Historical Perspective of the SCOR Model

Supply Chain Operations Reference Model (SCOR)

What Were We Thinking?Historical Perspective of the SCC

Scott Stephens

http://measuredperformance.blogspot.comscottstephens@businessforerunners.com

http://measuredperformance.blogspot.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


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




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


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




On Time

In Full

Docs

Damage

On Time

In Full

Docs

Damage

RevenueAccounts Receivable

Cash Flow

Decomposing Metrics


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





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%


Actual – 90%

DeliveryPerformance Actual – 99%


Actual – 85%

MetricsConflict

Inventory

Under-performance• Process• Systems

Under-performance• Process• Systems

Performance Measurement

Alpha Regional

WarehousesALPHA Consumers

RM Suppliers


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


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 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

mailto:[email protected]

http://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


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


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


Establish Design Chain Plan

Establish Research Plan

Establish Design Plan

Establish Integrate Plan

Establish Amend Plan

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


Manage Design Chain Knowledge Transfer

Manage Research Knowledge Transfer

Manage Design Knowledge Transfer

Manage Integrate Knowledge Transfer

Manage Amend Knowledge Transfer


Manage Design Chain Configuration

Manage Research Network

Manage Design Network

Manage Integrate Network

Manage Amend Network


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

Historical Perspective of the SCOR Model

Business

process level

process mix

process measurement

order process element

process reference models

companys supply chain

configuration level

supply chain council