Tacit knowledge as a promoter of project success

Presented by

Poj Paniangvait

Yingrudi Khankaew

Agenda

ContextObjective Technical ideaPerspectiveConclusionsPoint of view: enhancement perspectivesFuture Recommendation

Context

Author: Kaj U. KoskinenKey Problem: Tacit knowledge can be

key success factor in the delivery of automation systems by using 2 cases study in the metallurgical industry

Case Studies

Case1: Automation project for a steel plant

Case 2: Automation project on a concentrator plant

Objectives

To describe the presence and effects of tacit knowledge in the delivery of automation systems

To show how the tacit knowledge of the project personnel can have a noticeable effect on the success of the project

Technical Ideas

Theoretical FrameworkResearch context Research methodology

Theoretical Framework

Explicit VS Tacit knowledge Importance of experience Mental models Intuition Commitment Interaction as a reinforcing factors Metaphor Summary: tacit knowledge is practical know-how

Theoretical Framework Type of Knowledge

Explicit knowledge (Nonaka and Takeuchi,1995)

type of knowledge which can be articulated in formal language

Tacit knowledge (Polanyi,1996; Johnson-Laird,1987; Nonaka and Takeuchi,1995)

Beliefs, value, viewpoints, uncodified routines, etc.

intuition and commitment

Theoretical Framework Importance of experience

Bardaracco (1991) human being can take advantage of information

if earlier social software connected to information Cohen and Levinthal

absorptive capacity man's capability of utilizing new information

in the solution relies on his earlier knowledge Ross, 1989

Knowledge and know-how based on experience can be utilized in engineering

supported by cognitive psychological research Lyles and Schwenk,1992

The capability to solve a problem is dependent on the richness of the existing knowledge structure

Multi-faceted experience

Theoretical Framework Mental Model

Kim, 1994mental models represent a person's view of the

world, including both explicit and implicit knowledge

Argyris, 1989Although people do not always behave congrue

ntly with what they say

Mental model provides a context in which to view and interpret the new experience.

Intuition

Just do it this way. It will work.Senge,1990;Nystorm,1993

they are not figure out complex problems entirely rationally, relying instead on hunches, recognising patterns, and drawing intuitive analogies and parallels to other seemingly disparate situations

Theoretical Framework Interaction as a reinforcing factor

Daft and Huber, 1987 The richness of a medium can be analyzed in terms of two

underlying dimensions: the variety of cues to the medium convey and the rapid of the feedback the medium can provide.

Berger and Luckman, 1966 Face-to-face social relations Here-and-now interactions

Meaning are created and negotiated through communication and interaction between people.

Theoretical Framework Metaphors

Nonaka and Takeuchi, 1995Metaphor is highly effective in fostering direct

connection with the creative process in the early stages of knowledge.

Metaphor merges two different distant ideas into single.

Research context

2 Main context approaches: A sale project(explicit) document

an offer an order

A delivery project(required tacit) engineering installation commissioning

Sales Project- Offer- Order

Delivery Project- Engineering- Installation- Commissioning

Knowledge CreationProcess

DeliveryProjectSame Task

Same PartnerOther Partner

IntuitionCommitment

Text BooksContacts

Plansetc.

Knowledge

Conversion

ExplicitKnowledge

Know-Why

Richness of Interactionas a Reinforcing Factor

ExperienceTacit

Knowledge

Know-Why

Knowledge creation process in delivery project. (The “fi gure is based on the principle of the ‘ Knowledge Conversion' model by

Nonaka and Takeuchi, 1 9 9 5 ).

Research Methodology

Using a “knowledge intensive quantity” empirical part using “action research m

ethod” to gather information

Case study and perspective

Case 1: Automation project for a steel plant

Supplier is Finnish enterprise manufacturing automation systems

Customer is A Finnish steel mill

Case 1: Working stages:

Initial stage the suppliers had no tacit knowledge on rolling mill experience. (Table

1) Planning stage

Several meetings and trainings between customer and supplier mostly explcit knowledge exchange involve telephone and telefax communication no common language and different mental models increase bad feeling within the project decrease commitment

During the project no common social events between supplier's and customer's project g

roup no activities increased openess and mutual confidence(tacit knowledg

e During installation and commissioning

Character of a rolling mill process(tacit knowledge) begin to be clear to supplier's project group

unprofitable for the supplier because of the delayed project

1TableEEEEEEEEEE-EEEEE EEEEE EEEEEEEEE EE EEE EEEEEEEEE EE EEE EEEEEEEEE EE EEE EEEEEE EEEEEEE E EEE EEEEEEE

Supplier's experience: No rolling mill

experience No problem solving

skills based on intuition

Diffi cult to understa nd customer views

Expert on automation

EEEEEEEEEEE: Expert on rolling mill

EEE E EEEEE EEEEE EEEEEEEEEE

Coarse rolling mill in Finland

-The supplier and customer had some earlier co operation- Little understanding of the other party's uncodifi ed routines

Perspective and conclusionscase1

The lack of tacit knowledge was an obvious reason for the poor economic performance of the projectUnprofitable to supplier due to the

significant delay of the project

Enhancement perspective and learning

At the end of the project the tacit knowledge of both the supplier and of the consumer relating to rolling mill automation has increased significantly.

(table 2)Tacit learned enhance: common

language, communication way-metaphor, better co-operation and mutual understanding

EEEEE 2- Experience based tacit knowledge of the personnel at th

e end of the coarse rolling mill project

Supplier's experience:Much rolling mill

experience Intuition Based problem

EEEEEEE EEEEEE improved Better able EE see the E

ustomer’s views and understanding their ‘language’

Expert on automation

Customer's experience: Expert on rolling mill

More automation experienc e :

More understanding about automation viewpoints and attitudes (for example work discipline)

Coarse rolling mill in Finland

-The supplier and customer now had much experience of co operation- Better understanding of the other party's uncodifi ed routines

Case 2: Automation project for a concentrator plant

Supplier is the engineering department of Finnish multi-metal enterprise

Customer is a large South African Mining company

Working case of Delivery process

The delivery consisted of an automation system, which was designed at the supplier’s plant

and installed and commissioned

at the steel factory’s rolling mill.

Case 2 Working stages

Initial stage planning meeting held at the customer's premises

initial data of customer as explicit knowledge planning stage

Two customer tailored coursed in Finland. tacit knowledge are speciied in some degree

installation and commissioning stage common language similar mental models no delay more commitment experience and mutual trust common spirit feeling of security between groups

3Table- Experience based tacit knowledge of personnel in the be

ginning of the concentrator project

Supplier's experience:Much experience in

concentration Plant

Intuition Based problem solvin g skills

Easy to understand the customer’s views and problems

High task commitmentExpert on automation

Customer's experience: Expert on concentrator Plant

Quite a lot of experience with automation

Easy to supply initial data to the supplier

A concentrator plant in the Republic of South Africa

-The supplier and customer had no previous co operation- However, quite a good understanding of the other party's uncodifiedroutines

Perspective and conclusionscase 2

Tacit knowledge gained from experience may be expected to help significantly in the success of delivery projects.

The level of communication, not only explicit but tacit, within a project is significant key to its success.

4Table- Experience based tacit knowledge of personnel at the en

E EE EEE EEEEEEEEEEEE pEEEEct

Supplier's experience:Much experience in concentrator

Plant

Intuition Based problem solvin g skills

Easy to understand the customer’s views and problems

High share task commitmentExpert on automation

Customer's experience: Expert on concentrator Plant

Much experience on automation

E EEEEEEEEEEEE EEEEE EE EEE EEEEEEEE EE EEEEE EEEEEE

-The supplier and customer had now much experience of co operation- Good understanding of the other party's uncodifi ed routines- Supplier's comfort at working in strange environments increased

Point of View

Tacit knowledge has not received much attention. A great deal of know-how required in the delivery is tied t

o knowledge that is not written. Tacit knowledge is difficult to express and define

The research problem in the action research method is holistic and diffiicult to separate into parts using analysis.

The author of this paper participated as a designer and project manager in both of the projects, which are the basis of the empirical part of the study

Optimization:Enhancement and extensible application for development stages is important

To Increase efficiency, effectiveness and innovativeness

Point of view

At extensible and enhancing level in the future, the company can be knowledge creating company by the followings:

1. Socialization: collective data by dialogue and interview from knowledge worker

2. Externalization: analysis of tacit knowledge and link to explicit knowledge by using knowledge mapping model or common KADs

3. Combination: create best practice, learning by doing and combining previous knowledge and new knowledge

4. Internalization: distribute best practice model and make it more applicable and effective in different scenario in field building

Four modes of knowledge conversion and spiral model

To

From

Nonaka´s theory of knowledge creation

Knowledge Creation Processesat 5 phases

1.Discovery phase: Share Tacit knowledge Knowledge capture meeting: knowledge mapping and

commonKADs Template

2.Capture phase: Create concept and common language CommonKADs knowledge model/map

3.Sharing phase: Justify concept Share Best Practice scenarios

4. Build Archetype phase: Directions and routines Application Facilitating and mentoring

5. Development phase: Cross leveling knowledge Sharing/Networking and Continuing development

KM Practices Middle-up-down management

CKO

COPsKnowledge

Engineering Team

KMS support

CKO=Chief knowledge Officer

COPs=Community of Practice: Knowledge Engineering Team (Middle Management) as facilitator and mentor

KMS support team

Balance Scorecard as KPI

Key Drivers

Financial perspective

Customer perspective

Internal business process

Learning and Growth

Total Quality Management

CRM program

Activity Based Costing

Knowledge Management

Future Recommendation….

Establishing an enterprise knowledge culture Developing and deliver knowledge-based

product and services Maximizing the value of enterprise’s

intellectual capital Creating an environment of knowledge sharing Establishing a culture of continuous learning Managing customer’s knowledge to increase

their loyalty and the value added

Thank you