CONSULTANCY PROPOSAL TEAM A1

1. CONSULTANCY PROPOSALTEAM A1

2. Brief of Consultants • FaizanQadri: Knowledge Management & Streamlining Business Processes Expert. • Richard Sharman: Supply Chain & Logistics Expert • Pauline Mmbaga:Facility Management Expert • Henry Ortiz Toloza: Facility & Space Management Expert • Parminder Singh:Health & Safety Expert • Modar Bakir: Human Resources Expert

3. Peter Drucker & British Government on Knowledge Management • In 1988 Peter Druckerwrote: “The typical business [of the future] will be knowledge-based, an organisation composed largely of specialists who direct and discipline their own performance through feedback from colleagues, customers and headquarters. For this reason it will be what I call an information-based organisation” (Economist 2009). • In the British government’s 1998 White Paper on the competitiveness of the nation, it said: “Our success depends on how well we exploit our most valuable assets: our knowledge, skills and creativity … they are at the heart of a modern knowledge-driven economy” (Economist 2009).

4. Our Understanding of the Brief Vision (Q3/2017) The Current Status of the company (Q3/2012) Five Years’ Plan To be the first choice for clients where high quality meets affordability and set high standards in the UK and European Market Strategy No. 3 Apply KM & AM Tangible Assets Meet the criteria of the European Excellence Model Intangible Assets Processes

5. WaveRiders GAP Analysis

6. Current Supply Chain of WaveRiders Material Suppliers UK Factory UK Warehouse Sales to Retailers Sales to End Users

7. Future Supply Chain Strategy Sales/Marketing UK Market UK After Sales Suppliers UK Factory UK Warehouse EU Market EU After Sales Sales/Marketing

8. Supplier Management Strategies:Improve Supplier Base through assessing and reviewing current supplier base and streamline in order to Improve Working Relationship and therefore bring new benefits. Supplier WaveRiders Materials R&D Market Information Customer Feedback Manufacturing Processes R&D Materials Knowledge Marketing/Sales Forecast Competitive Advantage Supplier / Manufacturer Information Model

9. Distribution in the EU Market • Outsourcing the distribution function in the EU Market. • Increase the Distribution Manager scope of work where he will be responsible of the distribution operation in the UK and supervising the outsourcing contract of distribution in the EU market.

10. Asset Life Cycle management • Measuring assets on a COST Vs. PROFIT basis • Group assets into processes • Consistently gather and log information and knowledge of the assets outputs and inputs on an accessible database. Output (profit) Resale Value Useful Life Machines Raw Materials Finished Goods Initial Cost Running Costs/Maintenance Man hours required to operate

11. Recommendations • New Asset Strategy – Use information from sources such as manufacturers/past experiences/forecasts/departmental requirements to assess and compare potential new assets to gain best balance of cost/capability and quality. (the head of the department that will use the asset should carry out these procedures) • Use financial measures such as Payback period and NPV to give financial insight. (finance department)

12. Recommendations • Current Asset Strategy – the manufacturing process and the storage process. • Log data, and keep records of performance and any costs incurred in the past. • Make operatives responsible for logging data and regular inspection to prevent problems escalating. • Have procedures in place to deal with the maintenance of assets so down time is reduced. • Constantly reassess the costs vs profit performance to map when parts of the processes need updating or replacing.

13. Facility & Property Management • Facility management is ‘an integrated approach to maintaining, improving and adapting the building of an organization in order to create an environment that strongly supports the primary objectives of that organization’ (Barrett and Baldry,2003).

14. Recommended Strategies • Hiring a Facility Director: the main objective of this role is to ensure that an organisation has the most suitable working environment for its employees and their activities. Also, implementing cost cutting initiatives and Initiating projects which will enhance the image of the company. • Estimated Annual Salary: £60,000 CEO John Excellence Facility Director

15. Assets requiring management • Property Management: Design and Build Activities, Facility Services(Safety, Health and Environment), Space Management and Maintenance of Equipment • Inventory Management: Just-In-Time Production

16. Property Management Design and Build Facilities Current Situation • There is very little awareness and concern on improving the value of the properties and inaccessible property inventory Action Plan • Facility Director should outsource an external surveyor to conduct valuation on the plant at least every 3 years Anticipated Outcome • Reduced cost of wear and tear and reduced time wastage

17. Inventory Management Production Scheduling and Inventory Current Situation • Tied-up capital, inaccessible inventory audit Action Plan • Implement Just-In-Time production Anticipated Outcome • OTIF (On time in-full production, on time delivery and customer satisfaction ration to increase by 99%)

18. Current Situation to JIT S RM WIP FG

19. Space management Current situation: • There is not a fixed travel route for material and products transport from stock area to the dispatch area • There are not clear routes for loading vehicles, (forklifts) • The employees do not enough space to work comfortably Action plan • Optimize the space in the production area, creating fixed routes for the vehicles and create open plan offices. Anticipated outcome • Reducing the lead time • Improve communication between departments.

24. Maintenance

25. Health & Safety • What Environment? the surroundings in which an organization operates, including air, water, land, natural resources, flora, fauna, humans, and their interrelation. Clause 3.5 ISO 14001:2004(E) • Who’s Safety & Health? OH & S relates to the Conditions and factors that affect, or could affect, the health and safety of employees, or other workers (including temporary workers and contractor personnel), visitors, or any other person in the workplace. Clause 3.12 OHSAS 18001:2007

26. The Present at WaveRiders: • No Procedures for the safety and health of the employees • Fire fighting and no proper elimination of Safety concerned issues • No focused effort to prevent damage to the environment.

27. What needs to be done • Consider SHE as a strategic part of the overall business strategy. • Develop a system for SHE management. • Create a culture of health , safety and environmental awareness. • Create awareness regarding conservation of resources.

28. SHE Management - The way ahead (strategy) • Hire a SHE manger (reporting directly to Facility Director for plant daily operation issues/ dotted reported to the CEO for company policy & road safety). • Incorporate a SHE Policy • Train employees – create awareness CEO John Excellence Facility Director SHE Manager

29. SHE Management - The way ahead (strategy) • Conduct • An Environmental aspect evaluation • A Hazard risk analysis • Identify the most significant aspects. • Make Safety management procedures (SMP) and environmental management procedures(EMP). • Eliminate the aspects (Follow the PDCA methodology). • Make Operational control Procedures (OCP). • Have an emergency preparedness plan in place • Maintain a legal register. • Management Review • Apply for ISO 14001 and IS 18001 certification. • Start a near miss reporting and recording system. • Start energy conservation and safety committees

30. Knowledge management • Procedure manual (Environmental and Safety: • OCP • EMP & SMP • List of most significant aspects • Emergency preparedness plan • Legal register • Near miss reporting and analysis.

31. Timeframe for Implementation Timeframe for SHE implementation.xlsx

32. Estimated Budget for SHE • SHE manager £40,000 per annum • Training £ 10,000 - £ 15,000 • Certification: £ 3,000 – £3,500 per certification • Other costs depending upon the work to be carried out to make the work place more safe and environmental friendly.

33. Effective Asset Management through People Effectiveness In order to have an Effective Asset Management system within WaveRiders, we recommend you to apply the following three strategies (Lutchman 2006): • Organizational and People Effectiveness • Corporate Knowledge Retention • Performance Management (Balanced Scorecard)

34. Organizational Effectiveness Vision & Mission Tangible Assets Intangible Assets Processes Knowledge Management Develop Organisational Structure HR Policies & Procedures C&B Plans Recruitment Strategy Retention Strategy Succession Planning Strategy L&D Program Employee Assistance Program Employee Handbook Orientation Program SOPs Performance Management Empowered Teams Define Roles Responsibilities Competencies Framework Job Descriptions Staffing Numbers Continuous Improvement Developing a High – performance Organization (Lutchman 2006)

35. Organizational Development & Learning • Develop the core values/competencies framework for the company. • job evaluation based on a Knowledge and Skills Framework. Validate Job Descriptions, Roles, technical and general skills. Introduce the competency skills framework to all posts. • Identify individual learning and development needs against the approved competency framework through carrying out TNA of current skills, knowledge and competencies (skills gap analysis). • Develop a training program for all employees based on the TNA results. • Assigning a training budget for the Sales team who are going to be involved in the EU market and for the SHE Manager. • HR Team to achieve CIPD certification. • Orientation program (Corporate and Departmental Induction). • SOPs / best practices in coordination with the rest of the departments • HR Policies & Procedures / Employee Handbook • Employee Assistance Program / Redundancy Plans & Payments • Job Rotation • Establishing an E-learning portal for the company might not be suitable at the time being (EFQM 4e. Using information technology to support knowledge management).

36. Recruitment & Retention • To ensure that the attrition rate is at the minimum for the next five years (voluntary and involuntary resignations). • Offer a variety of career packages and employment contracts (permanent, temporary, flexible ... Etc.) • Building a professional reputation for the company (employer of choice). • Recruitment processes must fulfill all legislative requirements and demonstrate fair and equitable treatment of all applicants. The HR department is committed to providing an efficient service to managers and applicants, and to ensuring that recruitment systems are reviewed as required to maintain a smooth process. • Reward & Recognition policy. • It is important to determine what causes staff to leave. To this end an exit procedure and guidelines is being developed and will be implemented in Q4 2012. The results will be analyzed to identify trends so that counter measures may be introduced where appropriate (employee branding). • Staff Monthly meeting with BoD (staff involvement, enhancing two way communication).

37. Performance Management - Balanced Scorecard -

38. Summary Optimize the usage of the space of the premises Review, Assess and Optimize Supplier Base Facility Management Supply Chain Implement Just In Time Production Hiring Facility Director Outsourcing Distribution function in EU market Reduce Lead Time Increase and maintain the life of the physical assets of the company Effective Knowledge & Asset Management System Set up procedure manuals for safety and environmental management Organizational & People Effectiveness Health & Safety Human Resources Corporate Knowledge Retention Obtain ISO 14001 and IS 18001 certification Hiring Health & Safety Manager Performance Management WaveRiders’ Vision

39. Towards EFQM 4c:developing and implementing strategies for managing buildings, equipment and materials 4c: improve total life cycle performance 4c: optimising transportation usage 4c: Optimising material inventories EFQM Model 4c: minimizing impact on environment Partnership & Resources 4c: affect of organisation asset on health and safety 4e: identify information and knowledge req. 4e: providing appropriate access 4e: cultivating and protecting intellectual property 4e: generating innovative and creative thinking 4e: collecting and structuring information and knowledge

40. References • Economist (2009) knowledge management [online] available from http://www.economist.com/node/12960225 [24th April 2012] • European Foundation for Quality Management (2009) EFQM Excellence Model, EFQM Publications. • Lutchman, R. (2006) Sustainable Asset Management: Linking Assets, People, and Processes for Results. Pennsylvania: DEStech Publications, Inc. • Shanthi, N. (2006) Knowledge Management for Business Strategy. Hyderabad: The ICFAI University Press. • Fileding, K and Whicker, L (2012), ‘Planning and Control Systems: JIT, Logistics and Operations Management’, Supply Chain Lecture at the University of Warwick. • Pain, S. W. (2010). Safety, Health, and Environmental Auditing. New York: CRC PRess. • OHSAS 18001:2007. OHSAS project group • ISO 14001:2004(E) Environmental management systems – General guidelines on principles, systems and Support techniques.

41. THANK YOUQ&A