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SCG Innovation
LearningOrganization for
Innovation
(())
11 108001080002 586 4104/ 081 857 665002 586 4104/ 081 857 6650
[email protected]@scg.co.th
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SCG Innovation
Agenda
Who is SCG ?What is Innovation ?
Why do we need Innovation ?What is a learning organization?
SCG Paper Case
Building a Learning Organization
- People Management
- Knowledge Managment
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SCG Innovation
Founded in 1913 by King Rama VI
Listed on the Stock Exchange of Thailand since 1976
Historical roots in Cement, and expansions to includeBuilding Materials, Distribution, Paper, and Chemicals
Widely renowned for our Quality & Reliability of our
products, our professional management especially HRdevelopment
Faced the 1997 crisis we need big shifts in thinking in
several areas just to survive & build platform for futuregrowth
CG -Thailands Dominant player in Fundamental Business
Ab SCG
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Distribution
3%
SCG Investment
15%
Building
Materials4%
Cement
21%
Paper
9%
Chemicals
Subsidiaries
29%
ChemicalsEquity Income
19%
About SCG
128,201
148,865
192,395
218,265
258,175
198,089
,000
,000
,000
,000
,000
,000
2002 2003 2004 2005 2006 9M/07
MB
+1.3%+1.3% yy--oo--yy
Operating ProfitNet SaleMB
9M/07: 20,120 MB
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-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2008 2013
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2008 2013 2008 2013 2008 2013 2008 2013 2008 2013 2008 2013
Cement Paper Chemicals Materials Distribution Corporate
Numb
erofE
mplo
yees(p
ersons)
ExpatLocal staff
Thai staff
4,871
5,836
7,9868,385
4,356
5,484
1,5922,089
20%
5%
1,144 1,161
26%
31%
13%
27,386
31,032
7,437
8,077
9%
anpower ro ec on Consolidated companies
SCG manpower will increase by 3,646 employees within next 5 years.
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-
1,000
2,000
3,000
4,000
5,000
6,000
2008 2013
2,
771
4,
972182
395
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2008 2013 2008 2013 2008 2013 2008 2013 2008 2013 2008 2013
Cement Paper Chemicals Materials Distribution Corporate
317
902
870 1
,112
524
1,4
30
860 1,
046
193
462
7 20
18
41 50
50
35
177
27
38
42
68
10 21
um
ero
mpoyees
persons
Expat
Local staff
82%
Within next 5 years, number of expatriates and local staff will increase by213 persons and 2,201 persons respectively.
Consolidated companies
B i U i f SCG
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Paper
Chemicals
Building Materials
Distribution
Business Units of SCG
Cement
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Packaging: PE, PP, PVC, PET
Synthetic Textile and Apparel : PTA
Automotive: PP compound, PE, MMA
PE and PP
Applications
Chemical Products
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Industrial Paper andPackaging
Pulp and Printing &Writing Paper
Paper Products
C t P d t
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Cement Products
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Ceramic TileConcrete Roof Tile
Building Materials
B ildi M t i l
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SCG Innovation
Sanitary Ware
Building Materials
Di t ib ti B i
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SCG Innovation
Distribution Business
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SCG Innovation
INNOVATION
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SCG Innovation
Why we need INNOVATION ?
.. As the Industry Leader, we must always beinnovative, creative, and fast adaptive to change
Investment in R&D: to build own technology &
to develop differentiating capabilities
Innovation in products & services,
process & business model
4 Key Success to INNOVATION
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SCG Innovation
4 Key Success to INNOVATION
ASEAN
INNOVATION
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SCG Innovation
Clear business direction
InnovativecultureStructure&Process
Hum
anResourc
e4 Key Successto INNOVATIO
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SCG InnovationInnovative Culture
Inno Leader 3 lifi i
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SCG Innovation
Inno-Leader 3 qualifications
Change supporter
Change leader
Change management role model
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Internal Communication
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SCG Innovation
Internal Communication
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Clear business direction
InnovativecultureStructure&Process
Hum
anResourc
e
4 Key Success
to INNOVATIO
SCG IP Center
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SCG Innovation
SCGSCG--BUBU
SCG-Technology CENTER
Research InstitutesResearch Institutes
SCG IP Center
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SCG Innovation
Acquire
Capture
Learn
Use
Knowledge
HumanCompetency
Acquire
Capture
Learn
Use
Knowledge
Acquire
Capture
Learn
Use
Knowledge
HumanCompetency
Technology Management
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SCG Innovation
Technology Management
Intellectual
PropertyManagementIP Center
Research &Development
TechnologyRoadmap
INNOVATION
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SCG Innovation
Clear business direction
InnovativecultureStructure&Process
Hum
anResource4 Key Success
to INNOVATIO
HR Management
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SCG Innovation
a age e t
Proactive Recruitment
+
Build Inno-Facilitators
+
Individual development plan
+
Mid Career+
International student internship
+Overseas studying scholarship
+
Transfer Fee Project
????????????????
????????????
Acquire new
IDEAS
Inno Award
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SCG Innovation
Power of Innovation Award
Praise the employees for their
innovations that benefit the
business
1st organized in 2006
300 pieces of work are submitted
The winning team is PIMAI
Inno Award
PIMAI : Thai Ancient Stone Castle
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SCG Innovation
PIMAI:Thai Ancient Stone Castle
PIMAI builds up its product image and also
is recognized as our pride that we can
create an innovative product in the global
competition
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Innovation of SCG Paper 2005-2006
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SCG Innovation
atent Filing
High-strength Carton* (D-Box, Titan)
Premium packaging for fragile/heavy goods
High-strength Carton* (D-Box, Titan)
Premium packaging for fragile/heavy goods
I-Note PaperHigh quality writing paper
I-Note PaperHigh quality writing paper
Zero-speed Detector*
Instrument to detect stoppage ofa low-speed rotating shaft
Zero-speed Detector*
Instrument to detect stoppage ofa low-speed rotating shaft
Hydroponics Culture*Hydroponics Culture*
Technique for growing EucalyptusTechnique for growing Eucalyptus
without soilwithout soil
Small RMC Truck
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SCG Innovation
Redesign the delivery tools
Changing customers perception:CPAC is serious about delivery of small orders
Eliminating the constraints of the typical truck to
serve every customer- unable to go into small city lanes -
an innovation for better services to valued customers
Transportation Management System
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SCG Innovation
Innovation Award from The Nation Newspaper and Accenture
Service Counter (SCG Distributions HVA)
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SCG InnovationHVPSHVPS R&D FocusR&D Focus
Cool roof system (SCG Building Materials HVA)
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SCG InnovationHVPSHVPS R&D FocusR&D Focus
Excella Lava : Natural Look Flat Roof Tiles
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Hybrid Eucalyptus (SCG Papers HVA)
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SCG Innovation
ew hybrid-strain development achieved in 5 years (normally 11 years
roperties:
Resist to plant disease, arid climate
Suitable for plantation on hard soil
Fast growing with higher yield
High wood content for pulp production
HVPSHVPS R&D FocusR&D Focus
gr cu ura ry ng- ar oncre e(SCG Cements HVA)
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SCG InnovationHVPSHVPS R&D FocusR&D Focus
A Innovative Products accelerate drying of agriculturalproducts on concrete floor.
Property: - Shorten drying period of agro-products
Innovation Teams
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SCG Innovation
KMAward &
RecognitionCommunicationPeople System
Intellectual
Property
Innovation TeamsInnovation Teams
5 Key Committees of SCG Innovation
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SCG Innovation
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L e s s o n L e a r n e
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SCG Innovation
CPAC
.
20 .
/
570
BEFORE
AFTER
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SCG Innovation
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SCG Innovation
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SCG Innovation
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SCG Innovation
Eager to Learn
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SCG Innovation
The World is Flat The Globalized World in the twenty-first Century
By Thomas L. Friedman
The BestSelling Non-Fiction Book in the world todayWinner : Financial Time/Goldman Sak/
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SCG Innovation
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SCG Innovation
Summary: Key Success Factors
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SCG Innovation
Right atmosphere to encourage innovation bothstimulating and supportive
Right infrastructure to nurture innovation
Structure and Process People System
Business Link Culture Change
Innovation must be driven byreal business needs
Business targets &
measurements
The critical success factor tocreate right atmosphere
Patent and IP protection
Innovation facilitation
process
Knowledge management
R&D facilities and alliances
Flexible organizational
Recruitment
Evaluation, compensation
and rewarding
Career path
HR development
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SCG Innovation
SCG Paper Case
Building the Learning Organization
- People Management
- Knowledge Management
CG Paper
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SCG Innovation
ulp and Printing
Writing
usiness
Packaging Paper
BusinessPackaging Business
iam Forestry
he Siam Pulp and
hoenix Pulp and Paper
hai Paper
hai Union Paper
-Siam Kraft
-Thai Kraft-Thai Union Paper Industry
-United Pulp and Paper Co., Inc.
(The Philippines)
- Thai Cane Paper
-Thai Container-
- Thai Container Industry
- Thai Container Rajaburi
(1989)
-- Thai Container Songkhla
(1994)
- Thai Container Cholburi (19
Citi Pack
- Nippon Hi-pack
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SCG Innovation
Learning organization: a
group of people continually
enhancing their capacity to
create what they want tocreate..Peter Senge 1990
VDO - - Inspiration
Learning Organization characteristic
It i i ti kill d t
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SCG Innovation
It is an organization skilled at:
creating, acquiring, interpreting,transferring, and retaining knowledge, and
purposefully modifying its behavior toreflect new knowledge and insights.
The Learning Process
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SCG Innovation
All learning processes, for individuals as
well as organizations, involve three stages:
- acquiring information
- interpreting information- applying information for effective
performance
Acquiring Information
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SCG Innovation
Three forms of Acquiring Information: Search
Inquiry
Observation
Successful information gathering requires: Collecting data from diverse sources
Cross-checking findings to ensure validity
Probing for interpretations and implications
nformation Sources(Sources)(Sources)
Learning from Other Companies (BenchmarkingLearning from Other Companies (Benchmarking))
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SCG Innovation
PastPast PresentPresent FutureFuture
(Time)(Time)
( )( )
SelfSelf
InsideInside
utsideutside
Learning PlaceLearning Place
Learning from Other Companies (BenchmarkingLearning from Other Companies (Benchmarking))
Learning fromLearning from
own experiencesown experiences
Learning in other units within company - KM
Learning from ExploringLearning from Exploring
Learning from Experimentation
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SCG Innovation
(Generating Learning)
I. Management Practice
II. Individual Disciplines
III. Information System Tool
- Management Pract ce
I Management Practice
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SCG Innovation
I. Management Practice
Nurture learning in the organization;
Safe place with high trust/low fear atmosphere;
Learning and teachable organization forachieving organizational and personal goals.
Empowerment/Access to external knowledge
- Management Pract ce
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SCG Innovation
I. Management Practice mentor
Inno-People
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SCG Innovation
5 qualifications
Thinking out of the box
Assertive
Open minded
Risk taking
Eager to learn
- Ind v dual D sc pl nes
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SCG Innovation
1.Systems Thinking
2. Personal Mastery
(Personal Vision)
3. Mental Model
4. Shared Vision
5. Team Learning
- Information system tools
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SCG Innovation
1. Knowledge Acquisition Internet,Database
2. Information Distribution email,intranet. teleconference, electronic meeting
3. Information Interpretation
Creating Knowledge Workforce Learning within
Community of practices
u ng or p ace earn ng
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SCG Innovation
Learning through practice in solving
a variety of problems in domain
Community of practices
Constructionism Learning ProgramOperator (60)
Engineer
Supervisor
( Objectives: Learning how to learn
Curiosity to learn for success, projectbase)
Technical Training Center
Compulsory Technical Course and
project base)(Basic/Intermediate/Advance in each
position)
E-learning for compulsory basiccourses
Productivity Improvement Courses
(TQM/TPM)
Self-learning via company web
Base and social event
Sharing best practices Team Learning
Learning with mentors
- Problem Solving team
(factory level/ company level)
. Forum
. Commercial Website
Infrastructure and Organizer
. Space
. Facilitators for Events
Shared visionHigh Quality/Low Cost/Rapid DeliveryKnowledge Community Champion
SCGI
nfrast
ructur
e
g Enviro
nmen
t
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SCG Innovation
K-Community
Goal
Plan Do
CheckAction
Learn before Learn During
Tools:
TPM
QC
Problem-
solving
Etc.
Learn DuringLearn After
HRD-System
Classroom/online
Outside Training
Knowledge System
-library/Web-board
K-Organizing
Team
Computer/Time/PlaceLearning Infra.
Admin.
Supporting StructureBasic Structure
Inside
Knowledge Communities
Business partnership
Knowledge network
Outside
Knowledge
Communities
SC
&Learnin
gE
0-6 m 6 m-1 y 1-3 y
SCG Paper Introduction Program PPW Orientation Program Building the Future Program
Day 1
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SCG Innovation
SCG Paper Introduction Program PPW Orientation Program
TCB Young Talent Program
CB Orientation Program
TCB Plants Orientation Program
Community of Practices for each Business Process
Building the Future Program
Team Building
Basic Knowledge ofPulp & Paper Making
Safety and Occupational Management ()
Introduction to TPM / TQM / ISO9001 / ISO14001 / TIS18001 / OHSAS18000 / GMP and
other management systems
Basic QC / Problem Solving / Basic Safety
JSK & KYT / 5.
General
Courses
Marketing 1 - For all Marketing & Sales
Marketing & Customer Value, Capturing Marketing Insight, Identify Marketing Segment.
Selling Skill Development 1 - For Sales RepresentativeFunctionalCourses
Development Program (For Technical People)
Study of Paper Industry, 11 Modules of Paper Production Process,
En ineerin Courses and Problem Solvin Methodolo ies.
Customer Insight, Understand Customers Business, Value Chain Analysis,
Developing Customized Value Preposition.
Marketing 2 - For all Marketing & Sales
Safety Driving, SCG Paper Product Knowledge, SCG Paper-Branding, Basic Negotiation, Professional
Sales Rep.-Questioning&Listening Skill.
Account Planning&monitoring Prospect Pipeline Management,Advanced Nego. Skil
Selling Skill Development 2 - For Sales Representative
Program for mentors :
Facilitating Skill Development Program
CLPCLP
Mentoring System - Socialization
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SCG Innovation .
. Mentor
Technology
Business Concept
.
Mentee
1. Technology
2
.
MentorMentee
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SCG Innovation
Business Concept
Supervising skill
Proven track record
. Mentor
Mentoring skill
Coaching skill
Counseling
Advising
. Mentor/Mentee (1:1)
.
2.
3.-
Individual Plan
Basic Business Knowledge*
RD/IP Procedure*
RD Training workshop
BU Core Technical knowledge*
Training plan
(Compulsory) provide
by
Agreedobjectives
Ensure output
Agreed timeline
(6 )
Personal PlanProject Base
Researcher attribute
1. Tenacity
2. Eager to learn
3. Creativity/Innovation4. Problem solving
5. Presentation Skill
Readiness for RD job
1. Independent
2. Need some coaching3. Assign more tasks to complete the
project
Project Type: Complexity (Low-----High)
Output Characteristic :Quantity/Quality/Time
D. End of process1. Give feedback
2. Review and Revise Goal3. Express Gratitude4. Database
Counselor
Guide
Motivator
Coaching
Possiblyprovider of
contacts
Personal network
Matter expert
Valuable leader in
project
Advise on work
process
Role model
Mentee Role & Responsibility
Willing to learn
Able to accept feedbackWilling to stretch
Able to identify goal
ob Requisition :echnology Assign
Initial meeting: Boss-Mentor-MenteeDevelop Individual development plan
Prepared by : Boss
Evaluation( Performance
management)Mentor Meet expectation
Mentee Meet expectation
3 months
* by BU
Situation Before Implementing KM
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SCG Innovation
Structure and Process Technology for KM
Value and Practices Learning
Knowledge is power.
Knowledge as an individual
asset. Knowledge Island
Vertical problem-solving
within one company.
Sharing knowledge withinone company
Structure and Process for
KM do not exist.
Simple and Basic tools
emails, mini servers, ms officesdifferent formats
Company
perspectiv
e
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M by Design: Creating the Commitment of Knowledge OwnerM by Design: Creating the Commitment of Knowledge Owner
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SCG Innovation
PulpingMgr.>2
Forestry
Mgr.>2
Paper
Mgr.>2Packaging
Mgr.>2
SCG Papers Main Business Process
TechnicalDevelopment
Committee
MD: Chairman
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- Map
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KM by Design : Acquiring KM Tools
Start: April 30, 2004
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SCG Innovation
KM Program: Quick Place Team Learning of IBM( personalized web portal /collaboration/security/search)
Investment: 1.56 MB
Users: 700 licenses ( Supervisor 4 MGR. Level)3 types of users : general users, registered users, compulsory
Location: 2 Servers/ Bang Sue, Ban Pong (500 Gigabytes)
Service Area: SCG PaperGroup of Companies
Responsible Function: Technical Information and TrainingCenter(Under Supervision and Direction of Technical Committee)
To be an on-line center of SCG Paper technical knowledge;
Objectives of Creating SCG Paper Knowledge System
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SCG Innovation
Objectives for Creating PPB_KS
training materials, standards, patents and best practices from bothinside and outside sources;
To systematically store wide spread technical knowledge into the
same portal for easy access and enhance the knowledge sharing;
To capture the tacit knowledge and disseminate the employees
wisdom in business for enhancing the learning organization andcompetitiveness;
To provide the virtual space for business to use IT to share theirknowledge among the members via CoPs.
Knowledge Update
External
Module Champion Team
KM by Design: Creating KM Process
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SCG Innovation
Knowledge
Database
Modules:
XMR
Technical
Marketing
etc.
USERS
K-Apply
K-Sharing
Module
Community
K- Selection
External
Community
Mentors
Knowledge Retrieval
K-capture
K-captu
torage
TheTec
hnicalP
PB_KS
artedin
March
2004
ions,42
Asso.
0Mento
rs
Structure of KM Committee
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SCG Innovation
Champion
Member
Associate Champion Mentor
Site Administration
Technical Site Administration(Technical Information &Training Center)
Sta
11Champ
34SiteA
dmin.160
Champion
Responsibilities-Champion
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SCG Innovation
Member
Associate Champion Mentor
Site Administration
Foster knowledge creation from internal & outside sources and
validate right and quality information before storing in the site.
Promote members sharing knowledge in the site.
Authorize membership according to the security codes.
Terminate membership for prevention of site violation
and security of information.
Manage the site compliant to the PPB_KS TechnicalExcellences regulations.
Appointed
bypositi
on(11)App
ointed
bypositi
on(11)
Champion
Responsibilities-Associate Champion
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SCG Innovation
Member
Associate Champion Mentor
Site Administration
Manage, coordinate and act as an assistant of champion
to promote members sharing knowledge in the site.. Join the mission of knowledge verification
before storing in the knowledge base.
Appoint
ed
bypositi
on(42)App
ointed
bypositi
on(42)
Responsibilities - MentorsChampion
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SCG Innovation
Member
Associate Champion Mentor
Site Administration
Invited
by
Champ
ion
(unlim
ited)
Invitedby
Champ
ion
(unlim
ited)
Answer the questions in the communitys site in the
area of his/her own specialization and skills withactive response.
Recommend sources of knowledge for extensive study.
Encourage questioning and answering information inthe site.
LevelNumberModule
Mentors in Each Module
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SCG Innovation 57103160
437atistic Tools
3811gineering
21113ergy
6-6vironment
61420oduct Application
143549x - Making
6511ating & Surface Treatment
6410per Making & Converting
527per Recycling Plant
-2121antation & Pulping
5-5ustry
ManagerSupervisor
Champion
y
Responsibilities Site Administration
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SCG Innovation
Member
Associate Champion Mentor
Site Administration
Selectedby
Champ
ion(36)Selectedb
Champ
ion(36)
Create and Manage rooms compliant to the PPB_KS
Technical Excellences Regulations. Ensure knowledge security (assign the role base)
Communicate news,events and screen information
posted on site for champion team.
Champion
proved
approv
ed
Responsibilities Members
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SCG Innovation
Member
Associate Champion Mentor
Site AdministrationApp
lyandtoap
byCham
pion
(Unlim
ited)
Applyandto
byCham
pion
(Unlim
ited)
Add opinion, publish and share their own informationwith others in the community.
Participate the promotional plan of site occasionally.
nal
tional
Responsibilities Technical Site Admin.
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SCG Innovation
Organizatio
Functio
n(1)Organiza
Functio
n(1)
Protect all sites from system breakdown; virus protection,
Manage, allocate and measure the use of server area of each site.
Ensure knowledge security by assigning the passwords in the system Communicate news, common rules and link all sites via Site Admin Site or
champion -meetings.
Provide compulsory courses of PPB_KS to all people in the Knowledge
System Develop the system for maximizing the use of knowledge system.
Technical Site Administration(Technical Information &Training Center)
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http://tcbsn1/ks/web1.htmlhttp://tcbsn1/ks/web1.html
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SCG Innovation
NEWS CenterCentral Site
Technical Excellence Management Excellence
Link Page to 11 Technical Module ) ( Contemporary Management Concepts)
Management Report Productivity Improvement
( XMR ) ( QC. Problem-solving Files )
PPB KS Technical Excellence
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SCG Innovation
PPB KS Technical Excellence
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SCG Innovation
Industry
- Technology Outlook
- Customer Profile
- Pulp and Paper Manufacturers- Supplier s Profile
PPB KS - Management Report
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PPB KS - Productivity Improvement
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SCG Innovation
Community of Practice SCG PaperCommunity of Practice SCG Paper
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SCG Innovation
SCG Paper-ks
module
Community of Practice SCG PaperCommunity of Practice SCG Paper
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SCG Innovation
kick-off meetingSoftwarewebboard-
knowledge sharingcommunity leader KM facilitate
KMupdate
Community of Practice
COP Module of Knowledge
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SCG Innovation
COP Module of Knowledge(//)
facilitator kick-off knowledge sharing(///)
Template K-Capture, K-Asset
COP SitePPB-KS
COP
COP 2549
Kick-Off11.Corrugator1.Box Making
Knowledgesharing
communitycop
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SCG Innovation
--4.Maintenance
Kick-Off15.Marketing
--6.Product Design
--7.Logistics
Kick-Off1
1.Coating2.Coating
2.Converting
--3.Production Planning
Kick-Off12.Converting
gg
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Knowledge communitycop
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1 SCG Innovation
3. Bleaching Chemical
Preparation
4. Chemical Recovery
--1.Paper Recycling11.Recycling
Kick-Off11.Statistical12.Statistical
2. Pulp Drying
-Kick-Off
-2Stage Oxgen
Deligification
-Recovery Boiler
Incident-Bearing Gear Turbine
-Modify Air System
31. Pulping & Bleaching10.Pulp
--8. Paper & Paperboard
Testing
9.Product Application
Knowledgesharing
communitycop
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2 SCG Innovation
COPCOP
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3 SCG Innovation
ee
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4 SCG Innovation
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5 SCG Innovation
or --
BUSINESS SUCCESSBUSINESS SUCCESS
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6 SCG Innovation