Consulting Team:Awalpreet Takkar, Marcin Czajkowski, Theofani Dimopoulou,
Yuting Zhao, Cresna Ponthy, Surya Saha
Towards Knowledge and Asset Excellence
The University of Warwick, 15th April 2011
1
2
LeadershipProcesses Products & Services
People
Strategy
Partnerships & Resources
People Results
Customer Results
Society Results
Key Results
Learning, Creativity & Innovation
Enablers Results
Approach to Excellence
Source: EFQM, 2010
3
Approach to Excellence
Developing a strategy for managing buildings, equipment and materials that supports the organizations policy and strategy
Managing the maintenance and utilization of assets to improve total lifecycle performance
Managing the security of assetsMeasuring and managing any adverse effects of the organization’s assets on the community and employees
Utilizing resources in an environmentally sound manner throughout the entire lifecycle of the product
Optimizing material inventoriesOptimizing consumption of utilitiesReducing and recycling wasteMinimizing any adverse global impact of products, production processes and services
Regular reviewing
4c
Knowledge made available timely and effectively for decision makingEnsure regular addition, updation to the pool of organizational knowledgeTransform data into information and where possible, into knowledgeProvide adequate access to relevant people to the organization’s knowledge while ensuring its protection
Secure intellectual propertyProvide for opportunities for innovation through knowledgeInnovate through continuous improvement through gaining knowledge from all possible sources
Use information to identify opportunities for the future
4
Approach to Excellence
4e
55
Assets
Current Assets
Inventory- Cash
- Cash Equivalents-Receivables
Non – Current Assets
Plants & Equipment
Intangible assets
Financial assets &
investments
Life
Cyc
le A
ctiv
ities
Acquire
Utilise
Maintain
Dispose
Portfolio of Assets
Inve
ntor
y
Equ
ipm
ent
Life Cycle Asset Management
Source: based on information by The Institute of Asset Management (http://theiam.org )
Pla
nts
6
Asset Management - Land & Buildings
Proposal:- BSI 8536:2010
Facilities Manegement Briefing – Code of Practice
Alternatives:- Employ experienced
Facility Manager separately to H&S manager
PROPERTY MANAGEMENT
7
PROPERTY MANAGEMENT – EFFECTS: Short-term:- Delivering fit for
purpose building thanks to structured approach and ‘system thinking’
- Timely project management
Long-term:- Improved LCC
performance- Support for CSR
implementation- Reduced waste and
resource consumption
- H&S environment
Asset Management - Land & Buildings
8
DESIGN & BUILD ACTIVITIES
Proposal:- New layout for both
sites
Alternatives- Layout of Lymington
developed by architects and constructor
- No improvements at Dorset
Asset Management - Land & Buildings
9
DESIGN & BUILD ACTIVITIES – EFFECTS: Short-term:
- Elimination or reduction of Dorset’s operational issues
- Improvement of Dorset facility
Long-term:- Increased
performance and smooth flow
- H&S environment- Reduced time
required to plan new facilities
Asset Management - Land & Buildings
10
Asset Management - Land & Buildings
SPACE MANAGEMENT
Proposal:- Introduction of Lean
Manufacturing techniques – in particular 5S, VSM
- New layout in Dorset and Lymington
Alternatives:- No change
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Proposal:- Keeping core and key
services in-house- Outsourcing non-core
services
Alternatives:- Total Facility
Management – outsourcing all services to one provider
- Keeping all services in-house
FACILITY SERVICES
Asset Management - Land & Buildings
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Equipment
WaveRiders is looking for the high performance WaveRiders is implementing the reactive maintenance Assumptions:
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Equipment
Equipment Asset
Management
Health and Safety
Performance Security
Environment
14
Equipment
Acquire
Identify what equipment is really needed.
Equipment reliability Instruction manuals should be
read carefully Equipment is environment
friendly in operation Safety designed equipment
Utilize Cleaning the machines
regularly Scheduling machines
(SAP) Manage the scheduling
with consideration of contingency
Maintain the equipment regular, extend the life of components to ensure the normal operation of equipment
Training the operators Record the characters and
features Security consideration
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Equipment
Benefits
Effective maintenance management will ensure that: life cycle costs are
minimised; there is efficient use of
resources; environmental
compliance is not compromised through asset failure; and
service levels are maintained or improved.
Proposal: For short term, maintenance management process
Source: Maintenance management Implementation Guide
16
Equipment
Proposal: For long term, Total Productive Maintenance.TPM is an equipment management program that emphasises operator involvement and ownership of equipment performance.
Source: Kaizen Continuous Improvement phase.
Available time
Available operating time
Effective operating time
Actual operating time
Equipment Six Big Losses
Breakdowns
Setup/adjustment
Idling/monitor stoppages
Speed
Defects in process
Start up loss
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T.P.M Officers TPM ResponsiblePlant Manager
5’s Autonomous Maintenance
Planned Maintenance
Individual Improvement
Quality Maintenance
Early Equipment
ManagementSafety
Training People
Development
T.P.M Structure
The benefits of implement TPM :
Increased equipment and personnel productivity Increased asset utilization Lower maintenance and system costs Approaching zero equipment-caused defects
or reliability issues Enhanced job satisfaction Increased Return On Investment
RESOURCE UTILIZATION Inventory System
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DATA AVAILABLE
Finished good stock Alternative market (sales team) Distribution
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INVENTORY MANAGEMENT OBJECTIVE
Smooth operatio
n
Ensuringcontinuous operation
Flexibility to stakeholders
Optimizing suppliers
Balance demand/sup
ply
Contingency plan
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MATERIAL REQUIREMENT PLANNING Inventory control Production planning Manufacturing control
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WHEN TO USE? Complex products Assembly-to-order environment Demand variable
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WHY MRP? Reduce Inventory Levels Reduce Component Shortages Reduce purchasing cost Reduce manufacturing Less scrap Reduce overtime Identify material requirement
23
WHAT SHOULD BE DONE?
MRP
Identify the
requirement
Running the
process
Firming
• Organizational strategy
• Location• Date
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BOMPART
CONTROL
INVENTORY
CONTROL
SALES ORDER MPS MRP ACCOUNT
RECIEVABLE
PRODUCTCOSTING
PRODUCTION CONTROL
PURCHASING CONTROL LEDGER
ACCOUNT
PAYABLESHOP
CALENDERROUTING CONTROL
WORK CENTER
CONTROL
CAPACITY REQUIREMENT
PLANNINGPRODUCTION ACTIVITY
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MASTER PRODUCTION SCHEDULING
MPS When & how much to produce
CapacityCompanyPolicies
EconomicConsiderations
ProductCharact.
PlanningHorizon
Time
CapacityPlanning
Placed orders
Forecasted
Planned orders
• Help schedule the finished goods• Combination of customer order and demand
forecast• What needs to be produced
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MRP MATRIX- EXAMPLE
Item:
Lot Size: Lead Time: PD 1 2 3 4 5
gross requirement
scheduled Receipts
projected on hand
net requirements
planned order receipts
planned order releases
HEALTH & SAFETYFacts & Finding 0.8 million workers suffer illness cause from
past work 840 workers injured from 100,000 – ratio
233,000 injured! 0.5 workers killed from 100,000 – ratio
152 killed!
27SOURCE: HEALTH & SAFETY EXECUTIVE STATISTIC REPORT 2009/2010
HEALTH & SAFETY (CONT’D)
Advantages of having proper H&S management: Improve organization reputation Improve production output (reduction in accident) Improve people commitment Improve customers confidence Reduce and avoid public claims against organization Reduce insurance premium (financial impact)
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SOURCE: STRANKS, J. (2005). THE MANAGER'S GUIDE TO HEALTH & SAFETY AT WORK (8TH EDITION ED.). LONDON, UK: KOGAN PAGES.
HEALTH & SAFETY (CONT’D)
Recommendation to improve H&S level: Set up framework
29SOURCE: STRANKS, J. (2005). THE MANAGER'S GUIDE TO HEALTH & SAFETY AT WORK (8TH EDITION ED.). LONDON, UK: KOGAN PAGES.
Improvement
Planning
Implementation
Checking & Corrective
action
Management review
HEALTH & SAFETY (CONT’D)
30CHATURVEDI, P. (2007). OCCUPATIONAL SAFETY, HEALTH & ENVIRONMENT AND SUSTAINABLE ECONOMIC DEVELOPMENT. NEW DELHI, INDIA: CONCEPT PUBLISHING.
Workplace analysis
• Do risk assessment & analyze it• Conduct review mehcanism to evaluate progress• Make certain actions
Commitment
• Make policy regarding H&S• Conduct review mehcanism to evaluate progress
Hazard Prevention &
Control
• Establish SOP of safe works (plan for emergencies)• Provide PPE, first-aid, emergency medical care and equipment in every
workplace• Communicate and ensure all staff fully understand and comply
Training• Provide comprehensive training and review periodically
Implementation Plan
SECURITY MANAGEMENT
Recommendation to improve H&S level: Set up framework
31
SOURCE: SENNEWALD, C. A. (2003). EFFECTIVE SECURITY MANAGEMENT (4TH EDIITON ED.). LONDON, UK: BUTTERWORTH-HEINEMANN.
Planning
Organizing
DirectingCoordinating
Controlling/Review
Acquire• Create or gather information from another source
Distribute
• Only authorized person can access certain information
Use
• Utilize information and monitor the usage in order to minimize misuse
Store
• Create backup or archive data that outdate so it’s accessible when needed
Destroy
• Follow security procedure to ensure data or information not being use by unauthorized person
Acquit
• Make documentation for every data or information destroyed
32SOURCE: TALBOT, J., & JAKEMAN, M. (2009). SECURITY RISK MANAGEMENT BODY OF KNOWLEDGE . NEW YORK, USA: JOHN WILEY AND SONS.
SECURITY MANAGEMENT (CONT’D)
Virtual Concern & Implementation Plans
SECURITY MANAGEMENT (CONT’D)
Physical ConcernAHP approach:
Parameters: Areas for detection Accuracy Emergency Intelligence
33SOURCE: GROUP DISCUSSION & BRAINSTORMING
Security Measures Prioritization CCTV System 1Perimeter System 2Security Personnel 3Access System 4Receptions Tasks 5Lone Workers Policies 6
Recommendation: Install CCTV system in all workplace for cost +/- £ 5,800 per place
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Life Cycle Asset Management Plan 1/2
Life cycle : Time interval that commences with the identification of the need for an asset and terminates with the decommissioning of the asset or any associated liabilities (http://theiam.org)
Life
Cyc
le A
ctiv
ities
Acquire
Utilise
Maintain
Dispose
Portfolio of Assets
Inve
ntor
y
Equ
ipm
ent
Pla
nts
- Existing assets form another company- New assets- Replacement of existing assets
Life
Cyc
le A
ctiv
ities
Health – Safety - Environment Security
Based on PAS 55-1:2008
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Life Cycle Asset Management Plan 2/2
Short term proposal
Specific intervention optimisation(cost/benefit/risk/timing)
Long term proposal Asset life cycle optimisation(cost/performance/risk/sustainability)
Activity programme optimisation(cost/benefit/risk/timing of multiple activities across multiple assets)
Life Cycle Costing
Engineering Design
DataReliability &
Maintainability Data
Production Data
Accounting Data
Environmental Data
Health & Safety Data
Security Data
Management Planning
Data
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Knowledge as an Asset
Knowledge
New Product
Development
Doing Business
Managing systems
Operational mechanism
s
Asset Manageme
nt
Source: Nonaka & Takeuchi, 1995
37
Knowledge as an AssetAcquire• Development through training• IT and Databases (Knowledge storage)• Intellectual Property• Investigating & Recording FailuresUtilize• Communication and sharing• Accessing data (Search Engines)Maintain• Updating knowledge
Dispose• ??
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Knowledge Initiatives
Technology (10%)
People (70%)
Processes (20%)
Source: Bhatt, 2000
39
Knowledge is Free!
Catchball
Exchange within Lymington and Dorset
Deformalize
Learning from failures
40
Excellence Vs Assets
Property
Managemen
t
Design &
Build activities
Facility
Services
Space Manageme
nt
Maintenance H&S
Inventor
ySecurity
6a. Perception Measures 1 3 1 36b. Performance Indicators 1 3 9 37a. Perception Measures 3 3 1 3 3 3 17b. Performance Indicators 3 3 1 3 3 9 38a. Perception Measures 3 1 1 9 18b. Performance Indicators 3 3 3 39a. Key Performance Outcomes 1 3 1 3 9 39b. Key Performance Indicators 3 1 3 3
Approach to Excellence
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“Excellence is not a singular act, but a habit. You are what
you repeatedly do..”Good Luck!
-Anonymous
Thank you
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References
Asset Management. (n.d.). Guidelines for Implementing Total Management Planning. Retrieved April 14, 2011, from Department of Environment and Resource Management website: http://www.derm.qld.gov.au/water/regulation/pdf/guidelines/tmp/2001_guidelines/implementation/asset_07.pdf Bayo-Moriones, A., et al. (2010). 5S use in manufacturing plants: contextual factors and impact on operating performance. Journal of Quality and Reliability Management, 27 (2), p. 217-230. Boussabaine, H. A. & Kirkham, R.J. (2004). Whole life-cycle costing : risk and risk responses. Oxford, UK ; Malden, MA : Blackwell PubBhatt, D. (2000). Excellence Model and Knowledge Management Implications. UK.Brandimarte, P. (2007). Introduction to distribution logistics [electronic version]. USA: John Wiley & Sons.Brooks,R., Wilson, L. (2007). Inventory record accuracy [electronic version]. USA: John Wiley & Sons.Chaturvedi, P. (2007). Occupational Safety, Health & Environment And Sustainable Economic Development. New Delhi, India: Concept Publishing. EFQM excellence model (2010).Belgium : EFQM instituteGapp, et al. (2008). Implementing 5S within a Japanese context: an integrated management system. Management Decision, 46 (4), p. 566-579. Graves, S. (1999). Manufacturing Planning and Control [electronic version]. USA: Massachusetts Institute of Technology.Health and Safety Executive. (2010). Health Safety Executive Website. Retrieved April 10, 2011, from Health Safety Executive Website: www.hse.gov.uk/statistics/overall/ hssh0910.pdf Honan, B. (2010). ISO 27001 in a Windows Environment (2nd Edition ed.). Cambridge, UK: IT Governance. Hughes, P., & Ferrett, E. (2009). Introduction to Health and Safety at Work (4th Edition ed.). Oxford, UK: Butterworth-Heinemann. Kaizen Continuous Improvement phase. (n.d.). Retrieved April 14, 2011, from Beyondlean.com: http://www.beyondlean.com/kaizen.html Longenecker, J. (2006). Small business management [electronic version]. USA: Thomson corporation.Nonaka, I., & Takeuchi, H. (1995). The Knowledge Creating Company. New York: Oxford University press.Olomolaiye, et al. (2004). Knowledge management for improved performance in facilities management (COBRA 2004 The international construction research of the Royal Institution of Chartered Surveyors). Retrieved from the Knowledge-based Asset Management, MBE website: http://www2.warwick.ac.uk/fac/sci/wmg/ftmsc/modules/modulelist/kbam/sessions/asset_management/facilitiesmanagement/knowledgefacilities200409.pdf Reuvid, J., Hinks, J., & Institute of Directors. (2002). Managing business and support services. London: Kogan Page. Sennewald, C. A. (2003). Effective security management (4th Ediiton ed.). London, UK: Butterworth-HeinemannSchonstrom, M. (2005). Creating Knowledge Networks, Lessons from practice. Journal of Knowledge Management, 9(6), 17-29.Smith, et al. (2004). Procurement of construction facilities: a case study of design management within a design and construction organisation. Facilities, 22 (1/2), 26-34. Stranks, J. (2005). The manager's guide to health & safety at work (8th Edition ed.). London, UK: Kogan Pages.Talbot, J., & Jakeman, M. (2009). Security Risk Management Body of Knowledge . New York, USA: John Wiley and Sons..The Institute of Asset Management, http://theiam.org/knowledge/centre/lifecycle-delivery-activities/ [Retrieved at 13/04/2010]Way, M. (2005). Soft landings: A fresh scope of service that ensures users and clients get the best out of a new buildings. Journal of Facilities Management, 4 (1), 23-39.