Sophia EVERETT and Ross ROBINSONE
Recently, the entry of new players has prompted significant restructuring in the Australian coal market with value migrating away from the existing fragmented, traditional…
Abstract
Recently, the entry of new players has prompted significant restructuring in the Australian coal market with value migrating away from the existing fragmented, traditional production/export model characterised by competing operators generally using 'common user' infrastructure facilities to new, fully integrated supply chains creating a multi-tiered production-consumer framework.
This paper argues that not only are coal markets restructuring but they are doing so within the framework of a significant paradigm shift towards efficiency-seeking and efficiency-driven mechanisms. Value innovation and a deregulated market are enabling operators to enter the industry seeking and implementing end-to-end control of the supply chain - and, in so doing, capturing the significant gains of integration.
This paper explores these changes within the framework of integrative efficiency - a product of end-to-end control by a single party, derived from a number of companies, or chain elements, working cooperatively rather than competitively, or a single operator vertically integrating the chain from point of production to point of consumption to capture and deliver significantly higher value. The paper focuses attention on this paradigmatic shift in a brief though detailed case study of a major new industry entrant into export coal chains from the rapidly developing Galilee Basin in northern Queensland. It examines the dynamics and implications of this shift in the context of chain efficiency and value innovation
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Premaratne Samaranayake, Michael W. McLean and Samanthi Kumari Weerabahu
The application of lean and quality improvement methods is very common in process improvement projects at organisational levels. The purpose of this research is to assess the…
Abstract
Purpose
The application of lean and quality improvement methods is very common in process improvement projects at organisational levels. The purpose of this research is to assess the adoption of Lean Six Sigma™ approaches for addressing a complex process-related issue in the coal industry.
Design/methodology/approach
The sticky coal problem was investigated from the perspective of process-related issues. Issues were addressed using a blended Lean value stream of supply chain interfaces and waste minimisation through the Six Sigma™ DMAIC problem-solving approach, taking into consideration cross-organisational processes.
Findings
It was found that the tendency to “solve the problem” at the receiving location without communication to the upstream was, and is still, a common practice that led to the main problem of downstream issues. The application of DMAIC Six Sigma™ helped to address the broader problem. The overall operations were improved significantly, showing the reduction of sticky coal/wagon hang-up in the downstream coal handling terminal.
Research limitations/implications
The Lean Six Sigma approaches were adopted using DMAIC across cross-organisational supply chain processes. However, blending Lean and Six Sigma methods needs to be empirically tested across other sectors.
Practical implications
The proposed methodology, using a framework of Lean Six Sigma approaches, could be used to guide practitioners in addressing similar complex and recurring issues in the manufacturing sector.
Originality/value
This research introduces a novel approach to process analysis, selection and contextualised improvement using a combination of Lean Six Sigma™ tools, techniques and methodologies sustained within a supply chain with certified ISO 9001 quality management systems.