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Technical Development

Supply Chain Operations

Reference (SCOR) model

Obaidullah khan
Discussion Agenda

♦ User Perspective
♦ SCOR Application
♦ Current Development Situation
♦ Future Challenges
♦ 2002 Focus
SCC User Perspective

♦ SCC membership since 1996 helping

with versions 1.0 to 5.0
♦ 37 projects as defined by the SCOR
Project Roadmap
♦ SCC Leadership Opportunities
 Plan Committee Chair
 Integration Committee Chair
 SCORBoard
SCOR Project Roadmap

Analyze Operations •Supply Chain Scope

Basis of Strategy •Performance Metrics
•Supply Chain SCORcard
Competition •Competitive Performance
Requirements and SCORcard Gap
•AS IS Material Flow
Configure Material •Disconnect & Gross Opportunity Analysis
Supply Flow •Material Flow Strategy and Best Practice
Chain •Supply Chain Strategy
•TO BE Material Flow

Information •AS IS Work/Information Map
and Work Flow •Transactional Analysis
Levels, •Design Specifications
Practices, •TO BE Work/Information Map
and Systems •Prioritized List of Changes

Implement Implementation •Master Schedule of Projects

•ROI Analysis
Supply-Chain •Technology Selection
•Detail Requirements, Solution
Changes Design, Configuration, Test & Go
Applications of SCOR

♦ Software Selection & ♦ SKU Rationalization

Implementation ♦ Delivery Performance
 Business Improvement
Requirements  OTIF – Perfect Order
♦ Cost Reduction –  Synchronize Lead-
Productivity time
Improvement ♦ Supply Chain Six
 Direct Sigma and Lean
 Indirect Enterprise
♦ Application  Continuous
optimization Improvement
 Upgrade  Organizational
 Utilization Learning
♦ Implement Operational ♦ Efficient Consumer
Strategy Response
♦ Network Analysis –
 Forecast Accuracy
 Category Marketing
Current Development Process

♦ Integration Committee sets 6 month

direction for P, S, M, D, and R committee’s
operating plans
♦ P, S, M, D, and R committee’s assemble
action plans and complete the work using
4 face-to-face and 8 teleconference
meetings per committee per year –
homework required
♦ Changes submitted include process,
definitions, inputs/outputs, metrics,
practices, and glossary
♦ Changes are incorporated in to a SCOR
version release
Integration Committee Mission

♦ Support the use of the Supply Chain Operations

Reference Model through improving both the technical
integrity and the elegance (simplicity) of the model.
 Setting direction for the technical committees for
application based changes (SCOR Projects) using an
effective global organization
 Improve the collaboration and coordination of the SCC
Global Technical Community using an effective Change
Management Process
 Efficiently and effectively document SCOR changes and
communicate those changes using technology supporting
global collaboration
 Contribute to the transfer of knowledge to members
 Consider the impact of ebusiness on the SCOR Model
Technical Development
Organization – 11/1/01
C-Peter Bolstorff – Pragmatek
V-Larry Gray – CobreGroup

C-Katie Kaspar-
VC -Oscar Chappel – Tech Connection C -Ed Biancarelli – Washington Group
VC -Irving Briks – BellSouth
C-Dennis Zagrodnik – Daimler/Chrylser Deliver Committee
VC -Paul Welch - Nokia
C - Dan Swartwood –Pragmatek
VC - Rick Hughes – Lockheed Martin

C- Major Scott Koster (USMC)

Intel – Siemens Metrics Committee

George Brown – INTEL
Herbert Heinzel - Siemens
2000 - 2001 Technical
♦ Released Version 5.0
 Completed Return Processes
 Began updating the Model’s best practice (e-
 Began metrics restructure and glossary update
• (Note of caution to users previous to SCOR 5.0)
♦ Research
 Joint APICS research publication
 Continued support of Penn State / Manugistics
 Formation of Research Strategies Advisory Board
♦ Workshop material development and conduct
 5 versions of workshop developed and delivered–
Over 500 members have attended SCOR Workshops
with companies like Intel, HP, EDS, US Department of
Defense, Compaq Baxter, SAP, hosting in-house
SCOR Model Timeline - 6.0

♦ After completing Version 5.0 changes

committees began working Version
6.0 - tentatively scheduled for
release in Spring 2002
 Metrics Revision and Decomposition
 Return – Metrics and Best Practice
 Best Practice and e-Business
 Collaboration
Development Challenges

♦ Attendance and energy of current

committee structure
♦ Theory versus application based
♦ Maintenance of SCOR is not
♦ Motivation of USERS to participate in
the development effort
♦ Synchronizing development action
with the research strategies efforts
Objectives Wednesday

♦ Listen and learn from our guest speakers

as they describe their SCOR application
♦ Prepare one question pertaining to SCOR
application for a facilitated small group
discussion beginning at 3:00
♦ Identify one SCOR model change that
would make application easier and more
effective for a facilitated small group
discussion beginning at 3:45
Balanced Project Mix
Pace of Change
Project Mix
Fast Measured
Scope of Change

Focused Continuous
Tactical Improvemen Improvemen
t t

Focused Business Process

Strategi Restructurin Innovation
c g
Example 1

♦ Peter Bolstorff
 Company, role? PRAGMATEK, Consultant
 Committee Experience? Plan and Integration
 Used SCOR as basis for project? Yes. What role?
Project Manager, Design Team, Steering Team,
♦ SCOR Level 1 metrics include a Returns/Warranty
Processing Cost separate from Total Supply Chain
Cost. Is this an accurate representation? is there
benchmark data available for this metric?
♦ Establish technical development priority to
synchronizing Returns/Warranty Processing Cost
with Total Supply Chain Cost and identify
benchmark resources to support a Return Project.
Example 2

♦ Peter Bolstorff
 Company, role? PRAGMATEK, Consultant
 Committee Experience? Plan and Integration
 Used SCOR as basis for project? Yes. What role?
Project Manager, Design Team, Steering Team,
♦ How do we use SCOR Deliver and Return within the
Retail industry segment at the store level?
♦ Establish technical development priority to adding
appropriate process, metric, and benchmark
capability to support a Retail project at the store
♦ Session members broke out into 10 Teams.
♦ Each team prepared about 4 questions
pertaining to SCOR application based on
their group’s experience. There were 34
total submissions.
♦ For each question, the team identified one
idea for SCOR model change that might
make application easier and more
♦ Sample from one team – the
recommendations were ranked with 1
being considered the most important.

3) Create contact list or web page for open exchange

between SCOR users regarding metrics.
4) SCOR-model expansion for “damage/stales/waste” to
support food and consumer goods.
5) SCOR process maturity measurement incorporation
into model to help practitioners with implementation.
6) Develop predictive metrics for strategic planning.
Suggestions were then placed in the matrix for


TACTICAL 1) Create contact list or
web page for open
exchange between
SCOR users regarding
3) SCOR process maturity
incorporation into
model to help
practitioners with
STRATEGIC implementation.
2) SCOR-model expansion
” to support food and
consumer goods.
4) Develop predictive
metrics for strategic
Objectives Thursday

♦ Align to a consolidated Technical Development

Organization to support 2002 activity
 Leverage current mission, 6.0 objectives, 2001 best efforts
of Plan, collaboration, and Metrics
 Project Office Mentality
 Steering Team Leadership
 Project Team Work Effort
 Milestones – Winter 02 execution, Summer 02 planning and
execution, Winter 03 planning
♦ Formalize Technical Development forums
 Research Strategies – in process
 Technical Development Steering Team – initiate
 Formalize white paper, case study publishing guidelines
and recognition – initiate
 Webcasts of case studies – in process
 Day-to-Day maintenance – formalize
Leverage Best Efforts

♦ Clear goals, objectives, ♦ Integration Committee

task focused structure not effective
♦ Leadership – inclusive, ♦ Meeting management
facilitative, and practices
consistent ♦ Work was not
challenging nor
♦ Hold to schedule interesting
♦ Backup leaders ♦ Current process
♦ Regular meetings structure reinforced
stove pipe
♦ Cross-Functional input
development and
and sharing complicates
♦ Show Benefit of the communication
work ♦ Need enough people to
do the work; fix the
♦ Improve formalized
Project Office Mentality
Annual Budget Ongoing Monthly
& Business Business Project Recognize
Strategy Requests Review Project Teams
Management Maintain
Office Schedule

Create Project Charter Monthly Prepare

Status Project
Create Project Plan Report Close Report

Assign Create Budget

Project Spreadsheet
Manager Maintain Project Plan
Create Communication
Project Plan Manage Change
Generate Document
Management Statement of
Establish Roles and
Report Performance
Manage Issues
Methodology Work and
Funding Create Risk Plan Cost Control

Quality Control
Create Project Charter
Manage Risks
Stakeholder Create Procurement Manage Procurement and Project
Approval Plan Contracts Contracts

Initiate Plan Plan

Execute/Control Close
Steering Team Leadership

♦ Chair and Vice Chair Elected to 1 year

terms during January session
 SCOR User
 Committee or Project Leadership Experience
 At least one Practitioner
♦ 3 additional Steering Team members
appointed to 1 year assignments during
January session
 Appointed by Chair and Vice Chair
 SCOR User, Project Leadership Experience
♦ Chief Technical Officer, Supply Chain
Work Team Charter

I. Introduction IV. Project Organization

 Maintenance of the  Organization Chart
Project Charter  Project Resources
II. Project Overview  Roles and
 Scope Responsibilities
 Project Objectives
V. Project
III. Project Approach Communication
 Methodology
 Communication Plan
 Project Schedule
 Project Milestones &
 Dependencies

♦ From ♦ To
 Integration  Technical
Committee Development
Steering Team

 Plan, Source,  SCOR

Make, Deliver, Development
Return, Metrics, Projects or White
eBusiness, and Papers or Funded
Collaboration Research Projects
2002 Milestones

♦ Initiate 2002 Development Efforts –

♦ Transition committees, initiate and
resource projects – February
♦ Close targeted projects, conduct project
reviews and recognize team efforts – June
♦ Reprioritize ideas, initiate and resource
new projects – July
♦ 2002 Project Review, elect new steering
team, and identify 2003 development
priorities – January, 2003
Actions Suggested Today

♦ Conduct February 7 Webcast – briefing the SCC

membership on suggested changes
♦ Plan to elect a Chair and Vice Chair of the
Technical Development Steering Team
♦ Suggest that Plan, Source, Make, Deliver, and
Return Chairs and Vice Chairs comprise remaining
steering team roles
♦ Develop Publishing Guidelines for white papers
open to all members
♦ Assemble transition of Committee efforts to new
project management format – with charter
♦ Identify 2002 meeting schedule for the steering
team including face-to-face and teleconferences
♦ Identify members interested in Project Leadership