best practice adoption of scor apics canadian and northeast district joint meeting ottawa, canada...

Best Practice Adoption of SCOR

APICS Canadian and Northeast District Joint MeetingOttawa, CanadaSeptember 18 and 19, 2015

An APICS Supply Chain Council Executive Briefing

2 © APICS Confidential and Proprietary

Discussion Topics

APICS Supply Chain Council

What is SCOR?

Best Practice Corporate Adoption


Introduction

Delegate from 3M and then Imation for SCOR 1.0 in 1996

Expertise in Manufacturing and Planning including Center of Excellence Leadership for Sales and Operations Planning

Authored, Supply Chain Excellence: A Handbook for Dramatic Improvement Using the SCOR Model, 3rd Edition

First Supply Chain Council non-staff Certified Instructor and now SCOR-P and CSCP

From 2002 to 2014, Helped 30+ Companies Analyze $13.5B USD Deriving $200M USD in Operating Income Improvements

Have volunteered with the SCC since the beginning

Industry experience includes Chemical, Retail, Food and Grocery, Electronics, Durable Goods, Consumer Packaged Goods, and Aerospace and Defense

Peter Bolstorff, CSCP, SCOR-PExecutive Director | APICS Supply Chain Council

About the APICS Supply Chain Council


Purpose

APICS Develops People

People Improve Supply Chains Supply

Chains Improve Economies

Improved Economies Improve Lives

APICS SCC Develops Organizations

Organizations Improve Supply Chains


New Value Proposition

APICS SCCAPICS

Training, certification and

networking

Research, benchmarking and

frameworks

APICS Value Proposition

APICS delivers a total individual and corporate value proposition.

We help individuals achieve career development goals.We help corporations achieve strategic supply chain goals.

Individuals Corporate, Public Sector and Academic

Institutions


APICS SCC

The legacy SCC integrated with the former APICS Foundation to form the new APICS SCC. The new organization continues the tradition of funding scholarships and student programs; still operates as a global, non-profit entity; and actively manages the Supply Chain Operations Reference (SCOR) model.

Programs and Services Plossl Dissertation, Scholars Program, Student Case Competition

Research Projects, Corporate Advisory Board, Executive Summit

SCORmark™ Benchmark

Publications, Resource Library, and Case Studies

Other Value Chain Frameworks including M4SC, DCOR®, CCOR®, and PLCOR®

Training is now available through APICS

8 Confidential © 2013 APICS

Affiliate Snapshot 2015

404

AFFILIATES

CORPORATE AFFILIATES

ACADEMICAFFILIATES

PUBLIC SECTORAFFILIATES

6091253

253

1417

131 64

12

RK

COUNTRY #

1 United States 146

2 Germany 32

3 China 31

4 Switzerland 16

5 South Africa 15

6 Netherlands 14

7 United Kingdom

13

8 Canada 10

9 France 10

10 Sweden 10

TOP 10 COUNTRIES

What is SCOR?


Other APICS SCC Frameworks

Custom

er processesSup

plie

r pr

oces

ses

Product & PortfolioManagement PLCOR™

Supply Chain SCOR®

Product & Process Design

DCOR™

Sales & Support

CCOR™

Visual • 11 © APICS Confidential and Proprietary

About SCOR: A Process Framework

Combining four techniques into a single integrate approach

Business Process Improvement

Performance Benchmarking

Best Practices Analysis

Organizational Design

Capture the ‘as-is’ business activity and design the future ‘to-be’ state

Quantify relative performance of similar supply chains and establish internal targets

Identify practicesand software solutions that result in significantly better performance

Assess skills and performance needs and align staff and staffing needs to internal targets

Process Reference Framework

Processes Performance (metrics)

Practices People (skills)


SCOR® Processes

Supplier CustomerSuppliers’Supplier

Source

Internal or External

Your Organization

Return

Deliver MakeSource

Return

Plan

Deliver

Return

Source

Return

MakeSource

Return

Plan

Deliver

Return

DeliverMake

Plan

Return Return

Customers’Customer

Enable

Internal or External

EnableEnable

SCOR MODEL


SCOR® Metrics

Attribute SCOR 11.0 Metrics

Reliability RL.1.1 Perfect Order Fulfillment

Responsiveness RS.1.1 Order Fulfillment Cycle Time

Agility AG.1.1 Upside Supply Chain Flexibility

AG.1.2 Supply Chain Upside Adaptability

AG.1.3 Downside Supply Chain Adaptability

AG.1.4 Overall Value At Risk (VAR)

Cost CO.1.1 Total Cost to Serve

Asset Management Efficiency

AM.1.1 Cash-to-Cash Cycle Time

AM.1.2 Return on Supply Chain Fixed Assets


SCOR® Decomposition

Level Description Examples CommentsCurrent scope of SCOR

1 Process Types (Scope)

Plan, Source, Make, Deliver, Return and Enable

Level-1 defines scope and content of a supply chain. At level-1 the basis-of-competition performance targets for a supply chain are set.

2 Process Categories (Configuration)

Make-to-Stock, Make-to-Order, Engineer-to-Order Defective Products, MRO Products, Excess Products

Level-2 defines the operations strategy. At level-2 the process capabilities for a supply chain are set. (Make-to-Stock, Make-to-Order)

3 Process Elements (Steps)

• Schedule Deliveries• Receive Product• Verify Product• Transfer Product• Authorize Payment

Level-3 defines the configuration of individual processes. At level-3 the ability to execute is set. At level-3 the focus is on the right:• Processes• Inputs and Outputs• Practices• Technology capabilities• Skills of staff

Future scope 4 Activities (Implementation)

Industry-, company-, location-, and/or technology specific steps

Level-4 describes the activities performed within the supply chain. Companies implement industry-, company-, and/or location-specific processes and practices to achieve required performance.


SCOR Reference Sources

Complete SCOR Model Reference sourcebooks. Two volumes containing the complete SCOR reference framework

A quick reference guide providing a detailed summary of SCOR Processes, Metrics, Practices, and People on a single easy-to-use card

An easy to access and use application for mobile devices available through iTunes, App Store, and Android Store – Search: APICS SCOR

Best Practice SCOR Adoption


Top Motivations to Use SCOR®


Live Poll Question 1


Live Poll Question 2


SCOR Improvement Program Racetrack

C: Configure the Supply Chain

S:Set the Scope

O:Optimize Projects

Begin Next

Program

Rollout Approval

Preliminary ProjectPortfolio

Business Context Summary

SCOR ExecutionSCOR Deliverables

MetricSelection

SCORmarkBenchmarkingCompetitive

Requirements

GapAnalysis

Pre-SCOR Program Steps

StakeholderSupport

SCOR Education

Identify Organization

Identify Motivation Initiate Projects

Test, Pilot, Roll-outStrategicBusinessSummary

Document the Supply

Chain

InitialData

Review

Opportunity Analysis

Create Project

Portfolio

Link Gaps to Projects

Document Initial

Projects

ProjectKickoffs

BenefitSummaryR:

Ready forImplementation

SCORcard

PrioritizeProjects

Create SCOR Level 4 Processes

SCORWorkshop

DataSelection

MetricDefinition

ProgramKickoff

IdentifyMotivation

SupplyChain

DefinitionMatrix

CompetitiveRequirements

ThreadDiagram

StapleYourself

Level 3 ProcessDiagram

Improvement Program Charter

Confirm Program

Scope

GeographicMap

IndustryComparison


SCOR Implementation Benefits

Average Operating Income improvement of 3% to sales (high 4.5% - low 1.5%)

Typical inventory turn improvements of 20% Delivery reliability improvement of 25% 20% improvement in flexibility 30% faster system implementations with 30% more

functionality Continuous improvement portfolios refreshed at a value

of 0.5% Mitigation of costs associated with risk management

Source: APICS Supply Chain Council 2002 to 2014

Project Organization

Supply Chain Definition

Project Charter

SCORmark

Key Deliverables Discussion


SCOR Improvement Program Organization

Detail ProjectSubprojects

Executive team

Executivesponsor

Teamleader

Other teams

Program team

Improvement team

Operationsmanagement

Program stakeholders

Customers

Functionalmanagers

Otherstakeholders

Channelpartners

Technologyteam

Supply chainteam

Financialteam

Program champion


Customers: GE GB SEU

Mp3 Inc.product groups

Germany Belgium Nether-lands

England and

Ireland

France Italy Spain

Mp3 players 300* 125 95 265 110 75

Phones 200 95 planned 250 185 55

PCs 35 21

Criteria: geographical region, country, products

Supply Chain Definition Matrix: Example

* Sales expressed in millions

Adapted from Supply Chain Excellence by Peter Bolstorff and Robert Rosenbaum ©2012 Peter Bolstorff and Robert Rosenbaum, AMACOM books, division American Management Association International, New York, NY, p. 47.


Improvement Program Charter Deliverable

Section Subsection Discussion

IntroductionPurpose, table of contents, control/maintenance Improvement program charter overview

Program Definition

Scope Which supply chains selected

Business objectives Performance metrics

Improvement program objectives Supply chain performance targets

Program organizationDefinition of program team and shareholders

Program

Contents

Methodology Five-phased SCOR racetrack

Schedule Timeline, detailed activities, meetings

Roles Program activity responsibles

Deliverables and milestones Detailed deliverables and milestones

Risks and dependencies Critical risks and avoidance strategies

Benefits Measures of success, analysis


Measuring Supply Chain Excellence

Attributes Metrics Parity Advantage Superior Target Level Performance

Your Organization

Gap to Target

Customer Facing Metrics

Reliability Perfect Order Fulfillment (%) 77.5% 85.6% 93.7% Advantage 69.2% 16.4%

Responsiveness

Order Fulfillment Cycle Time (days) 9.1 6.5 3.9 Parity 7.1 –

Agility

Supply Chain Flexibility (days) 45.0 33.0 21.0

Advantage

15.0 –

Supply Chain Adaptability (%) 35.5% 51.3% 72.0% 10.0% 41.3%

Internal Facing Metrics

CostTotal Supply Chain

Management Cost % Revenue

8.7% 5.6% 2.4% Superior 8.1% -5.7%

Asset Management

Efficiency

Cash to Cash Cycle Time (days) 55.4 30.5 5.5 Parity 160.5 -105.1

APICS Education


APICS Development Model

Gartner Maturity Stage Knowledge and Skills Process-Practice-

Performance-People

Orchestration SCOR-P and M4SC Leadership Series

Supplier’s Supplier to Customer’s Customer Supply Chain Community

CollaborationCSCP – Certified Supply Chain Professional

Supplier to Customer Single Instance

Anticipating

CPIM – Certified in Production and Inventory Management

Internal Process

ReactingPrinciples of Operations Management

Single Process


APICS Principles Program

APICS Principles of Operations Management

Modular courseware system

Foundational knowledge spanning major operations management activities

5 customizable modules; each includes 9 sessions and two exams

Classroom-based, instructor-led learning approach

Suitable for certificate programs


APICS CPIM Designation

APICS Certified in Production and Inventory Management

Preferred by employers

100,000+ individuals certified

Self-study and group study programs

Online and classroom courses

5 study modules and exams

Content reviewed annually


APICS CSCP Designation

APICS Certified Supply Chain Professional

Preferred by employers

17,000+ individuals certified

Self-study and group study programs

Online and classroom courses

3 study modules; 1 exam

Content reviewed annually


SCOR-P Designation

SCOR® Professional

Introduction to SCOR® model, problem solving, practical application and exercises

3-day workshop; 1 exam

Classroom-based, instructor-led learning approach

Suitable for certificate programs

Available both publicly and in-house


Managing for Supply Chain Leadership Series

Align Strategy

mAS.01 Business Plan Analysis

mAS.02 Supply Chain Segmentation

mAS.03 Supply Chain Prioritization

mAS.04 Competitive Landscape Analysis

mAS.05 Supply Chain Organizational Analysis

mAS.06 Supply Chain Strategy Analysis

mAS.07 Supply Chain Network Definition

mAS.08 Scorecard Definition

mAS.09 Supply Chain Data Collection

mAS.10 Supply Chain Benchmarking

mAS.11 Metrics Organizational Analysis

mAS.12 Supply Chain Gap Analysis


Visit APICS SCC online

Thank You!

best practice adoption of scor apics canadian and northeast district joint meeting ottawa, canada...

Documents

apics confidential

supply chain excellence

supply chain organizations

supply chain knowledge

proprietaryscript apics

apics foundation

strategic supply chain

new apics scc