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"Knowledge management framework in managing the risks in supply chain and
                        logistics management".

                       M.Sc. Knowledge Management

             K6299 – Critical Inquiry in Knowledge Management

               Guide: Dr. Ravi S. Sharma (Associate Professor)

                                 22/04/13

                                  RSS – 06

                               Presented By

                Surendran Ravindran            (G1200857G)
                Thangavel Yogesh               (G1200864C)
                Venkataramanujam Kannan        (G1101791L)
Problem Background


 “Risk comes from not knowing what you are doing” (Warren Buffet, 2007) - It
 is the quote by the well known billionaire, as he mentioned the lack of
 information is one of the reasons behind the risk event.


 The current supply chain management does on build on the collective knowledge
 of the workforce       Inefficient usage of available knowledge in the company.

 Toyota’s JIT approach leading to financial loss.
 (http://www.reuters.com/article/2011/03/21/us-japan-supplychain-sp-
 idUSTRE72K5AL20110321)

 Identified gap: Decision making process in risk management does not involve
 human capital.
Research Objective


  •To develop a framework by integrating Knowledge management with
  Risk management for addressing the lack of human capital usage in
  supply chain decision making.

  •Evaluating the framework with an integrated map that links
  Knowledge map with risk map using Unilever as a case study.
Research Methodology



   • Research Type: Qualitative and interpretive
   • Research Method: Content Analysis study on Supply Chain and Risk
    Management.
   • Considered Attributes - Product Variety, Types and Methods of Risk
   • Literature review.
   • Development of Framework - Fusion of KM and RM Framework
   • Evaluation - Using the framework to generate the Knowledge Map and Risk
                   Map for a company
Company Background and its Supply Chain Management

   • Toyota – Toyota Production System: Lean Manufacturing System, Total
     Quality Management
   • Unilever – Sustainability Stakeholder Rating Tool
   • Nestle – Key Performance Indicators, Powersim-Simulation Modeling
   • Coca-Cola – Guiding Principle Metrics
   • L'Oreal – Categorised by Key Tasks
Risk Types and Mitigation Ways

    •   Demand Risks
    •   Supply Risks
    •   Infrastructure Risks
    •   Catastrophic Risks                             Associated Risks
    •   Regulatory Risks
    •   Bureaucratic and Legal Risks     •   Toyota – Natural Risk (Recent Earthquake)
    •   Borderless Manufacturing Risks   •   Coca-Cola – Environmental Risk (Water)
    •   Financial Risks,                 •   Unilever – Competition Risk (Competitors)
    •   Information Risks                •   Nestle – Natural Risk (Land)
    •   Intellectual Property Risks      •   L'Oreal – Demand Risk (Suppliers)
    •   Production Capacity Risks
    •   Operational Risks
    •   Political Risks
    •   Technology Risks
    •   Shipping Risks
    •   Competition Risks
    •   Quality Risks
KM and RM Fusion




                   Concepts: Risk Management Principles and Guidelines (Standards Australia, n.d)
Risk Intelligence




                    Concepts: Risk Management Principles and Guidelines (Standards Australia, n.d)
Knowledge Management Framework
Unilever as a Case Study

           Brand Value
           Customers, Retailers, and Suppliers
                                                        Relational Capital
           Network
           Strategic Alliances and Outsourcing
           Investments
           Polices, Process, Practices and Procedures
           Information and Communication                Structural Capital
           Technology
           Knowledge Portals
           Research and Development
                                                         Human Capital
           Human Resource
Unilever as a Case Study - Risk Analysis

           Risk ID              Risk Event               Risk Category        Likelihood   Business Impact
              A                Political Risk           Macro economy              Low          High
              B               Supplier Risk                Resource                High       Medium
              C                 Legal Risk                 Political              Medium      Medium
              D               Shipping Risk                Resource               Medium      Medium
              E                Natural Risk             Macro economy              Low          High
              F            Environmental Risk            Competitive               High       Medium

         *Scale: Low (1-3), Medium (4-6), High (7-10)




                                                Source: Cause and Effect Method
Unilever as a Case Study – KM Map



                                                Cultural Values
                       Creative Wisdom                                      Positive Thinking




                  Knowledge Creation          Knowledge Transfer       Knowledge Retention
                •IDEA Storm platform (B)     •Corporate                •Knowledge database
                •External research           socials/Expertise         (B)
                institutes (D) (B)           directories (A) (F)       •‘Newbee’ Knowledge
                •T-shaped approach           •Knowledge Repository     transition (E)
                •COPs & focus groups(F)      (C) (D)
                •Informal meetings           •EKP
                •AAR




                                                    Unwavering Drive
                         Knowledge Sharing                                      Innovations
Conclusion

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Knowledge Mangement framework in managing the risks in supply chain and logistics management

  • 1. "Knowledge management framework in managing the risks in supply chain and logistics management". M.Sc. Knowledge Management K6299 – Critical Inquiry in Knowledge Management Guide: Dr. Ravi S. Sharma (Associate Professor) 22/04/13 RSS – 06 Presented By Surendran Ravindran (G1200857G) Thangavel Yogesh (G1200864C) Venkataramanujam Kannan (G1101791L)
  • 2. Problem Background “Risk comes from not knowing what you are doing” (Warren Buffet, 2007) - It is the quote by the well known billionaire, as he mentioned the lack of information is one of the reasons behind the risk event. The current supply chain management does on build on the collective knowledge of the workforce Inefficient usage of available knowledge in the company. Toyota’s JIT approach leading to financial loss. (http://www.reuters.com/article/2011/03/21/us-japan-supplychain-sp- idUSTRE72K5AL20110321) Identified gap: Decision making process in risk management does not involve human capital.
  • 3. Research Objective •To develop a framework by integrating Knowledge management with Risk management for addressing the lack of human capital usage in supply chain decision making. •Evaluating the framework with an integrated map that links Knowledge map with risk map using Unilever as a case study.
  • 4. Research Methodology • Research Type: Qualitative and interpretive • Research Method: Content Analysis study on Supply Chain and Risk Management. • Considered Attributes - Product Variety, Types and Methods of Risk • Literature review. • Development of Framework - Fusion of KM and RM Framework • Evaluation - Using the framework to generate the Knowledge Map and Risk Map for a company
  • 5. Company Background and its Supply Chain Management • Toyota – Toyota Production System: Lean Manufacturing System, Total Quality Management • Unilever – Sustainability Stakeholder Rating Tool • Nestle – Key Performance Indicators, Powersim-Simulation Modeling • Coca-Cola – Guiding Principle Metrics • L'Oreal – Categorised by Key Tasks
  • 6. Risk Types and Mitigation Ways • Demand Risks • Supply Risks • Infrastructure Risks • Catastrophic Risks Associated Risks • Regulatory Risks • Bureaucratic and Legal Risks • Toyota – Natural Risk (Recent Earthquake) • Borderless Manufacturing Risks • Coca-Cola – Environmental Risk (Water) • Financial Risks, • Unilever – Competition Risk (Competitors) • Information Risks • Nestle – Natural Risk (Land) • Intellectual Property Risks • L'Oreal – Demand Risk (Suppliers) • Production Capacity Risks • Operational Risks • Political Risks • Technology Risks • Shipping Risks • Competition Risks • Quality Risks
  • 7. KM and RM Fusion Concepts: Risk Management Principles and Guidelines (Standards Australia, n.d)
  • 8. Risk Intelligence Concepts: Risk Management Principles and Guidelines (Standards Australia, n.d)
  • 10. Unilever as a Case Study Brand Value Customers, Retailers, and Suppliers Relational Capital Network Strategic Alliances and Outsourcing Investments Polices, Process, Practices and Procedures Information and Communication Structural Capital Technology Knowledge Portals Research and Development Human Capital Human Resource
  • 11. Unilever as a Case Study - Risk Analysis Risk ID Risk Event Risk Category Likelihood Business Impact A Political Risk Macro economy Low High B Supplier Risk Resource High Medium C Legal Risk Political Medium Medium D Shipping Risk Resource Medium Medium E Natural Risk Macro economy Low High F Environmental Risk Competitive High Medium *Scale: Low (1-3), Medium (4-6), High (7-10) Source: Cause and Effect Method
  • 12. Unilever as a Case Study – KM Map Cultural Values Creative Wisdom Positive Thinking Knowledge Creation Knowledge Transfer Knowledge Retention •IDEA Storm platform (B) •Corporate •Knowledge database •External research socials/Expertise (B) institutes (D) (B) directories (A) (F) •‘Newbee’ Knowledge •T-shaped approach •Knowledge Repository transition (E) •COPs & focus groups(F) (C) (D) •Informal meetings •EKP •AAR Unwavering Drive Knowledge Sharing Innovations