Transcript Supply Chain Management Survey

Overview Presentation
Supply Chain
Operations Reference-model
(SCOR)
April 2005
1
• The SCC is an independent, not-for-profit, global corporation with
membership open to all companies and organizations interested in
applying and advancing state-of-the-art supply chain management
systems and practices.
• Over 800 Company Members
• Cross-industry representation
• Chapters in Australia/New Zealand, Brazil, Europe, Japan,
North America, Southern Africa, and South East Asia with
petitions for additional chapters pending.
•The Supply-Chain Council (SCC) has developed and endorsed the
Supply Chain Operations Reference-model (SCOR) as the crossindustry standard for supply chain management
SCOR Overview
April 2005
2
SCC Organization - Chapters and Staffing
SCC Global Headquarters
Washington D. C.
Japan Chapter
Tokyo, Japan
North America
Chapter Washington
D.C.
NEC
Disney
South East Asia Chapter
Singapore
Europe
Brussels, Belgium
Modus Media
Venture Inc.
Brazil Chapter
Australia/New Zealand Chapter
Sydney, Australia
SCOR Overview
April 2005
Southern Africa
Johannesburg, South Africa
UTi
3
SCC Leadership Teams
Europe
Diversey Lever– C
Siemens AG – VC
Euro-Chain
Bomardier Tansportation
BASF AG
Borealis
SAP AG
Oracle EMEA
Rhodia
Swiss Federal Institute of
Technology
EDS UK and SA
Board of Directors
Disney - C
Eaton - VC
DaimlerChrysler MOPAR
Business Process Training Center Europe
PeopleSoft
I2 Technologies
Georgia Institute of Technology
IBM
SCE Limited
ICI Supply Chain
Phillips Lighting
PRTM
McCormick & Company, Inc.
HP
Australia/New Zealand
North America
Vemture Corporation – C
Phillips CFT – VC
Modus Media
Deloitte
Singapore Institute of Mfg. Technology
SCM Institute
Autoscan Technology
Polyolefin Company
Asia Pacific Breweries
I2 Technologies
iPerintis Sdn Bhd
Owens Global Logistics – C
Toys R Us - C
Health Purchasing Victoria – VC
Raytheon
Oracle
IBM
RMIT University
Adjoined Consulting
MI Services
Avicon
BHP
Bayer Chemicals
EAN Australia
The Boeing Company
Center for Supply Chain Research / Penn State
Elections Pending
Air Products and Chemicals
Raytheon
South Africa
SAP
Brazil
China
SCOR Overview
April 2005
4
South East Asia
Japan
NEC – C
JBC Create – VC
Mitsui Global Strategic Studies
Olympus Optical
EXA
Chubu Electric Power
J.D. Edwards
Nihon Unisys
Hitachi
Hokkaido University
Matsushita Electric Industrial
Yamaha
Toray Systems Center
Membership
Member by Type
Members by Region
Europe
Practitioners
Software Vendors
Japan
SEA
ANZ
Consultants
Non-Profits
USA/Canada/Mex
ROW
SAfrica


800+ SCC members,
Composition
• 40%: Practitioners
• 25%: Enabling Technology Providers
• 20%: Consultants
• 15%: Universities, Associations,
Government Organizations
SCOR Overview
April 2005
5
Current Technical Projects
SCOR Technical Development
Steering Committee
Best Practice
Returns
C- Paul Janke (Nokia)
C- Lt Col Scott Koster (USMC)
Metrics
MRO Returns
C- Michael Memmel - Siemens
C- Joe Burak (Boeing)
SCOR Overview
April 2005
C – Paul Schiller –
BP Chemicals
6
Supply Chain Operations ReferenceModel (SCOR) Overview
What is a process reference model?

Process reference models integrate the well-known
concepts of business process reengineering,
benchmarking, and process measurement into a crossfunctional framework
Business Process
Reengineering
Capture the “as-is”
state of a process
and derive the
desired “to-be”
future state
SCOR Overview
April 2005
Best Practices
Analysis
Benchmarking
Process Reference
Model
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-inclass” results
Characterize the
management
practices and
software solutions
that result in “bestin-class”
performance
8
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
SCOR is structured around five distinct
management processes
Plan
Deliver
Return
Suppliers’
Supplier
Source
Make
Return
Deliver
Return
Source
Make
Return
Deliver
Return
Source
Return
Your Company
Supplier
Deliver
Source
Return
Return
Customer
Internal or External
Internal or External
SCOR Model
Building Block Approach
SCOR Overview
April 2005
Make
Processes
Metrics
Best Practice
Technology
9
Customer’s
Customer
Supply-Chain Operations Reference-model
(SCOR) 7.0 - Processes
Plan
P1 Plan Supply Chain
Source
S1 Source Stocked Products
S2 Source MTO Products
S3 Source ETO Products
P4 Plan Deliver
P3 Plan Make
Make
M1 Make-to-Stock
M2 Make-to-Order
M3 Engineer-to-Order
P5 Plan Returns
Deliver
D1 Deliver Stocked Products
D2 Deliver MTO Products
D3 Deliver ETO Products
D4 Deliver Retail Products
Return
Deliver
Return
Source
Enable
SCOR Overview
April 2005
10
Customers
Suppliers
P2 Plan Source
SCOR Boundaries

SCOR Spans:
• All supplier / customer interactions
 Order entry through paid invoice
• All physical material transactions
 From your supplier’s supplier to your customer’s
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
• Returns
SCOR Overview
April 2005
11
SCOR Boundaries (cont’d)

SCOR does not include:
• Sales administration processes
• Technology development processes
• Product and process design and development processes
• Some post-delivery technical support processes

SCOR assumes but does not explicitly address
• Training
• Quality
• Information Technology (IT) administration (non-SCM)
SCOR Overview
April 2005
12
SCOR Project Roadmap
Analyze Basis
of
Competition
Configure
supply chain
Align
Performance
Levels, Practices,
and Systems
Operations
Strategy
•Competitive Performance Requirements
•Performance Metrics
•Supply Chain Scorecard
•Scorecard Gap Analysis
•Project Plan
Material Flow
•AS IS Geographic Map
•AS IS Thread Diagram
•Design Specifications
•TO BE Thread Diagram
•TO BE Geographic Map
Information
and Work Flow
Implement
supply chain
Processes and
Systems
SCOR Overview
April 2005
SCOR Level 1
•AS IS Level 2, 3, and 4 Maps
•Disconnects
•Design Specifications
•TO BE Level 2, 3, and 4 Maps
Develop,
Test, and Roll
Out
13
SCOR Level 2
•Organization
•Technology
•Process
•People
SCOR Level 3
Mapping material flow
(S1, D1)
(SR1,DR1,DR3)
Manufacturing
Warehouse
(S1, S2, M1, D1)
(SR1,,DR1)
Customer
(S1)
(SR1,SR3)
Warehouse
(S1, D1)
(SR1,DR1,DR3)
Other Suppliers
(D1)
Warehouse
(S1, D1)
(SR1, DR3)
Latin American
Suppliers
(D1)
Customer
Warehouse
(S1, D1)
(SR1,DR1,DR3)
SCOR Overview
April 2005
Customer
(S1)
(SR1,SR3)
(S1)
(SR1,SR3)
14
Customer
European Supplier
(S1)
(D2)
(SR1,SR3)
(DR1)
Mapping the execution processes
Americas
Distributors
S1
SR1
European
RM Supplier
S2
M2
D2
SR3
S2
M1
DR1
D1
S1
D1
S1
SR1
DR1
SR1
DR1
SR1
DR3
SR3
DR3
SR3
S1
Key Other
RM
Suppliers
S1
M1
D1
RM
Suppliers
SCOR Overview
April 2005
ALPHA
15
Alpha
Regional
Warehouses
Distributors
Identifying Plan Activities
P1
P1
P1
P3
P2
P
4
P
3
P
2
P
4
P2
European
RM Supplier
Key Other
RM
Suppliers
S2
M2
S1
M1
P
4
D2
S2
M1
D1
S1
D1
S1
D1
S1
RM
Suppliers
SCOR Overview
April 2005
ALPHA
16
Alpha
Regional
Warehouses
Consumer
Distributors
Linking Supply Chain Performance
Attributes and Level 1 Metrics
Performance
Attribute
Supply Chain
Reliability
Supply Chain
Responsiveness
Supply Chain
Flexibility
Supply Chain
Costs
Performance Attribute Definition
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.
The speed at which a supply chain provides
products to the customer.
The agility of a supply chain in responding to
marketplace changes to gain or maintain
competitive advantage.
The costs associated with operating the supply
chain.
Level 1 Metric
Perfect Order Fulfillment
Order Fulfillment Cycle Time
Upside Supply Chain Flexibility
Upside Supply Chain Adaptability
Downside Supply Chain Adaptability
Supply Chain Management Cost
Cost of Goods Sold
Cash-to-Cash Cycle Time
Supply Chain
Asset
Management
SCOR Overview
April 2005
The effectiveness of an organization in
managing assets to support demand
satisfaction. This includes the management of
all assets: fixed and working capital.
17
Return on Supply Chain Fixed Assets
Supply Chain Scorecard & Gap Analysis
NEW Product Line - Representative of All Scorecards
Supply Chain SCORcard v. 7.0
Overview Metrics
EXTERNAL
Supply
Chain
Reliability
SCOR Level 1 Metrics
Perfect Order Fulfillment
Responsiveness Order Fulfillment Cycle Time
INTERNAL
Flexibility
Cost
Performance Versus Competitive Population
Actual
Parity
Advantage
Superior
0%
80%
85%
90%
$30M Revenue
5 days
3 days
$30M Revenue
13 days
35 days
7 days
Upside Supply Chain
Flexibility
97 days
82 days
55 days
Upside Supply Chain
Adaptability
0%
Downside Supply Chain
Adaptability
50%
Total SCM Management
Cost
19%
13%
8%
80 days
46 days
Cost of Good Sold
Cash-to-Cash Cycle Time
SCOR Overview
April 2005
Key enabler to cost and
asset improvements
$30M Indirect Cost
54%
196 days
Assets
Return on SC Fixed Assets
3%
Value from Improvements
N/A
18
28 days
$7 M Capital Charge
Decomposing Metrics
Revenue
Accounts Receivable
Cash Flow
Perfect Order
Fulfillment
Cycle Time
Supplier
on time delivery
Schedule
Achievement
Perfect Order
Fulfillment
On Time
On Time
Delivery
Performance
In Full
In Full
Docs
Docs
European
RM Supplier
Key Other
RM
Suppliers
S2
M2
Supplier
on time delivery
S2
S1
M1
Damage
Damage
D2
M1
D1
D1
S1
Perfect Order
Fulfillment
D1
S1
S1
RM
Suppliers
SCOR Overview
April 2005
ALPHA
19
Alpha
Regional
Warehouses
Consumer
Consumer
Performance Measurement
Revenue
Accounts Receivable
Cash Flow
Perfect Order
Fulfillment
Perfect Order
Fulfillment
Goal – 95%
Inventory
Cycle Time
Metrics
Conflict
Supplier
Supplier
on time
delivery
on time delivery
Actual – 85%
Schedule
Schedule
Achievement
Achievement
Actual – 95%
Perfect Order
Fulfillment
Perfect Order
On Time
Delivery
Delivery
Performance
Performance
Actual – 99%
European
RM Supplier
Key Other
RM
Suppliers
S2
M2
In Full
M1
Under-performance
Damage
•Process
Supplier
•Systems on time delivery
D2
M1
D1
S1
RM
RM
Suppliers
Suppliers
SCOR Overview
April 2005
Docs
Docs
S2
S1
Fulfillment
Perfect Order
Actual – 90% On TimeFulfillment
Actual - 85%
In Full
ALPHA
20
D1
S1
Damage
Perfect Order
Fulfillment
Under-performance
D1
•Process S1
•Systems
Alpha
Regional
Warehouses
Consumer
Consumer
Consumer
Implementation Issues





SCOR Implementations
• Vary in scope and objective
 Green Field
 Distribution analysis
 Planning Improvements
 Change Management / COTS-Consultant Selection
How to conduct an ROI evaluation
Senior Management support vs. Middle Manager resistance
Project timelines
• Benchmarking
• Implementation
Tools
SCOR Overview
April 2005
21
ATT Wireless – Fixed Wireless Operations
Fixed Wireless Operations Management
Rev isio n Y April 5 , 1 9 9 9
Program
Management
Plan
Plan Infrastructure
Servi ce Real i zat i on
Process
Product Development and Configuration
Management
P0. 1
Per form Make/ Buy
Deci si on Maki ng
P0. 1. 2
Perform Make/ Buy
P0. 2
Reconfi gure t he
Suppl y Chai n
P0. 2. 1
Reconfi gure the
Suppl y Chai n
Product Real i zat i on
Process
P0. 3
Per form Long Term
Capaci t y and Resource
Pl anni ng
P0. 3. 1
Long Term
Capaci t y
P0. 3. 2
Operat i ons St af fi ng
Document
Rel ease
Sof tware Desi gn
Rel ease
Document
Archi ve
Metaphase Product
Structure and
Desi gn
Hardware Desi gn
Rel ease
Doc. 10888 ( C0. 1. 0)
Product Rel ease and Change Process
Sof tware
Archi ve
P0. 3. 3
Suppl i er Capaci t y
Pl an
Doc 10407 ( C0. 1. 1)
Product Numberi ng
P0. 4
Per form Busi ness
Pl anni ng
P0. 5
Manage Product Li ne
Pl ans
P0. 6
Manage Pl anni ng Dat a
P0. 7
Per form Suppl y Chai n
Bench Marki ng
P0. 4. 1
Goal s / St rat egy
P0. 5. 1
Manage Fi el d
Spares Pl an 10533
P0. 6. 1
Manage Pl anni ng
Dat a
P0. 7. 1
Perform Suppl y
Chai n Bench
Marki ng
P0. 5. 2
Manufact uri ng
Input t o SRP
P0. 6. 2
Pl anner Code
Assi gnment and
Mai ntenance
P0. 4. 2
Budget Pl anni ng
P0. 8
Manage Busi ness Rul es
P0. 8. 1
Val ues and
Pri nci pl es
P0. 8. 2
Operat i ons
Pol i ci es
P0. 5. 3
Manufact uri ng
Input t o the PRP
P0. 4. 3
Standard Cost
P0. 5. 4
Manage Fi el d
Confi gurati ons
P0. 4. 4
Product Cost
Management
P0. 5. 5
Fi el d Change
Management
P0. 5. 6
NPI Process 10093
Source
Make
So urce Infra structure
S0. 1
Est abl i sh New
Mat eri al
S0. 2
Est abl i sh New
Source
S0. 3
Manage Suppl i er
Agr eement s
S0. 1. 1
Part Creati on
Process f or
Purchased
Components
S0. 1. 4 - R
Suppl i er Sel ecti on
and qual i fi cat i on
S0. 3. 1
Suppl i er PCN
Procedure
S0. 4
Mai nt ai n Sour ce
Pl anni ng and Execut i on
Dat a
S0. 9. 1
Strat egy
Devel opment
S0. 9. 2
Technol ogy
Management
Teams (TMT)
S0. 1. 5
Qual i f i ed Part
Process
Deliv er
Deliver Infrastructure
Ma nufa cturing Infra structure
S0. 9
Det er mi ne Emer gi ng
Suppl i er Technol ogi es
S0. 10
Manage Mat er i al
I nvent ory
M0. 1
Creat e/ Mange Si t e
Reci pes/ Process Fl ows
S0. 10. 2
Stock Room
Inventory Mgmt .
M0. 1. 1
Creat e
Manufact uri ng
Bi l l of Mat eri al
S0. 10. 3
Suppl i er
Inventory
M0. 2
Manage Engi neer i ng/
Reci pe Changes
M0. 2. 1
Manage
Engi neeri ng
Change
Impl ement ati on
M0. 1. 6
Methods
Di stri but i on
S0. 10. 6
Cycl e Count
M0. 3
Mai nt ai n Equi pment /
Faci l i t i es
M0. 3. 1
Faci l i t i es
Mai ntenance
M0. 4
Cont r ol Product i on
Processes
M0. 5
Manage Product i on
Mat eri al s
M0. 6
Moni t or Pr oduct i on
St at us
M0. 5. 2
PCA Fl oor
Stock
M0. 4. 4
ESD Process and
Audi t
M0. 5. 3
System Assembl y &
Test Fl oor Stock
M0. 3. 2
Mai ntai n &
Cal i brate
Equi pment
M0. 5. 6
Overal l Materi al
Fl ow
M0. 6. 2
Labor Tracki ng
M0. 7
Moni t or Equi pment
St at us
M0. 7. 1
Moni tor Prod.
Equi pment
M0. 8. 1
CLCA Process
M0. 7. 2
Asset Tracki ng
M0. 8. 2
Non Conformi ng
Materi al
M0. 6. 3
BOM Vari ance at
Backf l ush
S0. 5. 2
Inbound Frei ght
Management
S0. 6
Manage Suppl i er
Cer t i fi cat i on
S0. 7
Manage Sour ci ng
Busi ness Rul es
S0. 8
Aut hori ze Suppl i er
Payment
M0. 9. 1
Short Term
Capaci t y Pl an
P0. 9. 2
Det ermi ni ng
Staff i ng
Requi rement s
D0. 1
Manage Product and
Process Dat a
M0. 10
Manufact ur i ng Trai ni ng
D0. 2
Manage Channel
Business Rules
D0. 1. 1
Manage Indi cati ve
Dat a
M0. 10. 1
Techni cal
Trai ni ng
M0. 10. 2
Team Bui l di ng
D0. 3
Manage Or der Rules
D0. 3. 1
CLE Provi si oni ng
D0. 4
Manage Deliver
I nvent ories
D0. 5
Manage War ehouse
Net work
D0. 1. 3
Outbound EDI
Process
D0. 3. 2
Base St at i on
Provi si oni ng
D0. 4. 2
E&O Materi al
Processi ng
D0. 1. 5
Product Barcode
Del i very
D0. 3. 4
Fi el d Ret urns
D0. 4. 3
Fi el d Invent ori es
M0. 8. 4
Operat i ons Qual i ty
Management
D0. 4. 4
Fi ni shed Goods
M0. 8. 5
Measuri ng of Base
Faul t l ess Inst al l s
D0. 4. 5
Consi gnment
Fi ni shed Goods
D0. 6
Manage
Warehouses
D0. 6. 1
Consi gnment
Warehouse Process
D0. 4. 1
Fi el d Inv. Cycl e
Count -
D0. 7
Manage Delivery
Qualit y
D0. 8
Manage Delivery
Cont r act s
D0. 9
Est ablish New Delivery
Channels
D0. 9. 1
New Ci t y
Int roduct i on
D0. 7. 1
Manage Del i very
Qual i t y
D0. 10
Manage Out bound
Transport at ion
D0. 10. 1
Outbound
Logi sti cs
D0. 10. 2
In Transi t Tracki ng
M0. 8. 6
Measuri ng of RU
Faul t l ess Inst al l s
S0. 8. 1
Account s
Payabl e
S0. 6. 4
Suppl i er Preference
M0. 9
Manage Shor t - t erm
Capaci t y
M0. 8. 3
Recal l ed Product
S0. 6. 3
Part Pref erence
S0. 5
Manage I ncomi ng
Frei ght
M0. 8
Manage Product i on
Qual i t y Pol i ci es
M0. 8. 7
Out of Box Audi t
Pla nning P3 "Pla n Ma ke"
Pla nning P4 "Pla n Deliv er"
P3. 1
I dent i f y & Aggr egat e
Product i on Rqmt s
P3. 2
I dent . & Aggregat e
Product i on Resources
P3. 2. 1
Product i on
Management
P3. 1. 1
Vol ume
Depl oyment
P3. 3
Bal ance Resources Wi t h
Product i on Rqmt s
P3. 3. 1
Creat e MPS
P3. 3. 2
Revi ew and
Bal ance MPS
P2. 3
Bal ance Resour ces Wi t h
Mat eri al Requi r ement s
D4. 1. 1
Aggregate
Requi rement s
P2. 4
Est abl i sh Det ai l ed
Sourci ng Pl ans
S2. 1
Schedul e Mat eri al
Del i ver i es
S2. 2
Recei ve & Ver i f y
Mat eri al
D4. 3
Bal ance Del i very
Resources wi t h Del i ver y
Requi rement s
D4. 2. 1
Aggregate
Resources
D4. 3. 1
Bal ance
Resources wi th
Requi rement s
D4. 4
Est abl i sh Det ai l ed
Del i ver y Pl ans
D4. 4. 1
Est abl i sh
Det ai l ed Pl ans
Ex ecutio n M3 "Ma ke to Order (Discrete Ma nufa cturing )"
S2. 3
Transfer
Mat eri al
M3. 1
Schedul e Manufact ur i ng
Act i vi t i es
M3. 2
I ssue Mat er i al
M3. 4
Package
M3. 3
Manufact ur e and Test
Deliv er D2 "Deliv er Ma ke to Order Pro ducts
M3. 5
St age
Product
D2. 7. 1
Outbound Logi st i cs
Kevi n Monahan
M3. 1. 1
Product i on
Schedul i ng
S2. 2. 1
Stockroom and
Recei vi ng Process
P2. 4. 1
Provi si oni ng
D4. 2
I dent i f y, Assess and
Aggregat e Del i very
Resources
P3. 4. 1
Creat e MRP Order
Recommendati ons
So urce Ma ke to Order Ma teria l
Pla nning P2 "Pla n So urce"
P2. 1
P2. 2
Pr i ori t i ze and Aggr egat e Assess and Aggregat e
Mat eri al Req.
Resources
D4. 1
I dent i f y, Pr i ori t i ze and
Aggregat e Del i very
Requi rement s
P3. 4
Est abl i sh Det ai l ed
Product i on Pl ans
S2. 3. 3
Program
Parts
M3. 1. 2
Product i on
Schedul e Revi ew
M3. 1. 3
Modi fy Schedul e
and Execute
M3. 1. 4
Del i ver Report s to
Customers
M3. 2. 1
Ki tt i ng and
Issui ng Mat eri al
M3. 3. 1
PCB Assembl y
M3. 3. 10
PCA Test
M3. 4. 1
Package
Menl o
M3. 5. 1
Stage
Product
D2. 7
Sel ect Carr i er s
& Rat e Shi pment s
D2. 6
Rout e Shi pment s
D2. 8
Pi ck St aged
Product
D2. 9
Load Vehi cl e
Gener at e Shi p Docs &
Shi p
D2. 8. 1
Pi ck St aged
Product
D2. 9. 1
Load Vehi cl e Gen.
Shi p Docs & Shi p
M3. 3. 2
Base Assembl y and
Test
M3. 3. 3
RU Assembl y
S2. 1. 2
Val ue Added
Di stri but or (VAD)
D2. 5. 1
Pl an, Bui l d, and Consol i dat e Loads
Kevi n Monahan
Menl o Logi sti cs
D2. 5
Pl an & Bui l d Loads
D2. 10
Recei ve & Ver i f y
Product at Cust omer Si t e
D2. 10. 1
Recei ve & Veri f y
Product at
Warehouses
D2. 10. 2
Recei ve & Veri f y
Product at
Customer Si te
D2. 4
Consol i dat e
Order s
D2. 11
Test & I nst al l
Product
D2. 3. 1
Sal es Order Process
Kevi n Monahan
D2. 3
Reser ve Resour ces and
Set Del i ver y Dat es
D2. 2
Val i dat e
Order
D2. 12
I nvoi ce & Recei ve
Payment
Legend
D2. 11. 1
Test and Instal l
CLEs
D2. 11. 2
Test & Inst al l
Bases
5.
Document accept ed
by RACI t eam and
basel i ned
4.
Revi ew by
Manufact uri ng
Engi neeri ng
compl ete and
document sent out
f or RACI approval
of fi nal document
D2. 12. 1
Transfer Asset t o
Instal l ed Base
Account
M3. 3. 12
RU Test
3.
Process owner i s
f i ni shed wri ti ng
document .
Document i s
awai t i ng
Manufact uri ng
Engi neeri ng revi ew.
M3. 3. 5
Int ernal Ret urn
Process
S2. 1. 3
Aut oRepl eni sh
Process
M3. 3. 6
Product i on
Operat i ons Return
Center
S2. 2. 4
Fi el d Di screpant
Recei pt s
S2. 1. 4
Ext ernal Drop Shi p
Process
SCOR Overview
April Systems
2005 Inputs and Outputs
Information
Fi r m
Pur chase
Order s
Mf g Pr o
I nvent ory
Transact i on
Mf g Pr o
2.
Has a Process
Owner, But the
Process i s Not
Document ed
M3. 5. 2
Stage Product
Outsi de
Warehouses
S2. 2. 5
Recei ve and
Veri f y Mat eri al
Mi n Max
Mat eri al
I nput
Mf g Pr o
Pl anned
Order
Repor t
Mf g Pr o
I nvent ory
Transact i on
Mf g Pr o
Set Change
Eff ect i vi t i es
Mf g Pr o
Pl anned
Work
Order s
Mf g Pr o
For ecast
Loaded
Mf g Pr o
Sal es
Order s
Mf g Pr o
Move
Mat eri al
t o Fl oor
Mf g Pr o
Mat eri al
Al l ocat ed
Mf g Pr o
Rel eased
Work
Order s
Mf g Pr o
Mat eri al
Pi ck Li st s
Mf g Pr o
22
D2. 1
Process I nqui r y & Quot e
WI P Mat er i al Moves and Qual i t y Dat a
Syst em
Mi t r on
Backf l ush
Aft er Test
Mf g Pr o
Move t o
Fi ni shed
Goods
Mf g Pr o
Mat eri al
Recei ved
E Mai l
DDTS
0.
Wi l l Not Be Used
Thi s Year and Wi l l
Not Be Document ed
Unt i l Needed
Move t o
Truck
Mf g Pr o
Move t o
Fi ni shed
Goods
Mf g Pr o
1.
No Process Owner
and t he Process i s
Not Documented
Bi l l of
Ladi ng &
Mani fest
Mf g Pr o
CLEs
I nst al l ed
Mf g Pr o
Sal es
Order s
Mf g Pr o
Base
St at i on
Commi ssi oned
Mf g Pr o
Intel As-Is Modeled in Easy SCOR
Suppliers
Supplier
Suppliers
Assemble/ Package
Distribution Centers
Americas--->
Europe--->
Asia--->
SCOR Overview
April 2005
23
Geo Ports of Entry
Gold’n Plump Supply Chain Planning
Exec
utive
Gold'n Plump Supply Chain
Planning Process Map
Updated Annual
Business
Plan w/ action plan
Leadership
Review
Sale
s
Process Inquiry &
Quote
Receive, Enter, &
Validate Order
Strategy, Goals,
Annual Business
Plan
Reserve Inventory &
Determine
Delivery Date
Mark
etin
g
Plan Supply Chain (P1)
30-90 Aggregate
Demand
Supply
Balance
Daily
Orders
Plan Source (P2)
0-30 Material
Requirements
Resources
Balance
Plan
ning
0-30 day
Outsource
Needs
Plan Make (P3)
0-30 Production
Requirements
Resources
Balance
Plan Deliver (P4)
0-30 Fulfillment
Requirments
Resources
Balance
0-30 day
Inventory
Plan
Logi
stics
Consolidate Orders
Man
ufact
urin
g
Plan & Build Loads
Route Shipments
30-90 demand
forecast & supply
plan
Actual Order
History
0-30 day
Expected
Receipts
Select Carriers & Rate
Shipments
Receive Product
Pick Product
Load Vehicle, Generate
Ship Docs & Ship
Manufactcure & Test
Package
Stage Product
Release Product to
Deliver
0-30 day Master
Production
Schedule
Issue Material
0-7 day Schedule
Receive & Verify
Manufacturing Activities0-30 Material
Material
Transfer Material
Requirements
Plan
Live
0-7 day Schedule
Material Deliveries
Sup
plier
0-7 day Schedule
Material Deliveries
SCOR Overview
April 2005
24
Invoice & Receive
Payment
F404 Engine HP Rotor Assy
NADEP
DSC
25%
OnTime
Fairchild
Fasteners
60% of
Requireme
nt
Accepted,
90% of that
Completed
on time
Self Locking Nut
D2
S1
D1
NAS
CV
NAVICP
77%SMA
S1
M2
D2
S1
D1
S1
S2
F/A
18
Serviceable
Modules
188% of
Requirement,
Svc Engines
112% of
Requirement
Serviceable
Rotor
Assy
(carcass)
164
Days
32 Days
98 days
Unserviced
Engine Module
S2
(carcass)
DR2
SCOR Overview
April 2005
25
M2
Unserviceable
Rotor Assy
SR2
Svc
Engine
D1
Carter Holt Harvey – Focus on Best
Practice / Change Management
Practice not yet adopted
B es t
Prac tic e
Bus in ess
Ru les
B es t
Prac tic e
P1
P2
S1
Best practice achieved
Practice adopted
P4
P3
M1
D1
M2
COTS / Consultant Evaluations
SCOR Overview
April 2005
26
B es t
Prac tic e
D2
USMC SRAC – IT Gaps and Redundancies
SCOR Overview
April 2005
27
SCOR Projects – A Wide Range of Adoption




SCOR Overview
April 2005
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
28
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