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C O N S U LTA N C Y P R O P O S A L
TEAM A1
1
Brief of Consultants
1. Faizan Qadri: Knowledge Management & Streamlining
Business Processes Expert.
2. Richard Sharman: Supply Chain & Logistics Expert
3. Pauline Mmbaga: Facility Management Expert
4. Henry Ortiz Toloza: Facility & Space Management Expert
5. Parminder Singh: Health & Safety Expert
6. Modar Bakir: Human Resources Expert
2
Peter Drucker & British Government
on Knowledge Management
• In 1988 Peter Drucker wrote: “The typical business [of the future] will be
knowledge-based, an organisation composed largely of specialists who
direct and discipline their own performance through feedback from
colleagues, customers and headquarters. For this reason it will be what I
call an information-based organisation” (Economist 2009).
• In the British government’s 1998 White Paper on the competitiveness of
the nation, it said: “Our success depends on how well we exploit our most
valuable assets: our knowledge, skills and creativity … they are at the heart
of a modern knowledge-driven economy” (Economist 2009).
3
Our Understanding of the Brief
Vision (Q3/2017)
Five Years’ Plan
The Current Status of
the company
(Q3/2012)
Strategy No. 3
To be the first choice for
clients where high quality
meets affordability and set
high standards in the UK
and European Market
Apply KM
& AM
Tangible Assets
Intangible Assets
Processes
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Meet the criteria of
the European
Excellence Model
WaveRiders GAP Analysis
GAP
Target
Current Status
Timeline
Actions
Responsibility
1
Expand distribution and logistics
to Europe
Supply chain in the UK
Q4/2012
Outsourcing the distribution function
in Europe and hiring a Logistic
Manager (reporting directly to CEO)
CEO, Production
Director, Finance
Director and
Richard
2
Improve supplier base
Multiple suppliers (10+)
Q4/2012
Assess and review current supplier
base and streamline
CEO, Production
Director and
Richard
3
Allow a suitable environment
for employees to perform core
functions
No facility director no
awareness and concern on
improving the value of the
properties and No concern
of the safety of the
buildings
Q4/2012
Hire Facility Director (reporting directly
to CEO)
4
Increase inventory turnover
Poor management of
inventory
Q4/2012
Implement Just In Time Production
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Improve Safety Standards in
plant and products
No records
Q4/2012
Hire Health & Safety Manager
(Reporting directly to Facility Director
for plant daily operation issues/
reporting directly to the CEO for
company policy & road safety)
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Vision/Mission and competency
framework for the whole
company
No core
values/competencies and
shared vision
Q1/2013
Setting up a Steering Committee
chaired by the HR Director, the
committee will be consisting of
members from different levels and
departments of the organisation
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Setting up a new organizational
structure/ job descriptions/HR
Policies & Procedures/Employee
Handbook /Orientation
Program/ER/Recruitment &
Retention Strategies
The current organizational
structure/ job descriptions
while the rest are not
available
Q2/2013
HR Director,
Henry and Pauline
Production
Director and
Pauline
HR Director and
Parminder
Board of Directors
and Modar
HR Director and
Modar
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Current Supply Chain of WaveRiders
Material
Suppliers
UK Factory
UK
Warehouse
Sales to
Retailers
Sales to End
Users
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Future Supply Chain Strategy
Sales/Marketing
UK After
Sales
UK Market
Suppliers
UK Factory
UK
Warehouse
EU Market
EU After
Sales
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Sales/Marketing
Supplier Management
Materials R&D
Market Information
Supplier
Manufacturing
Processes R&D
Customer Feedback
WaveRiders
Materials Knowledge
Marketing/Sales Forecast
Competitive Advantage
Supplier / Manufacturer Information Model
Strategies: Improve Supplier Base through assessing and reviewing current
supplier base and streamline in order to Improve Working Relationship and
therefore bring new benefits.
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Distribution in the EU Market
• Outsourcing the distribution function in the EU Market.
• Increase the Distribution Manager scope of work where he will be
responsible of the distribution operation in the UK and supervising
the outsourcing contract of distribution in the EU market.
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Asset Life Cycle management
•
•
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Measuring assets on a COST Vs. PROFIT basis
Group assets into processes
Consistently gather and log information and knowledge of the assets
outputs and inputs on an accessible database.
Output (profit)
Raw
Materials
Useful Life
Finished
Goods
Machines
Initial Cost
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Resale Value
Running Costs/Maintenance
Man hours required to
operate
Recommendations
• New Asset Strategy – Use information from sources such as
manufacturers/past experiences/forecasts/departmental requirements to
assess and compare potential new assets to gain best balance of
cost/capability and quality. (the head of the department that will use the
asset should carry out these procedures)
• Use financial measures such as Payback period and NPV to give financial
insight. (finance department)
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Recommendations
• Current Asset Strategy – the manufacturing process and the storage
process.
• Log data, and keep records of performance and any costs incurred in the
past.
• Make operatives responsible for logging data and regular inspection to
prevent problems escalating.
• Have procedures in place to deal with the maintenance of assets so down
time is reduced.
• Constantly reassess the costs vs profit performance to map when parts of
the processes need updating or replacing.
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Facility & Property Management
• Facility management is ‘an integrated approach to maintaining, improving
and adapting the building of an organization in order to create an
environment that strongly supports the primary objectives of that
organization’ (Barrett and Baldry,2003).
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Recommended Strategies
• Hiring a Facility Director: the main objective of this role is to ensure that
an organisation has the most suitable working environment for its
employees and their activities. Also, implementing cost cutting initiatives
and Initiating projects which will enhance the image of the company.
• Estimated Annual Salary: £60,000
CEO
John Excellence
Facility Director
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Assets requiring management
• Property Management: Design and Build Activities, Facility
Services(Safety, Health and Environment), Space Management and
Maintenance of Equipment
• Inventory Management: Just-In-Time Production
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Property Management
Design and Build Facilities
Current Situation
• There is very little awareness and concern on improving the value of the
properties and inaccessible property inventory
Action Plan
• Facility Director should outsource an external surveyor to conduct
valuation on the plant at least every 3 years
Anticipated Outcome
• Reduced cost of wear and tear and reduced time wastage
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Inventory Management
Production Scheduling and Inventory
Current Situation
• Tied-up capital, inaccessible inventory audit
Action Plan
• Implement Just-In-Time production
Anticipated Outcome
• OTIF (On time in-full production, on time delivery and customer
satisfaction ration to increase by 99%)
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Current Situation to JIT
S
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RM
WIP
FG
Space management
Current situation:
• There is not a fixed travel route for material and products transport from
stock area to the dispatch area
• There are not clear routes for loading vehicles, (forklifts)
• The employees do not enough space to work comfortably
Action plan
• Optimize the space in the production area, creating fixed routes for the
vehicles and create open plan offices.
Anticipated outcome
• Reducing the lead time
• Improve communication between departments.
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Maintenance
Reactive
policy
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Proactive
policy
Health & Safety
• What Environment?
the surroundings in which an organization operates, including air,
water, land, natural resources, flora, fauna, humans, and their
interrelation.
Clause 3.5 ISO 14001:2004(E)
• Who’s Safety & Health?
OH & S relates to the Conditions and factors that affect, or could
affect, the health and safety of employees, or other workers
(including temporary workers and contractor personnel), visitors,
or any other person in the workplace.
Clause 3.12 OHSAS 18001:2007
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The Present at WaveRiders :
• No Procedures for the safety and health of the employees
• Fire fighting and no proper elimination of Safety concerned
issues
• No focused effort to prevent damage to the environment.
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What needs to be done
• Consider SHE as a strategic part of the overall business
strategy.
• Develop a system for SHE management.
• Create a culture of health , safety and environmental
awareness.
• Create awareness regarding conservation of resources.
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SHE Management - The way
ahead (strategy)
•
Hire a SHE manger (reporting directly to Facility Director for plant daily operation
issues/ dotted reported to the CEO for company policy & road safety).
CEO
John Excellence
Facility Director
SHE Manager
•
•
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Incorporate a SHE Policy
Train employees – create awareness
SHE Management - The way
ahead (strategy)
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•
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Conduct
– An Environmental aspect evaluation
– A Hazard risk analysis
Identify the most significant aspects.
Make Safety management procedures (SMP) and environmental management
procedures(EMP).
Eliminate the aspects (Follow the PDCA methodology).
Make Operational control Procedures (OCP).
Have an emergency preparedness plan in place
Maintain a legal register.
Management Review
Apply for ISO 14001 and IS 18001 certification.
Start a near miss reporting and recording system.
Start energy conservation and safety committees
Knowledge management
• Procedure manual (Environmental and Safety:
• OCP
• EMP & SMP
• List of most significant aspects
• Emergency preparedness plan
• Legal register
• Near miss reporting and analysis.
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Timeframe for Implementation
Timeframe for SHE implementation.xlsx
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Estimated Budget for SHE
• SHE manager
• Training
• Certification:
£40,000 per annum
£ 10,000 - £ 15,000
£ 3,000 – £3,500 per certification
• Other costs depending upon the work to be carried out to make
the work place more safe and environmental friendly.
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Effective Asset Management
through People Effectiveness
In order to have an Effective Asset Management system within
WaveRiders, we recommend you to apply the following three
strategies (Lutchman 2006):
• Organizational and People Effectiveness
• Corporate Knowledge Retention
• Performance Management (Balanced Scorecard)
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Organizational Effectiveness
Vision & Mission
Tangible Assets
Intangible Assets
Processes
Develop
Organisational
Structure
Define Roles
Responsibilities
Competencies Framework
Job Descriptions
Staffing Numbers
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Knowledge
Management
HR Policies & Procedures
C&B Plans
Recruitment Strategy
Retention Strategy
Succession Planning Strategy
L&D Program
Employee Assistance Program
Employee Handbook
Orientation Program
SOPs
Developing a High – performance Organization (Lutchman 2006)
Performance Management
Empowered Teams
Continuous Improvement
Organizational Development &
Learning
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Develop the core values/competencies framework for the company.
job evaluation based on a Knowledge and Skills Framework. Validate Job Descriptions,
Roles, technical and general skills. Introduce the competency skills framework to all
posts.
Identify individual learning and development needs against the approved competency
framework through carrying out TNA of current skills, knowledge and competencies
(skills gap analysis).
Develop a training program for all employees based on the TNA results.
Assigning a training budget for the Sales team who are going to be involved in the EU
market and for the SHE Manager.
HR Team to achieve CIPD certification.
Orientation program (Corporate and Departmental Induction).
SOPs / best practices in coordination with the rest of the departments
HR Policies & Procedures / Employee Handbook
Employee Assistance Program / Redundancy Plans & Payments
Job Rotation
Establishing an E-learning portal for the company might not be suitable at the time
being (EFQM 4e. Using information technology to support knowledge management).
Recruitment & Retention
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•
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To ensure that the attrition rate is at the minimum for the next five years (voluntary and
involuntary resignations).
Offer a variety of career packages and employment contracts (permanent, temporary,
flexible ... Etc.)
Building a professional reputation for the company (employer of choice).
Recruitment processes must fulfill all legislative requirements and demonstrate fair and
equitable treatment of all applicants. The HR department is committed to providing an
efficient service to managers and applicants, and to ensuring that recruitment systems
are reviewed as required to maintain a smooth process.
Reward & Recognition policy.
It is important to determine what causes staff to leave. To this end an exit procedure
and guidelines is being developed and will be implemented in Q4 2012. The results will
be analyzed to identify trends so that counter measures may be introduced where
appropriate (employee branding).
Staff Monthly meeting with BoD (staff involvement, enhancing two way
communication).
Performance Management
- Balanced Scorecard Balanced Scorecard
Objectives
Increase Profitability
Increase the efficiency of using the assets
Increase the space use within the premises of
the company
Action Plan
Measurement
Target
Initiative
Budget
ROCE
13%
-
-
ROA
11.93%
-
-
Hiring Facility Director
£300k
Lower the cost of maintenance and cleaning on a monthly basis
Decrease the Dispatch time
No of frequency and complaints from customers
2
Create fixed routes for
materials and
products, create clear
routes for loading
vehicles
£30k
Increase inventory turnover
Percentage of stock outs
0
Implement Just In
Time production
-
On-time in full production ration
99%
Implement Just In
Time production
Percentage of perfect orders received
95%
Assess and reduce
suppliers
-
Number of staff reduced annually
1
Applying Redundancy
£77k
Percentage of on-time delivery to customers in Europe
98%
Expand the distribution
and logistic in EU
£2k
No. of accidents and near misses due to design and procedures
0
Hiring Health & Safety
Manager, obtaining
certifications and
Training
£217k
Turnover of Sales Personnel
2%
Take on new 3 Sales
Rep
£96k
Percentage of employees active in improvement teams and team
learning
90%
Measurement of
effectiveness and TNA
-
Number of job rotations each year per employee
2
Job rotations between
and within
departments,
orientation programs
and graduate schemes
£90k
TOTAL BUDGET
£812k
Increasing on time production
Improve supplier base
Reduce HR Team
Identify New Distributor (s) in the EU market
Improve Safety Standards in plant and products
Recruit and Retain Qualified Sales Rep
Increase value of learning (ROI)
Increase knowledge sharing between employees
and within departments
37
Summary
Optimize the usage of the
space of the premises
Implement Just In Time
Production
Facility
Management
Supply Chain
Review, Assess and
Optimize Supplier
Base
Outsourcing
Distribution function
in EU market
Hiring Facility Director
Reduce Lead Time
Increase and maintain the
life of the physical assets
of the company
Effective Knowledge
& Asset Management
System
Set up procedure
manuals for safety and
environmental
management
Obtain ISO 14001 and
IS 18001 certification
Organizational &
People Effectiveness
Health &
Safety
Human
Resources
Hiring Health & Safety
Manager
Performance
Management
WaveRiders’ Vision
38
Corporate Knowledge
Retention
To w a r d s E F Q M
4c: developing and implementing strategies for
managing buildings, equipment and materials
4c: improve total life cycle performance
4c: optimising transportation usage
4c: Optimising material inventories
4c: minimizing impact on environment
EFQM Model
Partnership
&
Resources
4c: affect of organisation asset on health and safety
4e: identify information and knowledge req.
4e: providing appropriate access
4e: cultivating and protecting intellectual property
4e: generating innovative and creative thinking
4e: collecting and structuring information and
knowledge
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References
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Economist (2009) knowledge management [online] available from
http://www.economist.com/node/12960225 [24th April 2012]
European Foundation for Quality Management (2009) EFQM Excellence
Model, EFQM Publications.
Lutchman, R. (2006) Sustainable Asset Management: Linking Assets, People,
and Processes for Results. Pennsylvania: DEStech Publications, Inc.
Shanthi, N. (2006) Knowledge Management for Business Strategy. Hyderabad:
The ICFAI University Press.
Fileding, K and Whicker, L (2012), ‘Planning and Control Systems: JIT, Logistics
and Operations Management’, Supply Chain Lecture at the University of
Warwick.
Pain, S. W. (2010). Safety, Health, and Environmental Auditing. New York: CRC
PRess.
OHSAS 18001:2007. OHSAS project group
ISO 14001:2004(E) Environmental management systems – General guidelines
on principles, systems and Support techniques.
T H A N K YO U
Q&A
41