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Description of the SCOR Model.

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  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 1 | 25 July 2010

    SCOR 10.0 Overview

    Supply Chain Council

    Executive Presentation

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 2 | 25 July 2010

    WHAT IS SCOR EXACTLY

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 3 | 25 July 2010

    Instructor Introduction

    3

    Dan Swartwood Vice President of Process and Technology

    for Satellite Logistics Group

    25 Years manufacturing management experience with 3M

    Company and Imation Enterprises

    7 years experience in management consulting in Aerospace,

    Pharmaceutical, Industrial, Chemical, and Paper industries

    focusing on Supply Chain Analysis, Lean, and Six Sigma

    3 years forward and reverse logistics

    Chairman Supply-Chain Council Technical Development

    Steering Committee 2005-2007

    SCC Board of Directors 2005-2007

    Author of Fix Your Supply Chain (published May 2009)

    Speaker on Supply Chain, Transformation, Continuous

    Improvement

    SCOR Master Instructor, Six Sigma, Lean, APICS CPIM

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 4 | 25 July 2010

    SCOR: A Process Framework

    Process frameworks deliver the well-known concepts of

    business process reengineering, benchmarking, and

    best practices into a cross-functional framework

    Standard processes: Plan, Source, Make, Deliver, Return,

    Enable

    Standard metrics: Perfect Order Fulfillment, Cash-to-Cash

    Cycle Time, Cost of Goods Sold, Order Fulfillment Cycle Time,

    etcetera

    Standard practices: EDI, CPFR, Cross-Training, Sales &

    Operations Planning, etcetera

    Standard skills: Aptitudes, Experiences, Credentials, Tasks

    Pre-defined relationships between processes, metrics

    and practices and inputs and outputs

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 5 | 25 July 2010

    What is a Supply Chain?

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    r pro

    ce

    sse

    sSu

    pp

    lie

    r p

    roce

    sse

    s

    Product/Portfolio Management

    Supply ChainSCOR

    Product DesignDCOR

    Sales & SupportCCOR

    Cu

    sto

    me

    r pro

    ce

    sse

    sSu

    pp

    lie

    r p

    roce

    sse

    s

    Product/Portfolio Management

    Supply ChainSCOR

    Product DesignDCOR

    Sales & SupportCCOR

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 6 | 25 July 2010

    SCOR Processes

    Five distinct management processes link together (the

    chain in supply-chain) seamlessly from supplier to

    customer

    Boeing - SCOR Executive Overview

    Supplier

    Plan

    CustomerCustomersCustomer

    SuppliersSupplier

    MakeDeliverSource Make DeliverMakeSourceDeliver SourceDeliver

    Internal or External Internal or External

    Your Company

    Source

    Return Return ReturnReturn Return Return

    Return Return

    SCOR Model

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 7 | 25 July 2010

    SCOR Hierarchy

    Level 1 Level 2 Level 3 Level 4 Level 5

    Scope Configuration Activity Workflow Transactions

    Differentiates

    Business

    Differentiates

    Complexity

    Names Tasks Sequences Steps Links

    Transactions

    Defines Scope Differentiates

    Capabilities

    Links, Metrics,

    Tasks and

    Practices

    Job Details Details of

    Automation

    Framework

    Language

    Framework

    Language

    Framework

    Language

    Industry or

    Company

    Specific

    Language

    Technology

    Specific

    Language

    S1

    Source

    Stocked Product

    Supply-Chain

    Source

    S1.2

    Receive Product

    Standard SCOR definitions Company/Industry definitions

    EDI

    XML

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 8 | 25 July 2010

    Execution Processes

    Processes: Source, Make and Deliver

    Objective: value-add, revenue generating

    Cu

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    mer p

    rocessesS

    up

    pli

    er

    pro

    cesses

    Supply ChainC

    usto

    mer p

    rocessesS

    up

    pli

    er

    pro

    cesses

    Supply Chain

    DeliverMakeSource

    ReturnReturn

    Plan

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 9 | 25 July 2010

    Stocked Product (sS1) Make-to-Order (sS2) Engineer-to-Order (sS3)

    sS1.1 Schedule Product

    Deliveries

    sS2.1 Schedule Product

    Deliveries

    sS3.1 Identify Sources of

    Supply

    sS3.2 Select Final Supplier(s)

    and Negotiate

    sS3.3 Schedule Product

    Deliveries

    sS1.2 Receive Product sS2.2 Receive Product sS3.4 Receive Product

    sS1.3 Verify Product sS2.3 Verify Product sS3.5 Verify Product

    sS1.4 Transfer Product sS2.4 Transfer Product sS3.6 Transfer Product

    sS1.5 Authorize Supplier

    Payment

    sS2.5 Authorize Supplier

    Payment

    sS3.7 Authorize Supplier

    Payment

    Source Level-3 Processes

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 10 | 25 July 2010

    S2.2Receive

    Product

    S2.4Transfer

    Product

    S2.5Authorize

    Supplier

    Payment

    S2.1Schedule

    Product

    Deliveries

    S2.2Receive

    Product

    S2.3Verify

    Product

    S2.4Transfer

    Product

    S2.5Authorize

    Supplier

    Payment

    S2.1Schedule

    Product

    Deliveries

    S2.2Receive

    Product

    S2.3Verify

    Product

    S2.4Transfer

    Product

    S2.5Authorize

    Supplier

    Payment

    S2.1Schedule

    Product

    Deliveries

    Question: Process Flows

    Which of the following flows is/are correct?

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 11 | 25 July 2010

    Supply Chain Processes

    Work and Information Flows

    D1.3Reserve Inv.

    Calculate Date

    mp3 H

    Qm

    p3 F

    act

    ory

    Reta

    il, inc.

    D2.2Receive, Enter, Validate Order

    D2.3Reserve Inv.

    Calculate Date

    S1.1Schedule Prod.

    Deliveries

    Customer P.O. Delivery Commit

    S2.1Schedule Prod.

    Deliveries

    D1.2Receive, Enter, Validate Order

    Inter-Company P.O.

    C.O. = Customer Order, Inv. = Inventory, P.O. = Purchase Order, Prod. = Product

    C.O. C.O.

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 12 | 25 July 2010

    Maps to Organizations

    Level 1 Level 2 Level 3 Level 4 Level 5

    Scope Configuration Activity Workflow Transactions

    CxO

    EvP, SVP

    SVP

    VP

    VP, Director

    Line Manager

    Manager

    Team Lead

    Team Lead

    Individuals

    Strategic

    Decision-Making

    Line of Business

    Management

    Activities

    Management

    Job Management Transaction

    Management

    Enterprise

    Supply-Chain

    Requirements

    Operations

    Strategy

    Fine-Tuning

    Operations

    Adjusting

    Process

    Performance

    Tuning

    Technology

    Performance

    S1

    Source

    Stocked Product

    Supply-Chain

    Source

    S1.2

    Receive Product

    Standard SCOR program Company/Industry implementation

    EDI

    XML

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 13 | 25 July 2010

    Attribute Strategic metric

    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 Supply Chain Downside Adaptability

    AG.1.4 Overall Value at Risk (VaR)

    Cost CO.1.1 Supply Chain Management Cost

    CO.1.2 Cost of Goods Sold

    Assets AM.1.1 Cash-to-Cash Cycle Time

    AM.1.2 Return on Supply Chain Fixed Assets

    AM.1.3 Return on Working Capital

    Measuring strategy: KPIs are strategic (level-1) metrics

    Custo

    mer

    Inte

    rnal

    SCOR Level-1 Metrics (KPIs)

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 14 | 25 July 2010

    Metric: Perfect Order Fulfillment

    Definition: The percentage of orders delivered on-time, in full.

    Components of perfect include all items and quantities on-time,

    using the customers definition of on-time, complete

    documentation and in the right condition

    Calculation: [Total Perfect Orders] / [Total Number of Orders]

    Diagnostic

    Metrics:

    (examples)

    % Orders placed without error

    % Orders scheduled to customer request date

    % Orders received damage free

    % Orders with correct shipping documents

    Notes: An order is perfect only if all L2/L3 metrics are perfect; An

    order must be: AND on-time AND in-full AND right condition

    Strategic Reliability Metric

  • 2011 Supply Chain Council. ALL RIGHTS RESERVED. | 2010 Executive | 15 | 25 July 2010

    Best Practices

    Best practice: "A current, structured, proven and repeatable method for making a positive impact on desired operational results."

    CurrentMust not be emerging and can not be antiquated

    Structure