consulting team: awalpreet takkar , marcin czajkowski , theofani dimopoulou, yuting zhao , ...

Consulting Team:Awalpreet Takkar, Marcin Czajkowski, Theofani Dimopoulou,

Yuting Zhao, Cresna Ponthy, Surya Saha

Towards Knowledge and Asset Excellence

The University of Warwick, 15th April 2011

1

2

LeadershipProcesses Products & Services

People

Strategy

Partnerships & Resources

People Results

Customer Results

Society Results

Key Results

Learning, Creativity & Innovation

Enablers Results

Approach to Excellence

Source: EFQM, 2010

3

Approach to Excellence

Developing a strategy for managing buildings, equipment and materials that supports the organizations policy and strategy

Managing the maintenance and utilization of assets to improve total lifecycle performance

Managing the security of assetsMeasuring and managing any adverse effects of the organization’s assets on the community and employees

Utilizing resources in an environmentally sound manner throughout the entire lifecycle of the product

Optimizing material inventoriesOptimizing consumption of utilitiesReducing and recycling wasteMinimizing any adverse global impact of products, production processes and services

Regular reviewing

4c

Knowledge made available timely and effectively for decision makingEnsure regular addition, updation to the pool of organizational knowledgeTransform data into information and where possible, into knowledgeProvide adequate access to relevant people to the organization’s knowledge while ensuring its protection

Secure intellectual propertyProvide for opportunities for innovation through knowledgeInnovate through continuous improvement through gaining knowledge from all possible sources

Use information to identify opportunities for the future

4

Approach to Excellence

4e

55

Assets

Current Assets

Inventory- Cash

- Cash Equivalents-Receivables

Non – Current Assets

Plants & Equipment

Intangible assets

Financial assets &

investments

Life

Cyc

le A

ctiv

ities

Acquire

Utilise

Maintain

Dispose

Portfolio of Assets

Inve

ntor

y

Equ

ipm

ent

Life Cycle Asset Management

Source: based on information by The Institute of Asset Management (http://theiam.org )

Pla

nts

6

Asset Management - Land & Buildings

Proposal:- BSI 8536:2010

Facilities Manegement Briefing – Code of Practice

Alternatives:- Employ experienced

Facility Manager separately to H&S manager

PROPERTY MANAGEMENT

7

PROPERTY MANAGEMENT – EFFECTS: Short-term:- Delivering fit for

purpose building thanks to structured approach and ‘system thinking’

- Timely project management

Long-term:- Improved LCC

performance- Support for CSR

implementation- Reduced waste and

resource consumption

- H&S environment

Asset Management - Land & Buildings

8

DESIGN & BUILD ACTIVITIES

Proposal:- New layout for both

sites

Alternatives- Layout of Lymington

developed by architects and constructor

- No improvements at Dorset

Asset Management - Land & Buildings

9

DESIGN & BUILD ACTIVITIES – EFFECTS: Short-term:

- Elimination or reduction of Dorset’s operational issues

- Improvement of Dorset facility

Long-term:- Increased

performance and smooth flow

- H&S environment- Reduced time

required to plan new facilities

Asset Management - Land & Buildings

10

Asset Management - Land & Buildings

SPACE MANAGEMENT

Proposal:- Introduction of Lean

Manufacturing techniques – in particular 5S, VSM

- New layout in Dorset and Lymington

Alternatives:- No change

11

Proposal:- Keeping core and key

services in-house- Outsourcing non-core

services

Alternatives:- Total Facility

Management – outsourcing all services to one provider

- Keeping all services in-house

FACILITY SERVICES

Asset Management - Land & Buildings

12

Equipment

WaveRiders is looking for the high performance WaveRiders is implementing the reactive maintenance Assumptions:

13

Equipment

Equipment Asset

Management

Health and Safety

Performance Security

Environment

14

Equipment

Acquire

Identify what equipment is really needed.

Equipment reliability Instruction manuals should be

read carefully Equipment is environment

friendly in operation Safety designed equipment

Utilize Cleaning the machines

regularly Scheduling machines

(SAP) Manage the scheduling

with consideration of contingency

Maintain the equipment regular, extend the life of components to ensure the normal operation of equipment

Training the operators Record the characters and

features Security consideration

15

Equipment

Benefits

Effective maintenance management will ensure that: life cycle costs are

minimised; there is efficient use of

resources; environmental

compliance is not compromised through asset failure; and

service levels are maintained or improved.

Proposal: For short term, maintenance management process

Source: Maintenance management Implementation Guide

16

Equipment

Proposal: For long term, Total Productive Maintenance.TPM is an equipment management program that emphasises operator involvement and ownership of equipment performance.

Source: Kaizen Continuous Improvement phase.

Available time

Available operating time

Effective operating time

Actual operating time

Equipment Six Big Losses

Breakdowns

Setup/adjustment

Idling/monitor stoppages

Speed

Defects in process

Start up loss

16

T.P.M Officers TPM ResponsiblePlant Manager

5’s Autonomous Maintenance

Planned Maintenance

Individual Improvement

Quality Maintenance

Early Equipment

ManagementSafety

Training People

Development

T.P.M Structure

The benefits of implement TPM :

Increased equipment and personnel productivity Increased asset utilization Lower maintenance and system costs Approaching zero equipment-caused defects

or reliability issues Enhanced job satisfaction Increased Return On Investment

RESOURCE UTILIZATION Inventory System

17

18

DATA AVAILABLE

Finished good stock Alternative market (sales team) Distribution

19

INVENTORY MANAGEMENT OBJECTIVE

Smooth operatio

n

Ensuringcontinuous operation

Flexibility to stakeholders

Optimizing suppliers

Balance demand/sup

ply

Contingency plan

20

MATERIAL REQUIREMENT PLANNING Inventory control Production planning Manufacturing control

21

WHEN TO USE? Complex products Assembly-to-order environment Demand variable

22

WHY MRP? Reduce Inventory Levels Reduce Component Shortages Reduce purchasing cost Reduce manufacturing Less scrap Reduce overtime Identify material requirement

23

WHAT SHOULD BE DONE?

MRP

Identify the

requirement

Running the

process

Firming

• Organizational strategy

• Location• Date

24

BOMPART

CONTROL

INVENTORY

CONTROL

SALES ORDER MPS MRP ACCOUNT

RECIEVABLE

PRODUCTCOSTING

PRODUCTION CONTROL

PURCHASING CONTROL LEDGER

ACCOUNT

PAYABLESHOP

CALENDERROUTING CONTROL

WORK CENTER

CONTROL

CAPACITY REQUIREMENT

PLANNINGPRODUCTION ACTIVITY

25

MASTER PRODUCTION SCHEDULING

MPS When & how much to produce

CapacityCompanyPolicies

EconomicConsiderations

ProductCharact.

PlanningHorizon

Time

CapacityPlanning

Placed orders

Forecasted

Planned orders

• Help schedule the finished goods• Combination of customer order and demand

forecast• What needs to be produced

26

MRP MATRIX- EXAMPLE

Item:

Lot Size: Lead Time: PD 1 2 3 4 5

gross requirement

scheduled Receipts

projected on hand

net requirements

planned order receipts

planned order releases

HEALTH & SAFETYFacts & Finding 0.8 million workers suffer illness cause from

past work 840 workers injured from 100,000 – ratio

233,000 injured! 0.5 workers killed from 100,000 – ratio

152 killed!

27SOURCE: HEALTH & SAFETY EXECUTIVE STATISTIC REPORT 2009/2010

HEALTH & SAFETY (CONT’D)

Advantages of having proper H&S management: Improve organization reputation Improve production output (reduction in accident) Improve people commitment Improve customers confidence Reduce and avoid public claims against organization Reduce insurance premium (financial impact)

28

SOURCE: STRANKS, J. (2005). THE MANAGER'S GUIDE TO HEALTH & SAFETY AT WORK (8TH EDITION ED.). LONDON, UK: KOGAN PAGES.

HEALTH & SAFETY (CONT’D)

Recommendation to improve H&S level: Set up framework

29SOURCE: STRANKS, J. (2005). THE MANAGER'S GUIDE TO HEALTH & SAFETY AT WORK (8TH EDITION ED.). LONDON, UK: KOGAN PAGES.

Improvement

Planning

Implementation

Checking & Corrective

action

Management review

HEALTH & SAFETY (CONT’D)

30CHATURVEDI, P. (2007). OCCUPATIONAL SAFETY, HEALTH & ENVIRONMENT AND SUSTAINABLE ECONOMIC DEVELOPMENT. NEW DELHI, INDIA: CONCEPT PUBLISHING.

Workplace analysis

• Do risk assessment & analyze it• Conduct review mehcanism to evaluate progress• Make certain actions

Commitment

• Make policy regarding H&S• Conduct review mehcanism to evaluate progress

Hazard Prevention &

Control

• Establish SOP of safe works (plan for emergencies)• Provide PPE, first-aid, emergency medical care and equipment in every

workplace• Communicate and ensure all staff fully understand and comply

Training• Provide comprehensive training and review periodically

Implementation Plan

SECURITY MANAGEMENT

Recommendation to improve H&S level: Set up framework

31

SOURCE: SENNEWALD, C. A. (2003). EFFECTIVE SECURITY MANAGEMENT (4TH EDIITON ED.). LONDON, UK: BUTTERWORTH-HEINEMANN.

Planning

Organizing

DirectingCoordinating

Controlling/Review

Acquire• Create or gather information from another source

Distribute

• Only authorized person can access certain information

Use

• Utilize information and monitor the usage in order to minimize misuse

Store

• Create backup or archive data that outdate so it’s accessible when needed

Destroy

• Follow security procedure to ensure data or information not being use by unauthorized person

Acquit

• Make documentation for every data or information destroyed

32SOURCE: TALBOT, J., & JAKEMAN, M. (2009). SECURITY RISK MANAGEMENT BODY OF KNOWLEDGE . NEW YORK, USA: JOHN WILEY AND SONS.

SECURITY MANAGEMENT (CONT’D)

Virtual Concern & Implementation Plans

SECURITY MANAGEMENT (CONT’D)

Physical ConcernAHP approach:

Parameters: Areas for detection Accuracy Emergency Intelligence

33SOURCE: GROUP DISCUSSION & BRAINSTORMING

Security Measures Prioritization CCTV System 1Perimeter System 2Security Personnel 3Access System 4Receptions Tasks 5Lone Workers Policies 6

Recommendation: Install CCTV system in all workplace for cost +/- £ 5,800 per place

34

Life Cycle Asset Management Plan 1/2

Life cycle : Time interval that commences with the identification of the need for an asset and terminates with the decommissioning of the asset or any associated liabilities (http://theiam.org)

Life

Cyc

le A

ctiv

ities

Acquire

Utilise

Maintain

Dispose

Portfolio of Assets

Inve

ntor

y

Equ

ipm

ent

Pla

nts

- Existing assets form another company- New assets- Replacement of existing assets

Life

Cyc

le A

ctiv

ities

Health – Safety - Environment Security

Based on PAS 55-1:2008

35

Life Cycle Asset Management Plan 2/2

Short term proposal

Specific intervention optimisation(cost/benefit/risk/timing)

Long term proposal Asset life cycle optimisation(cost/performance/risk/sustainability)

Activity programme optimisation(cost/benefit/risk/timing of multiple activities across multiple assets)

Life Cycle Costing

Engineering Design

DataReliability &

Maintainability Data

Production Data

Accounting Data

Environmental Data

Health & Safety Data

Security Data

Management Planning

Data

36

Knowledge as an Asset

Knowledge

New Product

Development

Doing Business

Managing systems

Operational mechanism

s

Asset Manageme

nt

Source: Nonaka & Takeuchi, 1995

37

Knowledge as an AssetAcquire• Development through training• IT and Databases (Knowledge storage)• Intellectual Property• Investigating & Recording FailuresUtilize• Communication and sharing• Accessing data (Search Engines)Maintain• Updating knowledge

Dispose• ??

38

Knowledge Initiatives

Technology (10%)

People (70%)

Processes (20%)

Source: Bhatt, 2000

39

Knowledge is Free!

Catchball

Exchange within Lymington and Dorset

Deformalize

Learning from failures

40

Excellence Vs Assets

Property

Managemen

t

Design &

Build activities

Facility

Services

Space Manageme

nt

Maintenance H&S

Inventor

ySecurity

6a. Perception Measures 1 3 1 36b. Performance Indicators 1 3 9 37a. Perception Measures 3 3 1 3 3 3 17b. Performance Indicators 3 3 1 3 3 9 38a. Perception Measures 3 1 1 9 18b. Performance Indicators 3 3 3 39a. Key Performance Outcomes 1 3 1 3 9 39b. Key Performance Indicators 3 1 3 3

Approach to Excellence

41

“Excellence is not a singular act, but a habit. You are what

you repeatedly do..”Good Luck!

-Anonymous

Thank you

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References

Asset Management. (n.d.). Guidelines for Implementing Total Management Planning. Retrieved April 14, 2011, from Department of Environment and Resource Management website: http://www.derm.qld.gov.au/water/regulation/pdf/guidelines/tmp/2001_guidelines/implementation/asset_07.pdf Bayo-Moriones, A., et al. (2010). 5S use in manufacturing plants: contextual factors and impact on operating performance. Journal of Quality and Reliability Management, 27 (2), p. 217-230. Boussabaine, H. A. & Kirkham, R.J. (2004). Whole life-cycle costing : risk and risk responses. Oxford, UK ; Malden, MA : Blackwell PubBhatt, D. (2000). Excellence Model and Knowledge Management Implications. UK.Brandimarte, P. (2007). Introduction to distribution logistics [electronic version]. USA: John Wiley & Sons.Brooks,R., Wilson, L. (2007). Inventory record accuracy [electronic version]. USA: John Wiley & Sons.Chaturvedi, P. (2007). Occupational Safety, Health & Environment And Sustainable Economic Development. New Delhi, India: Concept Publishing. EFQM excellence model (2010).Belgium : EFQM instituteGapp, et al. (2008). Implementing 5S within a Japanese context: an integrated management system. Management Decision, 46 (4), p. 566-579. Graves, S. (1999). Manufacturing Planning and Control [electronic version]. USA: Massachusetts Institute of Technology.Health and Safety Executive. (2010). Health Safety Executive Website. Retrieved April 10, 2011, from Health Safety Executive Website: www.hse.gov.uk/statistics/overall/ hssh0910.pdf Honan, B. (2010). ISO 27001 in a Windows Environment (2nd Edition ed.). Cambridge, UK: IT Governance. Hughes, P., & Ferrett, E. (2009). Introduction to Health and Safety at Work (4th Edition ed.). Oxford, UK: Butterworth-Heinemann. Kaizen Continuous Improvement phase. (n.d.). Retrieved April 14, 2011, from Beyondlean.com: http://www.beyondlean.com/kaizen.html Longenecker, J. (2006). Small business management [electronic version]. USA: Thomson corporation.Nonaka, I., & Takeuchi, H. (1995). The Knowledge Creating Company. New York: Oxford University press.Olomolaiye, et al. (2004). Knowledge management for improved performance in facilities management (COBRA 2004 The international construction research of the Royal Institution of Chartered Surveyors). Retrieved from the Knowledge-based Asset Management, MBE website: http://www2.warwick.ac.uk/fac/sci/wmg/ftmsc/modules/modulelist/kbam/sessions/asset_management/facilitiesmanagement/knowledgefacilities200409.pdf Reuvid, J., Hinks, J., & Institute of Directors. (2002). Managing business and support services. London: Kogan Page. Sennewald, C. A. (2003). Effective security management (4th Ediiton ed.). London, UK: Butterworth-HeinemannSchonstrom, M. (2005). Creating Knowledge Networks, Lessons from practice. Journal of Knowledge Management, 9(6), 17-29.Smith, et al. (2004). Procurement of construction facilities: a case study of design management within a design and construction organisation. Facilities, 22 (1/2), 26-34. Stranks, J. (2005). The manager's guide to health & safety at work (8th Edition ed.). London, UK: Kogan Pages.Talbot, J., & Jakeman, M. (2009). Security Risk Management Body of Knowledge . New York, USA: John Wiley and Sons..The Institute of Asset Management, http://theiam.org/knowledge/centre/lifecycle-delivery-activities/ [Retrieved at 13/04/2010]Way, M. (2005). Soft landings: A fresh scope of service that ensures users and clients get the best out of a new buildings. Journal of Facilities Management, 4 (1), 23-39.