Supply-Chain Operations Reference-model

Supply-Chain Operations Reference-modelOverview of SCOR Version 5.0

MAI Lab. Seminar

2002/ 01/ 17

Park Jae Won

Contents

MAI Lab. Seminar

What is a Process Reference Model ?

Model Scope and Structure

Applying the Model

Summary

Configuring Supply-Chain Threads

Developing Process Maps

Source : www.supply-chain.org

Case Study

Supply-Chain Council (SCC)

MAI Lab. Seminar

SCOR has been developed and endorsed by SCC.

The SCC was organized in 1996 by PRTM and AMR Research, and

initially

included 69 voluntary member companies.

SCC is independent not-for-profit corporation.

Council membership is now open to all companies and organizations.

over 700 company and organization members

2,700 individual members

* PRTM : Pittiglio Rabin Todd & McGrath* AMR : Advanced Manufacturing Research

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SCC Technical Committee Structure

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Integration Committee Integration Committee

Plan CommitteePlan Committee

Source CommitteeSource Committee

Return CommitteeReturn Committee

Intel – SiemensRosettaNet

Intel – SiemensRosettaNet

Make CommitteeMake Committee

Deliver CommitteeDeliver Committee

Metrics CommitteeMetrics Committee

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What Is a 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 Quantify the operational

performance ofsimilar companies

and establishinternal targets

based on “best-in-class”

results

Quantify the operational

performance ofsimilar companies

and establishinternal targets

based on “best-in-class”

results

Characterize the management

practice andsoftware solutions

that result in“best-in-class”performance

Characterize the management

practice andsoftware solutions

that result in“best-in-class”performance

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 managementpractice and software solutions

that result in “best-in-class”performance

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 managementpractice and software solutions

that result in “best-in-class”performance

Business Process

ReengineeringBenchmarking

Best Practices Analysis

Process Reference Model

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What Is a Process Reference Model ?

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What Is a Process Reference Model ?

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-turned to a specific purpose

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SCOR Boundaries

SCOR spans :

• all customer interactions (from order entry through paid invoice)

• all product transactions (from supplier’s supplier to customer’s customer)

• 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, research and technology development,

product development, and some elements of post-delivery customer support.

SCOR assume but does not explicitly address training, quality, IT,

administration.

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SCOR is based on five distinct management processes

SCOR Boundaries

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Scope of SCOR Processes

Plan

Demand/supply planning and management

Balance resources with requirements and establish/communicate plans for the whole supply chain.

Management of business rules, supply chain performance, data collection, inventory, capital assets, transportation, planning configuration, and regulatory requirements and compliance.

Align the supply chain unit plan with the financial plan

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Source

Sourcing stocked, make-to-order, and engineer-to-order product

Schedule deliveries; receive, verify, and transfer product; and authorize supplier payment.

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, and supplier agreements.

Scope of SCOR Processes

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Scope of SCOR Processes

Make

Make-to-stock, make-to-order, and engineer-to-order production execution

Schedule production activities, issue product, produce and test, package, and release product to deliver.

Finalize engineering for engineer-to-order product.

Manage rules, performance, WIP, equipment and facilities, transportation, production network, and regulatory compliance for production.

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Scope of SCOR Processes

Deliver

Order, warehouse, transportation, and installation management for 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.

Manage deliver business rules, performance, information, finished product inventories, capital assets, transportation, product life cycle, and import/export requirements.

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Scope of SCOR Processes

Return

Return of raw materials (to supplier) and receipts of returns of finished goods (from customer), including defective products, MRO products, and excess products

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

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Structure of SCOR

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Process Categories

Process categories defined by the relationship between a SCOR process and

a process type

Practitioners select appropriate process categories from the SCOR

configuration toolkit to represent their supply-chain configurations.

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Level 1 Process Definitions

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Level 1 Performance Metrics

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Level 1 Performance Metrics

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Level 1 Performance Metrics

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Level 1 Performance Metrics

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Level 2 SCOR Process Type

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SCOR Level 2S

up

pli

ers

Cu

stom

ers

P1 Plan Supply Chain

P2 Plan Source P2 Plan Make P2 Plan Deliver P2 Plan Return

Plan

S2 Source Make-to-Order Product

S3 Source Engineer-to-Order Product

S1 Source StockedProduct

M2 Mak-to-Order

M3 Engineer-to- Order

M1 Make-to-Stock

D2 Deliver Make-to-Order Product

D3 Deliver Engineer-to-Order Product

D1 Deliver Stocked Product

Source Make Deliver

Deliver Return

R1 Return Defective ProductR2 Return MRO ProductR3 Return Excess Product

Source Return

R1 Return Defective ProductR2 Return MRO ProductR3 Return Excess Product

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SCOR Level 3

S1.1ScheduleProduct

Deliveries

S1.2 S1.3 S1.4 S1.5

ReceiveProduct

VerifyProduct

TransferProduct

AuthorizeSupplierPayment

(P2.4) Sourcing Plans

(ES.2) Source Execution Data

(ES.6) Logistics Selection

(M1.1,M2.1,M3.2) Production Schedule

(M1.2,M2.2,M3.3,D1.3)

Replenishment Signals

Procurement Signal

Sourced Product on Order

(P2.2, ES.9)

Scheduled Receipts

(M1.1,M2.1,M3.2,D1.8)

Material on Order

(Supplier)

Sourced Product

Receipt Verification

(ES.1,ES.2,ES.6,ES.8)

Receipt Verification

(ES.1, ES.2)

(M) (D) Product Pull Signals

(ES.4) Product Inventory Location

(EM) WIP Inventory Location

(ED) Finished Goods Inventory Location

Inventory Availability

(P2.2, ES.4, M1.2, M2.2, M3.3, D1.8)

(ES.9) Payment Terms

S1 : Source Stocked Product

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SCOR Level 3

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Level 4 and below

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Level 4 and below

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Configuring Supply-Chain Threads

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Developing Process Maps

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In a Classic Logistics World

A change in a supply chain often “ripples” through each linkage, affecting other areas.

The impact of a change can be felt both up and down the supply chain

• A change in supply caused by a “production planner” may impact a “material planner” and an “inventory planner”.

• Further, such a change may impact both your customer’s and supply-chain planning.

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Effective Supply-Chain Management

Effective supply-chain management requires balancing multiple links concurrently.

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SCOR 적용사례 – Beta Company

출처 : SCM Korea 2002 발표자료 ( 권오경 교수님 - 인하대학교 )

기업 개요- 전자제품의 설계 , 생산 , 마케팅을 수행하고 있는 기업- 북미지역과 함께 전세계 50 개국을 대상으로 비즈니스 활동- 제품들은 소비자에게 프리미엄 브랜드로 인지되고 있음- 생산분야가 기업의 핵심 경쟁력으로 인식되고 있음

당면 문제점- 브랜드 프리미엄에도 불구하고 , 20% 의 매출액 감소 발생- 미국 외 50 개국에 대한 매출액이 전체 매출액의 10% 미만을 차지- 생산부문의 경쟁력에도 불구하고 , 제품의 절반 정도는 외부에서 설계되고 있으며 , 70% 정도는 외부에서 생산되고 있음- 공급사슬성과에 많은 문제점이 나타남

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Supply Chain Scorecard 및 Gap 분석

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공급사슬의 구성 : AS-IS 지도

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공급사슬의 구성 : AS-IS 프로세스 흐름도

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AS-IS 프로세스의 진단 공급 (Source) 프로세스

- OEM 구매를 관리하는 부서 (S2) 는 OEM 의 수와 주문량을 관리하는데 애로를 겪고 있음- 자체공장과 OEM 업체가 부품공급에 있어서 경쟁하는 경우도 발생

계획 (Plan) 프로세스- 각 공장은 독립된 공급계획 (P2) 프로세스를 가지고 있으며 , OEM 공급에 대한 계획도 별도로 이루어지고 있음- 부서간에 이들 업무에 대한 조정이 거의 이루어지지 않고 있음- 모든 계획 프로세스 (P2, P3, P4) 를 조정하는 조직이 결여되어 있으며 , 공급사슬계획 (P1)

을 가지고 있지 않음- 계획 프로세스가 고객과 연계되어 있지 않아 판매시점에서의 수요 특성과 상품 흐름에 대한 이해가 부족

인도 (Deliver) 프로세스- 불필요하게 많은 유통경로를 가지고 있음 ( 자체 소매채널과 함께 많은 수의 도매업체 , 소매업체를 유지- 유통채널에 대한 제품 공급이 부족할 경우 자체 수매채널에 우선 공급하기 때문에 타 도매업체나 소매업체에 대한 공급 부족을 초래하는 경우도 발생

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공급사슬성과 목표 설정

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공급사슬 개선전략 공급 (Source) 프로세스

- 원자재 품질과 가용성 (Availability) 을 개선하기 위해 공급업체 수를 감축

- 핵심 공급업체와 협력강화

생산 (Make) 프로세스

- OEM 방식의 공급을 대폭적으로 감축하고 거의 대부분의 제품을 자체생산 방식으로 전환

- 기존 제품 생산라인을 통합하고 , platform 생산 프로세스를 도입

- 생산방식을 재고생산 (MTS) 방식에서 주문생산 (MTO) 방식으로 전환

- 생산 프로세스 설계를 위한 엔지니어링 측면 개선

인도 (Deliver) 프로세스

- 유통채널을 단순화

- 인도의 신뢰성 개선

- 핵심 고객과의 연계 강화를 위해 VMI 시스템 도입

계획 (Plan) 프로세스

- 수준 1 성과지표에 대한 목표를 설정하고 이를 주기적으로 평가

- 공급사슬 및 인프라 계획 , 공급 / 수요 조정기능을 보강하기 위해 ERP 시스템을 도입

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공급사슬의 구성 : TO-BE 지도

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공급사슬의 구성 : TO-BE 프로세스 흐름도

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공급사슬성과 개선효과

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공급사슬의 구성 – Level 2

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공급사슬의 구성 – Level 3

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SCOR 기반 시뮬레이션 S/W 의 활용

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Summary

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SCOR is a process reference model designed for effective communication

among supply-chain partners.

• A standard language helps management to focus on management issues.

• As and industry standard, SCOR helps management focus across inter-

company supply chains.

SCOR is used to describe, measure and evaluate Supply-Chain configurations.

• Describe : Standard SCOR process definitions allow virtually any supply-

chain to be configured.

• Measure : Standard SCOR metrics enable measurement and

benchmarking of supply-chain performance.

• Evaluate : Supply-chain configurations may be evaluated to support

continuous improvement and strategic planning.

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