Lean Production, Logistics, and Supply Chain Management at BHP Billiton - Research Proposal Example

AN INVESTIGATION OF LEAN PRODUCTION PRACTICES AT BНР BILLITОN ORGANIZATION (AUSTRALIA) Name Course Professor (Tutor) Institution Date Table of Contents Introduction 3 Problem of the Project Research 3 Purpose of the Research Project 4 Research Questions 4 Project Significance 5 Review of Related Literature 5 Research Methodology 6 Methods of Data Collection and Analysis 7 Possible Limitations with regard to the Method of Data Collection adopted 7 Ethical Considerations 8 References 9 APPENDICES 10 Activity Timetable 10 Introduction BHP Billiton Limited is one of the incorporated companies in Australia with its headquarters in Melbourne. The company was integrated way back in the year 1885 and registered in line with the then existing state laws of Australia - ABN49004028077(BHP Billiton Annual Report, 2013). Since then, the company has played a leading role in the exploitation and management of global mineral resources with presence in over 21 countries across the world. This coupled with over 130 locations and a human resource capital of at least 123,000 people effectively projects the company as a formidable force among the largest producers of minerals world over. According to BHP Billiton Profile (2014) the company has already made serious inroads in the production of oil, gas, iron ore, copper, iron and aluminum. Further, the company aims at enhancing its already unrivalled portfolio to maximize opportunities for quality growth as well as ensure continued customer satisfaction even in emerging economies. It is worth noting that since June, 2001, the company has continued to operate under what is commonly referred to as Dual Listed Company (DLC) Structure. Under this exceptional arrangement the original companies namely, BHP Billiton Limited and its sister BHP Billiton Plc execute their core mandate as a single economic unit. This entity is run by an amalgamated Board and management panel. Though BHP Billiton has also managed to ground its credit rating and plough back excess capital to the shareholders, its main objective remain the mission to reduce both capital and exploration expenditure (Macleod,2013) . Problem of the Project Research According to National Institute of Standard lean is used to refer to the systematic approach involving the conscientious identification and elimination of waste by way of ensuring continuous improvement of processes so as to optimize the degree of product perfection (Kilpatrick, 2013). Further, lean manufacturing seeks to eliminate all identifiable sources of unwarranted wastage in the production process and hence guarantee a quality product for less work (Folk Group, 2009). However, the group warns against the application of lean principles in organizations as a whole advising that there is need to adopt such policies cross-functionally. A combination of various concepts commonly referred to as lean production blocks are preferred by most practitioners who opine that stand-alone tactics are never effective and may even be counter-productive if poorly managed. Purpose of the Research Project Based on the above problem statement, the main objective of this academic study will be to pinpoint the various ways through which mining companies in Australia can effectively adopt and utilize lean production concepts. In coming up with the possible solutions, the specific objectives to be addressed will be: To identify and establish the source of limitations that have harbored the effective implementation of lean production practices among the Australian mining companies. To recommend the best production processes for Australian companies that wish to adopt lean manufacturing practices. Research Questions To adequately address our research objectives we’ll be guided by the following research questions: Has the company’s senior management built consensus on the need to adopt lean production processes? Has the vision towards lean production manufacturing been communicated to all members of the workforce? Does the company have an existing trained team leading the implementation of lean manufacturing processes? How often has the company been reviewing the concepts adopted towards lean manufacturing? Have production related defects been reported in the company? Project Significance The execution of the so called lean production principles across the manufacturing industries in the world remains an uphill task to many companies. Though the concepts are much touted as among the best in matching flexibility and customer focus, most companies remain at cross roads when it comes to determining the applicable adaptive policies in management of production processes (Sanders et al., 2011).The research project will, therefore, seek to not only Identify the source of such drawbacks but also recommend on the most viable solutions for the same. Review of Related Literature Production processes remain part and parcel of any mining industry. The complex web involves heavy logistical work including but not limited to shipping of raw materials, distribution of finished products and even managing the overall workforce. It, therefore, follows that optimum utilization of the limited resources cannot be easily wished away. According to Folk Group (2009) the initial understanding of lean production processes among Australian mining companies has been that the individual lean production blocks can be implemented independently but still achieve positive results. However, this is proving to be untrue. In pursuit of our specific objectives, we will endeavor to adopt an inter-disciplinary approach on critical issues around lean production processes in Australia. We’ll study the available published works as well as government periodicals. This will definitely go a long way in bringing in the much needed economic and social understanding of the various aspects that relate to lean manufacturing processes (BHP Billiton Limited, 2014). On this front, we’ll strive to conceptualize the consequences of adopting such principles whether wholly or singly. Research Methodology Owing to the nature of this research work, we believe it will be best suited to apply survey techniques through the use of questionnaires. This is because, it is practically impossible to interview the entire population and therefore a fixed set of questions would be most appropriate (Nkechi et al., 2012). The interviewees’ responses will then be systematically classified for the purposes of quantitative comparisons as described by Ogbo (2012). The questionnaires will be administered to the prospective as well as existing entrepreneurs to obtain the primary data. Comparisons will also be made with the existing academic works touching on entrepreneurship. The common sources of secondary data that will be included in the study will include but not limited to: newspapers, magazines, periodicals, government records as well as journal articles that touch on the subject of lean production. Methods of Data Collection and Analysis Our main tool of data collection will be through the administration of questionnaires that will be designed for individual respondents. Questionnaires are often considered advantageous for data collection because they are easy to standardize as well as replicate. Additionally, they regularly make use of closed-ended questions that call for brief responses. Moreover, several respondents can be contacted quite easily and quickly hence hastening the process (Saunders et al., 2009). Once the responses are received, suitable statistical descriptive techniques including but not limited to frequency distribution tables and simple pie charts will be applied in analyzing the data. These statistical tools will help standardize that data and consequently bring out the commonest drawbacks facing BHP Billiton Limited in its quest to fully exploit and consequently benefit from lean production practices. Further, the research work will seek to recommend the most appropriate solutions that have rendered the adoption of such practices ineffective in BHP Billiton as an organization. Possible Limitations with regard to the Method of Data Collection adopted According to Bryan and Bell (2007), it is important to note that, questionnaires have a number of limitations when applied in data collection. To start with, lack of one-on-one interaction with the respondent makes it difficult to understand interviewee’s emotional and behavioral characteristics at the time of response. Secondly, there is a possibility of misunderstanding between the interviewer and the interviewee as there is no room for clarifications on information that is perceived as ambiguous. Thirdly, chances of imposition by the researcher are high as the interviewer designs questions on basis of his or her own opinions and thoughts. Besides, as (Gemmell, 2012) observes, there is a real possibility of low response rates as some potential respondents may not bother to take part in the survey. Above all, there are real risks of getting socially anticipated responses based on the respondent’s subjective feelings (Wallace, 2006).   To counter such an eventuality, it would be important to adopt intimate and in-depth interviews where timely illuminations can be made and questions reframed as necessary(Smith, 2008). In addition, such an approach would provide a rare opportunity to include open-ended questions to which respondents have enough room to give their views. Further, such an approach would place the crossexaminer in a better position to gauge the accuracy of information provided on basis of tone and even facial expressions. Ethical Considerations In our research work, we’ll seek comply with all the existing Australian national guidelines on ethical considerations for any research work. In this regard: we’ll take the initiative of introducing ourselves and briefing the respondents on what the research is about; we’ll also notify them of the interview venue in advance; then elaborate on the source of funding and also address any other concerns they may have relating to the study. In addition, we’ll seek to assure the interviewees of their guaranteed confidentiality and individual privacy as they’ll deem necessary. Importantly, we’ll grant the participants leeway to choose the questions to respond to as well as the right to terminate the interview if considered indispensable. Finally, we’ll attach Research Consent forms signed by BHP Billiton Limited and the individual respondents to participate in the interviews. References BHP Billiton (2010). Our Strategy Delivers: Sustainability Supplementary Information KPMG, Melbourne HESLIN1 P. OCHOAU J. (2008) Understanding and Developing Strategic Corporate Social Responsibility Organizational Dynamics, Vol. 37, No. 2 http://www.organizational-dynamics.com BHP Billiton Limited (2014). Value through Performance: Strategic Report. Melbourne, Australia BHP Billiton Limited (2013). Our Shared Values: Annual Report. BHP Billiton annual report 2013 http://www.bhpbilliton.com Saunders, M., Lewis, P. & Thornhill, A. (2009). Research Methods for Business Students. Harlow: Pearson Education Ltd. Bryman, A. & Bell, E. (2007). Business Research Methods. Oxford: Oxford University Press. Gemmell, R. (2012). Socio-Cognitive Foundations of Entrepreneurial Venturing. Case Western Reserve University. Ogbo, A. (2012). The Role of Entrepreneurship in Economic Development. European Journal of Business Management. APPENDICES Activity Timetable S/No. ACTIVITY YEAR (2016) Jan. Feb. Mar. April May June July Aug. Sept. 1 Conceptualization of an Idea 2 Development of the idea into a problem statement 3 Preliminary design 4 Preliminary Presentations(Research Plan) 5 Implementation of the proposed changes in the research plan and acceptance 6 Material gathering for data collection 7 Data collection and analysis 8 Writing of the final proposal 9 Discussion of the final proposal with the supervisors 10 Amendments of the final proposal in line with supervisors’ advice Read More