Knowledge Management

BLEKINGE INSTITUTE OF TECHNOLOGY
MBA THESIS
SPRING 2006
SUPERVISOR: ANDERS HEDERSTIERNA
AUTHOR: ASLI MORALI
KNOWLEDGE MANAGEMENT
via
INFORMATION TECHNOLOGIES
CASE STUDY
QUALITY CONTROL PLANS
IN
SIEMENS A&D ET
ACKNOWLEDGEMENTS
I first would like to thank Blekinge Institute of Technology for giving me the chance
to study in the MBA program as an international student.
I also would like to thank Siemens A&D ET for sponsoring my thesis.
My supervisor from Blekinge Institute of Technology, Anders Hederstierna guided me

very much and provided me required feedback along my way.
I then would like to thank Quality Managers of Siemens A&D ET production

locations:
Baban Shinde from India

Thomas Lenz from Brazil
Kudret Yapici from Turkey
Liang Pan from China
Georgios Sarris from Greece
Sorin Popescu from Romania
I also would like to thank Hans Schmidt and Gerhard Nissl from Siemens A&D ET
Regensburg Headquarters Quality Technical Support Department for the unstructured
interviews that has given me a very good insight to the IT systems used in Siemens
A&D ET.
Finally, I would like to express my greatest gratitude to my Supervisor Ertan

Karamehmetoglu from Siemens A&D ET, which supported me during all my way
along the thesis even if he was very busy. I appreciate very much the effort and the
time spent of my supervisor.
Asli Morali
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SUMMARY
Title: Knowlege Management via Information Technologies, Case Study: Quality

Control Plans In Siemens A&D ET
Author: Asli Morali
Supervisor: Anders Hederstierna
Department: School of Management, Blekinge Institute of Technology
Course: MBA thesis, 10 credits.
Background and Problem Discussion: Efficient knowledge management becomes

day by day a very critical issue for organizations by being considered as one of the
most important competitive advantages. Globalization brings more complexity into
business environments and communication and information technologies are very
critical for control and coordination. IT gained much importance allowing
organizations to manage knowledge in global scale. The knowledge sharing is even
more complex and critical for multinational organizations. This study will help to gain
a deeper understanding of the effects of IT in knowledge management process in
multinational companies. As an example, Siemens AG is a well-known multinational
involved in intense global knowledge management and sharing. Siemens A&D ET is
one of the divisions of Siemens AG which is looking for an IT solution for knowledge
management about quality control plans worldwide. The case study will try to find the
most efficient IT solution for Siemens A&D ET to share knowledge internationally
about quality control plans.
Purpose: The primary purpose of the study is to gain a deeper understanding of the
effects of IT in knowledge management process in multinational companies. The
secondary purpose of this study is to give some advices about how knowledge on
quality control plans could be shared in between different locations by use of IT
within Siemens A&D ET.
Method: Inductive, Exploratory, Qualitative Case Study. Primary data is collected

from headquarters and international production locations of Siemens A&D ET with
the help of unstructured interviews and questions sent by e-mail.
Theory: The theory section is constructed at different levels. I started by discussing

the knowledge in general and the classification of knowledge as a basis for the study.
Next, I presented the literature about knowledge management. Then, I covered
Knowledge Management and Information Technologies to discuss finally the
knowledge management in multinational companies by use of IT.
Analysis: I have used the theory chapter as much as possible to analyze the current
situation in Siemens A&D ET. The analysis is done based on the empirical study, first
I analysed the situation in international production locations, then I analysed the
options of IT solutions. Lastly, I combined both analysis to drive a conclusion.
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Conclusion: There is a high dependence on IT for knowledge sharing in
multinationals and the expectations from IT is high. The risk to fall into the trap of
investments for expensive IT solutions is very high for multinational companies.
Multinational companies possess dispersed knowledge all around the world and it is
important to recognize that most of the part of this knowledge is tacit. Therefore even
though IT facilitate the knowledge management and sharing between different units of
multinational companies, it is crucial to develop other means to share the tacit part of
the knowledge base.
For Siemens A&D ET Case it is technically easy to design an IT solution to share,

manage, update and coordinate the quality control plans. 4 different IT alternatives
can be a solution for Siemens A&D ET. Secure Data Exchange Folders and
SharePoint are very easy to initiate and the required level of investment is relatively
low, they might be used as a short term temporary solution. A&D CADIM Web Client
and SAP Q solutions are relatively hard to initiate and the required level of investment
is higher. Therefore, those solutions are suitable as permanent and long term
solutions. However, as the study shows the main problem starts with the tacit part of
the knowledge about quality control plans. Results show that there are many barriers
to share the knowledge about quality control plans via IT and due to low need for
such a system in locations, the commitment of the locations seems to be very low. If
Siemens A&D ET is willing to put one of those solutions into application, it is clear
that all systems require other mechanisms to support the efficient knowledge
exchange. Face to face communication is one of the most important supporting
mechanisms.
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ABSTRACT
Efficient knowledge management becomes day by day a very critical issue for
organizations by being considered as one of the most important competitive
advantages.
Globalization brings more complexity in to business environments and

communication and information technologies are very critical for control and
coordination. IT gained much importance allowing organizations to manage
knowledge in global scale.
In the recent literature about knowledge management there are pessimistic and
optimistic views on the role of IT. Optimistic views put lot of emphasize on the role
of IT on knowledge management. On the contrary, pessimistic views on the role of IT
show the importance of tacit components of knowledge which cannot be shared via
IT.
The knowledge sharing is even more complex and critical for multinational
organizations. They are geographically dispersed and effective knowledge
management is extremely required to survive in global competition. It is important to
control and coordinate the corporations’ dispersed subordinates for which IT is used
as a critical tool.
Siemens AG is a well-known multinational involved in intense global knowledge

management and sharing. Siemens A&D ET is one of the divisions of Siemens AG
which is looking for an IT solution for knowledge management about quality control
plans worldwide. This study will try to find the most efficient IT solution for Siemens
A&D ET to share knowledge internationally about quality control plans. Moreover,
this study will help to gain a deeper understanding of the effects of IT in knowledge
management process in multinational companies.
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TABLE OF CONTENTS
CHAPTER 1 INTRODUCTION 1
1.1. Background 1
1.2. Research question 2
1.3. Purpose of the study 3
1.4. Limitations 3
CHAPTER 2 METHODOLOGY 4
2.1. Choice of subject 4
2.2. Perspective 4
2.3. Preconceptions 5
2.4. Research philosophy, research approach and 5
research
strategy
2.5 General Method of Study 6
2.6 Primary data collection 8
CHAPTER 3 THEORY 9
3.1. What is knowledge? 9
3.2. Classification of knowledge 9
3.3. Knowledge management 12
3.4. Knowledge management and Information 13
Technologies
3.5. Knowledge Management in multinational companies 16
by
use of IT
CHAPTER 4 EMPIRICAL STUDY 21

4.1. Background information about Siemens A&D ET 21
4.2. Definition of the Case Study: Quality Control Plans in
Siemens A&D ET 22
4.3. Results of the questions 22
4.4. Results of the follow-up questions 25
4.5. Current IT Systems used in Siemens A&D ET to 29
exchange
knowledge
CHAPTER 5 ANALYSIS 32
5.1. Analysis of the questions 32
5.2. Analysis of the follow-up questions 34
5.3. Analysis of alternative IT solutions 35
5.4. Overall analysis 39
CHAPTER 6 CONCLUSIONS 42
REFERENCES 45
vi
APPENDIX A 46
QUESTIONS FOR INTERNATIONAL PRODUCTION PLANTS
SIEMENS A&D ET
APPENDIX B 49
FOLLOW UP QUESTIONS FOR INTERNATIONAL PRODUCTION
PLANTS SIEMENS A&D ET
APPENDIX C 51
SAMPLE QUALITY CONTROL PLANS
FROM SIEMENS A&D ET INTERNATIONAL LOCATIONS
APPENDIX D 58
SAMPLE QUALITY CONTROL PLAN IN ENGLISH
LIST OF TABLES
Table 1: Summary of comparison for tacit and explicit 11

knowledge
Table 2: Comparison for alternative IT solutions 38
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Blekinge Institute of Technology
MBA Thesis
Spring 2006 Asli
Morali
CHAPTER 1 INTRODUCTION
This chapter sets the background for my research. Based on this background, I pose my
research question, I set my study purposes and the limitations of my study.
1.1. Background
Organizations today are involved in complex and complicated tasks. With the explosion
of information and an ever increasing consumer demand for high quality products and
services, having a competitive advantage is seen as a basic survival necessity. One
critical issue about competitive advantage is the management of knowledge.
Johannessen, Olaisen, Olsen (2001) are referring to D’aveni (1994) stating that business
are moving more and more towards globalization, turbulence and complexity, together
with increasing development in information and communication technologies which is
simply called hyper-competition. The focus on knowledge is increasing since it is
identified as one of the most important resources for companies resulting in competitive
advantage. (Johannessen, Olaisen, Olsen, 2001) During last years, Information
Technologies (IT) gained very much importance, since it allows organizations to share
and manage the existing knowledge base.
However, there are different views on the role of IT. Some views are optimistic about
the role of IT in knowledge management, some views are more pessimistic. In general
optimistic views’ emphasize is on technology, whereas pessimistic views’ emphasize is
on human aspects.
One example is Hislop (2002) who underlines the optimistic emphasize of IT in the
recent knowledge management literature. He criticizes the literature stating that IT can
have a main role in knowledge management which over-emphasizes technology and
neglects social and cultural aspects. He states there is optimism about ‘how either an
organization’s knowledge assets can be shared directly via information technology
systems or that such processes can be supported and facilitated by information
technology.’ As a result, he takes a pessimistic view about the role of IT in the process
of knowledge sharing. Hislop refers to Cook and Brown (1999), suggesting that the
built-in nature of the knowledge makes difficult its sharing with the help of IT.
Johannessen, Olaisen, Olsen (2001) are underlining tacit knowledge which makes the
difference in creating and sustaining competitive advantages for companies. They refer
to Grant (1996) who states that tacit knowledge makes up the core capability and to
Leonard-Barton (1995) who states that tacit knowledge differentiates the firms from the
competitors and gives strategic advantages.
Knowledge Management via Information Technologies

Case Study: Quality Control Plans in Siemens A&D ET
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The knowledge sharing is even more complex and critical for multinational
organizations. They are geographically dispersed and effective knowledge management
is extremely required to sustain existing competitive advantages and to develop new
ones. The environmental conditions are more complex for multinationals, the cultural
differences play an important role in knowledge management.
March and Bubenko (2000) state, that global economy made geographic distribution
usual in business processes and operations. Development of Internet and World Wide
Web, allows many organizations to make use of dispersed databases which reduces
costs and improves responsiveness to support business processes.
Finnegan and Longaigh (2002) referring to all type of international or multinational

organizations as pan-national corporations, say that pan-national corporations are very
complex in structure and the organizational form is extremely stimulated by
globalization. It is important to control and coordinate the corporations’ spatially
dispersed subordinates for which IT is used as an important tool. Pan-nationals are using
IT to create an ‘effective information-processing network’ to integrate complex
activities and to survive in global competitiveness.
One well-known example for multinational companies is Siemens AG involved in

intense knowledge management and sharing in global scale. Siemens has many
divisions. Siemens Automation and Drives Electro-installation Technologies (Siemens
A&D ET) is one of the divisions of Siemens AG providing worldwide solutions and
products in the area of electrical installation. The headquarters is located in Regensburg
- Germany and there are many production units around the world (in Greece, Romania,
Turkey, India, China, Brazil, USA and Canada).
One current problem in Siemens A&D ET is the knowledge management about quality
control plans. Local production units are responsible for the updates of quality control
plans for their production range. However, the revised quality control plans are neither
with the headquarters nor with the other international production units shared.
All knowledge about quality control generated in local plants is kept inside and not
shared. This might cause duplication of design efforts in new product development and
increase manufacturing efforts in other local plants. Therefore, quality control plans in
local plants need to be managed electronically with the most efficient way and this leads
to the following research question.
1.2. Research question

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“How IT can be used in the most efficient way in Siemens A&D ET to share knowledge
internationally about quality control plans?”
1.3. Purpose of the study
The primary purpose of the study is to gain a deeper understanding of the effects of IT
in knowledge management process in multinational companies.
The secondary purpose of this study is to give some advices about how knowledge on
quality control plans could be shared in between different locations by use of IT within
Siemens A&D ET.
1.4. Limitations
The study is limited to find a solution to share quality control plans for Siemens A&D
ET only for the headquarters in Regensburg and the production locations in Greece,
Romania, Turkey, India, China and Brazil. The other production locations in USA and
Canada are out of the study. This limitation comes from the difference of the technical
standards requirement. In USA and Canada electrical standards (UL standard) are
different than the other countries (CE standard). Therefore the sharing of knowledge is
only needed between the countries where the same technical standards are applied for
production and quality control.

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CHAPTER 2 METHODOLOGY
This chapter presents the method followed during the research. It starts by explaining
why this particular topic is chosen, then perspective taken during the study is stated and
my preconceptions on the topic. I then continue with my research philosophy, my
research approach and my research strategy. Next, general method for the research is
made clear. Finally, I explain my ways of data collection.
2.1. Choice of topic
These days there is an increasing interest in both knowledge management and

information technologies. They both have an important influence on globalization
therefore on multinational organizations. Hence, there are a lot of researches performed
on knowledge management and IT for multinational organizations. One of the crucial
topics in knowledge management is how to use IT to boost effective knowledge sharing.
Even though there are many recent literatures focusing on knowledge management and
IT, there are still big discussions about if IT can be used effectively in knowledge
sharing. Relationship between knowledge management and IT has not been fully
explored.
This topic is even more interesting for multinational companies for which the
environmental conditions are much more complex. During my study, I would like to
focus on multinational organizations. The main reason to choose these types of
organizations is their complex environment and their high dependence on IT.
Multinational organizations basically work across different cultures. They are involved
in international projects, which require high level of communication and cross-border
knowledge exchange. I am interested to learn more about multinational organizations
since I believe it is an important issue for multinationals how to share in the most
effective way their existing knowledge base distributed in different locations. IT is very
important for multinational organizations to share the knowledge but the effectiveness
of IT in this process is not clarified by the recent literature.
Therefore, to do a case study in a big multinational company like Siemens in order to

see how IT can be used in the most effective way to share a part of the knowledge base
is an interesting research question to gain a deeper insight.
2.2. Perspective
I believe that this study would result in important conclusions for medium-level
managers in multinational organizations who are involved in continuous knowledge
exchange process. Therefore during the study I took the perspective of the medium-

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level managers who have a valuable amount of knowledge and who are deeply involved
in knowledge management and exchange. This study would help them to better
understand the knowledge management via IT in multinational organizations.
2.3. Preconceptions
Previously, I worked for a multinational company for around 1 year and had various
experiences and difficulties in knowledge management and effective use of IT. This is
one of the primary reasons why my interest in knowledge management in multinational
organizations increased. Besides, the increasing amount of criticism in current writings
about IT and its effect on knowledge management attracted my attention. I also had
many preconceptions about Siemens. I assumed that IT is being extremely used in the
most effective way to share knowledge in Siemens. I expected that much of the rules are
already in place to facilitate knowledge exchange between international subsidiaries.
2.4. Research philosophy, research approach and research

strategy
The research philosophy guides knowledge development during a research. Positivism

and phenomenology are the two main philosophies. Positivism is trying to generalize
the results of a visible social truth to create laws like in physics or in natural science.
Phenomenology is against laws for social issues and claims that richness of the social
world is mislaid by generalizations. Business cases are the results of a combination of
specific conditions and persons therefore they are multifaceted and unique. Therefore
the cases cannot be generalized. (Saunders, Lewis, Thornhill, 2003)
My study is a phenomenological study since I believe that there is no single correct

answer to my research question. Today’s specific conditions might not be the same of
tomorrow’s specific conditions for Siemens A&D ET. Today’s employees are different
than tomorrow’s employees. Therefore, the result of the study can only be used as a
guide. When internal and external conditions change, the answer of my research
question might change.
Research approach defines whether researcher is clear about the theory at the beginning
of the research. Deduction searches the causal relationships between variables and is
performed more frequently in a scientific research. The theory is developed first and
than tested. The purpose of induction is to gain an understanding of the problem. Theory
is developed after data collection. Inductive research allows alternative explanations to
the problem. A small sample size is more suitable for an inductive approach. Within a
flexible structure of research, the data is collected by various methods and is qualitative
to allow the researcher to set up different views. (Saunders, Lewis, Thornhill, 2003)

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My research approach is an inductive approach. I aim to gain a deeper understanding of

the knowledge exchange by use of IT in multinational organizations by using an
inductive case study in Siemens A&D ET. My study is inductive in the sense that I try to
describe knowledge management of quality control plans by use of IT. I started by
reading existing theories about knowledge management with the aim of understanding
the topic in a deeper way to set a correct ground for the empirical study. I basically
made use of the existing theory to formulate my research question and purposes.
Even though I have an inductive approach, I strongly believe that background theory
helped me to formulate the empirical study in the correct way. I had a sufficient level of
knowledge about the study area before the empirical study. Questions and unstructured
interviews used during the case study are aimed at understanding and learning the actual
knowledge management process for quality control plans and use of IT in Siemens
A&D ET.
My research strategy is exploratory. Exploratory research is about finding out “what is

happening” or “to seek new insights”. (Saunders, Lewis, Thornhill, 2003, p 96)
I am more concerned with the alternative explanations of my context dependent

research question rather than generalizing my findings. I aim to describe an effective
knowledge management process for quality control plans by use of IT within Siemens
A&D ET.
2.5. General Method of Study
This research is done to fulfill the requirements of the MBA Program in Blekinge
Institute of Technology, Sweden. The empirical study is performed in Siemens A&D ET
by the involvement of international quality managers from various local plants and the
quality and IT departments from headquarters.
The study will start with the reading of the previous studies in this area by a literature
review. Then, a well-grounded theoretical background will be set-up to make an
efficient case study. Next the empirical study will be performed. The analysis of the
case will be done by the help of theory chapter. Finally, conclusions based on the
purposes of the study will be drawn.
a. Literature Review
The sources, from which I collected the theoretical information, are all from academic
journals and books. I only had access to academic journals that are available in Blekinge

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Institute of Technology Electronic Library. During my search, I used different key

words such as knowledge, knowledge management, globalization, information
technology and multinational organizations. The background information about Siemens
A&D ET is collected both from Siemens Web Site and Siemens Intranet.
b. Case study
Case study is a research strategy to investigate a specific event in reality. It helps to gain
a rich understanding of the event. (Saunders, Lewis, Thornhill, 2003)
Steps to be followed during my case study:
1. To understand current flow and management of control plans. For a better

understanding, this will be done by analyzing 2-3 different control plans used in
different local production units.
2. To understand the problems of the local production plants about quality control.
This will be performed by sending questions via e-mail. If required follow up
questions might be sent via e-mail or some telephone follow-up might be
performed.
3. To learn the current data sharing systems used in Siemens A&D ET with their
advantages and disadvantages by interviewing the employees in different
departments mainly quality and IT departments in Siemens A&D ET
headquarters at Regensburg, Germany.
4. To check the compatibility of the current data sharing systems with the
management of knowledge on the control plans.
5. To advise a number of feasible solutions by comparing their advantages and

disadvantages and draw conclusions about the effectiveness of those alternative
solutions.
First it was very important to understand current flow and management of quality
control plans and problems concerning exchange of quality control plans. I send out
questions and follow-up questions to international quality managers in Greece,
Romania, Brazil, Turkey, India and China with the expectation that the analysis of the
empirical data would lead first to gain a deeper understanding of how knowledge
management is performed currently within Siemens A&D ET and to find out the best
solution out of many alternatives to exchange quality control plans internationally.
Moreover, 3 quality control plans from three different production units namely from
Germany, India and Turkey, will be analyzed to compare and contrast the similarities

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and differences in each quality control plan. Quality control plans from these locations
are chosen basically due to the language constraints. I speak English, German and
Turkish therefore I have chosen respective countries. The other locations would not be
easy to study.
Second, it was also very important to learn the current data sharing systems used in
Siemens A&D ET with their advantages and disadvantages in order to check the
compatibility of the current data sharing systems with the management, update and
sharing of the quality control plans. For this, I am holding unstructured interviews with
quality and IT departments at headquarters.
One of the greatest constraints to study the topic in deep is the language diversity within
Siemens A&D ET. Most of the data available in Siemens A&D ET is in German.
Moreover, each factory is using the local language for their internal communication.
This makes it difficult to collect and compare some information.
2.6. Primary data collection
Due to variety of production locations, it was impossible to do face-to-face or telephone

interviews with all the quality managers in different locations, therefore I decided to
send my questions in written form to them. Questions sent by e-mail were used as a
means of primary data collection. (Appendix 1) Moreover, unstructured interviews were
held with quality and IT departments in headquarters to learn about the data
management systems within Siemens A&D ET.
In an exploratory study, unstructured interviews might help to understand “what is

happening” and to gain new insights into the research question. Unstructured interviews
grant an occasion to look into answers of the interviewees by explaining their replies.
(Saunders, Lewis, Thornhill, 2003)
I believe that unstructured interviews with quality and IT departments lead me into new
areas that I did not consider before which are important for the understanding of my
research question in depth.

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CHAPTER 3 THEORY
This chapter starts with the definition and classification of knowledge. Then, I continue
with knowledge management. Next, comes knowledge management and information
technologies and I finish the chapter by knowledge management by use of Information
Technologies in multinational companies.
3.1. What is knowledge?
To define the knowledge it is necessary to differentiate between data, information and

knowledge. There is direct relation between data, information and knowledge. Roberts
(2000) clarifies this relation. Data are results of observations, measurements, or facts
presented as numbers, words, sounds and/or images. They don’t have a meaning, but
they are the bases for information generation. Information is the meaningful
arrangement of data which results from the analysis of the data and it is presented as
report or charts or graphs appropriate for a particular use. Knowledge is the application
and fruitful use of combination of information, thoughts, procedures, and insights.
Knowledge incorporates experience, familiarity and learning. (Roberts, 2000)
Therefore, data is the raw material for information and knowledge. The starting point to
generate the knowledge is the data, which can be arranged and analyzed for the creation
of information. Information has more meaning than data and can be presented in various
forms. Then, knowledge is the applied information and it is dependent on the people
who are using the information. The personal experience and insights shape the final
knowledge based on the same data and information.
3.2. Classification of knowledge
Knowledge is categorized by Nonaka and Takeuchi (1995) in two different categories as

explicit and tacit knowledge. The distinction between explicit and tacit knowledge is
important. Nonaka and Takeuchi (1995), state that explicit knowledge can be codified in
a tangible form, whereas tacit knowledge is possessed by people and is inexpressible.
Knowledge is codified when it is recorded or transmitted in the form of symbols or in a
tangible form whereas tacit knowledge is non-codified which is acquired by informal
learning. Tacit knowledge is rooted in a social and cultural milieu whereas codified
knowledge is context-dependent. (Roberts, 2000)
Symbols can be used to formulate explicit knowledge. The transfer of explicit

knowledge is thus easier. Tacit knowledge is rooted in practice and is meaningful within
specific circumstances. Tacit knowledge is more difficult to transfer. Tacit knowledge is
non-codified, intangible know-how acquired by learning by doing. Tacit knowledge

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does not entail the creation and gaining of tangible elements. It is totally alive in the
people, based on practice and experience. (Johannessen, Olaisen, Olsen, 2001)
‘Explicit knowledge represents the knowing about (the objective knowledge), while tacit
knowledge the knowing how (or the subjective knowledge)’. (Bolisani and Scarso, 1999,
p210)
Explicit knowledge is based on the rationalization of information and can be codified in

different shapes such as formulas, designs, reports etc. resulting in relative easiness to
acquire, convey, and store. However, tacit knowledge is directly associated with ideas,
observations and practice. (Bolisani and Scarso, 1999)
Explicit knowledge is assumed to be developed free from personal bias. Embedded in

principles and assumptions of the owner, tacit knowledge is highly subjective, however,
explicit knowledge can be purely and objectively solidified. Explicit knowledge is
assumed to be independent of people and it exists in different shapes like documents
and diagrams. (Hislop, 2002)
The classification of the tacit and explicit knowledge is clear to the authors. Even
though they define tacit and explicit knowledge in different ways, they make a clear
distinction between tacit and explicit knowledge. The table on page 12 summarizes the
differences between tacit and explicit knowledge.

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Explicit Knowledge Tacit Knowledge
 Independent of people, free from  Dependent of people, associated with

personal bias, based on the ideas, observations and practice,
rationalization of information inexpressible
 Objective  Subjective
 Context-dependent  Rooted in a social and cultural milieu
 Codified in a tangible form  Non-codified, intangible know-how
 Recorded or transmitted in the form of  Acquired by informal learning,

symbols learning by doing
 Exists in different shapes such as  Rooted in practice and is meaningful

formulas, designs, reports, documents within specific circumstances, alive in
and diagrams the people, based on practice and
experience
 Easily transferred
 More difficult to transfer
 Relatively easy to acquire, convey, and
store  More difficult to acquire, convey and
store
Table 1: Summary of comparison for tacit and explicit

knowledge
From my point of view explicit knowledge is the raw knowledge similar to information.
I believe the definition of information is very close to explicit knowledge. Information
and/or explicit knowledge is the basis of tacit knowledge. For the authors mentioned
above the different levels of knowledge is as follows:
1- Data
2- Information
3- Knowledge (Both tacit and explicit)

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This means that they treat the explicit and tacit knowledge at the same level.
However, I would suggest adding another level as below:
1- Data
2- Information
3- Explicit Knowledge
4- Tacit Knowledge
Therefore, I would clearly separate the levels of explicit knowledge from tacit
knowledge. The highest level is the tacit knowledge. Data is the basis for information,
information is the basis for explicit knowledge and explicit knowledge is the basis of
tacit knowledge. A parallel discussion is held by Hislop (2002) referring to Tsoukas
(1996) to state two different perspectives about knowledge. Objectivist perspective
separate completely tacit and explicit knowledge and epistemology of practice
perspective argues that tacit and explicit knowledge are indivisible and are jointly
formed.
Hislop (2002) is against a strict classification between tacit and explicit knowledge
stating that tacit and explicit knowledge are not at the end of a spectrum. He criticizes
arguments which state that tacit and explicit knowledge possess totally different
characteristics and are shared in totally different ways. Roberts (2000) also emphasize
that ‘even when knowledge is codified, much of the tacit element remains uncodified’.
Codes like foreign language or a technical jargon should be learned to make sense of
knowledge.
According to Hislop (2002) without an understanding of its language any text will be
random series of letters, numbers and images to the reader. Therefore, knowledge is
tacit, or based on tacit knowledge. He refers to Clark’s (2000) ‘explicit knowledge’ who
symbolizes the indivisibility of tacit and explicit knowledge.
Hislop support my new classification with his argument that the knowledge cannot be
divided totally into tacit and explicit knowledge. As my new classification suggests, the
explicit knowledge is the basis for tacit knowledge and tacit knowledge is the highest
level of knowledge incorporating explicit parts.
3.3. Knowledge Management
Knowledge management can be described as the way organizations collect, increase and
organize knowledge for their specific actions and within their specific cultures to
increase organizational efficiency. It is the ability of an organization to retain or improve

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organizational performance with experience and knowledge. (Pan and Scarbrough,

1999)
Hislop (2002), states that management of knowledge is not ‘simply combining, sharing
or making data commonly available.’ Knowledge management is based on the transfer
or exchange of knowledge. Roberts (2000) names knowledge transfer as the diffusion of
knowledge from one individual to others. Knowledge transfer occurs as a result of
socialization, education and learning.
Epistemology of practice perspective and suggests that, to be useful, knowledge sharing

necessitate people developing a positive reception of its tacit statements on which it
stands. Hislop (2002) refers to Bolisani and Scarso’s (2000) ‘language game’ model
which states that dialogues and language are very important to transfer knowledge.
Johannessen, Olaisen, Olsen (2001) refers to Nonaka (1994) stating that organizational
knowledge is the result of interaction between tacit and explicit knowledge. Therefore
tacit knowledge cannot be understood without the explicit part of the complete
knowledge base. They argue that the challenge for companies is to make tacit
knowledge of people explicit in the organization and that tacit knowledge based on
personal experience can be made explicit in the organization through relationships
based on thrust.
Roberts (2000) underlines the importance of trust for exchange of knowledge. Trust is
subject to social environment, differs from cultures to cultures and nations to nations.
Cross-border exchange of knowledge requires high level of trust which can be only a
result of socialization therefore intense face-to-face relations. Face-to-face contact
compensates difficulties occurring due to cultural and language differences.
Hislop (2002) emphasizes the social construction and cultural embedness of knowledge.
Knowledge is not shaped by passive perceiving but by interaction with social groups.
He further states that effective sharing of knowledge is directly related with wide social
interactions since tacit knowledge can be only shared by high social interactions.
Organizations need to manage their knowledge base to be able to reach organizational

efficiency. The most important challenge is the management of the highest level of
knowledge which is tacit knowledge based on explicit knowledge. Tacit knowledge is
highly dependent on the social environment and on the organizational culture.
Therefore, knowledge management requires more than commonly available databases.
Since tacit knowledge is alive in people, tacit knowledge can be only transferred by
socialization under high level of trust. Therefore face to face communication is the most
important means of tacit knowledge transfer.

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3.4. Knowledge Management and Information Technologies
IT systems format, filter and summarize data to convert them into appropriate
information, playing an important role for knowledge exchange. (Bolisani and Scarso,
1999) IT facilitates the rapid collection, collation, storage, and distribution of data,
which assists knowledge creation and transmission. IT facilitates knowledge transfer by
data exchange. (Roberts, 2000)
IT communication is likely to be more flourishing between people sharing common

social, cultural and linguistic backgrounds. It is likely to be less valuable between
people from various backgrounds. (Roberts, 2000) Hislop (2002) discuss the role of IT
to share the knowledge. Face-to-face communication can only be replaced by
electronic-communication, when the people are not important, when the conditions are
definite and, when the necessary actions are ordinary and regular.
In the recent literature there is a sharp discussion about IT role to transfer different types
of knowledge. Hislop (2002) states that due to the characteristics of tacit knowledge it is
difficult to share it via IT, however explicit knowledge is electronically more simply
shared. The most important aspect weighing in knowledge-sharing is the degree of
tacitness. IT is mostly useful when knowledge is explicit. However, fully explicit
knowledge does not exist. Therefore, knowledge sharing is likely to be more effective
when it is supported not only by IT but also some other means. (Hislop, 2002)
Tacit knowledge transfer and creation is enhanced by IT however, IT fails alone to

supply all the conditions required to share tacit knowledge successfully. (Roberts, 2000)
Bolisani and Scarso (1999) emphasize the difference of storing data from the transfer
practical experience.
According to Hislop (2002) sharing of tacit knowledge via IT is very difficult. The basic
difficulty is to express tacit knowledge in an explicit and objective form which prevents
its effective sharing by IT. Therefore, the use of IT to share the knowledge is limited. He
argues that it might be physically possible to use IT to transfer partially explicit
knowledge, without its tacit elements, however it will not be impossible to develop a
full meaning.
Roberts (2000) states, that IT is more suitable to the transfer codified knowledge
therefore less appropriate for tacit knowledge transfer. Internationally distributed teams
are exchanging both codified and tacit knowledge. This exchange requires high level of
communication. Effective electronic communication requires confidence and trust
between the distributed teams and they should be willing to share information.

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Effective knowledge sharing requires people’s willingness to share their knowledge and
it is based on the trust between people. Without trust and with limited social contact,
people may be unenthusiastic to share their knowledge by means of IT. (Hislop, 2002)
Moreover Hislop (2002) argues that another important aspect the common knowledge
shared between parties involved in knowledge sharing. He refers to Brown and Duguid
(1998) and Leonard and Sensiper (1998) stating that participants develop common
knowledge by working together and in this case knowledge sharing is more simple. As a
result, IT has a greater potential when higher level of common knowledge between
parties exist.
Johannessen, Olaisen, Olsen (2001) are warning organizations against unilateral IT

investments. They state that the focus for an IT investment might be more on explicit
knowledge which can be easily communicated as information. However, tacit
knowledge is the determinant of competitive advantage. Therefore IT investment
without any emphasize on tacit knowledge will fail to success. They refer to Clemons
(1988) and Powell & Dent-Micallef (1997) and state that firms cannot expect IT alone
to produce sustainable competitive advantage.
Johannessen, Olaisen, Olsen (2001) criticize the conservative approach for applying IT.
It is used only for the automation of the existing processes assuming that the original
process is satisfactory. IT has only an amplifier effect since its role is mainly to create
operational efficiency. They further mention about ‘productivity paradox of information
technology’ where there is an expectation that investment in IT should result in higher
profits, which is not true when it is not supported by other mechanisms. They state that
mismanagement of IT is directly related with the lack of understanding of tacit
knowledge, and the relationship between tacit knowledge and IT. IT transfer effectively
only explicit knowledge. Theerfore, tacit knowledge should be emphasized in the IT
usage.
Bolisani and Scarso (1999), state that having a sophisticated IT system does not promise
effective understanding, absorption, and application of knowledge. When tacit
knowledge is concerned, it is impossible to entirely describe languages, rules, and
procedures in advance, and knowledge transfer relies on the “social context” of the
interrelated organizations. However, it is apparent that IT can notably cultivate
knowledge exchange by assisting long distance communication.
It is clear that IT has positive effects on knowledge management by facilitating the

transfer of data, information and explicit knowledge. However it is more effective when
knowledge exchanging participants have similar backgrounds. The characteristics of

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tacit knowledge make it difficult to share it via IT. IT alone cannot provide all the
necessary conditions for the successful sharing of tacit knowledge. Therefore for an
effective knowledge sharing IT should be supported by other means. Confidence and
trust between the participants and willingness to share the knowledge is necessary.
As a result IT is only effective when there is a high degree of common knowledge, trust
and willingness to share the knowledge between participants of the knowledge sharing
process. The most important factor is the degree of tacitness of the knowledge. When
knowledge has highly explicit components, the use of IT will likely to be more
successful for knowledge sharing. IT is less suitable for the transfer of tacit knowledge.
However, for organizations it is the effective management of tacit knowledge which

determines the degree of competitive advantage. Therefore, IT investments should have
an emphasize on tacit knowledge. Since IT transfers effectively only explicit
knowledge, it is important to understand the relationship between IT and tacit
knowledge therefore IT should be supported by other mechanisms for an effective
knowledge management.
3.5. Knowledge management in multinational companies by

use of IT
Ives and Jarvenpaa (1991) refer to Carlyle (1988) stating that as reaction to increasingly
competitive global markets, companies started to implement globally integrative
strategies. There are pressures such as global economies of scale and scope search,
global products development, and growing need to please the desires of international
customers. As a result the need for worldwide coordination and control is increased,
which raises the demand on information and communication between headquarters and
subsidiaries. Cavaye (1997) states, that economic and public order is highly
internationalized. Internationalization is an ongoing and growing fashion and is not a
short-term or irregular issue. Internationalization has increased the interest in and
demand for information systems surpassing national limits. He calls this as
“transnational information systems”.
“A global information technology application contributes to achieving a firm’s global

business strategy by using information technology platforms to store, transmit, and
manipulate data across cultural environments.” (Ives and Jarvenpaa, 1991, p 34)
Business drivers for Global IT are global consumer/customer, global product,

rationalized operations, flexible operations, joint resource, duplicate facilities, scarce
resources, risk reduction, legal requirements and economies of scale for systems. (Ives
and Jarvenpaa, 1991)

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Ives and Jarvenpaa (1991) state that global scale IT reduces time and space and allows
the duplication and sharing of limited corporate knowledge. These capabilities result in
opportunities to pull advantages in market size and geographical scope since they
supply the ways to quickly react to the specific needs of national markets.
Cavaye (1997) refers to Deans and Kane (1992) stating that the development of
transnational information systems is not just a technological concern. Other topics
include the legal, economic and cultural aspects. Cultural aspects comprise evident
diversity in language, currency and national symbols.
There are a number of issues affecting inter-organizational development that are also
relevant to transnational information systems. Importance of creating interest in and
commitment for the system, trust, type of interdependence, standardization and political
& cultural environment in which the system will operate are important points to be
underlined. (Cavaye, 1997)
Ives and Jarvenpaa (1991) state that global scale IT brings management problems that
are quite difficult than those problems came across sharing systems in domestic
divisions. They refer to Cash et al. (1998) who noted “problems related to language,
currency, culture, national infrastructure, availability of IT staff, data export control, and
trade unions.” (p. 34) Besides, hardware, software, communications costs and
availability bring other problems.
Ives and Jarvenpaa (1991) mention the key issues for cultural environment. First, it is
critical to identify vital systems applications or competencies of subsidiaries. Then,
opportunities for global organizational learning in relation with these core competencies
should be provided. Next, the sensitivity of foreign subsidiaries to imposed solutions
should be recognized in order to search jointly acceptable options. Lastly, managers sent
abroad should learn to be more sensitive to cultural differences.
Cavaye (1997) refers to Grover and Teng (1994) further to state that management and
users’ commitment from participating organizations is very important for the success of
inter-organizational systems. Different parties affected should feel involved in the
system. This can be achieved by keeping the participants informed, by giving them the
opportunity to take part in the development and by training and preparing them
appropriately.
Cavaye (1997) refers to Meier (1995) stating that the participants should trust each other
for an inter-organizational systems development project. As long as the benefits of the
system for different participants are clear, trust would be enhanced. Therefore a win-win
situation is necessary for an inter-organizational system to serve in the best way.

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The interdependency between participants linked by a system is another subject to be

underlined. Interface systems linking local and central organizations are simpler to
coordinate and integrate and they hardly result in conflict between participants.
However, fully integrated networked systems necessitate more complex coordination
methods and they might more often result in conflict. It is very important to have a
coordinating body to manage and go on with the development of the system. The
challenge comes from participants possessing different abilities and different levels of
IT penetration. (Cavaye, 1997)
There is a need to control and coordinate the subsidiaries of multinational companies

due to several reasons. There are numerous product lines being produced by complex
processes in different locations. The value chain activities are detached or intense, and
subsidiaries are focusing usually on small parts of the complete value chain. There is
agency problem of harmonizing multinational corporation interests with its subsidiaries.
The subsidiaries might be unaware or unwilling to follow overall corporate objectives.
Undesired duplication and overlap in different locations should be minimized. There are
contrasting mindsets in relation to work and expectations. There is a need to have
continuous and quick learning all over the corporation about different activities
distributed in different locations. Global competition is hard which makes pressure on
the multinational companies. Geographical distribution, language differences and
cultural variety may shape subsidiary managers’ decisions in different ways than the
headquarters. There are various host governments which are imposing different types of
pressures on the subsidiaries. The international financial system is instable. Locally
responsiveness and global competitiveness is required to transfer competitive
advantage. (Finnegan and Longaigh, 2002)
IT might have a controlling role. In multinational companies Networks, e-mails,

corporate databases and Group Ware is used to receive decision-relevant data from
subsidiaries. By use of IT data transfer is more rapid and data is received in a standard
format which makes the handling of data easier in headquarters. Moreover, data is
concise and complete and IT helps to transfer vast amount of data. As a result, higher
quality information is available to headquarters for global decision making. (Finnegan
and Longaigh, 2002)
IT is also used for formalization. Timely accessible data is available to headquarters and
subsidiaries. Data is stored conveniently therefore the access is quick and easy. This
enhances headquarters’ ability to enforce standards and global policies. (Finnegan and
Longaigh, 2002)

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Besides, IT helps monitoring. Data receiving speed of headquarters increases and data
arrives at headquarters from various sources in ready-to-treat format. There is one
standard version of data for the overall organization. As a result, headquarters can
rapidly get a global perspective of its operations and is directly attentive to undesired
actions in the subsidiaries. (Finnegan and Longaigh, 2002)
IT has also a coordination role by enabling rapid data and information sharing for
decision making. By use of IT data and information transfer becomes more reliable and
concise. IT allows streamlined decision making by reducing time and spatial
dependence. Moreover, IT reduces the necessity of traveling for common decision
making. IT reduces the data redundancy and information coming from different
locations can be compared before any decision is made. (Finnegan and Longaigh, 2002)
Last but not least, IT functions as a central information pool and makes some
coordination activities automatic. IT turns some activities more transparent to
subsidiaries which operate on the data or information derived in other subsidiaries. IT
enables subsidiaries in synchronization of activities and in taking group-wide decisions.
(Finnegan and Longaigh, 2002)
The procedure for an inter-organizational IT system suggested by Cavaye (1997) is as

follows. First, it is necessary to identify a system’s need and an accord must be reached
for a system development. Second, exact requirements of the system should be made
clear and the system should be designed. Next, the physical building of the system
should be completed together with programming and networking. Then, the new system
should be implemented and should become operational in daily tasks. Lastly, the system
should be maintained and ongoing development of the system should be ensured.
Ives and Jarvenpaa (1991) mention the key issues for international data sharing. It is
important first to understand the desirability of transborder data sharing and
standardizing which is against the needs of local flexibility and then the responsibilities,
limitations, and exposures for transborder data sharing. Next responsibility for data
standardization should be assigned and subsidiaries should be involved in the
standardization of common data names and data modeling actions. Then, a global data
construction should be designed and developed in conformity with the global business
objectives. Lastly, databases should be physically located based on business necessities,
legal concerns, relative expenditures, supplier support, organizational policies etc.
Cavaye (1997) refers to Picot et al. (1993) to state that it is also important to standardize
data and procedures is also crucial for many inter-organizational systems and it depends
on the applications used for communication between participants.

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Ives and Jarvenpaa (1991) underline the importance of well-defined and standard data
definitions since users of global applications have an access to a common worldwide
database and data from different locations are shared. Therefore, global applications
bring many data management problems. Moreover, global IT applications should be
developed for and operate in a mixed cultural milieu.
The current and long-term fashion of internationalization has changed the rules of the
game for organizations. Due to increasing competition in global markets, there is a need
to have competitive advantages to succeed. Competitive advantage is based on tacit
knowledge which should be managed efficiently. IT systems play an important role for
the knowledge management of multinational organizations.
Global coordination and control is vital to multinational organizations which are

facilitated by international IT systems. Even though global IT systems have many
advantages for multinational organizations, it is important to remember the previous
discussion of the limitations of IT in the management of knowledge, especially of tacit
knowledge. Moreover, for multinational organizations environmental and social
conditions are more complex. Commitment of participants and trust between them is
very important for the success of global IT systems. Another challenge for
multinationals is the different abilities and different levels of penetration of participants
to the global IT system.
Therefore, with its advantages and limitations IT should be carefully studied for
knowledge management in multinational organizations. There are many challenges to
overcome by multinational organizations for a successful management knowledge using
global IT systems and it is important to remember the human factors in tacit knowledge
transfer therefore global IT systems should be supported with other mechanisms.

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CHAPTER 4 EMPIRICAL STUDY
This chapter starts with the background information about Siemens A&D ET and the
definition of the case study. Then the results of the questions and follow-up questions
sent to local production plants are presented. Finally, current IT systems used in
Siemens A&D ET to exchange knowledge have been studied.
4.1. Background information about Siemens Automation &

Drives
Electro-installation Technology (Siemens A&D ET)
“Siemens, headquartered in Berlin and Munich, is one of the world’s largest electrical
engineering and electronics companies. Siemens provides innovative technologies and
comprehensive know-how to benefit customers in 190 countries. Founded more than
150 years ago, the company is active in the areas of Information and Communications,
Automation and Control, Power, Transportation, Medical, and Lighting.”
(www.siemens.com ; 15 March 2006)
“The Automation and Control business area – comprising the Automation and Drives
Group, the Industrial Solutions and Services Group, and the Siemens Building
Technologies Group – supplies products, systems, solutions and services for industrial
and building automation and for airport and postal logistics.” (www.siemens.com; 15
March 2006)
A&D ET Division is responsible for any business concerning electrical installation

equipment and systems. Siemens A&D ET headquarters is located in Regensburg,
Germany. The division has different factories around the world in Germany, Brazil,
Turkey, India, China, Greece, Romania, USA and Canada. (Siemens A&D Intranet; 15
March 2006)
The division is involved more specifically in the following worldwide business fields:
Circuit Protection, Distribution Board, Wiring Accessories, Network Based Building
Control. Circuit Protection includes line protection switches, residual-current devices,
switchgear and control devices, fuse systems, over- voltage protection; Distribution
Board includes wall-mounted and floor-mounted distribution boards, small distribution
boards, meter cabinets, terminal blocks; Wiring Accessories includes switches and
socket outlet systems, electronic products; BC includes building management systems,
radio products. (Siemens A&D Intranet; 15 March 2006)

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4.2. Definition of the Case Study: Quality Control Plans in

Siemens A&D ET
The main problem in Siemens A&D ET is that there is no IT system providing direct
access to the control plans to the headquarters as well as to the other local
manufacturing plants. When a new product is designed in central R&D unit in
Regensburg and made ready for production, the technical drawings together with the
initial control plans are sent to international plants responsible for manufacturing this
product. Once the product is transferred to local manufacturing plants, the responsibility
of updating the quality control plans lies in local production units. However, the
headquarters and the other locations are not informed about the revisions on the initial
quality control plans. Moreover, centralized R&D and decentralized manufacturing
increases communication workload and inefficiencies occur during the exchange of
information regarding control plans.
Siemens A&D ET is looking for a feasible and easy to use solution to share revised
quality control plans, to ensure product quality globally and to decrease design,
manufacturing and quality control efforts and costs by preventing duplication of work in
different production locations of Siemens A&D ET.
The aim of the study is to help Siemens A&D ET, to decide on the available options.
4.3. Results of the questions
The below study is the result of the questions sent to quality managers of local
production plants of Siemens A&D ET to understand the current flow of quality control
plans in Siemens A&D ET. The questions list can be found in Appendix A.
1. When or in which frequency are you revising the quality control plans? What are
your criteria to revise a control plan?
China: Getting the new national or international standards; Getting the new testing plans
from A&D ET Regensburg; Changing of manufacturing process, supplier, drawings
etc.; Existing working instruction to introduce the way to revise the control plan.
Greece: When exists some serious qualitative problem.

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India: Any change in material specification, test parameter, any change in ref. drawing
or I&T schedule; Customer complaints if it demands for change; We revise it every year
for correctness.
Brazil: If they are modifications in products or process or new requirements concerning

the material; System audits are good motivations too.
Romania: We revise our control plans when drawings are changed.
Turkey: Revision of quality control plans have been conducting dynamically; We don’t
have a certain defined period; We decide according to results and variation of inspected
deliveries and write it down on each control plan; In the case of any requirement
(drawing revision, unforeseen results,…) revision is done without waiting next revision
time.
2. Are there differences between quality control plans for internally produced and
externally bought material/ parts/ products?
China: There are same.
Greece: No
India: No.
Brazil: No.
Romania: We don’t perform incoming inspection.
Turkey: No. The systematic is the same. But control criteria are set according to the
requirements of each material/part/product. For internal parts/products we have different
control types (i.e. initial part control, in process control, self control, delivery control)
But for purchased parts/materials we don’t have and don’t need such a separation.
3. In which language are you revising the quality control plans?
China: Normally in Chinese, English if required.
Greece: Greek
India: English

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Brazil: Portuguese
Romania: German and Rumanian
Turkish: Turkish and for exported products in German.

4. Do you think an easy access to the control plans of other factories for the
products/parts that you are manufacturing is helpful and important for your internal
usage? If yes, in which frequency would you need to see the other factories’ quality
control plans? Do you think the sharing of this knowledge would create a synergy
effect?
China: We are thinking about how to share the Quality Management documents, files to
related colleagues by intranet, but we did not released till now. The sharing of
knowledge is very important and helpful.
Greece: This is a very good idea. However the basic problem is the language.
India: Yes, it would be great help to have easy access to control plans (preferably in
English language) of other factories. At least once in a year or whenever there is an
amendment It would help us in knowing the reason and purpose for change and help us
to take possible preventive actions to avoid failures.
Brazil: Some factories buy parts from the same supplier. To have the same requirements
and checkpoints it’s helpful to use the same control-plans. Presently we are introducing
the incoming inspection. If we had pre-defined plans we can save a lot of time. Locally
detected problems should be communicated to other factories. Updates are only
necessary, if there are modifications. If there are special items, the direct contact from
Quality Manager to Quality Manager is easier and quicker, as a well organized data-
transfer. Common databases with shared worldwide access are good!
Romania: Yes.
Turkey: Yes. Sharing such information would be very useful. We would like to access at
any time we need.
5. What are the current problems that you are having regarding the quality control
plans? Please make a short list.
China: The testing methods and testing equipments, which we do not know or do not
have.

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Greece: We do not have concrete problem.
India: No proper tool available. (We prepare it either in XL or Word format and monitor
manually)
Brazil: No special problems. We need a good software!

Romania: In principle no problems.
Turkey: We have excel and macro solutions for control plans. Instead, a professional
CAQ software would be easier and more useful.
6. Are there any problems or difficulties regarding the communication with

Regensburg R&D and Quality departments? If yes, what are they and how do you
think they might be solved?
China: We have the clear interface and contact person.
Greece: The communication is perfect.
India: Language- Regensburg control plans are in German language. If the language
used is English, it would help us in understanding. If any tool like prepare is there it
would help us in timely update of the latest control plans.
Brazil: We need a direct contact with Regensburg.
Romania: No.
Turkey: In the case of any request, there is an efficient reaction and communication. In
addition to this, we would expect more efficient information regarding new
improvements and applications in Regensburg.
7. Roughly how many quality control plans do you have in your current manufacturing
process?
China: 300
Greece: We have 3.759 parts and products to controlling. There are quality control plans
which are used for the inspection more than one parts or products.
India: Approx. 200

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Brazil: Approx. 100
Romania: 12
Turkey: Approx. 500
8. Is there an up to date quality control plan for each part/ assembly/ product currently
manufactured?
China: No. But we do it case by case.
Greece: Yes.
India: Yes.
Brazil: Yes.
Romania: Yes.
Turkey: Yes.
9. Do you use an internal database or a specific software to collect and retrieve the
revised quality control plans? If yes, which database/ software do you use?
China: We use the MS office Excel and Word.
Greece: No.
India: No data base or software available, we use either XL or Word to create control
plans.
Brazil: Our database is a closet full with paper-filled folders. The digitalized raw-
control-plans are stored in a network-folder.
Romania: No.
Turkey: Currently we have excel and macro solutions.
4.4. Results of the follow-up questions

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The below study is the result of the follow-up questions sent to quality managers of
local production plants of Siemens A&D ET to fill in the gap for the required
information that was missing from the first questions to understand in a better way the
current situation about the quality control plans in Siemens A&D ET. The follow-up
questions list can be found in Appendix B.
1. Do you see or understand easily the functional/critical measurements on/from the

technical drawings or on/from the quality control plans sent by Regensburg?
China: Yes, but not all. Because, sometime words and sentences are in German.
Greece: Yes, without problems.
India: Yes.
Brazil: Yes.
Romania: Yes.
Turkey: Yes.
2. Which common language is more suitable for you to share the quality control plans?
German or English?
China: English.
Greece: German.
India: English.
Brazil: German.
Romania: German.
Turkey: German.
3. In which language do you prefer to receive the first original technical drawings and
quality control plans?
China: English, if possible Chinese.

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Greece: German.
India: English.
Brazil: German.
Romania: German.
Turkey: German.
4. What do you think about preparing the quality control plans in two different
languages? The first language would be the common language chosen (German or
English) and the second would be your local language.
China: English and Chinese.
Greece: Positive.
India: It would save translation time and possible error during translation. This should
be good idea.
Brazil: Three languages are the best-case: German, English, Portuguese
Romania: We must prepare our quality control plans in two different language: German
and Rumanian
Turkey: Preparing quality control plans would cause a serious amount of additional
work in application.
5. Do you have an easy everyday access to internet?
China: No.
Greece: Yes.
India: Few time speed is the problem.
Brazil: Yes.
Romania: Yes.

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Turkey: Yes.
6. Do you have an access to Siemens Intranet?
China: Yes.
Greece: Yes.
India: Yes.
Brazil: Yes.
Romania: Yes.
Turkey: Yes.
7. Do you use any type of common database or secure internet data exchange folder or
any type of web client to share data with Regensburg headquarters? If yes, please make
a short list.
China: Yes, we have an application to share quality reports with Supplier Quality
Department on Intranet.
Greece: No.
India: Yes. Prepare and Encryption.
Brazil: Read-only access to Quality Reports on Intranet.
Romania: No. All information exchange with Regensburg headquarters are via e-mail.
Turkey: Currently we only have been using “Workspace” on intranet for Quality
Reports data input. And in the future Puma-Web is being planning to be used.
4.5. Current IT Systems used in Siemens A&D ET to exchange

knowledge
It is important to study the current IT applications used in Siemens A&D ET in order to

check their compatibility with the project. This part of the study is the result of the
unstructured interviews with the IT and quality department in Regensburg Headquarters.
It takes into consideration not only the IT applications used in quality department but

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also all the other departments in Siemens A&D ET. Currently there are many IT
applications used for knowledge exchange in Siemens A&D ET. The basic applications
can be listed as follows.
1. E-mails
2. SAP
3. Siemens A&D Intranet
4. Siemens A&D Web Site

5. Secure Data Exchange Folders
6. SharePoint
7. ET Cadim
8. Qvbas
It is not surprising that e-mails are extremely used in day to day knowledge exchange in
Siemens A&D ET. E-mails are used as a communication mean between various
departments at headquarters as well as between different production units abroad.
SAP is also broadly used for knowledge management within Siemens A&D ET. SAP is
used coordinate all the operational activities in the headquarters. Some of the local
production units also use SAP. However, SAP used in Regensburg headquarter is not
exactly the same that is used in local production units. SAP is modified according to the
needs of the plants. The language used in SAP is the local language for each plant.
Siemens A&D ET Intranet is also used to distribute information within the group. There
is an access to many different types of data regarding purchasing, quality reports. There
are also databases shared via Intranet such as Siemens Corporate Directory to find the
contact information of the employees of Siemens all over the world. There is also
current and up to date information about the projects hold within Siemens A&D ET.
Siemens A&D ET Intranet is connected to Siemens global intranet. Therefore all the
business units have access to the other business units intranet as well.
Siemens A&D ET Web Site is also extensively used to share some information with
customers, employees all around the world etc. There is up to date news in the web site
about the developments, technical achievements in Siemens A&D ET.

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Secure Data Exchange Folders are also used to share information between some local
production units and headquarters. This type of folders are mainly used for some project
work.
SharePoint is for example used to share quality reports with supplier quality department
on intranet between local production units and headquarters. There are other
departments that are also using SharePoint for other data sharing purposes.
Currently in Siemens A&D ET, ET CADIM is used as the database for the technical
drawings of parts, assemblies, sub-assemblies and products as well as 3-D models. ET
CADIM is installed only in headquarters. The other locations don’t have an access to
ET CADIM. Meanwhile there is a project inside Siemens A&D Group to have a
common database for all business units. This database is called A&D CADIM. It has
been planned to migrate all the existing technical drawings to A&D CADIM, to a
common database for overall A&D business units in September 2006. This database
will be fully available in headquarters in Germany. The abroad locations will only have
a limited access via web-client.
Qvbas is used as the database for quality related documents. Currently Quality Control
Plans are also stored and shared via Qvbas. Qvbas is only used in Regensburg
headquarters and is not installed in local production units. However, there is plan to
migrate all the quality related documents in SAP Q until the end of 2006.

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CHAPTER 5 ANALYSIS
This chapter starts with the analysis of the questions and follow up questions sent to
local production plants of Siemens A&D ET. It then continues with the analysis of
alternative IT solutions. A final analysis combines the overall study.
5.1. Analysis of the questions
The criteria to revise the control plans for each factory are more or less the same. It can
be seen from the answers that the revision of the control plans is conducted dynamically
from each local plant. Even though there are not some predefined periods for revisions,
there are cases where one revision is performed every year to ensure the correctness of
the quality control plans. This means that in general the revision of control plans is
reactive but there are also some preventive revisions, in which the factories make their
revisions before any problem or any need occurs. The headquarters needs to make sure
that the revisions are done in time to ensure the products quality worldwide. This is one
of the main reasons that headquarters would like to have a common database to see each
times the updates of the quality control plans.
There is no differentiation between quality control plans for internally produced and
externally bought material/parts/products. The systematic is the same for both types of
quality control plans. The control criteria are set according to the requirements of each
material/product/part. For internal parts or products there are different control types like
initial part control, in process control, self control and delivery control. For purchased
parts/products/material there is no differentiation of controls, the only control performed
is incoming inspection. This implies that there is no need to differentiate between
quality control plans. One common solution would be enough.
The language seems to be the biggest barrier to manage and share the quality control
plans. The revisions of the quality control plans are made in Chinese, Greek, English,
Portuguese, German, Rumanian and Turkish. It is very important to find a common
language of revision for control plans. English or German might be a suggestion.
However, the local plants require also the control plans in local language as well since
these control plans are basically used in the manufacturing. It should be carefully noted
that in manufacturing, most of the workers do not speak English or German and the
local language is a necessity for the control plans. If a common language would be
proposed then the duplication of the work will occur in order to revise the control plans
both in local language and in English or German.
All the local factories think that an easy access to the control plans of other factories is
helpful and important for their internal usage. They believe that the sharing of

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knowledge is very important and helpful. They were already thinking about some
possible solutions to share Quality Management documents by intranet. They have
underlined that the basic problem is the language. India proposed English as a common
language. The frequency of need to see the other factories’ quality control plans is not
well specified. However, at least once a year or when there is an amendment they might
require to check the other control plans or any time they need. However, any IT system
would require an investment of time and money. To check the quality control plans of
other plants once a year is not enough to invest into a new system. Local plants believe
that this sharing of knowledge cerate synergy effect and the reason and purpose of
change on the control plans would help them to take possible preventive actions in order
to avoid failures. It is also important to have the same control plans in order to have the
same requirements and checkpoints. It might also help to save time in case a new
inspection introduction when they see pre-defined control plans of other factories.
Control plans can also be used to communicate locally detected problems. The sharing
of control plans makes it easier and quicker to contact directly between quality
departments and the data transfer becomes more organized. They all believe that
common databases are good.
There are no serious problems stated regarding control plans. China has problems
regarding the testing methods and testing equipments that they don’t have. India states
that they don’t have proper tool available. They use Excel or Word or Macro Solutions
to prepare the control plans and they monitor manually. They agree that hey need a good
professional Computer Aided Quality Software for quality control plans.
The different software (Word, Excel, Macro Solutions etc.) used by different local
factories is another problem to be solved and need a standardization before an IT system
is in place.
In general the local factories believe that there is no problem of communication with
Regensburg headquarters and Quality departments. They believe that they have clear
interface and contact person. In case of any request there is an efficient reaction and
communication. One problem is language. The control plans prepared by Regensburg
are in German. India believes that English would be better for a better understanding.
Also a special tool/software to prepare control plans would help to update the latest
control plans in time. There is also a need to be kept informed about new improvements
and applications in Regensburg.
The number of quality control plans varies from 12 to approximately 500. A common
language or a new database or new software does not bring a problem to the factory
which has a low number of control plans. However, when the number of control plans is
increasing the workload to transfer the information into a new system is increasing.

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Therefore, it is important to find a solution which does not bring a heavy workload to
the factory with high number of quality control plans.
In general there is an up to date quality control plan in local production units, only
China does not have an up to date control plan for each part/assembly or product.
There is no special software or database used to collect and retrieve the quality control
plans. The software used to prepare the control plans varies from Word to Excel and
Macro Solutions. There might be both digital network folders and paper-folders to
collect and retrieve the quality control plans. This shows again the need of
standardization. Only after the standardization of the template used to prepare and
update the control plans, a common database can be more effective.
5.2. Analysis of the follow-up questions
All the countries have no problem of understanding the functional/critical

measurements on/from the technical drawings or quality control plans. The only
exceptional case is China, which sometimes they don’t understand some German words.
Only functional/critical measurements can cause big quality problems. The
nonfunctional measurements are not critical and they might vary from plant to plant
since the production equipment is not the same. Some factories are fully automatic
some factories are based on human force. This brings differences in measurements. For
headquarters the only important measures to be closely controlled are the functional
measures which affect the functional quality of the products. Therefore headquarters
need to make sure that the functional measurements are controlled via quality control
plans.
For China and India English is the preferred language to share the quality control plans.
For the other countries, German is the preferred language.
English is again the preferred language for India and China to receive the first original
quality control plan from Regensburg headquarters. However Chinese is also preferred
if possible by China. All the other countries prefer German.
In general the answers about preparing the quality control plans in two different
language are positive. This would help to save translation time for local plants from
German to local language or vice versa. However this would cause a serious amount of
additional work in application.
Besides China all the countries have an easy everyday access to internet which might
support any solution that would use the internet as the base. All the countries have an

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access to Siemens Intranet, which might support any solution that would use the intranet
as the base.
Greece and Romania has no experience of sharing data via a common database.
However, all the others have this type of data sharing experience.
5.3. Analysis of alternative IT solutions
Even though there are many current IT systems used for knowledge management in
Siemens A&D ET, I would like to concentrate on some of them for my case study. From
the empirical study done about the current IT systems in Siemens A&D ET, only 4 have
been chosen as the possible solution for quality control plans. These are Secure Data
Exchange Folders, SharePoint, A&D CADIM Web Client and SAP Q. After my study, I
found that these 4 solutions are the most suitable for knowledge management on quality
control plans in Siemens A&D ET. There might be other solutions that don’t exist in
Siemens A&D ET current system but these are out of the scope of my study.
a. Secure Data Exchange Folders
Secure Data Exchange Folders can be used to share knowledge between local
production units and headquarters. A Secure Exchange Server can be used to store,
send, and receive quality control plans. Since the files are stored in public folders, and
transmitted via external Internet connection, there is a need to secure them. Public
Folders can be protected by setting user access permission for each folder. Moreover,
different types of user permissions can be assigned. The users can have a read-only
access or they might have the permission to edit the folders and the files inside. Secure
Data Exchange Folders allows user to create new items, to read items and to create
subfolders. Access to public folders can be controlled by distribution lists, an easy
mechanism to assign permissions to different user.
Since all the countries have an internet or intranet access, a common folder for quality
control plans on the internet can be defined and this common folder might have sub
folders for each country. Then each country might have sub folders for the products that
are produced locally. This solution is an easy and very practical to start. The investment
is not so high for this solution. From knowledge management point of view, as the
names implies it is an data exchange folder. Therefore, the knowledge is in form of raw
data. This system does not support tacit knowledge management.
b. SharePoint

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SharePoint facilitate collaboration within an organization by easily creating, managing,

and building collaborative Web sites and making them available in overall organization.
SharePoint is an integrated portfolio of collaboration and communication services
designed to connect people, information, processes, and systems both within and
beyond the organizational firewall. SharePoint can also be used as a development
platform for creating collaboration and information-sharing applications.
The basis for this solution is either Intranet or Internet. Since all the countries have an
access to the Siemens Intranet, similar to Secure Internet Data Exchange Folder, a
common folder might be defined for quality control plans under the SharePoint
Application. Similar sub folder system is applicable here as well. This solution is also
an easy and very practical to start. SharePoint is similar to Data Exchange Folders from
knowledge management point of view. The raw data can be transmitted rather than tacit
knowedge.
c. A&D CADIM Web Client
A&D CADIM solution might be considered as a future solution since A&D CADIM
will be used only in Regensburg at the beginning. The installation of A&D CADIM in
local plants is not planned however there will be a simple solution to use the Web Client
of A&D CADIM in local plants. There are two versions of the Web Client; first read-
only access, second read and write access. The first solution is not suitable for our
project. The second is more suitable since the local plants are responsible for the update
and upload of the revised quality control plans into the database. This solution does not
require the installation of the complete A&D CADIM program to local plants. Therefore
the costs are relatively lower. The main advantage of A&D CADIM Web Client is that it
gives access to the technical drawings of the parts and products. The quality control
plans becomes more meaningful when they are seen together with the respective
technical drawings. With this solution, it is possible to have access to all related
documents for a particular part or product at the same time which results in time
efficiency. In this case the raw data becomes more meaningful when it is seen together
with the related documents such as technical drawings and 3-D models. This support
limited tacit knowledge exchange.
d. SAP Q
Currently there is also a migration of all quality related documents to SAP Q in

Regensburg Headquarters. However, there are no plans to introduce SAP Q in local
plants. This solution is the least possible solution for our project and the most costly
solution. SAP has the most information available about the parts and products.
Therefore it is a compact combination of data, information and knowledge. SAP also

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supports limited tacit knowledge exchange. Even tough it is the least possible solutions
considering the current conditions, it might be interesting to write this solution here and
keep it in minds for future study.
Table 2 on page 39 makes a summary of advantages and disadvantages of all alternative

solutions for a quick comparison. For this comparison I took into account the easiness
of initiation, time to initiate, the costs, easiness of usage, requirement of trainings,
requirement of software installation, requirement of internet/intranet access. Finally, to
return back to the knowledge management I also considered if the alternative IT system
supports tacit knowledge exchange.

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Alternative Solution Advantages and Disadvantages
Secure Data  Easy to initiate

Exchange Folders  Quick initiation
 Low cost
 Easy to use
 Does not require initial training
 Does not require any installation of software
 Requires internet/intranet access
 Does not support tacit knowledge exchange
SharePoint  Easy to initiate

 Quick initiation
 Low cost
 Easy to use
 Does not require initial training
 Does not require any installation of software
 Requires only internet/intranet access
 Does not support tacit knowledge exchange
A&D CADIM Web  Relatively hard to initiate

Client  Relatively long time required for initiation
 Relatively higher costs
 Relatively more difficult to use
 Does require at least some amount of initial training
 Does not require installation of the complete software
but web client component
 Requires internet access
 Supports limited tacit knowledge exchange
SAP Q  Hard to initiate

 Very long time required for initiation
 Very high costs
 Most difficult to use
 Requires a great amount of initial training
 Requires the installation of the complete software
 Requires intranet/internet access
 Supports limited tacit knowledge exchange

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Table 2: Comparison for alternative IT solutions

5.4. Overall analysis
Quality control plans at the first sight seem to be pure explicit knowledge since they are
all expressed in written forms and they are digitalized. Therefore, the exchange of
quality control plans seems straight forward. However, as seen from the empirical study,
this is not a simple task. The tacit parts of the knowledge on the quality control plans
can not be neglected.
Product differences are one of the reasons that there is tacit knowledge involved within
the quality control plans. There are same products manufactured in different countries.
Even though the products are the same, there are slight differences of the products
specifications from country to country. The differences in product specifications might
result from requirements of local market. Therefore, the quality control plans cannot be
exactly the same even for the same product manufactured in two different countries. To
be able to understand the quality control of a special product of a production location,
there is also a need to see at least the corresponding technical drawings.
Second reason for tacit parts in quality control plants is the production system
differences of different manufacturing plants. Even if the products are completely
identical, production systems are different which results in different quality control
plans. Some of the production plants are working with highly automatic equipment and
machinery, some production plants are using hand tools and machines. This results in a
great difference of production process, and difference in production process requires
different quality control plans. Since the production system in each local plant is
different, measurements to facilitate the production are not universal and they are most
of the time subject to change on the location. The initial quality control plans sent by
headquarters are usually changed to optimize the production process. Even though there
is a low probability, wrong interpretation of the technical drawings and functional
measurements might cause product failures or quality defects. There is a need to ensure
that the technical drawings are correctly interpreted by the local plants and control plans
are revised accordingly. However, the production process can only be understood by
closely working in the process. The production process cannot be expressed in the
forms, since the knowledge about specific production processes is highly tacit.
Therefore, these differences cannot be expressed in quality control plans, which make it
difficult for the reader to interpret the knowledge inside without knowing the production
process.
Another problem is the language used to update the control plans. Central R&D
prepares the control plans in German and each local plant translate the control plans to

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the local language. Local plants also use their local language to update the control plans
which makes their sharing difficult. For example, China factory uses Chinese to update
the original control plans which makes impossible to share it with other factories and
headquarters. Language is also seen as a tacit component of knowledge. In case, a
second common language would be used for quality control plans, there is no consensus
about if English or German is the best solution. Moreover, the language problem
depends on the recruiting policy of local plants. Since most of the knowledge exchange
is held in German between headquarters and local production units for example Turkey,
Greece, Romania factories recruited German speaking employees. Therefore, for those
plants English is not the best solution. However, due to difficulties in recruiting German
speaking people, India and China plants recruited English speaking employees.
However, in 10 years this picture might be completely different. China and India
factories might recruit more German speaking employees and the other factories might
recruit more English speaking employees depending on the language policies of the
headquarters. Currently, in Regensburg headquarters German is the official language
and all the documentations are prepared in German. When we look to the other business
units of Siemens, there are some business units which have English as the official
language. Siemens AG might decide in the future that English is the official language
for all business units, then the language problems might be solved in future.
Efficient knowledge exchange also depends on the common knowledge base of different
parties. It is clear that highly automatic factories knowledge base is different than
manually working factories. Moreover, for how long one factory is a Siemens
subsidiary is another important factor. It cannot be expected that 3 years factory has the
same knowledge base as 30 years factory. Tacit knowledge will be accumulated in time
with experience. Therefore, there are differences of tacit knowledge base in different
factories. This makes the sharing of knowledge more difficult. For examples, in China
factory the quality control plans are not revised in time due to lack of experience.
Therefore whether the quality control plans are shared or not does not bring any
difference for China location.
When we comes to the IT solutions, Secure Data Exchange Folders and SharePoint are
both easy to start and they don’t require a high level of investment. They are both easy
to use and they don’t require an initial training. A&D CADIM Web Client and SAP Q
solutions are relatively hard to start, it requires longer time for initiation and the
investment is relatively higher especially for SAP Q alternative.
From the alternative IT solutions, it is clear that no solution support the exchange of
tacit knowledge. However, A&D CADIM Web Client solution allows the users to see
the technical drawings of the respective parts and products, which allows a more clear

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interpretation of the quality control plans. This might be interpreted as limited support
for tacit knowledge exchange.
The last point about knowledge management is the standardization. For all solutions
there is a need to standardize the software in which quality control plan is prepared. To
understand the needs on different control plans of different locations, I studied 3
different quality control plans in Regensburg headquarters, in Turkey plant and in India
plant. Those studied sample quality control plans from locations can be seen in
Appendix C. After this study, I suggested a new quality control plan which brings a
common solution to all plants. I prepared this control plan in English by using MS
Excel. This is a low cost solution for all the plants since in all locations MS Excel is
already installed. This sample quality control plan can be seen in Appendix D.

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CHAPTER 6 CONCLUSIONS
In this chapter I try to summarize the study and give the conclusions about my study.
Then, I give recommendations and suggestions for further research.
With the research question in mind “How IT can be used in the most efficient way in
Siemens A&D ET to share knowledge internationally about quality control plans?”,
there are several conclusions to be made. It is clear that the answer is not simple and
there are various points to be considered for an efficient IT solution in knowledge
management.
From technical point of view the solution seems to be simple. It is technically easy to
design an IT solution to share, manage, update and coordinate the quality control plans
within Siemens A&D ET. The main points to be taken into consideration about the
technical aspects are the easiness of access by headquarters as well as by all
international plants. It is important to keep the system simple for the ease of use. All the
international factories should be able to update control plans on this system and these
updates should be available to the headquarters and to the other factories.
As the overall analysis shows all 4 chosen IT alternatives can be a solution for Siemens
A&D ET. Especially, since Secure Data Exchange Folders and SharePoint are very easy
to initiate and the required level of investment is relatively low, they might be used as a
short term temporary solution. A&D CADIM Web Client and SAP Q solutions are
relatively hard to initiate and the required level of investment is higher. Therefore, those
solutions are suitable as permanent and long term solutions. However, as the study
shows the main problem starts with the tacit part of the knowledge about quality control
plans.
The real challenge starts when human factors are involved into the question. Two
aspects of human factors are clear in knowledge management via IT. First factor is the
tacit knowledge embodied in people. Second, the continuity and efficiency of the IT
systems depends on the level of commitment of the people using the system.
There are some very important points to remind about those two aspects based on this
case study. For the tacit part of the knowledge, the differences of the knowledge base
between different factories are an important barrier to share knowledge about quality
control plans around different locations. Moreover, language seems to be one of the
most important barriers in the successful implementation of any IT solution to share
knowledge on quality control plans. The standardization is also very important for an
efficient application. For the commitment from the locations, it is important to make a

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forecast of the efficiency of the system by seeing the ratio between time and money
investment for the system and the expected outcomes. Due to the workload that any new
IT system would bring to each location and due to low need for such a system in
locations, the commitment of the locations seems to be very low. This result can be
drawn based on the answers of the empirical study that the locations would only use this
system once or twice per year. This makes clear that the efficiency is not very high. No
matter which solution is in place, all of them require a high level of commitment from
the participants. All solutions bring an extra work to the participants mainly due to the
necessity of preparing the quality control plans in two languages and make them
available in the new IT system.
If Siemens A&D ET is willing to put one of those solutions into application, it is clear
that all systems require other mechanisms to support the efficient knowledge exchange.
Face to face communication is one of the most important supporting mechanisms. For
example, workshops by the involvement of the quality managers can be held frequently
in different locations to facilitate knowledge exchange.
With this conclusion I believe the secondary purpose of this study is “to give some
advices about how knowledge on quality control plans could be shared in between
different locations by use of IT within Siemens A&D ET” is fulfilled.
About the primary purpose of the study “to gain a deeper understanding of the effects of
IT in knowledge management process in multinational companies” what I can conclude
is that there is a high dependence on IT for knowledge sharing in multinationals and the
expectations from IT is high. The risk to fall into the trap of investments for expensive
IT solutions is very high for multinational companies. Multinational companies possess
dispersed knowledge all around the world and it is important to recognize that most of
the part of this knowledge is tacit. Therefore even though IT facilitate the knowledge
management and sharing between different units of multinational companies, it is
crucial to develop other means to share the tacit part of the knowledge base. Ives and
Jarvenpaa (1991) state that management must realize the expensiveness of global IT
applications and difficulties to develop and operate them. It is important to understand
the similarities and differences in the underlying business processes across countries as
well as the cultural factors and the tacit part of the knowledge base. Moreover there are
differences between global and local requirements and to make the system alive there is
a need of local user involvement and commitment.
IT is an important tool but cannot do everything alone. Investments by expecting too

much from IT would fail to success. Therefore even I believe IT is very important for
multinationals, I take pessimistic view on IT. It is easy to come up with a technical

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solution but no matter which solution is put into place, multinationals should always
remember the human factor. IT systems are highly dependent on people to be
continuous. If local units are not committed to the system, they won‘t put the required
updates on time. Moreover, it is impossible to share the knowledge completely via IT
due to its tacit components which are incorporated in people. Multinationals should be
careful not to fall into the trap of productivity paradox of IT. IT does not bring the
solution alone; it needs to be supported by other mechanisms to be efficient.
This study gives an idea to the reader how knowledge management can be a
complicated issue for multinational companies based on a case. For this case, it is
interesting to study further how other business units of Siemens solved similar
problems. This might give other alternative solutions to the reader, by seeing the
differences between different business units in the same multinational company.
Moreover, since tacit knowledge is incorporated in people, it might be very interesting

to study how the employee turnover rate affects the knowledge transfer in companies
and how IT systems secure the knowledge transfer in case there are high employee
turnover rates.

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REFERENCES
 Bolisani E., Scarso E., “Information Technology management: a knowledge-based

perspective” Technovation, 1999-19, 209-217.
 Cavaye A.L.M., “Challenges During the Development of Transnational Information

Systems”, Journal of Information Technology, 1997-12, 99-106.
 Finnegan P., Longaigh S.N. “Examining the effects of information technology on

control and coordination relationships: an exploratory study in subsidiaries of pan-
national corporations”, Journal of Information Technology, 2002-17, 149-163.
 Hislop D., “Mission Impossible? Communicating and sharing knowledge via

information technology”, Journal of Information Technology, 2002-17, 165-177.
 Jarvenpaa I., “Applications of Global Informaton Technology: Key Issues for

Managament”, MIS Quarterly, Mar 1991.
 Johannessen J.A., Olaisen J., Olsen B., “Mismanagement of tacit knowledge: the
importance of tacit knowledge, the danger of information technology, and what to
do about it”, International Journal of Management, 2001-21, 3-20.
 March S.T., Bubenko J. Jr., “Information Technologies in Support of Business

Processes”, Information Technology and Management 2000-1.
 Nonaka, I. and Takeuchi, H. (1995) The Knowledge Creating Company, Oxford

Universuty Press, Oxford.
 Pan S.L., Scarbrough H., “Knowledge Management in Practice: An Exploratory

Case Study”, Technology Analysis & Strategic Management, Vol.11, No.3, 1999.
 Roberts J., “From Know-how to Show-how? Questioning the Role of Information

and Communication Technologies in Knowledge Transfer”, Technology Analysis &
Strategic Management; Vol. 12, No. 4, 2000.
 Siemens A&D Intranet
 www.siemens.com

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APPENDIX A
QUESTIONS
FOR INTERNATIONAL PRODUCTION PLANTS
SIEMENS A&D ET

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Those questions are prepared by Asli Morali to collect data for the Master Thesis “Knowledge
Management via Information Technology Case Study: Quality Control Plans in Siemens A&D
ET” The questions should be answered by the quality departments of the International
Production Plants.
Please write your answers in the right column of each question. There are 9 questions. Please
send your answers back to Asli Morali (asli.morali@siemens.com) until 5 May 2006.
1. When or in which frequency are you

revising the quality control plans? What are
your criteria to revise a control plan?
2. Are there differences between quality
control plans for internally produced and
externally bought material/ parts/ products?
3. In which language are you revising the
4. Do you think an easy access to the control
plans of other factories for the
products/parts that you are manufacturing
is helpful and important for your internal
usage? If yes, in which frequency would
you need to see the other factories’ quality
control plans? Do you think the sharing of
this knowledge would create a synergy
effect?
5. What are the current problems that you are
having regarding the quality control plans?
Please make a short list.
6. Are there any problems or difficulties
regarding the communication with
Regensburg R&D and Quality
departments? If yes, what are they and
how do you think they might be solved?
7. Roughly how many quality control plans do

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MBA Thesis
Spring 2006 Asli
Morali
you have in your current manufacturing

process?
8. Is there an up to date quality control plan
for each part/ assembly/ product currently
manufactured?
9. Do you use an internal database or a
specific software to collect and retrieve the
revised quality control plans? If yes, which
database/ software do you use?

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MBA Thesis
Spring 2006 Asli
Morali
APPENDIX B
FOLLOW UP QUESTIONS
FOR INTERNATIONAL PRODUCTION PLANTS
SIEMENS A&D ET

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MBA Thesis
Spring 2006 Asli
Morali
These follow up questions are prepared by Asli Morali to collect further data for the Master
Thesis “Knowledge Management via Information Technology Case Study: Quality Control Plans
in Siemens A&D ET” The questions should be answered by the quality departments of the
International Production Plants.
Please write your answers in the right column of each question. There are 7 questions. Please
send the answers back to Asli Morali (asli.morali@siemens.com) until 19 May 2006.
1. Do you see or understand easily the

functional/critical measurements on/from
the technical drawings or on/from the
quality control plans sent by Regensburg?
2. Which common language is more suitable
for you to share the quality control plans?
German or English?
3. In which language do you prefer to receive
the first original technical drawings and
4. What do you think about preparing the
quality control plans in two different
languages? The first language would be
the common language chosen (German or
English) and the second would be your
local language.
5. Do you have an easy everyday access to
internet?
6. Do you have an access to Siemens
Intranet?
7. Do you use any type of common database
or secure internet data exchange folder or
any type of web client to share data with
Regensburg headquarters? If yes, please
make a short list.

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MBA Thesis
Spring 2006 Asli
Morali
APPENDIX C
SAMPLE QUALITY CONTROL PLANS

FROM SIEMENS A&D ET INTERNATIONAL LOCATIONS

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Spring 2006 Asli
Morali
APPENDIX C1
SAMPLE QUALITY CONTROL PLAN

LOCATION TURKEY

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Spring 2006 Asli
Morali

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Spring 2006 Asli
Morali
APPENDIX C2

LOCATION INDIA

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Spring 2006 Asli
Morali

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Spring 2006 Asli
Morali
APPENDIX C3

LOCATION GERMANY

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Spring 2006 Asli
Morali

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MBA Thesis
Spring 2006 Asli
Morali
APPENDIX D

IN ENGLISH

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MBA Thesis
Spring 2006 Asli
Morali

- 59 -

Knowledge Management

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Knowledge Management

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BLEKINGE INSTITUTE OF TECHNOLOGY

I also would like to thank Siemens A&D ET for sponsoring my thesis.

My supervisor from Blekinge Institute of Technology, Anders Hederstierna guided me

I then would like to thank Quality Managers of Siemens A&D ET production

Baban Shinde from India

Finally, I would like to express my greatest gratitude to my Supervisor Ertan

Title: Knowlege Management via Information Technologies, Case Study: Quality

Author: Asli Morali

Supervisor: Anders Hederstierna

Department: School of Management, Blekinge Institute of Technology

Course: MBA thesis, 10 credits.

Background and Problem Discussion: Efficient knowledge management becomes

Method: Inductive, Exploratory, Qualitative Case Study. Primary data is collected

Theory: The theory section is constructed at different levels. I started by discussing

For Siemens A&D ET Case it is technically easy to design an IT solution to share,

Globalization brings more complexity in to business environments and

Siemens AG is a well-known multinational involved in intense global knowledge

CHAPTER 4 EMPIRICAL STUDY 21

Table 1: Summary of comparison for tacit and explicit 11

Knowledge Management via Information Technologies

Finnegan and Longaigh (2002) referring to all type of international or multinational

One well-known example for multinational companies is Siemens AG involved in

1.2. Research question

Knowledge Management via Information Technologies

1.3. Purpose of the study

Knowledge Management via Information Technologies

2.1. Choice of topic

These days there is an increasing interest in both knowledge management and

Therefore, to do a case study in a big multinational company like Siemens in order to

Knowledge Management via Information Technologies

2.4. Research philosophy, research approach and research

The research philosophy guides knowledge development during a research. Positivism

My study is a phenomenological study since I believe that there is no single correct

Knowledge Management via Information Technologies

My research approach is an inductive approach. I aim to gain a deeper understanding of

My research strategy is exploratory. Exploratory research is about finding out “what is

I am more concerned with the alternative explanations of my context dependent

2.5. General Method of Study

Knowledge Management via Information Technologies

Institute of Technology Electronic Library. During my search, I used different key

Steps to be followed during my case study:

1. To understand current flow and management of control plans. For a better

5. To advise a number of feasible solutions by comparing their advantages and

Knowledge Management via Information Technologies

2.6. Primary data collection

Due to variety of production locations, it was impossible to do face-to-face or telephone

In an exploratory study, unstructured interviews might help to understand “what is

Knowledge Management via Information Technologies

3.1. What is knowledge?

To define the knowledge it is necessary to differentiate between data, information and

3.2. Classification of knowledge

Knowledge is categorized by Nonaka and Takeuchi (1995) in two different categories as

Symbols can be used to formulate explicit knowledge. The transfer of explicit

Knowledge Management via Information Technologies

Explicit knowledge is based on the rationalization of information and can be codified in

Explicit knowledge is assumed to be developed free from personal bias. Embedded in

Knowledge Management via Information Technologies

Explicit Knowledge Tacit Knowledge

 Independent of people, free from  Dependent of people, associated with

 Context-dependent  Rooted in a social and cultural milieu

 Codified in a tangible form  Non-codified, intangible know-how

 Recorded or transmitted in the form of  Acquired by informal learning,

 Exists in different shapes such as  Rooted in practice and is meaningful