Sinnie, Honey, George, Nan, Joanne, Touran

collardsdebonairManagement

Nov 6, 2013 (3 years and 5 months ago)

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Sinnie, Honey, George, Nan, Joanne, Touran

Contents


Introduction


Asset Management


Knowledge Management


Resource Utilisation


Case study


Life Cycle Management


Other aspects


Link to EFQM


Conflicts in
WaveRiders


Conclusion

Asset Management


The entire property of all sorts belonging to a merchant or
to a trading association;
asset

an item of property;
something advantageous or well worth having










(Chambers 20th Century Dictionary, 1983)


Facilities Management


Security


Health and Safety


Environmental Management


Life Cycle Management


Maintenance


Resource Utilisation







Knowledge Management


Data


Data represents facts or statements that have no
relationship with each other but when collected
becomes knowledge….


Knowledge


The collection of information or data that is useful in
achieving goals.

Knowledge Management


KM encompasses both a people focus and an IT focus.


IT facilitates but the big issue is people, who generate,
share, and apply knowledge.


Leadership is integral to Knowledge Management.


Much of KM is about nurturing policies and processes
that help knowledge flow; to be shared, created and
evaluated.


Knowledge Management


Knowledge:


The collection of information that is useful in achieving
goals.


Knowledge Collection for
Waveriders

can include:

1.
UK Market Research

2.
Sales and Financial History

3.
Competitors

4.
Need for a more flexible discount system (Alan
Stevenson)

5.
Overproduction and Stock Problems (Joe Armstrong)

6.
No Clear Strategy for the future (Dorothy Parker)

7.
Excessive Staff (George Walters)

Knowledge Management


Create the environment for the passage of knowledge


Knowledge Sharing


Knowledge Creation


Knowledge Evaluation


Measuring Performance



Five
-
year financial and production
summaries

The status quo of WaveRider (1)


Inventory turnover (times) = sales/inventory


Inventory turnover is decreasing every year which
means that Waveriders have a low efficiency in
inventory management, therefore money is tied up.


Year

-
5

-
4

-
3

-
2

Last year

Sales

8,490

8,526

8,643

8,415

8,252

Inventory

852

1,063

1,283

1,482

1,764

Inventory
turnover
(times)

10

7.8

6.7

5.7

4.7

The status quo of WaveRider (2)


Production Director


Joe Armstrong:


“…
I think it's more to do with ambitious forecasting
from sales
when they reduced the prices last year. Alan
and I work together but we can only respond to the
figures they agree on….”


The Production Directors points out that they fail to
predict market demands.

How Knowledge Management


affect Resource Utilisation

Use tool:
Materials requirement planning
(MRP)


Utilize the available data, information



Let staff know when need to refill the

stock and decrease the inventories level



More circulating fund




Invest other infer
-
structure and equipment

Before

After


Decreasing inventory turnover


Lower efficiency of inventory
management


(Because of
knowledge base is
fragmented and not formally
managed)





More money stuck on
inventories

Materials requirement planning (MRP)


MRP is a simple set of calculations used to create and
maintain valid schedules that show:



1.

What items are required?

2.

When they are needed?

3.

How much they are needed?



Ref:
Landvater, Darryl V. (1997).
World class production and inventory management
.
2nd
ed.
New York ; Chichester : Wiley.


Materials requirement planning
(MRP)


Including: Master production schedule (MPS)


Bill of material (BOM)


Inventory status record


Material requirements planning
Input

Ref: Paul Roberts (2010), KBAM website


By evolving from MRP to MRP ll, MRPll includes the
effective planning of all the resources of a manufacturing
organisation.


MRP ll
incorporates

information from manufacturing,
marketing, engineering and finance into operational plan
for the
organisation

and ties together strategic,
financial
,
and
capacity

planning areas.




Ref:
Landvater, Darryl V. (1997).
World class production and inventory management
.
2nd ed.
New York ; Chichester : Wiley.



Tersine, Richard J. (1994).
Principles of inventory and materials management.
4th
ed.
Englewood Cliffs, N.J. ; London : Prentice
-
Hall International.


Manufacturing resources planning

(MRP ll)

Ref: Paul Roberts (2010), KBAM website

Manufacturing resources planning

(MRP ll)

Just in time (JIT)


Aiming at eliminating all waste


Just
-
in
-
time goals:


Zero defects


Zero setup time


Zero excesses


Zero handling


Zero queues


Zero breakdowns


Zero lead time



Ref: Tersine, Richard J. (1994).
Principles of inventory and materials
management.
4th ed.
Englewood Cliffs, N.J. ; London : Prentice
-
Hall
International.


Case study
-
resource utilisation


Just
-
in
-
time inventory (JIT) it builds on the approach
created by the founder of Toyota


Use the pull system + Kanban management to avoid
overproduction


Dell case


McDonalds

Life Cycle Management


All the activities that go into making, selling, using,
transporting and disposing of a product or service
-

from initial design, right through the supply chain.


A framework for business planning and management
that helps business to:


Analyse and understand the life cycle stages


Identify the potential economic, social, risk


Establish proactive systems or minimise the risks.


Why we select
Life Cycle
Management?




High waste in production


Reduce, reuse, recycle


Produce new product to expand market in EU


Make the right decision for product life cycle

Life Cycle Management


Terotechnology


Life Cycle Costing


Terotechnology


"The economic management of assets"


A combination of management, financial, engineering,
building and other practices applied to physical assets
in pursuit of economic life
-
cycle costs.


Life Cycle Costing


“It is unwise to pay too much, but it is worse to pay too
little.


When you pay too much, you lose a little money,
and that is all.


But when you pay too little, you
sometimes lose everything, because the thing that you
bought was incapable of doing the things that it
was


bought to do.


“balance prohibits paying a little and getting a lot”








John Ruskin (1819
-
1900)


Life Cycle Costing


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
.


A life
-
cycle cost would be useful to:


Identify the most cost
-
effective system and project options, with
reference to:


total cost, including profit


cost profile, including profits


break
-
even points


return on investment


Assist effective
programme

cost control


Identify major cost drivers


Enable balanced “cost or profit” viewpoint to be considered in
“trade
-
off” decisions (e.g. reliability improvement modification)


Assess cost
-
benefit and pay
-
back sensitivity of new technology


Fairly assess early investments against later benefits

Life Cycle Costing

Life Cycle Costing

Life

Cycle

Costing

Engineering

Design Data

Reliability and
Maintainability
Data

Logistic
Support Data

Production or
Construction
Data

Consumer
Utilisation
Data

Market
Analysis Data

Management
Planning
Data

Accounting
Data

Value
Analysis and
Related Data

Life Cycle Costing

Potential Savings and Cost Relationship (Life Cycle Costing Guideline, 2004)

The Life Cycle Costing process

Potential Savings and Cost Relationship (Life Cycle Costing Guideline, 2004)

The Life Cycle Costing process

-
Define the analysis

-
The plan should be documented at the beginning of the Life Cycle Costing
process to provide a focus for the rest of the work.

-
Intended users should review the plan to ensure their needs correctly.

The Life Cycle Costing process

-
The selection or development of an LCC model.

-
Create or adopt a cost breakdown structure (CBS) that identifies all relevant
cost categories in all appropriate life cycle phases.

The Life Cycle Costing process

-
Identify cost drivers by examining LCC model inputs and outputs.

The Life Cycle Costing process

-
The results of the LCC analysis should be documented to allow users to
clearly understand

-
The report should contain
Executive Summary, Purpose and Scope,

LCC Model Description, LCC Model Application, Discussion,

Conclusions and Recommendations

The Life Cycle Costing process

-
The Life Cost Analysis is essentially a tool, which can be used to control and
manage the ongoing costs of an asset or part thereof.

-
The preparation of the Life Cost Analysis involves review and development of
the LCC Model as a "real
-
time" cost control mechanism.

The Life Cycle Costing process

-
Implementation of the Life Cost Analysis involves the continuous monitoring
of the actual performance of an asset during its operation and maintenance to
identify areas in which cost savings may be made and to provide feedback for
future life cost planning activities.




Other aspects


Outsourcing


Facility Management


Environmental Management

How AM and KM will help
meet the EFQM Criteria


Creativity

must

be

allowed

to

flourish
.


Functioning

in

a

cross
-
disciplinary

fashion

is

imperative
.


Education,

communication,

and

motivation

are

of

vital

importance
.


Asset

Management

is

a

non
-
prescriptive

approach
.


An

Asset

Manager

can

prove

to

be

a

vital

link
.


How AM and KM will help
meet the EFQM Criteria


Knowledge

management

includes

a

people

and

IT

focus
.


Leadership

is

key

to

Knowledge

Management
.


The

Asset

Manager

is

the

link

between

the

Business

Managers

and

the

Engineers

and

Technical

people
.


Information

sharing

and

knowledge
.


Asset Manager

How AM and KM will help
meet the EFQM Criteria


Development

in

excellence

in

part

is

an

outcome

of

a

process

where

knowledge

is

the

main

input

and

intellectual

capital

is

the

main

output
.


The

EFQM

excellence

model

can

be

seen

as

a

framework

within

which

knowledge

management

principles

and

practices

can

be

adopted

as

good

management

practice
.


Conclusion


Knowledge

management

and

Asset

Management

are

a

means

of

achieving

the

requirements

of

the

criteria

of

the

EFQM
.



They

are

non
-
prescriptive

philosophies

which

need

widespread,

wholehearted

adoption

in

order

to

work
.


They

are

complementary

and

require

the

entire

company

to

work

as

one

system,

in

unison,

and

concurrently

at

all

times
.


It

is

imperative

that

you

try

to

grasp

the

larger

picture

as

they

are

not

a

panacea,

but

instead

require

persistence

over

a

period

of

time
;

until

they

become

part

of

Waveriders

culture
.

References


EPA Victoria. (2010). “A Wealth of Business Value Life Cycle Management”.


Life Cycle Costing Guideline
. (2004). “
TOTAL ASSET MANAGEMENT
”, New
South Wales Treasury.


Martin
-
Castilla, J. I., Rodriguez
-
Ruiz, O. (2008) EFQM model: knowledge
governance and competitive advantage
Emerald Group Publishing Limited

Vol.
9, p. 133
-
156.


Woodhouse, J. (2009) What is Asset Management in 2010?
TWL & IAM

p. 1
-
6.


Robert, P. (2010). “Knowledge Based Asset Management Course Note”, Warwick
Manufacturing Group, University of Warwick.