energy efficiency and reliability knowledge management in business course work (952801) by ah bee...
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energy efficiency and reliability
Knowledge Management in business
COURSE WORK (952801)
By Ah Bee Goh
19 September, 2010.
energy efficiency and reliability
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Knowledge Management in business
MISSION
THAILAND FACTORY MISSION
TO DELIVER PRODUCTS DEFECTS- FREE , ON-TIME AND AT THE MOST COMPETITIVE COSTS.
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Knowledge Management in business
Strategic Themes
Strategic Obectives Strategic measures
Financial 1. Improve profit.
2. Improve cash flows
1. Reduce cost of goods by 3%.
2. Reduce inventory.
3. Improve payables and receivables.
1.Reduce material cost, overheads and wage rates.
2. Inventory turns.
3. DPO & DSO targets
Customer Customers – top priority
1. On- time delivery (OTD)
2. Quality
1. OTD >98%
2. Quality>99%
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Knowledge mangement in business
Strategic Themes
Strategic Objectives
Strategic measures
Internal Managing resources efficiently and effectively
1. Control direct and indirect costs.
2. Cost reduction on highest ROI on family of products.
1. Direct wages/ sales.
2. Indirect wages/ sales.
3. Reduction on a family of products by 20% to 30%.
4. Revenue / headcount
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Knowledge mangement in business
Strategic Themes
Strategic Objectives
Strategic Measures
Internal Managing resources efficiently and effectively.
1.Reduce scrap, obsolescence, non- compliance , slow- moving materials. It means reduce Material Review Board (MRB) value.
1. Set monthly MRB value targets.
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Knowledge Management in business
Strategic Themes
Strategic objectives Strategic measures
Learning and growth
1. Internalise ROFO and continuous learning and improvements.
1. Learning of best practices - ROFO, 5S & Lean manufacturing and 5 WHYs.
2. Team learning.
1. 100% staff trained on , ROFO, 5S and Lean manufacturing within a year.
2. Training of 5 WHYs on key staff.
3. Off- site and in-house coachings.
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Financial Measures
Targets First quarter
Jan. Feb. Mar.
Second quarter
Apr. May. Jun.
Third quarter
July. Aug. Sept.
Fourth quarter
Oct. Nov. Dec
Reduce cost of goods by 3%
Inventory turns
7 turns.
DPO= 65 days
DSO= 55days
Monthly review
Monthly review
Quarterly review
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Customers measures
Targets First quarter
Jan. Feb. Mar.
Second quarter
Apr. May. Jun.
Third quarter
July. Aug. Sept.
Fourth quarter
Oct. Nov. Dec
OTD>98%
QUALITY
> 99%
remark Monthly or Quarterly review with top management
Monthly review
Monthly review
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Customers measures
Targets 1st quarter
Jan. Feb. Mar.
2nd quarter
Apr. May. Jun.
3rd quarter
July. Aug. Sept.
4th quarter
Oct. Nov. Dec.
Complaints/ qtr;
minor<3
Major<2
Critical= 0.
Customer satisfaction survey > 95%
Customer audit > 90% score or A- grade
Half – yearly review
Yearly review
Quarterly review
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Internal measures
Targets 1st quarter 2nd quarter 3rd quarter 4th quarter
Revenue / headcount
Internal scrap < 2000ppm
MRB value <
500k Baht
Monthly review
Monthly review
Monthly review
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Internal measures
Targets 1st quarter 2nd quarter 3rd quarter 4th quarter
Direct wages/ sales < 6%
Indirect wages / sales < 10%
Reduction on RN chokes family products ; 20% to 25%
Monthly review
Monthly review
Monthly review
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Learning and Growth
Targets 1st quarter 2nd quarter 3rd quarter 4th quarter
ROFO training
100% OF staff
25% 50% 75% 100%
5S training 100 % OF staff
25% 50% 75% 100%
Lean cell training 100 % of staff
25% 50% 75% 100%
Quarterly review
Quarterly review
Quarterly review
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Learning and growth
Targets 1st quarter 2nd quarter 3rd quarter 4th quarter
5WHYs and SPC training on key staff
25% 50% 75% 100%
Project management by selected key staff
Team building on lean cells; 2 / quarter
2 lean cells 4 lean cells 6 lean cells 8 lean cells
Quarterly review
Monthly review
Quarterly review
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Learning and growth
Targets 1st quarter 2nd quarter 3rd quarter 4th quarter
Off- site meeting and coaching
Internal
one off- site every half a year
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Knowledge management in business
Single and double loop
Governing variables
consequencesactions mismatch
match
Single loop
Double loop
Fig. 1.0
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Knowledge management in business
Single loop governing variables Fixed on limited machine capacities and the number of
employees. Common approach is to use straight line extrapolation on capacities and manpower incresaes. For example; one production line with 50 operators can deliver 500 units per day. To increase the output using straight line extrapolation would mean two production lines with 100 operators.
Being only responsible on his part and don’t work extra for others. E.g. I am a production manager and if there are no materials , I will not produce and I will wait for the materials to arrive.
Always work only to budget constraints. Dare not question further.
No decision making based on original thoughts but mostly based on the company policy and rules.
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Knowledge management in business
Single loop governing variables Procrastinate in decision making. Not firm in decision making
and prefer to wait . Work under certainty models. Have no total trust of colleagues except himself. Always want to win only and not willing to loose. Unwilling to listen to unfavourable feedback. Treating other peoples’ views with some skepticism.
Consequences On- time delivery to customers is poor. Cost escalating. Quality problems take longer to solve. Unhappy customers. Staff cannot learn and grow. Business sustainability is a question mark. Defensive relationships.
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Knowledge management in business
Double loop governing variables Total ownership of the entire process. Sharing of information and knowledge. Embrace ROFO principles. Team learning. Able to solve the problems on- time . Customers happy. Willing to listen to conflicting views. Co- operative spirit throughout the company. Always seek alternatives and outside views. Freedom of choice. Work completed on-time.
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Knowledge management in business
Double loop learning.
Consequences. Delivery to customers are on- time. Every staff embraces learning from each other. Thinking out of the box is encouraged. Embrace ROFO. No more defensive routines. High motivation throughout the company. Problems are solved promptly. No blaming on others. Total ownership of the process. Team learning. Customers happy.
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Knowledge management in business
Sample KPIs of a real life case which has been implemented in Schaffner. This sample is from Schaffner where a monthly meeting is
being held.First Level KPIs.xls There are monthly targets and any deviations must be
explained using 5 WHY analysis.Thailand_EMC_Eff_Jun_10.pdf
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The power of 5 WHYs
It is based on scientific approach.
It is based on fact and not speculative reasons.
If the 5 ‘ whys’ is correctly applied and result still not solved, it is (usually)poor discipline and inefficient supervision/ management/ leadership.
It stops you from beating round the bush and telling old grandmother stories.
Here is a real life example of a Singaporean couple who had constant heated arguments over the poor exam results of their 10 year old son.
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The power of 5 WHYs
First WHY- Why did their son fail in exams?
Because he did not study and spend too much time playing football.
Second WHY- Why did he spend too much time playing football?
Because nobody supervises him.
Third WHY- Why nobody supervises him.
Because the mother has to work long hours and very little time left
for him. (Normally at this stage , the husband will blame his wife
and the heated argument starts. No end result will happen).
Fourth WHY- Why the mother has to work ?.
Because she has to contribute to family income to maintain the same
life style of living.
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