Organizational Efficiencies and LSOPM Business
Organizational resources need to match up with the organizational requirements and needs to be used efficiently. Organizational efficiency can be described as obtaining maximum output by using minimum resources. Productivity and cost optimization are two
- PDF / 987,290 Bytes
- 41 Pages / 439.37 x 666.142 pts Page_size
- 26 Downloads / 192 Views
Organizational Efficiencies and LSOPM Business
Abstract Organizational resources need to match up with the organizational requirements and needs to be used efficiently. Organizational efficiency can be described as obtaining maximum output by using minimum resources. Productivity and cost optimization are two factors that are relevant and have been elaborately explained in this chapter. This chapter also deals with the concepts of productivity and cost optimization and specifically showcases the results of the primary research in terms of the interrelationship between costs and productivity. Further, this chapter also deals with the relevance of equipment and its efficiency in mining by representing it in the form of maintenance, equipment availability, and utilization. Keywords Productivity and cost optimization · Mining equipment efficiency · Equipment availability and utilization
3.1 Introduction Operational excellence is not a separate concept, showing how to run the business to achieve the success envisioned by the people in the business (Chevron Corporation, 2010). Operational excellence results can be continually improved by using a standard approach to systematically identify and close the performance gap (Chevron Corporation, 2010). Athenian Brewery SA, one of the largest companies in Greece, is a role model for other organizations in their region and industry, pioneering initiatives and implementing them to achieve operational excellence (Vrellas & Tsiotras, 2014). Athenian Brewery used the management philosophy of total quality management and total productive management program to drive continuous improvement and focuses on product quality and safety, environmental protection, and employee health and safety (Vrellas & Tsiotras, 2014). Organizations that use modern management philosophies like lean production and six sigma also use models that are divided into many phases, where typically the last phase is the operational excellence phase (Mast et al., 2013). The last phase is a phase that continues after implementation and integration and can be understood as the monitoring and control phase where improvements are continued as new changes occur in the environment due to recent developments (Mast et al., 2013). Operational © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2021 H. Qudrat-Ullah et al., Operational Sustainability in the Mining Industry, Asset Analytics, https://doi.org/10.1007/978-981-15-9027-6_3
69
70
3 Organizational Efficiencies and LSOPM Business
excellence can be achieved if organizations establish, effectively communicate, and periodically assess the requirements (Bigelow, 2002). Management concepts like lean engineering, JIT, and six sigma can help bring in enhancements in operational efficiency, but they cannot eliminate the day-to-day operational costs that arise from various factors contributed to human error. Management in an organization must be aware of all systems and processes to be able to recognize the strengths and weaknesses of the organ
Data Loading...
