overview presentation supply chain operations reference-model (scor)

June 2003June 2003 11

Overview PresentationOverview Presentation

Supply Chain Supply Chain Operations Reference-modelOperations Reference-model

(SCOR) (SCOR)

SCOR OverviewJuly 2004 2

• The SCC is an independent, not-for-profit, global corporation with The SCC is an independent, not-for-profit, global corporation with membership open to all companies and organizations interested in membership open to all companies and organizations interested in applying and advancing state-of-the-art supply chain management applying and advancing state-of-the-art supply chain management systems and practices.systems and practices.

• Over 800 Company Members Over 800 Company Members

• Cross-industry representation Cross-industry representation

• Chapters in Australia/New Zealand, Brazil, Europe, Japan, Chapters in Australia/New Zealand, Brazil, Europe, Japan, North America, Southern Africa, and South East Asia with North America, Southern Africa, and South East Asia with petitions for additional chapters pending.petitions for additional chapters pending.

•The Supply-Chain Council (SCC) has developed and endorsed the The Supply-Chain Council (SCC) has developed and endorsed the Supply Chain Operations Reference-model (SCOR) as the cross-Supply Chain Operations Reference-model (SCOR) as the cross-industry standard for supply chain managementindustry standard for supply chain management


SCC Organization - Chapters and StaffingSCC Organization - Chapters and Staffing

Australia/New Zealand Chapter Australia/New Zealand Chapter Sydney, AustraliaSydney, Australia

Australia/New Zealand Chapter Australia/New Zealand Chapter Sydney, AustraliaSydney, Australia

South East Asia Chapter South East Asia Chapter SingaporeSingapore

Venture Inc.Venture Inc.

South East Asia Chapter South East Asia Chapter SingaporeSingapore

Venture Inc.Venture Inc.

Japan Chapter Japan Chapter Tokyo, JapanTokyo, Japan

NECNEC

Japan Chapter Japan Chapter Tokyo, JapanTokyo, Japan

NECNEC

SCC Global Headquarters SCC Global Headquarters Pittsburgh, Pennsylvania, Pittsburgh, Pennsylvania,

USAUSA

DisneyDisney

SCC Global Headquarters SCC Global Headquarters Pittsburgh, Pennsylvania, Pittsburgh, Pennsylvania,

USAUSA

DisneyDisney

EuropeEurope

Oslo, NorwayOslo, Norway

Modus MediaModus Media

EuropeEurope

Oslo, NorwayOslo, Norway

Modus MediaModus Media

Southern Africa Southern Africa Johannesburg, South AfricaJohannesburg, South Africa

UTiUTi

Southern Africa Southern Africa Johannesburg, South AfricaJohannesburg, South Africa

UTiUTi

North America North America ChapterChapter

North America North America ChapterChapter

Brazil ChapterBrazil Chapter

Effective 9/1/03Effective 9/1/03

Brazil ChapterBrazil Chapter

Effective 9/1/03Effective 9/1/03


SCC Leadership TeamsSCC Leadership Teams

Australia/New ZealandOwens Global Logistics – C

Health Purchasing Victoria – VCOracle

RMIT UniversityMI Services

BHPEAN Australia

EuropeDiversey Lever– CSiemens AG – VC

Euro-ChainBomardier Tansportation

BASF AGBorealisSAP AG

Oracle EMEARhodia

Swiss Federal Institute of Technology

EDS UK and SA

South East AsiaVemture Corporation – C

Phillips CFT – VCModus Media

DeloitteSingapore Institute of Mfg. Technology

SCM InstituteAutoscan TechnologyPolyolefin Company

Asia Pacific BreweriesI2 Technologies

iPerintis Sdn Bhd

JapanNEC – C

JBC Create – VCMitsui Global Strategic Studies

Olympus OpticalEXA

Chubu Electric PowerJ.D. EdwardsNihon Unisys

HitachiHokkaido University

Matsushita Electric IndustrialYamaha

Toray Systems Center

Board of DirectorsDisney - CEaton - VC

DaimlerChrysler MOPARBusiness Process Training Center Europe

PeopleSoftI2 Technologies

Georgia Institute of TechnologyIBM

SCE LimitedICI Supply ChainPhillips Lighting

PRTMMcCormick & Company, Inc.

HPNorth America

Toys R Us - CRaytheon

IBM Adjoined Consulting

AviconBayer Chemicals

The Boeing CompanyCenter for Supply Chain Research / Penn State

Air Products and ChemicalsRaytheon

SAP

Elections PendingSouth Africa

Brazil

China


MembershipMembership

Member by TypeMember by Type Members by RegionMembers by Region

800+ SCC members, 800+ SCC members, CompositionComposition

• 40%: Practitioners40%: Practitioners• 25%: Enabling Technology Providers25%: Enabling Technology Providers• 20%: Consultants20%: Consultants• 15%: Universities, Associations, Government 15%: Universities, Associations, Government

OrganizationsOrganizations

Europe

Japan

SEA

ANZ

USA/Canada/Mex

ROW

SAfrica

Practitioners

Software Vendors

Consultants

Non-Profits


Current Technical ProjectsCurrent Technical Projects

C - Tom Phelps – HPV – Paul Schiller – BP Amoco

C- Lt Col Scott Koster (USMC)

Returns Returns

C- Michael Memmel - Siemens

MetricsMetricsMRO ReturnsMRO Returns

C- Joe Burak (Boeing)

SCOR Technical DevelopmentSteering Committee

Best PracticeBest Practice

C- Paul Janke (Nokia)

Supply Chain Operations Reference-Supply Chain Operations Reference-Model (SCOR) OverviewModel (SCOR) Overview


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


Best Practices Analysis

Process Reference Model

Capture the “as-is” state of a process and derive the desired “to-be” future state


Business Process Reengineering





What is a process reference model?What is a process reference model?

Process reference models integrate the well-known Process reference models integrate the well-known concepts of business process reengineering, concepts of business process reengineering, benchmarking, and process measurement into a cross-benchmarking, and process measurement into a cross-functional frameworkfunctional framework


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 SCOR is structured around five distinct management processesmanagement processes

SCOR Model SCOR Model

Return Return ReturnReturn Return Return Return Return

Building Block Approach

Processes Metrics

Best Practice Technology


Cu

sto

mer

sC

ust

om

ers

Su

pp

lier

sS

up

pli

ers

P1 Plan Supply ChainP1 Plan Supply ChainPlanPlan

P2 Plan SourceP2 Plan Source P3 Plan MakeP3 Plan Make P4 Plan DeliverP4 Plan Deliver

SourceSource MakeMake DeliverDeliver

S1 Source Stocked ProductsS1 Source Stocked Products M1 Make-to-StockM1 Make-to-Stock

M2 Make-to-OrderM2 Make-to-Order

M3 Engineer-to-OrderM3 Engineer-to-Order

D1 Deliver Stocked ProductsD1 Deliver Stocked Products

D2 Deliver MTO ProductsD2 Deliver MTO Products

D3 Deliver ETO ProductsD3 Deliver ETO Products

S2 Source MTO ProductsS2 Source MTO Products

S3 Source ETO ProductsS3 Source ETO Products

Supply-Chain Operations Reference-model Supply-Chain Operations Reference-model (SCOR) 6.1 - Processes(SCOR) 6.1 - Processes

Return Return SourceSource

P5 Plan ReturnsP5 Plan Returns

Return Return DeliverDeliver

EnableEnable

D4 Deliver Retail ProductsD4 Deliver Retail Products


SCOR BoundariesSCOR Boundaries

SCOR Spans:SCOR Spans:• All supplier / customer interactionsAll supplier / customer interactions

Order entry through paid invoiceOrder entry through paid invoice• All physical material transactionsAll physical material transactions

From your supplier’s supplier to your customer’s From your supplier’s supplier to your customer’s customer, including equipment, supplies, spare parts, customer, including equipment, supplies, spare parts, bulk product, software, etc.bulk product, software, etc.

• All market interactionsAll market interactions From the understanding of aggregate demand to the From the understanding of aggregate demand to the

fulfillment of each orderfulfillment of each order• ReturnsReturns


SCOR Boundaries (cont’d)SCOR Boundaries (cont’d)

SCOR does not include:SCOR does not include:

• Sales administration processesSales administration processes

• Technology development processesTechnology development processes

• Product and process design and development processesProduct and process design and development processes

• Some post-delivery technical support processesSome post-delivery technical support processes

SCOR assumes but does not explicitly addressSCOR assumes but does not explicitly address

• TrainingTraining

• QualityQuality

• Information Technology (IT) administration (non-SCM)Information Technology (IT) administration (non-SCM)


Material FlowMaterial Flow

SCOR Level 1

Operations Operations StrategyStrategy

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 RoadmapSCOR 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

InformationInformationand Work Flowand Work Flow

•AS IS Level 2, 3, and 4 Maps•Disconnects•Design Specifications•TO BE Level 2, 3, and 4 Maps

Develop, Develop, Test, and Roll Test, and Roll

OutOut

•Organization•Technology•Process•People

SCOR Level 3


Mapping material flowMapping material flow

Latin AmericanLatin AmericanSuppliersSuppliers

(D1)(D1)

WarehouseWarehouse

Other SuppliersOther Suppliers(D1)(D1)

ManufacturingManufacturing

European SupplierEuropean Supplier(S1)(S1)

(SR1,SR3)(SR1,SR3)

C ustom er

C ustom er

C ustom er

C ustom er

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

(D2)(D2)(DR1)(DR1)

WarehouseWarehouse

WarehouseWarehouse

WarehouseWarehouse

(S1, D1)(S1, D1)(SR1, DR3)(SR1, DR3)



(S1)(S1)(SR1,SR3)(SR1,SR3)

(S1)(S1)(SR1,SR3)(SR1,SR3)

(S1)(S1)(SR1,SR3)(SR1,SR3)

(S1, S2, M1, D1)(S1, S2, M1, D1)(SR1,,DR1)(SR1,,DR1)


Mapping the execution processesMapping the execution processes

S1S1

D1D1 S1S1

M2M2S2S2 D2D2

M1M1 D1D1 S1S1

S2S2

D1D1M1M1

European European RM SupplierRM Supplier


Key Other Key Other RM RM

SuppliersSuppliers


SuppliersSuppliers

Alpha Alpha RegionalRegional

WarehousesWarehouses

S1S1

DR1DR1 SR1SR1

DR1DR1 SR1SR1 DR1DR1 SR1SR1

DR3DR3 SR3SR3

RM RM SuppliersSuppliers

DistributorsDistributorsALPHAALPHA

DR3DR3 SR3SR3

S1S1

AmericasDistributors

AmericasDistributors

SR1SR1

SR3SR3


Identifying Plan ActivitiesIdentifying Plan Activities

Consumer

P2P2P2P2

PP44

PP44

P3P3P3P3

PP44

PP44

S1S1 D1D1 S1S1

PP22

PP22

P2P2P2P2

PP33

PP33

PP44

PP44

M2M2S2S2 D2D2

M1M1 D1 S1S1S2S2D1D1

M1M1




SuppliersSuppliers


SuppliersSuppliers

S1S1


WarehousesWarehousesRM RM

SuppliersSuppliersDistributorsDistributorsALPHAALPHA

P1P1P1P1

P1P1P1P1

P1P1P1P1


Performance Attribute

Performance Attribute Definition Level 1 Metric

Supply Chain Delivery 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.

Delivery Performance

Fill Rates

Perfect Order Fulfillment

Supply Chain Responsiveness

The velocity at which a at which a supply chain provides products to the customer.

Order Fulfillment Lead Times

Supply Chain Flexibility

The agility of a supply chain in responding to marketplace changes to gain or maintain competitive advantage.

Supply Chain Response Time

Production Flexibility

Supply Chain Costs The costs associated with operating the supply chain.

Cost of Goods Sold

Total Supply Chain Management Costs

Value-Added Productivity

Warranty / Returns Processing Costs

Supply Chain Asset Management Efficiency

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

Inventory Days of Supply

Asset Turns

Linking Supply Chain Performance Linking Supply Chain Performance Attributes and Level 1 MetricsAttributes and Level 1 Metrics


Customer-Facing

SCOR Level 1supply chain Management

Assets

Supply Chain Reliability

Cost Responsiveness

Delivery performance Fill rate Perfect order fulfillment Order fulfillment lead time Supply Chain Response Time Production flexibility Total SCM management cost Cost of Goods Sold Value-added productivity Warranty cost or returns processing cost Cash-to-cash cycle time Inventory days of supply Asset turns

Internal-Facing

Level 1 Performance MetricsLevel 1 Performance Metrics

Flexibility


Supply Chain Scorecard & Gap AnalysisSupply Chain Scorecard & Gap Analysis

50%

$30M Revenue

$30M Indirect Cost

35 days

97 days

0%

63%

Supply Chain SCORcard Performance Versus Competitive Population

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

SupplySupplyChainChainReliabilityReliability

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


S1S1 D1D1 S1S1

M2M2S2S2 D2D2

M1M1 D1D1 S1S1

S2S2

D1D1M1M1

S1S1

Cycle TimeCycle Time

ScheduleScheduleAchievementAchievement

Perfect OrderPerfect OrderFulfillmentFulfillment

DeliveryDeliveryPerformancePerformance

SupplierSupplier on time deliveryon time delivery

Perfect OrderPerfect Order FulfillmentFulfillment



On TimeOn Time

In FullIn Full

DocsDocs

DamageDamage

On TimeOn Time

In FullIn Full

DocsDocs

DamageDamage

RevenueRevenueAccounts ReceivableAccounts Receivable

Cash FlowCash Flow

Decomposing MetricsDecomposing Metrics




SuppliersSuppliers


SuppliersSuppliers

ConsumeConsumerr



SuppliersSuppliersConsumerConsumerALPHAALPHA


ConsumeConsumerr

RM RM SuppliersSuppliers

S1S1 D1D1 S1S1

M2M2S2S2 D2D2

M1M1 D1D1 S1S1

S2S2

D1D1M1M1

S1S1

Cycle TimeCycle Time

ScheduleScheduleAchievementAchievement

Perfect OrderPerfect OrderFulfillmentFulfillment

DeliveryDeliveryPerformancePerformance





On TimeOn Time

In FullIn Full

DocsDocs

DamageDamage

On TimeOn Time

In FullIn Full

DocsDocs

DamageDamage

RevenueRevenueAccounts ReceivableAccounts Receivable

Cash FlowCash Flow

Perfect OrderPerfect Order Fulfillment Fulfillment Actual - 85%Actual - 85%

Perfect OrderPerfect OrderFulfillmentFulfillmentGoal – 95%Goal – 95%

ScheduleScheduleAchievementAchievementActual – 95%Actual – 95%

Perfect OrderPerfect Order Fulfillment Fulfillment

Actual – 90%Actual – 90%

DeliveryDeliveryPerformance Performance Actual – 99%Actual – 99%


Actual – 85%Actual – 85%

MetricsMetricsConflictConflict

InventoryInventory

Under-performanceUnder-performance•ProcessProcess•SystemsSystems

Under-performanceUnder-performance•ProcessProcess•SystemsSystems

Performance MeasurementPerformance Measurement

ConsumeConsumerr



SuppliersSuppliersConsumerConsumerALPHAALPHA




SuppliersSuppliers


SuppliersSuppliers


Implementation IssuesImplementation Issues SCOR ImplementationsSCOR Implementations

• Vary in scope and objectiveVary in scope and objective Green FieldGreen Field Distribution analysisDistribution analysis Planning ImprovementsPlanning Improvements Change Management / COTS-Consultant SelectionChange Management / COTS-Consultant Selection

How to conduct an ROI evaluationHow to conduct an ROI evaluation Senior Management support vs. Middle Manager resistanceSenior Management support vs. Middle Manager resistance Project timelinesProject timelines

• BenchmarkingBenchmarking• ImplementationImplementation

ToolsTools

SCOR Overview

July 2004 23Information Systems Inputs and Outputs

Move toTruck

Mfg Pro

Legend

Plan Infrastructure

P0. 1Perform Make/ Buy

Deci si on Making

P0. 2Reconfigure t he

Supply Chain

P0. 3Perform Long Term

Capaci ty and ResourcePl anni ng

P0. 4Perform Business

Pl anni ng

P0. 5Manage Product Line

Pl ans

P0. 6Manage Pl anning Data

P0. 7Perform Supply Chain

Bench Marki ng

P0. 8Manage Busi ness Rules

Plan

Source I nfras tructure

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 ionData

S0. 5Manage Incomi ng

Frei ght

S0. 6Manage Suppl i er

Cert i fi cat i on

S0. 7Manage Sourcing

Busi ness Rul es

S0. 8Authori ze Suppl i er

Payment

S0. 9Determi ne Emerging

Suppl i er Technol ogi es

S0. 10Manage Mat eri al

Invent ory

S2. 1Schedule Materi al

Del i veri es

S2. 2Receive & Veri fy

Mat eri al

S2. 3TransferMat eri al

P2. 4Est abl i sh Detai l ed

Sourci ng Pl ans

Source

E xecution M 3 "M ake to Order (D is cre te M anufactur ing)"

M anufactur ing I nfras tructure

M0. 1Creat e/Mange Si t e

Reci pes/ Process Flows

M0. 2Manage Engi neeri ng/

Reci pe Changes

M0. 3Mai nt ai n Equipment /

Faci l i t i es

M0. 4Cont rol Product ion

Processes

M0. 5Manage Product ion

Mat eri al s

M0. 6Moni t or Product i on

St at us

M0. 7Moni t or Equipment

St at us

M0. 8Manage Product ion

Qual i t y Pol i ci es

M0. 9Manage Short -t erm

Capaci ty

M0. 10Manufacturi ng Training

M3. 1Schedule Manufacturi ng

Act i vi t i es

M3. 2Issue Mat eri al

M3. 3Manufacture and Test

M3. 4Package

M3. 5St age

Product

P3. 1Ident i fy & Aggregat e

Product i on Rqmts

P3. 2Ident . & Aggregat e

Product i on Resources

P3. 3Balance Resources Wi th

Product i on Rqmts

P3. 4Est abl i sh Detai 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

Tra 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, Priori t i ze and

Aggregat e Del iveryRequi rement s

D4. 2Ident i fy, Assess andAggregat e Del ivery

Resources

D4. 3Balance Del i very

Resources wi th Del i veryRequi rement s

D4. 4Est abl i sh Detai l ed

Del i very Pl ans

D4. 3. 1Balance

Resources wi thRequirements

D4. 2. 1AggregateResources

Deliver

Fixed Wireless Operations ManagementRevis ion Y April 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. 1Goals / 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. 3Balance Resources Wi t hMat eri al Requi rement s

D2. 7Sel ect Carri ers

& Rat e Shipment s

D2. 6Rout e Shipment s

D2. 5Pl an & Bui l d Loads

D2. 4Consol idat e

Orders

D2. 3Reserve Resources and

Set Del i very Dates

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 &Ship

D2. 10Receive & 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. 12Invoice & Receive

Payment

D2. 12. 1Transfer Asset to

Instal l ed BaseAccount

Deliver D2 "Deliver M ake to Order Products

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 Deliver"

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

ReleasedWork

OrdersMfg Pro

Mat eri alAl locat edMfg Pro

ForecastLoadedMfg Pro

Sal esOrders

Mfg Pro

Mat eri alPi ck Li st sMfg Pro

WIP Materi al Moves and Qual i t y DataSyst emMi t ron

Backfl ushAft er TestMfg Pro

MoveMat eri alt o FloorMfg Pro

Move toFi ni shed

GoodsMfg Pro

Min MaxMat eri al

InputMfg Pro

Move toFi ni shed

GoodsMfg Pro

Bi l l ofLadi ng &Mani festMfg Pro

Mat eri alReceived

E Mai l

BaseSt at i on

Commissi 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 Logisti 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

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P0. 6. 1Manage Pl anning

Data

SalesOrders

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 OperationsATT Wireless – Fixed Wireless Operations


Suppliers Supplier

Suppliers Assemble/ Package Distribution Centers Geo Ports of Entry

Americas--->

Europe--->

Asia--->

Intel As-Is Modeled in Easy SCORIntel As-Is Modeled in Easy SCOR

SCOR Overview

July 2004 25

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


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


Receive & VerifyMaterial Transfer Material


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 PlanningGold’n Plump Supply Chain Planning


F404 Engine HP Rotor AssyF404 Engine HP Rotor Assy

SR2DR2

NASNASCVCV

NADEPNADEP NAVICPNAVICPDSCDSC

S1

S2(carcass)

M2 D2 S1 D1 S1

M2

ServiceableRotorAssy

UnserviceableRotor Assy

S1 D1D2

Self LockingSelf Locking NutNut

S2(carcass)

Unserviced Engine Module

D1SvcEngine

Fairchild Fairchild FastenersFasteners

164 Days

32 Days 98 days

60% ofRequireme

nt Accepted,

90% of that Completed

on time

77%SMA

25%On-

Time

F/AF/A1818

Serviceable Modules 188% of

Requirement, Svc Engines

112% of Requirement

SCOR Overview

July 2004 27

BestPractice

BusinessRules P1

P4P2 P3

BestPractice

BestPractice

D1

S1D2M1 M2

Best practice achievedPractice adoptedPractice not yet adopted

Carter Holt Harvey – Focus on Best Carter Holt Harvey – Focus on Best Practice / Change ManagementPractice / Change Management

COTS / Consultant EvaluationsCOTS / Consultant Evaluations


USMC SRAC – IT Gaps and RedundanciesUSMC SRAC – IT Gaps and Redundancies

SRAC

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SCOR Projects – A Wide Range of AdoptionSCOR Projects – A Wide Range of AdoptionSCOR Projects – A Wide Range of AdoptionSCOR Projects – A Wide Range of Adoption

Consumer FoodsConsumer Foods• Project Time (Start to Finish) – 3 monthsProject Time (Start to Finish) – 3 months• Investment - $50,000 USInvestment - $50,000 US• 11stst Year Return - $4,300,000 US Year Return - $4,300,000 US

ElectronicsElectronics• Project Time (Start to Finish) – 6 monthsProject Time (Start to Finish) – 6 months• Investment - $3-5 Million USInvestment - $3-5 Million US• Projected Return on Investment - $ 230 Million USProjected Return on Investment - $ 230 Million US

Software and PlanningSoftware and Planning• SAP bases APO key performance indicators (KPIs) on SCOR Model SAP bases APO key performance indicators (KPIs) on SCOR Model

Aerospace and DefenseAerospace and Defense• SCOR Benchmarking and use of SCOR metrics to specify SCOR Benchmarking and use of SCOR metrics to specify

performance criteria and provide basis for contracts / purchase performance criteria and provide basis for contracts / purchase ordersorders

www.supply-chain.orgwww.supply-chain.org

[email protected]@supply-chain.org

overview presentation supply chain operations reference-model (scor)

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