knowledge-base asset management for waveriders

Knowledge-Base Asset Management For WaveRiders

Knowledge Power (KP) Consulting Ltd.“The dwarf sees further than the giant, when he has the giant's shoulders to mount on. ～Coleridge”

CEO:Ian Racker

GM:Alex Trush

Sr. Director:Juan David Ibagon

Sr. Manager:Sakshi Sachdev

Sr. Consultant:Chi-Wen, Shih

Sr. Consultant:Shaan Moin

Table of Contents

Thought Map Asset Management (AM) Knowledge Management (KM) Conclusion

Knowledge Power (KP) Consulting Ltd.

Thought Map

WaveRiders’Targets

EFQM Framework and Tools

Asset Management

Knowledge Management

Continuous Improvement


WaveRiders’ Targets

Reduce costs. Balance production and sales. Increase market share. Avoid stagnant UK market by entering EU. Creation of intellectual capital


Relevant EFQM Criteria Reliable, available knowledge Align resource allocation with strategy (long-term) in a sustainable manner (4c) Transforming data into knowledge (4e.6) Actively use knowledge through suitable working environment Improving and developing people’s skills in acquiring knowledge Provide people with the right tools/equipment (customer experience 5d.2) Health & Safety Knowledge sharing with stakeholders Resource sharing with stakeholders Identify the potential opportunities in investment in assets. Use and manage technology effectively/flexible and IT to support

effectiveness/innovation Considering financial aspects (pay-off) Involve stakeholders in development/deployment Effective information transformation paths/approaches Accessibility and appropriate manage of information Link with KM to individual performance Use potential of recycling (5d.3) environmental impact (4c)


Asset Management (AM)

A. Facilities E. Maintenance

B. Security F. Environmental

C. Healthy & Safety G. Resources

D. Life-Cycle Utilization


Facilities Management


Employ a Facilities Manager

Training for- Leadership skills Technical understanding and management

know-how Purchasing and contracting skills Personal and interpersonal skills


Business Continuity Plan

Critical functions for WaveRiders Staff wages Call Centre IT department Sales Goods In Distribution Manufacture


Risk Assessment of possible Hazards Flooding IT failure / loss of data Utility failure Fire or explosion Transport accident Extreme weather Loss of premises Staffing issues


Flooding in 2009

15th November, 2009Hazards for the Company Loss of access and utilities (electricity,

phones, etc.) Water damage to equipment and stock Cost of damage and or fines pollution Teams working on the ground floor Customer and suppliers


Outsourcing Activities

Medical- Doctor ( Reduce costs, Gain better results)

Cleaning Services for the premises ( Reduce costs)

Laundry services (Reduce costs) Gardener for the lawns (Increase Flexibility) Cafeteria and Canteen services( Focus on

core skills)


Mitigations Suggested

Monitor Flood Warnings issued by Environment Agency

Insurance to cover damage to equipment and premises

Relocate premises to higher ground Floodgates / sandbags stored ready for use


Health & Safety (activities)

To prevent accidents and cases of work related ill health.

Prevent from paint causing internal damage to health.

Implement emergency procedures evacuation. To create and maintain safe and healthy working

conditions. (hygiene). Ensure the storage of harmful substances.


Health & Safety (actions)

Carry out risk assessments and review regularly by supervisor.

Provide employees with necessary equipment. E.g (masks, or ear plugs).

Establish well signed escape routes and be kept clear at all times.

Regular inspection for the working conditions. (every week, include clean water, electrical safety).

Store the harmful substances in contained area, and making everyone aware.


Security (activities)

ISO 17799: "Management should set a clear policy direction and demonstrate support for, and commitment to, information security through the issue and maintenance of an information security policy across the organization“.

Prevention from any theft and damage. Restrict unauthorized access. Making computer systems protected from hacking. Information management. (securing the

information).


Security (actions)

Install CCTVs cameras which is to be monitored regularly.

Hire security patrol to monitor the premises. Prevent unauthorised access in the IT network. E.g

(build firewalls and spam filters). Build relevant data back up policy to prevent loss of

data.


Life Cycle Management


Why Life Cycle Management

Why Life Cycle Management

1.Identify the most cost-effective system and project options 2. Assist effective programme cost control 3. Identify major cost drivers 4. Enable balanced “cost or profit” viewpoint to be considered in “trade-off” decisions5. Assess cost-benefit and pay-back sensitivity of new technology6. Fairly assess early investments against later benefits

1.Identify the most cost-effective system and project options 2. Assist effective programme cost control 3. Identify major cost drivers 4. Enable balanced “cost or profit” viewpoint to be considered in “trade-off” decisions5. Assess cost-benefit and pay-back sensitivity of new technology6. Fairly assess early investments against later benefits

Costs

Benefits Assets

Investments

How to apply Life Cycle Management? Definition of equipments’ and systems’ costs and life periods

1. Deliver every equipment and labor cost into the fixed categories.2. Define the curate data resources.3. Define the timeliness of every equipment or labor.

Standardization & Documentations. 1. Computerized.2. Link to WaveRiders’ Intranet Server.3. Share the information.

Search alternatives, cost breakdown structure, demand predication & reduce wastes1. Search and eliminate the non-value added activities and wastes.2. Reconsider the costs as time line.3. Predicate the year-by-year profile of the expenditure and income.

Training Control New Production Budget by using DFSS


Maintenance Management


Why Lean Thinking?Why Lean Thinking?

1. Reduce non-value activities and wastes2. Clear Job Descriptions3. Frequent review and control4. Preventive Maintenance

1. Reduce non-value activities and wastes2. Clear Job Descriptions3. Frequent review and control4. Preventive Maintenance

New ProductionDevelopment

New Factory(Limington)

Old Factory & Equipments

Old Production

How to apply Maintenance Management? Definition of Work Description

1. Define the flow charts of each operating item.2. Deliver every maintaining action and job into the fixed categories.

(ex. Base on importance: Regular, Preventive, and Emergent)3. Count the time and cost of every action and job.4. Build warning system and the risk-control framework.

Standardization & Documentations.1. Computerized.2. Link to WaveRiders’ Intranet Server.3. Share the information.

Search alternatives, cost breakdown structure, demand predication & reduce wastes1. Search and eliminate the non-value added activities and wastes.2. Coordinate and Increase the common repair materials.3. Outsource High-cost and low-tech activities, such as cleaning work.

Training


Definition of Work Description

Acceptable:Does not affect daily business

Important:Minor impact on daily business

Crucial:Tremendous impact on daily business

Furniture, lamps, printer, etc.

Air conditioner, computer, cars, etc.

Manufacturing machinery, IT Server & Network

Regular maintenance

Preventive maintenance

Emergent maintenance


Environmental Management

ISO 14001 certificateISO 14001 certificate

7 Areas of environmental challenges:

-Atmosphere - Ocean-Toxic chemicals - Biotechnology-Freshwater - Biodiversity-Land

7 Areas of environmental challenges:

-Atmosphere - Ocean-Toxic chemicals - Biotechnology-Freshwater - Biodiversity-Land

WHY ? Performance Improvement

WHY ? Performance Improvement


How to become eco ?Cleaner Production: Great impact

Improve housekeeping Reduce electricity consumption & heating Preventative actions against, e.g. spilling More training more efficient use Provide excellent tools ( e.g. cutting fabric )

Recycling / Reusing / Disposal Oily water / Waste paint General recycling system

Using latest developments Use of solvent free paint Use of more natural materials


How to become eco ?

Hybrid of preventative and controlling technology

Preventive: New factory side in Lymington Use DFSS tools to design the layout and process

Controlling: Existing site Add filters to paint shop


Resource Utilisation

One approach must be chosenOne approach must be chosen

Just In Time (JIT)Just In Time (JIT)


JIT in practice Cellular manufacturing ( 3 cells )

CAD and mold making stays separate 3 teams of 6 or 7 members plus one supervisor

satisfy special request Higher throughput Pulling instead of Pushing Eliminate bottlenecks

Cross functional training KANBAN system

Inventory raw material is delivered to workplace straight away Automatic indicator if running out of material (fabric, fiber glass)

Knowledge is needed about inventory (IT)


Knowledge Management overview

Tacit

Explicit

Technological – explicit (storage, bases)Cultural – tacit (sharing, learning)

“The effective utilization of knowledge and learning requires both culture and technology”

"Knowledge Management is the discipline of enabling individuals, teams and entire organisations to collectively and systematically create, share and apply knowledge, to better achieve their objectives" Ron Young, CEO/CKO Knowledge Associates International


Where to Start?

1. Current situation1. Current situation1. Use EFQM criteria1. Use EFQM criteria

2. Made a comparison2. Made a comparison

3. Gap analysis3. Gap analysis

4 Action plan4 Action plan

5. Revision of initial map

5. Revision of initial map

External environment

Social network

Available resources


Current situation No sharing environment No links between departments Different knowledge databases for explicit knowledge managed by each department

without access from others. No learning culture within the company No interaction with employees of other departments No leadership skills to create a learning environment. No overall picture of knowledge resources in the company No interaction between internal and external knowledge No shared and accessible database at all levels Lack of understanding of knowledge resources and owners There is no knowledge development strategy No systematic approach for keeping using the lessons learned Poor uses of external sources to generate new knowledge No updating process of current knowledge (policies, strategic goals, achievements,

results) Poor using of the Best practices Lack of Knowledge translation Each person working in the office has a computer.


Comparison and Gaps№ EFQM criteria Current Situation

1 Reliable, available knowledge

2 Transforming data into knowledge

3Actively use knowledge through suitable working

environment

4Improving and developing people’s skills in

acquiring knowledge

5 Knowledge sharing with stakeholders

6Use and manage technology effectively/flexible and

IT to support effectiveness/innovation

7Effective information transformation

paths/approaches

8Accessibility and appropriate manage of

information

9 Link with KM to individual performance


Action PlanActions EFQM

�Knowledge-base strategy AllCreate an Intranet source 1, 2, 3, 5, 6, 7, 8

�External sources 2, 5, 6, 7, 8�Organize the workshop describing intranet opportunities

1, 2, 3, 4, 6, 8

�Continuous development of inter-personal and technical skills (Training)

1, 2, 3, 4, 6, 8

�Make the Knowledge map to allocate the main knowledge resources

1, 2, 3, 6, 8

�Creating of culture of learning organisation 1, 2, 3, 4, 5, 8,9

�Strategy communication through the company 3, 5, 7, 8, 9

�Communities of practise 2, 3, 4, 8, 9

�Create a Knowledge Network 2, 3, 4, 8, 9�Allocate the knowledge agents in each department (Weekly Meetings, encourage employees, rewards system)

3, 4, 9

�General meeting cross-functional departments 3, 4, 9

1) Knowledge-based strategy

Value creation: internally (processes, design)

Focus on Competence of peopleValue creation: externally (customer relationship, brand awareness, reputation)

Knowledge Power (KP) Consulting Ltd.Sveiby (2001)

2) Intranet

Ease to use and access

Universal access to information

Person to person interaction

Informal Networks

Intranet Page

Policies and Guidelines

Knowledgebase

Network Information

Staff Directory

Resource center

CustomersCustomers Finance

Chat

News

Site Map

About

TrainingIntranet

Applications

Acquiring KnowledgeAcquiring

Knowledge

Store KnowledgeStore Knowledge

Share KnowledgeShare Knowledge

Update Knowledge

Update Knowledge

Intranet

Policies and Procedures

Stop cards

General IssuesGeneral IssuesCommunity of

practice

Training, Tests Knowledge Maps

IdeasLessons Learned

Dynamic approach

Up to date knowledge

Accessibility and reliability

InventoriesInventories

3) Knowledge Mapping (knowledge representation)

An ongoing quest within an organization (including its supply and customer chain) to:

• help discover the location, ownership, value and use of knowledge

• learn the roles and expertise of people,

• identify constraints to the flow of knowledge, and

• highlight opportunities to leverage existing knowledge.

It illustrates or "maps" how knowledge flows throughout an organization.

(D. Grey, 2002 Smith Weaver Smith Inc)

Grey, D (1999)

Where to focus?

Enterprise Knowledge Map

Cross functional Knowledge Map

Process Knowledge Map


Outcome


CEO of the WaveRidersCEO of the WaveRiders

Appropriate knowledge sources

used For each business process

Appropriate knowledge sources

used For each business process

Input (the knowledge

map)

Input (the knowledge

map)

The time spend less and efficiency

is higher

The time spend less and efficiency

is higher

ValueValue

Employee using sources

effectively

Employee using sources

effectively

ImprovementsImprovements

Knowledge sources

allocation

Knowledge sources

allocation

Stakeholders

StakeholdersKnowledgeKnowledge

4) Knowledge Network


SuppliersSuppliers

Customers

Customers

Competitors

Competitors

Wave RidersWave Riders

Shonstrom (2005)

Communities of Practice

The problem: Market,

customers

The problem: Market,

customers

Arrange a meeting for production, sales, R&D

Arrange a meeting for production, sales, R&D

Interview the key

members

Interview the key

members

Run some exercises to get people involved

Run some exercises to get people involved

Build a social network graph

Build a social network graph

Use Intranet for creation of

CM page

Use Intranet for creation of

CM page

Put the photos of the

members

Put the photos of the

members

Create a hot topic on the

page

Create a hot topic on the

page

Knowledge creation,

sharing and evaluation

Knowledge creation,

sharing and evaluation


5) External Sources (Watson tool)


Workshops & TrainingCross-functional meetings

(monthly)

Stop Cards

Departments meetings (Weekly)

Interpersonal skills

Technical SkillsIntranet

Health & Safety Simulations



6) Learning organization culture

CultureCulture

SharingSharing

EvaluationEvaluation

CreationCreation

Personal MasteryBuilding Shared VisionTeam

Learning

Mental Models

System Thinking


Motivation Engagement Incentives

- Opportunity to get promoted in the future

- Acknowledgement of the employees achievements (monthly, quarterly, yearly)

- Bonuses, rewards for proactive behaviour (updating lesson’s learned, stop cards filled, using knowledge database)


Conclusion

№ EFQM criteria Desired Situation

1 Reliable, available knowledge

2 Transforming data into knowledge

3Actively use knowledge through suitable working

environment

4Improving and developing people’s skills in acquiring

knowledge

5 Knowledge sharing with stakeholders

6Use and manage technology effectively/flexible and

IT to support effectiveness/innovation

7Effective information transformation

paths/approaches

8 Accessibility and appropriate manage of information

9 Link with KM to individual performance


Conclusion WaveRiders can see further because

standing on The EFQM giant’s shoulder.

Knowledge-Base Asset Management (KBAM) can drive WaveRiders to continuous improvement.

Knowledge Power (KP) can help WaveRiders to find the right directions at the right time.


Gantt Chart & Cost (04/2011~09/2011)

Topic Hrs Apr May Jun Jul Aug Sep

Business Diagnosis 60

Total Improvement 320

Asset Management 160

Identify Job 48

Training 24

Perform Activities 88

Knowledge Management 160

Identify Job 60

Build KM System 120

Total Cost 380 20% 45% 60% 75% 90% 100%


Question ?


“The dwarf sees farther than the giant, when he has the giant's shoulders to mount on. ～ Coleridge”

References Akiho, L. (2000), Overview of Total Productive Maintenance: Case Studies of Best Practice of the Japanese Manufacturing

Industry, ChuSanRen (Central Japan Industries Association), Nagoya Charles A. Schuman and Alan C. Brent (2005), Asset life cycle management: towards improving physical asset performance

in the process industry, International Journal of Operations & Production Management, Vol. 25 No. 5/6, pp. 566-579 EFQM (2010) EFQM Excellence model. Belgium: EFQM Publications. Grey, D. (1999). Knowledge Mapping :A Practical Overview. Available [Online] http://www.google.co.uk/url?

sa=t&source=web&cd=3&ved=0CCAQFjAC&url=http%3A%2F%2Fwww.impactalliance.org%2Ffile_download.php%3Flocation%3DS_U%26filename%3D10383546681Knowledge_Mapping.htm&rct=j&q=It%20illustrates%20or%20%22maps%22%20how%20knowledge%20flows%20throughout%20an%20organization.&ei=8U6eTf2fKoXz4Qby3rm6Aw&usg=AFQjCNGPhxduj5UecgJeWjaXbvcAEXDavA&cad=rja (Accessed on April 7th 2011)

Krebs, V. (2011). Knowledge Networks. Available [Online] http://www.orgnet.com/IHRIM.html (Accessed on April 7th 2011) Lippman, M. (2006). Knowledge mapping as a technique to support knowledge translation. Bulletin of the World Health Organisation.

84 (8).

Notes KBAM (2011). Learning organisations. Available [Online]

http://www2.warwick.ac.uk/fac/sci/wmg/ftmsc/modules/modulelist/kbam/sessions/km/cckm/kmm/lo (Accessed on April 7th 2011) Shonstrom, M. (2005). Creating knowledge networks: lessons from practice. Journal of Knowledge Management. Vol. 9. N0. 6. p.29

Sveiby, K-E. (2001). A Knowledge-based Theory of the Firm To guide Strategy Formulation. Journal of Intellectual Capital. Vol. 2. Tsang, A.H.C., et al. (2000), Reliability centred maintenance: A key to maintenance excellence, Hong Kong: City University

of Hong Kong Tony Rojas and Jim H Davis (2008), Implementing an Asset Maintenance: Management Strategy... Where Do You Start?,

Water & Wastewater International, Vol. 23 No. 2, pp. 16-20


Facilities Management

Key Management Areas:- Understanding Business Organization- Managing People- Managing Premises- Managing Services- Managing the working Environment- Managing Resources

Drivers for Facilities Outsourcing Sea

SpraySea

HorseSea

SportSea

AwaySea

Catch

Reduce costs(overhead expenditure)

8 8 6 6 1

Gain better results(higher quality, faster or safer services)

6 6 5 5 2

Increase flexibility(expand/contract to react to their markets)

9 9 5 5 3

Focus on core skills

8 8 5 5 1Note: 10 means most suitable to be outsourced; 1 most unsuitable

Asset Maintenance Management Strategy (AMMS) Process:

a. Know your Assets

b. Know Where are they at

c. Know their conditions

d. Design Criteria and Proper Operations

e. Asset Care Programs

f. Effective Optimization1.To establish the proper “Key Performanvce Indicators

(KPIs)”

2. To collect the right data at the right time

Source: Tony and Jim (2008)

Sound Maintenance

Work Identification & Control Job Planning Work Order Scheduling Preventive / Predictive Optimization Materials Coordination Scheduled Outage / Shutdown Coordination

Source: Tony and Jim (2008)

Asset Maintenance Optimisation Framework

Source: Tsang et al. (2000)

Maintenance Management Current Situations:

1. Some parts of manufacturing machines are old.

2. Production loss and delay.

3. No warning of failure.

4. Maintaining components are Over saved.

5. Unclear maintenance jobs and responsibilities.

Suggested Resolutions:1. Lean Management – 5S (Sort, Straighten, Scrub/Shihe, Standardize, and Sustain)

- Reduce wastes, Work Identification & Control, etc.

- Preventive / Predictive Optimization


Maintenance Management - DMAIC 1. Some machines are old.

2. Production loss and delay.3. No warning of failure.4. Unclear jobs and responsibilities.5. Other EFQM requirments

Lean Management – 5S (Sort, Straighten, Scrub/Shihe, Standardize, and Sustain)

1. Generate ideas 2. Find root causes3. Measure Variation

1. Preventive / Predictive Optimization2. Work Identification3. Reduce Wastes4. Training5. Materials Coordination

1. Standardization2. Documentations3. Frequently Review


Define

Measure

AnalysisImprove

Con

trol

Total Productive Maintenance (TPM) "Total productive maintenance is based on teamwork and provides a

method for the achievement of world class levels of overall equipment effectiveness through people and not through technology or systems alone." (Willmott, 1994)

Source: Davis (1995)

Resources Dimension Cost

Source: Tsang et al. (2000)

Maintenance Framework to extend the life Span of Assets

Source: Akiho (2002)

The Proposed Asset Life Cycle Management (ALCM) model (a) PIR refers to the post implementation review

Source: Charles et al. (2005)

Life Cycle Management Current Situations:

1. Inefficient use of Budget.

2. Unclear financial records (cost or profit) for each product’s life-cycle

3. New factory and product will be developed

Suggested Solutions:1. ALCM (Asset Life Cycle Management)

2. DFSS (Design for Six Sigma)

3. ABC (Activity Base Cost)


Life Cycle Management - DMAIC 1. Inefficient use of Budget.

2. Unclear financial records (cost or profit).3. New factory and product will be developed.4. Other EFQM requirments

1. ALCM (Asset Life Cycle Management)2. DFSS (Design for Six Sigma)

1. Generate ideas 2. Find root causes3. Measure Variation

1. Training2. Demand Predication3. Reduce Wastes

1. Standardization2. Documentations3. Frequently Review


Define

Measure

AnalysisImprove

Con

trol

Life Cycle Management

Definition of system, requirements, alternatives and cost breakdown structure

Cost estimation using the most appropriate method

Discounting and Cost Profiling Evaluation of alternatives and identification of

the preferred solution

Life Cycle Management – Data Resources Engineering Design Data Reliability and Maintainability Data Logistic Support Data Production or Construction Data Customer Utilization Data Value Analysis and Relative Data Accounting Data Management Planning Data Marketing Data

knowledge-base asset management for waveriders

Documents

available knowledge

acquiring knowledge

health safety actionscarry

ill health

water damage

internal damage

stakeholders resource

casset management ama