1. Knowledge-Base Asset Management For WaveRiders Knowledge Power (KP) Consulting Ltd. “The dwarf sees further than the giant, when he has the giant's shoulders to mount on. ～ Coleridge” CEO: Ian Racker GM: Alex Trush Sr. Director: Juan David Ibagon Sr. Manager: Sakshi Sachdev Sr. Consultant: Chi-Wen, Shih Sr. Consultant: Shaan Moin

2. Table of Contents Thought Map Asset Management (AM) Knowledge Management (KM) Conclusion Knowledge Power (KP) Consulting Ltd.

3. Thought Map WaveRiders’ Targets EFQM Framework and Tools Asset Management Knowledge Management Continuous Improvement Knowledge Power (KP) Consulting Ltd.

4. WaveRiders ’ Targets Reduce costs. Balance production and sales. Increase market share. Avoid stagnant UK market by entering EU. Creation of intellectual capital Knowledge Power (KP) Consulting Ltd.

5. Relevant EFQM Criteria Reliable, available knowledge Align resource allocation with strategy (long-term) in a sustainable manner (4c) Transforming data into knowledge (4e.6) Actively use knowledge through suitable working environment Improving and developing people’s skills in acquiring knowledge Provide people with the right tools/equipment (customer experience 5d.2) Health & Safety Knowledge sharing with stakeholders Resource sharing with stakeholders Identify the potential opportunities in investment in assets. Use and manage technology effectively/flexible and IT to support effectiveness/innovation Considering financial aspects (pay-off) Involve stakeholders in development/deployment Effective information transformation paths/approaches Accessibility and appropriate manage of information Link with KM to individual performance Use potential of recycling (5d.3) environmental impact (4c) Knowledge Power (KP) Consulting Ltd.

6. Asset Management (AM) A. FacilitiesE. Maintenance B. SecurityF. Environmental C. Healthy & SafetyG. Resources D. Life-Cycle Utilization Knowledge Power (KP) Consulting Ltd.

7. Facilities Management Knowledge Power (KP) Consulting Ltd.

8. Employ a Facilities Manager Training for- Leadership skills Technical understanding and management know-how Purchasing and contracting skills Personal and interpersonal skills Knowledge Power (KP) Consulting Ltd.

9. Business Continuity Plan Critical functions for WaveRiders Staff wages Call Centre IT department Sales Goods In Distribution Manufacture Knowledge Power (KP) Consulting Ltd.

10. Risk Assessment of possible Hazards Flooding IT failure / loss of data Utility failure Fire or explosion Transport accident Extreme weather Loss of premises Staffing issues Knowledge Power (KP) Consulting Ltd.

11. Flooding in 2009 15 th November, 2009 Hazards for the Company Loss of access and utilities (electricity, phones, etc.) Water damage to equipment and stock Cost of damage and or fines pollution Teams working on the ground floor Customer and suppliers Knowledge Power (KP) Consulting Ltd.

12. Outsourcing Activities Medical- Doctor ( Reduce costs, Gain better results) Cleaning Services for the premises ( Reduce costs) Laundry services (Reduce costs) Gardener for the lawns (Increase Flexibility) Cafeteria and Canteen services( Focus on core skills) Knowledge Power (KP) Consulting Ltd.

13. Mitigations Suggested Monitor Flood Warnings issued by Environment Agency Insurance to cover damage to equipment and premises Relocate premises to higher ground Floodgates / sandbags stored ready for use Knowledge Power (KP) Consulting Ltd.

14. Health & Safety (activities) To prevent accidents and cases of work related ill health. Prevent from paint causing internal damage to health. Implement emergency procedures evacuation. To create and maintain safe and healthy working conditions. (hygiene). Ensure the storage of harmful substances. Knowledge Power (KP) Consulting Ltd.

15. Health & Safety (actions) Carry out risk assessments and review regularly by supervisor. Provide employees with necessary equipment. E.g (masks, or ear plugs). Establish well signed escape routes and be kept clear at all times. Regular inspection for the working conditions. (every week, include clean water, electrical safety). Store the harmful substances in contained area, and making everyone aware. Knowledge Power (KP) Consulting Ltd.

16. Security (activities) ISO 17799: "Management should set a clear policy direction and demonstrate support for, and commitment to, information security through the issue and maintenance of an information security policy across the organization“. Prevention from any theft and damage. Restrict unauthorized access. Making computer systems protected from hacking. Information management. (securing the information). Knowledge Power (KP) Consulting Ltd.

17. Security (actions) Install CCTVs cameras which is to be monitored regularly. Hire security patrol to monitor the premises. Prevent unauthorised access in the IT network. E.g (build firewalls and spam filters). Build relevant data back up policy to prevent loss of data. Knowledge Power (KP) Consulting Ltd.

18. Life Cycle Management Knowledge Power (KP) Consulting Ltd. Why Life Cycle Management 1.Identify the most cost-effective system and project options 2. Assist effective programme cost control 3. Identify major cost drivers 4. Enable balanced “cost or profit” viewpoint to be considered in “trade-off” decisions 5. Assess cost-benefit and pay-back sensitivity of new technology 6. Fairly assess early investments against later benefits 1.Identify the most cost-effective system and project options 2. Assist effective programme cost control 3. Identify major cost drivers 4. Enable balanced “cost or profit” viewpoint to be considered in “trade-off” decisions 5. Assess cost-benefit and pay-back sensitivity of new technology 6. Fairly assess early investments against later benefits Costs BenefitsAssets Investments

19. How to apply Life Cycle Management? Definition of equipments’ and systems’ costs and life periods 1. Deliver every equipment and labor cost into the fixed categories. 2. Define the curate data resources. 3. Define the timeliness of every equipment or labor. Standardization & Documentations. 1. Computerized. 2. Link to WaveRiders’ Intranet Server. 3. Share the information. Search alternatives, cost breakdown structure, demand predication & reduce wastes 1. Search and eliminate the non-value added activities and wastes. 2. Reconsider the costs as time line. 3. Predicate the year-by-year profile of the expenditure and income. Training Control New Production Budget by using DFSS Knowledge Power (KP) Consulting Ltd.

20. Maintenance Management Knowledge Power (KP) Consulting Ltd. Why Lean Thinking? 1. Reduce non-value activities and wastes 2. Clear Job Descriptions 3. Frequent review and control 4. Preventive Maintenance 1. Reduce non-value activities and wastes 2. Clear Job Descriptions 3. Frequent review and control 4. Preventive Maintenance New Production Development New Factory (Limington) Old Factory & Equipments Old Production

21. How to apply Maintenance Management? Definition of Work Description 1. Define the flow charts of each operating item. 2. Deliver every maintaining action and job into the fixed categories. (ex. Base on importance: Regular, Preventive, and Emergent) 3. Count the time and cost of every action and job. 4. Build warning system and the risk-control framework. Standardization & Documentations. 1. Computerized. 2. Link to WaveRiders’ Intranet Server. 3. Share the information. Search alternatives, cost breakdown structure, demand predication & reduce wastes 1. Search and eliminate the non-value added activities and wastes. 2. Coordinate and Increase the common repair materials. 3. Outsource High-cost and low-tech activities, such as cleaning work. Training Knowledge Power (KP) Consulting Ltd.

22. Definition of Work Description Acceptable: Does not affect daily business Important: Minor impact on daily business Crucial: Tremendous impact on daily business Furniture, lamps, printer, etc. Air conditioner, computer, cars, etc. Manufacturing machinery, IT Server & Network Regular maintenance Preventive maintenance Emergent maintenance Knowledge Power (KP) Consulting Ltd.

23. Environmental Management ISO 14001 certificate 7 Areas of environmental challenges: -Atmosphere- Ocean -Toxic chemicals - Biotechnology -Freshwater - Biodiversity -Land 7 Areas of environmental challenges: -Atmosphere- Ocean -Toxic chemicals - Biotechnology -Freshwater - Biodiversity -Land WHY ? Performance Improvement WHY ? Performance Improvement Knowledge Power (KP) Consulting Ltd.

24. How to become eco ? Cleaner Production: Great impact  Improve housekeeping Reduce electricity consumption & heating Preventative actions against, e.g. spilling More training  more efficient use Provide excellent tools ( e.g. cutting fabric )  Recycling / Reusing / Disposal Oily water / Waste paint General recycling system  Using latest developments Use of solvent free paint Use of more natural materials Knowledge Power (KP) Consulting Ltd.

25. How to become eco ? Hybrid of preventative and controlling technology  Preventive: New factory side in Lymington Use DFSS tools to design the layout and process  Controlling: Existing site Add filters to paint shop Knowledge Power (KP) Consulting Ltd.

26. Resource Utilisation Entering European market Increasing demand Higher throughput One approach must be chosen Just In Time (JIT) Knowledge Power (KP) Consulting Ltd.

27. JIT in practice Cellular manufacturing ( 3 cells )  CAD and mold making stays separate  3 teams of 6 or 7 members plus one supervisor satisfy special request Higher throughput Pulling instead of Pushing Eliminate bottlenecks Cross functional training KANBAN system  Inventory raw material is delivered to workplace straight away  Automatic indicator if running out of material (fabric, fiber glass) Knowledge is needed about inventory (IT) Knowledge Power (KP) Consulting Ltd.

28. Knowledge Management Knowledge Power (KP) Consulting Ltd.

29. Knowledge Management overview Tacit Explicit Technological – explicit (storage, bases) Cultural – tacit (sharing, learning) “The effective utilization of knowledge and learning requires both culture and technology” "Knowledge Management is the discipline of enabling individuals, teams and entire organisations to collectively and systematically create, share and apply knowledge, to better achieve their objectives" Ron Young, CEO/CKO Knowledge Associates International Knowledge Power (KP) Consulting Ltd.

30. Where to Start? 1. Current situation 1. Use EFQM criteria 2. Made a comparison 3. Gap analysis 4 Action plan 5. Revision of initial map External environment Social network Available resources Knowledge Power (KP) Consulting Ltd.

31. Current situation No sharing environment No links between departments Different knowledge databases for explicit knowledge managed by each department without access from others. No learning culture within the company No interaction with employees of other departments No leadership skills to create a learning environment. No overall picture of knowledge resources in the company No interaction between internal and external knowledge No shared and accessible database at all levels Lack of understanding of knowledge resources and owners There is no knowledge development strategy No systematic approach for keeping using the lessons learned Poor uses of external sources to generate new knowledge No updating process of current knowledge (policies, strategic goals, achievements, results) Poor using of the Best practices Lack of Knowledge translation Each person working in the office has a computer. Knowledge Power (KP) Consulting Ltd.

32. Comparison and Gaps №EFQM criteriaCurrent Situation 1Reliable, available knowledge 2Transforming data into knowledge 3 Actively use knowledge through suitable working environment 4 Improving and developing people’s skills in acquiring knowledge 5Knowledge sharing with stakeholders 6 Use and manage technology effectively/flexible and IT to support effectiveness/innovation 7 Effective information transformation paths/approaches 8 Accessibility and appropriate manage of information 9Link with KM to individual performance Knowledge Power (KP) Consulting Ltd.

33. Action Plan ActionsEFQM — Knowledge-base strategy All Create an Intranet source 1, 2, 3, 5, 6, 7, 8 — External sources 2, 5, 6, 7, 8 — Organize the workshop describing intranet opportunities 1, 2, 3, 4, 6, 8 — Continuous development of inter-personal and technical skills (Training) 1, 2, 3, 4, 6, 8 — Make the Knowledge map to allocate the main knowledge resources 1, 2, 3, 6, 8 — Creating of culture of learning organisation 1, 2, 3, 4, 5, 8,9 — Strategy communication through the company 3, 5, 7, 8, 9 — Communities of practise 2, 3, 4, 8, 9 — Create a Knowledge Network 2, 3, 4, 8, 9 — Allocate the knowledge agents in each department (Weekly Meetings, encourage employees, rewards system) 3, 4, 9 — General meeting cross-functional departments 3, 4, 9

34. 1) Knowledge-based strategy Value creation: internally (processes, design) Focus on Competence of people Value creation: externally (customer relationship, brand awareness, reputation) Knowledge Power (KP) Consulting Ltd. Sveiby (2001)

35. 2) Intranet Ease to use and accessUniversal access to information Person to person interactionInformal Networks

36. Intranet Page Policies and Guidelines Knowledgebase Network Information Staff Directory Resource center Customers Finance Chat News Site Map About Training Intranet Applications Acquiring Knowledge Store Knowledge Share Knowledge Update Knowledge

37. Intranet Policies and Procedures Stop cards General Issues Community of practice Training, Tests Knowledge Maps Ideas Lessons Learned Dynamic approach Up to date knowledge Accessibility and reliability Inventories

38. 3) Knowledge Mapping (knowledge representation) An ongoing quest within an organization (including its supply and customer chain) to: help discover the location, ownership, value and use of knowledge learn the roles and expertise of people, identify constraints to the flow of knowledge, and highlight opportunities to leverage existing knowledge. It illustrates or "maps" how knowledge flows throughout an organization. (D. Grey, 2002 Smith Weaver Smith Inc) Grey, D (1999)

39. Where to focus? Enterprise Knowledge Map Cross functional Knowledge Map Process Knowledge Map Knowledge Power (KP) Consulting Ltd.

40. Outcome Knowledge Power (KP) Consulting Ltd. CEO of the WaveRiders Appropriate knowledge sources used For each business process Input (the knowledge map) The time spend less and efficiency is higher Value Employee using sources effectively Improvements Knowledge sources allocation Stakeholders Knowledge

41. 4) Knowledge Network Knowledge Power (KP) Consulting Ltd. Suppliers Customers Competitors Wave Riders Shonstrom (2005)

42. Communities of Practice The problem: Market, customers Arrange a meeting for production, sales, R&D Interview the key members Run some exercises to get people involved Build a social network graph Use Intranet for creation of CM page Put the photos of the members Create a hot topic on the page Knowledge creation, sharing and evaluation Knowledge Power (KP) Consulting Ltd.

43. 5) External Sources (Watson tool) Knowledge Power (KP) Consulting Ltd.

44. Workshops & Training Cross-functional meetings (monthly) Stop Cards Departments meetings (Weekly) Interpersonal skills Technical Skills Intranet Health & Safety Simulations Knowledge Management Knowledge Power (KP) Consulting Ltd.

45. 6) Learning organization culture Culture Sharing Evaluation Creation Personal Mastery Building Shared Vision Team Learning Mental Models System Thinking Knowledge Power (KP) Consulting Ltd.

46. Motivation Engagement Incentives - Opportunity to get promoted in the future - Acknowledgement of the employees achievements (monthly, quarterly, yearly) - Bonuses, rewards for proactive behaviour (updating lesson’s learned, stop cards filled, using knowledge database) Knowledge Power (KP) Consulting Ltd.

47. Conclusion №EFQM criteriaDesired Situation 1Reliable, available knowledge 2Transforming data into knowledge 3 Actively use knowledge through suitable working environment 4 Improving and developing people’s skills in acquiring knowledge 5Knowledge sharing with stakeholders 6 Use and manage technology effectively/flexible and IT to support effectiveness/innovation 7 Effective information transformation paths/approaches 8Accessibility and appropriate manage of information 9Link with KM to individual performance Knowledge Power (KP) Consulting Ltd.

48. Conclusion WaveRiders can see further because standing on The EFQM giant’s shoulder. Knowledge-Base Asset Management (KBAM) can drive WaveRiders to continuous improvement. Knowledge Power (KP) can help WaveRiders to find the right directions at the right time. Knowledge Power (KP) Consulting Ltd.

49. Gantt Chart & Cost (04/2011~09/2011) Topic Hrs AprMayJunJulAugSep Business Diagnosis60 Total Improvement320 Asset Management160 Identify Job48 Training24 Perform Activities88 Knowledge Management160 Identify Job60 Build KM System120 Total Cost380 20%45%60%75%90%100% Knowledge Power (KP) Consulting Ltd.

50. Question ? Knowledge Power (KP) Consulting Ltd. “The dwarf sees farther than the giant, when he has the giant's shoulders to mount on. ～ Coleridge”

51. References Akiho, L. (2000), Overview of Total Productive Maintenance: Case Studies of Best Practice of the Japanese Manufacturing Industry, ChuSanRen (Central Japan Industries Association), Nagoya Charles A. Schuman and Alan C. Brent (2005), Asset life cycle management: towards improving physical asset performance in the process industry, International Journal of Operations & Production Management, Vol. 25 No. 5/6, pp. 566-579 EFQM (2010) EFQM Excellence model. Belgium: EFQM Publications. Grey, D. (1999). Knowledge Mapping :A Practical Overview. Available [Online] http://www.google.co.uk/url?sa=t&source=web&cd=3&ved=0CCAQFjAC&url=http%3A%2F%2Fwww.impactalliance.org%2Ffile_do wnload.php%3Flocation%3DS_U%26filename%3D10383546681Knowledge_Mapping.htm&rct=j&q=It%20illustrates%20or%20%22m aps%22%20how%20knowledge%20flows%20throughout%20an%20organization.&ei=8U6eTf2fKoXz4Qby3rm6Aw&usg=AFQjCNGP hxduj5UecgJeWjaXbvcAEXDavA&cad=rja (Accessed on April 7th 2011) Krebs, V. (2011). Knowledge Networks. Available [Online] http://www.orgnet.com/IHRIM.html (Accessed on April 7th 2011) Lippman, M. (2006). Knowledge mapping as a technique to support knowledge translation. Bulletin of the World Health Organisation. 84 (8). Notes KBAM (2011). Learning organisations. Available [Online] http://www2.warwick.ac.uk/fac/sci/wmg/ftmsc/modules/modulelist/kbam/sessions/km/cckm/kmm/lo (Accessed on April 7th 2011) Shonstrom, M. (2005). Creating knowledge networks: lessons from practice. Journal of Knowledge Management. Vol. 9. N0. 6. p.29 Sveiby, K-E. (2001). A Knowledge-based Theory of the Firm To guide Strategy Formulation. Journal of Intellectual Capital. Vol. 2. Tsang, A.H.C., et al. (2000), Reliability centred maintenance: A key to maintenance excellence, Hong Kong: City University of Hong Kong Tony Rojas and Jim H Davis (2008), Implementing an Asset Maintenance: Management Strategy... Where Do You Start?, Water & Wastewater International, Vol. 23 No. 2, pp. 16-20 Knowledge Power (KP) Consulting Ltd.

52. Facilities Management Key Management Areas: - Understanding Business Organization - Managing People - Managing Premises - Managing Services - Managing the working Environment - Managing Resources

53. Drivers for Facilities Outsourcing Sea Spray Sea Horse Sea Sport Sea Away Sea Catch Reduce costs (overhead expenditure) 88661 Gain better results (higher quality, faster or safer services) 66552 Increase flexibility (expand/contract to react to their markets) 99553 Focus on core skills 88551 Note: 10 means most suitable to be outsourced; 1 most unsuitable

54. Asset Maintenance Management Strategy (AMMS) Process: a. Know your Assets b. Know Where are they at c. Know their conditions d. Design Criteria and Proper Operations e. Asset Care Programs f. Effective Optimization 1.To establish the proper “Key Performanvce Indicators (KPIs)” 2. To collect the right data at the right time Source: Tony and Jim (2008)

55. Sound Maintenance Work Identification & Control Job Planning Work Order Scheduling Preventive / Predictive Optimization Materials Coordination Scheduled Outage / Shutdown Coordination Source: Tony and Jim (2008)

56. Asset Maintenance Optimisation Framework Source: Tsang et al. (2000)

57. Maintenance Management Current Situations: 1. Some parts of manufacturing machines are old. 2. Production loss and delay. 3. No warning of failure. 4. Maintaining components are Over saved. 5. Unclear maintenance jobs and responsibilities. Suggested Resolutions: 1. Lean Management – 5S (Sort, Straighten, Scrub/Shihe, Standardize, and Sustain) - Reduce wastes, Work Identification & Control, etc. - Preventive / Predictive Optimization Knowledge Power (KP) Consulting Ltd.

58. Maintenance Management - DMAIC 1. Some machines are old. 2. Production loss and delay. 3. No warning of failure. 4. Unclear jobs and responsibilities. 5. Other EFQM requirments Lean Management – 5S (Sort, Straighten, Scrub/Shihe, Standardize, and Sustain) 1. Generate ideas 2. Find root causes 3. Measure Variation 1. Preventive / Predictive Optimization 2. Work Identification 3. Reduce Wastes 4. Training 5. Materials Coordination 1. Standardization 2. Documentations 3. Frequently Review Knowledge Power (KP) Consulting Ltd. Define Measure Analysis Improve Control

59. Total Productive Maintenance (TPM) "Total productive maintenance is based on teamwork and provides a method for the achievement of world class levels of overall equipment effectiveness through people and not through technology or systems alone." (Willmott, 1994)(Willmott, 1994) Source: Davis (1995)Davis (1995)

60. Resources Dimension Cost Source: Tsang et al. (2000)

61. Maintenance Framework to extend the life Span of Assets Source: Akiho (2002)

62. The Proposed Asset Life Cycle Management (ALCM) model (a) PIR refers to the post implementation review Source: Charles et al. (2005)

63. Life Cycle Management Current Situations: 1. Inefficient use of Budget. 2. Unclear financial records (cost or profit) for each product’s life-cycle 3. New factory and product will be developed Suggested Solutions: 1. ALCM (Asset Life Cycle Management) 2. DFSS (Design for Six Sigma) 3. ABC (Activity Base Cost) Knowledge Power (KP) Consulting Ltd.

64. Life Cycle Management - DMAIC 1. Inefficient use of Budget. 2. Unclear financial records (cost or profit). 3. New factory and product will be developed. 4. Other EFQM requirments 1. ALCM (Asset Life Cycle Management) 2. DFSS (Design for Six Sigma) 1. Generate ideas 2. Find root causes 3. Measure Variation 1. Training 2. Demand Predication 3. Reduce Wastes 1. Standardization 2. Documentations 3. Frequently Review Knowledge Power (KP) Consulting Ltd. Define Measure Analysis Improve Control

65. Life Cycle Management Definition of system, requirements, alternatives and cost breakdown structure Cost estimation using the most appropriate method Discounting and Cost Profiling Evaluation of alternatives and identification of the preferred solution

66. Life Cycle Management – Data Resources Engineering Design Data Reliability and Maintainability Data Logistic Support Data Production or Construction Data Customer Utilization Data Value Analysis and Relative Data Accounting Data Management Planning Data Marketing Data