3-SCOR - Model - PRIMERA PARTE

SCOR Framework
Introducing all elements of the Supply Chain reference model:

Standard processes, metrics, practices and skills
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 1
Copyright © Supply Chain Council. 2011. All rights reserved. The marks SCOR®, CCOR™, DCOR™ and SCOR Roadmap™ are the exclusive property of the Supply Chain Council.
SCOR Framework Workshop 2
• Understand the history and context of SCOR

• Learn the components of the SCOR framework
› Performance (metrics)
› Process
› Practices
› People (skills) new
• Learn how to describe a supply chain with SCOR

• Understand how to characterize a supply chain with
SCOR metrics
• Apply the SCOR framework using an example SCOR
project roadmap
About SCOR: A Process Framework 3
• Process frameworks deliver the known concepts of

business process reengineering, benchmarking, best
practices and organizational design in a cross-functional
framework
› Standard processes; Plan, Source, Make, Deliver, Return
› Standard metrics: Perfect Order Fulfillment, Cash-to-Cash Cycle
Time, Cost of Goods Sold,..
› Standard practices: EDI, CPFR, S&OP, Cross-Training, ..
› Standard job skills: Lean, Accounting, Solicitation, ..
• Pre-defined relationships between metrics, processes,
practices and skills
A Process Framework 4
• Combining 4 techniques into a single integrated

approach
Business Process Performance Best Practices Organizational
Re-engineering Benchmarking Analysis Design
Capture the ‘as-is’ Quantify relative Identify the practices Assess skills and
business activity and performance of and software performance needs
design the future similar supply chains solutions that result and align staff and
‘to-be’ state and establish in significantly better staffing needs to
internal targets performance internal targets
Process Reference Framework

Processes Performance Practices People
(metrics) (skills)
About SCOR: Supply Chain 5
• Viewing a company as processes (domains)
Product/Portfolio
Product/Portfolio
Product/Portfolio
ManagementManagement
Management
Customer
Customerprocesses
processes
Supplier processes
Product & Sales &

Product Design
Product Design
Design Sales
Sales &
& Support
Support
Process Support
DCOR™ CCOR™
processes
DCOR™
DCOR™ CCOR™
CCOR™
Supplier
Supply
SupplyChain
Chain
SCOR
SCOR®®
Supply Chain 6
• SCOR defines supply chain as: Whether from

Cow to Cone,
Crude to Car or
“ The processes that plan and execute the from Rock to
acquisition of materials, transformation of Ring, SCOR is
not limited by
materials in sellable products, delivery and organizational
boundaries
return of products and services in support
of customer orders ” SCOR can be
applied to supply
Plan chains in any
industry and to
any organization
in the chain
Plan Plan
Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source
Return Return Return Return Return Return
Return Return
Suppliers’ Customers’
Supplier Supplier Your Organization Customer Customer
Internal or External Internal or External
End-to-End Supply Chain 7
Components Sub assemblies Manufacturer Retailer Consumer
Source
Source Make
Make Deliver
Deliver Source
Source Make
Make Deliver
Deliver Source
Source Make
Make Deliver
Deliver Source
Source Deliver
Deliver Source
Source
Supplier’s Supplier Supplier My Organization Customer Customer’s Customer
Process, arrow indicates material flow direction
Supply Chain Processes
Exercises: The Dinner Party 9
• Throughout the Framework training we will use a supply

chain that most are familiar with:
• The backyard grilling ‘dinner’ party
› You will host a party this weekend with 25-40 of your dearest
friends
› You will serve them burgers from your grill (barbecue)
› You are responsible for organizing the event, ingredients, grill,
tools and utensils and general well-being of your guests
› We will be using “The Dinner Party” through the rest of the
SCOR Framework training to exercise different modeling
characteristics
Exercise: The Dinner Party - 1 10
• Identify the nodes in the dinner party supply chain

Suppliers My Dinner Party Customers
Service providers
› Example nodes:
Ejercicio 1
• Indentificar los nodos (actores) de la cadena de
11
suministro.
Proveedores Mi cena de celebración Clientes (30 INVITADOS)
30 panes (SUPERMERCADO -
PARRILLA ASADO Producto 1: Sandwich de
JUMBO) -
2 BOLSAS CARBON pan, carne asada, lechuga,
1 LITRO DE ACEITE ( - FOSFOROS tomate, mayonesa, ketchup,
2 FRASCO MAYONESA - OLLA PARA ALMACENAR CARNE ASADA sal.
KRAFT (JUMBO) - CUCHILLOS ASADO Acompañamiento liquido:
2 PAQUETE SERVILLETAS - TENEDOR ASADO Bebida y Cerveza
(JUMBO) - BANDEJAS
2 FRASCO KETCHUP HEINZ - PLATOS Producto 2: Sandwich de
(JUMBO) - TENEDORES pan, pollo asado, lechuga,
2 FRASCOS SAL (JUMBO) - CUCHILLO tomate, mayonesa, ketchup,
3 BOTELLAS BEBIDA - SERVILLETAS sal.
(JUMBO) - VASOS PLASTICOS Acompañamiento liquido:
1 PACK DE 24 CERVEZAS - REFRIGERADOR Bebida y Cerveza
(JUMBO)
6 pechugas pollo (JUMBO)
4 kg carne (UNIMARC
BILBAO)
6 LECHUGAS (AGROSUR)
3 KG TOMATES (AGROSUR)
Ejercicio 1 12
• Identificar los nodos (actores) de la cadena de

suministro
Proveedores Mi cena de celebración Clientes (INVITADOS)
-RECEPCION DE COMPONENTES
SUPERMERCADO JUMBO - USO REFRIGERADOR 15 INVITADOS – CARNE
- PREPARAR CARNE, ALIÑAR
- PREPARAR ENSALADAS (LECHUGA,
TOMATE)
SUPERMERCADO UNIMARC - PREPARAR PARRILLA
- PREPARAR ASADO 15 INVITADOS - POLLO
- ALMACENAR CARNE ASADA
- CORTAR CARNE
AGROSUR - PREPARAR SANWICHES (ENSAMBLE)
- ENTREGAR ASADO A INVITADOS
- ENTREGAR BEBIDA Y CERVEZA
Ejercicio 1 13

suministro: NIVEL 1 DEL MODELO SCOR
Deliver
Deliver
JUMBO
JUMBO
Source
Source
Deliver
Deliver Source Maker Deliver
Source Maker Deliver
UNIMARC
UNIMARC
Source
Source
Deliver
Deliver
AGROSUR
AGROSUR
Proveedor servicios
Ejercicio 1 14

suministro: NIVEL 2 DEL MODELO SCOR
D1
D1
JUMBO
JUMBO
Source
Source
D1
D1 S1 M1 D2
S1 M1 D2
UNIMARC
UNIMARC
Source
Source
EL PEDIDO DE CADA
INVITADO ES CONOCIDO,
D1
D1 CADA UNO RECIBE EL
AGROSUR
AGROSUR PRODUCTO QUE SOLICITO
Proveedor servicios
SCOR Processes 15
Supply
SupplyChain
Chain
Customer
Plan
Customer
Plan
processes
Customerprocesses
processes
Supplierprocesses
processes
processes
Source
Source Make
Make Deliver
Deliver
Supplier
Supplier
Return
Return Return
Return
Process, arrow indicates material flow direction Information, goods, financial flow
Process, no material flow
SCOR Process Hierarchy 16
Level-1 Level-2 Level-3 Level-4 Level-5

Scope Configuration Activity Workflow Transactions
sS sS1 EDI
sS1.2 XML
Source Source Stocked
Receive Product
Product
Differentiates Differentiates Names Tasks Sequences Steps Links

Business Complexity Transactions
Defines Scope Differentiates Links Metrics, Job Details Details of

Capabilities Tasks, Practices Automation
Framework Framework Framework Industry Technology

Language Language Language Language Specific Language
Standard SCOR definitions Industry/company definitions
Organizational Hierarchy 17
Level-1 Level-2 Level-3 Level-4 Level-5

Scope Configuration Activity Workflow Transactions
sS sS1 EDI
sS1.2 XML
Source Source Stocked
Receive Product
Product
Differentiates Differentiates Names Tasks Sequences Steps Links

Business Complexity Transactions
Defines Scope Differentiates Links Metrics, Job Details Details of

Capabilities Tasks, Practices Automation
CxO (COO, CIO) SVP VP Manager Team Lead

EVP VP Director Team Lead Individuals
SVP Line Manager Programmer
Organization focused Activity focused
SCOR Process Codification 18
• SCOR processes have unique identifiers:

1. Lower case s followed by capitalized letter are level-1 processes: sP, sS, sM,
sD and sR (5 in total)
2. Lower case s plus capitalized letter plus a number are level-2:
sP1, sS2, sM3, sD2, sD4 (15 in total)
Two groups of exceptions for level-2:
- Enable: sEP, sES, sEM, sED and sER (5 in total) and
- Return: sSR1, sDR1, sSR2, sDR2, sSR3, sDR3 (6 in total)
3. Lower case s plus capitalized letter plus a number, a period and a number are
level-3 processes:
sP1.1, sP1.2, sS2.1, sM1.5, sD3.12 (111 processes in total)
Two groups of exceptions for level-3:
- Enable: sEP.1, sES.3, sEM.4, sED.8, sER.1 (47 in total)
- Return: sSR1.1, sDR1.3, sSR2.2, sDR2.4, sSR3.5, sDR3.1 (27 in total)
• sX = level-1, sXn = level-2, sXn.m = level-3
• SCOR processes always start with a silent* lower case s.
Reading SCOR process tables 19
process ID
process name
process
definition
metrics
best practices
outputs
inputs
Reading the SCOR graphics 20
process steps
process ID SCOR graphics
should be
considered as
example process
configurations
Different supply
inputs outputs chains and
practices may
require different
sequences and/
or workflow
Execution Processes 21
Supply
SupplyChain
Chain
Customer
Plan
Customer
Plan
processes
Customerprocesses
processes
Supplierprocesses
processes
processes
Source
Source Make
Make Deliver
Deliver
Supplier
Supplier
Return
Return Return
Return
› Processes: Source, Make and Deliver

› Objective: value-add, revenue generating
Level-2 Process Differentiation 22
Different capabilities, different characteristics

Stocked Product (sS1, sM1, sD1)
• Replenishment, inventory/plan driven
• Standard Materials sS1
R1 sM1
D1 sD1
I1
• High fill-rate, inventory risk
Make-to-Order (sS2, sM2, sD2)

sS2
R2 sM2
D2 sD2
I2
• Customer order driven/tracing
• Allows configurable materials
sS1
R1
• Longer lead times, lower inventory risk
Engineer-to-Order (sS3, sM3, sD3) sS3

R3 sM3
D3 sD3
I3
• Customer requirements driven/tracing
• Sourcing New Materials sS2
R2
R1
• Longest long lead-times, low fill rates,
lowest inventory risk, expensive process sS1
R1
Level-2 Example Scenarios 23
• Customization Postponement
“a business strategy to delay customization and/or
finalization of a product or service until the last
possible moment.”
sS1 sM1 sM2 sD2
sS1
Plan driven, not yet

Order driven, customization
customized
Level-2 Example Scenarios 24
• Special Order Products in Retail

“our catalog products are not kept as stocked
items; if a customer wants to buy one of these we
will place a purchase order on the manufacturer”
sS2 sD2 sS2 sD2
purchase order
Central warehouse Retail store
Source (Process ID: sS) 25
• Objectives of this process:

› The ordering, delivery, receipt and transfer of raw material items,
subassemblies, product, packaging and/or services.
• Key processes comprehended:
› Schedule product deliveries
› Receive, inspect, and store materials
› Issue material to Make or Deliver processes
› Supplier/Vendor Agreements
› Vendor certification and feedback, sourcing quality
› Manage Raw Materials inventories
› Freight, import/export documentation
• Hint: Receiving processes? Probably Source in SCOR
Source Level-2 Processes 26
• Source Stocked Product (Process ID: sS1)

› The ordering and receiving (replenishment) of standard products,
components and services from existing contracts, based on
material requirement plans.
• Source Make-to-Order Products (Process ID: sS2)
› The ordering and receiving of standard or configurable products,
components and services for a unique and identifiable customer
order (traceability).
• Source Engineer-to-Order Products (Process ID: sS3)
› The vendor selection, ordering and receiving of products or services
that are designed, built or sourced based on the requirements or
specifications of a identifiable customer order or contract.
Source Level-3 Processes 27
Stocked Product (sS1) Make-to-Order (sS2) Engineer-to-Order (sS3)
sS3.1 Identify Sources of

Supply
sS3.2 Select Final Supplier(s)

and Negotiate
sS1.1 Schedule Product sS2.1 Schedule Product sS3.3 Schedule Product

Deliveries Deliveries Deliveries
sS1.2 Receive Product sS2.2 Receive Product sS3.4 Receive Product
sS1.3 Verify Product sS2.3 Verify Product sS3.5 Verify Product
sS1.4 Transfer Product sS2.4 Transfer Product sS3.6 Transfer Product
sS1.5 Authorize Supplier sS2.5 Authorize Supplier sS3.7 Authorize Supplier

Payment Payment Payment
Question: Source Process Flows (05-05) 28
• Which of the following flows is/are correct?

sS2.1 sS2.2 sS2.3 sS2.4 sS2.5
Schedule Receive Verify Transfer Authorize
Product Product Product Product Supplier
Deliveries Payment
sS2.1 sS2.5 sS2.2 sS2.3 sS2.4

Schedule Authorize Receive Verify Transfer
Product Supplier Product Product Product
Deliveries Payment
sS2.1 sS2.2 sS2.4 sS2.5

Schedule Receive Transfer Authorize
Product Product Product Supplier
Deliveries Payment
Exercise: Source Processes 29
• A supply chain manager finds a high percentage of

finished goods need to be reworked as a certain
component, that is ordered specifically for each
customer order, is showing high failure rates when
installed in the product.
› Which (1) level-3 process should catch faulty
materials before they are used in production?
› Which metric indicates the yield of this process?
› Where do this process’ inputs come from?
› Which best practices could this manager consider if he wants to
reduce the time it takes to complete the materials testing?
Make (Process ID: sM) 30

› The conversion process of adding value to products through mixing, separating,
forming, machining, and chemical processes, repair, refurbishment and/or
decomposition.
• Key Processes Comprehended:
› Schedule production, request and receive material from
Source and/or Make processes
› Manufacture, assemble/disassemble and test product,
package, hold/release product
› Managing product quality and engineering changes
› Managing facilities and equipment, production status
workflow and capacity management
› Manage Work-In-Process (WIP) inventories
• Hint: Item number change? Probably Make in SCOR
Make Level-2 Processes 31
• Make-to-Stock (Process ID: sM1)

› The making of standard products and services. Planning
processes determine what, how much and when to make in
order to replenish inventory.
• Make-to-Order (Process ID: sM2)
› The making of standard or configurable products and services
for identifiable customer orders. Customer orders determine
what, how much and when to make. Customer orders can be
traced throughout the Make process.
• Engineer-to-Order (Process ID: sM3)
› The making of specialized products or services that are fully
or partially designed and made based on the unique
requirements and specifications of a identifiable customer
order or contract. Customer orders and specifications can be
traced throughout the Make process.
Make Level-3 Processes 32
Make-to-Stock (sM1) Make-to-Order (sM2) Engineer-to-Order (sM3)

sM3.1 Finalize Production
Engineering
sM1.1 Schedule Production sM2.1 Schedule Production sM3.2 Schedule Production
Activities Activities Activities
sM1.2 Issue Material sM2.2 Issue Sourced/In- sM3.3 Issue Sourced/In-
Process Product Process Product
sM1.3 Produce and Test sM2.3 Produce and Test sM3.4 Produce and Test
sM1.4 Package sM2.4 Package sM3.5 Package
sM1.5 Stage Product sM2.5 Stage Finished sM3.6 Stage Finished Product
Product
sM1.6 Release Product to sM2.6 Release Finished sM3.7 Release Product to
Deliver Product to Deliver Deliver
sM1.7 Waste Disposal sM2.7 Waste Disposal sM3.8 Waste Disposal
Question: Make Process Flows (hasta 33
28-05-14)
• Which of the following flows is/are correct?
sM1.1 sM1.2 sM1.3 sM1.5 sM1.6
Schedule Issue Produce Stage Release
Production Product and Test Product Product to
Activities Deliver
sM1.1 sM1.2 sM1.3 sM1.5

Schedule Issue Produce Stage
Production Product and Test Product
Activities
sM1.2 sM1.3 sM1.5 sM1.6

Issue Produce Stage Release
Product and Test Product Product to
Deliver
Exercise: Make Processes 34
• A production manager finds that her engineer-to-order

shop is unable to meet the daily schedules; down-time,
change-over-times and misalignment between sequence
and materials seem to be the key problems:
› Which (1) level-3 process should she investigate?
› Which metric or metrics should she monitor to
continuously track this problem?
› Where do relevant inputs come from?
› Which best practices could this manager consider?
Deliver (Process ID: sD) 35

› Perform customer-facing order management, shipping and order
fulfillment activities including outbound logistics.
› Product, service and price quotations
› Order entry and maintenance
› Order consolidation, picking, packing, labeling and shipping
› Finished goods storage
› Import/export documentation
› Customer delivery and installation
› Logistics and Freight Management
› Manage Finished Goods inventories
• Hint: Order taking or Shipping? Probably Deliver in SCOR
Deliver Level-2 Processes 36
• Deliver Stocked Product (Process ID: sD1)

› The order management and delivery of standard products (and services) that
are replenished based on actual and/or anticipated orders (forecast).
• Deliver Make-to-Order Product (Process ID: sD2)
› The delivery of standard or configurable products and services that are
obtained (Source or Make) for an identifiable customer order.
• Deliver Engineer-to-Order Product (Process ID: sD3)
› The delivery of specialized products and services that have been fully or
partially designed in negotiation and based on requirements from a customer
order and customer provided specifications
• Deliver Retail Product (Process ID: sD4)
› Simplified model for delivery of stocked goods in a retail store
Deliver Level-3 Processes (1/3) 37
Stocked Products (sD1) Make-to-Order (sD2) Engineer-to-Order (sD3)

sD1.1 Process Inquiry & sD2.1 Process Inquiry & sD3.1 Obtain & Respond to
Quote Quote RFP/RFQ¹
sD1.2 Receive, Enter & sD2.2 Receive, Configure, sD3.2 Negotiate & Receive
Validate Order Enter & Validate Order Contract
sD1.3 Reserve Inventory & sD2.3 Reserve Inventory & sD3.3 Enter Order, Commit
Determine Delivery Determine Delivery Resources & Launch
Date Date Program
sD1.4 Consolidate Orders sD2.4 Consolidate Orders sD3.4 Schedule Installation
sD1.5 Build Loads sD2.5 Build Loads sD3.5 Build Loads
sD1.6 Route Shipments sD2.6 Route Shipments sD3.6 Route Shipments
sD1.7 Select Carriers & Rate sD2.7 Select Carriers & Rate sD3.7 Select Carriers & Rate
Shipments Shipments Shipments
› Order management processes (sDx.1 – sDx.7)

¹ RFP = Request for Proposal, RFQ = Request for Quote
Deliver Process Elements (2/3) 38
Stocked Products (sD1) Make-to-Order (sD2) Engineer-to-Order (sD3)
sD1.8 Receive Product from sD2.8 Receive Product from sD3.8 Receive Product from
Source or Make Source or Make Source or Make
sD1.9 Pick Product sD2.9 Pick Product sD3.9 Pick Product
sD1.10 Pack Product sD2.10 Pack Product sD3.10 Pack Product
sD1.11 Load Product & Create sD2.11 Load Product & Create sD3.11 Load Product & Create
Documentation Documentation Documentation
sD1.12 Ship Product sD2.12 Ship Product sD3.12 Ship Product
sD1.13 Receive & Verify sD2.13 Receive & Verify sD3.13 Receive & Verify
Product by Customer Product by Customer Product by Customer
sD1.14 Install Product sD2.14 Install Product sD3.14 Install Product
sD1.15 Invoice sD2.15 Invoice sD3.15 Invoice
› Material handling/shipping processes (sDx.8 – sDx.14)
Deliver Process Elements (3/3) 39
Retail Products (sD4) • ‘The Retail supply chain model does

sD4.1 Generate Stocking not match up to the Manufacturing
Schedule
supply chain model, therefore
sD4.2 Receive Product at
Store processes are quite different’ or
sD4.3 Pick Product from • Alternative view:
Backroom
› sD4.1 = sS1.1
sD4.4 Stock Shelf
› sD4.2 = sS1.2
sD4.5 Fill Shopping Cart › sD4.3 = sS1.4
› sD4.4 = sD1.8
sD4.6 Checkout
› sD4.5 = sD1.9
sD4.7 Deliver and/or Install

› sD4.6 = sD1.2
› sD4.7 = sD1.13 and sD1.14
Question: Deliver Process Flows (aqui el 4-6-14) 40
• Which direction does the order flow? And materials?
sD1.15
Invoice
sD1.7 sD1.3 sD1.2 sD1.1

Select Carrier Reserve Inv. & Receive, Process
& Rate Determine Enter & Inquiry &
Shipment Delivery Date Validate Order Quote
sD1.8 sD1.9 sD1.10 sD1.11 sD1.12

Receive Pick Product Pack Product Load & Ship Product
Product from Generate
Source/Make Documents
Exercise: Deliver Processes 41
• A warehouse manager observes a large increase of

returns from customers. A quick study of the return
reasons shows the increase is primarily in the category
‘Wrong Product’.
He wonders whether the “order it today, we ship it today”
approach is impacting the quality of his operation.
› Which level-3 processes should he investigate?
› Which of these would he look at first if ‘wrong
product ordered’ is ~90% of the increase?
› Which electronic solutions could this manager consider to
prevent these errors from reoccurring or increasing?
• Draw a map with the material flows

› Use the nodes you identified in the first exercise
› Decide the business model you want to operate:
- Make-to-Stock
- Make-to-Order
- Engineer-to-Order
› For each node identify the level-2 processes
› Focus on the execution processes only:
- Source
- Make
- Deliver
Control processes: Plan, Enable 43
• Plan and Enable processes prepare the supply-chain

to ensure smooth execution
• Planning processes balance the need for resources,
materials, capacity, etc. with the availability of these
resources. This includes prioritization if needed.
• Enable processes address 9-10 control aspects for
the supply chain. They monitor compliance,
deliver information from other process
areas and highlight dependencies on
these other process areas. They also
support maintenance of relationships
with suppliers.
Planning Processes 44
Supply
SupplyChain
Chain
Customer
Plan
Customer
Plan
processes
Customerprocesses
processes
Supplierprocesses
processes
processes
Source
Source Make
Make Deliver
Deliver
Supplier
Supplier
Return
Return Return
Return
› Processes: Plan
› Objective: Drive/coordinate execution processes
Plan (Process ID: sP) 45

› The process of determining capacity, materials, staffing and
resource needed to achieve supply chain targets and the
identification of corrective actions to address shortages in
supply or demand.
• Key Processes Comprehended:
› Supply chain revenue planning/forecasting
› Materials requirement planning
› Factory, repair, maintenance facilities capacity planning
› Distribution requirements planning
› Manage planning parameters
• Hint: Forecasting, S&OP, MRP? Probably Plan in SCOR
Plan Level-2 Processes (1/2) 46
• Plan Supply Chain (Process ID: sP1)

› Planning overall supply chain targets. Plan Supply Chain drives and coordinates
sP2, sP3, sP4 and sP5 plans (Compare to “Revenue plan”, or “Budget” in certain
industries) – see also sEP.10
• Plan Source (Process ID: sP2)
› Planning of material ordering and receiving activities. Plan Source calculates
which materials need to be available when to support the production plan (P3)
and/or the delivery plan (P4). (Compare to “Materials Requirements Plan”)
• Plan Make (Process ID: sP3)
› Planning of production and/or MRO activities. Plan Make ensures the production
resources (capacity) are in place as needed and may generate production
orders. (Compare to “Production Plan” or “Master Production Schedule”)
• Plan Deliver (Process ID: sP4)

› Planning of order management, material handling and transportation
activities. Plan Deliver ensures resources are in place as needed and
may generate or recalculate shipping dates based on material
availability. (Compare to “Shipment Plan”, “Load Planning”)
• Plan Return (Process ID: sP5)
› Planning of the reverse logistics shipping and material handling
capacity. Note: This does not include the maintenance, repair or
overhaul activity planning as those are Make processes and therefore
include in Plan Make.
Plan Supply Chain (sP1) Plan Source (sP2) Plan Make (sP3)
sP1.1 Gather Supply Chain sP2.1 Gather Materials sP3.1 Gather Production
Requirements Requirements Requirements
sP1.2 Gather Supply Chain sP2.2 Gather Material sP3.2 Gather Production
Resources Resources Resources
sP1.3 Balance Supply Chain sP2.3 Balance Material sP3.3 Balance Production
Resources with Resources with Resources with
Requirements Requirements Requirements
sP1.4 Establish & sP2.4 Establish Sourcing sP3.4 Establish Production

Communicate Supply Plans Plans
Chain Plans
Plan Deliver (sP4) Plan Return (sP5)

sP4.1 Gather Delivery sP5.1 Gather Return
Requirements Requirements
sP4.2 Gather Delivery sP5.2 Gather Return

Resources Resources
sP4.3 Balance Delivery sP5.3 Balance Return

Resources with Resources with
Requirements Requirements
sP4.4 Establish Delivery sP5.4 Establish &

Plans Communicate Return
Plans
Plan Processes Similarity 50
• All planning processes operate 4 basic steps:

1. Gathering requirements
2. Gathering resources
3. Balancing resources with requirements
4. Establishing and communicating the plan
Supply chain plans

Planning BOMs sP1.1
Gather
Delivery plans Supply Chain
Orders (sD2 and sD3) Requirements
Return requirements sP1.3 sP1.4 Revenue plans

Balance Establish
Resources w/ Supply Chain
Production schedules Requirements Plans Capacity gaps
Inventory availability sP1.2
WIP inventory Gather
Supply Chain
Sourcing plans Resources Plan Supply Chain (sP1) example shown
Maintenance plans
An Integrated Planning Process 51
• Integrated planning is an iterative process (best practice):

1. The output of Plan Supply Chain is the input for Plan Source, Plan
Make, Plan Deliver and Plan Return
2. The output of Plan Source, Plan Make, Plan Deliver and Plan Return
are inputs for Plan Supply Chain; The output of one cycle is the
input for the next cycle
1 sP3.1
sP3.3 sP3.4 2
sP1.1 sP3.2 sP1.1
Plan Make
sP1.3 sP1.4 sP1.3 sP1.4
sP1.2 sP1.2
Plan Supply Chain sP2.1 Plan Supply Chain
sP2.3 sP2.4
to sP3.2
sP2.2
Plan Source
end full cycle begin next cycle
Exercise: Plan Processes 52
• A supply chain manager finds that several internal

organizations (the factory, the distribution center and
procurement) are not working off the same plan.
Procurement orders more materials than needed, the
factory is filled to capacity (but capacity is too low) and
so on. Answer the following questions:
› Which (1) level-3 process would you investigate?
› What are the key outputs of this process step?
› Where do these outputs go to?
› Which best practices would you recommend?
Enable Processes 53
Supply
Supply Chain
Chain
Supply
Supply Chain
Chain
Customer
Plan
Customer
Customer
Plan
processes
Customer processes
Customerprocesses
processes
processes
Supplier processes
Supplierprocesses
processes
processes
Source Make Deliver
processes
Source Make Deliver
Supplier
Supplier
Supplier
Return
Return Return
Return
› Processes: Enable Plan, Enable Source, Enable Make,

Enable Deliver and Enable Return
Enable Processes 54
• Objective of these processes:

› The Enable processes are five groups of processes under Plan, Source,
Make , Deliver and Return with 3 distinct types of objectives:
- Manage process performance
- Manage process control data
- Manage process relationships
› Managing business rules and monitoring adherence
› Measuring supply chain performance and determine corrective action
› Managing risk and environmental impact
› Managing the supply chain network and facilities
• Hint: Equipment or plant maintenance? Probably Enable
Enable Level-2 Processes 55
• Enable Plan (Process ID: sEP)

› Performance, data and relationship management processes for all types of
planning processes: Plan Supply Chain, Plan Source, Plan Make, Plan Deliver
and Plan Return. Examples: maintain planning cycles, monitor planning
accuracy, manage supply chain risks.
• Enable Source (Process ID: sES)
› Performance, data and relationship management processes for all receiving
activities and supplier related processes. Examples: Monitor supplier
performance, maintain what is sourced where.
• Enable Make (Process ID: sEM)
› Enable management processes for manufacturing, repair and overhaul type
processes. Examples: BOM maintenance, preventive equipment maintenance,
monitoring capacity utilization/shortage.
Enable Level-2 Processes 56
• Enable Deliver (Process ID: sED)

› Performance, data and relationship management processes for all
order management, warehouse and distribution activities and forwarder
related processes. Examples: Monitor order management and
forwarder performance, maintain a distribution network, managing risk.
• Enable Return (Process ID: sER)
› Enable management processes for all types of reverse logistics
processes: MRO returns, defective product returns and excess
inventory returns. Examples: Maintain return approval rules, Maintain
issue tracking software, maintain a return distribution network.
Exercise: Enable Process 57
• A supply chain manager needs 25% increase of the

capacity in her supply chain. She wants to start with the
bottleneck -- manufacturing -- where repairs and
change-over consume about 30% of the working hours
in a day.
› Which level-3 process should she investigate?
› Does a metric exist that measures her issue?
› Which practices could this manager consider
to reduce down-time due to repairs and/or
change-over?
• Consider how the following enable processes

apply to the dinner party.
› What are examples of business rules for:

- Source (shopping) and
- Make (grilling)
› What are examples of capital assets for:

- Make
- Deliver
› What would ‘Align Supply Chain Plan with Financial Plans

(sEP.10)’ mean for your dinner party?
Reverse Processes 59
Supply
SupplyChain
Chain
Customer
Plan
Customer
Plan
processes
Customerprocesses
processes
Supplierprocesses
processes
processes
Source
Source Make
Make Deliver
Deliver
Supplier
Supplier
Return
Return Return
Return
› Processes: Return (Source Return, Deliver Return)

› Objective: reverse material flows
Return (Process ID: sR) 60
• Objective of this process:

› Moving material from customer back through supply chain to address
defects in product, ordering, or manufacturing, or to perform upkeep
activities.
• Key Processes Comprehended
› Identification of the need to return a product or asset
› Requesting and issuing return authorization
› Inspection and disposition decision-making
› Transfer/Disposition of product or asset
› Managing return transportation capacity
› Managing returned material inventories
• Hint: Reverse material flow? Probably Return in SCOR
Return Level-2 Processes 61
• Return Defective Products (Process IDs: sSR1 and sDR1)

› The return of products because the product is defective, the wrong product was
ordered or shipped. The product or order is not (working) according to specifications.
• Return Maintenance, Repair & Overhaul (IDs: sSR2 & sDR2)
› The return of products (assets) to perform preventative maintenance, (end-of-life)
overhaul or repairs due to breakage/aging with use. The product is inspected and
updated due to normal wear and tear.
• Return Excess Products (Process IDs: sSR3 and sDR3)
› The return of excess inventories and inventories of product. The product is new and
in original packaging. Examples are end-of-life excess inventory, re-distribution of
decentralized inventory.
• sSR = Source Return (return to source),

• sDR = Deliver Return (return delivered goods)
Return Configurations 62
• Positioning Source Return and Deliver Return

› Consider the flow of goods, the positions of Source and Deliver
Supplier My Company Customer
Deliver Source Deliver Source
› Now, notice the positions of Source Return and Deliver Return
Supplier My Company Customer
Deliver Source Deliver Source

Return Return Return Return
Return Level-3 Processes (1/2) 63
Defective Products (sSR1) MRO Return (sSR2) Excess Products (sSR3)

sSR1.1 Identify Defective sSR2.1 Identify MRO Product sSR3.1 Identify Excess Product
Product Condition Condition Condition
sSR1.2 Disposition Defective sSR2.2 Disposition MRO sSR3.2 Disposition Excess
Product Product Product
sSR1.3 Request Defective sSR2.3 Request MRO Return sSR3.3 Request Excess Product
Product Return Authorization Return Authorization
Authorization
sSR1.4 Schedule Defective sSR2.4 Schedule MRO sSR3.4 Schedule Excess
Product Shipment Shipment Product Shipment
sSR1.5 Return (Ship) Defective sSR2.5 Return (Ship) MRO sSR3.5 Return (Ship) Excess
Product Product Product
› Decide what to do with the goods (‘disposition’) and

return goods if applicable (sSRx.1 – sSRx.5)
Return Level-3 Processes (2/2) 64
Defective Products (sDR1) MRO Return (sDR2) Excess Products (sDR3)

sDR1.1 Authorize Defective sDR2.1 Authorize MRO Product sDR3.1 Authorize Excess
Product Return Return Product Return
sDR1.2 Schedule Defective sDR2.2 Schedule MRO Product sDR3.2 Schedule Excess
Product Receipt Receipt Product Receipt
sDR1.3 Receive & Verify sDR2.3 Receive & Verify MRO sDR3.3 Receive & Verify
Defective Product Product Excess Product
sDR1.4 Transfer Defective sDR2.4 Transfer MRO Product sDR3.4 Transfer Excess
Product Product
› Evaluate return requests and receive returned goods
• Provide examples for each of the 3 different types

of Return processes for your dinner party.
• Deliver Return
› Return Defective Product
› Return Excess Product
› Return Maintenance, Repair Overhaul
• Source Return
› Return Defective Product
› Return Excess Product
› Return Maintenance, Repair Overhaul
• Hint: think material condition and assets
Process Modeling Using SCOR 66
Drivers for modeling (Why do you model?)

• Business opportunities:
› Strategy Development
› Merger, Acquisition or Divestiture (companies, supply chains)
› Process optimization and Re-engineering
› Standardization, Streamlining and Management alignment
› New business start-up (company and supply chain start-ups)
› Benchmarking
› Process Outsourcing
• Technology services:
› Software implementation (ERP, PLM, QC)
› Workflow & Service Oriented Architecture
Process Modeling Using SCOR 67
• SCOR recognizes 4 types of models. Each model serves a

different purpose:
› Business Scope Diagram: Document the scope of a project or
organization. Communicate the boundaries
› Geographic Map (Geo Map): Describe material flows in a geographic
context; Highlight node¹ complexity or redundancy
› Thread Diagram: Material and information flow diagram, focused on level-2
process connectivity; Describe process strategy, complexity or redundancy
› Workflow Model: Material, Information, and workflow diagram at level- 3 (or
beyond); Highlight information, people and system interactions and issues
• When models are developed in listed sequence (‘top-down’),
each model builds on the previous model and requires limited
incremental information
¹) A node is a logical or geographic entity in a supply chain. E.g: Warehouse, Factory, Store
Creating a Scope Diagram 68
Steps to create a Business Scope Diagram
Supplier My Organization Customer 1. Create or open the business scope diagram
template
2. Identify and enter the customers of your project or
organization
3. Identify and enter the key nodes within your project
or organization
4. Identify and enter the suppliers of your project or
organization
5. Optionally link the nodes to reflect material and/or
1 information flows (using different color/stroke)
Supplier My Organization Customer Supplier My Organization Customer
Flash Inc. mp3 HQ Flash Inc. mp3 HQ

5 5
Battery ltd. Battery ltd.
Factory DC Retail Inc. Factory DC Retail Inc.

Comps Comps
4 3 2
The Result: Scope Diagram 69
Suppliers mp3, Inc. Customers
Flash Inc. mp3 HQ
Battery ltd. Factory Retail, Inc.
Components
Warehouse
Service Providers
Creating a Geographic Map 70
Steps to create the Geographic Map:
1. Create geographic context (a.k.a. the map)
2. Draw and name your customers on the map
a. Identify the level-2 processes
b. List the level-2 processes in the customer node
3. Starting with your customers, repeat for each node:
a. Identify all supplying nodes
b. Draw and name these supplying nodes
c. Identify the level-2 processes
d. List the level-2 processes in each node
1 e. Draw the material flows (connecting arrows)
Repeat until you have included all your suppliers
Drive Supplier
b²
2 Retail, Inc 3 sD1, sP1, sP4 d²
sS1, sP2
UK b
Germany
China
e²
France
India
Spain
MP3 Factory
b¹
sS1, sM1, sD1
d¹
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 70 e¹
Result: The Geographic Map 71
Retail, Inc
sS1, sP2
Drive Supplier
Battery Supplier
HQ sD1, sP1, sP4
sD1, sP1, sP4
sP1, sP2, sD2, sS2
MP3 Factory
sP3, sS1, sM1, sD1
Question: No flow from HQ; Why?

Creating a Thread Diagram 72
Steps to create a SCOR Thread Diagram
1 1. Create or open the thread diagram template
2. Repeat these steps for every relevant node on the
geographic map:
a. Create a column (node) in the appropriate class
b. Create process representations for each node
c. Link the processes in the column (node) to
represent the material flows
d. Link the processes to the previous node’s
Repeat until all relevant nodes have bee created
Suppliers My Organization Customers 3. Optionally add information flows (using different
color/stroke)
2 b c
72
Result: The Thread Diagram (hasta aqui 11-06-14) 73
sP1
sP4
sP2 sP3 sP2
sS2
sD1 sS1 sM1 sD1 sS1
D1 sS1 sD1
Battery mp3 Inc mp3 Inc

Drive Supplier mp3 Inc HQ Retail, Inc
Supplier factory warehouse
Suppliers mp3 Incorporated Customers
Modeling with SCOR 74
Steps to establish SCOR process models (workflows)

1. Obtain generic descriptions (this is what people describe)
2. Map these generic descriptions to SCOR process IDs (normalize)
3. Create swimming lanes to reflect organizational boundaries
4. Create workflow with these SCOR processes
5. Add description to workflows to reflect inputs/outputs of the processes
6. Optionally add other relevant information
1 2
1. Orders are faxed in and entered in OMS sD2.2 Receive, Enter, Validate
2. Every night the orders are scheduled Order
3. The orders are released to the factory sD2.3 Reserve Inventory &
based on the delivery date offset Determine
4. Factory creates and schedules factory Delivery Date
work orders in SFCS
sM2.1 Schedule Production
Activities
Modeling with SCOR 75
Steps to establish SCOR process models
1. Obtain generic descriptions
2. Map these generic descriptions to SCOR process
IDs (normalize)
Customer
fax 3. Create swimming lanes to reflect organizational

3 fax boundaries
fax
4. Create workflow with these SCOR processes
5. Add description to workflows to reflect inputs and
outputs of the processes
6. Optionally add other relevant information
4
My Company
S.O.
sD2.2 sD2.3
OMS OMS
S.O. 5
The Factory
W.O.
sM2.1 sM2.2
SFCS SFCS 6
Result: The Workflow Diagram 76
(Amsterdam)
Retail, inc.
sS1.1
Schedule Prod.
Deliveries
Customer P.O. Delivery Commit

(Cupertino)
mp3 HQ
C.O. C.O.
sD2.2 sD2.3 sS2.1
Receive, Enter, Reserve Inv. Schedule Prod.
Validate Order Calculate Date Deliveries
Inter-Company P.O.
mp3 Factory
(Shenzhen)
sD1.2 sD1.3
Receive, Enter, Reserve Inv.
Validate Order Calculate Date
C.O. = Customer Order, Inv. = Inventory, P.O. = Purchase Order, Prod. = Product
Collecting Process Information 77
• Process is defined by more than just activity
metrics not in SCOR

business rules
measurements best practices
inputs activity outputs
people technology
geography
skills interface
organization platform
Staple-Yourself-To-An-Order
• Proven technique to obtain generic language process descriptions:
• Follow the logical flow of an order through the process.
› Each level-1 process has an order (except Plan): Customer order for Deliver,
Production order for Make, Purchase order for Source and Return Authorization for
Return.
› For each order start with the process of order creation and follow the order and
document each activity until the order is completed/closed.
› Similarly follow the steps of the planning cycles you encounter.
• Finally cover any process you have missed so far;

• Use your SCOR list of processes as a check-list.
› Hint: To obtain generic descriptions for an end-to-end supply chain: Start with Plan,
then Deliver, Make, Source.
› Consider virtual (conference room) staple-yourself-to-an-order
• The purpose of capturing process is to understand it and

remove, adjust or repair it where needed
• Recognize process characteristics:
• 'Measurements': It takes 30 minutes to build…
• 'Business rule': The plan is updated weekly…
• 'People': This is handled by Joanna on Thursdays …
• 'Business rule': This is done to provide .. with .. data..
• 'Inputs' or 'triggers': When we receive the document..
• 'Outputs': We send them the document..
• 'Technology': We print the document from the .. system..
• 'Business rules': We need two copies of the form ..
• Verify hearsay statements, to eliminate perception
Supply Chain Performance
(SECOND – PART)

3-SCOR - Model - PRIMERA PARTE

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

3-SCOR - Model - PRIMERA PARTE

Hochgeladen von

Copyright:

Verfügbare Formate

SCOR Framework

Introducing all elements of the Supply Chain reference model:

• Understand the history and context of SCOR

• Learn how to describe a supply chain with SCOR

• Process frameworks deliver the known concepts of

• Combining 4 techniques into a single integrated

Process Reference Framework

• Viewing a company as processes (domains)

Product & Sales &

• SCOR defines supply chain as: Whether from

Supplier’s Supplier Supplier My Organization Customer Customer’s Customer

Process, arrow indicates material flow direction

• Throughout the Framework training we will use a supply

• Identify the nodes in the dinner party supply chain

• Identificar los nodos (actores) de la cadena de

• Identificar los nodos (actores) de la cadena de

• Identificar los nodos (actores) de la cadena de

Process, no material flow

Level-1 Level-2 Level-3 Level-4 Level-5

Differentiates Differentiates Names Tasks Sequences Steps Links

Defines Scope Differentiates Links Metrics, Job Details Details of

Framework Framework Framework Industry Technology

Standard SCOR definitions Industry/company definitions

Level-1 Level-2 Level-3 Level-4 Level-5

Differentiates Differentiates Names Tasks Sequences Steps Links

Defines Scope Differentiates Links Metrics, Job Details Details of

CxO (COO, CIO) SVP VP Manager Team Lead

Organization focused Activity focused

• SCOR processes have unique identifiers:

› Processes: Source, Make and Deliver

Different capabilities, different characteristics

• High fill-rate, inventory risk

Make-to-Order (sS2, sM2, sD2)

Engineer-to-Order (sS3, sM3, sD3) sS3

sS1 sM1 sM2 sD2

Plan driven, not yet

• Special Order Products in Retail

sS2 sD2 sS2 sD2

Central warehouse Retail store

• Objectives of this process:

• Source Stocked Product (Process ID: sS1)

Stocked Product (sS1) Make-to-Order (sS2) Engineer-to-Order (sS3)

sS3.1 Identify Sources of

sS3.2 Select Final Supplier(s)

sS1.1 Schedule Product sS2.1 Schedule Product sS3.3 Schedule Product

sS1.3 Verify Product sS2.3 Verify Product sS3.5 Verify Product

sS1.4 Transfer Product sS2.4 Transfer Product sS3.6 Transfer Product

sS1.5 Authorize Supplier sS2.5 Authorize Supplier sS3.7 Authorize Supplier

• Which of the following flows is/are correct?

sS2.1 sS2.5 sS2.2 sS2.3 sS2.4

sS2.1 sS2.2 sS2.4 sS2.5

• A supply chain manager finds a high percentage of

• Objectives of this process:

• Make-to-Stock (Process ID: sM1)

Make-to-Stock (sM1) Make-to-Order (sM2) Engineer-to-Order (sM3)

sM1.1 sM1.2 sM1.3 sM1.5

sM1.2 sM1.3 sM1.5 sM1.6

• A production manager finds that her engineer-to-order

• Objectives of this process:

• Deliver Stocked Product (Process ID: sD1)

Stocked Products (sD1) Make-to-Order (sD2) Engineer-to-Order (sD3)

sD1.4 Consolidate Orders sD2.4 Consolidate Orders sD3.4 Schedule Installation

sD1.5 Build Loads sD2.5 Build Loads sD3.5 Build Loads