knowledge-based asset management for waveriders
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Knowledge-based asset management for WaveRiders. Team A2. Overview . Introduction to Knowledge Management KM for WaveRiders Facilities Management for WaveRiders Resource Utilisation for WaveRiders. - PowerPoint PPT PresentationTRANSCRIPT
KNOWLEDGE-BASED ASSET MANAGEMENT FOR WAVERIDERSTeam A2
Overview Introduction to Knowledge Management KM for WaveRiders Facilities Management for WaveRiders Resource Utilisation for WaveRiders
Knowledge will help us make the more returns on our engineering assets as we enter this crucial stage in the organisations journey
Is KM Valid or Distorted? Knowledge is at the heart of much of
today’s global economy, and managing knowledge has become vital to companies’ success. (Kluge et al. 2001)
The basic economic resource … is no longer capital, nor natural resources …, nor ‘labour’ … It is and will be knowledge. (Drucker, 1993)
Where’s the payoff? ‘Last year, U.S. companies spent $ 4.5 billion on
software and other technologies that claim to foster information sharing among employees. Where’s the payoff?.’ (Gilmour, 2003)
Large numbers of European organisations are taking great interest in the idea of knowledge management and many are launching knowledge management initiatives and programmes. However, large proportion of such initiatives have failed. (Storey and Barnett. 2001)
Why does KM fail? Failed Publishing paradigm
Lack of reflective thinking
Corporate culture
Misunderstanding of people’s welling of sharing the knowledge.
Knowledge requirement of WR distributions, discount structure, pricing structure and
safety requirement, market size and competition and regulation of the European market
technological innovation more appropriate raw material health and safety requirement knowledge of exploiting WR’s assets knowledge of current capability customers’ requirement current processes maintainace cost employees’ past experience
KM Strategies Codification strategy (20%) Focusing on development of computer
support systems, databases and routines.
Personalisation strategy (80%) Focusing on individual development,
team building and inter-personal communication.
Process of knowledge transform
1. Tacit to tacit
2. Explicit to explicit
3. Tacit to explicit
4. Explicit to tacit
Valid KM Deliver the intellectual capacity of the
firm to the individual knowledge workers who make the day-to-day decisions that in aggregate determine the success or failure of a business.
KM strategic plan Codification Strategy -- Purchase Oracle Database System
Personalization Strategy -- Develop a Brokering Model
Harris poll (2003) Harris poll of more than 1,000 workers of how their
thought their companies handled knowledge sharing:
Some people in the company can help me to do my job better. (67%)
I don’t know how to find these colleagues. (39%) Work is often duplicated because people are unaware
of each other’s work. (60%) Opportunities to innovate are missed because the right
people do not work together. (54%) Wrong decisions are regularly made because
employee knowledge isn’t effectively tapped. (51%)
Focus on past experience?
Using the rearview mirror to navigate the
road ahead.
Brokering Model Creating a communication FORUM. Encourage people to discuss the problem
that they have encountered during the work. Recruit one staff to categorise the topic. Hold a party to provide chance for employee
to meet together. Vote for three people who have made the
most contribution in FORUM. Free trip to Zermatt in Switzerland and a
‘master of knowledge’ medal.
Advantage of adopting BM Taping people’s eagerness of sharing
their knowledge. Taping people’s appetite for knowledge. Providing sustainable development of
knowledge management system. Define talents within the organisation. Providing a communicating platform for
people who share the same interest.
Cost of KM StrategyWaveRiders
Profit after tax £ 329,751
Cost on the trip £ 3,600
Purchase medal £ 390
Build Oracle Database £ 30,000
Returned Hosting £ 120
Total £ 33,870
£ 295,641
Facilities Management(Base on our KM model)
Strategic Analysis
Developing Solutions
Strategy Implementation
Process of developing a facilities management strategy Atkin, B. & Brookes, A. (2000)
Facilities ManagementRoles
Roles WaveRiderLeaders ManagementMentor No need base on our KM model
Strategic business planner Management
implementerAll of the people inside the organisation
base on our KM modelEnvironmentalist Outsource
Resource obtainer Financial manager
Networker OutsourceSurvivor
SpokespersonAll of the people inside the organisation
base on our KM modelAgile purchaser
Lessor contractor
InnovatorAll of the people inside the organisation
base on our KM modelInformation manager Outsource
Facilities ManagementGoals
Goals (Atkin, B. & Brooks, A. 2000):1. Consider the needs of the organisation,
differentiating between core and non-core business activities.
2. Identify and establish effective and manageable processes for meeting those needs.
3. Establish the appropriate resource needs for providing services, whether obtained internally or externally.
Facilities ManagementGoals Cont’d
4. Identify the source of funds to finance the strategy and its implications.
5. Establish a budget, not only for the short term, but also to achieve best value over the longer term.
6. Recognise that management of information is the key to providing a basis for effective control of facilities management.
Facilities ManagementA business plan for facilities management for WaveRider
Needs: Increase sales & profit
Core business activities: Expand their target market and increase sales
Non-core business activities: Social responsibility etc
Effective processes for meeting the needs: Choose the right market; produce high performance products; develop new product and lower costs
Facilities Management A business plan for facilities management for WaveRider Cont’d
Resources needs for providing services (Internal & External): Customer and market information; high quality facilities management and information management and outsource partnerships
Source of funds to finance the strategies: All from WaveRider Sales
Budget: 2.8 million facilities. 20,000 for managing (assumption)
Managing the information: Consider outsource companies
Facilities ManagementFacilities Management Information Systems
Functions of the System:1. Data collection
2. Storage of data
3. Analysis of data
Facilities Management Six key areas that must be considered when developing a FIMS
Alexander (1996): The structure of the organisation and business to identify patterns of
management behaviour
The types of projects that will need decision support and the associated information flow patterns
Customer requirements for information, both internal and external
Human resource implications for training and skills requirements
Budgetary constraints, taking account of initial and ongoing costs
Other computing systems that could be integrated to provide an optimum solution
Facilities Management Develop a FIMS to WaveRider – company structure
Facilities Management Develop a FIMS to WaveRider – Leadership style
Leadership Style (Base one our KM model): Contingency and situation; Fiedler's contingency theory.
Facilities Management Develop a FIMS to WaveRider cont’d
Customer requirements for information (Internal & External): Questionnaires and Bench marking.
Human resource implications for training and skills requirements: 5 in Production department; 2 in Finance department; one in each other department. Training together.
Budgets: 2000 (assumption).
Computing systems could be integrated.
Facilities Management Transportation effectiveness
Route - whether it crosses state or national boundaries, customs requirements, legal factors.
Capacity - volumes of goods, number of items, distances.
Time - short haul time, mean transportation time.
Cost - cost per shipment, cost per carrier per mile, cost of packing.
Facilities Management Transportation effectiveness for WaveRider
Route: Always use the cheapest ones but have backup routes.
Capacity: Maximise the capability for every carrier.
Time: Base on minimising costs.
Cost: Minimising costs.
Facilities Management Recovery strategies
Customers Supply Chain Inputs Communications Computers Software Data Facilities People Furniture Office Equipment Production Equipment Office Supplies
Facilities Management Recovery strategy for WaveRider
1. Customers
2. Supply Chain Inputs3. Communications
4. Computers 5. Software6. Data 7. Facilities 8. People 9. Furniture10. Office Equipment11. Production Equipment
12. Office Supplies
1. Special offers or promotional activities
2. Find backup suppliers3. Always have backup of the
meetings and other communication activities
4. Insurance 5. Backup system6. Backup system 7. Insurance 8. Motivation by rewards 9. Insurance10. Insurance11. Insurance and have
backup suppliers12. No need
Facilities Management Outsourcing – advantages
Reasons to outsource Facilities Management (Hinks and Reuvid in Reuvid and Hinks, 2002; alternative copy ; Park, 1998; Alexander, 1996):
Reduce costs
Gain better results - specialist firms may be able to provide higher quality, faster or safer services.
Increase flexibility - an organisation can expand/contract to react to their markets. They also remove the issue of a skill shortage within their workforce.
Focus on core skills - to remain competitive the company neesd to focus on and re-engineer their core business processes.
Facilities Management Outsourcing – disadvantages
However, outsourcing is not always the best solution: Lack of common goals and agendas between the outsource
company and the client organisation.
Lack of confidence in the ability of the outsource company to meet the quality, availability and capacity requirements
Resource utilization Important to WaveRiders because:
low inventory turnover (0.4) Need to better manage our resources and
focus on profitable markets i.e. Europe
The relationship between productivity and utilization
1. Low productivity, low utilization 2. Rising productivity, rising
utilization 3. Peak productivity, high utilization 4. Falling productivity, peak
utilization
Methods According to Waveriders market
research:The latest industry figures show that in the
last three years the market in the UK was fairly stagnant.
Resource redeployment i.e. focusing on Europe
Purchasing the Material Requirements Planning (MRP) System
Exploring new manufacturing possibilities in Europe
Resource Utilisation Knowledge
Production scheduling
Production line (quantity, types, condition….)
Demand/forecastMarket informationSupplier delivery timesEuropean
manufacturing data
Inventory management
The quantity of raw materials
The quantity of products
Dependent demandRaw materials from
new suppliers
Resource Utilisation Purchasing an Materials Requirements
Planning (MRP) system will help us deal with our production scheduling and inventory management as we grow
Cost of about $10,000
References Atkin, B. & Brooks, A. (2000) Total Facilities Management. 2nd Edition.
Blackwell Publishing Ltd. UK. Barnes, J. (2001) A guide to business continuity planning. New York ;
Chichester : Wiley. Drucker, P. (1993). Pos-Capitalist Society. Oxford: Butterworth-Heinemann. Gilmour, D. (2003) ‘How to Fix Knowledge Management’. Forethough, 10, 16-
18. Kluge, J., Stein, W. and Licht, T. (2001). Knowledge Unplugged: The McKinsey
Survey on Knowledge Management. Basingstoke: Palgrave. Park, A. (1998) Facilities management : an explanation. Basingstoke :
Macmillan. Reuvid, J. & Hinks, J. (2002) Managing business support services : strategies
for outsourcing & facilities management. London : Kogan Page. Storey, J. and Barnett, E. (2000) ‘Knowledge management initiatives: learning
from failure’. Journal of Knowledge Management, 4, 145-156. http://reliabilityweb.com/index.php/articles/
the_human_factor_in_field_productivity/