SCOR Walk Through v10 Slide Share

SCOR Walkthrough 10.
0
Supply-Chain Operations Reference-model
John PAUL
2011 Copyright iCognitive Pte. Ltd. All rights reserved
Professor & Research Fellow at BEM (Bordeaux Ecole de Management-France) Qualified SCOR Instructor by Supply Chain Council Managing Director, iCognitive
PLAN SOURCE MAKE DELIVER RETURN
SUPPLY CHAIN COUNCIL OVERVIEW
Supply Chain Council Overview
An independent, non-profit global association

The SCC is an independent, not-for-profit, trade association Membership open to all companies and organizations 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 Founded in 1996 Approaching 1000 Association Members 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
www.supply-chain.org
On sale on: http://alturl.com/mqzzp www.icognitive.com

4
SCOR OVERVIEW VERSION 10.0
SCOR Introduction
Six distinct management processes structure SCOR
Building Block Approach Processes Best Practice Metrics Technology
SCOR Introduction
SCOR: A process reference model

Business Process Reengineering Capture the as-is state of a process and derive the desired to-be future state Benchmarking Best Practices Analysis 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-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
SCOR Introduction
SCOR contains three levels of details
SCOR is a Top-Down Process
SCOR Introduction
Supply-Chain Operations Reference-model (SCOR) 10.0 Processes [1/2]

Plan
P2 Plan Source
P1 Plan Supply Chain

P3 Plan Make P4 Plan Deliver P5 Plan Returns
Source
S1 Source Stocked Products
Make
M1 Make-to-Stock M2 Make-to-Order M3 Engineer-to-Order
Deliver
D1 Deliver Stocked Products D2 Deliver MTO Products
Suppliers
S2 Source MTO Products
S3 Source ETO Products
D3 Deliver ETO Products
D4 Deliver Retail Products
SR1 Source Return Defective Product
DR1 Deliver Return Defective Product
SR2 Source Return MRO Product
DR2 Deliver Return MRO Product
SR3 Source Return Excess Product
DR3 Deliver Return Excess Product
Enable
Customers
SCOR Introduction
Supply-Chain Operations Reference-model (SCOR) 10.0 Processes [2/2]

Plan
P2 Plan Source
P1 Plan Supply Chain

P3 Plan Make
P4 Plan Deliver P5 Plan Returns
Level 1 processes and Level 2 variations

Source
S1 Source Stocked Products S2 Source MTO Products
Make
M1 Make-to-Stock M2 Make-to-Order M3 Engineer-to-Order
Deliver
D1 Deliver Stocked Products D2 Deliver MTO Products D3 Deliver ETO Products D4 Deliver Retail Products
S3 Source ETO Products
D2.7
D2.6 Route Shipments
D2.5 Plan & Build Loads
D2.4 Consolidate Orders
D2.3 Reserve Resources & Determine Delivery Date
D2.2 Receive, Configure, Enter & Validate Order
D2.1 Process Inquiry & Quote
Level 3 Sub processes of D2
Select Carriers & Rate Shipments
D2.8 Receive Product from Source or Make
D2.9 Pick Product
D2.10 Pack Product
D2.11 Load Product & Generate Shipping Docs
D2.12 Ship Product
D2.13 Receive & Verify Product by Customer
D2.14 Install Product
D2.15 Invoice
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SCOR Introduction
Using latest Version 10.0

Structure
Section1: Introduction Section 2: Metrics Section 3: Processes
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
Section 4: Best Practices

SCOR Green SCOR Risk Management
Section 5: People Section 6: Special applications

Green SCOR
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SCOR Introduction
Version 10.0 Using Metrics Coding

Metrics Coding XX.y.z XX= Performance Attribute. The possible values for XX are: 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
Customer processes Customer Supplier processes
Supplier
Supply Chain
Source
Supply Chain
Plan Make
Deliver
Return
Return
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SCOR Introduction
PLAN Balancing requirements and resources

Plan provides two important functions within the SCOR Model
Plan processes provide the mechanism for balancing demand requirements and available resources Plan processes provide an integrating function between other process elements and suppliers / customers
Plan
Includes elements such as:

Prioritizing demand requirements
The balancing of requirements against resources
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 infrastructure
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SCOR Introduction
Execution Processes
Customer processes Customer Supplier processes
Supplier
Supply Chain
Source
Supply Chain
Plan Make
Deliver
Return Return
Return Return
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SCOR Introduction
SOURCE Ordering and receipt of goods

Source processes document the activities that connect an organization to its suppliers Source Processes include activities such as:
Material Acquisition Obtain, receive, inspect, hold, and issue material
Source
Vendor certification and feedback, sourcing quality, in bound freight, vendor contracts, initiate vendor payments
Activities that connect us to our suppliers
Raw Materials Warehouse management Raw Materials Transportation Manage traffic Manage inbound freight Manage Source business rules Manage RM inventories
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SCOR Introduction
MAKE Conversion of materials

Make documents the processes that transform / converts raw materials into finished goods
Make processes do not imply a change of location but a qualitative transformation of the raw materials Not all organizations will necessarily perform Make processes
Make
Make processes include activities such as:

Request and receive material from Source processes Manufacture and test product, package, hold and/or release product Engineering changes, facilities and equipment, production status, production quality, shop scheduling/sequencing, short-term capacity WIP Transportation Manage production business rules Manage WIP inventories
Change to form, fit, or function
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SCOR Introduction
DELIVER Fulfillment of customer orders

Deliver processes document the activities that connect an organization to its customers Deliver processes include activities such as:
Deliver
Activities that connect us to our customers
Order management Enter and maintain orders Generate quotations Create and maintain 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 Manage traffic, manage outbound freight, manage Schedule installation activities, perform installation, verify performance
Finished Goods Transportation and installation management
Manage channel business rules, order rules, manage deliver inventories, manage deliver quality. Manage product import/export
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SCOR Introduction
RETURN Reverse flow of goods

Return processes document the activities associated with the handling of returns, that is, the return of a product to a supplier or the receipt of a returned product from a customer Return Source
Activities associated with returning material to a supplier including the communication with the trading partner, the generation of documentation, and the physical return / shipment of product.
Return
How to manage returns from your customers and to your suppliers
Return Deliver
Activities associated with receiving and disposing of returned material from a customer including the communication with the trading partner, the generation of documentation, and the physical return / receipt and disposal of product.
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SCOR Introduction
SCOR links Company Strategy to Business Operations
Strategic
Europe an RM Supplie r
S2
M2
D2 S2 M1 DR1 SR1 DR1 SR1 DR1 DR3 S1 SR1 SR3 D1 S1 D1 S1
Tactical
Key Other RM Supplie rs
S1
M1
D1
RM Supplie rs
ALPHA
Alpha Regional Warehou ses
Cons umer
Operational
Systems
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SUPPLY CHAIN PERFORMANCE

Supply Chain Competitive Analysis - Measuring Performance Metrics
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Supply Chain Performance
Measuring how well the supply chain performs is as essential as understanding how it operates
Measurements must link to business objectives Measurements must provide insights into how to manage the supply chain more effectively Measurements must be appropriate for the process activity they are measuring
Same level
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Supply Chain Performance
Eleven Level 1 metrics

Performance Attributes
Level 1 Strategic Metrics

Reliability Perfect Order Fulfillment Order Fulfillment Cycle Time Upside Supply Chain Flexibility Upside Supply Chain Adaptability
Customer-Facing
Responsiveness Agility
Internal-Facing
Costs Assets
Downside Supply Chain Adaptability Overall Supply Chain Value-At-Risk Supply Chain Management Cost Cost of Goods Sold Cash-To-Cash Cycle Time Return on Supply Chain Fixed Assets Return on Working Capital
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SCOR BEST PRACTICES

GREEN SCOR
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Best Practices - Green SCOR
An Excellent Foundation for Environmental Accounting

Sustainable business models and environmental accounting are growing business concerns. There are multiple approaches to measuring the total environmental footprint of an organization or supply chain with no agreed upon standards. SCOR provides an excellent foundation for environmental accounting in the supply chain.
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Best Practices - Green SCOR
Green metrics Aggregation along SCOR process structure

Level 1
Tier 3
S2
Total Carbon Footprint Air + Liquid + Solid - % Recycle = Total Environmental Footprint
Tier 2
M2 D2 S2
Tier1
M2 D2 S2
Your Company
M2 Carbon Air Liquid Solid % Recyc M2.5
Stage Product Carbon Air Liquid Solid % Recyc
Customer
D2
Level 2
D1 S1 M1 D1 S1 M1 D1
D2
M2.1
M2.2
Issue Product Carbon Air Liquid Solid % Recyc
M2.3
Produce and Test Carbon Air Liquid Solid % Recyc
M2.4
Package
M2.6
Release Product to Deliver Carbon Air Liquid Solid % Recyc
M2.7
Waste Disposal Carbon Air Liquid Solid % Recyc
Level 3
Schedule production Activities Carbon Air Liquid Solid % Recyc
Carbon Air Liquid Solid % Recyc
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SCOR BEST PRACTICES

RISK MANAGEMENT
27 27
Best Practices Risk Management
Supply Chain Risk Management (SCRM)

SCRM
The systematic identification, assessment and mitigation of potential disruptions in logistics networks with the objective to reduce their negative impact on the supply chain networks performance.
Related SCOR Processes

EP.9, ES.9, EM.9, ED.9, ER.9
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Example of Typical Supply Chain Risks
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Three phase approach for SCRM

Phase 1:
Risks identification
Supply risks Operations risks
Phase 2:
Risks assessment
Risks assessment & evaluation Risks strategy management selection
Phase 3:
Risks mitigation
Control and monitor
Mitigation measures
Demand risks Security risks Other risks (regulations, environmental, etc)
Risks plan definition
Decreasing the impact
Decreasing the likehood
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SCOR Enables Risk Monitoring

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Delivery Performance
100% 10
80% 8
60% 6
40% 4
20% 2
0
Fournisseur Fournisseur Fournisseur Fournisseur Fournisseur Fournisseur Fournisseur Fournisseur Fournisseur Fournisseur Chine Singapore Europe du Europe de Europe Afrique de Afrique de Amerique du Amerique Amerique du Nord l'Est Occidentale l'Ouest l'Est Nord centrale Sud
Suppliers
2008 Copyright iCognitive Pte, Ltd . Tous droits rservs
Example of Supplier Risk Monitoring

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WHAT IS NEW IN V10.0?

SCM SKILLS AND CAPABILITIES PEOPLE
32 32
People
Introduction to Supply Chain Management Skills in SCOR

Supply Chain Architecture Overview
People Section Skills Experience Aptitude Training Competency
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People
Supply Chain Assets Human Capital

Key elements of the People section
Skill
Capacity to deliver predetermined results with minimal input of time and energy i.e. Master Scheduling, Import/Export Regulations, Production Planning, Risk Mitigation etc
Experience
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
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.
Competency
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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Full 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
www.icognitive.com
For more information please contact us at info@icognitive.com or +65 6325 2810
iCognitive, an Expert in Supply Chain Management
CONSULTING
BENCHMARKING
RESEARCH IN SUPPLY CHAIN
TRAINING
TECHNOLOGY
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With Hands-On Experience in SCOR

Supply Chain Excellence Award - With support of iCognitive, British American Tobacco Pakistan SCOR implementation project won two awards from Supply Chain Council: Supply Chain Operational Excellence Award Global Award for Supply Chain Excellence
Provider of SCOR workshops as qualified SCOR instructor certified by the supply chain council : more than 2000 supply chain professionals trained in more than 200 companies.
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SCOR Walk Through v10 Slide Share

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SCOR Walkthrough 10.

PLAN SOURCE MAKE DELIVER RETURN

2011 Copyright iCognitive Pte. Ltd. All rights reserved

SUPPLY CHAIN COUNCIL OVERVIEW

Supply Chain Council Overview

An independent, non-profit global association

Driving value through the use of SCOR

Supply Chain Council Overview

SCOR Model available in English and Chinese

2011 Copyright iCognitive Pte. Ltd. All rights reserved

On sale on: http://alturl.com/mqzzp www.icognitive.com

2011 Copyright iCognitive Pte. Ltd. All rights reserved

SCOR OVERVIEW VERSION 10.0

Six distinct management processes structure SCOR

2011 Copyright iCognitive Pte. Ltd. All rights reserved

Building Block Approach Processes Best Practice Metrics Technology

SCOR: A process reference model

2011 Copyright iCognitive Pte. Ltd. All rights reserved

SCOR contains three levels of details

2011 Copyright iCognitive Pte. Ltd. All rights reserved

SCOR is a Top-Down Process

Supply-Chain Operations Reference-model (SCOR) 10.0 Processes [1/2]

P1 Plan Supply Chain

S2 Source MTO Products

2011 Copyright iCognitive Pte. Ltd. All rights reserved

S3 Source ETO Products

D3 Deliver ETO Products

D4 Deliver Retail Products

SR1 Source Return Defective Product

DR1 Deliver Return Defective Product

SR2 Source Return MRO Product

DR2 Deliver Return MRO Product

SR3 Source Return Excess Product

DR3 Deliver Return Excess Product

Supply-Chain Operations Reference-model (SCOR) 10.0 Processes [2/2]

P1 Plan Supply Chain

Level 1 processes and Level 2 variations

S3 Source ETO Products

D2.6 Route Shipments

D2.5 Plan & Build Loads

D2.4 Consolidate Orders

D2.3 Reserve Resources & Determine Delivery Date

D2.2 Receive, Configure, Enter & Validate Order

D2.1 Process Inquiry & Quote

Level 3 Sub processes of D2

Select Carriers & Rate Shipments

D2.8 Receive Product from Source or Make

D2.9 Pick Product

D2.10 Pack Product

D2.11 Load Product & Generate Shipping Docs

D2.12 Ship Product

D2.13 Receive & Verify Product by Customer

D2.14 Install Product

Using latest Version 10.0

2011 Copyright iCognitive Pte. Ltd. All rights reserved

Section 4: Best Practices

Section 5: People Section 6: Special applications

Version 10.0 Using Metrics Coding

2011 Copyright iCognitive Pte. Ltd. All rights reserved

2011 Copyright iCognitive Pte. Ltd. All rights reserved

PLAN Balancing requirements and resources

2011 Copyright iCognitive Pte. Ltd. All rights reserved

Includes elements such as:

The balancing of requirements against resources