by M ajor P ractical S olutions T o I mplement E xcellence (B4)

by Major Practical Solutions To Implement Excellence (B4)

Knowledge Management and Asset Management

WaveRiders

Contents EFQM, Knowledge and Asset Management

WAVERIDERS general current situation

KNOWLEDGE MANAGEMENT

ASSET MANAGEMENT

• Facilities Management• Security• Health & Safety• Environmental management• Life cycle management• Maintenance• Resource utilization

CONCLUSION

REFERENCES

EFQM, Knowledge and Asset Management

Source: EFQM (2010)

Criterion 4: Partnerships & Resources

4c Buildings, equipment, materials and natural resources are managed in a sustainable way

4e Information and knowledge are managed to support effective decision making and to build the organisation’s capability

(EFQM, 2010)

WAVERIDERS current situationNo formal knowledge management process for

leveraging knowledgeNo policy/strategy for managing buildingsNo physical security for the assets No maintenance database and planDyes are harmful for the environment and the health

of the workers Fibreglass used in the manufacturing No health or

safety measures regarding it No emergency plan

WAVERIDERS current situationExcessive inventoriesControlling pollution strategyReactive maintenanceNo strategy for life cycle managementNo IT departmentSuppliers not eco-friendlyBoat engine modification for fuelPackaging of accessories and manual not in eco-

friendly plastic bags

WAVERIDERS 3-year plan

KNOWLEDGE MANAGEMENT

Source: Martin-Castilla & Rodrigo (2003) cited in Martín-Castilla & Rodríguez-Ruiz (2008)

4-LEVEL LEARNING IN ORGANIZATIONS

Source: adapted from Sun & Scott (2005)

Individual

LevelTeam Level

Organizational Level

Inter-organizational Level

WAVERIDERS’ current situation in terms of KM

Generating knowledge Generation of knowledge to a certain extent (but no storing)

Storing knowledge No conditions for knowledge management system (formally)

Disseminating knowledge Barriers on dissemination of knowledge among departments Censorship - limitation of information sharing

Applying knowledge Repeating mistakes - no lessons learned especially in NPD

Nonaka’s Knowledge Creation Spiral Model

Source: Frost (2010)

Socialization:Leadership create circumstances for KM (open and free environment)Regular meetingsAbolish reward practicesWeekly workshops for interaction

Externalization & Combination:Database (document experiences, knowledge from NPD, problems and lessons learned) Intranet Subscriptions to journals and websites

Internalization:Application of knowledgeEmbed it in everyday routines

WAVERIDERS current assets Buildings:

HQ (Christchurch) Greenfields Exmouth

Machines/Equipment Computers Office furniture Software Raw materials (wood, fibreglass, etc.) Vehicles Inventory

ASSET MANAGEMENT Facilities Management

Source: Chotipanich (2004)

Facilities services – FM framework

ASSET MANAGEMENT Facilities Management – Action plan

Year 1: Hire Facility Manager and create a facility management plan

(annual and long-term) Create an IT department Outsource not core competencies activities (e.g. cleaning,

mailing, data backup) Space management: Ergonomic interior design and health

and safety issues concerning the raw materials (fibreglass) Create an emergency plan

ASSET MANAGEMENT Facilities Management – Action plan (cont.)

Year 2: Review current property portfolio and perform real

estate management (e.g. Exmouth potential options)

Utilization of Information system and Computer-Aided Facilities Management (CAFM)

Year 3: Consider future actions on Design & Build activities Reconsider long-term facility planning

ASSET MANAGEMENTSecurity

Source: Saint-Germain (2005)

Physical securityAction stepsAction steps to implement physical security in the WaveRiders:1. Fencing along the walls of the company and no unauthorized

entrance until confirmed by any manager inside.2. Putting up CCTV cameras in all the rooms and the production

area for the safety and keeping a check, also in the parking space.

3. Access cards to workers, allowing them access only to places they belong.

4. Increase the lighting in barren parts of the buildings5. Increasing patrolling by security officers especially at night.6. Putting up alarms in case necessary that will notify the nearest

police station.7. Security personnel having control of the main gate. Can keep it

locked/unlocked according to their will. Automatic access.8. Having Fire protective mechanism in the company.

Virtual securityAction stepsScope: strong network securityZero-Knowledge ProtocolAbout the passwords:• Hard to guess• Changed every couple of months• People should also avoid disclosing their passwords

Outsourcing data backup • Contract with service provider

Create IT policy and provide training

ASSET MANAGEMENTHealth & SafetyStep 1: the company writes Health & Safety (H&S)

policy Step 2: the company does risk assessment (identify

risks that might cause harm to people) Step 3: provide training and information about

health & safety to ensure that employees know how to work safely and without risks to health

Step 4: provide welfare facilities to ensure employees well-being

Step 5: make arrangements for first aid, accidents and ill health

ASSET MANAGEMENTHealth & Safety – Risk Assessment Fibreglass Dyes Wood cutting Fire Noise Manual Handling Hazardous Substances (chemicals, fumes, dusts, vapours,

mists, gases, biological agents)

Electricity Stress

ASSET MANAGEMENTEnvironmental ManagementCleaner production system – way of thinking

Hierarchy of waste reduction Integrated approach to design, manufacture and

use of products Product Modification and new product design Beyond your organisation itself – concerns

suppliers and customers as well

Third party audit (ISO 14001) CSR policy

ASSET MANAGEMENTEnvironmental Management - ActionRestructuring of the products’ engine (fuel:

butanol instead of ethanol )(Bevill, 2012).Notify suppliers of raw materials Search for eco-friendly suppliersRecycle raw materials Change packaging material to eco-friendlyChange dyes Offer eco-friendly accessories and cleaning

productsEnvironmental considerations about future

products

ASSET MANAGEMENTLife-Cycle Management

Source: Iribarren et.al (2010)

ASSET MANAGEMENTLife-Cycle ManagementYear 2: Evaluation of the current assets of the company to ascertain the

conditions Document the lifespan of all existing assets based on evaluation data Implement a framework to monitor lifespan and quality of assetsYear 3: Integration of product requirements from customers’ into our system

to ensure customer satisfaction. Commitment to continual improvement of all processes through

regular assessment and appraisals Database that covers all assets location, performance and lifespan

shall be established

ASSET MANAGEMENTMaintenance Poor machine performance

Leads to low profit, loss of production, etc.

Maintenance is important so that: Get reliable and effective plants Gain a competitive advantage Increase the profitability of WaveRiders

Implementation of Total Productive Maintenance (TPM) plan

ASSET MANAGEMENTMaintenance – Action stepsYear 1: Define and Create a database

• Collection of data, timing and recordingYear 2: Measure & Analyze the situation

• Training program• Measurement of overall equipment Effectiveness (OEE)

Year 3: Improve & Control• Methods for minimizing time loss• Focus on the improvements that can be achieved• Application of maintenance policies, replacement

Continuous Improvement and Continuous Training

ASSET MANAGEMENTResource Utilization

Source: Wild (2002)

Basic MRP Structure

Material Requirements Planning

MRP focus on: - Bill of Requirements- Master Production Schedule- Opening Inventory- Opening Capacity- Safety Stock

ASSET MANAGEMENTResource Utilization (cont.)

Implement and master the plan within 3 years

It is believed that will increase inventory turnover by 40%, if it is implemented sucessfully

Once, knowledge management becomes a way of life, then the company can proceed into MRP II.

ASSET MANAGEMENTResource Utilization (Cont.)

Source: Wild (2002)

Manufacturing Resource Planning (MRP II)

ConclusionLimitations

It is suggested that if WaveRiders follow the suggestions and implement the plan they can significantly improve their approaches toward knowledge and asset management and comply with EFQM.

However, certain limitations has to be taken into consideration:

Financial aspects Finance Director has to supervise the entire process

Soft aspects – people resistance to changes Stakeholder analysis All directors be in touch with their teams

References Belvill, K. (2012). Coast Guard, ORNL test butanol in small marine engines, Boat

Building News (online). URL: http://newboatbuildersnews.blogspot.co.uk/2012/02/boat-building-news_22.html (Assessed on 25th April 2012).

Chotipanich, S., (2004). Positioning facility management, Facilities, 22, 13, p. 364-372.

EFQM Excellence Model, (2010). EFQM Publications, Brussels. Frost, A., (2010). Knowledge Management (online). URL:

http://www.knowledge-management-tools.net/ (Assessed on 23rd April 2012). Iribarren, D., Moreira, M. T. and Feijoo, G. (2010). Revisiting the Life Cycle

Assessment of mussels from a sectoral perspective, Journal of Cleaner Production, 18, 2, p. 101–111.

Martín-Castilla, J.I. and Rodríguez-Ruiz, O., (2008). EFQM model: knowledge governance and competitive advantage, Journal of Intellectual Capital, 9, 1, p. 133-156.

Saint-German,R. (2005). Information Security Management Best Practice Based on ISO/IEC 17799, Information Management Journal, 39, 4, p. 60-66.

Sun, P.Y.T. and Scott, J.L., (2005). An investigation of barriers to knowledge transfer, Journal of Knowledge Management, 9, 2, p. 75-90.

Wild, R., 2002. Operations management: text and CD-ROM, 6th ed. London: Continuum.

Thank you for your attention

Q & A