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Ozgun C. Demirag
Capture the as-is Capture the as-is state of aaprocess state of process and derive the and derive the desired to-be desired to-be future state future state
Quantify the Quantify the operational operational performance of performance of similar companies similar companies and establish and establish internal targets internal targets based on best-inbased on best-inclass results class results
Benchmarking
Characterize the Characterize the management management practices and practices and software solutions software solutions that result in bestthat result in bestin-classPractices Best in-class performance Analysis performance
SCOR contains:
Standard descriptions of management processes A framework of relationships among the standard processes Standard metrics to measure process performance Management practices that produce best-in-class performance
Deliver
Source Return
Make
Deliver Return
Source Return
Make
Deliver Return
Source Return
Make
Deliver Return
Source
Suppliers Supplier
Your Company
Customers Customer
Level
#
1
Comments Level 1 defines the scope and content for the Supply chain Operations Reference-model. Here basis of competition performance targets are set.
Deliver Return
A companys supply chain can be configured-toorder at Level 2 from the core process categories. Companies implement their operations strategy through the configuration they choose for their supply chain. Level 3 defines a companys ability to compete successfully in its chosen markets, and consists of: Process element definitions Process element information inputs, and outputs Process performance metrics Best practices, where applicable System capabilities required to support best practices Systems/tools
P1.3
Balance Production Resources with Supply-Chain Requirements
P1.4
Establish and Communicate Supply-Chain Plans
P1.2
Identify, Assess, and Aggregate Supply-Chain Requirements
p O n a h C y ppu S i l
Not in Scope
Companies implement specific supply-chain management practices at this level. Level 4 defines practices to achieve competitive advantage and to adapt to changing business conditions.
Customer-Facing
Supply Chain Reliability Responsiveness Flexibility
Internal-Facing
Cost
Assets
P1: Plan Supply Chain P2-P5: Plan SCOR Process S1: Source Stocked Product S3: Source Engineer-to-Order Product S2: Source Make-to-Order Product M1: Make-to-Stock M2: Make-to-Order M3: Engineer-to-Order D1: Deliver Stocked Product D2: Deliver Make-to-Order Product D3: Deliver Engineer-to-Order Product D4: Deliver Retail Product (New in Version 6.0) SR1/DR1: Return Defective Product (Source Return/Deliver Return) SR2: Source Return MRO Product (Maintenance, Repair and Overhaul) DR2: Deliver Return MRO Product SR3/DR3: Return Excess Product (Source Return/Deliver Return) EP, ES, EM, ED, ER: Enable corresponding SCOR Processes
Example Continued Process Number: S1 Process Category: Source Stocked Product Process Category Definition The procurement, delivery, receipt and transfer of raw material items, subassemblies, product and or services. Performance Attributes Reliability Responsiveness Flexibility Metric % Orders/lines processed complete Total Source Cycle Time to Completion Time and Cost related to Expediting the Sourcing Processes of Procurement, Delivery, Receiving and Transfer. Product Acquisition Costs Inventory DOS Features None Identified
Cost Assets Best Practices Joint Service Agreements Alliance and Leverage agreements
Example Continued
Process Element: Transfer Product Process Element Definition
The transfer of accepted product to the appropriate stocking location within the supply chain. This includes all of the activities associated with repackaging, staging, transferring and stocking product. For service this is the transfer or application of service to the final customer or end user. Performance Attributes Reliability Metric % Product transferred damage free % Product transferred complete % Product transferred on-time to demand requirement % Product transferred without transaction errors Transfer Cycle Time Time and Cost Reduction related to Expediting the Transfer Process. Transfer & Product storage costs as a % of Product Acquisition Costs Inventory DOS Features
Drive deliveries directly to stock or point-of-use Pay on receipt in manufacturing to reduce costs and cycle time Specify delivery location and time (to the minute) Specify delivery sequence Capability Transfer to Organization None Identified
Example Continued
Inputs Product Pull Signals Product Inventory Location WIP Inventory Location Finished Goods Inventory Location Outputs Inventory Availability
Plan
Source
Make M
Deliver D
ES.4 EM ED Plan P2.2 Source ES.4 Make M1.2, M2.2, M3.3 Deliver D1.8, D4.2
D4.1 D4.4
Suppliers Supplier
Suppliers
Assemble/ Package
Distribution Centers
Americas--->
Europe--->
Asia--->
Observations
SCOR describes processes not functions. In other words, the Model focuses on the activity involved, not the person or organizational element that performs the activity. Implementation level, Level 4, is not described in SCOR.
References
SCOR 6.0 Overview Booklet
http://www.isye.gatech.edu/~lfm/8851/Sources/SCOR/SCOR %206.0%20OverviewBooklet.pdf
Supply-Chain Operations Reference-model (SCOR) 6.0 Introduction (in setup files) About ARIS: http://www.changeware.net/esitteet/scor-faq.pdf About ARIS: http://www.changeware.net/esitteet/scor-faq.pdf