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Contents

1. Executive Summary. 4
2. Introduction. 4
3. Background of Organization. 7

3.1 Vision and Mission of the Organization. 7

4. Background of the Industry. 7
5. Problem Statement 8
6. Framework for the Analysis of Problem Statement 8
7. Additional Framework for Analysis of the Problem Statement 9
8. Impact of Problem on Sohar Aluminum.. 10

8.1 People. 10

8.2 Financial Aspect 10

8.3 Marketing. 11

9. Best Systems Approach suits the Problem Statement 12
10. Critical Review of Literature. 12

10.1 Pareto Analysis. 14

10.2 Fishbone Analysis. 15

10.3 McKinsey 7s Framework. 17

11. Total Quality Management Model 19

11.1 Advantages of Total Quality Management Model 20

11.2 Disadvantages of Total Quality Management Model 21

12. Recommendations. 21

12.1 Training to the Employees. 21

12.2 Monitoring and Controlling of different activities. 22

12.3 Recycling System.. 23

13. Conclusion. 23
14. Personal Reflection. 25

14.1 Introduction. 25

14.2 Reflection Discussion. 25

14.2.1 Reflection on Discovery. 25

14.2.2 Reflection on Theory. 27

14.2.3 Reflection on Personal Development 29

14.3 Conclusion. 30

1. Executive Summary

The aim of the report is to analyse the challenges of waste management that Sohar Aluminum is facing and the impact that it has on the profitability and efficiency of the organisation. The analysis revealed that the application of Fishbone analysis along with Pareto analysis can be useful for Sohar Aluminum in terms of not only identifying the problem but also implementing the necessary solutions. Other models and theories are also analysed on the basis of their usefulness and with their limitations as well so that these will provide the information regarding the waste management for Sohar Aluminum which includes, Lean management theory, and Mc Kinsey 7s framework. These models and theories are analysed in the light and views of different authors so that it can be justified the impact of waste generations on the overall organizational growth and productivity. This theories and models are also supporting the cost effectiveness and reduction with the efficient management of the waste by the organization.  As a result of that it is important for the policy makers of the organisation to take adequate measures with respect to improving the capabilities of Sohar Aluminum in the future. The recommendations that were provided to the organisation were related to providing training to the employees along with conducting constant monitoring of the activities that are carried out with respect to refining in order to identify the amount of waste generated from the operations. Another recommendation which can also bring change in the Sohar Aluminum is the recycling process and procedure of the waste which will be helpful in eliminating the waste with its proper utilization. As it will increase the performance and contribution of the employees towards the waste management and its reduction and also it will also increase and improve the overall productivity and performance of the Sohar Aluminum.

2. Introduction

The aims and the objectives of the report are related to analysis of the issues and challenges faced by Sohar Aluminum and the impact that it has on the effectiveness and profitability of the organisation. This report is basically prepared to analyse the root cause of different issues and problems faced by Sohar Aluminum with respective and possible tools and techniques which will provide the solutions and outcomes of that problems and issues. The context of the discussion in the report is related to the long-term growth and the development of Sohar Aluminum within the Petroleum industry of Oman. The report will cover different aspects such as the background of the organisation along with the description of the problem and the ways in which the identified issues and problems can be solved.

Thematic analysis will be used in order to undertake analysis of the report which includes Fishbone analysis, Pareto analysis, and McKinsey 7S framework. Fishbone analysis is also known as root cause analysis which is used and implemented by the organisations to find out and identify the main causes and reasons of issues and challenges faced by an organisation. This is the most effective tool to analyse the causes and reasons of the generation of the waste produced by Sohar Aluminum. Similarly, Pareto analysis is another tool and techniques which is performed by an organisation to make decisions against the problems. It is basically based on 80/20 rule which describes that if any organisation works and resolves 20% of issues and problems, then 80% of the issues and problems will be directly resolved with this methodology. It is a decision making techniques which contributes a possible and best solution of the problems. However, McKinsey 7S framework is model which comprises of internal environment and culture. It demonstrates as the internal environment of an organisation plays an important role for the growth and development of the organisation. Hence, McKinsey 7S framework helps in maintaining the effective communication in the organisation and contributes in motivating the internal employees of an organisation so in this way the organisation can increase it performance and productivity which leads the organisation towards excellency. Moreover, a theory is also discussed and presented which is named as Lean management theory, this theory focuses on the lean manufacturing and production which is the best way to reduce and eliminate the generations of waste from the organisation.

Therefore, these all models, theories, tools and techniques are discussed with their usefulness towards the management and minimization of the waste which is formed in the organisation. The usefulness and practicality is proposed in this report so that Sohar Aluminum can implement these models and techniques into its organisation to minimize the generations of waste. Along with the usefulness, the limitations and criticism of these model, theories and techniques are also projected in this report so that Sohar Aluminum will know the weak areas and defects in these model and tools. These all tools, techniques and methods of analysis are basically presented to increase the growth, performance and productivity of Sohar Aluminum towards the efficiency and effectiveness. This kind of analysis will be based on the development of different themes and patterns regarding the issue that will be raised and discussed within different sections of the report. The concluding section is provided summary of the findings that will be obtained through the analysis in different sections. Different suggestions and recommendations are also projected for the Sohar Aluminum so that it will be able to reduce the generations of waste, able to manage the waste and maintain its sustainability with improved performance and productivity of the organisation. The recommendations include the training of the employees which should be given by the HR department of Sohar Aluminum so that the employees will learn the efficient way of reducing the generations of the waste and the management of the waste as well. Secondly, another recommendation is the monitoring of the system which will be conducted by the Quality control department of Sohar Aluminum, which will be benefited for the overall organisation because the proper monitoring system will control the manufacturing and production which will not be producing the generation of waste and will be contributing towards the goal achievement. Lastly, the recommendation which is also helpful for the Sohar Aluminum is the recycling or the reusing system of the waste which will be looked after by the Production department of the Sohar Aluminum. The recycling system of the generations of waste will bring the sustainability and improved performance of the organisation along with the increased value of the products of Sohar Aluminum. The reduction and management of waste is also helpful in reducing the cost of the operation so the implementation of the analysis and recommendation will also provide Sohar Aluminum the cost benefit which will be contributing towards the overall organisational growth and development.

3. Background of Organization

3.1 Vision and Mission of the Organization

The vision of the organization is to become the best in the industry by developing and maintaining high quality standards within health, safety and reduction of environmental footprints. On the other hand, the mission of the organization is to bring wealth, prosperity and growth to the Al Batinah region with the help of achieving excellence and ownership. The organization intends to achieve its mission on the basis of improving the efficiency of its overall performance in the long run (Sohar-Aluminum, 2018). On the basis of the mission and the vision that have been illustrated with respect to the operations of Sohar Aluminum, it can be stated that the major aim and the purpose of Sohar Aluminum is to make sure that it is in a position to contribute effectively towards promoting economic growth and the development of Oman in terms of manufacturing of aluminum.

4. Background of the Industry

The aluminum industry in Oman is on the rise with the constant increase within the capacity of the organizations that are operating in this particular industry. One of the major contributing factors related to the growth and the development of aluminum industry in Oman is concerned with the increase in the demand of construction industry which has subsequently resulted in causing rise to the demand of aluminum. In order to meet the increasing demand, there has been an increase in the amount of aluminum that is being imported (Al-Circle, 2018). One of the main key evidence related to the increase in the demand of aluminum industry in the Oman is increase in the number of organizations along with the rise in the level of competition.

Further increase in the development of aluminum industry in Oman can be evaluated through increase in the interest of the sponsors in the industry that are further contributing towards the development of aluminum industry in the country (Muscat-Daily, 2017). Furthermore, the development of aluminum industry in Oman is also expected to result in increase in the creation of job opportunities for the local people which is further expected to increase the contribution of this industry towards the economy of Oman Keeping into view the constant increase in the growth and the development of the aluminum industry in Oman, it can be stated that Sohar Aluminum can use this trend to create a competitive advantage for its products and services in the long run (Oman-Observer, 2018).

5. Problem Statement

The main problem that has been identified in relation to the operations of Sohar Aluminum is related to generation of waste especially within its refining activities. Constant increase within the level of waste is expected to result in increase in the cost of operations of the organization along with the increase in the level of waste that is generated from its operations. One of the tools that can be used for the purpose of dealing with the specified problem is fishbone analysis. The use of fishbone diagram would not only be helpful in terms of identification of the problem but would also be helpful in terms of analysis and identification of the solution linked with the problem which is related to generation of waste within the operations of Sohar Aluminum.

6. Framework for the Analysis of Problem Statement

The problem that has been identified for Sohar Aluminum is primarily related to management of waste that is generated through the activities related to refining within the organization. The problem of waste management has been identified as significant considering the fact that it results in increase in the cost of operations of the organization along with causing environmental issues and concerns. According to Ludwig, Hellweg and Stucki (2012), waste management issues within an organization are generally related to the challenges associated with the generation and the management of waste from the manufacturing and the production activities. One of the challenges related to waste management is that it results in increase in the overall cost of operations of the organization (Ludwig, 2012).

The problem analysis tool that has been identified as appropriate is Fishbone diagram. It is one of the most widely used techniques and are linked with different issues such as when, where, why, how and so what regarding different issues and problems. These issues regarding a particular problem are raised until a potential cause is recognized and the consequences are investigated with respect to each category.

Fishbone analysis in relation to the issue of generation of waste within Sohar Aluminum can be applied in the form of identification of the cause of waste along with analyzing the impact that it has on the overall productivity and efficiency of the organization. Evaluating these issues would be important in terms of taking necessary steps to deal with the challenges associated with it. The aspect of where would be related to identification of the places and processes where waste is generated within the operations of Sohar Aluminum. When is related to the specific point of time at which the waste is taking place. The aspect of why would be concerned with the reason behind the increase in the level of waste; whereas, how is related to the ways in which waste is generated. In addition to that, so what is concerned with the impact that waste within the refining activities at Sohar Aluminum has on the overall efficiency of the operations of the organization.

7. Additional Framework for Analysis of the Problem Statement

Considering different aspects involved in the fishbone analysis, it can be stated that the application of this tool would be important in terms of undertaking detailed evaluation and understanding with respect to the issue of waste identified within the operations of Sohar Aluminum. The other problem analysis tool that has been identified as important for Sohar Aluminum is Pareto analysis. According to Kaliszewski (2012), Pareto analysis is a kind of tool which is used to identify different courses of courses that are needed to be obtained for the purpose of achieving solutions to a particular problem. One of the benefits associated with the application of Pareto analysis is that it provides demonstration regarding the benefits associated with different kinds of actions which makes it useful in terms of identifying and implementing the most effective course of action and direction. The course of action that is implemented is the one that is considered as most beneficial and valuable for an organization in a particular situation (Kaliszewski, 2012).

Pareto analysis can be applied in the case of Sohar Aluminum by means of identifying different possible solutions that can be applied to the problem of waste generation and applying the solution that can provide maximum benefit without incurring significant cost. However, one of the challenges that would be required to be taken into consideration by the policy makers of Soha Aluminum while applying Pareto analysis is to conduct close analysis and evaluation regarding a particular solution before applying to the problem of waste management.

Theory of lean management can be linked with the need of waste management at Sohar Aluminum. According to Radnor, Holweg and Waring, J. (2012), practices that are carried out with respect to lean management are directed towards improving the efficiency of the organization and continuously improving its efficiency (Radnor, 2012). Furthermore, it is stated by Gowen III, McFadden and Settaluri (2012) that the implementation of the concept of lean management results in optimizing different processes that are being carried out within an organization (Gowen III, 2012).

8. Impact of Problem on Sohar Aluminum

Detailed analysis of different ways in which increase in the level of waste generated from the operations and activities of Sohar Aluminum would affect the operations of the organization is illustrated below

8.1 People

The problem related to waste management within the refining activities is expected to result in decline in the overall performance of the organization which would also have a detrimental impact on the performance of the employees. As a result of that, it would be important to provide these employees clear instructions regarding the significance of minimizing the ratio and the level of waste created within refining practices and activities of Sohar Aluminum. Furthermore, the persistent nature of this problem would result in leaders and the decision makers finding it difficult to manage the efficiency of the performance of the organization in the long run. In addition to that, the problem of waste management would also result in lack of ability of the organization to work in a creative and innovative manner. According to Closs, Speier and Meacham (2011), increase in the amount of waste that is generated from the operations of a firm eventually results in having a detrimental impact on the capability of a firm to work in a creative manner (Closs, 2011).

8.2 Financial Aspect

One of the benefits that will be achieved through the application of the proposed solution is that it will result in decline in the cost of operations of a firm which would ultimately result in improving the financial performance of the organization. By doing so, Sohar would be in a position to make substantial investment in different kinds of profitable business ventures. According to Jabbour, De Sousa Jabbour, Govindan, Teixeira and De Souza Freitas (2013), effective implementation of waste management practices results in decline in the cost incurred by organizations which ultimately results in improving its overall profitability (Jabbour, 2013). However, it is argued by Guerrero, Maas and Hogland (2013), that the role of policy makers and the decisions that they undertake play an important role in terms of dealing with the issues related to management of waste (Guerrero, 2013).

However, it would be important for Sohar Aluminum to make substantial investment with respect to increasing the efficiency to reduce the amount of waste generated from the operations. As a result of that, it is expected that the need to make investment in this respect would result in increase in the cost of operations of Sohar Aluminum at least in the short run. However, the future profitability of the organization in relation to dealing with the issue of waste management would be largely dependent on the effectiveness with which investment is being made. According to Zurbrügg, Gfrerer, Ashadi, Brenner and Küper (2012), substantial investment needs to be made by organizations with respect to improving the efficiency of the operations and minimizing the overall amount of waste (Zurbrügg, 2012).

8.3 Marketing

In case of generating extensive waste, it is feared that Sohar Aluminum would find it difficult to market its products and services mainly because generation of waste would result in loss of goodwill of the organization which would have a negative impact on the effectiveness and the success of the marketing activities of the chosen organization. In addition to that, the increase in the cost of activities and operations as a consequence of waste generation would have a negative impact on the effectiveness with which Sohar Aluminum would carry out its marketing activities. According to Weerawardena and Mort (2012), goodwill of an organization has a significant impact on the effectiveness of the marketing activities and the benefits that the organizations intend to achieve through it (Weerawardena, 2012).

On the other hand, implementation of the appropriate solution would be helpful in improving the efficiency of the marketing activities carried out by Sohar Aluminum. This is because Sohar Aluminum can promote the improvements that are brought about waste management activities to improve the overall efficiency of its activities and operations in the future. Therefore, it can be stated that Sohar Aluminum can undertake marketing and promotional activities directing towards communicating the ways in which it has been able to enhance its efficiency. According to Boone, and Kurtz (2013), firms can carry out advertising and marketing campaigns to promote the effectiveness of their services in order to attract customers towards their products (Boone, 2013).

9. Best Systems Approach suits the Problem Statement

The main problem of Sohar Aluminum is the generations of waste which is creating in the refining process and that’s why it is essential to solve this problem with any system approach because the lack of waste management is directly affecting the overall performance and productivity of Sohar Aluminum. The systems thinking is one of the effective approach and model to identify the problem and provide the solution of that generated problem. The systems thinking ensures to find out the factors which are basically leading towards any problem or issue generation. It is basically composed of some elements, includes, input, processing, output, feedback, and control components. It works directly with the analysis of the problems and their solutions. However, Sohar Aluminum should also work towards the systems thinking which will be beneficial in eliminating the waste and for the management of waste. When the problem is dealt with the proper systems, the organizational performance and productivity will also increase in the manner (Flood, 2010).

10. Critical Review of Literature

Nowadays, many organisations produce huge amount of waste and they are not be able to manage these waste which is a big flaw in the operations of these organisations. The management of waste creates a positive and important aspects towards the organisational productivity because if an organisation starts managing and controlling it all waste then they will be able to reduce their cost which is actually increasing with the increased amount of waste. However, the reduction in cost will be benefited for the organisations as it will create more revenue and profitability for the organisation. Basically, the waste management process is very effective for nay organisation in terms of productivity and profitability. So, if the organisations try to control their waste management then they will be having revenue as additional source (Lu, 2006).

Managing the waste has become a crucial issue and problem of the environment. According the Curran (2012), the study illustrates that how the different analysis can be followed and implemented to achieve the contributions and influences towards the ‘Zero Waste’ in the industrial networks and systems. Organisations should make a five year plan or project in which they should choose an appropriate analysis which performs to eliminate and reduce a waste to a zero degree. Zero waste is basically a conception of eliminating and reducing the generations of waste to a level zero by applying different modern analysis and by challenging traditional analysis. The purpose of zero waste will be contributing and influencing its positive effect and consequences on the performance of the organisation. The findings shows that how industrial systems and networks aim for the vision of zero waste through modern techniques and analysis (Curran, 2012).

According to Pongrácz (2014), it defines all the description and conception of waste management as it needs basically a system which ensures all the proper procedures and effective activities of managing the waste in to the organisation. However, waste is something which should be managed as a continuous process for the efficient functions. This study had constructed with different efforts and struggles to help out towards the management of waste and its impact on the environment. Sohar Aluminum can also be effected through the efficient waste management by increasing the effectiveness of the operational activities which will enhance the growth of its business operation………………………..Continued