Improving Productivity & Sustainability Through Knowledge Management System

Abstract

In the business world, the main goal is to make maximum profit while optimize operational efficiency will then be regarded as secondary. Generally speaking, most of the managers pursued to outsource routine or IT work to save money. In the past, AFC maintenance was done by in-house staff due to its nature and service criticality level. In September 2009, the AFC maintenance work for AT&D and TKL were outsourced. Although management enjoyed cost saving from outsourcing, they also realized the subsequent loss of key AFC knowledge. On the other hand, HR issues were also emerged in the form of staff layoff, redeployment, succession plan and etc. In transportation services, the marketplace is customer-oriented particularly expectation of front line services will be much higher. Customers take charge and always request responsive and additional services. After outsourcing, MTR could not easily request additional work or flexible scope of work from contractor unless pay more or revise the contract. For sure, outsourcing can save significant money at the beginning. However, in the long run, the company must review whether or not she has over dependent on contractor in a way that suffering from loss of some key knowledge and ultimately weakening her capability and sustainability in the market. Leavitt Diamond is a model for analyzing management change. It suggests that technology, tasks, people, and the organizational structure must maintain equilibrium. Outsourcing had reduced the tasks, people and simply organizational structure whilst KMS is one of the solutions to keep LD in equilibrium by improving technologies and KM mechanisms within the organization. In this project, KMS in AFC will be applied to leverage knowledge between both in-house staff and maintenance contractor. Secondly, a knowledge reservoir for AFC system will be built. The ultimate goal is to maintain key knowledge of AFC so as to improve productivity and sustainability of the business.