SCOR® SC OR® Walk alkthr throug ough h 10.0 Supply-Chain Opera Operations tions Ref Reference-model erence-model John PAUL d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1
Professor & Research Fellow at BEM (Bordeaux Ecole de Management-France) Qualified SCOR® Instructor by Supply Chain Council Managing Director, iCognitive
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
SUPPLY CHAIN COUNCIL OVERVIEW
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Supply Chain Council Overview
An independent, non-profit global association •
The SCC is an independent, not-for-profit, trade association
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Membership open to all companies and organizations
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•
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d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
Focus is on research, application and advancement and advancing state-of-the-art supply chain management systems and practices Developer and endorser of the Supply Chain Operations Reference (SCOR®) as a crossindustry standard for supply chain management Offers Training, Certification, Benchmarking, Research, Team Development, Coaching, and Cross-standard Integration focused on the SCOR® framework
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Founded in 1996
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Approaching 1000 Association Members
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Chapters in North America, Europe, Japan, South Africa, Latin America, Australia/New Zealand, South East Asia and Greater China, with developing Chapters India and Middle East
Driving value through the use of SCOR® 3
Supply Chain Council Overview
SCOR Model available in English and Chinese
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
On sale on: http://alturl.com/mqzzp www.supply-chain.org
www.icognitive.com 4
SCOR OVERVIEW VERSION 10.0 d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
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SCOR® Introduction
Six distinct management processes structure SCOR®
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
Building Block Approach Processes Best Practice
Metrics Technology
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SCOR® Introduction
SCOR®: SCOR ®: A pro process cess ref referen erence ce model model Business Process Reengineering
Benchmarking
Best Practices Analysis
Capture the “as-is” state of a
Capture the “as-is”
state of a process and derive the desired “to-be” future state
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
Process Reference Model
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 management practices and software solutions
that result in “best-inclass” performance
Quantify the operational performance of similar companies and establish internal targets based on “best-in-class” results Characterize the management practices and software solutions that result in “best -inclass” performance
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SCOR® Introduction
SCOR® contains three levels of details
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SCOR is a Top-Down Process
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SCOR® Introduction
Supply-Chain Opera Operations tions Ref Reference-model erence-model (SCOR) 10.0 – Processes [1/2] Plan
P2 Plan Source
P1 Plan Supply Chain
Source
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s r e i l p p u S
P4 Plan Deliver
P3 Plan Make
Make
P5 Plan Returns
Deliver
S1 Source Stocked Products
M1 Make-to-Stock
S2 Source MTO Products
M2 Make-to-Order
D2 Deliver MTO Products
S3 Source ETO Products
M3 Engineer-to-Order
D3 Deliver ETO Products
D1 Deliver Stocked Products
D4 Deliver Retail Products
SR1 Source Return Defective Product
DR1 Deliver Return Defective Defective Product
SR2 Source Return MRO Product
DR2 Deliver Return MRO Product
SR3 Source Return Excess Product
DR3 Deliver Return Excess Product
Enable
s r e m o t s u C
SCOR® Introduction
Supply-Chain Opera Operations tions Ref Reference-model erence-model (SCOR) 10.0 – Processes [2/2] Plan
P1 Plan Supply Chain
Level 1 processes and Level 2 variations d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
P4 Plan Deliver
P3 Plan Make
P2 Plan Source
P5 Plan Returns
Source
Make
Deliver
S1 Source Stocked Stocked Products
M1 Make-to-Stock
D1 Deliver Stocked Products
S2 Source MTO Products
M2 Make-to-Order
D2 Deliver MTO Products
S3 Source ETO Products
M3 Engineer-to-Order
D3 Deliver ETO Products
D4 Deliver Retail Products
Level 3 Sub processes of D2
D2.7
D2.6
D2.5
D2.4
D2.3
D2.2
Select Carriers & Rate Shipments
Route Shipments
Plan & Build Loads
Consolidate Orders
Reserve Resources & Determine Delivery Date
Receive, Configure, Enter & Validate Order
D2.1 Process Inquiry & Quote
D2.8
D2.9
D2.10
D2.11
D2.12
D2.13
D2.14
D2.15
Receive Product from Source or Make
Pick Product
Pack Product
Load Product & Generate Shipping Docs
Ship Product
Receive & Verify Product by Customer
Install Product
Invoice
SCOR® Introduction
Using latest Version 10.0 •
Structure – – –
Section1: Introduction Section 2: Metrics Section 3: Processes • • • •
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
• •
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Section 4: Best Practices • • •
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Chapter 3.1: Plan and Workflow Graphics Chapter 3.2: Source and Workflow Graphics Chapter 3.3: Make and Workflow Graphics Chapter 3.4: Deliver and Workflow Graphics Chapter 3.5: Return and Workflow Graphics Chapter 3.6: Inputs and Outputs SCOR Green SCOR Risk Management
Section 5: People Section 6: Special application applicationss •
Green SCOR
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SCOR® Introduction
Version 10.0 – Using Metrics Coding •
Metrics Coding XX.y.z XX= Performance Attribute. Attribute. The possible values for XX are: • • •
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RL= Reliability RS= Responsiveness AG= Agility CO= Cost AM= Asset Management
y= Level of the metric z= a unique number
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SCOR® Introduction
Planning Processes
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s e s s e c o r p r e i l p p u S
p p u S
Supply Chain Plan
Supply Chain
Source
Return
Make
Deliver
Return
C C u s u t o s m t e r o p r m o c e s e s e r s 13
SCOR® Introduction
PLAN – Balancing requirements and resources •
Plan provides two important functions within the SCOR Model –
Plan
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d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
Plan processes provide an integrating function between other process elements and suppliers / customers
Includes elements such as: –
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The balancing of requirements against resources
Plan processes provide the mechanism for balancing demand requirements and available resources
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Prioritizing demand requiremen requirements ts
Planning inventory, distribution, production, material, and rough-cut capacity for all products and all channels Supply chain configuration, long-term capacity and resource planning, business planning, product phase-in/phase-out, manufacturing ramp-up, endof-life management, product-line management Manage planning infrastru infrastructure cture
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SCOR® Introduction
Execution Processes
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s e s s e c o r p r e i l p p u S
p p u S
Supply Chain Plan
Supply Chain
Source
Return Return
Make
Deliver
Return Return
C C u s u t o s m t e r o p r m o c e s e s e r s 15
SCOR® Introduction
SOURCE – Ordering and receipt of goods •
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Source
Source processes document the activities that connect an organization to its suppliers Source Sourc e Processes include activities such as: –
Material Acquisition •
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Activities that connect us to our suppliers
Obtain, receive, inspect, hold, and issue material
Vendor certification and feedback, sourcing quality, in bound freight, vendor contracts, initiate vendor payments
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Raw Materials Warehouse management
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Raw Materials Transportation •
Manage traffic
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Manage inbound freight
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Manage Source business rules
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Manage RM invent inventories ories
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SCOR® Introduction
MAKE – Conversion of materials •
Make documents the processes that transform / converts raw materials into finished goods –
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Make •
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Change to form, fit, or function
Not all organizations will necessarily perform Make processes
Make processes include activities such as: –
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
Make processes do not imply a change of location but a qualitative transformation transformation of the raw materials
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Request and receive material from Source processes Manufacture and test product, package, hold and/or Manufacture release product Engineering changes, facilities and equipment, production status, production quality, quality, shop scheduling/sequencing, short-term capacity
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WIP Transportation
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Manage production business rules
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Manage WIP invent inventories ories
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SCOR® Introduction
DELIVER – Fulfillment of customer orders •
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Deliver processes document the activities that connect an organization to its customers Deliver processes include activities such as: –
Order management Enter and maintain orders Generate quotations Create and maintain customer customer database, maintain product/price database Manage accounts receivable, credits, collections and invoicing Finished Goods Warehouse management Store, pick, pack and configure products, create customer specific packaging/labeling, consolidate orders, ship products •
Deliver
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•
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Activities that connect us to our customers
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Finished Goods Transportation and installation management –
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Manage traffic, manage outbound freight, manage Schedule installation activities, perform installation, verify performance
Manage channel business rules, order rules, manage deliver inventories, manage deliver quality. Manage product import/export 18
SCOR® Introduction
RETURN – Reverse flow of goods •
Return •
Return processes document the activities asso as soci ciat ated ed wi with th th the e ha hand ndli ling ng of ret etur urns ns,, th tha at is, the return of a product to a supplier or the receipt of a returned product from a customer Retu Re turn rn Sou Sourc rce e –
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
How to manage returns from your customers and to your suppliers
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Act ctiivities associated with returning material to a supplier including the communication with the trad tr adin ing g pa part rtne nerr, th the e ge gene nerrati tion on of do docu cume men ntati tion on,, and the physical return / shipment of product.
Retu Re turn rn Del Deliv iver er –
Activit Activ itie iess as asso socia ciate ted d wi with th re recei ceivi ving ng an and d di disp spos osin ing g of returned material from a customer including the communication with the trading partner, the generation of documentation, and the physical retu re turn rn / re rece ceip iptt an and d di disp spos osal al of pr prod oduc uct. t.
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SCOR® Introduction
SCOR links links Company Strat Strategy egy to Business Operations Operations
Strategic
Europe an RM Supplie r
S2
M2
D2 S2 M1 DR1
D1
S1
D1
S1
SR1 DR1
SR1
DR1
SR1
DR3
SR3
S1
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Tactical
Key Other RM Supplie rs
S1
M1
RM Supplie rs
D1
ALPHA
Alpha Regional Warehou ses
Cons umer
Operational
Systems
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SUPPLY CHAIN PERFORMANCE d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
Supply Suppl y Chain Competiti Competitive ve Analysis Analysis - Measur Measuring ing Performance Metrics
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Supply Chain Performance
Measuring how well the supply chain performs is as essential as underst understanding anding how it operates •
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d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
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Measurements Measurements must link to business objectives Measurements must provide insights into how to manage the supply chain more effectively effectively Measurements must be appropriate for the process activity they are measuring –
Same level
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Supply Chain Performance
Eleven Level Level 1 metrics Performance Attributes
Level 1 Strategic Metrics
Customer-Facing Reliability
Perfect Order Fulfillment Order Fulfillment Cycle Time
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
Responsiveness
Internal-Facing Agility
Costs
Assets
√ √
Upside Supply Chain Flexibility
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Upside Supply Chain Adaptability
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Downside Supply Chain Adaptability
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Overall Supply Chain Value-At-Risk Value-At-Risk
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Supply Chain Management Cost
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Cost of Goods Sold
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Cash-To-Cash Cycle Time
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Return on Supply Chain Fixed Assets
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Return on Working Capital
√
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SCOR BEST PRACTICES d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
GREEN SCOR
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Best Practices - Green SCOR
An Excel Excellen lentt Fo Found undat ation ion for for Environmental Accounting •
• d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
•
Sustainable business models and environmental accounting are growing business concerns. There are multiple approaches to measuring the total environmental footprint of an organization org anization or supply chain with no agreed upon standards. SCOR provides an excellent foundation for environmental envir onmental accounting in the supply chain. 25
Best Practices Practices - Green SCOR
Green metrics Aggregation along SCOR process structure Total Carbon Footprint
Level 1
Air + Liquid + Solid - % Recycle = Total Total Environmental Footprint Tier 3
Tier 2 S2
Level 2
Level 3
S2
D2
M2
Your Company
D2 S2
D1 S1
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
M2
Tier1
M1
D1
S1
M1
M2
D2
Customer D2
Carbon Air Liquid Solid % Recyc
D1
M2.1
M2.2
M2.3
M2.4
M2.5
M2.6
M2.7
Schedule production Activities
Issue Product
Produce and Test
Package
Stage Product
Release Product to Deliver
Waste Disposal
Carbon Air Liquid Solid % Recyc
Carbon Air Liquid Solid % Recyc
Carbon Air Liquid Solid % Recyc
Carbon Air Liquid Solid % Recyc
Carbon Air Liquid Solid % Recyc
Carbon Air Liquid Solid % Recyc
Carbon Air Liquid Solid % Recyc
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SCOR BEST PRACTICES d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
RISK MANAGEMENT
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Best Practices – Risk Management
Supply Chain Risk Ri sk Management (SCRM) •
SCRM –
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•
The systematic identification, identification, assessment and mitigation of potential disruptions in logistics networks with the t he objective to reduce their negative impact on the supply chain network’s performance.
Related SCOR Processes –
EP.9, EP.9, ES.9, ES.9 , EM.9, EM.9 , ED.9, ER.9 ER .9
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Best Practices – Risk Management
Example of Typical Typical Supply Chain Risks
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Best Practices – Risk Management
Three phase approach for SCRM Phase 1: Risks identification
Supply risks
Phase 2:
Phase 3:
Risks assessment
Risks mitigation
Risks assessment & evaluation
Control and monitor
Risks strategy management selection
Mitigation measures
Risks plan definition
Decreasing the impact
Operations risks d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
Demand risks Security risks Other risks (regulations, environmental, etc…)
Decreasing the likehood
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Best Practices – Risk Management
SCOR Enables Risk Monitoring
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
e c n100% a m r o80% f r e P 60% y r e v i l 40% e D 20%
0
Suppliers Example of Supplier Risk Monitoring 31
WHAT WHA T IS NEW IN IN V10.0? d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
SCM SKILLS AND CAPABILITIES PEOPLE
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People
Introduction Introduct ion to Supply Chain Management Skills in SCOR Supply Chain Architecture Overview
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
People Section Skills Skills • Experience Experience • Aptitude • Training • Competency
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People
Supply Chain Assets – Human Capital Key elements of the People section
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
Skill
Experience
• Capacity to deliver predetermined results with minimal input of time and energy • i.e. Master Scheduling, Import/Export Regulations, Production Planning, Risk Mitigation etc
• The knowledge or skill acquired by observation or active participation • i.e. Cycle Counting, Cross Docking, and Hazardous Materials Handling
Aptitude • A natural, acquired, learned or developed ability to perform a certain kind of work at a certain level. • i.e. Accuracy, Analytical, Natural leadership etc
Training
Competency
• A particular skill or type of behavior learned through instruction over a period of time • i.e. SCOR-S certification, APICS CPIM certification but also include onthe-job training etc.
• The state or quality of being qualified, having the ability, to perform a specific role • 5 Levels: Novice, Beginner, Competent, Proficient, Expert
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d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
Full presentation presentation with more details about SCOR V10.0 is available on: http://www.icognitive.com/index.php?option =com_phocadownload&view=category&id=6 %3A&download=107%3Ascor_v10_sc_optimiz ation&Itemid=64&lang=en iCognitive Downloads: http://alturl.com/878ek
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Thank you For more information please contact us at
[email protected] or +65 6325 2810
iCognitive, an Expert in Supply Chain Management
BENCHMARKING
CONSULTING
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
RESEARCH IN SUPPLY CHAIN
TRAINING
TECHNOLOGY
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With Hands-On Experience in SCOR Supp pply ly Cha hain in Ex Exce cell llen encce Aw Awa ard - With support of iC iCog ogni niti tive ve,, Br Brit itis ish h Am Amer eric ican an Tob obac acco co Pakistan SCOR implementation project won two awards from fr om Su Supp pply ly Ch Chai ain n Co Coun unci cil: l: Supp Su pply ly Ch Chai ain n Op Oper erat atio iona nall Ex Exce cell llen ence ce Aw Awar ard d Glob Gl obal al Aw Awar ard d for Su Supp pply ly Ch Chai ain n Ex Exce cell llen ence ce • •
d e v r e s e r s t h g i r l l A . d t L . e t P e v i t i n g o C i t h g i r y p o C 1 1 0 2 ©
Provider of SCOR® workshops as qualified SCOR® instructor certified by the supply chain council : more than 2000 supply chain prof professionals essionals trained in more than 200 companies. 38
