Knowledge-based asset management for WaveRiders

1. Knowledge-based asset management for WaveRiders Team A2

2. Overview • Introduction to Knowledge Management • KM for WaveRiders • Facilities Management for WaveRiders • Resource Utilisation for WaveRiders

3. Knowledge will help us make the more returns on our engineering assets as we enter this crucial stage in the organisations journey

4. 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)

5. 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)

6. Why does KM fail? • Failed Publishing paradigm • Lack of reflective thinking • Corporate culture • Misunderstanding of people’s welling of sharing the knowledge.

7. 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

8. 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.

9. Process of knowledge transform • 1. Tacit to tacit • 2. Explicit to explicit • 3. Tacit to explicit • 4. Explicit to tacit

10. 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.

11. KM strategic plan • Codification Strategy -- Purchase Oracle Database System • Personalization Strategy -- Develop a Brokering Model

12. 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%)

13. Focus on past experience? Using the rearview mirror to navigate the road ahead.

14. 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.

15. 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.

16. Cost of KM Strategy

17. Facilities Management(Base on our KM model) Strategic Analysis Strategy Implementation Developing Solutions Process of developing a facilities management strategy Atkin, B. & Brookes, A. (2000)

18. Facilities ManagementRoles

19. 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.

20. 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.

21. 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

22. 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

23. Facilities ManagementFacilities Management Information Systems Functions of the System: 1. Data collection 2. Storage of data 3. Analysis of data

24. 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

25. Facilities ManagementDevelop a FIMS to WaveRider – company structure

26. Facilities ManagementDevelop a FIMS to WaveRider – Leadership style • Leadership Style (Base one our KM model): Contingency and situation; Fiedler's contingency theory.

27. Facilities ManagementDevelop 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.

28. Facilities ManagementTransportation 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.

29. Facilities ManagementTransportation 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.

30. Facilities ManagementRecovery strategies • Customers • Supply Chain Inputs • Communications • Computers • Software • Data • Facilities • People • Furniture • Office Equipment • Production Equipment • Office Supplies

31. Facilities ManagementRecovery strategy for WaveRider • 1. Special offers or promotional activities • 2. Find backup suppliers • 3. Always have backup of the meetings and other communication activities • 4. Insurance • 5. Backup system • 6. Backup system • 7. Insurance • 8. Motivation by rewards • 9. Insurance • 10. Insurance • 11. Insurance and have backup suppliers • 12. No need 1. Customers 2. Supply Chain Inputs 3. Communications 4. Computers 5. Software 6. Data 7. Facilities 8. People 9. Furniture 10. Office Equipment 11. Production Equipment 12. Office Supplies

32. Facilities ManagementOutsourcing – 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.

33. Facilities ManagementOutsourcing – 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

34. 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

35. 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

36. 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

37. Resource Utilisation Knowledge Production scheduling Production line (quantity, types, condition….) Demand/forecast Market information Supplier delivery times European manufacturing data Inventory management The quantity of raw materials The quantity of products Dependent demand Raw materials from new suppliers

38. 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

39. 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/