energy efficiency and reliability knowledge management in business course work (952801) by ah bee...

energy efficiency and reliability

Knowledge Management in business

COURSE WORK (952801)

By Ah Bee Goh

19 September, 2010.


Presentation title DD.MM.YYYY 2


MISSION

THAILAND FACTORY MISSION

TO DELIVER PRODUCTS DEFECTS- FREE , ON-TIME AND AT THE MOST COMPETITIVE COSTS.




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%



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



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.




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.



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



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



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



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



Internal measures


Direct wages/ sales < 6%

Indirect wages / sales < 10%

Reduction on RN chokes family products ; 20% to 25%

Monthly review

Monthly review

Monthly review



Learning and Growth


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



Learning and growth


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



Learning and growth


Off- site meeting and coaching

Internal

one off- site every half a year



Knowledge management in business

Single and double loop

Governing variables

consequencesactions mismatch

match

Single loop

Double loop

Fig. 1.0




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.




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.




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.




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.




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



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.



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.



The Power of 5 WHYs.

The root cause after fourth WHY is;

FAMILY EXPENSES AND LIFE STYLE OF LIVING.

Corrective action is to ‘ rebudget family expenses and either let the mother stop working or work part-time’.

energy efficiency and reliability knowledge management in business course work (952801) by ah bee...

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