Developing WaveRiders approach to Knowledge and Asset Management to meet the Criteria of EFQM

1. Developing WaveRiders approach to Knowledge and Asset Management to meet the Criteria of EFQM Group B 2 Jerry, Nikhil, Kidd, Fabienne, Gurbani

2. Contents • Current status of WaveRiders • Knowledge Management • Concept of Knowledge Management • Learning Organisation • Asset Management • Maintenance • Facilities Management • Life Cycle Management • Security • Health & Safety and Environmental Management • Budget • Timeline • Final Result for WaveRiders

3. Current Status of WaveRiders • Costs are too high • Cases of Overproduction • Possibility of savings in distribution • No clear future strategy • New product development, like engines, clothing and accessories • No communication network or knowledge base within the company • Employees concerned about redundancy • Unsafe working environment

4. Knowledge Management Knowledge Management Concept Learning Organization

5. Knowledge Management Concept The concept of Knowledge management focuses on the life-cycle of knowledge process where knowledge is generated and then stored so that it can be distributed and applied within an organisation. • WaveRiders Knowledge Management GOALS: • Transform tacit knowledge into explicit knowledge • Develop and Implement knowledge management system for WaveRiders

6. Benefits of Knowledge Management for WaveRiders • Creates a learning environment • Facilitates better Inventory and Maintenance Management • Ensures Shared Vision and Culture within all the organisational levels • Enriched understanding of customers needs, requirements and expectations • Enable the company to quickly adapt to changes • Enable the organisation to identify and take advantage of opportunities and learn from its mistakes • Increase in intellectual assets and corporate value

7. Currently, there is no effective system in place for the company to adequately manage its knowledge resources. .

8. Practices to convert tacit knowledge into explicit knowledge • This is basically “how” the knowledge-creating company’s, structures and practices translate a company’s vision into innovative technologies and products. • Western View: • Organization is “a machine for information processing” • Useful knowledge is: • Formal and systematic, Quantifiable (“hard”), Easily measurable • Japanese View: • Use of slogans, Tacit insights, intuitions, and hunches of employees, Company is not a machine but a living organism, “Everyone is a knowledge worker” • WaveRiders will convert tacit knowledge into explicit knowledge by following the Japanese View and will create knowledge by: • by linking contradictory things and ideas through metaphor; • then, by resolving these contradictions through analogy; and • by crystallizing the created concepts and embodying them in a model, which makes the knowledge available to the rest of the company.

9. Knowledge Management and EFQM criteria • Knowledge management includes a people and IT focus • Leadership plays a crucial role in implementing knowledge management within organisations • Allows leaders to predict their future performance EFQM: 4e. Information and Knowledge are managed to support effective decision making and to build the organization’s capability.

10. Learning Organization • Areas in which change is required to become a Learning Organization • Vision • Culture • Strategy • Structure

11. Recommendations for Waveriders to become a Learning Organization • Creation of a vision: “To develop and maintain a sustained effort towards a culture of continuous improvement along with focusing on the creation of an environment where innovation and learning is encouraged.” • Create time, space and environment for learning and continuous improvement • Change in policies and structures within the organization • Establishment of a Centre of Excellence • Encourage managers to act as transformational leaders • Empowering and enabling the people of the organization • Career development plans

12. Case Study: Rover How Rover turned losses of $100 million into profits of $56 million by becoming a Learning Organization: • The management made it clear regarding the company’s commitment to learning and how this tied in with the strategy of the company as a whole • Establishment of Rover Learning Business in 1990 • Each employee attended a course in any area of their choice • Structured career development plan • The Rover New Deal

13. Asset Management Maintenance Management Facilities Management Security management Life Cycle Management Health & Safety and Environment Management

14. Maintenance Management • Strategic planning • Identify objectives, functions, process to meet stakeholders’ requirements • Enhance competiveness through effectiveness management • Asset Operation • Utilize the current asset and feedback on it • Achieve efficiency and quality under operating conditions • Maintenance • Fulfill workable function, technical refreshment, condition improvement • Review asset configuration to fit to Strategical objectives • Make value adding in manufacture and end up with satisfying level • Ensure efficiency and longevity to retain asset or decrease rate of deterioration • Replace/ Disposal • Enhance service through reconstructing/ replacing existing asset; • Continuous improvement in order to provide service

15. Maintenance Process associate with knowledge asset

16. Material Requirement Planning • Material Requirement Planning – A tool to help answer: • What? How many? And when items are required? • Improvement of inventory turnover, Inventory control, production planning, manufacturing control • Factory-Master Case Study – Benefits of MRP • Greater proactivity • Time saved identifying and ordering requirements • Forecasting results in shorter lead times • Confidence to manage expansion Forecasts Customer Orders Engineering Changes Transactions

17. Lean thinking in maintenance

18. Asset Management and EFQM

19. Policy Deployment

20. Facilities Management – Introduction • WaveRiders currently has no Facilities Management in place. • It is important to manage assets in support of WaveRiders’ core business activities. • We recommend a Facilities Manager being employed by WaveRiders who will have the experience and expertise needed to manage the company’s needs. • Benefits of introducing Facilities Management: • Increased employee productivity • Efficient management of property and space in the company • Costs may be minimized, while always predicted and in the long-run, capital expenditures are planned and controlled.

21. Facilities Management – Case Studies • Process and Engineering savings plan - Major Industrial Company: • Immediate increase in productivity of 35% • Deliverables, milestones and plans clearly defined • £1m cost reduction • Staff turnover reduced by 50% within first 6 months • Top Technology House • Cost Savings 17% • Supplier improved service levels • Better use of the workspace resulting in improved staff productivity • International Pharmaceutical Company: • First-Year savings of 30% • Year-on-year savings of 12%

22. Outsourcing – Fleet Management • Improved transportation management will work to reduce time, costs and final customer satisfaction. • Ensure vehicle specifications are met. • Most efficient routes (and trips) are taken to reduce total fuel consumption. Introduction of live GPS system which can monitor changes in traffic.

23. Facilities Management – Emergency Planning • No emergency plan in place • An emergency plan needs to be developed so that the company can respond efficiently and quickly to any potential emergency situation. • Draw together experience and knowledge to identify potential threats. • 5 phases in implementing the plan (Reuvid and Hinks, 2002): • As a result a solid plan will be in place, the correct people will be contacted and necessary measures will be taken within the organization to control the problem.

24. Facilities Management – Information Systems • Computer-aided Facilities Management deals with automated tools which increase the productivity within FM. Can assist with the following we have already and will soon discuss: • Space management • Internal communications • Maintenance • Security Systems • Life Cycle costing Alexander (1996)

25. Security • Virtual Security and Physical Security Organizational Operational

26. Security • Both Physical and Virtual Security need to be addressed for the protection of the company. • Virtual: • Introduction of username/password protected information system. • Authorization – Controlled access throughout system. • Data back-up policies to be introduced. • A session with employees of what is acceptable/unacceptable within company computer facilities. • Physical Security: • Introduction of CCTV cameras • Security Patrols • Lone worker policies • Access control • Reception tasks

27. Life Cycle Management • The process of managing the lifecycle of a product. • Some of the Benefits: • More efficient use of materials • Ability to identify potential sales opportunities. • Better control of the finances within WaveRiders

28. Life Cycle Management

29. Health & Safety Statistics Lastest key annual figure in UK 2010/2011 • 1.2 million working people were suffering from a work-related illness. • 171 workers killed at work. • 115 000 injuries were reported under RIDDOR. • 200 000 reportable injuries (over 3 day absence) occurred (LFS). • 26.4 million working days were lost due to work-related illness and workplace injury. • Workplace injuries and ill health (excluding cancer) cost society an estimated £14 billion (in 2009/10) • Accidents and ill health are costly to company workers and their families

30. Health & Safety Management • Key elements of Successful Health and Safety Management Source: HSE,2008

31. Health & Safety at Work Act 1974 Employer Responsibilities • Establish healthy and safe systems of work and a safe working environment • Provide information and necessary training to ensure employees’ health and safety • Provide safe plant, machinery, equipment and appliances Employee Responsibilities • comply with general workplace policies and procedures on attending mandatory training sessions provided by Wave Riders. • Appoint a health and safety representative from the workforce

32. Risk Management • Health & Safety at work is not a one-off situation it is part of a constant cycle. Most of which takes place before you even commence work on site • This is Wave Riders responsibility to identify potential risks and hazards in the workplace, for example through Environmental Risk Assessment How to assess the risks the work place: • Step 1: Identify the hazards • Step 2: Decide who might be harmed and how • Step 3: Evaluate the risks and decide on precautions • Step 4: Record your findings and implement them • Step 5: Review your assessment and update if necessary Source: HSE 2011

33. Environmental Management • EFQM criteria 8 (Society Results) states : • Excellent organisations comprehensively measure and achieve outstanding results with respect to society • A long-term goal of EM systems (EMS), like that of QM systems, is to move towards a proactive, preventive stance through the incorporation of environmental issues into product design, technology-related decisions, the entire manufacturing process and customer service. (Tari and Molina-Azorin, 2009)

34. Environmental Management System (EMS) • EMS structure is commonly referred to as Plan Do Check Act • A measureable continual improvement • This is recommended Wave Riders should follow the structure provided by ISO 14001

35. ISO 14001 – Effective EMS for Wave Riders • An internationally accepted standard • Designed to address the balance between maintaining profitability, reducing environment impacts and risks Benefits for WaveRiders of using EMS • Reduce operating costs through waste reduction, energy conservation, and other saving • Reduced legal risk and potential liabilities – Fewer fines and other regulatory complications over time since regulatory requirements are identified and met • Increase employee awareness and accountability • Create a positive image for Wave Riders – Enhances customer trust

36. Costs • Establishment of a Centre of Excellence: £100,000 • Career development plans: £50,000 • Maintenance p.a.: £11,000 (Edwards, Holt, & Harris, 2000) • Training employees in Health and Safety: £18,000 • Security: £10,000

37. Knowledge and Asset Management Time Implementation Plan • Gantt chart to show how we advise time to be spent on these implementations:

38. The Future of WaveRiders • WaveRiders will become a Learning Organization • Regular maintenance plan in place. • Transportation Outsourced. • Controlled finances • Increased employee productivity • Managed facilities • A Safe, Secure Environment to work in for all employees and customers. • WaveRiders : you are on your way to Excellence!

39. References • Burton, I. "Factory-Master Case Study: The Benefit of Material Requirments Planning (MRP)." CompeteIt, n.d. • Park, A. Facilities Management: an explanation. Basingstoke: Macmillan, 1998. • Property & Facilities Management - Case Studies. 2012. 19 April 2012 <http://www.haywardsllp.co.uk/case-studies/property-facilities-management-case-studies>. • Saint-Germain, R. "Information Security Management Best Practice Based on ISO/IEC 17799." The Information Management Journal (2005): 61. • Davies, C. & Greenough, R.M., 2003. Measuring the effectiveness of lean thinking activities within maintenance. White paper, http://www. plant-maintenance. com/articles/Lean_Maintenance. pdf (accessed 4 January 2005). • Haider, A., Koronios, A. & Quirchmayr, G., 2006. You cannot manage what you cannot measure: an information systems based asset management perspective. Engineering Asset Management, pp.288–300. • Kedar, A.P. et al., 2008. A Comparative Review of TQM, TPM and Related Organisational Performance Improvement Programs. In Emerging Trends in Engineering and Technology, 2008. ICETET  ’08. First International Conference on. pp. 725 –730. • Martín-Castilla, J.I. & Rodríguez-Ruiz, Ó., 2008. EFQM model: knowledge governance and competitive advantage. Journal of Intellectual Capital, 9(1), pp.133–156.

40. References • Tersine, R.J., 1994. Principles of Inventory and Materials Management 4th ed., Englewood Cliffs, N.J. ; London: Prentice-Hall International. • Zhu, G., Gelders, L. & Pintelon, L., 2002. Object/objective-oriented maintenance management. Journal of Quality in Maintenance Engineering, 8(4), pp.306–318. • Nonaka, I (1991), ‘The knowledge-Creating Company’, Harvard Business Review, Vol.69, Iss:6, pp.96-104, Business Source Premier, EBSCOhost, viewed 26th April 2012 • Mario J. Donate, J. Ignocio Canales, (2012) ‘A new approach to the concept of knowledge strategy’, Journal of Knowledge Management, Vol. 16, Iss:1, pp.22-44, viewed 26th April 2012 • WorkSafeBC (2008), How to Implement a Formal OHS Program, [Online], Available at: • http://www.worksafebc.com/publications/health_and_safety/by_topic/assets/pdf/howtoimplement_ohs.pdf (assessed on 22/4/2012) • Epa (2011), Environmental Protection Agency, [Online], Available at: http://www.epa.gov/ems/ (assessed on 23/4/2012) • DOE (2011), U.S. Department of Energy, Joint Environmental Management System, [Online], Available at: http://www.lm.doe.gov/default.aspx?id=4271 (assessed on 23/4/2012 • Alexander, K. (1996). Facilities management: theory and practice. Abingdon: Taylor & Francis • Kinsella, J. & McCully, A.D. (2005). Handbook for implementing an ISO 14001 Environmental Management System, 3rd Ed. Bothell, WA: Shaw Environmental • Scarrett, D. (2010). Property asset management, 3rd Ed. London:Routledge