An Impact of Lean Supply Chain Practices in Oil and Gas Sector in Sultanate of Oman – A case study

Abstract

The oil price fluctuation in the Oil and gas sector globally and even in Oman caused serious financial issues followed by COVID 19, which affected the country's economy. Therefore, all oil and gas sectors are aim to improve the supply chain performance to minimize the effect of oil drop by saving cost, minimizing waste, increasing revenue, and simplifying processes through implementing lean practices in the supply chain in the oil and gas sector. This paper aims to study the impacts of lean supply chain practices on supply chain performance in the procurement department in Oman's oil and gas sector. Also, a key focus is to find out the effect of lean adoption on both supply chain performance and financial performance and its effect directly or indirectly, study the main challenges of implementing lean in the supply chain, and the benefits of that adoption. A Qualitative semi-structured interviews and a quantitative survey were conducted in a Oman based oil and gas sector. Descriptive statistics, frequencies, inferential analysis, and correlation analysis were done in this research which assists in finding out lean impacts on supply chain performances and financial performance and the relationships between them are analyzed and the results are recorded.   The result concludes that value stream mapping directly affect supply chain performance, delivery performance. In addition, other supply chains and financial performance indirectly affect lean adoption which is found based on the statistical tests and its analysis.