Tacit knowledge as a promoter of project success
Presented by
Poj Paniangvait
Yingrudi Khankaew
Agenda
ContextObjective Technical ideaPerspectiveConclusionsPoint of view: enhancement perspectivesFuture Recommendation
Context
Author: Kaj U. KoskinenKey Problem: Tacit knowledge can be
key success factor in the delivery of automation systems by using 2 cases study in the metallurgical industry
Case Studies
Case1: Automation project for a steel plant
Case 2: Automation project on a concentrator plant
Objectives
To describe the presence and effects of tacit knowledge in the delivery of automation systems
To show how the tacit knowledge of the project personnel can have a noticeable effect on the success of the project
Technical Ideas
Theoretical FrameworkResearch context Research methodology
Theoretical Framework
Explicit VS Tacit knowledge Importance of experience Mental models Intuition Commitment Interaction as a reinforcing factors Metaphor Summary: tacit knowledge is practical know-how
Theoretical Framework Type of Knowledge
Explicit knowledge (Nonaka and Takeuchi,1995)
type of knowledge which can be articulated in formal language
Tacit knowledge (Polanyi,1996; Johnson-Laird,1987; Nonaka and Takeuchi,1995)
Beliefs, value, viewpoints, uncodified routines, etc.
intuition and commitment
Theoretical Framework Importance of experience
Bardaracco (1991) human being can take advantage of information
if earlier social software connected to information Cohen and Levinthal
absorptive capacity man's capability of utilizing new information
in the solution relies on his earlier knowledge Ross, 1989
Knowledge and know-how based on experience can be utilized in engineering
supported by cognitive psychological research Lyles and Schwenk,1992
The capability to solve a problem is dependent on the richness of the existing knowledge structure
Multi-faceted experience
Theoretical Framework Mental Model
Kim, 1994mental models represent a person's view of the
world, including both explicit and implicit knowledge
Argyris, 1989Although people do not always behave congrue
ntly with what they say
Mental model provides a context in which to view and interpret the new experience.
Intuition
Just do it this way. It will work.Senge,1990;Nystorm,1993
they are not figure out complex problems entirely rationally, relying instead on hunches, recognising patterns, and drawing intuitive analogies and parallels to other seemingly disparate situations
Theoretical Framework Interaction as a reinforcing factor
Daft and Huber, 1987 The richness of a medium can be analyzed in terms of two
underlying dimensions: the variety of cues to the medium convey and the rapid of the feedback the medium can provide.
Berger and Luckman, 1966 Face-to-face social relations Here-and-now interactions
Meaning are created and negotiated through communication and interaction between people.
Theoretical Framework Metaphors
Nonaka and Takeuchi, 1995Metaphor is highly effective in fostering direct
connection with the creative process in the early stages of knowledge.
Metaphor merges two different distant ideas into single.
Research context
2 Main context approaches: A sale project(explicit) document
an offer an order
A delivery project(required tacit) engineering installation commissioning
Sales Project- Offer- Order
Delivery Project- Engineering- Installation- Commissioning
Knowledge CreationProcess
DeliveryProjectSame Task
Same PartnerOther Partner
IntuitionCommitment
Text BooksContacts
Plansetc.
Knowledge
Conversion
ExplicitKnowledge
Know-Why
Richness of Interactionas a Reinforcing Factor
ExperienceTacit
Knowledge
Know-Why
Knowledge creation process in delivery project. (The “fi gure is based on the principle of the ‘ Knowledge Conversion' model by
Nonaka and Takeuchi, 1 9 9 5 ).
Research Methodology
Using a “knowledge intensive quantity” empirical part using “action research m
ethod” to gather information
Case study and perspective
Case 1: Automation project for a steel plant
Supplier is Finnish enterprise manufacturing automation systems
Customer is A Finnish steel mill
Case 1: Working stages:
Initial stage the suppliers had no tacit knowledge on rolling mill experience. (Table
1) Planning stage
Several meetings and trainings between customer and supplier mostly explcit knowledge exchange involve telephone and telefax communication no common language and different mental models increase bad feeling within the project decrease commitment
During the project no common social events between supplier's and customer's project g
roup no activities increased openess and mutual confidence(tacit knowledg
e During installation and commissioning
Character of a rolling mill process(tacit knowledge) begin to be clear to supplier's project group
unprofitable for the supplier because of the delayed project
1TableEEEEEEEEEE-EEEEE EEEEE EEEEEEEEE EE EEE EEEEEEEEE EE EEE EEEEEEEEE EE EEE EEEEEE EEEEEEE E EEE EEEEEEE
Supplier's experience: No rolling mill
experience No problem solving
skills based on intuition
Diffi cult to understa nd customer views
Expert on automation
EEEEEEEEEEE: Expert on rolling mill
EEE E EEEEE EEEEE EEEEEEEEEE
Coarse rolling mill in Finland
-The supplier and customer had some earlier co operation- Little understanding of the other party's uncodifi ed routines
Perspective and conclusionscase1
The lack of tacit knowledge was an obvious reason for the poor economic performance of the projectUnprofitable to supplier due to the
significant delay of the project
Enhancement perspective and learning
At the end of the project the tacit knowledge of both the supplier and of the consumer relating to rolling mill automation has increased significantly.
(table 2)Tacit learned enhance: common
language, communication way-metaphor, better co-operation and mutual understanding
EEEEE 2- Experience based tacit knowledge of the personnel at th
e end of the coarse rolling mill project
Supplier's experience:Much rolling mill
experience Intuition Based problem
EEEEEEE EEEEEE improved Better able EE see the E
ustomer’s views and understanding their ‘language’
Expert on automation
Customer's experience: Expert on rolling mill
More automation experienc e :
More understanding about automation viewpoints and attitudes (for example work discipline)
Coarse rolling mill in Finland
-The supplier and customer now had much experience of co operation- Better understanding of the other party's uncodifi ed routines
Case 2: Automation project for a concentrator plant
Supplier is the engineering department of Finnish multi-metal enterprise
Customer is a large South African Mining company
Working case of Delivery process
The delivery consisted of an automation system, which was designed at the supplier’s plant
and installed and commissioned
at the steel factory’s rolling mill.
Case 2 Working stages
Initial stage planning meeting held at the customer's premises
initial data of customer as explicit knowledge planning stage
Two customer tailored coursed in Finland. tacit knowledge are speciied in some degree
installation and commissioning stage common language similar mental models no delay more commitment experience and mutual trust common spirit feeling of security between groups
3Table- Experience based tacit knowledge of personnel in the be
ginning of the concentrator project
Supplier's experience:Much experience in
concentration Plant
Intuition Based problem solvin g skills
Easy to understand the customer’s views and problems
High task commitmentExpert on automation
Customer's experience: Expert on concentrator Plant
Quite a lot of experience with automation
Easy to supply initial data to the supplier
A concentrator plant in the Republic of South Africa
-The supplier and customer had no previous co operation- However, quite a good understanding of the other party's uncodifiedroutines
Perspective and conclusionscase 2
Tacit knowledge gained from experience may be expected to help significantly in the success of delivery projects.
The level of communication, not only explicit but tacit, within a project is significant key to its success.
4Table- Experience based tacit knowledge of personnel at the en
E EE EEE EEEEEEEEEEEE pEEEEct
Supplier's experience:Much experience in concentrator
Plant
Intuition Based problem solvin g skills
Easy to understand the customer’s views and problems
High share task commitmentExpert on automation
Customer's experience: Expert on concentrator Plant
Much experience on automation
E EEEEEEEEEEEE EEEEE EE EEE EEEEEEEE EE EEEEE EEEEEE
-The supplier and customer had now much experience of co operation- Good understanding of the other party's uncodifi ed routines- Supplier's comfort at working in strange environments increased
Point of View
Tacit knowledge has not received much attention. A great deal of know-how required in the delivery is tied t
o knowledge that is not written. Tacit knowledge is difficult to express and define
The research problem in the action research method is holistic and diffiicult to separate into parts using analysis.
The author of this paper participated as a designer and project manager in both of the projects, which are the basis of the empirical part of the study
Optimization:Enhancement and extensible application for development stages is important
To Increase efficiency, effectiveness and innovativeness
Point of view
At extensible and enhancing level in the future, the company can be knowledge creating company by the followings:
1. Socialization: collective data by dialogue and interview from knowledge worker
2. Externalization: analysis of tacit knowledge and link to explicit knowledge by using knowledge mapping model or common KADs
3. Combination: create best practice, learning by doing and combining previous knowledge and new knowledge
4. Internalization: distribute best practice model and make it more applicable and effective in different scenario in field building
Four modes of knowledge conversion and spiral model
To
From
Nonaka´s theory of knowledge creation
Knowledge Creation Processesat 5 phases
1.Discovery phase: Share Tacit knowledge Knowledge capture meeting: knowledge mapping and
commonKADs Template
2.Capture phase: Create concept and common language CommonKADs knowledge model/map
3.Sharing phase: Justify concept Share Best Practice scenarios
4. Build Archetype phase: Directions and routines Application Facilitating and mentoring
5. Development phase: Cross leveling knowledge Sharing/Networking and Continuing development
KM Practices Middle-up-down management
CKO
COPsKnowledge
Engineering Team
KMS support
CKO=Chief knowledge Officer
COPs=Community of Practice: Knowledge Engineering Team (Middle Management) as facilitator and mentor
KMS support team
Balance Scorecard as KPI
Key Drivers
Financial perspective
Customer perspective
Internal business process
Learning and Growth
Total Quality Management
CRM program
Activity Based Costing
Knowledge Management
Future Recommendation….
Establishing an enterprise knowledge culture Developing and deliver knowledge-based
product and services Maximizing the value of enterprise’s
intellectual capital Creating an environment of knowledge sharing Establishing a culture of continuous learning Managing customer’s knowledge to increase
their loyalty and the value added
Thank you