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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 ManagementProblem: 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.”
-5 -4 -3 -2 Last Year
Sales History 1551 1468 1410 1321 1296
Stock (from B/S) 852 1063 1283 1482 1764
-5.4% -4.0% -6.3% -1.9%
24.8% 20.7% 15.5% 19.0%
Analysis of the Current Problem
Overstock
Lack of Knowledge Sharing
Lack of Communication
Undesirable Working Environment
Lack of Inventory
Management
Approaches to Solve the Problem of Overstock
Overstock
Lack of Inventory
Management
Lack of Communication
Undesirable Working
Environment
Lack of Knowledge
Sharing
Knowledge Management
AssetManagement
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
KnowledgeResources 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
QUESTIONS?Thank You!