cost and
providing higher level of quality of work would be essential as per the part of all companies so
they could be achieving this through efficient use of lean approach. Mainly all the manufacturing
organisation of world in current market would be employing this technique in order to gain the
competitive advantage over the other firms in same market.
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