Consulting Team: Awalpreet Takkar , Marcin Czajkowski , Theofani Dimopoulou, Yuting Zhao , Cresna Ponthy , Surya

1. The University of Warwick, 15th April 2011 Towards Knowledge and Asset Excellence Consulting Team: AwalpreetTakkar, MarcinCzajkowski, Theofani Dimopoulou, Yuting Zhao, CresnaPonthy, Surya Saha

2. Approach to Excellence Enablers Results People Results People Processes Products & Services Customer Results Key Results Strategy Leadership Partnerships & Resources Society Results Learning, Creativity & Innovation Source: EFQM, 2010

3. Approach to Excellence 4c

4. Approach to Excellence 4e

5. Life Cycle Asset Management Portfolio of Assets Acquire Utilise Life Cycle Activities Inventory Plants Equipment Maintain Dispose 5 Source: based on information by The Institute of Asset Management (http://theiam.org )

6. Asset Management - Land & Buildings Property Management • Alternatives: • Employ experienced Facility Manager separately to H&S manager • Proposal: • BSI 8536:2010 Facilities Manegement Briefing – Code of Practice

7. Asset Management - Land & Buildings Property Management – effects: • Short-term: • Delivering fit for purpose building thanks to structured approach and ‘system thinking’ • Timely project management • Long-term: • Improved LCC performance • Support for CSR implementation • Reduced waste and resource consumption • H&S environment

8. Asset Management - Land & Buildings Design & build activities • Proposal: • New layout for both sites • Alternatives • Layout of Lymington developed by architects and constructor • No improvements at Dorset

9. Asset Management - Land & Buildings Design & build activities – effects: • Short-term: • Elimination or reduction of Dorset’s operational issues • Improvement of Dorset facility • Long-term: • Increased performance and smooth flow • H&S environment • Reduced time required to plan new facilities

10. Asset Management - Land & Buildings Space management • Proposal: • Introduction of Lean Manufacturing techniques – in particular 5S, VSM • New layout in Dorset and Lymington • Alternatives: • No change

11. Asset Management - Land & Buildings Facility services • Proposal: • Keeping core and key services in-house • Outsourcing non-core services • Alternatives: • Total Facility Management – outsourcing all services to one provider • Keeping all services in-house

12. Equipment Assumptions: WaveRiders is looking for the high performance WaveRiders is implementing the reactive maintenance

13. Equipment

14. Equipment • Acquire • Identify what equipment is really needed. • Equipment reliability • Instruction manuals should be read carefully • Equipment is environment friendly in operation • Safety designed equipment • Utilize • Cleaning the machines regularly • Scheduling machines (SAP) • Manage the scheduling with consideration of contingency • Maintain the equipment regular, extend the life of components to ensure the normal operation of equipment • Training the operators • Record the characters and features • Security consideration

15. Equipment Proposal: For short term, maintenance management process • Benefits • Effective maintenance management will ensure that: • life cycle costs are minimised; • there is efficient use of resources; • environmental compliance is not compromised through asset failure; and • service levels are maintained or improved. Source: Maintenance management Implementation Guide

16. Equipment T.P.M Structure T.P.M Officers TPM Responsible Plant Manager Proposal: For long term, Total Productive Maintenance. TPM is an equipment management program that emphasises operator involvement and ownership of equipment performance. 5’s Autonomous Maintenance Planned Maintenance Individual Improvement Equipment Six Big Losses • The benefits of implement TPM : • Increased equipment and personnel • productivity • Increased asset utilization • Lower maintenance and system costs • Approaching zero equipment-caused defects or reliability issues • Enhanced job satisfaction • Increased Return On Investment Breakdowns Available time Setup/adjustment Quality Maintenance Early Equipment Management Safety Training People Development Available operating time Idling/monitor stoppages Actual operating time Speed Defects in process Effective operating time Start up loss • Source: Kaizen Continuous Improvement phase. 16

17. Resource Utilization • Inventory System

18. Data available • Finished good stock • Alternative market (sales team) • Distribution

19. Inventory management objective

20. Material Requirement Planning • Inventory control • Production planning • Manufacturing control

21. When to use? • Complex products • Assembly-to-order environment • Demand variable

22. Why MRP? • Reduce Inventory Levels • Reduce Component Shortages • Reduce purchasing cost • Reduce manufacturing • Less scrap • Reduce overtime • Identify material requirement

23. What should be done? • Organizational strategy • Location • Date

24. PART CONTROL BOM INVENTORY CONTROL SALES ORDER MRP ACCOUNT RECIEVABLE MPS PRODUCT COSTING PURCHASING CONTROL LEDGER PRODUCTION CONTROL SHOP CALENDER ACCOUNT PAYABLE ROUTING CONTROL WORK CENTER CONTROL CAPACITY REQUIREMENT PLANNING PRODUCTION ACTIVITY

25. Master production scheduling Capacity Company Policies Product Charact. Economic Considerations • Help schedule the finished goods • Combination of customer order and demand forecast • What needs to be produced Placed orders MPS When & how muchto produce Forecasted Planned orders Planning Horizon Time Capacity Planning

26. MRP matrix- Example

27. Health & Safety Facts & Finding • 0.8 million workers suffer illness cause from past work • 840 workers injured from 100,000 – ratio • 233,000 injured! • 0.5 workers killed from 100,000 – ratio • 152 killed! Source: Health & Safety Executive Statistic Report 2009/2010

28. Health & Safety (cont’d) Advantages of having proper H&S management: • Improve organization reputation • Improve production output (reduction in accident) • Improve people commitment • Improve customers confidence • Reduce and avoid public claims against organization • Reduce insurance premium (financial impact) Source: Stranks, J. (2005). The manager's guide to health & safety at work (8th Edition ed.). London, UK: Kogan Pages.

29. Health & Safety (cont’d) Recommendation to improve H&S level: • Set up framework Source: Stranks, J. (2005). The manager's guide to health & safety at work (8th Edition ed.). London, UK: Kogan Pages.

30. Health & Safety (cont’d) Implementation Plan Chaturvedi, P. (2007). Occupational Safety, Health & Environment And Sustainable Economic Development. New Delhi, India: Concept Publishing.

31. Security Management Recommendation to improve H&S level: • Set up framework Source: Sennewald, C. A. (2003). Effective security management (4th Ediiton ed.). London, UK: Butterworth-Heinemann.

32. Security Management (cont’d) Virtual Concern & Implementation Plans Source: Talbot, J., & Jakeman, M. (2009). Security Risk Management Body of Knowledge . New York, USA: John Wiley and Sons.

33. Security Management (cont’d) Physical Concern AHP approach: Parameters: • Areas for detection • Accuracy • Emergency • Intelligence Recommendation: Install CCTV system in all workplace for cost +/- £ 5,800 per place Source: Group discussion & brainstorming

34. Life Cycle Asset Management Plan 1/2 Life cycle : Time interval that commences with the identification of the need for an asset and terminates with the decommissioning of the asset or any associated liabilities (http://theiam.org) Health – Safety - Environment Security Portfolio of Assets • Existing assets form another company • New assets • Replacement of existing assets Acquire Utilise Life Cycle Activities Inventory Plants Equipment Life Cycle Activities Maintain Dispose Based on PAS 55-1:2008

35. Life Cycle Asset Management Plan 2/2 Short term proposal Specific intervention optimisation (cost/benefit/risk/timing) Long term proposal Asset life cycle optimisation (cost/performance/risk/sustainability) Activity programme optimisation (cost/benefit/risk/timing of multiple activities across multiple assets)

36. Knowledge as an Asset Source: Nonaka & Takeuchi, 1995

37. Knowledge as an Asset

38. Knowledge Initiatives Source: Bhatt, 2000

39. Knowledge is Free!

40. Approach to Excellence

41. “Excellence is not a singular act, but a habit. You are what you repeatedly do..” Good Luck! -Anonymous

42. Thank you

43. References Asset Management. (n.d.). Guidelines for Implementing Total Management Planning. Retrieved April 14, 2011, from Department of Environment and Resource Management website: http://www.derm.qld.gov.au/water/regulation/pdf/guidelines/tmp/2001_guidelines/implementation/asset_07.pdf Bayo-Moriones, A., et al. (2010). 5S use in manufacturing plants: contextual factors and impact on operating performance. Journal of Quality and Reliability Management, 27 (2), p. 217-230. Boussabaine, H. A. & Kirkham, R.J. (2004). Whole life-cycle costing : risk and risk responses.Oxford, UK ; Malden, MA : Blackwell Pub Bhatt, D. (2000). Excellence Model and Knowledge Management Implications. UK. Brandimarte, P. (2007). Introduction to distribution logistics [electronic version]. USA: John Wiley & Sons. Brooks,R., Wilson, L. (2007). Inventory record accuracy [electronic version]. USA: John Wiley & Sons. Chaturvedi, P. (2007). Occupational Safety, Health & Environment And Sustainable Economic Development. New Delhi, India: Concept Publishing. EFQM excellence model (2010).Belgium : EFQM institute Gapp, et al. (2008). Implementing 5S within a Japanese context: an integrated management system. Management Decision, 46 (4), p. 566-579. Graves, S. (1999). Manufacturing Planning and Control [electronic version]. USA: Massachusetts Institute of Technology. Health and Safety Executive. (2010). Health Safety Executive Website. Retrieved April 10, 2011, from Health Safety Executive Website: www.hse.gov.uk/statistics/overall/ hssh0910.pdf Honan, B. (2010). ISO 27001 in a Windows Environment (2nd Edition ed.). Cambridge, UK: IT Governance. Hughes, P., & Ferrett, E. (2009). Introduction to Health and Safety at Work (4th Edition ed.). Oxford, UK: Butterworth-Heinemann. Kaizen Continuous Improvement phase. (n.d.). Retrieved April 14, 2011, from Beyondlean.com: http://www.beyondlean.com/kaizen.html Longenecker, J. (2006). Small business management [electronic version]. USA: Thomson corporation. Nonaka, I., & Takeuchi, H. (1995). The Knowledge Creating Company. New York: Oxford University press. Olomolaiye, et al. (2004). Knowledge management for improved performance in facilities management (COBRA 2004 The international construction research of the Royal Institution of Chartered Surveyors). Retrieved from the Knowledge-based Asset Management, MBE website: http://www2.warwick.ac.uk/fac/sci/wmg/ftmsc/modules/modulelist/kbam/sessions/asset_management/facilitiesmanagement/knowledgefacilities200409.pdf Reuvid, J., Hinks, J., & Institute of Directors. (2002). Managing business and support services. London: Kogan Page. Sennewald, C. A. (2003). Effective security management (4th Ediiton ed.). London, UK: Butterworth-Heinemann Schonstrom, M. (2005). Creating Knowledge Networks, Lessons from practice. Journal of Knowledge Management, 9(6), 17-29. Smith, et al. (2004). Procurement of construction facilities: a case study of design management within a design and construction organisation. Facilities, 22 (1/2), 26-34. Stranks, J. (2005). The manager's guide to health & safety at work (8th Edition ed.). London, UK: Kogan Pages. Talbot, J., & Jakeman, M. (2009). Security Risk Management Body of Knowledge . New York, USA: John Wiley and Sons.. The Institute of Asset Management, http://theiam.org/knowledge/centre/lifecycle-delivery-activities/ [Retrieved at 13/04/2010] Way, M. (2005). Soft landings: A fresh scope of service that ensures users and clients get the best out of a new buildings. Journal of Facilities Management, 4 (1), 23-39.