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 knowledge

No policy/strategy for managing buildings

No physical security for the assets

No maintenance database and plan

Dyes 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 inventories

Controlling pollution strategy

Reactive maintenance

No strategy for life cycle management

No IT department

Suppliers not eco-friendly

Boat engine modification for fuel

Packaging 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

Level

Team 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 meetings

Abolish reward practices

Weekly workshops for interaction

Externalization & Combination:Database (document experiences,

knowledge from NPD, problems and

lessons learned)

Intranet

Subscriptions to journals and

websites

Internalization:Application of knowledge

Embed 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 steps

Action 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 buildings

5. 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 steps

Scope: strong network security

Zero-Knowledge Protocol

About 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 Management

Cleaner 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 - Action

Restructuring of the products’ engine (fuel: butanol instead of ethanol )(Bevill, 2012).

Notify suppliers of raw materials

Search for eco-friendly suppliers

Recycle raw materials

Change packaging material to eco-friendly

Change dyes

Offer eco-friendly accessories and cleaning products

Environmental 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 assets

Year 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 recording

Year 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