Knowledge-based asset management: Waveriders

1. Knowledge-based asset management: Waveriders By A3 Consultancy inc.

2. Efqm, knowledge and asset management Criteria 4c. Buildings, equipment, materials and natural resources are managed in a sustainable way. Criteria 4e. Information and knowledge are managed to support effective decision making and to build the organisation’s capability.

3. Waveriders Current Situation • Need to provide high quality and timely information for decision‐making • No solid or formal system to capture knowledge • Need radical change to tackle growing competition. • Lack of knowledgeable facility manager, unsophisticated emergency plan, poor fleet management • Incompetent information system management • Reported breach/ unauthorized access to confidential information and data • Need for log of access to controlled areas • Aiming to enhance working environment and reputation in local community • Aiming become more cost effective – lifecycle managements and reduce compensation claims, minimize breakdown costs - better maintenance

4. Knowledge Management (KM) • Criteria 4e. Ensure accurate and sufficient information for key decision makers in a timely manner; Transform data into knowledge that can be shared and effectively re-used. • Why KM? • Helps deliver sustained achievement – Basis of growth shifts from natural resources and physical asset to knowledge • KM helps improve communication and minimize rework • Helps acquire and retain intangible assets– can be deployed to maximize value • Creation of appropriate “no-blame” culture • In house/ on the job training • Implementation Plan – 8 Steps

5. Implementation plan for Waveriders’ Knowledge Management • Step 1: Analyzing existing infrastructure • Step 2: Aligning KM and business strategy • Step 3: Designing the KM architecture, and integrating existing infrastructure • Step 4: Auditing and analyzing existing knowledge • Step 5: Designing the KM team • Step 6: Developing the KM system • Step 7: Pilot testing • Step 8: Leadership and reward structures

6. Facility Management • Process by which an organisation can maintain, improve, and deliver high quality working environment and support services, both of which are crucial vehicles driving the organisation to meet its core objectives most cost effectively (Alexander 1994; Barrett & Baldry 2003) • Facility management contributes to increased efficiency, higher quality and ability to reach set targets by ‘gluing’ the different functions of an organisation together (Payne 2002)

7. Linking FM to KM

8. FM Plan of actions • Step 1 • Build a no‐blame culture • Hire a facility manager – of high caliber and competencies • Raise awareness of and the links between KM and FM • Provide support and training required • Benchmarking against ‘industry best practice’

9. FM Plan of actions • Step 2 • Establish an emergency plan encompassing machine/ technology; external/ natural disaster; and internal areas of concern. • Develop an in-­‐house fleet management department: Vehicle leasing, Route calculation software, Speed and fuel management, Adopt GPS system • Hire an IT personnel - information system management and collaborate with Micromain in regards to Waveriders’ CAFM • Outsource non‐core activities that are little value-adding and are susceptible to demand fluctuation i.e. delivery of large load, etc.

10. FM Plan of actions • Step 3 • Ongoing support and training for new knowledge and tools • Improve upon the 360 degree feedback • Review emergency planning • Evaluate and improve fleet management • Review and expand IT department? Revision of software – keep updated • Review outsource contracts – performance meet standard? Competitive pricing

11. Life Cycle Management • To increase responsiveness to the fast changing pace of current business environment, we propose the Life‐Costing methodology: • Unifying issues facing an asset on the cost basis - an aggregate of the cost and financial benefits of an asset over its life time, from design to disposal. • 4 Steps: Define the system, requirement, and alternatives; cost estimation; discounting and cost profiling; evaluation of alternatives and identification of preferred options • Concerns: issues that cannot be simply reduced to cost (i.e. qualitative aspects) – different cost/ valuation techniques, etc. • May provide distorted view/ analysis, but gives a good financial overview of a project over its life time

12. Recommendation • Step 1: Establish a lifecycle management policy – considers prospects from design through to final disposal • Step 2: Hire or train professionals – do the maths; costs VS future financial benefits using (NPV) – evaluate alternatives and identify preferred options • Step 3: For every major or financially significant project, implement an assessment of lifecycle costs EARLY – identifying the most cost effective option & control • Step 4: Feedback to the Knowledge Management System – major cost drivers are updated and the most cost-­‐effective options are always being explored

15. Resources utilisation management Strategy • EFQM • Policies • & • Approaches • Issues

16. Issues • Our assessment shows us there is an inventory issue in Waveriders’. According to financial results the stock value is £1,764,128 in the last year. • Another issue which Waveriders’ should consider is future market demand increasing and the company should manage sources more effectively.

17. POLICY • “The right material, at the right time, at the right place, and in the exact amount” LEAN

18. Scheduling • AccurateForecasting • Capacity Utilisation • Inventory • On time delivery • Improve the utilization of raw materials MRP

19. Workplace • Keep workplace tidy • Concentrate the quality • Workforce • Reduce human error • Cross functional teams EDGE

20. Employees Dedicated to Growth and Excellence(EDGE) Approach • “It is a business system that engages employees to make their work safer and easier” • Employees were asked to identify problems. • The EDGE Steering Committee determined the priority of the • problems to fix • EDGE teams were created and they found root causes and • proposed solutions • The EDGE Steering Committee determined what suggestions • would be implemented • Employees applied tools such as Kanban • Case study: Hickory Chair Company

21. QualityPolicy • «Getthingsrightthefirst time» • Helping define andimproveourproductsthroughinvolvementwithouremployees. • Continouslyresearchingimprovementtoaddtothequality of ourproducts • RewardPolicy • «Contribution, contribution, contribution» • Any idea whichaddvaluewill be remunerated. • Team work will be rewarded.

22. Summing up resources utilisation • Awareness of inventory is waste. • EmployeesDedicatedtoGrowthandExcellence(EDGE) • Start withsmall risk-free pilot projects.

23. Resources utilisation management Finally • EFQM • Policies • & • Approaches • Issues

24. Maintenance

25. Maintenance

26. 5S JAPANESE MANAGEMENT METHODOLOGY TO COMPLIMENT MAINTENANCE STRATEGY • Sorting: Unnecessary tools should be disposed or recycled and separated from useful tools. • Stabilizing/Straightening out: Equipment and tools should be stored in a safe place; there should be room for all equipment. • Sweeping/Shinning: Equipment should be cleaned and stored in a well organised manner in a tidy area. • Standardizing: Maintenance practises should be consistent and standardised. • Sustaining the practise: Maintenance practises should be maintained and reviewed on a regular basis (every 3 months) • Hubpages (2012)

27. Current Security issues • No data protections • Stealing information • Breaching company’s confidentiality • (Scenario faced by the consultancy firm) • Access limitations (Who and how access controls) • Research and Development room • Drawing room (CAD and Designers) • Finance office • Director’s office • Fire and emergency safety systems • Risks of back up facilities and emergency plans

28. Security Policy & Solution Packages • Be able to manage the security to a high level of standard • There are two main types of security packages: - • Physical • Virtual

29. physical • Software • Firewalls • Antivirus • Security dogs • Security guards • Buildings • Various areas of the plant • CCTV • Back up policies • Cloud Services

30. Virtual security • USB Encryption • IP Encryption • Drawing and CAD Encryption • Financial data • Company data • Company Website

31. Training program • Period of training • Training is required to increase the knowledge of the software that is to be implemented • Training is required to understand the encryption of data

32. Benefits of security • Secured information transfer from person to person • Securing information protection from competitors • Helps avoid duplication of information • Efficiency • Agility

33. environmental • The incorporation of corporate social responsibility to help all products go green in Waveriders.

34. Environmental issues • Chemical waste • Material waste • Engine utilization • Lower Carbon Dioxide • Recycling • Material • Going Green • Waste

35. Environmental solution packages • ISO 14000 Standard • ISO 14001 – Environmental Management Systems • This standard gives you guidelines or like a framework it doesn’t tell how to do it and but tells you what to do!!

36. Environmental benefits • Company Reputation • Sustainability • Could reduce costs if gone green • Reputation in counsel

37. Thank you • Q&A