Lean Six Sigma and Business Engineering Perspective of Electrical Energy Optimization

Abstract

This paper combined both theoretical perspective of Lean Six Sigma and Business Engineering; and its managerial implementation within electrical energy company in Middle East. The mentioned company is producing nitrogen gas for the supply purpose of oil, chemical and manufacturing industry processes. Integrative part of this company’s strategic objectives refers to profitability improvement and production performance through escalating company profit. In narrowed down objective scope, it refers to the Electrical Energy Optimization. This paper relates the mentioned company’s empirical and managerial implementation with theoretical perspective of Lean Six Sigma and Business Engineering. Quantitative approach of Lean Six Sigma and Six Sigma are capitalized in this paper’s research methodology to identify problem cause. This paper in particular elaborates the scholar view of Hadid et al (2016) on Lean Six Sigma. The mentioned scholar views within theoretical perspective. It investigates the interaction term between Lean’s social practices and technical practices against the performance measures of financial and operations. This investigation relates to the company’s strategic objectives as unit analysis in this paper. Furthermore, the scholar view of Bärenfänger and Steinbuß (2015) view Business Engineering in its Digital form of Business Engineering as a comprehensive method for digital business model design. Subsequently, data results in this paper convey its interpretation results from production division, which is approximately 81.16% of nitrogen gas that is originated from engine design as its problem cause. To conclude, within Lean Six Sigma and Six Sigma, this paper discussion refers to the value of 1.36 that becomes 2.62 ratio. Specific power of production decreases from 1.45 kw/Nm3 into 0.646 kw/Nm3, as originated from the escalating production of the so called highly impact the company performance versus costs incurred.Ultimately, it is harnessing discussion of the theoretical and managerial implication in this paper.