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by M ajor P ractical S olutions T o I mplement E xcellence (B4)

WaveRiders. by M ajor P ractical S olutions T o I mplement E xcellence (B4). K nowledge Management and Asset Management. Contents. EFQM, Knowledge and Asset Management WAVERIDERS general current situation KNOWLEDGE MANAGEMENT ASSET MANAGEMENT Facilities Management Security

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by M ajor P ractical S olutions T o I mplement E xcellence (B4)

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  1. WaveRiders by Major Practical Solutions To Implement Excellence (B4) Knowledge Management and Asset Management

  2. 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

  3. EFQM, Knowledge and Asset Management Source: EFQM (2010)

  4. 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)

  5. WAVERIDERS current situation • No 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

  6. WAVERIDERS current situation • Excessive 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

  7. WAVERIDERS 3-year plan

  8. KNOWLEDGE MANAGEMENT Source: Martin-Castilla & Rodrigo (2003) cited in Martín-Castilla & Rodríguez-Ruiz (2008)

  9. 4-LEVEL LEARNING IN ORGANIZATIONS Source: adapted from Sun & Scott (2005)

  10. 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

  11. Nonaka’s Knowledge Creation Spiral Model • 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 Source: Frost (2010)

  12. WAVERIDERS current assets • Buildings: • HQ (Christchurch) • Greenfields • Exmouth • Machines/Equipment • Computers • Office furniture • Software • Raw materials (wood, fibreglass, etc.) • Vehicles • Inventory

  13. ASSET MANAGEMENT Facilities Management • Facilities services – FM framework Source: Chotipanich (2004)

  14. 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

  15. 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

  16. ASSET MANAGEMENTSecurity Source: Saint-Germain (2005)

  17. Physical securityAction steps Action steps to implement physical security in the WaveRiders: • Fencing along the walls of the company and no unauthorized entrance until confirmed by any manager inside. • Putting up CCTV cameras in all the rooms and the production area for the safety and keeping a check, also in the parking space. • Access cards to workers, allowing them access only to places they belong. • Increase the lighting in barren parts of the buildings • Increasing patrolling by security officers especially at night. • Putting up alarms in case necessary that will notify the nearest police station. • Security personnel having control of the main gate. Can keep it locked/unlocked according to their will. Automatic access. • Having Fire protective mechanism in the company.

  18. 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

  19. ASSET MANAGEMENTHealth & Safety Step 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

  20. 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

  21. 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

  22. 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

  23. ASSET MANAGEMENTLife-Cycle Management Source: Iribarrenet.al (2010)

  24. ASSET MANAGEMENTLife-Cycle Management Year 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

  25. 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 competitiveadvantage • Increase the profitability of WaveRiders • Implementation of Total Productive Maintenance (TPM) plan

  26. ASSET MANAGEMENTMaintenance – Action steps Year 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

  27. ASSET MANAGEMENTResource Utilization Basic MRP Structure Source: Wild (2002)

  28. Material Requirements Planning • MRP focus on: • Bill of Requirements • Master Production Schedule • Opening Inventory • Opening Capacity • Safety Stock

  29. 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.

  30. ASSET MANAGEMENTResource Utilization (Cont.) Manufacturing Resource Planning (MRP II) Source: Wild (2002)

  31. 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

  32. 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.

  33. Thank you for your attention Q & A

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