1. B2 Consulting – Proposal for WaveRiders
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2. Agenda WaveRiders Current situation & Vision.
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Agenda
WaveRiders Current situation & Vision.
Review on WaveRiders Knowledge & Assets Management with the criteria of EFQM.
Approaches to Excellence for WaveRiders.
Aftermaths for the future.

3. Company Structure–B2 Consulting
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Company Structure–B2 Consulting
High Performance. Delivered!
Board of Directors:,
Wei Zhao , William Tan, Reiya Yan, Hok In Leong,
Longshi Yang, Rossmary Caballero

4. WaveRiders Current Situation and Vision
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WaveRiders Current Situation and Vision
“To become one of the most highly recognised leisure based corporation within Europe”
WaveRiders current state of affairs
Primary Priorities
Increase Profit
Cut Costs
Secondary Priority
Over Stocks

5. Asset management & knowledge management to solve the problems
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Asset management & knowledge management to solve the problems
Overstock
High wastage
High costs
Asset management
Improves communication
Sharing of information between departments
Knowledge management

6. MBE B Consulting ©
Review on WaveRiders Knowledge & Assets Management with the criteria of EFQM.
Life-Cycle Management
Analyse the current life-cycle procedures of WaveRiders: Identify major cost drivers
Assess the total cost and financial benefits for WaveRiders: Cost control
Criteria of EFQM (4c)
Managing the maintenance and utilisation of assets to improve total asset life cycle performance.
Developing a strategy for managing buildings, equipment and materials that supports the organisations policy and strategy.
Definition:
A life-cycle cost is simply an aggregate of the costs and financial benefits (including financial equivalents of impacts and benefits) of an asset, covering its whole life-cycle, from design through to final disposal.

7. Porter’s Value Chain (1985): WaveRiders Life-Cycle
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Porter’s Value Chain (1985): WaveRiders Life-Cycle
Horizontal progress: inbound -> operations -> ...
Vertical progress: HR + TD + Procurement + FI

8. Define the “Boat” Distribution Costs Administration Costs Energy Costs
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Distribution Costs
Administration Costs
Energy Costs
Raw Materials
it also includes the maintenance concept and organisation which will be used to support the equipment
in defining the system to be costed, it should only be defined to the detail with which data will be available and to which the life cycle cost will be sensitive
Direct Labour
Overstocks
Waste

9. Raw Material Procurement
Major Cost Drivers
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Raw Material Procurement
Operations
Distribution Factors
Marketing and Sales
After-sales Service
Supplier selection
Labour efficiency
Selection of transport carriers
Skills of sales force: low skilled sales incurred high costs
Product recalls frequency
Timing of raw mat. purchases
Equipment usage
Delivery schedule planning: quantity + frequency
Products priced to generate sales volume
Return of products: dissatisfied customers
Price of raw mat. purchases
Organizational planning
Advertising
Manufacturing technology

10. Solutions Supplier development: suppliers’ performance evaluation
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Supplier development: suppliers’ performance evaluation
Seek for new suppliers
Implement Lean six sigma into operations
Employees training
Delivery schedule planning
Decrease raw mat. price by ordering with other companies: increment of purchasing quantity
From Make-to-Stock to Make-to-Order strategy shift
Marketing through e-business(Social Media)

11. Solutions Supplier development: suppliers’ performance evaluation
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Supplier development: suppliers’ performance evaluation
Seek for new suppliers
Implement Lean six sigma into operations
Employees training
Delivery schedule planning
Decrease raw mat. price by ordering with other companies: increment of purchasing quantity
From Make-to-Stock to Make-to-Order strategy shift
Marketing through e-business(Social Media)

12. Suggestion: Make-to-Order Strategy
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Key points:
Make sure the sales reps are comfortable with the new process
Supplier commitment is crucial
Need closer collaboration between departments
Implement the new process in increments; the company started with a 120-day cycle, then reduced it to three weeks, then one week
Benefits for WaveRiders:
Reduce costs: warehouse(labour, equipment, energy expenses, administration expenses)
Reduce wastage
Increase cash liquidity
New concept: Customer customization

13. What you can expect!
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14. Cont. - Resources Utilisation
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Cont. - Resources Utilisation
Resources Utilisation
Inventory management
Production Scheduling
Criteria of EFQM (4c)
Optimising material inventories.
Optimising consumption of utilities.
Managing the maintenance and utilisation of assets to improve total life cycle performance.
Current Problems
High Cost in Production and Operation
High Waste in Production and Operation
Over Stock

15. Approaches to Excellence for WaveRiders
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Approaches to Excellence for WaveRiders
Just In Time
“to eliminate waste and to improve the flow of materials, so value is added throughout the transformation process”
Benefits:
Long–term relationship between supplier and buyer – buyer able to shift the responsibilities for inventory and quality to the supplier to reduce the inventory cost, reduced inspection, scrap and re-work costs.
Involving the supplier in the design stages for Value Engineering Savings.
Reducing material handling costs
Reduced Set-up time
Reduced storage facilities: Supplier parts flow through the production process, allowing point of assembly.

16. Simple Production System
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What can WaveRiders do?
WaveRiders
Revised Layout
Reduce Set-up time
Simple Production System
JIT Purchasing
Management Support:
Performance Measurement : Provide employees specific goals and targets and regularly present feedback and to develop greater congruence between these goals.
Cross-training: problem- solving techniques + technical skills.

17. Aggregated planning Demand Pricing, Advertising and promotion
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Aggregated planning
Match between Demand Supply
Demand
Pricing, Advertising and promotion
Backlog or reservation, development of complementary products
Aggregated planning
Low inventories
Good labour relations
Low costs
Flexibility to increase future output levels
Good customer services
AP costs
Supply
Hiring and layoffs
Overtime and undertime costs
Inventory carrying costs
subcontracting
an operational activity which does an aggregate plan for the production process, in advance of 2 to 18 months, to give an idea to management as to what quantity of materials and other resources are to be procured and when, so that the total cost of operations of the organization is kept to the minimum over that period.
(Lin Pan et al)

18. AP strategies For WaveRiders
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AP strategies For WaveRiders
Level plans
Using a constant workforce& produce similar quantities each time period
Using inventories and backorders to absorb demand peaks &valleys
Chase Plans
Minimising finished good inventories by trying to keep pace with demand fluctuations
Hybrid strategies
Build-up inventories ahead of rising demand and use
Lay-off furlough workers during lulls
Subcontract production or hire temporary workers to cover short-term peaks
Reassign workers to preventive maintenance during lulls
Tools:
The linear decision rule
The transport method
The linear programming
Level plans:
- Use a constant workforce & produce similar quantities each time period - Use inventories and backorders to absorb demand peaks & valleys
Chase plans:
- Minimize finished good inventories by trying to keep pace with demand fluctuations
Hybrid Strategies
- Build-up inventory ahead of rising demand and use backorders to level extreme peaks - Layoff or furlough workers during lulls - Subcontract production or hire temporary workers to cover short-term peaks - Reassign workers to preventive maintenance during lulls
(R. Dan Reid et al)

19. Aftermaths for the future
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Aftermaths for the future
The potential profits for WaveRiders when both approaches have applied:
Reduced raw material stocks by 70%.
Increased inventory turnover by 80%.
Reduced scrap by 50%
Increased supplier quality by 30%
Reduced supplier cost by 10%

20. Knowledge management Asset management would succeed
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Knowledge management
Asset management would succeed
From Improved communication and coordination by applying knowledge management.
Knowledge management could help:
shared vision and culture at all levels;
Increase the intellectual assets and speed up the innovation
Increase the capability to respond customer and market needs quickly and then improve the corporate value.

21. KM for WaveRiders Provide knowledge sharing culture and environment
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KM for WaveRiders
Provide knowledge sharing culture and environment
Empowerment (encourage to take risk and ownership)
Motivate trust
Remove barriers, eg “blaming” culture
Training employees to share knowledge
Support communication: meetings, feedback, reviews (Performance measurement)

22. Chief Knowledge Officer
Use of CKO--- implementation of KM
Chief Knowledge Officer
the knowledge creation process should
be purposeful, i.e. with a client for the
outputs. The process of creation requires
innovative individuals, more often than not
working in teams. These are networks of
experts with access to knowledge technologies
including those for knowledge capture, storage
and transfer. Outputs from knowledge
creation are in the problem-solving domain
for unknown problems and new knowledge,
for instance in terms of process improvement.
Measures of the success of knowledge creation
need to include assessment of the
reliability of the knowledge, the extent to
which it solves a problem, timeliness, acceptability
within the organisation and
readiness to exploit it should it lead to new
opportunities, the cost of exploitation and
potential value.

23. MBE B Consulting ©
Questions & Answers?

24. MBE B Consulting ©
References:
Pragman, Claudia. "JIT II: a purchasing concept for reducing lead times in time-based competition. (just-in-time management)." Business Horizons, July-August 1996 v39 n4 p54(5).
Funk. Jeffrey L. “Just-in-time manufacturing and logistical complexity”. International Journal of Operations & Production Management, Vol. 15 No. 5, 1995, pp University Press.
Waters-Fuller. Niall. “The benefits and costs of JIT sourcing – A study of Scottish suppliers”. International Journal Of Physical Distribution & Logistics Management, Vol. 26 No pp
Implementing Knowledge Management: Three Strategies for Effective CKOs STEFFEN RAUB, HEC, Lausanne DANIEL VON WITTICH, University of Lausanne. European Management Journal Vol. 22, No. 6, pp. 714–724, 2004
Knowledge Management and process performance. Colin Armistead is Professor at The Business School, Bournemouth University, Bournemouth, UK.