1. energy efficiency and reliability Knowledge Management in business COURSE WORK (952801) By Ah Bee Goh 19 September, 2010.

2. energy efficiency and reliability Presentation titleDD.MM.YYYY2 Knowledge Management in business MISSION THAILAND FACTORY MISSION TO DELIVER PRODUCTS DEFECTS- FREE, ON-TIME AND AT THE MOST COMPETITIVE COSTS.

3. energy efficiency and reliability Presentation titleDD.MM.YYYY3 Knowledge Management in business Strategic Themes Strategic ObectivesStrategic measures Financial1.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 CustomerCustomers – top priority 1.On- time delivery (OTD) 2.Quality 1.OTD >98% 2.Quality>99%

4. energy efficiency and reliability Presentation titleDD.MM.YYYY4 Knowledge mangement in business Strategic Themes Strategic Objectives Strategic measures InternalManaging 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

5. energy efficiency and reliability Presentation titleDD.MM.YYYY5 Knowledge mangement in business Strategic Themes Strategic Objectives Strategic Measures InternalManaging 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.

6. energy efficiency and reliability Presentation titleDD.MM.YYYY6 Knowledge Management in business Strategic Themes Strategic objectivesStrategic measures Learning and growth 1.Internalise ROFO and continuous learning and improvemen ts. 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.

7. energy efficiency and reliability Presentation titleDD.MM.YYYY7 Financial Measures TargetsFirst 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 Quarterly review

8. energy efficiency and reliability Presentation titleDD.MM.YYYY8 Customers measures TargetsFirst quarter Jan. Feb. Mar. Second quarter Apr. May. Jun. Third quarter July. Aug. Sept. Fourth quarter Oct. Nov. Dec OTD>98% QUALITY > 99% remarkMonthly or Quarterly review with top management Monthly review

9. energy efficiency and reliability Presentation titleDD.MM.YYYY9 Customers measures Targets1 st quarter Jan. Feb. Mar. 2 nd quarter Apr. May. Jun. 3 rd quarter July. Aug. Sept. 4 th 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

10. energy efficiency and reliability Presentation titleDD.MM.YYYY10 Internal measures Targets1 st quarter2 nd quarter3 rd quarter4 th quarter Revenue / headcount Internal scrap < 2000ppm MRB value < 500k Baht Monthly review

11. energy efficiency and reliability Presentation titleDD.MM.YYYY11 Internal measures Targets1 st quarter2 nd quarter3 rd quarter4 th quarter Direct wages/ sales < 6% Indirect wages / sales < 10% Reduction on RN chokes family products ; 20% to 25% Monthly review

12. energy efficiency and reliability Presentation titleDD.MM.YYYY12 Learning and Growth Targets1 st quarter2 nd quarter3 rd quarter4 th 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

13. energy efficiency and reliability Presentation titleDD.MM.YYYY13 Learning and growth Targets1 st quarter2 nd quarter3 rd quarter4 th 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 cells4 lean cells6 lean cells8 lean cells Quarterly review Monthly review Quarterly review

14. energy efficiency and reliability Presentation titleDD.MM.YYYY14 Learning and growth Targets1 st quarter2 nd quarter3 rd quarter4 th quarter Off- site meeting and coaching Internal one off- site every half a year

15. energy efficiency and reliability Presentation titleDD.MM.YYYY15 Knowledge management in business Single and double loop Governing variables consequencesactions mismatch match Single loop Double loop Fig. 1.0

16. energy efficiency and reliability Presentation titleDD.MM.YYYY16 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.

17. energy efficiency and reliability Presentation titleDD.MM.YYYY17 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.

18. energy efficiency and reliability Presentation titleDD.MM.YYYY18 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.

19. energy efficiency and reliability Presentation titleDD.MM.YYYY19 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.

20. energy efficiency and reliability Presentation titleDD.MM.YYYY20 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.xlsFirst Level KPIs.xls  There are monthly targets and any deviations must be explained using 5 WHY analysis.Thailand_EMC_Eff_Jun_10.pdfThailand_EMC_Eff_Jun_10.pdf

21. energy efficiency and reliability Presentation titleDD.MM.YYYY21 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.

22. energy efficiency and reliability Presentation titleDD.MM.YYYY22 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.

23. energy efficiency and reliability Presentation titleDD.MM.YYYY23 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’.