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1. In the late 1990s, DaimlerChrysler implemented a knowledge management system to address problems that arose from siloed work groups. 2. The Engineering Book of Knowledge (EBOK) was created as an intranet knowledge repository. It was maintained through employee participation in technical clubs. 3. New knowledge was proposed by employees, discussed within technical clubs, and approved by book owners before being added to the EBOK. This ensured best practices were validated before being shared company-wide.

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219 views2 pages

Case)

1. In the late 1990s, DaimlerChrysler implemented a knowledge management system to address problems that arose from siloed work groups. 2. The Engineering Book of Knowledge (EBOK) was created as an intranet knowledge repository. It was maintained through employee participation in technical clubs. 3. New knowledge was proposed by employees, discussed within technical clubs, and approved by book owners before being added to the EBOK. This ensured best practices were validated before being shared company-wide.

Uploaded by

tahirihranim
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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DAIMLERCHRYSLER EBOKS WITH KNOWLEDGE MANAGEMENT

In 1980 Chrysler Corporation (www.daimlerchrysler. com) came back from near bankruptcy with innovative designs and a view of a shared culture in design, development, and manufacturing. The company began new ways of looking at its business, its suppliers, and its workers. After the acquisition of American Motors Corporation (AMC) in 1987, executives developed and deployed advanced, dedicated platform design and production methods, which showed enormous potential. Jack Thompson, the technology center development director, worked closely with Chairman Lee lacocca on the development of a modern new engineering and design facility. Thompson designed the center around knowledge-sharing and productivity principles: open air, natural light, and escalators (because people don't talk on elevators/ lifts). In 1994 the tech center opened, providing a home for a transformed engineering culture. Two years later, the corporate headquarters was moved next to the tech center so executives could be nearby. By 2000, over 11,000 people were working at the Auburn Hills, Michigan, center. In November 1998, Daimler-Benz became the majority owner of Chrysler Corporation, renaming the company DaimlerChrysler. Chrysler's fast, efficient, and innovative nature, as a result of the extremely successful platform approach to design and engineering, led to the buy-inthe largest merger in manufacturing history. Platform production at DaimlerChrysler has teams of engineers focused on a single type of car platform (small car, minivan, etc.), working on new models as a system from concept to production. Cars are designed by a single team considering customer needs and preferences, as opposed to the standard practice of organizing the new designs by organizational functions (silos). Platform teams of employees work and learn together focused on the product, with a payoff in market responsiveness, reduced cost, and increased quality. The Chrysler LH, the first model developed with the platform approach, took 39 months to produce; typically the time to market Adapted from W. Karlenzig, "Chrysler's New KnowMobiles," Knowledge Management, May 1999, pp. 58-66; M. Rapport, "Unfolding Knowledge." Knowledge Management Magazine, July, 2001; and other sources.

exceeds 50 months. Since then, major automobile manufacturers have greatly reduced these times. While the benefits were clear, Chrysler executives noticed that unexplained errors were popping up in the new platforms (like leaving a moisture barrier out of car doors). There was an organizational memory problem: Mentoring and peer support became limited. Informal and formal professional collaboration had stopped. The same mistakes were being made, corrected, and repeated. People were not learning about new developments in their core areas. The typical collaboration found among groups doing similar work was sharply reduced, and so problems and solutions were not being documented or shared. Collaboration and communication needed to be reestablished within groups with common training, interests, and responsibilities (design, engineering, body, engine, manufacturing, etc.). The goal was to reestablish these links while becoming more competitive with even faster product-cycle times. Chrysler needed to institutionalize knowledge sharing and collaboration. In 1996 Chrysler Corporation made knowledge management a vital condition for design and engineering, leading to dramatic improvements in productivity. First, engineers mapped out where the knowledge was within the organization (a knowledge audit, see Rapport, 2001). There were many categories, or "buckets of knowledge," ranging from product databases to CAD/CAM systems to manufacturing, procurement, and supply vehicle test data. Within each category, details were identified and codified. Sharing knowledge meant integrating these knowledge buckets, while resolving cultural issues that impeded sharing across platform boundaries. Chrysler created informal cross-platform Tech Clubs, functionally organized communities of practice to reunite designers and engineers with peers from other platform groups. Each community would then codify its knowledge and provide mentoring and apprenticing opportunities for learning. The Engineering Book of Knowledge (EBOK) is Chrysler's intranet supporting a knowledge repository of

process best practices and technical know-how to be shared and maintained. It was initially developed by (wo engineering managers but continues through encouraged employee participation in grassroots (i.e..supported at the lower levels of the organization) Tech Clubs. EBOK is written in Grape Vine (Grape Vine Technologies), runni ng as a Lotus Notes application, and is accessed w i t h t h e Netscape browser and NewsEdge. Knowledge is explored and entered i n t o t h e EBOK through an iterative team approach: the Tech Clubs. Best practices are identified, refined, confirmed, and finally entered into the EBOK in a secure interactive electronic repository. When an author proposes a best practice, users in the Tech Club responsible for t h a t area of knowledge react by commenting on the knowledge through a discussion list. One manager, the Book Owner, is u l t i m a t e l y responsible for approving new entries and changes to the book. The Book Owner joins the conversation.The author can respond to the comments by either building a better case or going along with the discussion. Ultimately the Tech Club decides, and t h e Book Owner enters t he new knowledge. The Book Owner is (he individual who is u l t i ma te ly responsible for the accuracy of the book, a n d therefore approves entries to, modifications to, and deletions from the book.

The EBOK is DaimlerChrysler's official design review process. The EBOK even contains best-practices information about DaimlerChrysler's competitors. DaimlerChrysler has d e t e r m i n e d t h a t EBOK is both a best practices tool (the codification strategy w i t h a repository storage model) and a collaboration tool ( t h e personalization strategy with a network storage model). Da i ml e r Chrysl e r officials recognize that because the e n v i r o n m e n t changes and new methods are being continu a l l y developed, t h e EBOK will never be f ul ly complete. The EBOK is a living book. The EBOK leverages technology knowledge. The EBOK is central to DaimlerChrysler's new way of working. The plan is to have more t h an 5,000 users w i t h access to 3,800 chapters, of w h i c h j u s t over h a l f were completed by early 1999. Through t h e EBOK. DaimlerChrysler reconciled its p l a t f o r m problems and developed a technical memory while tracking competitive information, quality information, and outside standards. Even t h o u g h th er e is no cen tr al budget for books of knowledge and associated processes. DaimlerChrvsler is deploying knowledge in other departments, such as manufacturing, finance, and sales and marketing.

CASE APPLICATION QUESTIONS


1. Platform design at DaimlerChrysler led directly to a reduction in the time to market and in costs for new vehicles. Explain how it caused new problems. 2. What is meant by a community of practice? How did DaimlerChrysler leverage the knowledge within such a community? 3. Describe the Engineering Book of Knowledge (EBOK). Explain how it is updated by adding new knowledge of practice. 4. It has been said that "the proper role for all knowledge management tools is to leverage technology in service to human thinking." Explain this statement. 5. How successful was the knowledge management i n i tiative at DaimlerChrysler? 6. Consider h ow a book of knowledge could i mpa c t another organization, ideally one with which you are affiliated (e.g.. your university, job, part-time job. family business). Describe the potential impacts, and list the benefits. Would there be any organizational culture issues to deal with? Why or why not?

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