Wave Riders

3B Consulting“Your first step towards Business Excellence”

“The move towards EFQM”

Criterion 4

EFQM Framework

Customer

ResultsLeadershi

p

Processes Products

& Services

People

Strategy

Partnerships & Resources

People Results

Society Results

Key Results

Learning, Creativity & Innovation

Enablers Results

Knowledge Management

EFQM model, 2010

Agenda•Partnership & Resources & the

Management of Knowledge•Potential Benefits to Wave Riders•Current Wave Riders Scenario

▫Identification▫Analysis▫Areas for Improvement

•Steps towards Business Excellence▫Step by step plans

Structure

Partnership & Resources

Current Status

Identify Assets

Carry out Audit

Find areas for Improvement

EFQM Implementatio

n

AM & KM are implemented

as a continuing

process

The Future

Knowledge

•Companies▫Operate▫Maintain ledgers, box files▫Form teams▫Carry customized strategies▫Individuals carry out day to day guidelines▫Follow job objectives▫Ventures & projects

•Create Knowledge•This Knowledge can be re-used, assesses,

evaluated & effectively refined.

Importance of Knowledge•A Commodity•Companies offer knowledge at a price•Management, sharing, updating is vital•Leads to benefit to organization

“Knowledge is Power”Sir Francis Bacon

Knowledge Management

“Any idea or practice of creating, acquiring, capturing, sharing and using knowledge, where ever it resides, to enhance learning and performance in an organization” Quintas et al 1997

Asset Management- EFQM

•4C▫Identifying Assets in organization▫Managing the Assets to increase efficiency

and overall life-cycle cost▫Utilizing resources in eco-friendly manner,

reducing waste and recycling waste▫Creating standards to ensure safety and

health▫Optimizing the use of assets, warehouses,

equipments, materials, stocks

Knowledge Management - EFQM• 4E

▫ Introducing strategies/plans of creating, sharing, evaluating and assessment of knowledge

▫Proper recording of knowledge to create records for company use

▫Discussion of knowledge to increase sharing▫Effective and timely availability of Knowledge▫Provide security provisions for adequate use of

knowledge▫Ensuring “how to use” manuals availability for all

personnel▫Ensuring partners are made available to limited

knowledge for benefits to other organizations

Organizational Knowledge Development Cycle

Knowledge Creation

Knowledge Adoption

Knowledge Distribution

Knowledge review & revision

Bhatt et al 2000

Knowledge Management

• Encouraging sharing of ideas and plans• Networking (later discussed)• Implementation of plans like Risk Register,

RIDDOR• The ILO-OSH (2001) Management System on a

2-year implementation process• Code of Practice on S&H• Proper Filing system and access to information• Review, assessing and updating knowledge

maintained

“Why Re-Invent the Wheel?”

Benefits•KM is internal strength•Provides Competitive Advantage•Improves Customer Focus•Improved Employee relations &

departmental•Leads towards Innovation•Reduces costs•Eliminates inefficient practices•Leads towards Effective business

practicesChourides et al 2003

Knowledge Based Asset Management

•Facilities Management•Health & Safety•Security (Physical & Virtual)•Environmental Management

Facilities Management

•Generally is the integration of processes within an organisation to maintain and develop the agreed services which support and improve the effectiveness of its core activities.

(Zehra W., Scott F., 2009).

•provides the necessary infrastructure to create an appropriate environment for the employees to perform the core functions effectively and efficiently

(If P., Fari A., 1999).

Facilities Management for Wave Riders

•Current situation▫Ordering the initial fibre glass from outside

supplier, resize and reshape is required•Issue

▫Effectiveness of utilising material is poor▫Costs of production is high

•Solutions ▫Outsourcing (primary plan)▫JIT for purchasing the fibre glass (backup plan)

Strategic Plan for Facilities Management

Outsourcing:

•1st year plan (short-term) 1) Assessment and approval 2) Contract negotiation

•3rd year plan (medium-term to long-term)1) Project execution and transfer2) Managing relationship 3) Review and prepare for training

Facilities Management for Wave Riders•Current situation

▫ Mess workplace in warehouse •Issue

▫Efficiency of production is poor▫Potential health and safety risks for employees

•Solution▫Redesign the layout and structure as

implements Lean and Six Sigma tools

Strategic Plan for Facilities Management Lean methodology (5s):

•1st year plan (short-term) 1) Formation of a 5s implementation team 2) construct and evaluate the 5s strategy

•2nd year plan (medium-term)1) launch the actual 5s strategy2) By the end of year review the performance to

determine is there a need for employ additional techniques e.g. Poka-yoke

Facilities Management for Wave Riders•Current situation

▫Exmouth factory has been bought but not utilised

•Issue▫Wasting the addition property, lead the non-

effective utilising resource•Solutions

▫Sell the Exmouth factory at the beginning of next year

▫use Exmouth as a storage for material or finished products

Health & SafetyCurrent situation 

• There is an inefficient practice to record workplace safety inspections and training given to staff.

• There is an old data of the functions from each member in accordance with any rules or safe methods set out in the previous arrangement.

• The policy has not been reviewed very often.

• The policy seems that each member has not been involved as much in developing the current policy.

RECOMMENDATION T0 IMPROVE H & S LEVEL

21

• Setting up a health and safety management system.

SOURCE: (HEALTH AND SAFETY EXECUTIVE, 2012)

Improvement

PLAN

implementation

CHECK

ACT

PLAN

 Carrying out a regular risk management

1. To inspect around the workplace the current hazards as well as potential hazards.

2. To review the risk (the former consequence of having this hazard and how the harm could be from the new hazard detected).

3. Confirm the data gathered from the inspection with employees perception, what they thinks the hazards are?

4. After the risk is detected, the findings should be recorded, perhaps using the risk assessment template from (HSE)

PLAN Counting with the help of each employee and the data of risk identified, the policy will be written down. the policy has to cover the following points.

1. The commitment of waves’ riders to managing health and safety and what the company is keen to achieve.

2. The way of wide’s riders organize management and who is responsible for doing what.

3. Practical arrangements, such as safety procedures and staff training.

ImplementationDecide what procedures the company needs and implement them.

1. Each worker has to understand all the information related to his/her job written on the policy.

2. Each worker has to work according to the policy explained.

3. Monitoring how well the procedures works.

CHECK

1. Company should review the management system itself (twice a year) to check that the system is working and to consider how it can be improved

2. To check the legal obligations regularly such as how should major injuries, diseases and dangerous occurrences be recorded.

3. Ensure the worker in charge of recording this information is updated with the current form of how to do that according to RIGGORD.

ACT

Take steps to maintain the system.

1. Provide training of updating regulations and review periodically.

2. The top-level of management will encourage workers to perform as much as possible their responsibilities according to the policy data.

3. To create awareness to mention minimum risk perceived throughout the organization.

Benefits

• By having an updated and clear health and safety policy, will aid to manage more appropriate the risk.

• Improved health and safety performance by

Wave’s Riders will reduce the costs associated with accidents and incidents.

 • If employees see that the company is actively

looking after their health and safety performance, relations and morale will improve.

  • Wave’s Riders can demonstrate to their

insurance that they are controlling risk effectively. this may help lower the insurance premiums.

Security

Managing Security of Assets to meet EFQM standards.

Current Stand of

WaveRider

Areas for improvemen

t

Strategic Plan

EFQM (4c&4e) Requirements for WaveRiders:

•Full support of management when implementing and enforcing a security policy.

• Document effectiveness of security measures & should be based on WaveRiders vision.

•Secure intellectual property such as designs of boats.

•Create and deploy security policy.• In which any security issue should be

identified, managed, implement & reviewed timely .

Assets associated with security of WaveRider •Physical Security: Store House,

Production plant, R&D department, Computers (Finance/production/marketing/CEO)

•Virtual Security: Company website, finance data, HR and Production department data, R&D information.

Issues Regarding Securities of Assets.

•No Department wise asses.•Out dated Computer System. •No CCTV surveillance. •Lack of fire emergency system ex. No fire

alarm, no fire exits, no fire extinguisher.•No data protection policy.

Solutions on Priority Basis

Emergency Plan• Restrict access to R&D department. • Create department wise security access.

1st and 2nd Year Actions• Software and CCVTV cameras. • Create security Policy• Implement Backup policy

3rd to 5th Year Actions• Develop Website security.• Implement latest Data protection act. Ex. (DPA- 2010)

Environmental Management (EM)

Being one of the most important part of the EFQM philosophy Environmental Management links and assess all the areas of any company’s performance and productivity

Key industries that a directly depends on the Environmental management:

- Industrial Manufacturing- Service Design and Delivery- Governmental industry

•Environmental Management (EM) helps to:

- Assess business strengths and weaknesses- Identify and manage significant

environmental impacts- Saves money by increasing efficiency- Comply with environmental legalisation- Provides benchmarks for further

improvements

WaveRiders’ current issues that contradicts EFQM EM standards•Usage of non-recycable and non-eco-

friendly material (Hypalon) for tubes manufacturing

•Usage of toxic colourings•The absence of the “end-of-pipe” pollution

control policy •Company doesn’t follow any environmental

policy •Vast amount of remained pieces of fibre

glass as unneeded surplus

Solutions in compliance with EFQM EM

•Emergency plan:

- Management style regarding environmental regulations must be changed;- Implementation of the strategy of compliance that will comply with sustainable development approach 

• Long-term plan:

1 & 2 years: • To find several alternative materials to substitute

Hypalon. (i.e. PVC material)• the identified alternative materials should be tested

in relation to its’ quality and reliability and safety• Create a separate department responsible for

Environmental control;• Start implementation process of the eco-friendly

policy of production process;• Analyse the outsourcing strategy of fibre glass • Improve purchasing strategy of fibre glass material

according to the required size and quantity.

•3 & 4, 5 years:

•Final decision regarding alternative material for tubes manufacturing must be made

•Long-term contract with new supplier must be set up;

• Implement ISO 14001 Environmental Management Standard

•To strengthen the “end-of-pipe pollution control” strategy within the company

•Effective performing in accordance with the “Cleaner Production” plan

•All the production wastes must eliminated (no remained pieces of the unusable materials)

Conclusion•Low-cost action plans•Medium & long-term, costs are divided•Effective use•Lowered costs•Links with EFQM Criterion 4•Leads the way towards “stage-5 Processes

module”

List of References• EFQM Model, http://www.efqm.org/en/tabid/132/default.aspx• Quintas. P, Lefrere. P, Jones. G, (1997), “Knowledge management: A strategic agenda, Long Range

Planning”, Vol 30, Issue 3, Pg 385-391• Bhatt. D, (2000), “Organizing knowledge is the knowledge development cycle”, Vol 4, Issue 1, pg 15-

26• Chourides. P, Longbottom. D, Murphy. W, (2003) "Excellence in knowledge management: an empirical

study to identify critical factors and performance measures", Measuring Business Excellence, Vol. 7 Iss: 2, pp.29 – 45

• E. Mahmoodzadeh, Sh. Jalalinia, F. Nekui Yazdi., (2009). A business process outsourcing framework based on business process management and knowledge management, Business Process Management Journal. Bradford: 2009. Vol. 15, Iss. 6; p. 845

• Lucas S., Robbie H., Glenn D., Clay W., (2010). Lean Implementation in a Low Volume Manufacturing Environment: a Case Study, IIE Annual Conference. Proceedings. Norcross: 2010. p. 1, 6

• Rod G., Ron F., Kaoru K.,(2008). Implementing 5S within a Japanese context: an integrated management system, Management Decision, London, Vol. 46, Iss. 4; p. 565

• Zehra W., Scott F., (2009). Knowledge based facilities management, Facilities, Bradford, Vol. 27, Iss. 7/8; p. 258

• If P., Fari A., (1999). New patterns in facilities management: industry best practice and new organisational theory, Facilities, Bradford, Vol. 17, Iss. 5/6; p. 159

• N Rajam Ramaswamy, V Selladurai, A Gunasekaran., (2002). Just-in-time implementation in small and medium enterprises, Work Study, Vol. 51, Iss. 2/3; p. 85

• Health and safety executive. (2012). using health and safety management systems/ business link. retrieved 04 23, 2012 from http://www.businesslink.gov.uk/bdotg/action/detail?itemid=1074403738&r.i=1074403734&r.l1=1073858799&r.l2=1087350872&r.l3=1074402501&r.s=m&r.t=resources&type=resources

• Health and safety executive. (2012). retrieved 22 04, 2012 from http://www.hse.gov.uk/pubns/indg453.pdf

List of References

• Anixter Inc., 2010. DuPont is Discontinuing Hypalon. [Online] Available at: http://www.anixter.com/AXECOM/AXEDocLib.nsf/0/5ZEX7S2R/$file/DuPontDiscontinuingHyphalonJuneJuly09.pdf?openelement

• British Standards Institution, 2012. Environmental Management. [Online] Available at: http://www.bsigroup.com/en/Assessment-and-certification-services/management-systems/Business-areas/Environmental-Management/

• Business Link, n.d. Environmental management systems (EMS) - the basics. [Online] Available at: http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1079422683

• Chrisite, I., Rolfe, H. & Legard, R., 1995. Cleaner production in industry : integrating business goals and environmental management. London: Policy Studies Institute.

• Robbins, P. T., 2001. Greening the corporation : management strategy and the environmental challenge. London: Earthscan.

• T.E.W. Consultants, 2011. Managing the Environment. [Online] Available at: http://www.tewconsultants.com/Environmental-Management.php

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