Introduction of Knowledge-Based

Asset Management to WaveRiders

Team A3Hamed – Meenal – Jason – Neo – Omm - Ivy

OverviewIntroductionKnowledge-Based asset management criteria in the EFQM modelAsset Management

Facilities ManagementSafetyMaintenanceEnvironmental Management

Recommendations of implementing Knowledge ManagementConclusionReferences

IntroductionKnowledge management is a real buzz with companies now.Main challenge though is even though they know its really important , but the process to achieve that is still very difficult for themAssets are More than a physical thing: can exist as contracts between legal entities, intangible. E.g. securities, patents, stock exchanges which can bring capability value and financial value

Hence, Knowledge-based asset management is very crucial to every company to ensure all those assets are managed and the knowledge are well distributed within the employees.

The Excellence Model – Starting with results Results

Enablers

Key performan

ce result

s

People Results

Customer Results

Society Results

Processes

People

Policy and Strategy

Partnerships and

Resources

Leadershi

p

Innovation and learning

The model in practice 2, 2005, p.20

EFQM CriteriaWave Rider is trying to expand their share market in Europe

And for our presentation, Wave Riders need to achieve a higher return on capital investment in the resources of the business.

EFQM criteria to meet the resources requirements: External partnerships are managed

Finances are managedBuildings, equipment and materials are managedTechnology is managedInformation and knowledge are managedAssumption: Improvement need identified in Buildings, equipment and materials.

The model in practice 2, 2005, p.78-86

EFQM Criteria continuedCriteria to met to satisfy buildings, equipment and materials.

Utilising assets in support of policy and strategy

Managing the maintenance and utilisation of assets to improve total asset life cycle performance

Managing the security of assets

Measuring and managing any adverse effects of the organisations assets on the community and employees

Optimising material inventories

Optimising consumption of utilities

Reducing and recycling waste

Conserving global non-renewable resources

Reducing any adverse global impact of products and services

The model in practice 2, 2005, p.82

OutsourcingSince WaveRider will be new in the EU market,

We would suggest a short term and long term plan.

Short term plan:Outsource experts in the market and technology boat market in the EU

Long term plan:Train your people and by adopting Knowledge management they will be able to use the knowledge so they can be independent in the future.

Outsourcing For Wave Rider

Marketing department ---- Market research consultant.

Product department ---- high technology1. outsource Electric Boat technology from “

Duffy Electric Boat Company” 2. outsource the high technology of powerboats

from Stingray Boat Company

BenefitsWaveRider will have a better research to EU from the expertsInsure better quality products by outsourcing a well respected company.Faster development and start up Better Service

AL Heath. (2010). The Benefits of Outsourcing Facilities Management available from

http://ezinearticles.com/?The-Benefits-of-Outsourcing-Facilities-Management&id=4015919

[accessed at 12 April, 2010]

Information SystemBased on the strategic expansion, an information system connects stakeholders is needed (Suppliers, Wholesalers, Marketing Representatives, etc).Sharing information of manufacturing, sales, inventories, new technology, etc.Increasing efficiency and cost effective compared to traditional communication.Saving environment, building up a paperless working environment.Achieving knowledge in a better and broader way.Keeping up with the change of technology and giving correct response.Beneficial in the next 5-10 years

Information SystemSuppliers: Online Order System, Online Tracking System.Customers: Online Tracking System, Online Order system, Online Contact.Administration: Online Conferences, Online Monitoring.Employees: Blogs, Forums, Online Communication.Manufacturing: Instant Monitoring, Inventory Information, Delivery Tracking.

Health and SafetyRisk ManagementLook for the

hazard

Decide who might be

harmed and how

Evaluate the risk and decide

whether the existing

precautions are adequate or

whether more should be done

Record your findings

Review your assessment and

revise if necessary

Health and safety executives (2003). Five steps to risk assessment.

BenefitsMorale: Employee motivation and satisfactionBusiness Benefits: Preventing accidents and ill health

Reduce absences and sick leave Retain staff Organisation’s reputation Boost productivity and profit Reduced insurance premiums and legal costs

Economic: From financial perspective – damage to buildings/equipment, compensation payments, loss in production.

How to ensure better Health and Safety?

Training: educate the consequences of avoiding H&S

Leadership plays an important role to involve workers towards health and safety

Setting up an evaluation team to see what went wrong, so it doesn’t repeat in future.

Total Productive Maintenance (TPM)

Potential benefitsIncrease equipments effectiveness Better product quality and less scrap and reworkImproved operator motivation and moralClean and safe working environmentReduce breakdown maintenance work

According to the Illinois Manufacturing Extension Center research in 2004

Total Productive Maintenance (TPM)

AssumptionWaveRiders has employees in production:

Operators 20Supervisors 5

The average equipment failure rate: once every 1.5 monthsWaveRiders currently does not have any maintenance plan

Total Productive Maintenance (TPM)

Basic maintenance programInitial cleaning: eliminate dust and dirt on equipment bodyPrevent the cause of dust, dirt, and liquid spattering: improve the parts that are hard to cleanEstablish cleaning standards General visual inspection: refer to instructions in equipment manualStandardize the individual workplace: standards for cleaning inspection, data recording, tools maintenanceDevelop checklist

Total Productive Maintenance (TPM)

Draft proposed planGoal: reduce equipment failure to 1 times/2months or lessDevelop maintenance plan for each equipment, e.g. weekly cleaning for wood cuttersSupervisor in each team responsible for maintenance checklist and recordEvery equipments inspected and checked monthly

Environmental Management

Air

Sea creature

s

Ocean

Atmosphere

Toxic Waste

River

Vision

Achieve competitive advantage by creating an

environmental friendly product

Grades of environmental management

Reactive

Proactive

Hutchinson, A & Hutchinson, F (1997). Environmental business management: sustainable development in the new millennium. London:McGraw Hill

Method

Linear Model

Hutchinson, A & Hutchinson, F (1997). Environmental business management: sustainable development in the new millennium.

London:McGraw Hill

A waste minimization strategyGoodall,C (1999). The Green Guide for business: the ultimate

environmental handbook. Third edition.London: Profile Books.

Holistic Approach

Suggested Long term plan

Duration Action1-2 years Develop the company’s foot with the

environmental management systemsAchieve Grade 2

2-5 years Develop a continues environment improvement plan that covers on health of employees and the surrounding community, pollution of air, water and land and review those stepsAchieve Grade 3 and start with Grade 4

5-20 years and so on

Maintain a holistic approach to the environmental management that balance all the aspects mentioned beforeAchieve Grade 4 and 5

Benefits towards the company

• Desire for good publicity ( according to the Green Environment Foundation, Green safe products has shown a 40% increase in sales since 1995 in Europe and 55% in the USA ) so can be used as a marketing strategy.

• Avoid any fines, or any environmental law cases.• Avoid any insurance costs.• Cost Reductions, through savings in material and

energy use and waste disposal cost.

• Improve product quality.

• Reduce Risks within the employees.• Improve safety performance.• Satisfy the employees ethics and making them

enthusiastic to work for a good reason

• Management Morale: to have an environmental policy in which pride can be taken

• Staff morale: Mostly the pressure of adopting an environmental policy comes from a firm staff.

Hutchinson, A & Hutchinson, F (1997). Environmental business management: sustainable development in the new millennium.

London:McGraw Hill

The knowledge Cycle

Conway,S (2002). Unlocking Knowledge assets: solutions from Microsoft. Washington:Microsoft press

Learning Orginization

RecommendationWaveRiders Need to create a community of practice team that will be responsible for managing the knowledge based asset.

Communities of Practice

•Web Parts•Content Management•Communications•Taxonomy

• Leader• Sponsor• Knowledge workers team

Support People

Knowledge management team

Key Team members Role and knowledge BaseAccountants • Ability to help estimate the replacement cost of assets.

• Knowledge of the existing financing strategy, potential financial resources and challenges, and the need for rate changes.

Human resources • Ability to manage the knowledge that concern the employees and any training required.

Maintenance engineer • Responsible to manage all the maintenance knowledgeMarket analytic consultant ( outsource ) + in-team member

• Knowledge about the EU market•Competitor analytic knowledge•Customers requirement knowledge

Production design and development engineer ( outsource ) + in-team member

• Manage the assets and facilities knowledge that determine any decision to make the final products.

IT engineer Ability to determine the most practical way to collect, store, and present the information needed to make strategic decisions.

Health and safety Engineer

• Make sure the information gathered and interpreted by the employees are under the safety regulations

R&D • Ability to use all the information gathered for research and development reasons

Environmental engineer • Manage all the knowledge to deliver an environmentally friendly product

Interaction of the community of practice team with WaveRider

Knowledge Management Team

Conclusion“ There will come a time when you believe everything is finished. That will be the beginning” Louis LaAmourKnowledge management has been gradually unlocking the enterprises intellectual properties,

That’s why, its crucial for WaveRider to develop a solid knowledge management team to help the organization turn to a learning organization.

Knowledge lives

employees Brain

Paper Doc-uments

Electronic documents

Electronic knowledge base

42%

20%

20%

12%

o A study in 700 U.S companies shows that only a small portion of corporate knowledge is in a form that can be shared rapidly. The majority of knowledge resides in the brains of employees and in documents that are difficult to share.

oCompanies like, GE, BP, Microsoft, and many more has been using knowledge management as a key factor towards the road to excellence, and departments and teams and information system infrastructure has been created in those companies to ensure that KM is implemented. Dubrin (2007)

References • Goodall,C (1999). The Green Guide for business: the ultimate

environmental handbook. Third edition.London: Profile Books.• Hutchinson, A & Hutchinson, F (1997). Environmental business

management: sustainable development in the new millennium. London:McGraw Hill.

• Conway,S (2002). Unlocking Knowledge assets: solutions from Microsoft. Washington:Microsoft pres

• The model in practice 2: using EFQM excellence model to deliver continuous improvement. (2005). London:British Quality

• Health and safety executives (2003). Five steps to risk assessment.• Stylusinc (2008) What can I outsource available from

http://www.stylusinc.com/Common/Concerns/WhatToOutsource.php [accessed at 12 April, 2010]

AL Heath. (2010). The Benefits of Outsourcing Facilities Management available from http://ezinearticles.com/?The-Benefits-of-Outsourcing-Facilities-Management&id=4015919 [accessed at 12 April, 2010] Duffy boats company http://www.duffyboats.com/index.html [accessed at 12 April, 2010]Stingray boats company http://www.stingrayboats.com/ [accessed at 12 April, 2010] Amadi-Echendu. J et al (2007). WHAT IS ENGINEERING ASSET MANAGEMENT. presented at 2nd World Congress on Engineering Asset Management (EAM) and the 4th International Conference on Condition Monitoring, Harrogate, United Kingdom, 2007.

Hodkiewicz. M and Pascual. R (2006). Education in Engineering Asset Management – current trends and challenges. International Physical Asset Management Conference, Tehran, 28th -31st 2006.

Scholl. W, Konig. C, Meyer. B and Heisig. P (2004). The future of Knowledge Management: an international delphi study. Journal of Knowledge Management. Vol. 8. No.2. pp 19-35

Illinois Manufacturing Extension Center (2004). Total Productive Maintenance. Retrieved on 13th April, 2010 from IMEC Business Improvement Specialist website: http://www.imec.org/imec.nsf/All/Total_Productive_Maintenance?OpenDocument

Bamber, C. J., Sharp, J. M.,& Hides, M. T. (1999). Journal of Quality in Maintenance Engineering. Factors affecting successful implementation of total productive maintenance. 5(3), 162-181. Retrieved from Emerald database.Productivity Inc. (2008). Introduction to TPM: Objectives and Benefits. Retrieved on 13th April, 2010 from Productivity Inc. website: http://www.productivityinc.comKatila, P. (2000). Applying Total Productive Maintenance: Principles in the Flexible Manufacturing Systems. Retrieved from Lulea Tekniska Universitet database.Barclay, R. O., & Murray, P. C. (2000). What is Knowledge Management? Retrieved from Knowledge Management Associates databaseDubrin (2007). Leadership: reasearch findings, practice, and skills. Fifth edition. Boston:Houghton.