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This paper describes a project undertaken at BAE SYSTEMS to study the process of Continuous Improvement (CI) from a knowledge perspective. We used the Knowledge Structure Mapping (KSM) technique to identify ways of managing the underlying knowledge resource in order to share and disseminate best practice and thereby increase the effectiveness of CI on site. A secondary goal was to investigate the potential for applying KSM to other areas of the business. We provide background to the project, a discussion of the approach taken along with initial results and conclusions.

This paper concerns a project undertaken at BAE SYSTEMS to study the way that Continuous Improvement (CI) is actually implemented by staff in a particular work cell. CI is a strategic activity within a business that faces major competitive pressures to reduce manufacturing costs and timescales, whilst increasing quality and productivity. This study was intended to supplement its knowledge about how CI is currently working and how CI itself could be improved. Traditional process studies tend to focus on what happens and less so on how it happens, the latter being the focus of this novel study. Knowledge Structure Mapping (KSM) is the main technique that we use within the framework of a Structural Knowledge Audit (SKA) [4] and [2]. SKA provides a complete methodology within which KSM can be applied with confidence and includes detailed definitions of each of the key stages of an audit, including the important preparatory work that must be undertaken to establish the context for the actual KSM.

KSM offered a novel and stimulating approach to the study of an important business area as well as highlighting the potential to address a wide range of knowledge focussed business issues. It provided a new perspective on existing problems and also generated some surprising results that caused the team to rethink some of their ideas about how continuous improvement actually works in practice. Encouragingly, the initial scepticism of some team members was replaced by a genuine enthusiasm for the approach and recognition that some results were unlikely to have been found using alternative analytical techniques. By making the knowledge of the team explicit in the form of a knowledge structure map, it was possible to see: 1. exactly what know-how is being applied in continuous improvement, 2. the extent and complexity of the dependencies and 3. understand where the key risk areas were. Analysis of the map and other information collected during the audit did give rise to some surprising results, particularly the synthesis of a continuous improvement process from a knowledge-perspective and novel ways in which some business issues could be addressed. This latter category included finding ways to make more effective observations and it was proposed that BAE SYSTEMS seek advice from the police who are highly trained in this area. One of the most interesting results from the project was the development of a process map for CI that demonstrated clearly that improvements are generated in two distinct ways, which require separate support and encouragement by management. In particular, finding ways to encourage better observation and creative thinking were highlighted as key to this aspect of CI across the site. Inevitably one must question the cost benefit of any new approach. Actual savings in time, effort and cost will only be achieved by selecting the critical observations and implementing them in the light of current business strategy. Importantly, results from the audit include a detailed set of parameters about the state of the knowledge resource, and these can be re-evaluated continuously to measure improvements over time and therefore, the effectiveness of KSM. This project demonstrated that analysing a problem from a knowledge perspective could both enhance other approaches and provide novel insights into business problems. It was rewarding to see that the AMT team took ownership of the project and its results. It was recognised as being a valuable way of sharing and disseminating know-how as well as stimulating and motivating the team to find new ways to solve problems. Ultimately, the quantified measures of success will only come about through careful implementation of key recommendations in the final report. This particular part of BAE SYSTEMS have no doubt that in the long term, a strategic commitment to sharing and disseminating know-how using SKA will enhance quality and reduce costs.