scor 90 overview booklet

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  • PLAN SOURCE MAKE DELIVER RETURN

    Version

    9.0

    SC

    OR

    Ove

    rvie

    w

    Supply-Chain OperationsReference-model

    SCOR is a registered trademark of the Supply-Chain Council in the United States and Europe

  • SCOR Overview

    The Supply-Chain Operations Reference-model (SCOR) is the product of the Supply-ChainCouncil (SCC), an independent, not-for-profit, global corporation with membership open toall companies and organizations interested in applying and advancing the state-of-the-art insupply-chain management systems and practices. The SCOR-model captures the Councilsconsensus view of supply chain management. While much of the underlying content of theModel has been used by practitioners for many years, the SCOR-model provides a uniqueframework that links business process, metrics, best practices and technology features into aunified structure to support communication among supply chain partners and to improve theeffectiveness of supply chain management and related supply chain improvement activities.

    Member companies pay a modest annual fee to support Council activities. All who use theSCOR-model are asked to acknowledge the SCC in all documents describing or depicting theSCOR-model and its use. The complete SCOR-model and other rleated models of the SCCare accessable through the members section of the www.supply-chain.org website. SCCmembers further model development by participating in project development teams- SCORand other related SCC Models are collaborative ongoing projects that seek to represent current supply chain and related practice.

    Copyright 2008 Supply-Chain Council

    Supply-Chain OperationsReference-model

    TABLE OFCONTENTS

    Tabl

    e of

    Con

    tent

    s

    Section One:What is a Process Reference Model? 1

    Section Two:Model Scope and Structure 3

    Section Three: Applying the Model 15

    The Concept of Configurability 15Modeling with SCOR 16Business Scope Diagram 17Geographic Map 18Thread Diagram 19Process Models 20

    Further information regardingmembership, the Council and

    SCORcan be found at the Councils web site:

    www.supply-chain.org.

  • SCOR Overview 1

    Capture the as-isstate of a processand derive thedesired to-befuture state

    Quantify the operational performance of similar companiesand establish internal targetsbased on best-in-classresults

    Characterize themanagement practices and software solutionsthat result in best-in-class performance

    Capture the as-is state of aprocess and derive the desired to-be future state

    Quantify the operational performance of similar companiesand establish internal targets basedon best-in-class results

    Characterize the management practices and software solutionsthat result in best-in-class performance

    BusinessProcess

    Reengineering BenchmarkingBest Practices

    AnalysisProcess

    Reference Model

    What Is a Process Reference Model?Process reference models integrate the well-known concepts of business process reengi-neering, benchmarking, and process measurement into a cross-functional framework.

    Section

    ONE

  • SCOR Overview2

    A Process Reference Model 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 Standard alignment to features and functionality

    Once a Complex Management Process is Captured in Standard Process Reference Model Form, It can Be:

    Implemented purposefully to achieve competitive advantage Described unambiguously and communicated Measured, managed, and controlled Tuned and re-tuned to a specific purpose

    A Process Reference Model Becomes a Powerful Tool in the Hands of Management

  • SCOR Overview

    Deliver Deliver DeliverDeliverSource SourceSource SourceMake MakeMake

    Plan

    SuppliersSupplier

    SupplierYour Company

    Customer CustomersCustomer

    Internal or External Internal or External

    Return Return

    ReturnReturnReturnReturnReturn

    Return

    PlanPlan

    Section

    TWO

    3

    ModelScope and StructureThe Boundaries of Any Model Must Be Carefully DefinedFrom your suppliers supplier to your customers customer

    SCOR spans: All customer interactions, from order entry through paid invoice All product (physical material and service) 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 the fulfillment of each

    order

    SCOR does not attempt to describe every business process or activity, including: Sales and marketing (demand generation) Research and technology development Product development Some elements of post-delivery customer support

    Links can be made to processes not included within the models scope, such as product development, andsome are noted in SCOR.

    SCOR assumes but does not explicitly address: Training Quality Information Technology (IT) Administration (non SCM)

  • SCOR Overview4

    Demand/Supply Planning and ManagementBalance resources with requirements and establish/communicate plans for the whole supplychain, including Return, and the execution processes of Source, Make, and Deliver.

    Management of business rules, supply chain performance, data collection, inventory, capitalassets, transportation, planning configuration, regulatory requirements and compliance, and sup-ply chain risk.

    Align the supply chain unit plan with the financial plan.

    Sourcing Stocked, Make-to-Order, and Engineer-to-Order ProductSchedule deliveries; receive, verify, and transfer product; and authorize supplier payments.

    Identify and select supply sources when not predetermined, as for engineer-to-order product.

    Manage business rules, assess supplier performance, and maintain data.

    Manage inventory, capital assets, incoming product, supplier network, import/export requirements, supplier agreements, and supply chain source risk.

    Make-to-Stock, Make-to-Order, and Engineer-to-Order Production Execution

    Schedule production activities, issue product, produce and test, package, stage product, andrelease product to deliver. With the addition of Green to SCOR, there are now processes specifi-cally for Waste Disposal in MAKE.

    Finalize engineering for engineer-to-order product.

    Manage rules, performance, data, in-process products (WIP), equipment and facilities, transporta-tion, production network, regulatory compliance for production, and supply chain make risk.

    Source

    Plan

    Scope of SCOR Processes

    Make

    SCOR is Based on Five Distinct Management Processes

  • SCOR Overview 5

    Order, Warehouse, Transportation, and Installation Managementfor Stocked, Make-to-Order, and Engineer-to-Order Product

    All order management steps from processing customer inquiries and quotes to routing shipments and selecting carriers.

    Warehouse management from receiving and picking product to load and ship product.

    Receive and verify product at customer site and install, if necessary.

    Invoicing customer.

    Manage Deliver business rules, performance, information, finished product inventories, capitalassets, transportation, product life cycle, import/export requirements, and supply chain deliverrisk.

    Return of Raw Materials and Receipt of Returns of Finished GoodsAll Return Defective Product steps from source identify product condition, disposition product,request product return authorization, schedule product shipment, and return defective product and deliver authorized product return, schedule return receipt, receive product, and transfer defective product.

    All Return Maintenance, Repair, and Overhaul product steps from source identify product condition, disposition product, request product return authorization, schedule product shipment,and return MRO product and deliver authorize product return, schedule return receipt, receiveproduct, and transfer MRO product.

    All Return Excess Product steps from source identify product condition, disposition product,request product return authorization, schedule product shipment, and return excess product and deliver authorize product return, schedule return receipt, receive product, and transfer excess product.

    Manage Return business rules, performance, data collection, return inventory, capital assets, transportation, network configuration, regulatory requirements and compliance, and supply chainreturn risk.

    Deliver

    Return

  • SCOR Overview6

    A Process Reference Model Differs from Classic ProcessDecomposition Models

    Level

    1

    2

    3

    4

    Contains:

    Process Type

    Process Category

    Process Category

    Process Element

    Process Element

    Activities

    Activities

    Provide a balanced horizontal (cross-process)and vertical (hierarchical)view

    Designed to be (re)configurable

    Used to represent many different configurations ofa similar process

    Aggregate a series of hierarchical process models

    Process decomposition models are developed to address one specific configuration of process elements

  • SCOR Overview 7

    Supp

    ly-C

    hain

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    ratio

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    ence

    -mod

    el

    Notin

    Scope

    Level 1 defines the scope and content for the Supply Chain OperationsReference-model. Here basis of competition performance targets are set.

    A companys supply chain can be configured-to-order at Level 2 fromcore process categ