Knowledge-based asset management: Waveriders

KNOWLEDGE-BASED

ASSET MANAGEMENT:

WAVERIDERS

B Y A3 C

O N S U LT A N C Y I NC .

EFQM, KNOWLEDGE AND ASSET MANAGEMENT

Criteria 4c. Buildings, equipment,

materials and natural resources are

managed in a sustainable way.

Criteria 4e. Information and knowledge

are managed to support effective

decision making and to build the

organisation’s capability.

WAVERIDERS CURRENT SITUATION • Need to provide high quality and timely information for decision‐

making • No solid or formal system to capture knowledge• Need radical change to tackle growing competition. • Lack of knowledgeable facility manager, unsophisticated emergency

plan, poor fleet management • Incompetent information system management • Reported breach/ unauthorized access to confidential information

and data • Need for log of access to controlled areas• Aiming to enhance working environment and reputation in local

community • Aiming become more cost effective – lifecycle managements and

reduce compensation claims, minimize breakdown costs - better maintenance

KNOWLEDGE MANAGEMENT (KM) • Criteria 4e. Ensure accurate and sufficient information for

key decision makers in a timely manner; Transform data into knowledge that can be shared and effectively re-used.

• Why KM? • Helps deliver sustained achievement – Basis of growth shifts from

natural resources and physical asset to knowledge • KM helps improve communication and minimize rework• Helps acquire and retain intangible assets – can be deployed to

maximize value • Creation of appropriate “no-blame” culture • In house/ on the job training• Implementation Plan – 8 Steps

IMPLEMENTATION PLAN FOR WAVERIDERS’ KNOWLEDGE MANAGEMENT Step 1: Analyzing existing infrastructure Step 2: Aligning KM and business strategy Step 3: Designing the KM architecture, and integrating existing

infrastructure Step 4: Auditing and analyzing existing knowledgeStep 5: Designing the KM team Step 6: Developing the KM system Step 7: Pilot testing Step 8: Leadership and reward structures

FACILITY MANAGEMENT • Process by which an organisation can

maintain, improve, and deliver high quality working environment and support services, both of which are crucial vehicles driving the organisation to meet its core objectives most cost effectively (Alexander 1994; Barrett & Baldry 2003)

• Facility management contributes to increased efficiency, higher quality and ability to reach set targets by ‘gluing’ the different functions of an organisation together (Payne 2002)

LINKING FM TO KM

FM PLAN OF ACTIONS Step 1 1.Build a no‐blame culture 2.Hire a facility manager – of high caliber and

competencies 3.Raise awareness of and the links between

KM and FM 4.Provide support and training required5.Benchmarking against ‘industry best

practice’

FM PLAN OF ACTIONS Step 2 1. Establish an emergency plan encompassing

machine/ technology; external/ natural disaster; and internal areas of concern.

2. Develop an in- ‐house fleet management department: Vehicle leasing, Route calculation software, Speed and fuel management, Adopt GPS system

3. Hire an IT personnel - information system management and collaborate with Micromain in regards to Waveriders’ CAFM

4. Outsource non‐core activities that are little value-adding and are susceptible to demand fluctuation i.e. delivery of large load, etc.

FM PLAN OF ACTIONS Step 3 1. Ongoing support and training for new knowledge

and tools 2. Improve upon the 360 degree feedback 3. Review emergency planning 4. Evaluate and improve fleet management 5. Review and expand IT department? Revision of

software – keep updated 6. Review outsource contracts – performance meet

standard? Competitive pricing

LIFE CYCLE MANAGEMENT • To increase responsiveness to the fast changing pace of current

business environment, we propose the Life‐Costing methodology: Unifying issues facing an asset on the cost basis - an aggregate of the cost

and financial benefits of an asset over its life time, from design to disposal.

4 Steps: Define the system, requirement, and alternatives; cost estimation; discounting and cost profiling; evaluation of alternatives and identification of preferred options

Concerns: issues that cannot be simply reduced to cost (i.e. qualitative aspects) – different cost/ valuation techniques, etc. May provide distorted view/ analysis, but gives a good financial overview

of a project over its life time

RECOMMENDATION Step 1: Establish a lifecycle management policy –

considers prospects from design through to final disposal

Step 2: Hire or train professionals – do the maths; costs VS future financial benefits using (NPV) – evaluate alternatives and identify preferred options

Step 3: For every major or financially significant project, implement an assessment of lifecycle costs EARLY – identifying the most cost effective option & control

Step 4: Feedback to the Knowledge Management System – major cost drivers are updated and the most cost- ‐effective options are always being explored

Health & Safety

EFQM 3e – people are rewarded, recognized and cared for

EFQM 4c – buildings, equipment, materials and natural resources are

managed in a sustainable way.

EFQM 4d – Technology is managed to support the delivery of strategy

Type of Risk Hazardous substances

Display screen equipment

Work equipment and machinery

 Pressure systems

Stress

Harmed person

people work directly in contact with chemicals and dust

people work with computer or other kinds of display screen equipment

all producers all producers all employees

No. of useful policies

3 1 3 3 1

Solution Necessary protective equipments; Annual medical examination; Annual measurement of physical & chemical factors of the working environment

Balance work and rest time; Build lounges;

Select the right equipment for the job; Regular maintenance(Monthly); Training employees;

Select the right equipment for the job; Regular maintenance(Monthly); Training employees;

Regular Workshop; Question Box;Develop new way to instead redundant

RESOURCES UTILISATION MANAGEMENT

Issues

Policies&

Approaches

EFQM

Strategy

ISSUES

• Our assessment shows us there is an inventory issue in Waveriders’. According to financial results the stock value is £1,764,128 in the last year.

• Another issue which Waveriders’ should consider is future market demand increasing and the company should manage sources more effectively.

POLICY“The right material, at the right time, at the right

place, and in the exact amount”

LEAN

• SchedulingAccurate ForecastingCapacity Utilisation

• InventoryOn time deliveryImprove the utilization of raw materials

MRP

• WorkplaceKeep workplace tidyConcentrate the quality

• WorkforceReduce human errorCross functional teams

EDGE

EMPLOYEES DEDİCATED TO GROWTH AND EXCELLENCE (EDGE)

APPROACH“It is a business system that engages employees to make their work

safer and easier”

• Employees were asked to identify problems.• The EDGE Steering Committee determined the priority of the

problems to fix• EDGE teams were created and they found root causes and

proposed solutions• The EDGE Steering Committee determined what suggestions

would be implemented• Employees applied tools such as Kanban

Case study: Hickory Chair Company

Quality Policy«Get things right the first time»

• Helping define and improve our products through involvement with our employees.

• Continously researching improvement to add to the quality of our products

Reward Policy

«Contribution, contribution, contribution»• Any idea which add value will be

remunerated.• Team work will be rewarded.

SUMMING UP RESOURCES UTILISATIONAwareness of inventory is waste.

Employees Dedicated to Growth and Excellence (EDGE)

Start with small risk-free pilot projects.

RESOURCES UTILISATION MANAGEMENT

Issues

Policies&

Approaches

EFQM

Finally

MAINTENANCE

MAINTENANCE

5S JAPANESE MANAGEMENT METHODOLOGY TO COMPLIMENT

MAINTENANCE STRATEGY• Sorting: Unnecessary tools should be disposed or recycled and

separated from useful tools.

• Stabilizing/Straightening out: Equipment and tools should be stored in a safe place; there should be room for all equipment.

• Sweeping/Shinning: Equipment should be cleaned and stored in a well organised manner in a tidy area.

• Standardizing: Maintenance practises should be consistent and standardised.

• Sustaining the practise: Maintenance practises should be maintained and reviewed on a regular basis (every 3 months)

Hubpages (2012)

CURRENT SECURITY ISSUES• No data protections• Stealing information• Breaching company’s confidentiality – (Scenario faced by the consultancy firm)• Access limitations (Who and how access

controls)–Research and Development room –Drawing room (CAD and Designers)–Finance office–Director’s office• Fire and emergency safety systems • Risks of back up facilities and emergency plans

SECURITY POLICY & SOLUTION PACKAGES

Be able to manage the security to a high level

of standard

There are two main types of security packages: - Physical Virtual

PHYSICAL• Software–Firewalls–Antivirus • Security dogs • Security guards •Buildings

•Various areas of the plant•CCTV•Back up policies•Cloud Services

VIRTUAL SECURITY USB Encryption IP Encryption Drawing and CAD Encryption Financial data Company data Company Website

TRAINING PROGRAM• Period of training • Training is required to increase the knowledge

of the software that is to be implemented • Training is required to understand the

encryption of data

BENEFITS OF SECURITY• Secured information transfer from person to

person • Securing information protection from

competitors • Helps avoid duplication of information • Efficiency • Agility

ENVIRONMENTAL

The incorporation of corporate social

responsibility to help all products go green in

Waveriders.

ENVIRONMENTAL ISSUES• Chemical waste• Material waste• Engine utilization

Lower Carbon Dioxide • Recycling

Material Going GreenWaste

ENVIRONMENTAL SOLUTION PACKAGESISO 14000 StandardISO 14001 – Environmental Management Systems This standard gives you guidelines or like a framework it

doesn’t tell how to do it and but tells you what to do!!

ENVIRONMENTAL BENEFITS• Company Reputation • Sustainability • Could reduce costs if gone green • Reputation in counsel

Thank you

Q&A