This study examines the problems associated with the use of knowledge management systems designed for transferring internal best practices. The field research explores the nature of engineers’ tacit knowledge in a dynamic context maintaining semiconductor fabrication machines. It illustrates the problem underlying the codification of tacit knowledge embedded in situated practice. Three problems of such embeddedness are explained with reference to task complexity, the collaboration mode, and industrial context. The study analyzes knowledge in actual practice in a high-velocity industry via a situated practice perspective, and suggests how it might affect the use of information systems.