Key success factor of lean six sigma implementation in oil and gas industry: Case study in MBU, strategic business unit of XYZ

• Main Author: Kusnadi, Asana
• Format: Conference or Workshop Item
• Language: English
• Published: 2014
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/15956/1/P.pdf; http://repo.uum.edu.my/15956/; http://stmlportal.net/ictom04/TOC.html

Merdeka Business Unit (MBU) is subsidiary of XYZ, Inc in Indonesia.As a global oil and gas company, XYZ, Inc had been implementing Lean Six Sigma since 1990s and cascaded down to its business units gradually.Since its first deployment in 2000, MBU Lean Sigma experienced steady if not unsatisfactory performance looking at the acrrued financial benefit (AFB) only. But with new leadership and governance, it’s AFB rose to MM $ 46 (6 times) compared to average AFB in the past eleven years in 2011, MM $ 206 (30 times) in 2012, and MM $ 392 (57 times) in 2013.Within three years, MBU successfully occupying the top position among other business unit in XYZ,inc on its AFB achievement. This paper presents the strategy in reinventing MBU Lean Six Sigma, its governance, best practices. XYZ’s five component model, will be tested with existing Critical Success Factor developed by Jeyaraman,K. and Teo, L.K (2010) based on manufacturing company practices LSS in Malaysia with more than 80% corresponding factors. Five component model will then be used to analyze MBU LSS implementation and its performance during the period of 2000-2010 and find the root causes. In addition, this paper will outline best practices to revamp LSS implementation in MBU and its Lean Six Sigma Success implementation Model