Developing WaveRiders approach to
Knowledge and Asset Management
to meet the Criteria of EFQM
Group B 2
Jerry, Nikhil, Kidd, Fabienne, Gurbani
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
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
Knowledge Management
Knowledge Management Concept
Learning Organization
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
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
Currently, there is no effective system in place for the company to
adequately manage its knowledge resources.
.
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:


Japanese View:


Formal and systematic, Quantifiable (“hard”), Easily measurable
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.
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.
Learning Organization
 Areas in which change is required to
become a Learning Organization




Vision
Culture
Strategy
Structure
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
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
Asset Management
Maintenance Management
Facilities Management
Security management
Life Cycle Management
Health & Safety and Environment Management
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
Maintenance Process associate with
knowledge asset
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
Forecasts

Greater proactivity

Time saved identifying and ordering requirements

Forecasting results in shorter lead times

Confidence to manage expansion
Transactions
Customer Orders
Engineering
Changes
Lean thinking in maintenance
Asset Management and EFQM
Policy Deployment
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.
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%
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.
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.
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)
Security
 Virtual Security and Physical Security
Organizational
Operational
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
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
Life Cycle Management
Market
Analysis Data
Management
Planning Data
Accounting
Data
Engineering
Design Data
Life
Cycle
Costing
Value Analysis
and Related
Data
Reliability
and
Maintainabilit
y Data
Logistic
Support Data
Consumer
Utilization
Data
Production or
Construction
Data
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
Health & Safety Management
 Key elements of Successful Health and Safety Management
Source:
HSE,2008
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
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
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)
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
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
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
Knowledge and Asset Management
Time Implementation Plan
 Gantt chart to show how we advise time to be spent on
these implementations:
Q2.1 Q3.1 Q4.1 Q1.1 Q2.1 Q3.1 Q4.1 Q1.1 Q2.1 Q3.1 Q4.1 Q1.1
Quarters 2
2
2
3
3
3
3
4
4
4
4
5
Inform Organization
1
Asset Management
Organizational Learning
11
Knowledge Management
Security
1
Health and Safety
1
Environment
1
Maintenance
2
Facilities Management
8
Life Cycle Management
8
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!
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).

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
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
Martín-Castilla, J.I. & Rodríguez-Ruiz, Ó., 2008. EFQM model: knowledge governance and competitive
advantage. Journal of Intellectual Capital, 9(1), pp.133–156.
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,
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
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
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:
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
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
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
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