Overview Presentation

Supply Chain Operations Reference-model (SCOR)

June 2003

 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 July 2004

SCC Organization - Chapters and Staffing

SCC Global SCC Global Headquarters Headquarters Pittsburgh, Pittsburgh, Pennsylvania, USA Pennsylvania, USA Japan Japan Chapter Chapter Tokyo, Japan Tokyo, Japan NEC NEC South East Asia South East Asia Chapter Singapore Chapter Singapore Venture Inc. Venture Inc. Australia/New Zealand Australia/New Zealand Chapter Sydney, Chapter Sydney, Australia Australia Disney Disney Europe Europe North North America America Chapter Chapter Brazil Chapter Brazil Chapter Effective Effective 9/1/03 9/1/03 Southern Africa Southern Africa Johannesburg, South Johannesburg, South Africa Africa UTi UTi Oslo, Norway Oslo, Norway Modus Media Modus Media

SCOR Overview July 2004

SCC Leadership Teams

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

Europe

Australia/New Zealand

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

Board of Directors

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

South East Asia

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

North America

China SCOR Overview July 2004

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

Japan

Membership
Member by Type
Practitioners Software Vendors Consultants Non-Profits

Members by Region
Europe Japan SEA ANZ USA/Canada/Mex ROW SAfrica

800+ SCC members, Composition 40%: Practitioners 25%: Enabling Technology Providers 20%: Consultants 15%: Universities, Associations, Government Organizations
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SCOR Overview July 2004

Current Technical Projects

SCOR Technical Development Steering Committee C - Tom Phelps HP V Paul Schiller BP Amoco Returns C- Lt Col Scott Koster (USMC) MRO Returns C- Joe Burak (Boeing) Best Practice C- Paul Janke (Nokia)

Metrics C- Michael Memmel Siemens

SCOR Overview July 2004

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
Benchmarking Best Practices Analysis Process Reference Model Capture the as-is state Capture the as-is state of aaprocess and derive of process and derive the desired to-be future the desired to-be future state 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

Business Process Reengineering 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

SCOR Overview July 2004

Characterize the Characterize the management management practices and practices and software solutions software solutions that result in bestthat result in bestin-class in-class performance performance

SCOR is structured around five distinct management processes

Plan

Deliver Return

Source Return

Make

Deliver Return

Source Return

Make

Deliver Return

Source Return

Make

Deliver Return

Source Return

Suppliers Supplier

Supplier
Internal or External

Your Company

Customer
Internal or External

Customers Customer

SCOR Model
Building Block Approach Processes Best Practice
SCOR Overview July 2004

Metrics Technology

SCOR Overview July 2004

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SCOR Overview July 2004

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SCOR Overview July 2004

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Supply-Chain Operations Reference-model (SCOR) 6.1 - Processes

Plan
P2 Plan Source P1 Plan Supply Chain P3 Plan Make P4 Plan Deliver P5 Plan Returns

Suppliers

Source
S1 Source Stocked Products S2 Source MTO Products

Make
M1 Make-to-Stock M2 Make-to-Order

Deliver
D1 Deliver Stocked Products D2 Deliver MTO Products

S3 Source ETO Products

M3 Engineer-to-Order

D3 Deliver ETO Products

D4 Deliver Retail Products

Return Source

Return Deliver

Enable
SCOR Overview July 2004

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Customers

SCOR Boundaries

SCOR Spans: All supplier / customer interactions Order entry through paid invoice All physical material transactions From your suppliers supplier to your customers 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 July 2004

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SCOR Boundaries (contd)

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 July 2004

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SCOR Project Roadmap

Analyze Basis of Competition Operations Strategy
Competitive Performance Requirements Performance Metrics Supply Chain Scorecard Scorecard Gap Analysis Project Plan

SCOR Level 1

Configure supply chain

Material Flow

AS IS Geographic Map AS IS Thread Diagram Design Specifications TO BE Thread Diagram TO BE Geographic Map

SCOR Level 2

Align Performance Levels, Practices, and Systems

Information and Work Flow

AS IS Level 2, 3, and 4 Maps Disconnects Design Specifications TO BE Level 2, 3, and 4 Maps

SCOR Level 3

Implement Implement supply chain supply chain Processes and Processes and Systems Systems SCOR Overview July 2004

Develop, Test, and Roll Out

Organization Technology Process People

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Mapping material flow

(S1, D1) (SR1,DR1,DR3)

Manufacturing
Warehouse (S1, S2, M1, D1) (SR1,,DR1)

s t o

s t o

(S1) (SR1,SR3) Warehouse (S1, D1) (SR1,DR1,DR3) Other Suppliers (D1) Warehouse (S1, D1) (SR1, DR3) Latin American Suppliers (D1)

European Supplier (S1) (D2) (SR1,SR3) (DR1)

s t o

Warehouse (S1, D1) (SR1,DR1,DR3)

s t o

(S1) (SR1,SR3)

(S1) (SR1,SR3)

SCOR Overview July 2004

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Mapping the execution processes

Americas Distributors S1 SR1 European RM Supplier S2 M2 D2 SR3 S2 M1 DR1 SR1 DR1 DR3 S1 Key Other RM Suppliers S1 M1 D1 Alpha Regional Warehouses SR1 SR3 DR1 DR3 SR1 SR3 D1 S1 D1 S1

RM Suppliers

ALPHA

Distributors

SCOR Overview July 2004

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Identifying Plan Activities

P1 P1 P1 P1 P1 P1

P2 P2

P3 P3 P P 4 4 P2 P2 P P 3 3 P P 4 4

P P 2 2

P P 4 4

European RM Supplier

S2

M2

D2

Key Other RM Suppliers

S1

M1

D1

S2

M1

D1

S1

D1

S1

S1 RM Suppliers ALPHA Alpha Regional Warehouses Consumer Distributors

SCOR Overview July 2004

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Linking Supply Chain Performance Attributes and Level 1 Metrics

Performance Attribute
Supply Chain Delivery Reliability

Performance Attribute Definition

Level 1 Metric

Supply Chain Responsiveness Supply Chain Flexibility Supply Chain Costs

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 velocity at which a 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.

Delivery Performance Fill Rates Perfect Order Fulfillment Order Fulfillment Lead Times Supply Chain Response Time Production Flexibility Cost of Goods Sold Total Supply Chain Management Costs Value-Added Productivity Warranty / Returns Processing Costs

Supply Chain Asset Management Efficiency

The effectiveness of an organization in managing assets to support demand satisfaction. This includes the management of all assets: fixed and working capital.

Cash-to-Cash Cycle Time Inventory Days of Supply Asset Turns

SCOR Overview July 2004

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Level 1 Performance Metrics

Customer-Facing Internal-Facing
Flexibility Cost Assets

SCOR Level 1 supply chain Management

Delivery performance Fill rate Perfect order fulfillment Order fulfillment lead time Supply Chain Response Time Production flexibility Total SCM management cost Cost of Goods Sold Value-added productivity Warranty cost or returns processing cost Cash-to-cash cycle time Inventory days of supply Asset SCOR Overview turns July 2004

Supply Chain Reliability

Responsiveness

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Supply Chain Scorecard & Gap Analysis

Supply Chain SCORcard
Overview Metrics SCOR Level 1 Metrics Supply Chain Reliability EXTERNAL
Delivery Performance to Commit Date Fill Rates Performance Versus Competitive Population

Actual 50% 63% 0% 35 days 97 days 45 days 19% NA

Parity 85% 94% 80% 7 days 82 days 30 days 13% NA

Advantage 90% 96% 85% 5 days 55 days 25 days 8% NA

Superior 95% 98% 90% 3 days 13 days 20 days 3%

Value from Improvements

Perfect Order Fulfillment

$30M Revenue $30M Revenue Key enabler to cost and asset improvements

Responsiveness Flexibility

Order Fulfillment Lead times Supply Chain Response Time Production Flexibility Total SCM Management Cost

$30M Indirect Cost

INTERNAL

Cost

Warranty Cost

NA

NA

Value Added Employee Productivity Inventory Days of Supply

NA 119 days 196 days 2.2 turns

$156K 55 days 80 days 8 turns

$306K 38 days 46 days 12 turns

$460K 22 days 28 days 19 turns

NA NA $7 M Capital Charge NA

Assets

Cash-to-Cash Cycle Time Net Asset Turns (Working Capital)

SCOR Overview July 2004

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Decomposing Metrics
Cycle Time Perfect Order Fulfillment

Revenue Accounts Receivable Cash Flow

Supplier on time delivery

Schedule Achievement

Perfect Order Fulfillment On Time On Time In Full Docs Damage Perfect Order Fulfillment D1 S1

Delivery Performance European RM Supplier

In Full Docs

S2

M2

D2 S2

Damage Supplier on time delivery M1 S1 D1 S1

Key Other RM Suppliers

S1

M1

D1

RM Suppliers SCOR Overview July 2004

ALPHA

Alpha Regional Warehouses

Consumer Consumer

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Performance Measurement
Cycle Time

Revenue Accounts Receivable Cash Flow

Inventor y Metrics Conflict

Supplier Supplier on time delivery on time delivery Actual 85% Delivery Delivery Performance Performance Actual 99%

Perfect Order Fulfillment Perfect Order Fulfillment Goal 95%

Schedule Schedule Achievement Achievement Actual 95%

Perfect Order Fulfillment Order Perfect Fulfillment Perfect Order Actual 90% On TimeFulfillment On Time Actual - 85% In Full In Full Docs Docs Damage Perfect Order Fulfillment

European RM Supplier

S2

M2

D2 S2

Key Other RM Suppliers

S1

M1

D1 S1

UnderDamage performance Supplier Process time delivery on Systems D1 M1 S1

UnderS1 performance Process Systems

D1 Consumer Consumer Consumer

RM Suppliers RM Suppliers SCOR Overview July 2004

ALPHA

Alpha Regional Warehouses

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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 July 2004

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ATT Wireless Fixed Wireless Operations

F ix e d W ir e le s s O p e r a tio n s M a n a g e m e n t
R e v i s i o n 0Y 0A p0r i l 0 , 0

P ro g ra m M anagem ent
S e r v ic e R e a l iz a t i o n P r o c es s P0 0 . P e r f o r m M a k e /B u y D e c i s io n M a k i n g P0 0 . R e c o n f ig u r e th e S u p p ly C h a i n P0 0 . P e rf o r m L o n g T e r m C a p a c i ty a n d R e s o u r c e P l a n n in g P0 0 0 . . L on g T er m C a pa c ity

P la n
P la n In f r a s tr u c t u r e
P0 0 . P e r f o rm B u s i n es s P l a n n in g P0 0 . M anage Prod uct L ine P l an s P0 0 . M a n a g e P la n n i n g D a ta P0 0 . P e r f o r m S u p p l y C h a in B en ch M a r ki n g P0 0 . M an ag e B u s in e s s R u le s

P r o d u c t D e v e l o p m e n t a n d C o n f ig u r a t io n M anagem ent
D o c u m e nt R e le a s e S o f t w a r e D e s ig n R e lea se H a r d w a r e D e s ig n R el e a se M e t a p h a se P r o d u ct S tr u c tu r e a n d D e si g n

P0 .0 .0 P e r fo r m M a k e/B uy P r o d u c t R e a l i z a t io n P r o c es s

P0 0 0 . . R e c o n f ig u r e t h e Su p p ly C h ain

P0 0 .0 . G o a ls / S t r a t e g y

P0 .0 .0 M a n a g e F ie ld S p a r e 0 P l0 n 0 0 0 s a P0 .0 .0 M a n u fa c tu r i n g In p u t t o S R P

P0 0 0 . . M a n a g e P la n n in g D a ta P0 0 0 . . P l an ne r C o d e A ss i g n m en t a n d M a in t e n a n c e

P0 .0 .0 P e r fo r m S u p p l y C h a in B e n c h M a r k in g

P0 0 0 . . V alu es an d P r i n c i p le s P0 0 0 . . O p e r a tio n s P o li c i e s

P0 0 0 . . O p e r a t i o n s S t a f f in g

P0 0 .0 . B u d g et P la n n i n g

P0 .0 .0 M a n u fa c tu r i n g I n p u t t o t he P R P P0 .0 .0 M a n a g e F ie ld C o n f ig u r a t i o n s P0 .0 .0 F i e ld C h a n g e M a na gem ent

P0 0 0 . . S u p p li e r C a p a c i t y P la n

P0 0 .0 . St a n d a r d C ost

D o c u m e nt A r c hi ve

S o ft w a r e A r c h iv e

D o 0 . 0 0 0C00. . ) c ( 0 P r o d u c t R e le a s e a n d C h a n g e P r o c e s s

D o 0 0 0 (0 0 0 . ) c 0 .0 C P r o d u c t N u m b e r in g

P0 .0 0 . P r od u ct C ost M a n a g e m e nt

P0 .0 .0 N P I P 0o c 0 s s 0 0 0 r e

S o u rc e
S o u r c e In fr a st ru c tu r e
S0 0 . E s t a b li s h N e w M a te r ia l S0 0 0 . . P a r t C r e a tio n P r o c e ss fo r P u r ch a s ed C o m p o n e n ts S0 0 0 . . Q u a li fi e d P a r t P ro ce ss S0 0 . E s t a b li s h N e w S o u rce S0 .0 .0 - R S u p p l ie r S e l e c t i o n a n d q u a l i f ic a t i o n S0 0 . M a n a g e S u p p li e r A g r e em en ts S0 0 .0 . S u p p l ie r P C N P r oc e d u re S0 0 . M a i n ta in S o u r c e P l a n n i n g a n d E x e c u t io n D a ta S0 0 . D e te r m i n e E m e r g i n g S u p p li e r T e c h n o l o g ie s S0 .0 .0 S tr ate gy D e v e lo p m e n t S0 0 0 . M a n a g e M a t e r ia l I n v e n to r y S0 .0 .0 S t o ck R o o m I n v e n to r y M g m t . S0 0 0 . . S u p p l ie r In v e n t o ry M0 0 . C r e a t e / M a n g e S it e R e c ip e s /P r o c e s s F l o w s M0 0. M a n a g e E n g i n e e r in g / R e c ip e C h a n g es M0 0 0 . . M anage E n g in e e r i n g C h a ng e I m p le m e n ta ti on M0 0. M a i n t a in E q u i p m e n t / F a c i li ti e s M0 0 0 . . F a c il it i e s M a in t e n a n c e M0 0 0 . . M a i n t a in & C a li b r a t e E q u i pm e n t M0 0 . C o n t r o l P r o d u c t io n P r o c e s se s M0 0 0 . . E S D P r o ce ss a n d A u d it

M ake
M a n u f a c t u r in g I n fr a s tr u ct u re
M0 0. M a n a g e P r o d u c t io n M a te r ia l s M0 0 0. . P C A Floor S t ock M0 0 0. . S y s t e m A s s em b l y & T es t F l o o r S t o c k M0 0 0 . . O v e r a l l M a t e r ia l Flow M0 0 . M o n i to r P ro d u c t io n S t a tu s M0 0 . M o n i to r E q u ip m e n t S ta tu s M0 0 0 . . M o n it o r P r o d . E q u ip m e n t M0 0. 0 . L a b o r T r a c k in g M0 0. 0 . B O M V a r ia n c e a t B a c k f lu s h M0 0 0 . . A s s e t T r a c k in g M0 0 . M a n a g e P r o d u cti o n Q u a l it y P o l i c ie s M0 0 . M a n a g e S h o r t- t e r m C a p a c i ty M0 0 0 . . S h o r t T er m C a p a c it y P la n P0 0 0 . . D e t e r m i n in g S t a f f in g R e q u ir e m e n t s M0 0. 0 M a n u f a c tu r i n g T r a in i n g D0 0 . M a n a g e P ro d u c t a n d P r o c e s s D a ta D0 0 0 . . M a n a g e I n d i ca t iv e D a ta D0 0 0 . . O utboun d E D I Pr oc ess D0 0 0 . . P r o d u c t B a r co d e D e l iv e r y D0 .0 M an age C h ann el B u s in e s s R u le s D0 0 . M a n a g e O r d e r R u le s D0 0 . M a n a g e D e li v e r In v e n t o r ie s

D e li v e r
D e li v e r I n f ra s t ru c tu re
D0 0 . M an age W areh ouse N e tw o r k D0 0 . M an age W areho uses D0 0 . M a n a g e D e liv e r y Q u a li ty D0 0 . M a n a g e D e liv e r y C o n tra c ts D0 0 . E s t a b lis h N e w D e liv e r y C h a n n e ls D0 0 0 . M a n a g e O u tb o u n d T r a n s p o r t a t io n

S0 .0 .0 T ec h n o lo g y M a na ge m e nt Tea m s (TM T)

M0 0 0 . . C r ea t e M a n u f a c t u r in g B i l l o f M a t e r ia l

M0 0 0 . . C L C A P r o c e ss M0 0 0 . . N o n C o n fo r m i n g M a te r i a l

M0 0. 0. T ec h n i c a l T r a ini n g M0 0. 0. T e a m B u i ld i ng

D0 0 0 . . C L E P r o v i s io n i n g D0 0 0 . . B ase S ta tio n P r o v is i o n in g D0 0 0 . . F ie ld R e t u r n s

D0 0 0 . . F i e ld I n v . C y c l e C ount D0 0 0 . . E & O M a t er i a l P r o c e s s in g D0 0 0 . . F i e l d I n v e n t o r ie s

D0 0 0 . . C o n s ig n m e n t W a r e ho u s e P r o c es s

D0 0 0 . . M a n a g e D e li v e r y Q u a l it y

D0 0 0 . . N ew C ity I n t r o d u c t io n

D0 0 0 . . O u tb ou nd L o g i s t ic s

S0 0 0 . . C ycle C ou n t

M0 0 0 . . M e tho d s D is tr i b u t io n

D0 0 0 . . I n T r a n si t T r a c k in g

S0 0 0 . . P a r t P r e f e re n c e

M0 0 0 . . R e c a l le d P r o d u c t M0 0 0 . . O p e r a t i o n s Q u a li t y M a n a g e m en t M0 0 0 . . M e a su r i n g o f B a se F a u l t le s s I n s t a l ls M0 0 0 . . M e a s u r in g o f R U F a u l t le s s I n s t a l ls

D0 0 0 . . F in i s h e d G o o d s D0 0 0 . . C o n si g n m en t F in i s h e d G o o d s

S0 0 . M an a g e I n c o m in g F re ig h t

S0 0 . M a n a g e S u p p li e r C e r ti fi c a ti o n

S0 0 . M a n a g e S o u r c in g B u s in e s s R u le s

S0 0 . A u t h o r i z e S u p p li e r P ay m e n t

S0 0 .0 . I n b o u n d F r e ig h t M a n a g em e n t

S0 .0 0 . S u p p l ie r P r e f e r e n c e

S0 .0 . 0 A c co u nts P a y a b le

M0 0 0 . . O u t of B o x A u d it

P la n n0in g P
P0 0 . I d e n ti f y & A g g r e g a te P r o d u c t io n R q m ts P0 0 . I d e n t .& A g g r e g a t e P r o d u c ti o n R e s o u rc e s P0 0 0 . . P r o d u c ti o n M a n a g em e n t P0 0 0 . . V o lu m e D ep l oym e nt

" P la n M a k e "
P0 0 . B a la n c e R e s o u r c e s W it h P r o d u c t i o n R q m ts P0 .0 E s t a b l i s h D e t a il e d P r o d u c t i o n P la n s D0 0. I d e n t if y , P r io r it i z e a n d A g g r e g a te D e li v e r y R e q u i r e m e n ts

P l a n n0i n g P
D0 0 . I d e n ti f y , A s s e s s a n d A g g r e g a te D e li v e r y R e so u rce s D0 0 0 . . A g g r e ga te R e so u r ce s

" P l a n D e l iv e r "
D0 0 . B a l a n c e D e l iv e r y R e s o u rc e s w it h D e li v e ry R e q u i re m e n t s D0 0 . E s t a b l is h D e ta i le d D e li ve r y P la n s

P0 0 0 . . C r e ate M P S

D0 0 0 . . A g g r e ga te R e q u ir e m en ts P0 0 0 . . C r e a te M R P O r d e r R e co m m e n d a tio ns

P0 0 0 . . R e v iew an d B a la n c e M P S

D0 0 0 . . B a la n c e R e so u r c e s w i th R e q u i r em e n t s

D0 0 0 . . E s t a b l is h D e t a i le d P l a n s

P l a n n0 n g P i
P0 0 . P r i o r it iz e a n d A g g re g a t e M a ter ia l R e q . P0 0 . A s s e s s a n d A g g re g a t e R e so u rc e s

" P la n S ou r ce "
P0 0 . B a l a n c e R e s o u r c e s W i th M a t e r i a l R e q u i re m e n t s P0 0 . E s t a b li s h D e t a i l e d S o u rc i n g P la n s

S o u r c e M a k e to O r d e r M a t e r i a l
S0 0 . S c h e d u l e M a t e r ia l D e li v e r i e s S0 0 . R e ce iv e & V er if y M a t e r ia l S0 0 0 . . S t o c k ro o m a n d R e c e i v in g P r o c e s s S0 0 0 . . P rogr a m Pa rts S0 0 . T r a n sf er M a t e r ia l M0 0. S c h e d u l e M a n u f a c t u r in g A c t iv it ie s M0 0 0. . P ro d uction S c h e d u l in g

E x e c u 0i o n M t
M0 0. I s s u e M a t e r ia l

" M a k e to O rd e r (D i s c r e t e M a n u f a c t u r in g )"
M0 0 . M a n u fa ct u r e an d T e st M0 0. P a ck a g e M0 0 . S ta g e P ro d u ct D0 0 0 . . O u t b o u n d L o g is t i c s K ev i n M o n a h a n

D e l i v0e r D

" D e l iv e r M a k e t o O r d e r P r o d u c t s
D0 0 0 . . S a l es O r d e r P r o c e ss K e v in M o n a h a n

D0 0 0 . . P l a n , B u il d , a n d C o n s o li d a t e L o a d s K evin M on ah an M e n lo L o g i s t ic s D0 0 . C o n s o li d a t e O rd e r s

000P . . P r o v i s io n i n g

D0 0 . S e le c t C a r r ie r s & R a te S h ip m e n ts

D0 0 . R o u te S h i p m e n t s

D0 0 . P la n & B u i ld L o a d s

D0 0 . R e s e rv e R e s o u r c e s a n d S e t D e li v e r y D a t e s

D0 0 . V a li d a te O rd er

D0 0 . P ro c es s I n q u iry & Q u o te

M0 0 0. . P ro d uction S c h e d u le R e v i e w

D0 0 . P ic k S ta g e d P ro d u c t D0 0 0 . . P ick S ta g e d P r od u ct

D0 0 . L o a d V e h ic l e G e n e r a t e S h ip D o c s & Ship D0 0 0 . . L o a d V e h ic le G e n . S h i p D o c s & S h ip

D0 0 0 . R e c e iv e & V e r if y P r o d u c t a t C u s t o m e r S i te D0 0 0 . . R e c e i v e & V e r if y Pr od u c t at W are h ou ses

D0 0 0 . T e s t & I n s ta l l Prod uct D0 0 0 . . T e s t a n d I n s t a ll CLEs

D0 0 0 . I n v o i ce & R ec e iv e P ay m e n t

Legend
0 . D o c u m e n t a c ce p t e d b y R A C I t ea m a n d b a s e li n e d 0 . R e view b y M a n u f a c t u r in g E n g i n e e r in g co m p l e t e a n d d o c u m en t se n t o u t f o r R A C I a p p ro v a l o f f ina l d oc u m e nt 0 . P r o c e ss o w ne r i s f in i s h e d w r i t in g docu ment. D o c u m e n t is a w a it i n g M a n u f a c t u r in g E n g i n e e r in g r e v ie w . 0 . H as a P r o ce ss O w n e r , B u t th e P r o c e s s is N o t D oc u m e nt e d

M0 0 0. . M o d if y S c h e d u le a nd E x ec u te

M0 0 0. . D e li v e r R e p o r t s t o C u sto m e r s

M0 0 0 . . K ittin g a n d I s s u in g M a t e r i a l

M0 0 0 . . P C B A ss e m b ly M0 0 0 . . B a s e A s s e m b ly a n d T e st M0 0 0 . . R U A ssem b ly

M0 0 0 0 . . P C A T est

M0 0 0 . . P a ck a g e M e nl o

M0 0 0 . . S ta ge P rodu ct

D0 0 0 . . R e c e i v e & V e r if y Pr od u c t at C u st o m er S i t e M0 0 0 0 . . R U T est

D0 0 0 . . T e s t & I n s ta ll B a s es

D0 0 0 . . T r a n s fe r A s s e t t o I n s t a ll e d B a s e A c co u n t

S0 0 .0 . V al ue A dd e d D i s tr ib u to r ( V A D )

M0 0 0 . . I n te r n al R e tu r n P r oc es s

S0 0 .0 . A u t o R e p l e n is h P r o c e ss M0 0 0 . . P r o d u c t io n O p e r a t io n s R e tu r n C e n te r

S0 0 0 . . F i e l d D is c r e p a n t R e c eip ts S0 0 .0 . E x te r n a l D r o p S h i p P r o c e ss

S0 0 0 . . R e ce iv e a n d V e r i fy M a t e r i a l

M0 0 0 . . S tag e P r od u c t O u t s id e W a r e h o u ses

M a te r i a l R e c eiv e d E M a il

0 . N o P r oc e ss O w n er a n d t h e P r o c e s s is N o t D o cu m e n t ed

M in M a x M a te r i a l In put M f g P ro

M o ve to F i n is h e d G oods M fg Pro

DD TS

B il l o f L ad in g & M an i fe st M f g P ro

0 . W il l N o t B e U s e d T h is Y ea r a n d W il l N o t B e D o c u m e n te d U n t il N e e d e d M o v e to T ruck M f g P ro CLE s I n s tal le d M fg P r o S a le s O rd er s M fg P ro

SCOR Overview I n f oJulyn 2004I n p u t s a n d r m a t io S y s t e m s

P la n n e d O rd e r R eport M fg P r o

F i rm P u r ch a se O rd e r s M f g P ro

I n v e n to r y T r a n s a c t io n M fg Pro

I n v e n t o ry T r a n s a c t io n M f g P ro

S e t C h an g e E f f e c ti v it ie s M fg P ro

F o rec a st L o ad ed M f g P ro

P la n n e d W ork O r d ers M f g P ro

M a te r i a l A l lo c a t e d M f g P ro

M ove M a t e ri a l to F l o o r M fg P ro

W I P M a te r i a l M o v e s a n d Q u a li t y D a ta S y st em M i t ro n

O u tp u ts

S a le s O r d e rs M f g P ro

R e lea s e d W ork O r d e rs M f g P ro

M a te r ia l P ic k L is t s M fg P ro

26

B a c k f lu s h A f te r T e s t M f g P ro

M o v e to F in i s h e d G ood s M fg P r o

B a se S t a ti o n C o m m i s sio n ed M fg P ro

Intel As-Is Modeled in Easy SCOR

Suppliers Supplier Suppliers Assemble/ Package Distribution Centers Geo Ports of Entry

Americas--->

Europe--->

Asia--->

SCOR Overview July 2004

27

Goldn Plump Supply Chain Planning

E xec u e tiv

G ld o 'n P m S p ly C ain lu p u p h P n gP c lan in ro ess M ap

L eadership R eview

Ud p ated A n n ual B siness u P w action p lan / lan

S ale s
P rocess Inquiry & Q uote R eceive, E nter, & V alidate O rder R eserve Inventory & D eterm ine D elivery D ate

S trategy G als, , o A nu B sin n al u ess P n la P Sp lan u ply C ain (P ) 0 h 0 -0 A g ate 0 0 g reg D an em d S p ly up B alance

M ark etin g

D aily O e rd rs

P lan n ing

P S rce (P lan ou 00 M - 0 aterial R u eq irem ts en R eso rces u B alan ce

0 )

00 d - 0 ay O utso rce u N s eed

P lan M ake (P ) 0 00 P du - 0 ro ctio n R u eq irem ts en R eso rces u B alan ce

P lan D eliver (P ) 00 Fu - 0 lfillm t en R equ en irm ts R esou rces B alan ce

0 -0 d and 0 0 em fo recast &su ly pp p lan

00 d - 0 ay Inven ry to P lan

L gi o stics
C onsolidate O rders P &B lan uild Loads R oute S hipm ents S elect C arriers & R ate S hipm ents

00 d - 0 ay E ected xp R eceip ts
R eceive P roduct P P ick roduct Load V ehicle, G enerate S D hip ocs & S hip

A al O er ctu rd H isto ry

Invoice & R eceive P aym ent

M an ufact u rin g

00 d M - 0 ay aster P du ro ctio n S edu ch le

Issue M aterial 00 - day S chedule M anufacturing A ctivities R elease P roduct to D eliver

eceive 00 M R M & Verify - 0 aterial aterial R u eq irem ents P lan

T ransfer M aterial

M anufactcure

& Test

P ackage

S tage P roduct

Live
00 - day S chedule M aterial D eliveries

Sp u p lier
00 - day S chedule M aterial D eliveries

SCOR Overview July 2004

28

F404 Engine HP Rotor Assy

DSC
Fairchild Fasteners

NADEP
25% OnTime

NAVICP
60% of Requiremen t Accepted, 90% of that Completed on time

NAS CV
77%SMA

F/A 18
Serviceable Modules 188% of Requirement, Svc Engines 112% of Requirement

Self Locking Nut

D2

S1

D1

S1 M2 S2
(carcass)

D2

S1

D1

S1

Serviceable Rotor Assy

164 Days

32 Days

98 days

Unserviced Engine Module

M2

Svc Engine

D1

S2 (carcass)

Unserviceable Rotor Assy

DR2

SR2

SCOR Overview July 2004

29

Carter Holt Harvey Focus on Best Practice / Change Management

Practice not yet adopted

Practice adopted

Best practice achieved

B P

B u s i n e s s e s t r a c t i c e R u l e s

P0 P0 M 0 M 0

B P

e s t r a c t i c e

B P

e s t r a c t i c e

P0 S0

P0

D0 D0

COTS / Consultant Evaluations

SCOR Overview July 2004

30

USMC SRAC IT Gaps and Redundancies

Gapin Capability in Capability

Transfer materiel Transfer materiel S0 Source Engineer-to: S0 Source Engineer-to: Order m ateriel Order m ateriel Receive and Verify materiel Receive and Verify materiel Install Product Install Product Select Final Supplier(s) and Select Final Supplier(s) and Negotiate Negotiate

Gap Identify Sources of Supply Identify Sources of Supply

Transfer materiel Transfer materiel

S0 : Source S0 : Source Make-to-Order Make-to-Order materiel materiel

Schedule Materiel Deliveries Schedule Materiel Deliveries Transfer Materiel Transfer Materiel Receive and Verify Materiel Receive and Verify Materiel Schedule materiel Deliveries Schedule materiel Deliveries Manage materiel Inventory Manage materiel Inventory Determine Emerging Determine Emerging Supplier Technologies Supplier Technologies

SRAC SRAC

Source Source

S0 Source Infrastructure : S0 Source Infrastructure :

Manage Sourcing Business Manage Sourcing Business Rules Rules

Manage Vendor Calibration Gap in Capability Manage Vendor Calibration Gap in Capability

Manage Incoming Freight Manage Incoming Freight Maintain Source Planning Maintain Source Planning and Execution Data and Execution Data Manage Vendor Agreements Manage Vendor Agreements

Establish New Source Establish New Source Establish New materiel Establish New materiel

Gap in Capability Gap in Capability

AMMOLOGS AMMOLOGS SS 00 (DSSC) SS 00 (DSSC) MAGTFII MAGTFII ATLASS ATLASS

SASSY SASSY

SCS SCS

SCOR Overview July 2004

31

Authorize Vendor Payment Authorize Vendor Payment

Receive and Verify materiel Receive and Verify materiel

S0 : Source S0 : Source Stocked Stocked materiel materiel

SCOR Projects A Wide Range of Adoption SCOR Projects A Wide Range of Adoption

SCOR Overview July 2004

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
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