Introduction of Knowledge-Based Asset Management to WaveRiders

1. Introduction of Knowledge-Based Asset Management to WaveRiders Team A3 Hamed – Meenal – Jason – Neo – Omm - Ivy

2. Overview • Introduction • Knowledge-Based asset management criteria in the EFQM model • Asset Management • Facilities Management • Safety • Maintenance • Environmental Management • Recommendations of implementing Knowledge Management • Conclusion • References

3. Introduction • Knowledge 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 them • Assets 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.

4. The Excellence Model – Starting with results Results Enablers Key performance results People Results Processes People Leadership Customer Results Policy and Strategy Society Results Partnerships and Resources Innovation and learning The model in practice 2, 2005, p.20

5. EFQM Criteria • Wave 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 managed Buildings, equipment and materials are managed Technology is managed Information and knowledge are managed Assumption: Improvement need identified in Buildings, equipment and materials. The model in practice 2, 2005, p.78-86

6. EFQM Criteria continued Criteria 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

7. Outsourcing • Since 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.

8. Outsourcing For Wave Rider • Marketing department ---- Market research consultant. • Product department ---- high technology • outsource Electric Boat technology from “Duffy Electric Boat Company” • outsource the high technology of powerboats from Stingray Boat Company

11. Benefits • WaveRider will have a better research to EU from the experts • Insure 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]

12. Information System • Based 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

13. Information System • Suppliers: 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.

14. Health and Safety Risk Management Evaluate the risk and decide whether the existing precautions are adequate or whether more should be done Decide who might be harmed and how Look for the hazard Review your assessment and revise if necessary Record your findings Health and safety executives (2003). Five steps to risk assessment.

15. Benefits • Morale: Employee motivation and satisfaction • Business 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.

16. 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.

17. Total Productive Maintenance (TPM) • Potential benefits • Increase equipments effectiveness • Better product quality and less scrap and rework • Improved operator motivation and moral • Clean and safe working environment • Reduce breakdown maintenance work According to the Illinois Manufacturing Extension Center research in 2004

18. Total Productive Maintenance (TPM) • Assumption • WaveRiders has employees in production: • Operators 20 • Supervisors 5 • The average equipment failure rate: once every 1.5 months • WaveRiders currently does not have any maintenance plan

19. Total Productive Maintenance (TPM) • Basic maintenance program • Initial cleaning: eliminate dust and dirt on equipment body • Prevent the cause of dust, dirt, and liquid spattering: improve the parts that are hard to clean • Establish cleaning standards • General visual inspection: refer to instructions in equipment manual • Standardize the individual workplace: standards for cleaning inspection, data recording, tools maintenance • Develop checklist

20. Total Productive Maintenance (TPM) • Draft proposed plan • Goal: reduce equipment failure to 1 times/2months or less • Develop maintenance plan for each equipment, e.g. weekly cleaning for wood cutters • Supervisor in each team responsible for maintenance checklist and record • Every equipments inspected and checked monthly

21. Environmental Management Atmosphere Air Toxic Waste Sea creatures River Ocean

22. Vision Achieve competitive advantage by creating an environmental friendly product

23. Grades of environmental management Reactive Proactive Hutchinson, A & Hutchinson, F (1997). Environmental business management: sustainable development in the new millennium. London:McGraw Hill

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

25. A waste minimization strategy Goodall,C (1999). The Green Guide for business: the ultimate environmental handbook. Third edition.London: Profile Books.

26. Holistic Approach

27. Suggested Long term plan

28. 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.

29. 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

30. The knowledge Cycle Learning Orginization Conway,S (2002). Unlocking Knowledge assets: solutions from Microsoft. Washington:Microsoft press

31. Recommendation • WaveRiders Need to create a community of practice team that will be responsible for managing the knowledge based asset. Support People • Web Parts • Content Management • Communications • Taxonomy • Leader • Sponsor • Knowledge workers team Communities of Practice

32. Knowledge management team

33. Interaction of the community of practice team with WaveRider Knowledge Management Team

34. Conclusion • “ There will come a time when you believe everything is finished. That will be the beginning” Louis LaAmour • Knowledge 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.

35. 12% 20% 20% • 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. • Companies 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)

36. 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]

37. 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

38. 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.com • Katila, P. (2000). Applying Total Productive Maintenance: Principles in the Flexible Manufacturing Systems. Retrieved from Lulea TekniskaUniversitet database. • Barclay, R. O., & Murray, P. C. (2000). What is Knowledge Management? Retrieved from Knowledge Management Associates database • Dubrin (2007). Leadership: reasearch findings, practice, and skills. Fifth edition. Boston:Houghton.