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					       SCOR 8.0 Overview

The Next Generation in SCC Models
    DCOR, SCOR and CCOR
         SCOR
Model Use and Deliverables
• The SCC is an independent, not-for-profit, global corporation with
membership open to all companies and organizations interested in
applying and advancing state-of-the-art supply chain management
systems and practices.
    • Over 800 Company Members
    • Cross-industry representation
    • Chapters in Australia/New Zealand, Brazil, Greater China,
    Europe, Japan, North America, and South East Asia with
    petitions for additional chapters pending.
•The Supply-Chain Council (SCC) has developed and endorsed the
Supply Chain Operations Reference-model (SCOR) as the cross-
industry standard for supply chain management




                               3
  What is a process reference model?
         • Process reference models integrate the well-known concepts of
           business process reengineering, benchmarking, and process
           measurement into a cross-functional framework

Business Process                                Best Practices           Process Reference
 Reengineering          Benchmarking              Analysis                     Model
                                                                       Capture the “as-is” state
Capture the “as-is”                                                    of a process and derive
state of a process                                                     the desired “to-be” future
and derive the                                                         state
desired “to-be”       Quantify the
future state          operational
                      performance of                                   Quantify the operational
                      similar companies                                performance of similar
                      and establish                                    companies and establish
                      internal targets                                 internal targets based on
                      based on “best-in-                               “best-in-class” results
                      class” results           Characterize the
                                               management              Characterize the
                                               practices and           management
                                               software solutions      practices and
                                               that result in “best-   software solutions
                                               in-class”               that result in “best-in-
                                               performance             class” performance




                                           4
SCOR Boundaries
• SCOR Spans:
  – All supplier / customer interactions
     • Order entry through paid invoice
  – All physical material transactions
     • From your supplier’s supplier to your customer’s
       customer, including equipment, supplies, spare
       parts, bulk product, software, etc.
  – All market interactions
     • From the understanding of aggregate demand to
       the fulfillment of each order
  – Returns


                         5
SCOR Boundaries (cont’d)
• SCOR does not include:
  – Sales administration processes
  – Technology development processes
  – Product and process design and development
    processes
  – Some post-delivery technical support processes
• SCOR assumes but does not explicitly
  address
  – Training
  – Quality
  – Information Technology (IT) administration (non-
    SCM)
                         6
SCOR is structured around five distinct
management processes
                                                                   Plan




       Deliver   Source      Make    Deliver      Source           Make    Deliver        Source   Make   Deliver   Source

       Return    Return              Return                                                               Return    Return
                                                                                          Return
                                                   Return                  Return

                                                                                                                    Customer’s
Suppliers’                Supplier                          Your Company                       Customer
                                                                                                                     Customer
 Supplier
                  Internal or External                                                    Internal or External




                                                            SCOR Model

                                                      Building Block Approach
                                               Processes                        Metrics
                                               Best Practice                    Technology


                                                               7
                                          SCOR 8.0 – Processes
                                                Level 2
            Plan                            P1 Plan Supply Chain

             P2 Plan Source              P3 Plan Make           P4 Plan Deliver         P5 Plan Returns



                    Source                           Make                                  Deliver
Suppliers




                                                                                                                Customers
            S1 Source Stocked Products           M1 Make-to-Stock                 D1 Deliver Stocked Products


             S2 Source MTO Products               M2 Make-to-Order            D2 Deliver MTO Products


            S3 Source ETO Products              M3 Engineer-to-Order          D3 Deliver ETO Products


                                                                                  D4 Deliver Retail Products




                      Return                                                                   Return
                      Source                                                                   Deliver


                                                      Enable


                                                          8
SCOR Contains 3 Levels
                                                    Level

                                                #    Description                                                                Schematic                                                Comments
  Supply Chain Operations Reference model




                                                                                                                                 Plan
                                            1                                                              Source                   Make                     Deliver
                                                                                                                                                                         Level 1 defines the scope and content for the Supply
                                                          Top Level                                                                                                      Chain Operations Reference model
                                                                                                                                                               Return
                                                    (Process Types)                                               Return
                                                                                                                                                                         Here basis of competition performance targets are set

                                            2                                                                                                                            A company’s supply chain can be “configured-to-
                                                     Configuration                                                                                                       order” at Level 2 from approximately30 core “process
                                                        Level                                                                                                            categories.”
                                                        (Process                                                                                                         Companies implement their operations strategy
                                                       Categories)                                                                                                       through their unique supply chain configuration.

                                            3           Process                                                                                                         Level 3 defines a company’s ability to compete
                                                     Element Level                                                                                                      successfully in its chosen markets and consists of:
                                                        (Decompose                                                                                                      • Process element definitions
                                                         Processes)                                                                                                     • Process element information inputs and outputs
                                                                   P3.1
                                                                                                                                                                        • Process performance metrics
                                                                                                                                                                           •
                                                      Identify, Prioritize, and Aggregate
                                                                                                                                                                        • Best practices, where applicable
                                                                                                                                                                        • System capabilities required to support best
                                                          Production Requirements
                                                                                                         P3.3                                 P3.4



                                                                    P3.2
                                                                                            Balance Production Resources with
                                                                                                Production Requirements
                                                                                                                                        Establish Detailed
                                                                                                                                        Production Plans
                                                                                                                                                                          practices
                                                      Identify, Assess, and Aggregate
                                                                                                                                                                           •
                                                           Production Resources



                                                                                                                                                                         Companies “fine tune” their Operations Strategy at
                                                                                                                                                                         Level 3

                                                                                                                                                                         Companies implement specific supply chain
                                            4        Implementation                                                                                                      management practices at this level
  Not                                                     Level
   in                                                    (Decompose                                                                                                      Level 4 defines practices to achieve competitive
 Scope                                                     Process                                                                                                       advantage and to adapt to changing business
                                                          Elements)                                                                                                      conditions




                                                                                                                                            9
Using Version 8.0
  •   Structure
       – Introduction
       – Plan
       – Source
       – Make
       – Deliver
       – Return
       – Glossary
            • Process Definitions
            • Metrics
       – Metrics Appendix
       – Best Practice Appendix
  •   Notation
       – Plan (P), Source (S), Make (M), Deliver (D)
       – Enable is associated with a corresponding element (e.g. EP)
       – Levels are denoted by numbers and decimal points
            • P1.2 = P (Plan) 1 (Supply Chain) .2 (Identify, assess and
              aggregate supply chain resources)
                                10
   Mapping material flow
                                                                                              (S1, D1)
                                                                                              (SR1,DR1,DR3)


                                                   Manufacturing
                                                                                              Warehouse


                                                    (S1, S2, M1, D1)                                      Customer




    Customer
                                                    (SR1,,DR1)                    European Supplier
                                                                                                      (S1)
(S1)                                                                                       (D2)       (SR1,SR3
(SR1,SR3)                                                                                  (DR1)
                Warehouse                                       Warehouse
                (S1, D1)                                       (S1, D1)
                (SR1,DR1,DR3)                                  (SR1, DR3)
                                              Latin American
Other Suppliers                               Suppliers
  (D1)                                           (D1)


                                                                       Customer




           Warehouse   Customer

                                                                  (S1)
                                  (S1)
(S1, D1)                                                          (SR1,SR3)
                                  (SR1,SR3)
(SR1,DR1,DR3)




                                                    11
    Mapping the execution processes
                                                                                   Americas
                                                                                  Distributors

                                                                                    S1


                                                                                    SR1
 European
              S2     M2        D2
RM Supplier
                                                                                    SR3
                                     S2
                                                 M1     D1     S1         D1        S1
                               DR1   SR1
                                                         DR1    SR1         DR1     SR1


                                                         DR3    SR3         DR3     SR3
                                     S1

Key Other     S1     M1        D1
   RM
Suppliers
                                                                      Alpha
                     RM                         ALPHA                Regional       Distributors
                   Suppliers                                        Warehouses




                                           12
       Identifying Plan Activities
                             P1                         P1               P1




              P2             P3

                                       P
                                       4                 P
                                                         3                  P
                                                                            2
                                                P2                P                 P
                                                                  4                 4

 European
              S2       M2         D2
RM Supplier


 Key Other    S1        M1                 S2          M1    D1        S1          D1         S1
    RM                            D1
 Suppliers

                                           S1

                                                                        Alpha               Consumer
                     RM                              ALPHA             Regional         Distributors
                   Suppliers                                          Warehouses




                                                13
Supply Chain Scorecard & Gap
Analysis
             Supply Chain SCORcard                                     Performance Versus Competitive Population
            Overview Metrics SCOR Level 1 Metrics          Actual        Parity      Advantage        Superior     Value from Improvements
                              Delivery Performance to
               Supply         Commit Date                  50%            85%            90%            95%
               Chain
               Reliability
                              Fill Rates                   63%            94%            96%            98%
 EXTERNAL




                              Perfect Order Fulfillment    0%             80%            85%            90%          $30M Revenue

            Responsiveness Order Fulfillment Lead times    35 days      7 days         5 days         3 days        $30M Revenue
                               Supply Chain                                                                        Key enabler to cost and
               Flexibility     Response Time              97 days       82 days        55 days        13 days      asset improvements
                              Production Flexibility      45 days      30 days         25 days        20 days
                              Total SCM Management
                              Cost
                                                                                                        3%            $30M Indirect Cost
                                                            19%           13%            8%
 INTERNAL




                  Cost        Warranty Cost                 NA            NA             NA             NA                  NA


                              Value Added Employee
                              Productivity
                                                            NA          $156K          $306K          $460K                 NA

                              Inventory Days of Supply    119 days     55 days         38 days        22 days               NA
                              Cash-to-Cash Cycle Time
                 Assets                                   196 days     80 days         46 days        28 days        $7 M Capital Charge
                              Net Asset Turns (Working
                              Capital)
                                                          2.2 turns     8 turns       12 turns       19 turns               NA




                                                                  14
    Decomposing Metrics                                                                              Revenue
                                                                                                Accounts Receivable
                                                                                                    Cash Flow
                                                         Perfect Order
                                                          Fulfillment
  Cycle Time




                                   Supplier                   Schedule          Perfect Order
                                on time delivery             Achievement         Fulfillment

                                                                                                      On Time
                                                                           On Time
                                    Delivery                                                          In Full
                                                                           In Full
                                  Performance
                                                                                                       Docs
                                                                            Docs
 European                                                                                             Damage
RM Supplier                                                                Damage
               S2       M2           D2
                                                                                   Supplier            Perfect Order
                                                                                on time delivery        Fulfillment
 Key Other                                         S2
    RM         S1        M1          D1                          M1        D1             S1          D1               S1
 Suppliers
                                                   S1

                                                                                           Alpha                  Consumer
                      RM                                          ALPHA                   Regional              Consumer
                    Suppliers                                                            Warehouses


                                                        15
     Performance Measurement                                                                               Revenue
                                                                                                      Accounts Receivable
                                                                                                          Cash Flow

                                                          Perfect Order
                                                           Fulfillment
                                                                       Perfect Order
  Cycle Time
                                     Inventory                          Fulfillment
                                                                        Goal – 95%


               Metrics            Supplier                 Schedule              Perfect Order
               Conflict              Supplier
                               on time delivery             Schedule
                                                          Achievement             Fulfillment Order
                                                                                      Perfect
                                 on time delivery         Achievement
                                                                                        Fulfillment        Perfect Order
                                  Actual – 85%            Actual – 95%
                                                                           On Time     Actual – 90% On TimeFulfillment
                                                                                                             Actual - 85%
                                   Delivery                                                          In Full
                                       Delivery                              In Full
                                 Performance
                                     Performance
                                                                                                       Docs
                                     Actual – 99%                            Docs
 European                                                    Under-performance
                                                                        Damage
                                                                                                      Damage
RM Supplier    S2         M2        D2                           •Process
                                                                             Supplier                 Perfect Order
                                                                 •Systems on time delivery             Fulfillment
 Key Other                                      S2                                              Under-performance
                                                               M1           D1
    RM
 Suppliers
               S1         M1        D1                                                    S1
                                                                                                    •Process S1
                                                                                                   D1

                                                                                                    •Systems
                                                S1

                                                                                           Alpha                 Consumer
                        RM                                                                Regional              Consumer
                      RM                                        ALPHA                                          Consumer
                     Suppliers                                                           Warehouses
                    Suppliers


                                                     16
SCOR 8.0 & DCOR 1.0
     Changes
Introduction
•   Drivers for change
     – For the last 10 years, Supply Chain Council members have advanced the state
       of the art in supply chain management through the development and
       implementation of the SCOR Model.
     – Use of the SCOR Model in practice has generated requirements for change
         • The SCOR Model is being translated into multiple languages and is used as
            a foundation for process modeling projects, software and system solutions,
            as well as a framework for business decision making.
         • Adopters have identified opportunities to improve ease of use particularly in
            the areas of best practice, metrics, and inputs/outputs.
     – Over two years ago the Supply Chain Council recognized a growing demand by
       practitioners to replicate their success with SCOR in other process areas.
     – HP donated intellectual property to the SCC that extended the SCOR
       methodology to include product design and customer care. This IP provided the
       impetus for the Council’s work in DCOR.




                                      18
                            Technical Project Team Process
                                             Task                      Responsibility
                                      Concept Developed          TDSC, Member, Board, RSC

      Project Formation                Call for Vounteers                SCC Staff
                                        Kick-off Meeting              Volunteers, Staff
                                       Charter Proposed*                 Volunteers
    TDSC Charter Review –
         Go/No Go
                                        TDSC Liaison assigned       TDSC, Project Team             ‡
                                                                           TDSC
                               Charter Developed
                               Concepts Defined                        Project Team
                               Deliverables Defined
                                       Monthly Status Report †

                                          CTO Review‡                Project Team, CTO
      Project TeamWork
                                         TDSC Review*               TDSC, Project Team
                                Deliverable detail                  Repeat if above if necessary
                                development
                                     Proposal in SCOR or
                                      deliverable format            TDSC, Project Team
                                         TDSC Review*               Repeat if above if necessary
                                      SCOR change proposal
       TDSC Review –
      Approval/Rejection              Present to SCORboard
* Required review    † Per template
                                                    19
Technical Development Steering Committee

Name               Company
Dan Swartwood      Pragmatek
Lars Magnusson     Ericsson
William Garrison   Boeing
Jin Dong           IBM
John Nyere         Office of the United States Secretary of Defense
Alex Van           Flanders Institute for Logistics
Breedam
Paul Schiller      BP
Sergio Vacca       Bulgari
Nancy Craft        Volvo
Dan Peck           American Coin Merchandising
Tom Phelps         HP
Paul Janke         Nokia
                                   20
                           DCOR Principals
Name                Company
John Nyere,
Chair               United States Department of Defense
Nicolas Giraldo     Azurian
William Whiddon     Building Technology Incorporated
Ari Luis C. Halos   College of Engineering and Agro-Industrial Technology
Christie Lin        Corporate Synergy Development Center – Hong Kong
Michael Salhlin     Ericsson AB
Eberhard Frey       Hewlett Packard
Joseph Francis      PCOR
Caspar Hunsche      PCOR
Lars Magnusson      Ericsson
Ricardo Velez       Tampere University of Technology



                                      21
SCOR Principals
                  Name                     Company

Yasu Nishioka             Accenture
Kevin Mansfield           Air Products & Chemicals, Inc
Cheryl Harrity            APQC
Joe Faccenda              Aspentech
Steve Hensley             Blue Sky Logistics
Paul Tisley               BP
Jörg Nienhaus             Bosch
Steven Vanne              Caterpillar Logistics
Eric Cosman               The Dow Chemical Company
Russ Dickinson            The Dow Chemical Company
Stephen Graham            The Dow Chemical Company
Ray Walker                DuPont
Charles-Eric' Roussel     Essilor France

Charlie Gifford           GE/Fanuc
Georgeann Fears           IBM Benchmarking
                         22
SCOR Principals
                Name                      Company
  Chang-rui Ren              IBM China
  Luc Kremers                iCognitive
  Rob Hagan                  International Paper
  Jürgen Richert             J&M Management Consulting AG
  Taylor H. Wilkerson        LMI
  Shruti Mandana             PMG Benchmarking
  Monty Boyle                PriceWaterhouseCoopers
  Gary Cokins                SAS
  Keith Unger                Stone Technologies, Inc.
  Melinda Spring             Supply-Chain Council
  Arne Ziegenbein            ETH Zurich

  Scott Sealing              United Space Alliance
  Peter Baker                UTi
                        23
   SCOR Release Roadmap
Version 1.0
First version of the Model, Plan, Source, Make,
Deliver, metrics, best practice, and technology
  Version 2.0
  Model modified to reconcile distinctions
  between discrete and process industries
    Version 3.0                                          Version 3.1
    Model modified to enhance inputs and outputs         Restructured infrastructure / enable elements.
    and infrastructure elements. Specific reference      Restructuring of metrics begun – definitions of performance
    to software products removed.                        attributes developed. Language to support services as well
         Version 4.0                                     as tangible goods provided
         Restructuring of infrastructure enable elements
         completed. Returns introduced.
            Version 5.0
            Returns processes introduced. E-business practices
            updated Metrics re-structuring continued
                 Version 6.0                                    Version 6.1
                 Retail D4, revamped MRO, Make e-biz best       Updated Return, Best Practices
                 practices
                            Version 7.0 New Level 1 Metrics, New Best Practices, Addition of 2 appendices

    1997         1998         1999           2000          2001         2002         2003         2004      2005

                                                    24
    Integrated Business Reference Framework
                                         Business
                                           Plan


           Design                   Supply Chain                       Customer
            Plan                       Plan                              Plan

Research   Design   Integrate   Source     Make     Deliver   Relate      Sell    Price



           Amend                          Return                         Assist




         DCOR                         SCOR                               CCOR
       Version 1.0                  Version 8.0                        Version 1.0
       Spring 2006                  Spring 2006                        Spring 2007


                                         25
Design Philosophy
• Tight Bundle
   – Component Models work together to support analysis, measurement,
     and improvement of the end-to-end product life cycle
   – Models used together will better support analysis and measurement of
     complex activities
        • Time to Market
        • Time to Volume
• Loose Integration
   – Component Models are separable so organizations can use individual
     Models of interest without the others
   – Component Models can be separately improved based on advances in
     specific disciplines
• Design Requirements
   –   Hierarchical Process Structure
   –   Metrics linked to process and traceable to business objectives
   –   Best Practice linked to Level 3 process
   –   Reference Models linked by metrics and inputs and outputs




                                  26
    SCOR / DCOR Process Hierarchy
        Level

    #    Description                                                                Schematic                                                Comments                                  SCOR                 DCOR

                                                                                     Plan                                                                                                  Plan               Plan
1                                                              Source                   Make                     Deliver
                                                                                                                             Level 1 defines the scope and content for SCOR and           Source           Research
              Top Level                                                                                                      DCOR                                                          Make             Design
        (Process Types)                                                                                            Return                                                                 Deliver          Integrate
                                                                      Return
                                                                                                                             Here basis of competition performance targets are set
                                                                                                                                                                                          Return            Amend

2                                                                                                                            A company’s supply chain or design chain can be              Source            Amend
         Configuration                                                                                                       “configured-to- order” at Level 2.
            Level                                                                                                                                                                     Make to Stock     Product Fallout
                                                                                                                                                                                      Make to Order    Deficient Product
            (Process                                                                                                         Companies implement their operations strategy             Engineer to      Product Specs
           Categories)                                                                                                       through their unique configuration.                         Order
                                                                                                                                                                                      MTS Source (S1) Product Fallout (A1)
3           Process                                                                                                         Level 3 defines a company’s ability to compete
         Element Level                                                                                                      successfully in its chosen markets and consists of:
                                                                                                                                                                                         Schedule       Receive Issue
            (Decompose                                                                                                      • Process element definitions
             Processes)                                                                                                                                                                   Receive      Decompose Issue
                                                                                                                            • Process element information inputs and outputs
                                                                                                                                                                                           Verify         Distribute
                                                                                                                            • Process performance metrics
                                                                                                                               •
                       SCP3.1                                                                                                                                                            Transfer      Publish Advisory
                                                                                                                            • Best practices, where applicable
          Identify, Prioritize, and Aggregate
                                                                                                                                                                                     Authorize Payment
                                                                                                                            • System capabilities required to support best
              Production Requirements
                                                             SCP3.3                               SCP3.4



                        SCP3.2
                                                Balance Production Resources with
                                                    Production Requirements
                                                                                            Establish Detailed
                                                                                            Production Plans
                                                                                                                              practices
          Identify, Assess, and Aggregate
                                                                                                                               •
               Production Resources



                                                                                                                             Companies “fine tune” their Operations Strategy at
                                                                                                                             Level 3

                                                                                                                             Companies implement specific at this level
4        Implementation
              Level
             (Decompose                                                                                                      Level 4 defines practices to achieve competitive
               Process                                                                                                       advantage and to adapt to changing business
              Elements)                                                                                                      conditions




                                                                                                                                  27
Linking Performance Attributes and Level 1 Metrics

  Performance       Performance Attribute         SCOR Level 1 Metric   DCOR Level 1 Metric
     Attribute              Definition
 Supply Chain     The performance of the              Perfect Order
 Reliability      supply chain in                      Fulfillment
                  delivering: the correct
                  product, to the correct
                  place, at the correct time,
                  in the correct condition
                  and packaging, in the
                  correct quantity, with the
                  correct documentation,
                  to the correct customer.
 Design Chain     The performance of the                                Perfect Product Design
 Reliability      design chain in delivering:
                  the correct design, to the
                  correct place, at the correct
                  time, in the correct format
                  with the correct
                  documentation, to the
                  correct customer.
 Responsiveness   The speed at which a            Order Fulfillment     Design Chain Cycle Time
                  supply chain provides           Cycle Time
                  products to the customer.
 Supply Chain     The agility of a supply         Upside Supply Chain   Product Design Chain
 Flexibility      chain in responding to          Flexibility           Change Cycle Time
                  marketplace changes to          Upside Supply Chain
                  gain or maintain                Adaptability
                  competitive advantage.          Downside Supply
                                                  Chain Adaptability
 Supply Chain     The costs associated with       Supply Chain
 Costs            operating the supply chain.     Management Cost

                                                  Cost of Goods Sold

 Supply Chain     The effectiveness of an         Cash-to-Cash Cycle    Design Chain Fixed
 Asset            organization in managing        Time                  Assets Value
 Management       assets to support demand        Return on Supply
                  satisfaction. This includes     Chain Assets
                  the management of all           Return on Working
                  assets: fixed and working       Capital
                  capital.




                                         28
    Integrated Business Reference Framework -
    Linkages
                                            Business
                                              Plan

                                    Customer Requirements

                    Producability, Supportability, Transportability


           Design                       Supply Chain                           Customer
            Plan                           Plan                                  Plan



Research   Design    Integrate     Source     Make     Deliver        Relate     Sell     Price



           Amend                             Return                             Assist

                       BOM, Recipe, Specification


                                                 Product

                                            29
                                                                         Appendices
  Technical Roadmap
                                                               Process             Glossaries
                                                                Tables

                                                  Cut and Paste
                         Word                   1 Change reflected
                                                                           Model
                                                    in multiple           Hardcopy
                                                   documents
                                                 Minimal Change
                       PowerPoint                Documentation               PDF
                                                 Inconsistencies

 Company                                                                 Non-English
                                    March 2006
                                                                          Language
Contributions                    2 BPM Tools Used
                                 SCOR Rehost from
                                 flat files complete                         SW
                                    Short Term                            Providers
                                  DCOR merge to
                                   common dB
                          Model                                           Education
                                  Format and
                BPM      Database in Harcopy
                               Publish      BPM                            Material
                Tool                        Tool
                                 Configuration
                                      Control
                                                                             Web
                                                                           Browsers


                            30
SCOR Process Tables
       Process Element: Receive, Enter & Validate Order                 Process Element Number: D1.2
       Process Element Definition
       Receive orders from the customer and enter them into a company’s order processing system. Orders can
       be received through phone, fax, or electronic media. “Technically” examine orders to ensure an
       orderable configuration and provide accurate price. Check the customer’s credit. Optionally accept
       payment.
       Performance Attributes                        Metric
       Reliability                                   None Identified
       Responsiveness                                Receive, Enter and Validate Order Cycle Time
       Flexibility                                   Upside Deliver Flexibility
                                                     Downside Deliver Adaptability
                                                     Upside Deliver Adaptability
       Cost                                          Order cost / type of order
                                                     Order Entry and Maintenance Costs as % of (S+M+D)
                                                     cost
       Assets                                        Return on Supply Chain Assets

    Process Tables will remain as the core of the Model
       Best Practices
       Electronic Commerce (customer visibility
                                                     Features
                                                     EDI applications and integrated order management
       of stock availability, use of hand-held
                          content
       terminals for direct order entry,
       confirmation, credit approval), On-line
                           BUT
       stock check and reservation of inventory
                          None Identified
       Enable real-time visibility into backlog,
              The look and feel will change
       order status, shipments, scheduled material
       receipts, customer credit history, and
       current inventory positions
       Continuous Replenishment Programs;            Integrated demand/deployment planning to customer
       Vendor Managed Inventory, Telemetry to        location driven by POS; Customer movement data
       automatically communicate replenishment
       of chemicals
       Remote (sales, customers) order entry         None Identified
       capability
       Automatic Multi-level Credit Checking:        Integrated Order/Financial Management
       Dollar Limits; Days Sales Outstanding;
       Margin Testing
       Value Pricing based on “Cost to Serve”;       Activity Based Costing; Integrated Order Management by
       EDLP; Cost Plus Pricing                       Customer by Line Item

       Inputs                                        Plan         Source       Make    Deliver     Return
       (Customer) Customer Order
       (Customer) Deliver Contract Terms
       (Customer) Customer Replenish Signal

       Outputs                                       Plan         Source       Make    Deliver     Return



                                                     31
     SCOR Graphics
                                                                                              • (P2) Supply Plans     • (Customer) Customer
                                                                                              • (P3) Production         Order
                                 • Routing Guide                                                Plans                 • (Customer) Deliver
                                   (carrier)                                                  • (P4) Deliver Plans      Contract Terms
                                 • Rated Carrier                                              • (S) (M) (D) Inventory • (Customer) Customer
                                                                                                                                              • (Customer)
                                   Data (Carrier)                                             • (M) Scheduled           Replenish Signal        Inquiry
                                                                                                Output
                    D1.7               D1.6                D1.5                  D1.4               D1.3                    D1.2                   D1.1

                   Select                                                                         Reserve                 Receive,
                                                         Plan and                                                                                 Process
                Carriers and         Route                                   Consolidate       Inventory and              Enter &
                                                           Build                                                                                 Inquiry &
                   Rate            Shipments                                   Orders            Determine                Validate
                                                          Loads                                                                                    Quote
                 Shipments                                                                      Delivery Date              Order
                                 Activity graphics will remain as part of the core
              • Scheduled                                 • Daily Shipment • Delivery Commit • Validated Order
                Deliveries (P)                               content Date
                                                  Model Volume
                                                          BUT
                                           The look •and feel will change
                                                      (D)
                                                                      Consolidated                             • (D) Advanced
          • (S) (M) Scheduled
                                                                      Product                                    Ship Notice
            Receipts                 • (D) Inventory

               D1.8                  D1.9              D1.10               D1.11                D1.12             D1.13                D1.14              D1.15
 From                                                                      Load
Make or                                                                                        Ship              Receive
                                                                          Vehicle                                                      Install            Invoice
Source       Receive                Pick                Pack                                  Product            & Verify
                                                                         Generate                                                     Product
             Product               Product             Product                                                      at
                                                                         Ship Docs
                                                                                                                Customer
                                                                                                                   Site
          • (D) Inventory                                           • Shipping Documents                                             • Payment
                                                                      (carrier, cust, gov.)
                                                                    • Delivered End Items
                                                                      (cust)




                                                                        32
       Integrated Business Reference Framework
       Release Plan
2001    SCOR Version 4.1          DCOR Strawman (Version 0)   CCOR Strawman (Version 0)
                                  Posted                      Posted

2006    SCOR Version 8.0          DCOR Version 1.0            CCOR Strawman (Version 0)
         Best Practice Update      Best Practice Update        Validation
         Metrics Update            Metrics Update
         Restructure – dB Host     Input/Output Update
                                   Business Validation

        SCOR Version 9.0          DCOR Version 2.0            CCOR Version 1.0
         Best Practice Update      Best Practice Update        Best Practice Update
2007     Metrics Update            Metrics Update              Metrics Update
         Input/Output Update       Input/Output Update         Input/Output Update
         Risk Management           Integration                 Business Validation
         Integration                                           Integration


                    Integrated Business Framework Version 1.0
2008                 Metrics Best Practice  Inputs / Outputs
        SCOR Version 10.0        DCOR Version 3.0             CCOR Version 2.0
         Best Practice Update     Best Practice Update         Best Practice Update
         Metrics Update           Metrics Update               Metrics Update
                                  Input/Output Update          Input/Output Update
                                  Business Validation          Business Validation

                                       33
SCOR Version 8.0 Changes
 Model                    Changes                        Short Term                         Pending
                                                        Development
SCOR                 Metrics Restructure                                                     Metrics
Version
8.0          Working Assets Added as Planned                               Continue structure
             Cost roll-up formalized                                       Associate diagnostics
             Time roll-up formalized                                       Influencing metrics
             Component metrics associated with             Done            International
              Level 1 and Level 2
             Added definitions                                          Reconstitute Team – Begin plan and
                 Reformat of Metrics Appendix                            development for next SCOR revision
                        Best Practice                                                     Best Practice

             Added to appendix                                             Continue to add to appendix
                 o Postponement                                             Add new practices
                 o Available-to-Promise                                     Update existing practice
                 o Statistical Test Count (replacing                        Cull obsolete
                    Inventory Cycle Counting)
                 o Jointly Managed Information
                    (integrated with VMI)                   Done
                 o Six Sigma, Lean Methodology
                    and their convergence with
                    SCOR
                 Reformat of Metrics Appendix
                     Inputs and Outputs                                               Inputs and Outputs

             Added definitions                                             Continuity checks
             ISA 95 Alignment                                              Dependency checks
                                                       Some validation      ISA-95 “like” work in Deliver, Source,
                                                                             Return Processes




                                                       34
DCOR Version 1.0
   Model                     Changes                      Short Term                     Pending
                                                         Development
  DCOR              Validation and Structuring                                  Validation and Structuring
  Version
  1.0          Validate HP Strawman
               Populate and Develop Amend                             Reconstitute Team – Begin plan and
                                                                       development for next DCOR revision
                                                            Done



                              Metrics                                                     Metrics

               Cost roll-up formalized                                   Continue structure
               Time roll-up formalized                                   Associate diagnostics
               Component metrics associated with           Done          Influencing metrics
                Level 1 and Level 2                                       International
               Added definitions



                           Best Practice                                               Best Practice

               Added with definitions                                    Continue to add
                                                            Done              o Emphasize identification of
                                                                                  commercial BP
                                                                          Update existing practices




                       Inputs and Outputs                                           Inputs and Outputs

               Added with definitions                                    Continuity checks
                                                            Done          Dependency checks




                                                    35
Rehost and Model Integration
       Model             Changes                    Short Term              Pending
                                                   Development
     Model          BPM Tool chosen as            Export to        Configuration control
     Rehost          initial option for             neutral dB       Tool use by volunteers
                     maintenance interface          repository
                     with data                     Validate
                    SCOR Version 8.0
                                                    neutral dB
                     developed and
                     reviewed in BPM
                                                       o Vendors Validate practical use of
                     native format of BPM          Validate        DCOR
                     Tool 1 (migration path)        publishable
                    DCOR Version 1.0               document format
                     developed and                 Web browser
                     reviewed in BPM               Develop
                     native format of BPM           export
                     Tool 2                         protocols
     Integration    Structures and                                    Identification of cross-
                     renaming alignment                                 model metrics
                                                                       Identification of cross-
                                                                        model inputs and outputs
                                                                       Investigate and eliminate
                                                                        overlap in processes
                                                                            o ETO
                                                                            o ECO
                                                                       Align business plan
                                                                        processes




                                                                           CCOR?




                                               36
Training
•   SCOR Framework 8.0 – Rewrite
•   SCOR Implementation
•   SCOR Convergence – Six Sigma/Lean
•   SCOR Performance Based Logistics (PBL)
•   SCOR for Teams
•   DCOR




                            37
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