Strategic approaches to AM & KM for WAVERIDERS on European Excellence Model

1. Dear Board Members of WaveRiders Strategic approaches to AM & KM for WAVERIDERS on European Excellence Model 15th of April 2011 A-3 Consultancy Firm, Plc University Road,Coventry CV4 7AL, UKTel: +44 (0)24 7652 3523Fax: +44 (0)24 7646 1606 VP & Senior Consultant: Edelon MELO Senior Consultant (Strategy): Thomas JOHN Senior Consultant (Operation): Miia ZHANG Senior Consultant (HR): Yaqin ZHU Senior Consultant (Technology): Roy SUPRATEEK Business Analysis: Michinori FUJITA

2. Introduction Linkage between AM&KM and EFQM (KBAM-based EFQM) Current situation (Continuous improvement ) Proposal for WRs (AM-based ) Solutions for WRs (KM-based + system-based) Conclusions (Effectiveness-based)

3. Contents of the Proposal • WHY • Necessity • Modeling by EFQM and criterion of A&KM • Areas to be Improved by A&KM • Current Situation of A&KM • Analysis of WAVERIDERS • Areas to be Improved by A&KM • HOW • Proposal • Facility Management • Security • Health & Safety • Environment Management • Life cycle Management • Maintenance • Resources Utilisation • Knowledge Management • WHAT • Solution • System Integration ,to control production • Knowledge Integration, using KM materials

4. 1. The Importance of A&KM, from EFQM point of View

5. EFQM Frame work ,& A&KM EFQM Enablers Results Leadership People Processes People Results Key Performance Results Policy & Strategy Customer Results Partnerships & Resources Society Results Innovation & Learning Reference: EFQM(2009) A&KM Reference: Roberts (2011) http://www2.warwick.ac.uk/fac/sci/wmg/ftmsc/modules/modulelist/kbam/sessions/

6. A&KM meets EFQM Criteria of A&KM inside EFQM AM Utilisation Developing KM Outcomes from AM Results from KM Enablers Results Leadership People Processes People Results Key Performance Results Knowledge & HR Knowledge Enabling Knowledge Sharing Policy & Strategy Customer Results LC Partnerships & Resources Society Results Facilities Assets & Resources Environment H & S Securities Innovation & Learning Improvement of AM Improvement of KM Reference: Adapted from EFQM(2009)

7. Knowledge Enabling on EFQM (people) Knowledge Enabling Process on EFQM Knowledge Enabling Formula ∴Development of KM = f ( L, S, P) L: Leadership S: Strategy P: People Developing KM Enablers Leadership People Processes Knowledge & HR Knowledge Enabling Policy & Strategy Appendix 1 Knowledge Components LC Partnerships & Resources Facilities Assets & Resources H & S Relationship between L, S, &P. LEARNING Leadership Knowledge & HR Knowledge Enabling Policy & Strategy Reference: Bhatt (2000) Reference: Adapted from EFQM(2009)

8. Knowledge Enabling on EFQM (Tech/Facilities) Knowledge Enabling Process on EFQM (Tech/Facilities) Knowledge Enabling Formula 2 ∴AM Utilisation= f ( L, S, T) L: Leadership S: Strategy T: Technologies/Facilities AM Utilisation Enablers Leadership People Processes Knowledge & HR Knowledge Enabling Policy & Strategy Appendix 2 Knowledge Components LC Partnerships & Resources Facilities Assets & Resources H & S Relationship between L, S, & T. LC Leadership Assets & Resources Facilities H & S Policy & Strategy Reference: Bhatt (2000) Reference: Adapted from EFQM(2009)

9. Knowledge Enabling on EFQM (Knowledge Based Asset Management) KBAM on EFQM KBAM Formula 2 ∴KBAM= 0.7f(L,S, P) +0.1 f ( L, S, T)+0.2pr AM Utilisation Enablers Leadership People Processes Knowledge & HR Knowledge Enabling Policy & Strategy Appendix 3 Knowledge Components LC Partnerships & Resources Facilities Assets & Resources H & S Relationship between KM & AM Knowledge & HR Knowledge Enabling LC Assets & Resources Facilities Reference: Bhatt (2000) H & S Reference: Adapted from EFQM(2009)

10. Knowledge Sharing on EFQM (people Results) Knowledge Sharing Process on EFQM Results from KM The Skandia’s Value scheme Results Processes People Results Key Performance Results Knowledge Enabling Knowledge Sharing Customer Results LC Society Results Facilities Environment H & S Securities Innovation & Learning Improvement of KM Reference: Edvinsson & Malone (1997) Reference: Adapted from EFQM(2009)

11. Knowledge Sharing on EFQM (Tech/Facilities) Knowledge Sharing Process on EFQM 2 Outcomes from AM The Skandia’s Value scheme Results Processes People Results Key Performance Results Knowledge Enabling Knowledge Sharing Customer Results LC Society Results Facilities Environment H & S Securities Innovation & Learning Improvement of AM Reference: Edvinsson & Malone (1997) Reference: Adapted from EFQM(2009)

12. Knowledge Sharing on EFQM (KABAM) Knowledge Sharing Process on EFQM Outcomes from AM Results from KM The Skandia’s Value scheme Results Processes People Results Key Performance Results Knowledge Enabling Knowledge Sharing Customer Results LC Society Results Facilities Environment H & S Securities Innovation & Learning Improvement of AM Improvement of KM Reference: Edvinsson & Malone (1997) Reference: Adapted from EFQM(2009)

13. SECI 3D model, regarding EFQM SECI Model Enablers Results Tacit Knowledge Tacit Knowledge Explicit Knowledge Explicit Knowledge Leadership People Processes People Results Key Performance Results Socialisation Externalisation Socialisation Socialisation Externalisation Externalisation Policy & Strategy Customer Results Tacit Knowledge Tacit Knowledge Socialisation Externalisation Group Combination Partnerships & Resources Society Results Intenalisation Intenalisation Combination Combination Explicit Knowledge Explicit Knowledge Innovation & Learning IIndividual Combination Socialisation Externalisation Continuous Learning Socialisation Externalisation Organaisation Combination Internalisationl Combination Internalisation Process Internalisation Individual Group Orniasansation Internalisation Reference: Adapted from Noaka & Takeuchi (1995)

14. 2. Analysis of Current Situation

15. Current Situation-Hull M Key Relationship FM Sec H&S Env LC Main RU EX K Tac K xx xx x xx xx x x x x xx x x x xx x x x x x x x x xx xx x x x x x x xx xx x x x x x x xx x x xx x x xx xx x xx x x x x x x xx x x x Total 13 7 7 6 14 6 3 9 12

16. Current Situation-Tube M Key Relationship FM Sec H&S Env LC Main RU EX K Tac K XX X X X X X xx x X x x x X xx x x x x xx x x xx x x xx x x x x x x x x x x x x x x x x xx x x x x x x xx xx x x xx x x x xx Total 15 2 5 5 12 7 7 3 12

17. Current Situation-Hull & Tube Key Relationship FM Sec H&S Env LC Main RU EX K Tac K XX X X X X X X x X x x x x x x x x x x x x x x x Total 5 0 1 1 4 4 4 2 4

18. Summary 1 from Analysis of AM The key relationship with KBAM Summary of AM

19. Summary 2 from Analysis of KM Summary of KM Allocation of KM Hull Manufacture Tube Manufacture Assembly

20. 3. Proposals for WAVERIDERS

21. Proposal.1 : Facilities Management Investing FIMS to control and manage facilities, effectively CAFM Sys support Function of the Sys: Data collection Storage of data Analysis of data Effectiveness of FIMS: 1. Capacity control 2. Reduction of lead time 3. Cost reduction FIMS Data Collection Make better decisions Process Input Out put Hull 2 proposals for Facility Management Tube To introduce FIMS, as a solution using outsourcing, which is expected: reduction costs Gain better results Increase flexibility Focus on core skills Assembly Learning Feedback Emergency Planning, to reduce risks of the production Reference: Adapted from Alexander (1996)

22. Proposal.2 : Securities 5 proposal contents for Security ManagementFor WAVERIDERS 10 Domains of Information Security Management Establish Security Policy in every Manufacture Lines Priority of the Assets Class Set-up of Compliance Policy (the detail of regulation, which should include KPI) Operational Rules / Manuals Regular Biz Analysis mtg Reference: Based on Saint-German (2005)

23. Proposal.3 Health & Safety 2 proposals of H&M Management For WAVERIDERS Incidence Spiral Incidence CHECK -Incidence affects costs & time of production -H&S represents ‘Managing incidence (risk management)’ Financial result Time Costs Productivity Reference: Panasonic Global http://panasonic.net/csr/employee/fun/lab/index.html#section01

24. Proposal.4 Environmental Management 2 proposal contents for Environmental ManagementFor WAVERIDERS Strengthen the Design line for making Environmental-friendly Products Add-Function for Reuse/Recycle/Repair lines WAVERIDERS CSR Areas in 2011 Production Process Product Consumption Disposal Current Areas of CSR for WAVERIDERS Waste Waste Waste Energy/Material Pollution Capture Disposal WAVERIDERS CSR Areas in 2020 Design for Life-cycle Production Process Product Consumption Disposal Future Areas of CSR for WAVERIDERS Reuse of Waste energy & by-products Reuse Recycle Repair Min Waste Reference: Based on Christie et al(1995)

25. Proposal.5 Life Cycle Management 2 proposal contents LCMFor WAVERIDERS Precise estimate of Life cycle and total costs of WaveRiders’ Assets, using Central System, with KM Precise estimate of costs & benefits, using Central system with KM LCM Terotechnology Life Cycle Cost Control Collect & analyse data Assets Life Cycle Cost • Initial Cost Quality HR Sales • Maintenance Cost • others Central System to Control and Evaluate Cost & Benefit Cost Costs Sales Volume Break Even Point Analysed& Estimate Estimation/Evaluation Cost Process of Discounting • Support Operational Decision Making Sales (profit)Estimation Cost Estimation Reference: Based on Boussbaine(2004)

26. Proposal.6 Maintenance 2 proposal contents for Maintenance For WAVERIDERS Se-up of Maintenance Team: Daily Prevention, Health Checkups, Early Treatment Grps Three different functions should be controlled by Head of Maintenance, in order to Share KM from AM. WAVERIDERS Maintenance team WAVERIDERS Maintenance Teams Daily Prevention Grp Production Lines Hull Tube Hull & Tube Assembly Health Checkups Grp Findings Findings Findings Early Treatment Grp Reference: Based on Christie et al(1995)

27. Proposal.7 Resource Utilisation 2 proposals Resource Utilisation For WAVERIDERS WaveRiders should create scheduling, using central system control effectively Estimate demand precisely, and purchasing materials Just In Time (JIT) Scheduling of Resource Utilisation Objectives Strategy Sea Spray Sea House Demand Target Estimation Forecast Sales EST Sales EST Central System Control Condition Capacity Production Time Production Inventory Control Material Row Material Inventory Components JIT Deliveries Purchasing Assembly Production Line Reference: Based on Tersin(1994)

28. Proposal.8 Knowledge Management 2 proposal contents LCMFor WAVERIDERS Establish KM specialists inside WaverRider, to share, store, distribute, and apply Knowledge. Special Education program should be introduced, for creating KM specialists Creating KM specialists (eg. Six Sigma Black Belts system, etc) Education Package KM Specialists KM Specialists Outsourcing (professional) Education Contents Education systems Education Places Internal KM Specialists KM Specialists Reference: Nonaka& Takeuchi (1995 :169),& Drucker (1988 :3)

29. 4. Solutions for WAVERIDERS

30. Solution 1: All in One System of Production, Sales, Financial, &ERP WaverRiders’ Next Step Proposed Solution 1 All in One Control system EDEⅡ • Systemise the Process & Flow • Effective Production Control • Cost Reduction • Productivity UP EDE2 can control and manage the production line daily, due to collecting the data lively, and it can integrate financial, HR, and other system to one central computer system. EDE2 can reduce the cost and fee of maintenance, and relevant costs (maintenance staff wages & others). Market Trend • Short Life Cycle • Competitive Market • Wrong Estimation • The Importance of Maintenance and service EDEⅡ 50Users:£30,000

31. System Introduced: EDEⅡ Vendors Price Management Process Parts of WaveRiders Ordering Control Stock Control Procurement Purchasing Control Production Design Control Arrangement Control Manufacturing Production Control System Process Control Production Control Process Deployment Capability Assessment Financial Accounting System Wage & Salary System Receiving Control Shipping Control CF in CF out CF in Sales Payment Supplying Financial Parts of WaveRiders Inventory Management Payable Management Receivable Management Sales Control

32. Solution 2: Work Shops for Sharing & Enabling Knowledge for WaveRiders Looking for (free) workshops sponsored by suppliers that introduce new products and hence new techniques for the staff. This can also allow the staff to be out of routine and “network” with important stakeholders (suppliers).This workshops attendance should be voluntary to avoid waste Works Shop (Outsourcing Program) Education Programme ‘ADAM 3’ Internal Conference Annual Conference ‘Tom-Cat’ Program Program • Case study using other real company • Training Programme, based on AI • Linked to University Education Programme • Discussion with Board Member • Case Study from experience • Brain storming with other functions • Review the process • Origanise the new idea to Management Effectiveness Effectiveness • Inspired by external Knowledge • Positive approaching Style • Academic references • To Collect the knowledge form Genba • To Share tacit knowledge • To enable knowledge from other points • Team rebuilding • Mind set

33. Educational Programme Introduced: ADAM 3 Education Style: Study via Exercises MELO3 Series. 1 Risk Management MELO3 Series. 2 Strong Leadership MELO3 Series. 3 Beyond your Imajination MELO3 Series. 4 Risk Management MELO3 Series. 4 Risk Management MELO3 Series. 4 Risk Management MELO3 Series. 4 Risk Management MELO3 Series. 4 Risk Management MELO3 Series. 4 Risk Management • Active attitude toward study • Team Building • Have Fun • Well-Discussion • Practical Training Education Contents, based on Msc. MBE, Uni Warwick Tuition Fee: 1. ADAM Specialist Package (8 weeks) £10,000 (incl. VAT) 2. ADAM Basic Package (4 weeks) £8,000 (incl. VAT) 3. ADAM Selection (1week) £3.000 (incl. VAT) 4. 1 Day ADAM Package (System) £1,000 (incl. VAT) 5. 1 Day ADAM Package (Skill-UP) £1,000 (incl. VAT) Professional Faculties Yukari Edwards is an engineering designer on A-3 Education Systems. He has a M.A. in Management For Business Excellence from Warwick University and a PhD from the joint graduate program in Communication and Business Management with Harvard and Warwick Universities.

34. Internal Conference: TOM-Cat Conference Style: Discussion DiscussionDiscussion • Discussion Style • Creating Knowledge • Sharing Knowledge • Understanding with each other • Team Building Tacit Knowledge Explicit Knowledge Socialisation Externalisation Tacit Knowledge Main Purpose: Knowledge Transfer via Discussion Intenalisation Combination Explicit Knowledge • Share Tacit Knowledge • Combine Tacit & Explicit Knowledge • Internalise Explicit Knowledge • Facilitate Discussion by Professional Facilitator Tuition Fee: 1. TOM-CAT Specialist Package 3Days £10,000 (incl. VAT) 2. TOM-CAT Package 2Days £8,000 (incl. VAT) 3. TOM-CAT 1Day £3.000 (incl. VAT) Professional Facilitators TOM & CAT are special Facilitators in the UK. They mainly focus on working with clients for a long term, to facilitate their goals, step by step. Tom is handsome. CAT TOM

37. References • Alexander, K. (1996). Facilities management: theory and practice. (S. P.–1. pages, Ed.) Abingdon: Taylor & Francis. • Annansingh, F., Eaglestone, B., Wakefield,, R., & BaptistaNunes, M. (2006). Knowledge management issues in knowledge-intensive SMEs. Journal of Documentation, 62 (1), 101 – 119. • Boussabaine, H., & Kirkham, R. (2004, January 28). Whole Life-Cycle Costing: Risk and Risk Responses. 1-243. • Bhatt, G. (2002). Management strategies for individual knowledge and organizational knowledge. Journal of Knowledge Management,, 6 (1), 31 – 39. • Davenport, T., & Prusack, L. (1998). Working Knowledge: How Organizations Manage What They Know. • Drucker , P. (1988, January-February). The Coming of the New Organization. Harvard Business Review , 3. • Edvinsson , & Malone . (1997). Intellectual capital: Realizing your company's true value by finding its hidden brainpower. p. 211-216. • Emblemswag, J. (2003). Life-cycle costing:using activity based costing and Monte Carlo methods to manage future costs. (Willey, Ed.) N.J.: Hoboken. • Enzine @rticles. (2011). Organizational Policies and Procedures - What You Need to Know . Retrieved March 31, 2011, from EzineArticles.com: http://EzineArticles.com/3181771 • GOOGLE IMAGES. (n.d.). Retrieved March 31, 2011, from http://www.google.co.uk/ • Legard, R., Heather, R., & Christie, I. (1956). Title Cleaner production in industry : integrating business goals and environmental management. (P. S. Institute, Ed.) 0853746192. • Nonaka , & Takeuch . (1995). he knowledge-creating company: How Japanese companies create the dynamics of innovation. 96-104. • Panasonic Global. (n.d.). Retrieved April 2011, from http://panasonic.net/csr/employee/fun/lab/index.html#section01 • Saint-German. (2005, July/August ). The Information Management Journal , p.60-66. • Pollard, D. (2003). The future of knowledge management: discussion paper. • Tersine, & Tersine, R. (1994). Principles of inventory and materials managment . (P.-H. International, Ed.) 591. • Wexler, M. (2001). The who, what and why of knowledge mapping. Journal of Knowledge Management, 5 (3), 249 - 264. • Wenger , E., & Snyder , W. (2000 ). Harvard Business Review . • WMG-MBE Home page. (2011, March). Retrieved March 31, 2011, from http://www2.warwick.ac.uk/fac/sci/wmg/ftmsc/courses/mbe-home

38. Any Questions?

39. Thank you very much!! Let’s talk about your future! VP & Senior Consultant: Edelon MELO Senior Consultant (Strategy): Thomas JOHN Senior Consultant (Operation): Miia ZHANG Senior Consultant (HR): Yaqin ZHU Senior Consultant (Technology): Roy SUPRATEEK Business Analysis: Michinori FUJITA • A-3 Consultancy Firm, Plc • University Road,Coventry CV4 7AL, UKTel: +44 (0)24 7652 3523Fax: +44 (0)24 7646 1606