International Journal of Quality & Reliability Management

Process-based knowledge management system for continuous improvement

Kevin D. Barber J. Eduardo Munive-Hernandez John P. Keane
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Kevin D. Barber J. Eduardo Munive-Hernandez John P. Keane, (2006),"Process-based knowledge
management system for continuous improvement", International Journal of Quality & Reliability
Management, Vol. 23 Iss 8 pp. 1002 - 1018
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Karl M. Wiig, (1997),"Knowledge Management: An Introduction and Perspective", Journal of Knowledge
Management, Vol. 1 Iss 1 pp. 6-14 http://dx.doi.org/10.1108/13673279710800682
Mike Kaye, Rosalyn Anderson, (1999),"Continuous improvement: the ten essential criteria",
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IJQRM
23,8
1002
Received April 2005
Revised July 2005
Downloaded by University of York At 00:50 18 February 2016 (PT)
International Journal of Quality &
Reliability Management
Vol. 23 No. 8, 2006
pp. 1002-1018
q Emerald Group Publishing Limited
0265-671X
DOI 10.1108/02656710610688185
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0265-671X.htm
Process-based knowledge
management system for
continuous improvement
Kevin D. Barber and J. Eduardo Munive-Hernandez
Bradford University School of Management, Bradford, UK, and
John P. Keane
Smurfit Europe – Corrugated Division, Weston-Super-Mare, UK
Abstract
Purpose – This paper presents a practical methodology for developing a process-based knowledge
management system (KMS) for supporting continuous improvement (CI) and asset management.
Design/methodology/approach – An action research methodology was used to develop a KMS to
support CI in a manufacturing company. The KMS is evaluated through application in the case study
company. This methodology ensures a consistent approach to carrying out all improvement
initiatives. The final part of the methodology addresses the construction of an intranet-based
knowledge warehouse. This contains several searchable areas such as existing information on assets,
new knowledge generated from projects, details of expertise in the business and links to the key
business drivers through the corporate intranet.
Findings – The KMS is shown to support CI initiatives through the utilization of available data
already held within the company’s management databases (production, quality and maintenance)
including consideration of corporate strategic plans. Process models trigger the application of
improvement tools and projects in a true CI environment.
Research limitations/implications – This methodology acknowledges both tacit and explicit
knowledge within the company, and it represents an appropriate environment to promote and develop
a true learning organization.
Practical implications – The system developed is shown to be flexible and has been implemented
in a manufacturing environment. Financial benefits are presented.
Originality/value – The approach used is novel and integrates several areas of IT and process
improvement techniques. The resulting methodology is applicable to large and small companies
without requiring major IT support facilities. The methodology supports the development of true
learning organizations.
Keywords Knowledge management, Continuous improvement, Modelling
Paper type Research paper
Introduction
The knowledge management (KM) discipline seeks to develop a strategy for capturing,
using and transferring knowledge effectively across the organization in order to
improve efficiency and provide sustainable competitive advantage (Demerest, 1997;
Newell et al., 2003; Kluge et al., 2001). Early IT-based knowledge management systems
(KMSs) have been difficult to implement because they have either been too narrow in
scope as in the case of expert systems (Slack et al., 1998; Gargano and Raggad, 1999),
or with a too broad and shallow scope that requires extensive human interaction.
This situation has encouraged a very strong tendency of the KM discipline to focus on
 the softer approach of KMS development through individuals (McDermott; 1999). Process-based
This approach defines that, in learning organizations, individuals are constantly KMS for CI
expanding their capacity to create and achieve desired organization’s results through
nurturing new ways of thinking, prevailing collective ambitions and developing an
environment where people are encouraged to learn from each other (Senge, 1990).
Although key issues of organizational learning are raised in the KM softer approach
focused on individuals’ active participation, this tendency comes from a philosophical 1003
approach and remains vague in its suggestions about how to apply them in practice in
order to develop a true learning organization successfully.
In support of a KM softer approach, there is also concern that IT-oriented KM
initiatives will objectify and fix knowledge into static information with total disregard
to the key role of individuals in knowledge activities (Sveiby, 1997). In addition, there
has been confusion over IT tools and their implications for KM with the repackaging of
existing software applications under the KM label, but without extending their
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traditional data and IT characteristics (Moffett et al., 2004). Knowledge technologies

should encourage users to think beyond their current boundaries, facilitating
organizational activity, promoting continuous knowledge creation and continuous
improvement (CI), and supporting growth through innovation (Moffett et al., 2004). The
confusion regarding KM technologies and the difficulties of distinguishing between
information and knowledge has also led to many unsuccessful expensive investments
in new information technologies related to KM, where dramatic improvements in
business performance were expected (Malhotra, 1998; Sveiby, 1997). Owing to this
situation, managers are still questioning the degree of technological involvement
required for successful KM initiatives (Moffett et al., 2004).
Dougherty (1999) proposes that knowledge transfer is about connection not
collection, and that connection ultimately depends on a choice made by individuals.
Although Doherty correctly indicates that connection is a key factor, the assumption
that it solely depends on individuals is less certain. Such an approach may result in
an ineffective system because there is no obvious driver to ensure an effective
connection not only for knowledge transfer, but a driver is also necessary to trigger
knowledge use, creation and sharing. An IT system can be used to manage key
connections to drive effective and systematic knowledge transfer, which could not
occur in this way in KM systems relying only on individuals. Thus, the correct role of
IT within the KM discipline should be as an integrator of communications technology,
rather than only as a static repository of information or best practices, in order to
support communication, collaboration and adequate searching for knowledge and
information (Moffett et al., 2004).
Internet and intranet technologies can effectively support KM applications. In recent
years, research have been carried out to support the utilization of the intranet not only as
a repository of unstructured information but also as a powerful tool enabling effective
information and knowledge accessibility and communication, supporting collaborative
projects, and offering the opportunity to create new knowledge (Buniyamin and Barber,
2004; Keane and Barber, 2002; Scott, 1998). Most companies have a legacy of
computerized management systems which can be stand-alone or integrated into an
enterprise resource planning system. These can form the basis of a KMS to support CI in
any manufacturing company by providing a formal structure to collect relevant
information, access key performance indicators, review processes; and plan, implement
 IJQRM and evaluate improvement initiatives systematically. Effective CI requires such a
23,8 systematic procedure (Escrig-Tena, 2004).
Thus, the KMS presented in this paper integrates operations data from production,
maintenance and quality databases; data from financial reports and market forecast;
objectives and targets from different strategic plans; process modelling; and an
intranet information repository (Figure 1). This KMS provides a formal structure to
1004 support manufacturing operations and improvement initiatives such as total
productive maintenance (TPM), Statistical Process Control (SPC), Total Quality
Management (TQM), etc. to achieve CI; triggering effective and systematic knowledge
use, creation and sharing.

Knowledge management to support improvement initiatives

A process-based KMS can provide a systematic approach to integrate different
management and operational systems to support improvement initiatives.
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In relation to computerised maintenance management systems (CMMS), it is

possible to identify two tendencies in their design. They can be either based on a
maintenance engineering philosophy or on a “mathematical” operations research
philosophy. The CMMS bottom-up approach focuses on scheduling maintenance
activities and reducing maintenance cost. However, this kind of system is not
concerned with maximizing the utilization of assets in line with strategic plans. A KMS
can provide that connection between maintenance information and the organization’s
targets and strategy.

Figure 1.
Databases, process models
and the knowledge base
integrate the KMS
 TPM is a broader philosophy that integrates quality, production and maintenance Process-based
issues through the promotion of shared responsibility and ownership of processes KMS for CI
and equipment. TPM focuses on reducing life cycle costs through the improvement
of equipment effectiveness and seeking ideal operating systems. The effective
implementation of TPM requires a strong commitment to the five fundamentals
defined by Nakajima (1988). However, western organizations fail to commit to those
five fundamentals, selectively applying only two or three of Nakajima’s principles. 1005
This situation restricts the capability of TPM to solve a specific predetermined set of
problems, and its use as an advanced maintenance management approach (Cigolini
and Turco, 1997). An often ignored key aspect of TPM in western organizations is the
development of a knowledgeable and trained workforce with the capability of applying
CI methods to increase the effectiveness of the organization’s processes.
In order to obtain the same benefits offered by TPM to companies of all sizes and
cultures, a rigorous process-based KMS methodology can be used for promoting CI
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whilst developing and maintaining the company’s knowledge base. This kind of KMS
must be able to interact effectively with quality, production and maintenance
databases, which are necessary to support manufacturing operations and to achieve
performance targets in any manufacturing company. This systematic approach allows
the identification of potential areas for improvement projects, provides knowledge to
support those projects and retain that key knowledge within the organization (rather
than only through individuals) and drive the organization to review this key
knowledge in future activities.
CI is identified as one of the key elements of TQM strategy, where the job of improving
and assuring quality is everyone’s responsibility (Mehra and Agrawal, 2003). Thus, the
management of the organization’s processes, activities and operations must consider CI
because it embodies the desire to improve and control results, and to learn and experiment
(Escrig-Tena, 2004). Extensive information gathering, analysis and feedback are required
in order to facilitate understanding problems and directing efforts to solve them effectively
within a CI approach (Escrig-Tena, 2004). Effective CI initiatives require following a
systematic procedure of planning, implementation and evaluation through standardizing
the functioning of processes, applying different improvement tools, accessing key
performance indicators, and collecting relevant information (Escrig-Tena, 2004).
A process-based KMS can address these requirements to support CI.
A successful KMS also needs to create an environment that encourages users to
seek knowledge for themselves and pull it out from sources both within and beyond the
boundaries of the company (Kluge et al., 2001). The KMS presented in this paper works
precisely as a driving mechanism to encourage a culture of knowledge generation,
elicitation, transfer and utilization, which characterizes a true learning organization;
providing competitive advantage to the organization (Bessant and Francis, 1999).
To create a learning organization, such a cultural change is needed (McDermott, 1999;
Senge, 1990).
The process-based KMS methodology developed during this research encourages
the creation of a learning organization through the experience of implementing
processes that generate knowledge (Figures 2 and 3). The application of process
modeling to the designed KMS is intended to express both implicit and tacit knowledge
from business processes, and this characteristic also distinguishes this approach from
other systems. Some similarities can be observed between a traditional approach of
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23,8

1006
IJQRM

Figure 2.
Process modelling
supports CI initiatives
 Process-based
KMS for CI

1007
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Figure 3.
Process model with
activities of a SMED
program
 IJQRM knowledge mapping and the manner in which process modeling is used within the
23,8 KMS to graphically represent improvement initiatives and guide decisions. However,
there are some key differences that must be addressed. A knowledge map can be
traditionally seen as an actual map, a knowledge yellow pages system or a cleverly
constructed database that points to knowledge but does not contain it (Davenport and
Prusak, 2000). A knowledge map is not a repository but a guide to show where to find
1008 the needed knowledge, pointing to people, documents and databases. Thus, the novelty
in this KMS approach relies on how the process models are used not only to define who,
what and why within a process, but also How and When. These process models are
used as a repository of implicit knowledge, a driver of tacit knowledge and
an assembler of explicit knowledge. This approach takes knowledge mapping to a
different level that is more functional and intuitive to the user of the KMS.
By using and developing the intellectual capital of the organization through this
process-based KMS, it is ensured that the organization itself is the one creating
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knowledge through the application of processes. Although individuals are the ones
running these processes, the process models are defined in such a way that knowledge
is generated each time the process is applied and, therefore, knowledge creation is not
completely dependent on individuals.

Background of the research project

The development and implementation of the KMS methodology presented in this paper
is the result of research carried out at an independent small business unit of a large
packaging company in the UK. This manufacturing group produces corrugated
packaging among other paper related products. In 2000, its net sales were £4.6 billion
with an operating profit of £595 million, while employing 35,000 people worldwide.
The group operates in 40 countries.
Its packaging division had net sales in 2000 of £1.7 billion and an operating profit
of £205 million (37 percent of total sales of the group). This division has around
190 plants in 25 countries (mostly in Europe) and employs over 13,000 people. The
manufacturing plant at which this research took place employs approximately 300
people of which 200 work on the shop floor. Many of the senior or middle management
have more than ten years experience in this industry and there is a slow turn over of
staff. Various skills are required to work specific machinery on the shop floor.
Although operators usually work on a specific machine within a specific team, most
operators can interchange between machinery, which is of a similar nature to what
they have been trained on. The plant operates five main manufacturing processes:
corrugation, printing, die-cutting, folding/joining and transport. In 2000, the
production capacity of the plant was about 59 million square meters of corrugated
board.
This manufacturing plant was interested in developing a system able to recommend
future improvements, to take into account customer demands, and to ensure business
competitiveness. The company had attempted previously to implement TPM, SPC, and
TQM systems. However, it was found that those systems were not actually properly
implemented. When reviewing TPM in the company, there was little evidence of
effective maintenance planning as several maintenance actions were not carried out as
required. SPC had some initial gains when it was first implemented in the company,
but it was found during the machine analyses that the SPC process had become largely
 ineffective in the control of the process. This caused problems not only with product Process-based
quality but also operator morale. The operators felt that SPC was a waste of time. KMS for CI
Action by the operator, in the recording of the process and the highlighting of
problems, did not lead to actions to solve problems. Thus, the loop had not been closed
and the process was not being managed.
A number of important issues related to the appropriate implementation of these
improvement and management techniques were found: lack of understanding and 1009
ineffective implementation; data were collected but often ignored and not used to trigger
analysis and action; there was a culture of living with problems and not dedicating time to
analyze data and find root causes as this was not seen as part of employee’s role;
improvement techniques were no longer used because there was no driver to ensure usage.
These issues could be solved through introducing a mechanism that ensures
following the standardized process of collecting and analyzing data through different
improvement tools. A KMS could be considered a mechanism for driving the
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application of processes while addressing the above issues to bring about cultural
change within the organization.

Research methodology
Susman and Evered (1978) argue that as research techniques have become more
sophisticated they have also become less applicable to solving practical problems faced
by organizations. To address this deficiency, they and other authors in the field of
strategy research, e.g. Checkland et al. (1984), Hill (1987) and Schroeder et al. (1990), call
for direct involvement by the researcher. These authors suggest that this can be
achieved through the use of more appropriate methodologies such as action research,
which will help to create both generalized knowledge and provide solutions of
immediate relevance.
There are a number of aspects of the research reported in this paper that directed
the choice of research approach towards action research. Firstly, the very nature of a
KMS requires an industrially based research project and, as such, an empirical
research approach is more appropriate. Both a case study and action research approach
can be applied. The project was initially affiliated to an individual organization and to
the specific problem of asset management, therefore, the research was limited to a
single longitudinal case study, using action research methods. This action research
approach allows a more comprehensive understanding of the complex nature of this
subject. The design of the KMS methodology presents a flexible framework to develop
a tool integrating different elements that can be adapted to different types and sizes of
manufacturing organizations.
The initial step was to investigate thoroughly the reliability and productivity of the
manufacturing equipment, and to analyze the degree of effectiveness of previous attempts
to implement TPM, SPC and TQM initiatives. Once the current and real condition of
the equipment and improvement initiatives had been evaluated, then a system could be
developed to integrate and implement adequately those improvement programs and other
asset management tools in a more comprehensive and effective manner.

Structure of the process-based KMS

In order to generate knowledge, a process must be followed. Newman (1997) suggested
by using data to form patterns, information is developed. Through the application of
 IJQRM information; knowledge is generated and learning occurs. Based on this framework, the
23,8 system presented in this paper was developed. The system takes data held within the
organization and facilitates its transformation into information and knowledge in an
effective and useful form for the organization. To apply Newman’s framework in the
creation of a KMS to support CI, three areas must be addressed.
(1) Data. This KMS takes advantage of the utilization of existing management
1010 databases from production, maintenance and quality. Data is recorded through
already established processes or automatic data collection methods.
(2) Information. Data is interrogated and formed into patterns to facilitate analysis.
Sets of graphic process models guide the user in the analysis of key
performance indicators KPIs that have been generated through the
management databases. This approach facilitates defining patterns and
priorities, which in turn leads to selection and application of improvement
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processes that will benefit the business.

(3) Knowledge. Process models guide the user or teams through the suggested
improvement process. The process models ensure that the implicit knowledge
held within those models is applied efficiently and that tacit knowledge is
also exploited in order to generate further knowledge. This generated explicit
knowledge is stored on an intranet. This approach facilitates effective access
and structured storing of knowledge. The addition of a search engine ensures
that knowledge can be retrieved both quickly and efficiently, and links
back to the models to ensure re-utilization the next time the process is
administered.

Process models, which are created within a process modeling software, play a key role
in this system by supporting both the information and knowledge areas of the
framework. Thus, the system integrates the existing management databases in three
key areas (production, maintenance and quality data), data from financial reports and
market forecast, process modeling (improvement processes), and intranet technology
(knowledge) (Figures 1 and 4). Production, quality and maintenance information are
essential to operate efficiently any manufacturing process in any company. In addition
to the utilization of these key databases, the process models also direct the user to other
sources of important information for decision-making, such as sales plans and
performance targets aligned with the organization’s strategy. Thus, this approach is
applicable to any type of manufacturing organization.
The systems OMP (OM Partners system for production planning and reporting),
SPC and CMMS are the specific management databases, which are accessed
through the process models, guiding the user to analyze data and encouraging CI
projects. OMP provides real time production data such as run speeds and set
times, and it can be accessed through a Microsoft Access query table. SPC
provides data on process capability and process drift. SPC data can be used as an
early indicator of machine faults and mismanagement of assets. CMMS provides
maintenance data such as machine records and scheduling. Graphs and tables
produced within these databases can be also accessed through links in activity
boxes of process models.
The company’s intranet is utilized as a repository for the information that is
generated through the processes contained in the models. The intranet also stores
 Process-based
KMS for CI

1011
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Figure 4.
Information is continually
updating the KMS
elements

information referred within the models and general information related to management
of assets. On the top level of accessibility to the intranet, information is classified into
the five areas or categories: models, improvement techniques, performance data,
general information, and procedures. Each of these categories is then broke down into
more manageable sub-divisions, which are cross-linked to other areas of the intranet
when necessary. The intranet has links to both the process models and the
management databases. The intranet includes a search function that helps to
effectively filter huge amounts of information in order to focus on the required
information. The intranet not only provides support to the process models but it can
also be used as a standalone research tool.
New information fed into the intranet, generation of new and revised process
models, and performance information updated on an ongoing basis continually
updates the KMS. Thus, the system grows and remains relevant to the business.
Internal information also flows from the management databases to the process models
and to the intranet in order to support them. The process models direct the user to
access the required information on the intranet, such as quality procedures or standard
operating procedures. Information flows back from the intranet to the process models,
in order to support those processes, e.g. cost justification spreadsheet. Finally,
information then flows from the process models to the management databases as a
result of directing the user to examine a particular database.
In order to design a valuable KMS, it is important to consider three key issues
(Moffett et al., 2004):
(1) Users should not have to learn completely new technologies to use their
knowledge more efficiently but, instead, they should use already known tools to
create and process knowledge.
 IJQRM (2) Information awareness, accessibility, availability, input and maintenance must
23,8 be taken into account to facilitate decision-making through the KMS (Offsey,
1997).
(3) Effective interaction between individuals and the IT system must be considered
in the functionality of the KMS (Preece et al., 1994).

1012 The KMS presented in this paper addresses these issues. Existing databases and the
company’s intranet are integrated into the KMS together with the application of
process modeling. The elements of the KMS are available to relevant individuals to
take decisions during the different processes. In addition, the KMS design allows its
utilization as an effective training tool.

Application of the KMS to support CI initiatives

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The front-end of the KMS presents five top-level options: identify and improve worst
process; consider strategic issues; consider annual targets; consider controlled process
parameters; search for existing information and knowledge. This example of the
application of the system shows how asset management is driven through customer
requirements and product mix forecasts for the coming year.
The option “consider strategic issues” was initially selected (Figure 2). The
first activity in this process guides the user to consider the sales plan in order to
identify the machine process with the highest planned utilization for the coming year.
The sales plan is elaborated through collaboration between the marketing, sales and
manufacturing departments. This procedure highlighted that the process of Machine 1
(Figure 5) was the priority due to the over capacity required (by an average of 120
percent) for the coming year (as indicated in the sales plan), if this machine process
performed as in the previous year.
The next activity in this process model (Figure 2) requires analyzing “overall
equipment effectiveness” (OEE) for the machine process (in this case Machine 1)
through a spreadsheet, which links automatically into the OMP system to obtain the
required production data. The OMP system can provide production data quickly
because it can be accessed through a Microsoft Access query table. This analysis
facilitates decision making about selecting the area of the OEE that could contribute
most to resolve the over capacity issue. Thus, the model guides the user to address
the achievement of performance targets.
Within this specific example, it was found that set-up times contributed most to the
inefficiency in OEE. Set-up targets that had been defined in the Eurobest plan were

Figure 5.
Relevant information such
as machine capacity is
available through the
KMS to support
decision making
 found to be not stringent enough and, therefore, a new target was set in line with the Process-based
required capacity for the coming year. The Eurobest plan is the benchmarking KMS for CI
and improvement process that has been applied across this packaging group.
This plan encourages the application of improvement processes and awards best
performing machines. The objective is to achieve dramatic improvement in key
manufacturing measures as judged against Europe’s best, improving reliable capacity
and driving lower costs; accordingly with the group business strategy. 1013
The next activity in this process model (Figure 2) guides the user to select the
“set-up and adjustment” activity box that links to another model with step-by step
instructions to carry out an effective single minute exchange of dies (SMED) exercise
(Figure 3) in order to address the revised set-up targets.
The KMS allows the user to interact with the model and call on data,
information and knowledge that is relevant to a specific activity that is being
completed. Some activity boxes may contain links to lower level processes
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described in more detail. As the user becomes more familiar with the application
of the process described in the models, skills are improved and there is usually no
need to keep referring to every area of the model. At this point the model is useful
for accessing standard forms that may be required or to examine past records of
improvements to check progress.
The models also contain links to guide the user to store information and
knowledge onto the intranet. This ensures that knowledge is not lost and in fact
the organization learns as everybody within the organization has access to this.
Knowledge such as standard operating procedures, solutions to problems that have
been previously solved, and other project key issues are discussed in this area of
the KMS.
Digital video of key procedures such as standard set-ups can be recorded on the
intranet and then easily accessed when needed. This advantage can be used to train
new operators or transfer knowledge to plants within the group. Therefore, knowledge
is built up over time within this KMS.
Although standard operating procedures were stored in the intranet and used on the
machine process, it is still necessary to monitor set time to ensure that gains are held
and variability in set time remains low.
After the SMED process, another process model is activated to ensure that
gains from the SMED application are held. Data is monitored through SPC. In the
specific improvement project of reducing set times, set times are recorded from
OMP and then converted into X bar control charts, allowing control limits to be
set. The instructions in the model indicate that when data falls outside of the
control limits then a revision process is activated to investigate the reason for this,
suggesting a solution for the problem and bringing the process back under control.
In this particular example, the set time before improvement suffered from variation
and this was highlighted by the SPC program. This shows how the KMS is used to
monitor achieved gains and to ensure that, when a problem occurs and variation is
creeping into the process, the KMS will highlight the problem and activate a process to
control this variation. Various parameters and KPIs are monitored in this way in order
to highlight and act upon areas of poor machine performance. Some examples of these
KPIs are product quality, machine speed, process waste, breakdown time and machine
stoppages.
 IJQRM Benefits of the system
23,8 The main outcome of the KMS presented in this paper is its capability to drive learning
and raise the knowledge level within the organization to such an extent that its
organizational culture can be changed significantly in order to transform it into a true
learning organization.
The KMS allows direct access to a number of tools (SMED, stoppage reduction,
1014 RCM, TPM, six sigma, etc.) for helping to solve problems and promoting CI. Some of
these tools are modeled in a generic manner in order to allow their application to
different situations. For example, TPM can be successfully supported with the
application of this KMS. A model based in the TPM philosophy helps to determine a
problem area and the application of improvement tools to solve that problem.
This model directs the user to trigger projects, examine data and to apply other
processes in order to solve priority problems. Operational data, market forecast,
performance targets and objectives are used to support decision-making activities
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indicated by the model. Modeling the TPM approach in this way allows repeatability
and feedback to improve the application of the tools, making TPM more effective,
allowing quicker and more reliable planned maintenance activities, and reducing the
number of pending actions. Thus, users can begin the application of an improvement
process with the confidence that they are using the correct tool to address an issue that
has been derived through a robust process of data collection and analysis. That
confidence, which did not exist during previous attempts to implement improvement
initiatives within the company, now influences positively the cultural change by
encouraging the application of the KMS as part of normal operations and to learn
from it.
Similarly, the KMS provides a formal approach to carry out data interrogation.
In the case of quality related data, a model instructs users how the SPC data should be
examined. It highlights whose responsibility it is to carry out each activity and how
they should be developed. Documentation is also attached to the model to explain and
help teaching operators what patterns of data signify a problem. Control charts and
problem sheets can also be called up. Thus, the KMS outlines how to interrogate the
data, when this should be done, who should do it and what should be used to assist
in this analysis. Once the location of the problem is established, then the KMS
identified the improvement tools that will help to resolve it. The KMS allows closing
the loop to transform operator’s efforts to highlight problems into effective actions to
solve them. The KMS can also work as a training tool for employees not only within
the company, but it can also be used as a mechanism for transferring knowledge to
different manufacturing facilities.
The graphic process models within the KMS not only drive the application of the
improvement processes but they also act as a catalyst for knowledge creation.
The knowledge generated during improvement projects is fed back into the intranet
knowledge base. This feedback continuously populates the intranet knowledge base
with experiences and knowledge that the users have been acquiring, increasing the
robustness and usefulness of the knowledge base.
This method of population of the knowledge base is different from other
approaches, such as expert systems. In this KMS, the initial knowledge within the
process models and intranet is still useful from the very first time the system is used.
In contrast, expert systems depend on a significant initial population that determines
 the usefulness of the system. In addition, the population of the KMS is efficient and Process-based
over a much broader base than an expert system because feedback is inherent within
the designed KMS.
KMS for CI
Since the KMS was implemented, it has been used in support of projects in the areas
of SMED, stoppages, six sigma, reliability centered maintenance (RCM) and TPM;
providing an appropriate structure for those initiatives and that had been lacking in
previous attempts. Total year on year savings of £213,000 were estimated as a result of 1015
the development and implementation of the KMS (Table I). Those savings account for
over 15 percent of the total operating profit.
The KMS includes more than 150 process models and over 2,000 files held on the
intranet knowledge base. These numbers are increased as new improvement initiatives
are carried out. The KMS is managed by the quality department. Although it is
difficult to give definitive proof that a learning organization has been created through
the development and implementation of the KMS, a number of issues have been noted:
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.
Profitability increased in a reducing market. In 2002, the UK corrugated market
volume reduced by 3 percent while the company increased their market share by
2 percent and profitability increased by 3.7 percent.
.
The implementation of improvement initiatives is more efficient. A SMED
process was previously carried out over a period of seven months (reducing set
time by 42 percent) while a SMED project supported by the KMS was done over a
two month period and set time was reduced by 57 percent.
.
Knowledge gained during the application of an improvement initiative is
transferred across other processes through the KMS.
.
More process models are added to the KMS as the application of each process
feeds back to the models in order to refine and further develop those processes.
Each application of a process ensures that knowledge is gained and stored on the
intranet knowledge base. Therefore, the KMS is again driving the feedback and
learning that is indicative of a learning organization.

Conclusions
This paper presents evidence of the effectiveness of the proposed KMS as a mechanism
to create, support and drive a learning organization. The KMS methodology effectively
drives interrogation and analysis of data, and allocation of the best-suited
improvement tool to solve the highlighted problem area; allowing storage of the
information and knowledge gained within the KMS intranet. This systematic approach
promotes CI effectively. The implementation of relevant tools is managed along with
the knowledge that is needed to use the suggested tools and the knowledge resulting

Year on year savings of the implemented KMS (£)

SMED 72K
Stoppage process 39K
Six Sigma 42K Table I.
RCM 6K Savings resulting from
TPM 54K the application of the
Total estimated savings 213K KMS methodology
 IJQRM from applying them. The development and implementation of the KMS has allowed a
23,8 significant level of savings within the case study company (approximately 15 percent
of the total operating profit per year), transfer of knowledge and learning, increased
profitability in a declining market (3.7 percent profit increase), increased effectiveness
of the applied processes, and effective feedback into models and processes in order to
refine and improve those processes.
1016 The KMS has shown benefits from its early days of implementation and unlike
other systems, i.e. expert systems, the system does not need to be initially fully
populated before it can be implemented. Knowledge can be attached to the models
during their development stages, and also as processes are being applied. Therefore,
knowledge and learning are increased regularly as a process is applied and population
of the KMS happens as it is used. This was particularly helpful during the development
of the project as interest and support from senior management was maintained
throughout the research as benefits were continually made evident from early stages.
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As the KMS evolves through feedback from the application of improvement

processes, this is demonstrating that the business and its individuals “learn from its
learning”. The efficiency of this learning is being demonstrated through the increased
effectiveness of improvement processes when they are applied, which also support CI.
Therefore, it is possible to affirm that a learning organization has been created through
the implementation of the KMS.
The design of the KMS facilitates future changes, updates and additions to the
process models, helping maintaining the KMS relevant to the business. This allows
managing the growth of the KMS knowledge content. The KMS methodology shows a
flexible approach to integrate key operational and strategic databases, process models
of operations and improvement initiatives, and intranet knowledge repositories into a
useful tool to support learning organizations. This approach can be adjusted and
applicable to single independent manufacturing SMEs or to a group of plants, and in
different manufacturing sectors.
An action research approach with a longitudinal design allowed a direct involvement
with the company, its employees, operations and systems to appropriately support the
development and implementation of the KMS. The longitudinal designs facilitated
familiarization with the manufacturing operations within the company, understanding
the operational and management databases, developing process models and integration
of the different elements of the KMS over a long period of time.

Future research
The KMS needs mechanisms for maintaining the knowledge within the system, as
knowledge has varying levels of usefulness and some knowledge might no longer be
relevant to the organization. This complex issue is at the moment addressed through a
specific job role. Work is also necessary on the development of a knowledge
classification mechanism for the KMS, as an aid to system maintenance.
The KMS should be further tested in companies in different manufacturing sectors.
This will give insight into the application of the KMS within another organizational
structure and the effectiveness of the system within other industries.
Many of the processes modeled within the KMS are standard tools. Although these
tools are available within the relevant literature, it is still surprising to find that only a
few firms apply them at all, never mind in a systematic, repeatable or standard fashion;
 as showed by a survey carried out between manufacturing companies in the North West Process-based
region of the UK (this research is still under development). The development of an KMS for CI
affordable generic system will allow the tools to be applied more readily, making these
tools accessible to SMEs.
The KMS could be also developed to improve processes relevant to the service
sector. A proportion of the tools applied to the manufacturing sector could be useful to
the service sector and additional tools could be added to drive improvement. 1017
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Corresponding author
Kevin D. Barber can be contacted at: K.D.Barber@bradford.ac.uk

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