knowledge-based asset management for waveriders

T E A M B 1

F O T I N I S AV VAJ A R R E T T R O B B I N SO R I T S E W E Y I N M I B A R B E RN AT N I C H A TA N G K I J N G A M V O N GM O H A M M A D WA S E E M S A N D O U KS H I J U N J I

Knowledge-based asset management for WaveRiders

V I S I O N & S T R AT E G YK N O W L E D G E M A N A G E M E N T S T R AT E G Y

1. EFQM requirements2. How do we get there?

A S S E T M A N A G E M E N T S T R AT E G Y

3. Facilities management4. Security management5. Health & safety management6. Environmental management7. Life-cycle management8. Maintenance9. Resource Utilization

Contents

V I SI O N : TO B R I N G T H E M O ST T E C H N O LO G I C A L LY ADVAN C E D A N D R E L I A B L E S E C U R I T Y AN D F U N TO

E U RO P EA N AN D U K WAT E RS

ST R AT EGY: D E V E LO P E XC E L L E N C E I N WAV E R I D E RS T H RO U G H AP PL I C AT I O N O F T H E E FQ M E XC E L L E N C E

M O D E L C R I T E R I A

Vision & Strategy

Knowledge management


Asset manageme

nt Facilities Security Health Environme

nt Life-cycle Maintenance Utilization

Knowledge management strategy

Where are we now? No formal KMIS in use Knowledge is transferred informally (verbal interactions and on

the job learning) No system on ground to support OL

KM is gaining increasing popularity in industries across Britain/Europe?

Technological advances are leading to more advanced KM tools



Asset manageme



KM: EFQM requirements (4e)

Provide Leader’s with info for decision making that allows them to predict future performance

Transform data into info and then into knowledge that can be shared

Provide access to info for employees and stakeholders while ensuring security of company data

Establish networks to identify opportunities in the environment

Use data on current performance and process capabilities to identify opportunities



Asset manageme



KM: Where do we want to be?

Transform tacit into explicit knowledgeCreate a culture that enables and encourages OLDevelop a structured KM system



Asset manageme



KM: How do we get there?

Employ KM Tools: KM Information System, Skill Management, Intranet etc.

Employ KM ModelImprove availability and accessibility to knowledgeCreate culture of knowledge sharingInvest in Data Security



Asset manageme



KM: Integrated strategic KM Model


ORAGANIZE AND ASSESS

INVEST DIVEST

DETECT AND

DISCOVER


Asset manageme



KM: Phases of KM Activity

Detect and Discover Existing knowledge within Waveriders

Organize and Assess Knowledge Assets within the company

Invest In structures and systems that will enable KM activities

Divest Organizational Knowledge should be reviewed at intervals to

confirm its relevance; obsolete knowledge must be discarded


Asset management


Asset manageme



1- Facilities management

Facilities management

Space management

Design and build activities

Facility servicesHealth and safety

management

Environmental managementMaintenance

Contract management/Outsourcing

Fleet management

Property management

Facilities


Asset manageme



Facilities management: Current Situation

Distributor is overchargingStock levels too high (raw materials, finished goods)Inefficient usage of floor space and equipment

Facilities


Asset manageme



Facilities management: Future Situation

Reduce distribution costsOptimize stock levelsReview floor plan layout and equipment usage profile

Facilities


Asset manageme



Facilities management: Short-term Plan (1 year)

Revising the contract with the distributor (contract management/outsourcing)

Create detailed asset database (Park, 1998)Create a detailed space allocation plan (space

management)Undertake a work station assessment (space

management)

Facilities


Asset manageme



Facilities management: Mid-term Plan (1-3 years)

Assign project manager (contract management/ outsourcing)

Create an inspection plan of current property ensuring that they maintain safety standards (property and health & safety management)

Facilities


Asset manageme



Facilities management: Long-term Plan (3-5 years)

Review all the contracts with external contractors for quality issues (project manager) (contract management/outsourcing)

Expand the database to include critical to quality issues for equipment (property management)

Create requirements plan for any future expansion or diversification (property and health & safety management)

Facilities


Asset manageme



2- Security Management

Importance:1. To ensure the continuity of business operation before

and during a crisis2. To ensure that both tangible and intangible assets

are protected from any incident3. To protect workers from accidents and hazardous

environment at workplace

Security


Asset manageme



Security Management: WaveRiders’ current security levels

Security

Elements Importance Current security levels

Responsibilities

Organisation

Essential for the business operation

to run at the normal state, thus they are protected for the business to

continue to operate smoothly and

efficiently.

IT recovery system IT department

Personnel Protections are required to be worn at all times

Workers and supervisors

Buildings CCTV and identification card entry systems

IT department and security guards

Equipment CCTV, IT secured access and machine activations

Supervisors

Materials Manual counting and checking the inventory levels, barcode secured

Line workers


Asset manageme



Security Management: WaveRiders’ future security and action plan

Security

Orientation and Specific Trainings

Elements Action steps

1. Workers and supervisors responsibilities

Acknowledge and follow rules, procedures, and regulations

2. Emergency procedures Fire exits are clear for exits and clearly marked, fire extinguishers and its procedures are in place

4. Personnel Technical trainings, use specialized equipment for moving items

5. Chemical and physical hazards

Signs and symbols are labeled, procedures to prevent exposures, Safe distances from exposes power lines

6. Building and Space Clear entrances and exits

7. Machine Procedures and specific lockout time and how to activate


Asset manageme



3- Health & Safety

Why is it Important?

• Excellent organisations look after their people.

• It's the LAWWhat are the Benefits?

• Protects your Assets – Workforce, Building and Equipment

• Reduce Absence and Sick leave

• Improved Staff Retention and Moral

• Improved Productivity and Effectiveness

• Reduced Insurance Premiums, Compensation Payouts & Legal Costs

• Maintain Business Reputation

Health


Asset manageme



Health & Safety: Elements

• Muscular-skeletal injuries• Slips and Trips hazards• Falls from Heights• Vehicles’ operating in the Workplace• Industrial Equipment injuries• Fire and Explosion

Key Safety

Concerns

• Noise induced hearing damage• Hand-Arm Vibration syndrome• Occupational Asthma • Occupational Skin diseases• Chemical exposure

Key Health Issues

Health


Asset manageme



Health & Safety: Current Concerns

Current Situation within Waveriders

• Poor Use of PPE

• Exposure to FRP Dust

• Exposure to Styrene products and Fumes

• Exposure to Iso-cyanate paint mist

• Awkward working positions

Poor separation of Fire and Explosion Risk from ignition sources

• Chemicals used during manufacture of FRP are highly flammable.

• Dust released during trimming operations is combustible.

Health


Asset manageme



Health & Safety: Action Plan

Short-term (1 year): Enforce correct use of PPE equipment. Enforce correct working practices for spray

booth. Segregated Safe zone for FPR layup, grinding

and trimming operations Equipment used inside Safe Zones must be

suitable for use in explosive atmospheres (IP54)

Immediate purchase of local exhaust ventilation systems/ Air flow benches.

Improved Clean up practices Regular Health monitoring

Health


Asset manageme



Health & Safety: Action Plan

Mid-term (1-3 years): Reduce dependency on Isocyanate paints

Improve overall internal working environments within workshop(s). (Heat, lighting and Ventilation)

Work with community to address external H&S concerns

Long-term (3-5 years): Isocyanate free paint systems

Revised construction methods reducing content of hazardous materials.

OHSAS 18000 Occupational H&S management systems integrated fully integrated with Quality management and Environmental management systems

Health


Asset manageme



4- Environmental management

Where are WaveRiders now?

Environmental Management is at it’s infancy in WaveRiders’

Few formal procedures in place to manage the environment.

Environment


Asset manageme



Environmental management

What do we need to do?

EFQM 4C

Develop an active Environmental Management System.

Aim to exceed legal requirements long term.

How do we get there?

Develop and Implement a 5 year action plan for WaveRiders’

Environmental Management

Environment


Asset manageme



Environmental management: Short term(1 year)

Short-term (1 year):Improve waste disposal techniques/system

Improved protection against accidental discharges into Drainage System.

Segregation of Hazardous Waste. Complete review of Clean-Up procedures. Improved Stock Control (Hazardous materials).

Target 5-7% reduction in Utility bills Equipment standby procedures Waste Reduction – packaging

Environment


Asset manageme



Environmental management: Mid-term(2-3 years)

Mid-term (2-3 years): Reduce content of Hazardous materials . Integrate End of life initiatives into design processes. Review delivery scheduling with outsourced logistic company Implement Odour Reduction policy (through filter ventilation). Develop Robust Emergency Response Plan (See Portfolio)

Target 10-15% reduction in Utility Bills Target 25% reduction in waste Replace all lighting with energy efficient solutions

Environment


Asset manageme



Environmental management: Long-term(3-5 years)

Long-term (3-5 years) Manufacturing process should Go as green as possible

Review potential benefits of renewable energy solutions, e.g. solar panels

Complete Review of usage and substitution of hazardous materials where technically feasible.

Review potential for ‘Brown water’ recycling for use in manufacturing processes.

Integrate Environmental Management system with Quality and H&S systems

Target 25% reduction in Utility bills.

Environment


Asset manageme



5- Life-cycle management

Current situation:Cost estimation is based on expert judgmentCosting activities are not documentedForecasting is done on a yearly basisEnd of life disposal is not considered for raw materials

selection

Life-cycle


Asset manageme



Life-cycle management: Future situation

Linking life cycle management action points to the EFQM criteria for

Life-cycle

4b. Finances are managed to secure a sustained success

4c. Buildings, equipment, materials and natural resources are managed in a sustainable way

4b-2. Design the financial planning, control, reporting and review process to optimise the efficient and effective use of resources

4b-4. Evaluate, select and validate investment in, and divestment of, both tangible and non tangible assets taking into account their long-term economic, societal and ecological effect

4c-4. Measure and manage any adverse effects of the organization’s operations on the community and the people

4c-5. Adopt and implement appropriate policies and approaches to minimize their local and global environmental impact, including setting challenging goals for meeting and exceeding legal standards and requirements

Reform cost estimation methods ✓ ✓

Save and review costs more regularly ✓ ✓

Review forecasts more regularly ✓

Use standard material ✓ ✓Document all costing activities ✓ ✓ Use of recycle rubber material ✓ ✓


Asset manageme



Life-cycle management: Short-term (1 year)

Reduce forecasting intervals to a quarterly basisHazardous materials to comply with current and

future legislationDo a ‘parametric analysis’ for the costs of raw

materialsDocument and review

Life-cycle


Asset manageme



Life-cycle management: Mid-term (1-3 years)

Monthly forecastingConsider strategies for end of life disposalsAll materials to comply with current and future

legislation

Life-cycle


Asset manageme



Life-cycle management: Long-term (3-5 years)

Reduce forecasting intervals to a weekly basisTotal lifecycle costing and analysis (depreciation,

purchase price, disposal, maintenance, etc.)

Life-cycle


Asset manageme



6- Maintenance management

Importance:1. Efficient utilization of resources2. Minimize asset operation failures3. Maintain and improve service levels

Maintenance


Asset manageme



Maintenance management: Current level

Elements Consequences of failure

Current maintenance levels

Responsibilities

IT system Business operation and machine shut down

IT recovery system IT department

Machines and tools Stop productions, affect cash flow and other business functions

Ad hoc maintenance schedule

Production supervisors

Vehicles (internal) Failure to transport inventory

Ad hoc maintenance schedule

Operatives

Maintenance


Asset manageme



Maintenance management: Action plan

Short-tem (1 year) Create a maintenance plan

Assign 2 operatives and 1 supervisor to be in charge of maintenance Finished maintenance tasks should be reported and, then documented in the

knowledge management system

Mid-term (1-3 years)Review the maintenance plan

Reconsider number of member in the maintenance team Run an annual inspection of maintenance (maintenance team, works

manager) Initiate preventive maintenance project

Long-term (3-5 years) Apply the preventive maintenance plan

Maintenance


Asset manageme



7- Resource utilization

Problem Waste material in production process High inventory volume Outdated demand plan? (Entry Euro Market)

Action plan Understand the constraints in production process Combine forecasting plan with Just-In-Time (JIT) production

Utilization


Asset manageme



Recommendations

Create a team (one to three people) with the specific purpose of managing company’s assets

Create greater awareness and benefits of knowledge and asset management within the business

THE SUCCESS OF THE ASSET MANAGEMENT PLAN IS HIGHLY

DEPENDENT ON ACHIEVING MANAGEMENT BUY-IN

PLAN WILL REQUIRE CAREFUL CHANGE MANAGEMENT

Conclusions

Mertins, K; Heisig, P; & Vorbeck, J(2003)Knowledge Management: Concepts and Best Practices. 2nd Edition. Springer-Verlag.

EFQM Excellence Model (2010). EFQM Publications. Pan, S.L & Scarbrough, H (1999) Knowledge management in practice: An

exploratory case study. Technology Analysis & Strategic Management. 11 (3), Pp. 359

Frost, Alan (2010) An Integrated Knowledge Management Framework. [Online] www.knowledge-management-tools.net. Access Date: 19/04/2012

Jennex Murray (2005) Case Studies in Knowledge Management. Idea Group Publishing. Hershey: USA.

Campbell, J.D., Jardine, A.K.S & McGlynn, J. (2010). Asset Management Excellence: Optimizing Equipment Life-Cycle Decisions, Second Edition. CRC Press 2010

Gordon Sinnamon and Susan Milner, 1996, ”Just-In-Time Schedules For The Small Make-To-Order Shop”, Canadian Journal of Administrative Sciences, vol. 12, issue 4, pp. 340-351

R.J. Tersine, 1994, “Principles of inventory and materials management”, Englewood Cliffs, N.J.; London:Perntice-Hall International

References

knowledge-based asset management for waveriders

Documents

discardedasset management

skill management

midterm plan

shortterm plan

longterm plan

discoverexisting knowledge

data security

relevance obsolete knowledge