historical perspective of the scor model
DESCRIPTION
An unofficial and unauthorized overview of the SCOR Model from the first CTO of the Supply Chain Council. Why and how the SCOR model was constructed for supply chain management and how it was applied. For current and official documentation please visit - www.supply-chain.orgTRANSCRIPT
Supply Chain Operations Reference Model (SCOR)
What Were We Thinking?Historical Perspective of the SCC
Scott Stephens
http://measuredperformance.blogspot.comscottstephens@businessforerunners.com
2
• Back to Basics - Origins of the SCOR Model• Balancing Theory and Reality• Logistics, Supply Chains, and Value Chains• The Business Imperative
• SCOR Introduction• Consensus definitions, best practice, metrics• Model, Tables and Graphics
• Using the SCOR Model• Geographic Mapping• Process Mapping• Using Metrics to Link Performance to Processes and the Organization
• Case Studies• Q&A
The Roadmap
3
“…we must develop yardsticks [measurements] – with some way to distinguish between creative and parasitical overhead; the impact on productivity of time utilization, product mix, process mix, organization structure and the balance of activities.”
Peter F. Drucker – The Practice of Management (1954)
Supply Chains - Theory and Reality
PULLPUSH
4
Practitioners (business leaders) created the SCOR Model and the Supply Chain Council to improve competitiveness
Competitiveness improved in three ways:◦ Reducing costs◦ Increasing revenue◦ Improving the efficiency of asset management
SCOR and Business Competitiveness
5
Measuring the Performance of Suppy Chain Operations
“Among the interesting patterns discovered, the firms making greater progress have moved from a cost-only perspective to primary objectives that are more customer-focused. These goals were oriented around such things as faster and more personalized order fulfillment, shorter order fulfillment lead times, creating and delivering perfect orders, and enhanced cash-to-cash cycle and asset turns.” 2007 Annual Supply Chain Survey - SCMR
1990s
2004
2007
6
Firm Infrastructure
Human Resource Management
Technology Development
Procurement
InboundLogistics
OutboundLogistics
Marketing&
Sales
ServiceOperations
Margin
Margin
MarketingManagement
AdvertisingSales Force
AdministrationSales ForceOperations
Technical Literature
Promotions
Michael Porter’s Value Chain
7
Linking Measurements to Products, Processes, and Partners
Market
Prod
uct Li
ne B
Sup
plie
rs
Busin
ess U
nit
Busin
ess U
nit
Custo
mersResearch
Develop
BuySource
Make
Deliver
Sell
Support
Prod
uct L
ine
A
Prod
uct Li
ne D
Prod
uct Li
ne C
Transport
Revenue
Time to Market
Time to Volume
Cost
Service Level
Capacity
Inventory
Forecast
Warranty
Supply Chain Operations Reference-Model (SCOR)
Overview
9
Quantify the operational performance of similar companies and establish internal targets based on “best-in-class” results
Quantify the operational performance of similar companies and establish internal targets based on “best-in-class” results
Benchmarking
Characterize the management practices and software solutions that result in “best-in-class” performance
Characterize the management practices and software solutions that result in “best-in-class” performance
Best Practices Analysis
Process Reference Model
Capture the “as-is” state of a process and derive the desired “to-be” future state
Capture the “as-is” state of a process and derive the desired “to-be” future state
Business Process Reengineering
Capture the “as-is” state of a process and derive the desired “to-be” future state
Quantify the operational performance of similar companies and establish internal targets based on “best-in-class” results
Characterize the management practices and software solutions that result in “best-in-class” performance
Process reference models integrate the well-known concepts of business process reengineering, benchmarking, and process measurement into a cross-functional framework
What is a process reference model?
10
Supplier
Plan
Customer Customer’sCustomer
Suppliers’Supplier
Make DeliverSource Make DeliverMakeSourceDeliver SourceDeliver
Internal or External Internal or External
Your Company
Source
SCOR is structured around five distinct management processes
SCOR Model
Return Return ReturnReturn Return Return Return Return
Building Block Approach
Processes Metrics
Best Practice Technology
11
#
Level
Schematic Comments
1
2
3
4
ConfigurationLevel
(ProcessCategories)
ProcessElement Level
(DecomposeProcesses)
Plan
DeliverMakeSource
A company’s supply chain can be “configured-to- order” at Level 2 from approximately30 core “process categories.”
Companies implement their operations strategy through their unique supply chain configuration.
Companies “fine tune” their Operations Strategy at Level 3
Level 3 defines a company’s 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 chain management practices at this level
Level 4 defines practices to achieve competitive advantage and to adapt to changing business conditions
Su
pp
ly C
ha
in O
pe
ratio
ns
Re
fere
nce
mo
de
l
Top Level
(Process Types)
Level 1 defines the scope and content for the Supply Chain 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
SCOR Contains 3 Levels of Detail
ReturnReturn
12
Cu
sto
mer
s
Su
pp
lier
s
P1 Plan Supply Chain
Plan
P2 Plan Source P3 Plan Make P4 Plan Deliver
Source Make Deliver
S1 Source Stocked Products M1 Make-to-Stock
M2 Make-to-Order
M3 Engineer-to-Order
D1 Deliver Stocked Products
D2 Deliver MTO Products
D3 Deliver ETO Products
S2 Source MTO Products
S3 Source ETO Products
SCOR Processes Level 2
Return Source
P5 Plan Returns
Return Deliver
Enable
D4 Deliver Retail Products
13
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 Best Practices Features Electronic Commerce (customer visibility of stock availability, use of hand-held terminals for direct order entry, confirmation, credit approval), On-line stock check and reservation of inventory
EDI applications and integrated order management
Enable real-time visibility into backlog, order status, shipments, scheduled material receipts, customer credit history, and current inventory positions
None Identified
Continuous Replenishment Programs; Vendor Managed Inventory, Telemetry to automatically communicate replenishment of chemicals
Integrated demand/deployment planning to customer location driven by POS; Customer movement data
Remote (sales, customers) order entry capability
None Identified
Automatic Multi-level Credit Checking: Dollar Limits; Days Sales Outstanding; Margin Testing
Integrated Order/Financial Management
Value Pricing based on “Cost to Serve”; EDLP; Cost Plus Pricing
Activity Based Costing; Integrated Order Management by 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
SCOR Process Tables
14
SCOR Graphics
RouteShipments
D1.6
Plan and BuildLoads
D1.5
Reserve Inventory and
DetermineDelivery Date
D1.3
Receive, Enter & Validate Order
D1.2
Process Inquiry & Quote
D1.1
Receive Product
D1.8
Pick Product
D1.9
Load Vehicle Generate Ship
Docs
D1.11
Ship Product
D1.12
Receive & Verify at
Customer Site
D1.13
InstallProduct
D1.14
• Routing Guide (carrier)
• Rated Carrier Data (Carrier)
• Scheduled Deliveries (P)
• (P2) Supply Plans• (P3) Production
Plans• (P4) Deliver Plans
• (S) (M) (D) Inventory• (M) Scheduled
Output
• (Customer) Customer Order
• (Customer) Deliver Contract Terms
• (Customer) Customer Replenish Signal
• (S) (M) Scheduled Receipts
• Shipping Documents (carrier, cust, gov.)
• Delivered End Items (cust)
• (Customer) Inquiry
• Validated Order• Delivery Commit Date
Consolidate Orders
D1.4
• Daily Shipment Volume
Select Carriers and Rate
Shipments
D1.7
From Make or Source
• (D) Inventory
• (D) Inventory
• (D) Consolidated
Product• (D) Advanced
Ship Notice
• Payment
Pack Product
D1.10
Invoice
D1.15
15
SCOR Spans:◦ Order entry through paid invoice◦ Physical material transactions, financials, information
flow◦ Market interactions
From the understanding of aggregate demand to the fulfillment of each order
◦ Returns SCOR Considers but does not include process descriptions
and measurement for related activities including:◦ Sales and Marketing◦ Research and Development / Product Design◦ QA◦ It
SCOR Boundaries
16
Material Flow
SCOR Level 1
Operations Strategy
Analyze Basisof
Competition
SCOR Level 2
Configuresupply chain
AlignPerformance
Levels, Practices, and
Systems
Implementsupply chain
Processes and Systems
Implementsupply chain
Processes and Systems
SCOR Project Roadmap
• Competitive Performance Requirements
• Performance Metrics• Supply Chain Scorecard• Scorecard Gap Analysis• Project Plan
• AS IS Geographic Map
• AS IS Thread Diagram
• Design Specifications
• TO BE Thread Diagram
• TO BE Geographic Map
Informationand Work Flow
• AS IS Level 2, 3, and 4 Maps• Disconnects• Design Specifications• TO BE Level 2, 3, and 4
Maps
Develop, Test, and Roll
Out
• Organization• Technology• Process• People
SCOR Level 3
17
Mapping material flow
Latin AmericanSuppliers
Warehouse
Manufacturing
European SupplierC ustom er
C ustom er
C ustom er
C ustom erWarehouse
Warehouse
(S1, S2, M1, D1)(SR1,,DR1)
Other Suppliers(D1)
Warehouse
(D1)
(S1)(SR1,SR3)
(D2)(DR1)
(S1, D1)(SR1,DR1,DR3)
(S1, D1)(SR1, DR3)
(S1, D1)(SR1,DR1,DR3)
(S1, D1)(SR1,DR1,DR3)
(S1)(SR1,SR3)
(S1)(SR1,SR3)
(S1)(SR1,SR3)
18
Mapping the execution processes
S1
D1 S1
M2S2 D2
M1 D1 S1
S2
D1M1
European RM Supplier
Key Other RM
Suppliers
Alpha Regional
Warehouses
Alpha Regional
Warehouses
S1
DR1 SR1
DR1 SR1 DR1 SR1
DR3 SR3
RM Suppliers DistributorsALPHA
DR3 SR3
S1
AmericasDistributors
SR1
SR3
19
Identifying Plan Activities
Consumer
P2P2
P4
P4
P3P3
P4
P4
S1 D1 S1
P2
P2
P2P2
P3
P3
P4
P4
M2S2 D2
M1 D1 S1S2D1
M1
European RM Supplier
Key Other RM
Suppliers
S1
Alpha Regional
Warehouses
Alpha Regional
WarehousesRM
SuppliersDistributorsALPHA
P1P1
P1P1
P1P1
20
Performance Attribute
Performance Attribute Definition Level 1 Metric
Supply Chain Reliability
The performance of the supply chain in 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.
Perfect Order Fulfillment
Supply Chain Responsiveness
The speed at which a supply chain provides products to the customer.
Order Fulfillment Cycle Time
Supply Chain Flexibility
The agility of a supply chain in responding to marketplace changes to gain or maintain competitive advantage.
Upside Supply Chain Flexibility Upside Supply Chain Adaptability Downside Supply Chain Adaptability
Supply Chain Costs
The costs associated with operating the supply chain.
Supply Chain Management Cost Cost of Goods Sold
Supply Chain Asset Management
The effectiveness of an organization in managing assets to support demand satisfaction. This includes the management of all assets: fixed and working capital.
Cash-to-Cash Cycle Time
Return on Supply Chain Fixed Assets
Linking Supply Chain Performance Attributes and Level 1 Metrics
21
Balancing the Dimensions
Flexibility
Responsiveness
Reliability
Cost
Assets
Product Introduction – Early Adopters
FlexibilityCost
Assets
Mature Product – “Cash Cow”
FlexibilityCost
Assets
Mature Product – End of Life
FlexibilityCost
Assets
New Product – Market Share
Reliability Reliability
Reliability
Responsiveness
ResponsivenessResponsiveness
22
Supply Chain Scorecard & Gap Analysis
50%
$30M Revenue
$30M Indirect Cost
35 days
97 days
0%
63%
Supply Chain SCORcard
Overview Metrics SCOR Level 1 Metrics Actual Parity Advantage Superior Value from ImprovementsDelivery Performance to Commit Date 85% 90% 95%
Fill Rates 94% 96% 98%
EX
TE
RN
AL
SupplyChain
Reliability
Perfect Order Fulfillment 80% 85% 90%
Order Fulfillment Lead times 7 days 5 days 3 days
Flexibility
Responsiveness
Production Flexibility 30 days 25 days 20 days
Total SCM Management Cost 19% 13% 8%
3%
INT
ER
NA
L 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
AssetsCash-to-Cash Cycle Time
196 days 80 days 46 days 28 days
Net Asset Turns (Working
Capital) 2.2 turns 8 turns 12 turns 19 turns NA
Supply Chain Response Time 82 days 55 days 13 days
45 days
$7 M Capital Charge
Key enabler to cost and asset improvements
$30M Revenue
Performance Versus Competitive Population
23
S1 D1 S1
M2S2 D2
M1 D1 S1
S2
D1M1
S1
Cycle Time
ScheduleAchievement
Perfect OrderFulfillment
DeliveryPerformance
Supplier on time delivery
Perfect Order Fulfillment
Supplier on time delivery
Perfect Order Fulfillment
On Time
In Full
Docs
Damage
On Time
In Full
Docs
Damage
RevenueAccounts Receivable
Cash Flow
Decomposing Metrics
European RM Supplier
Key Other RM
Suppliers
Alpha Regional
Warehouses
RM Suppliers ALPHA Consumers
24
S1 D1 S1
M2S2 D2
M1 D1 S1
S2
D1M1
S1
Cycle Time
ScheduleAchievement
Perfect OrderFulfillment
DeliveryPerformance
Supplier on time delivery
Perfect Order Fulfillment
Supplier on time delivery
Perfect Order Fulfillment
On Time
In Full
Docs
Damage
On Time
In Full
Docs
Damage
RevenueAccounts Receivable
Cash Flow
Perfect Order Fulfillment Actual - 85%
Perfect OrderFulfillmentGoal – 95%
ScheduleAchievementActual – 95%
Perfect Order Fulfillment
Actual – 90%
DeliveryPerformance Actual – 99%
Supplier on time delivery
Actual – 85%
MetricsConflict
Inventory
Under-performance• Process• Systems
Under-performance• Process• Systems
Performance Measurement
Alpha Regional
WarehousesALPHA Consumers
RM Suppliers
European RM Supplier
Key Other RM
Suppliers
25
SCOR Implementations (Practitioner)◦ Vary in scope and objective
Green Field – Establishing a new supply chain Distribution analysis – Implementing distribution
strategy Planning – Improving planning processes Supply Chain Failure Analysis Information Technology
SCOR Implementation (Academia)◦ Curriculum◦ Research Projects
SCOR Implementation (Consultants) SCOR Implementation (Government)
SCOR Implementation
26
Information Systems Inputs and Outputs
Move t oTruck
Mfg Pro
Legend
Plan Infrastructure
P0. 1Perform Make/ Buy
Deci si on Maki ng
P0. 2Reconfi gure t he
Suppl y Chai n
P0. 3Perform Long Term
Capaci t y and ResourcePl anni ng
P0. 4Perform Busi ness
Pl anni ng
P0. 5Manage Product Li ne
Pl ans
P0. 6Manage Pl anni ng Dat a
P0. 7Perform Suppl y Chai n
Bench Marki ng
P0. 8Manage Busi ness Rul es
Plan
Source I nfras truc ture
S0. 1Est abl i sh New
Mat eri al
S0. 2Est abl i sh New
Source
S0. 3Manage Suppl i er
Agreement s
S0. 4Mai nt ai n Source
Pl anni ng and Execut i onDat a
S0. 5Manage Incomi ng
Frei ght
S0. 6Manage Suppl i er
Cert i fi cat i on
S0. 7Manage Sourci ng
Busi ness Rul es
S0. 8Aut hori ze Suppl i er
Payment
S0. 9Det ermi ne Emergi ng
Suppl i er Technol ogi es
S0. 10Manage Mat eri al
Invent ory
S2. 1Schedul e Mat eri al
Del i veri es
S2. 2Recei ve & Veri fy
Mat eri al
S2. 3TransferMat eri al
P2. 4Est abl i sh Det ai l ed
Sourci ng Pl ans
Source
E xecution M 3 "M ake to Order (D is cre te M anufactur ing)"
M anufac tur ing I nfras truc ture
M0. 1Creat e/ Mange Si t e
Reci pes/ Process Fl ows
M0. 2Manage Engi neeri ng/
Reci pe Changes
M0. 3Mai nt ai n Equi pment /
Faci l i t i es
M0. 4Cont rol Product i on
Processes
M0. 5Manage Product i on
Mat eri al s
M0. 6Moni t or Product i on
St at us
M0. 7Moni t or Equi pment
St at us
M0. 8Manage Product i on
Qual i t y Pol i ci es
M0. 9Manage Short -t erm
Capaci t y
M0. 10Manufact uri ng Trai ni ng
M3. 1Schedul e Manufact uri ng
Act i vi t i es
M3. 2Issue Mat eri al
M3. 3Manufact ure and Test
M3. 4Package
M3. 5St age
Product
P3. 1Ident i fy & Aggregat e
Product i on Rqmt s
P3. 2Ident . & Aggregat e
Product i on Resources
P3. 3Bal ance Resources Wi t h
Product i on Rqmt s
P3. 4Est abl i sh Det ai l edProduct i on Pl ans
MakeDeliver Infrastructure
D0 .1Ma n a g e Pro d u c t a n d
Pro c e s s Da ta
D0 .2Ma n a g e Ch a n n e lBu s i n e s s Ru l e s
D0 .3Ma n a g e Ord e r Ru l e s
D0 .4Ma n a g e De l i v e r
In v e n to ri e s
D0 .5Ma n a g e W a re h o u s e
Ne two rk
D0 .6Ma n a g e
W a re h o u s e s
D0 .7Ma n a g e De l i v e ry
Qu a l i ty
D0 .8Ma n a g e De l i v e ry
Co n tra c ts
D0 .9Es ta b l i s h Ne w De l i v e ry
Ch a n n e l s
D0 .1 0Ma n a g e Ou tb o u n d
T ra n s p o rta t i o n
D4. 1. 1Aggregate
Requirements
D4. 4. 1Establ i sh
Detai l ed Plans
D4. 1Ident i fy, Pri ori t i ze and
Aggregat e Del i veryRequi rement s
D4. 2Ident i fy, Assess andAggregat e Del i very
Resources
D4. 3Bal ance Del i very
Resources wi t h Del i veryRequi rement s
D4. 4Est abl i sh Det ai l ed
Del i very Pl ans
D4. 3. 1Balance
Resources wi thRequirements
D4. 2. 1AggregateResources
Deliver
Fixed Wireless Operations ManagementRevis ion Y A pr il 5, 1999
S2. 2. 1Stockroom and
Receiving Process
D0. 4. 5Consignment
Fi ni shed Goods
S0. 10. 6Cycl e Count
S2. 1. 2Value Added
Di stri butor (VAD)
S0. 1. 1Part Creation
Process forPurchased
Components
S0. 8. 1AccountsPayabl e
S0. 10. 2Stock Room
Inventory Mgmt.
S0. 10. 3Suppl i er
Inventory
M0. 5. 2PCA Fl oor
Stock
M0. 1. 6Methods
Di stri buti on
P0. 5. 4Manage Fi el d
Configurations
M0. 3. 1Faci l i ti es
Mai ntenance
M0. 3. 2Mai ntai n &
Cal i brateEqui pment
M0. 7. 2Asset Tracking
M0. 6. 3BOM Variance at
Backfl ush
M0. 8. 4Operati ons Qual i ty
Management
M0. 8. 5Measuri ng of Base
Faul tl ess Instal l s
M0. 6. 2Labor Tracking
M0. 7. 1Moni tor Prod.
Equi pment
M0. 8. 1CLCA Process
M0. 8. 2Non Conforming
Material
M0. 8. 3Recal l ed Product
M0. 9. 1Short Term
Capaci ty Plan
P0. 9. 2Determi ni ng
Staffi ngRequirements
M0. 10. 1Techni calTrai ni ng
M0. 10. 2Team Bui l di ng
P3. 1. 1Volume
Depl oyment
P3. 2. 1Producti on
ManagementP3. 3. 1
Create MPS
P3. 4. 1Create MRP OrderRecommendations
M3. 1. 1Producti onSchedul i ng
M3. 2. 1Ki tti ng and
Issuing Materi al
M3. 3. 2Base Assembl y and
Test
M3. 3. 3RU Assembl y
M3. 3. 10PCA Test
M3. 3. 12RU Test
M3. 4. 1Package
Menlo
M3. 5. 1Stage
Product
P0. 3. 1Long Term
Capaci ty
D0. 1. 5Product Barcode
Del i very
P0. 3. 2Operati ons Staffing
P0. 3. 3Suppl i er Capaci ty
Pl an
P0. 4. 1Goal s / Strategy
S2. 1. 4External Drop Shi p
Process
P0. 4. 3Standard Cost
P0. 5. 1Manage Fi el d
Spares Plan 10533
P0. 5. 2Manufacturi ng
Input to SRP
P0. 5. 3Manufacturi ng
Input to the PRP
P0. 8. 1Values andPrinci pl es
D0. 4. 1Fi el d Inv. Cycl e
Count -
D0. 3. 1CLE Provi sioning
D0. 4. 4Fi ni shed Goods
D0. 4. 3Fi el d Inventori es
D0. 6. 1Consignment
Warehouse Process
D0. 9. 1New Ci ty
Introducti on
D0. 10. 1OutboundLogi sti cs
D0. 10. 2In Transi t Tracki ng
S2. 2. 4Fi el d Di screpant
Receipts
D0. 4. 2E&O Material
Processi ng
P2. 1 Pri ori t i ze and Aggregat e
Mat eri al Req.
P2. 2Assess and Aggregat e
Resources
P2. 3Bal ance Resources Wi t hMat eri al Requi rement s
D2. 7Sel ect Carri ers
& Rat e Shi pment s
D2. 6Rout e Shi pment s
D2. 5Pl an & Bui l d Loads
D2. 4Consol i dat e
Orders
D2. 3Reserve Resources and
Set Del i very Dat es
D2. 2Val i dat e
Order
D2. 1Process Inqui ry & Quot e
D2. 8Pi ck St aged
Product
D2. 9Load Vehi cl e
Generat e Shi p Docs &Shi p
D2. 10Recei ve & Veri fy
Product at Cust omer Si t e
D2. 11Test & Inst al l
Product
D2. 8. 1Pi ck Staged
Product
D2. 9. 1Load Vehi cl e Gen.Ship Docs & Ship
D2. 10. 1Receive & Veri fy
Product atWarehouses
D2. 11. 2Test & Instal l
Bases
D2. 12Invoi ce & Recei ve
Payment
D2. 12. 1Transfer Asset to
Instal l ed BaseAccount
Deliver D 2 "De liver M ake to Order Produc ts
P0. 5. 5Fi el d ChangeManagement
M3. 1. 2Producti on
Schedule Review
D0. 3. 2Base Stati onProvi sioni ng
S2. 1. 3AutoRepl eni sh
Process
M3. 5. 2Stage Product
Outsi deWarehouses
D2. 10. 2Receive & Veri fy
Product atCustomer Si te
S2. 2. 5Receive and
Veri fy Material
Planning P3 "Plan M ake"Planning P4 "Plan De liver"
Source M ake to Order M ater ialPlanning P2 "Plan Source"
S0. 5. 2Inbound Frei ght
Management
S0. 9. 1Strategy
Development
D0. 3. 4Fi el d Returns
S2. 3. 3Program
Parts
P0. 2. 1Reconfigure the
Supply Chain
P0. 7. 1Perform Supply
Chai n BenchMarki ng
M3. 1. 3Modi fy Schedul e
and Execute
M3. 1. 4Del i ver Reports to
Customers
D0. 7. 1Manage Del i very
Qual i ty
D0. 1. 3Outbound EDI
Process
0.Wi l l Not Be Used
This Year and Wi l lNot Be Documented
Unti l Needed
1.No Process Ownerand the Process i sNot Documented
2.Has a Process
Owner, But theProcess i s NotDocumented
3.Process owner i sfi ni shed wri ting
document.Document i s
awai ti ngManufacturi ng
Engi neering review.
Fi rmPurchase
OrdersMfg Pro
Pl annedOrderReport
Mfg Pro
Pl annedWork
OrdersMfg Pro
Rel easedWork
OrdersMfg Pro
Mat eri alAl l ocat edMfg Pro
ForecastLoadedMfg Pro
Sal esOrders
Mfg Pro
Mat eri alPi ck Li st sMfg Pro
WIP Mat eri al Moves and Qual i t y Dat aSyst emMi t ron
Backfl ushAft er TestMfg Pro
MoveMat eri alt o Fl oorMfg Pro
Move t oFi ni shed
GoodsMfg Pro
Mi n MaxMat eri al
InputMfg Pro
Move t oFi ni shed
GoodsMfg Pro
Bi l l ofLadi ng &Mani festMfg Pro
Mat eri alRecei ved
E Mai l
BaseSt at i on
Commi ssi onedMfg Pro
D2. 11. 1Test and Instal l
CLEs
CLEsInst al l edMfg Pro
D2. 5. 1Pl an, Bui l d, and Consol idate Loads
Kevin MonahanMenlo Logi sti cs
D2. 7. 1Outbound Logi sti cs
Kevin Monahan
M0. 5. 6Overal l Material
Fl ow
M0. 4. 4ESD Process and
Audi t
P0. 4. 2Budget Planning
P0. 8. 2Operati ons
Pol i ci es
4.Revi ew by
Manufacturi ngEngi neering
compl ete anddocument sent out
for RACI approvalof final document
Invent oryTransact i on
Mfg Pro
Invent oryTransact i on
Mfg Pro
Product Development and ConfigurationManagement
Metaphase ProductStructure and
Desi gn
Hardware DesignRelease
Software DesignRelease
Doc. 10888 (C0. 1. 0)Product Release and Change Process
SoftwareArchive
DocumentArchive
M0. 2. 1Manage
Engi neeringChange
Implementation
M0. 1. 1Create
Manufacturi ngBi l l of Materi al
Set ChangeEffect i vi t i es
Mfg Pro
ProgramManagement
Service Real i zati onProcess
Product Real i zati onProcess
P0. 6. 1Manage Pl anning
Data
Sal esOrders
Mfg Pro
D2. 3. 1Sales Order Process
Kevin Monahan
M0. 5. 3System Assembl y &
Test Floor StockS0. 1. 5Qual i fi ed Part
Process
S0. 3. 1Suppl i er PCN
Procedure
P3. 3. 2Revi ew and
Balance MPS
M0. 8. 6Measuri ng of RUFaul tl ess Instal l s
P2. 4. 1 Provi sioni ng
M0. 8. 7Out of Box Audi t
D0. 1. 1Manage Indi cative
Data
Doc 10407 (C0. 1. 1)Product Numbering
DDTS
DocumentRelease
S0. 6. 3Part Preference
M3. 3. 5Internal Return
Process
M3. 3. 6Producti on
Operati ons ReturnCenter
M3. 3. 1PCB Assembly
P0. 1. 2Perform Make/ Buy
P0. 5. 6NPI Process 10093
P0. 6. 2Pl anner Code
Assi gnment andMai ntenance
S0. 1. 4 - RSuppl i er Sel ectionand qual i fi cati on
S0. 9. 2Technology
ManagementTeams (TMT)
P0. 4. 4Product CostManagement
S0. 6. 4Suppl i er Preference
5.Document acceptedby RACI team and
basel i ned
ATT Wireless – Fixed Wireless Operations
27
Suppliers Supplier
Suppliers Assemble/ Package Distribution Centers Geo Ports of Entry
Americas--->
Europe--->
Asia--->
Intel As-Is Modeled in Easy SCOR
28
Sales
Marketin
g
Planning
Executive
Logistics
Gold'n Plump Supply ChainPlanning Process Map
Manufacturin
g
Live
Supplier
Process Inquiry &Quote
Receive, Enter, &Validate Order
Reserve Inventory &
Determine Delivery Date
Consolidate Orders Plan & Build Loads Route Shipments Select Carriers & RateShipments
Receive Product Pick Product Load Vehicle, GenerateShip Docs & Ship
Invoice & ReceivePayment
0-7 day ScheduleManufacturing Activities
Issue Material
Manufactcure & Test Package Stage ProductRelease Product to
Deliver
0-7 day ScheduleMaterial Deliveries
Receive & VerifyMaterial Transfer Material
0-7 day ScheduleMaterial Deliveries
Plan Supply Chain (P1)30-90 AggregateDemandSupplyBalance
Plan Source (P2)0-30 MaterialRequirementsResourcesBalance
LeadershipReview
Plan Make (P3)0-30 ProductionRequirementsResourcesBalance
Plan Deliver (P4)0-30 FulfillmentRequirmentsResourcesBalance
0-30 MaterialRequirements
Plan
0-30 day MasterProductionSchedule
0-30 dayInventory
Plan
Strategy, Goals,Annual Business
Plan
Updated AnnualBusiness
Plan w/ action plan
DailyOrders
Actual OrderHistory
30-90 demandforecast & supply
plan
0-30 dayExpectedReceipts
0-30 dayOutsource
Needs
Sales
Marketin
g
Planning
Executive
Logistics
Gold'n Plump Supply ChainPlanning Process Map
Manufacturin
g
Live
Supplier
Process Inquiry &Quote
Receive, Enter, &Validate Order
Reserve Inventory &
Determine Delivery Date
Consolidate Orders Plan & Build Loads Route Shipments Select Carriers & RateShipments
Receive Product Pick Product Load Vehicle, GenerateShip Docs & Ship
Invoice & ReceivePayment
0-7 day ScheduleManufacturing Activities
Issue Material
Manufactcure & Test Package Stage ProductRelease Product to
Deliver
0-7 day ScheduleMaterial Deliveries
Receive & VerifyMaterial Transfer Material
0-7 day ScheduleMaterial Deliveries
Plan Supply Chain (P1)30-90 AggregateDemandSupplyBalance
Plan Source (P2)0-30 MaterialRequirementsResourcesBalance
LeadershipReview
Plan Make (P3)0-30 ProductionRequirementsResourcesBalance
Plan Deliver (P4)0-30 FulfillmentRequirmentsResourcesBalance
0-30 MaterialRequirements
Plan
0-30 day MasterProductionSchedule
0-30 dayInventory
Plan
Strategy, Goals,Annual Business
Plan
Updated AnnualBusiness
Plan w/ action plan
DailyOrders
Actual OrderHistory
30-90 demandforecast & supply
plan
0-30 dayExpectedReceipts
0-30 dayOutsource
Needs
Gold’n Plump Supply Chain Planning
29
F404 Engine HP Rotor Assembly
SR2DR2
NASCV
NADEP NAVICPDSC
S1
S2(carcass)
M2 D2 S1 D1 S1
M2
ServiceableRotorAssy
UnserviceableRotor Assy
S1 D1D2
Self Locking Nut
S2(carcass)
Unserviced Engine Module
D1SvcEngine
Fairchild Fasteners
164 Days
32 Days 98 days
60% ofRequireme
nt Accepted,
90% of that Completed
on time
77%SMA
25%On-
Time
F/A18
Serviceable Modules 188% of
Requirement, Svc Engines
112% of Requirement
30
Consumer Foods◦ Project Time (Start to Finish) – 3 months◦ Investment - $50,000 US◦ 1st Year Return - $4,300,000 US
Electronics◦ Project Time (Start to Finish) – 6 months◦ Investment - $3-5 Million US◦ Projected Return on Investment - $ 230 Million US
Software and Planning◦ SAP bases APO key performance indicators (KPIs) on
SCOR Model Aerospace and Defense
◦ SCOR Benchmarking and use of SCOR metrics to specify performance criteria and provide basis for contracts / purchase orders
SCOR Projects – A Wide Range of AdoptionSCOR Projects – A Wide Range of Adoption
31
Questions?
[email protected] http://measuredperformance.blogspot.com Supply Chain Council - www.supply-chain.org
32
Version 1.0First version of the Model, Plan, Source, Make, Deliver, metrics, best practice, and technology
SCOR Release Roadmap
1997 20031998 1999 20012000 2002 2004
Version 2.0Model modified to reconcile distinctions between discrete and process industries
Version 3.0Model modified to enhance inputs and outputs and infrastructure elements. Specific reference to software products removed.
Version 3.1Restructured infrastructure / enable elements. Restructuring of metrics begun – definitions of performance attributes developed. Language to support services as well as tangible goods providedVersion 4.0
Restructuring of infrastructure enable elements completed. Returns introduced.
Version 5.0Returns processes introduced. E-business practices updated Metrics re-structuring continued
Version 6.0 Retail D4, revamped MRO, Make e-biz best practices
Version 7.0 New Level 1 Metrics, New Best Practices, Addition of 2 appendices
Version 6.1 Updated Return, Best Practices
2005
33
Design Chain Operations Reference Model (DCOR) – Version 0
PP PlanDesign Chain
PR Plan Research PD PlanDesign
PI PlanIntegrate
PA PlanAmend
EP EnablePlan
ER Enable Research
ED Enable Design
EI Enable Integrate
EA Enable Amend
PP.1 PR.1 PD.1 PI.1 PA.1 EP.1 ER.1 ED.1 EI.1 EA.1
Gather Design Chain Requirements
Gather Research Requirements
Gather Design Requirements
Gather Integrate Requirements
Gather Amend Requirements
Manage Plan Business Rules
Manage Research Business Rules
Manage Design Business Rules
Manage Integrate Business Rules
Manage Amend Business Rules
PP.2 PR.2 PD.2 PI.2 PA.2 EP.2 ER.2 ED.2 EI.2 EA.2
Gather Design Chain Resources
Gather Research Resources
Gather Design Resources
Gather Integrate Resources
Gather Amend Resources
Manage Design Chain Performance
Manage Research Performance
Manage Design Performance
Manage Integrate Performance
Manage Amend Performance
PP.3 PR.3 PD.3 PI.3 PA.3 EP.3 ER.3 ED.3 EI.3 EA.3
Balance DC* Requirements w/Resources
Balance Research Requirements w/Resources
Balance Design Requirements w/Resources
Balance Integrate Requirements w/Resources
Balance Amend Requirements w/Resources
Manage Plan Information
Manage Research Information
Manage Design Information
Manage Integrate Information
Manage Amend Information
PP.4 PR.4 PD.4 PI.4 PA.4 EP.4 ER.4 ED.4 EI.4 EA.4
Establish Design Chain Plan
Establish Research Plan
Establish Design Plan
Establish Integrate Plan
Establish Amend Plan
Manage Product Life Cycle
Manage Product Life Cycle
Manage Product Life Cycle
Manage Product Life Cycle
Manage Product Life Cycle
EP.5 ER.5 ED.5 EI.5 EA.5
Manage Design Chain Assets
Manage Research Capital Assets
Manage Design Capital Assets
Manage Integrate Capital Assets
Manage Amend Capital Assets
EP.6 ER.6 ED.6 EI.6 EA.6
Manage Design Chain Knowledge Transfer
Manage Research Knowledge Transfer
Manage Design Knowledge Transfer
Manage Integrate Knowledge Transfer
Manage Amend Knowledge Transfer
EP.7 ER.7 ED.7 EI.7 EA.7
Manage Design Chain Configuration
Manage Research Network
Manage Design Network
Manage Integrate Network
Manage Amend Network
EP.8 ER.8 ED.8 EI.8 EA.8
Manage Plan Regulatory Compliance
Manage Research Regulatory Compliance
Manage Design Regulatory Compliance
Manage Integrate Regulatory Compliance
Manage Amend Regulatory Compliance
EP.9 ED.9
Align Design Plan with Financial Plan
Manage Intellectual Property
* SeC = Selling Chain
PLAN ENABLE
* DC = Design Chain
© Hewlett-Packard Company