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Agenda The Current Situation in WaveRiders Approaches Asset Management (AM) Knowledge Management (KM) Tools we suggest Just In Time (JIT) 6-S Methodology Knowledge Management EFQM Conclusion

THE CURRENT SITUATION IN WAVERIDERS

WaveRiders and Asset Management Problem: overstock (inventory management) Production Director “It seems that everyone is saying the company's problems are due to over production. I think it's more to do with ambitious forecasting from sales when they reduced the prices last year….Stock is an issue and we need to resolve it, as some of the stock is a bit old.” Last Year Sales History Stock (from B/S) % -4.0% -6.3% -1.9% 24.8% 20.7% 15.5% 19.0%

Analysis of the Current Problem

Approaches to Solve the Problem of Overstock Knowledge Management Asset Management

ASSET MANAGEMENT & KNOWLEDGE MANAGEMENT

Asset management A systematic process of maintaining, upgrading and operating physical assets Enhances knowledge of assets and their respective values for organization Asset management aspects: Facilities management Maintenance Resource utilization Life-cycle cost management Environmental management Security Health and safety

Overview of WaveRiders Assets Buildings Equipment engineering assets Inventory Software People Knowledge assets which enhance and improve performance of engineering assets

Knowledge Management Knowledge management (KM) is process of building organizational intelligence by enabling people to improve the way they work by capturing, sharing, and using knowledge. It involves using the ideas and experience of employees, customers and suppliers to improve the organization's performance.

Knowledge management Knowledge management could enhance and improve the performance of asset management Security Environmental Management Life Cycle Management Health & Safety Facilities Management Maintenance Resources Utilization

JUST IN TIME (JIT)

Just In Time (JIT) Inventory strategy System that produces required item at the time and quantities needed Customer demand driven (“pull”)

Benefits of JIT Reduced inventories Improved quality Shorter leads time Less capital tied up in raw materials and finished goods inventory Reduction of waste (non-value added time and cost)

JIT best practices and results Large Companies Toyota, Dell (results in cost savings, superior customer satisfaction, limited waste, and the ability to provide their suppliers with more information. In the end these benefits all result in a cost savings for and higher revenue) (Broyles 2005) SME Daioku company, Taiwan (improved inventory (6 time reduction in inventory), shorter leads time, improved quality) (Gunasekaran and Lyu 1997)

Guidelines for JIT in WaveRiders Involvement of all employees Top-management support Training and development, both technical and behavioral of managers and production workers Measurable goals of the JIT process need to be established Communication between production and marketing department Communication upstream and downstream Cooperation between employees Involvement of suppliers (creating long-term relationships with suppliers, open communication with supplier, understanding of the process by the supplier and company, explanation and supplier training)

KANBAN A Japanese technique and a JIT tool (kanban = card) Control timing and the required production amount of the processes Request more manufacturing materials by using card A well planned “push” system of manufacturing planning The late processes requires only the amount that they consume the material and the time from the previous processes

How KANBAN Works

How to Set Up a Simple KANBAN System

6-S METHODOLOGY

6-S Methodology Messy-environment Over production Clean –environment Quality-focusing Why 6-S Methodology?

What is 6s(5s)? Phase 1 – Seiri / Sorting: get rid of accumulated junk that has no value to the job at hand Phase 2 – Seiton/Straighten: organize what remains/as fast as possible to reach Phase 3 – Seisô / Sweeping: creat a clean and bright environment for precision work Phase 4 – Seiketsu /Standardizing: standardize 3s to prevent it from degracing Phase 5 – Shitsuke/ Sustaining : remain and rethink the 4s established and make improvement Phase 6-Safety: a consideration of safety in the first place

Benefits Running the manufacturing plant as smoothly as possible/saving time Stardardization makes any one working in the place more comfortable and efficient/raising efficiency Organizing manufacturing process by having everyhing where it should be and working as it should be/improving quality

How to Start? Introduding 5s to employees by having meeting Creating a system or a project team(specially trained) to carry out and ensure the condition stays high standarded Painting the work place with light colours (more easily to remain clean) Speciify responsibility to individuals

Days Remove the broken components, useless tools, obsolete charts…(anything not needed for the job at hand, eliminate it) Position the materials and tools remained as convenient as possible…(any operator couldn’t begin work right away, reorganize it) Remove dust, dirt and contamination on the materials and tools very time before begin work (deteriorating more easily spotted) Check and repair lighting fixtures Remove any potential hazard/prepare insurance for potential risks

Weeks Marking between different manufacturing group could be considered as a visual control Manager has to observe and supervise the manufacuring groups by week Marking between different manufacturing group (visual control)

Monthly - Benchmarking Ranking manufacturing groups by weekly scores-choose the best one Experience recommendation-lesson learned Knowledge spreading out- learning by doing

KNOWLEDGE MANAGEMENT

Knowledge Management Asset management could be sucessful if there is coordination and communication among employees, teams and departments. Improved coordination and communication can be achieved through an approach of knowledge management. Knowledge management could help the achievement of: - shared vision and culture by employees at all levels; - improvement of skills and competencies which could ultimately lead to effectiveness and efficiency of practices of employees of the organisation - to avoid duplication of mistakes through sharing of experiences - to avoid gaps or repetition of work through effective communication

Guidelines for KM in WaveRiders -creating knowledge sharing culture and environment - empowerment of employees (encourage to take risk and initiatives; encourage to take ownership for equipment and working environment, processes) - train employees to share knowledge, explain why it is important - show employees that sharing of knowledge is a part of their job - remove “blaming” culture - promote trust; - provide means of communication: meetings, feedback, reviews - record important data, create databases, make knowledge of others be accessible to other employees

THE EFQM MODEL

EFQM Model

EFQM Model and Asset Management

CONCLUSION

Conclusion AM is now gaining greater recognition and acceptance as a significant influence upon organisational success and goal achievement which can enhance business performance. Failure to capture and transfer knowledge leads to the increased risk of ‘reinventing the wheel’, wasted activity, and impaired organisational performance Successful knowledge management could overcome learning barriers, through instilling a learning and knowledge sharing environment, providing vision and effective leadership. This type of change results in performance improvement for effectiveness in Asset Management

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