Download - 4. SCOR Aug2010
-
8/7/2019 4. SCOR Aug2010
1/23
SCOR Model(Supply Chain Operations Reference)
Aug 2010
-
8/7/2019 4. SCOR Aug2010
2/23
SCOR - Developed by Supply Chain Council (SCC)
SCC: Organized in 1996 by Global management-consulting firm, Pittiglio Rabin Todd &
McGrath (PRTM) and
Market research firm, Advanced Manufacturing Research (AMR) inCambridge, Massachusetts.
Started with 69 voluntary companies
SCC Objective To develop a standard supply-chain Process Reference Model
enabling effective communication among the supply chainpartners, by Using standard terminology to better communicate and
learn the supply chain issues Using standard metrics to compare and measure their
performances
Supply Chain Council & SCOR
-
8/7/2019 4. SCOR Aug2010
3/23
The SCC is an independent, not-for-profit, globalcorporation with membership open to any organization...
About 1000 Company Members
Cross-industry representation
The Supply-Chain Council (SCC) has developedand endorsed the Supply Chain OperationsReference-model (SCOR)
Process Reference Model
Cross-industry standard for supply chainmanagement
Supply Chain Council & SCOR
-
8/7/2019 4. SCOR Aug2010
4/23
What is aProcess Reference Model?
SCOR describes processes not functions. Inother words, the Model focuses on the activityinvolved, not the person or organizational
element that performs the activity.
Process Reference Model integrates the well-known concepts of business process
reengineering, benchmarking, and processmeasurement (metrics) into a cross-functionalframework
-
8/7/2019 4. SCOR Aug2010
5/23
Quantify theoperationalperformance ofsimilar companiesand establishinternal targetsbased on best-in-
class results
Benchmarking
Characterize themanagementpractices andsoftware solutionsthat result in best-in-classperformance
Best PracticesAnalysis
Process ReferenceModel
Capture the as-isstate of a processand derive thedesired to-befuture state
Business ProcessReengineering
Capture the as-is state
of a process and derivethe desired to-be futurestate
Quantify the operationalperformance of similarcompanies and establishinternal targets based onbest-in-class results
Characterize themanagementpractices andsoftware solutionsthat result in best-in-class performance
SCOR - Process Reference Model
Integrates Business Process Reengineering, Benchmarking, and
Process Measurement into a cross-functional framework.
-
8/7/2019 4. SCOR Aug2010
6/23
Personal Computer E.g.
ACMETaiwan (D)
DesktopProduction
(S, M, D)
LaptopDistributor
(S, D)
Semiconductor
Distributor(S, D)
LaptopProduction(S, M , D)
DesktopRetailer(S, D)
LaptopRetailers
(S, D)
SemiconductorManufacturer
(S, M, D)
MonitorProduction (S, M, D)
Plan
Source Make Deliver
Original SCOR
Processes
-
8/7/2019 4. SCOR Aug2010
7/23
EvolvedSCOR Processes
Supplier
Plan
Customer CustomersCustomer
Suppliers
Supplier
Deliver SourceMakeMake DeliverMakeSourceDeliver
Internal or External Internal or External
Your Company
Source
SCOR Model
Return Return Return
Return Return
Return Return
Building Block Approach
Source
Return
Deliver
Best Practice
MetricsProcesses
Plan-Source-Make-Deliver-Return provide the structure of the SCOR-model
-
8/7/2019 4. SCOR Aug2010
8/23
SCOR Process Modeling
S1
D1
M2S2 D2
M1 D1 S1
S2
D1M1
EuropeanSupplier
Key OtherRM
Suppliers
Warehouse
S1
RM Supplier Distributors
ManufacturingCompany
-
8/7/2019 4. SCOR Aug2010
9/23
SCOR Processes Plan (Processes that balance aggregate demand and supply to develop a course of
action which best meets sourcing, production and delivery requirements)
Balance resources with requirements
Establish/communicate plans for the whole supply chain
Source (Processes that procure goods and services to meet planned oractual demand)
Schedule deliveries (receive, verify, transfer)
Make (Processes that transform product to a finished state to meet planned or actualdemand) Schedule production
Deliver (Processes that provide finished goods and services to meet planned or
actual demand, typically including order management, transportation management, anddistribution management) Warehouse management from receiving and picking product to load and ship
product.
Return (Processes associated with returning or receiving returned products) Manage Return business rules
Plan-Source-Make-Deliver-Return
-
8/7/2019 4. SCOR Aug2010
10/23
Plan
Demand/supply planning
aggregate and prioritize demandrequirements, plan inventory,
plan distribution requirements Manage Planning
infrastructure
supply-chain configuration, long-
term capacity and resourceplanning, business planning,product phase-in/phase-out,end-of-life management
Plan-Source-Make-Deliver-Return
-
8/7/2019 4. SCOR Aug2010
11/23
Source
Sourcing/materialacquisition
Obtain, receive, inspect,
hold, andissue material
Manage sourcinginfrastructure
Vendor certification,sourcing quality, in-boundfreight, vendor contracts,initiate vendor payments
Plan-Source-Make-Deliver-Return
-
8/7/2019 4. SCOR Aug2010
12/23
Make
Production execution
Request and receivematerial, manufacture (repair)
and test product, package,hold and / or release product
Manage makeinfrastructure
Engineering changes,facilities and equipment,production status, productionquality, shop scheduling
*Source: The Supply Chain Council
Plan-Source-Make-Deliver-Return
-
8/7/2019 4. SCOR Aug2010
13/23
Deliver
Order management
Warehouse management
Transportation and
installation management
Manage deliverinfrastructure
Manage channel businessrules, order rules, managedeliver inventories, managedeliver quality
Plan-Source-Make-Deliver-Return
-
8/7/2019 4. SCOR Aug2010
14/23
Return
Handling of returns
Return Source Activities associated with returning
material to a supplier including thecommunication with the trading partner,the generation of documentation, and the
physical return / shipment of product.
Return Deliver Activities associated with receiving and
disposing of returned material from acustomer including the communicationwith the trading partner, the generation ofdocumentation, and the physical return /receipt and dispositioning of product.
Plan-Source-Make-Deliver-Return
Reverse Logistics
-
8/7/2019 4. SCOR Aug2010
15/23
SCOR is a hierarchical model
SCOR
-
8/7/2019 4. SCOR Aug2010
16/23
#
Level
Schematic Comments
1
2
3
4
ConfigurationLevel
(ProcessCategories)
ProcessElement Level
(DecomposeProcesses)
Plan
DeliverMakeSource
A companys supply chain can be configured-to-order at Level 2 from approximately30 core process
categories.
Companies implement their operations strategythrough their unique supply chain configuration.
Companies fine tune their Operations Strategy at
Level 3
Level 3 defines a companys ability to compete
successfully in its chosen markets and consists of:
Process element definitions Process element information inputs and outputs
Process performance metrics
Best practices, where applicable System capabilities required to support best
practices
ImplementationLevel
(DecomposeProcess
Elements)
Companies implement specific supply chainmanagement practices at this level
Level 4 defines practices to achieve competitiveadvantage and to adapt to changing businessconditions
Su
pplyChainOperations
Referencemodel
Top Level
(Process Types)
Level 1 defines the scope and content for the SupplyChain Operations Reference model
Here basis of competition performance targets are set
Notin
Scope
Description
Balance Production Resources withProduction Requirements
Establish DetailedProduction Plans
Identify, Prioritize, and AggregateProduction Requirements
Identify, Assess, and AggregateProduction Resources
P3.1
P3.3 P3.4
P3.2
ReturnReturn
SCOR Levels
-
8/7/2019 4. SCOR Aug2010
17/23
SCOR Level 1 Process
-
8/7/2019 4. SCOR Aug2010
18/23
SCOR Level 2 Process
Identify, Prioritize and Aggregate Supply Chain Requirements
Identify, Prioritize and Aggregate Supply-Chain Resources
Balance Supply Chain Resources with SC Requirements
Establish & Communicate Supply-Chain Plans
-
8/7/2019 4. SCOR Aug2010
19/23
SCOR Level 2
-
8/7/2019 4. SCOR Aug2010
20/23
SCOR - Level 3
-
8/7/2019 4. SCOR Aug2010
21/23
Supply Chain Operations Reference
Model (SCOR) The Primary Use of SCOR:
To describe, measure and evaluate supply chain configurations.
SCOR contains: Standard descriptions of management processes
A framework of relationships among the standard processes Standard metrics to measure process performance
Management practices that produce best-in-class performance
Enables the companies to:Evaluate and compare their performances with other companieseffectively
Identify and pursue specific competitive advantagesIdentify software tools best suited to their specific processrequirements
-
8/7/2019 4. SCOR Aug2010
22/23
SCOR Boundaries
SCOR applies to
All supplier / customer interactions Order entry through paid invoice
All physical material transactions From your suppliers supplier to your customers
customer, including equipment, supplies, spare parts,
bulk product, software, etc.
All market interactions
From the understanding of aggregate demand to thefulfillment of each order
Returns
-
8/7/2019 4. SCOR Aug2010
23/23
SCOR Boundaries
SCOR does not include:
Sales administration processes
Technology development processes
Product and process design and developmentprocesses
SCOR assumes but does not explicitly
address Training, Quality, Information Technology (IT)
administration (non-SCM)