Knowledge mgmt


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Knowledge mgmt

  2. 2. CONTENTS  History  Knowledge management methodology  TACIT KNOWLEDGE APPROACH  EXPLICIT KNOWLEDGE APPROACH  TOYOTA PRODUCTION SYSTEM-TPS  The Toyata supplier network  Social identity theory   "Ideas for Good" 
  4. 4. ABSTRACT  Toyota's management philosophy has evolved from the company's origins and has been reflected in the terms "Lean Manufacturing" and Just In Time Production, which it was instrumental in developing.   Toyota's managerial values and business methods are known collectively as the Toyota Way.  Toyota has long been recognized as an industry leader in manufacturing and production.
  5. 5.  TMC, is a Japanesemultinational automaker headquartered in Toyota, Aichi, Japan.  In 2010, Toyota employed 300,734 people worldwide, [2]  and was the third largest automobile manufacturer in 2011 by production behind General Motors and Volkswagen AG.  Toyota sold 4.97 million cars in the first half-year 2012, more than GM or Volkswagen.[3]  Toyota is the eleventh largest company in the world by revenue.  In July 2012 the company reported that it had manufactured its 200 millionth vehicle.
  6. 6. Knowledge Management at Toyota  According to analysts, Toyota's success in both the local and global markets was based on its gaining a competitive advantage through implementation of innovative and path-breaking ideas on its production floors.  TPS worked on the basic idea of maintaining a continuous flow of products in factories in order to adapt flexibly to changes in demand.  TPS linked all production activities to real dealer demand through implementation of Kanban, JIT and other quality measures...
  7. 7. TOYOTA WANTS TO TRANSFER KNOWLEDGE OF ITS PRODUCTION SYSTEM TO NEW EMPLOYEES  Such as the factory recently opened in Valenciennes, France, Toyota typically selects a core group of two to three hundred new employees and sends them for several months training and work on the assembly line in one of Toyota’s existing factories.  After several months of studying the production system and working alongside experienced Toyota assembly line workers, the new workers are sent back to the new factory site.
  8. 8. TOYOTA WANTS TO TRANSFER KNOWLEDGE OF ITS PRODUCTION SYSTEM TO NEW EMPLOYEES  These repatriated workers are accompanied by one or two hundred long-term, highly experienced Toyota workers, who will then work alongside all the new employees in the new factory to assure that knowledge of Toyota’s finely tuned production process is fully implanted in the new factory.
  9. 9. TACIT KNOWLEDGE APPROACH- QUALITY CIRCLES  At the end of each work week, groups of Toyota production workers spend one to two hours analyzing the performance and problems in quality or productivity.  Each group proposes “countermeasures” to correct identified problems, and discusses the results  Through personal interactions in such Quality Circle group settings, Toyota employees share their ideas for improvement, devise steps to test new ideas for improvement, and assess the results of their tests.
  10. 10. EXPLICIT KNOWLEDGE APPROACH  Documenting the tasks that each team of workers and each individual worker is asked to perform on its assembly lines.  These documents provide a detailed description of how each task is to be performed, how long each task should take, the sequence of steps to be followed in performing each task, and the steps to be taken by each worker in checking his or her own work
  11. 11. TOYOTA PRODUCTION SYSTEM-TPS  A production system which is steeped in the philosophy of "the complete elimination of all waste" imbuing all aspects of production in pursuit of the most efficient methods.  The Toyota Production System (TPS) was established based on two concepts: 1. The first is called "jidoka" (which can be loosely translated as "automation with a human touch") which means that when a problem occurs, the equipment stops immediately, preventing defective products from being produced; 2. The second is the concept of "Just-in-Time," in which each process produces only what is needed by the next process in a continuous flow.
  13. 13. The Toyata supplier network  Japanese automobile makers are more and more productive, US is lagging  WHY?  Dyer and Nobeoka: "Creating and managing a hihg performance knowledge- sharing network: the Toyota case"
  14. 14. Knowledge sharing routines  What is knowledge?  Explicit knowledge or information  Tacit knowledge or know-how  Dilemmas associated with knowledge sharing  how can self-interested network members openly share valuable knowledge?  how to prevent free-rider problems?  how to maximize the efficiency of knowledge transfers?
  15. 15. Overcoming knowledge sharing dilemmas  Creating a network 'identity' through network-level knowledge-sharing routines  Network `rules' for knowledge protection and value appopriation  Creating multiple knowledge-sharing processes and sub-networks in the larger network
  16. 16. Why create an 'identity'?  Social identity theory (Tajfel and Turner, 1986)  Categorization: We put others (and ourselves) into categories.  Identification: We associate with certain group (our ingroups), which serves to bolster our self-esteem.  Comparison: We compare our groups with other groups, seeing a favorable bias toward the group to which we belong.
  17. 17. Social identity theory  Experiment:  Rabbie and Horwitz (1969) “The arousal of ingroup- outgroup bias by a chance win or loss.” Journal of Personality and Social Psychology, 13: 269-277.  Randomly assign individuals to a blue and a green group  Individuals were unknown to each other and were told that they would not meet again  Based on the toss of a coin a price was given to one group  Group members evaluated each other more positively and were more willing to cooperate with each other than non group members
  18. 18. How did Toyata create a network 'identity'?  Toyota's network is known (labeled) as the `Toyota group'.  Toyota creates a shared network identity by developing multiple groups  The supplier association  Toyota's operations management consulting division  Voluntary small group learning teams (jishuken)  (Interfirm employee transfers)
  19. 19. Supplier association  Kyohokai: Toyota's supplier association was established in 1943  Suppliers must be close to each other  Tokai (150 members)  Kanto (65 members)  Kansai (29 members)
  20. 20. Supplier association  Suppliers association has general (high level) meetings every other month  Quality committees.  Excellent plant tours allow network members to visit `best practice' plants  Quality management conference held once a year  lectures from directors, senior managers + six success ful supplier cases of quality improvement
  21. 21. Consulting teams  Toyota's Operations Management Consulting Division (OMCD)  6 senior executives, 50 consultants  Direct free `on-site' assistance for suppliers  periods ranging from one day to many months  on average suppliers are visited about 4 times a year with an average visit lasting 3 days  emergent problem solving: cross divisional problems solving teams helping a supplier  What kind of social capital is this according to Coleman?
  22. 22. Voluntary learning teams  Jishuken: 60 of the key suppliers `voluntary study groups'  Each group consists of roughly 5-8 suppliers  geographic proximity  no direct competitors in the same group  level of experience with Toyota  Groups are reorganized every 3 years (Why?)  After determining theme, the group visits each member to develop suggestions  Member of OMCD monitors (to assist and to learn)
  23. 23. Voluntary learning teams (II)  Jishuken are reported to be very valuable (especially in transmitting tacit knowledge)
  24. 24. Network rules for knowledge protection  Creating an identity isn't enough to solve sharing and free riding problems  Toyota sets a norm/rule by sharing its own knowledge  eliminating the notion that there is `propriety knowledge'  Suppliers must be willing to open their plants to other network members to other network members  reciprocal obligations: We will help you, but in return, you must agree to help the network.  reciprocity norm is enforced by implicit threat of withdrawal of business
  25. 25. Network rules for knowledge protection  Tacit rule about value appropriation  The recipient of knowledge may appropriate 100 percent of the savings in the short run, but over time will be expected to share a proportion of those savings with the network  Compare Toyota practice with the GM consultancy teams (PICOS)
  26. 26. Creating multiple knowledge sharing processes How to maximize efficiency? Toyota established variety of bilateral and multilateral processes, each designed to facilitate different types of knowledge
  27. 27. The creation and evolution of Toyota's US knowledge sharing network  1988: Toyota begins producing cars in Georgetown, Kentucky  Suppliers had virtually now contact with each other, how did Toyota implement its knowledge management ?  Phase 1: Developing weak ties among suppliers  Phase 2: Developing strong ties with Toyota  Phase 3: Developing strong ties among suppliers
  28. 28. 1. Developing weak ties 1989 Toyota initiates supplier association (BAMA)
  29. 29. 2: strong ties with Toyota Free of charge well trained consultants made available to BAMA members
  30. 30. 3: strong ties among suppliers Toyota divided suppliers in small learning teams -no competitors -rotation -equal capabilities
  31. 31.  One large network with core firm as hub  Bilateral relationships  Weak ties/arm's lenght relations  Structural holes  Explicit knowledge  Members motivated to demonstrate commitment  Power game  self-interest  independence  closed formal contracts  Large network plus multiple nested networks  Multi-lateral relationships  Strong/embedded ties in nested networks with core firm  Dense network  Both explicit and tacit knowledge  reciprocity; benefits of participation outweigh isolation  Trust game  fairness  interdepence  open informal contracts
  32. 32.  Two types of network benefits  Resource sharing  Access to knowledge spillovers  Direct ties  knowledge sharing  complementary skills  scale economies  Indirect ties  knowledge spillovers Ahuja: Collaboration networks, structural holes, and innovation.
  33. 33. Effects of direct ties  The more direct ties, the higher the innovation output  Knowledge sharing  Complementarity  Economies of scale  High maintenance costs
  34. 34. Effects of indirect ties  The more indirect ties, the higher the innovation output  Information gathering devices  Screening device  low maintenance costs
  35. 35. Toyota Introduces its Optimized Global Manufacturing and Supply System
  36. 36. (Innovative International Multi-purpose Vehicle) project  In the summer of 2004 Toyota crossed the threshold to a new age of global production with the launch in Thailand of the Hilux Vigo pickup truck, available in standard cab, extra cab and double cab models.  Toyota initiated the IMV project to create an optimized global manufacturing and supply system for pickup trucks and multipurpose vehicles to satisfy market demand in more than 140 countries worldwide  Toyota IMV Launch Video - YouTube.FLV
  37. 37. CROWD SOURCING-A NEW INITIATIVE  Essence of crowdsourcing  The riddle of knowledge creation  Radical Innovation via illiteracy  End of and era –”engineering of the consent”  Setting up new dimension for mediocrity
  38. 38.  "Ideas for Good"   Corporate crowdsourcing experiment comes to us from Toyota. 1. Total Human Model for Safety (THUMS)  2. Hybrid Synergy Drive® (HSD) 3. Solar Powered Ventilation System 4. Touch Tracer Display  5. Advanced Parking Guidance System (APGS)
  39. 39. References  ons/toyota-production-system  uction_system/  %3B&gs_rn=1&gs_ri=hp&tok=qUo- i120hCn5uycMCxflPw&cp=9&gs_id=17&xhr=t&q=toyot a+production+system&pf=p&output=search&sclient= psy- ab&oq=toyota+pr&gs_l=&pbx=1&bav=on.2,or.r_gc.r_p w.r_cp.r_qf.&bvm=bv.1357700187,d.bmk&fp=accaa25 72706106f&biw=1280&bih=675  
  41. 41. EUROPE