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The first of its kind, this book will be a useful resource for industry and management professionals as well as scholars and researchers of business management, business economics, operations, entrepreneurship and organizational behaviour, and engineering.
Sanjay Sharma is Professor at the National Institute of Industrial Engineering (NITIE), Mumbai, India. He is an industrial engineering and operations management educator and researcher with over three decades of experience in industry, management, teaching/training, consultancy, and research. A recipient of many awards and honours, he has published five books and papers in journals including the European Journal of Operational Research, International Journal of Production Economics, Computers & Operations Research, International Journal of Advanced Manufacturing Technology, Journal of the Operational Research Society, and Computers and Industrial Engineering. He is also a reviewer for several international journals and is on the editorial board of some journals including the International Journal of Logistics Management.
Abstract. The current global business climate has not been favorable to most firms irrespective of industry affiliation. That condition necessitated companies to adopt operational excellence as a strategy for optimising output with little resources, reducing lead time with the efficient use of assets and employees and avoiding safety and health issues to people and the environment. As a result of the need for operational excellence, many kinds of literature defined the concept based on the context of industry or sector. Industries such as manufacturing, services, oil and gas, mining and so many industries to mention a few, have their unique construct in the definition and therefore causing dilemma on which dimension to hold on to. It is against this backdrop that this paper synthesizes and integrate all the varying dimensions and fuses out similarities, differences and the antecedence of research directions taken on the few mentioned sectors. The paper thus concludes that the unique construct among all the definitions is continuous improvement, cost reduction, quality, time utilization, operational efficiency, staff involvement and output optimisation. However, they varied on risk management, staff health, safety and the concern for the environment, which is unique to oil and gas industry and that can affect the choice of research variables.
Efforts to distinguish the field of operational excellence among industries are rare. This paper, therefore, tried to elaborate on the key issues in the diverse view of operational excellence based on three industries, manufacturing, service and oil and gas with the aim of solving particular research complexities - with concerns to key variables applications. Again is to lay a foundation for theory development in the area of operational excellence that would further enrich literature.
turing practice meant optimizing business processes, broadly production and manufacturing [27]. According to [12], operational excellence is the act of increasing productivity within the minimal lead time flexible while being cost effective for improved quality. In the manufacturing industry, operational excellence is a mechanism for a continuous production improvement at the barest minimum cost for profit maximization. Operational excellence is reaching the height of operational efficiency by doing things better, faster, and cheaper [27]. Operational excellence is the unification of firms' entire operations such as procurement, manufacturing, and after-sales service as an end-to-end system [35]. It has been the purpose of operational excellence to boost production efficiency, improve quality and meet up with market demand. Operational excellence approach is similar to a typical production system combined with customer orientation and the necessity of continuous improvement [17].
Operational excellence is also the current trend not only in the manufacturing industry but also in the service industry. Author [24] in the book see operational excellence as a relatively new phenomenon in many service industries. Operational excellence refers to a significant increase in performance across various aspects including operations [9]. Operational excellence is an approach designed to achieve outstanding production and delivery systems with excellent technical and social aspects [36]. Operations in the service industry, there is no clear production line. As a result, it is influenced by the level variety of offerings and variability of delivery [29]. Opera-
tional excellence is the maximization of value that operations deliver to customers through strong leadership and the application of value-added technologies by maintaining industry best practices [32, 30]. Operational excellence enables sustained delivery of high-quality, cost-effective services and capabilities that provide exceptional customer value [29]. According to [32], Operational excellence is a strategic competitive advantage that leverages on the effectiveness of operations in creating and sustaining customer satisfaction and loyalty.
Operational excellence is the processes of optimizing post-sales services [37]. It is clear that service operations involve synchronization of the various processes involved in service delivery. According to [29], operational excellence is about firm's position in handling costs and risks associated with its service portfolios beyond just operational effectiveness but also for achieving outstanding performance. Operational excellence is expressly about customer satisfaction, cycle time reduction, waste reduction, improvement in quality, cost reduction, yield improvement, and systems development [28]. Operational excellence is the destination of leaders who are passionate about delivering exceptional customer value and outstanding business results [25]. They further maintained that operations excellence is an act of leveraging the power of employees, enacting effective process management, implementing value-added technologies, and installing individual accountability to achieve sustainable success, all on behalf of the customer [25].
Oil and gas operations such as exploration, production, and transportation contain inherent risks: like slips and trips, fatalities or severe environmental incidents [10]. Operational performance in the oil sector cannot, therefore, separated it from risk. So because of these inherent risks, and specific recent incidents in the global oil and gas operations, stakeholders pressure for firms in the industry to perform becomes intense [1, 15]. Pressure such as the need to improve productivity that is faster, safer, more reliable, more resilient and environmentally sound [10] made the need for operational excellence in the sector more than ever before [23]. As result of the pressures, companies resort to operational excellence to meet up with these stakeholders demands. So
Unlike other areas of the economy, oil and gas companies are under tremendous pressure from both regulators and the environment to reduce risk in their operations. So the growing complexity, costs, and risks combine in the oil sector trigger the need for operational excellence to achieve efficiency more than ever before [23]. Hence any strategy aimed at improving operations and supply chain efficiency is expressly managing and minimizing operational risk and uncertainty [8] categorically in the oil industry. These uncertainties have potential effects on firms' assets and operations that cause failure in the internal process, systems, technology, actions of people, or external events leading to disruption in business operations [14]. This confusion might result in production shutdown and loss of revenue. So effective and efficient services help fulfils organizational goals at the lowest cost, least negative social consequence, and least damaging environmental impact [8]. R. Edgeman position coincides with the saying of [11] that any discussion on oil and gas operations cannot go independent of workers safety, community health and the environment.
[4] capitalized on health, safety, and the environment (HSE), quality and reliability. Similarly, according to [6] the oil and gas operations with risks attached, and price fluctuating challenges and costs, the efficiency of operations and safety are crucial to operational excellence in the industry. They further maintained that risks mitigation must be active before the commencement of operations for Lundin to achieve its goal of being a best-in-class operation. 2ff7e9595c
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