20050506_yjs.ppt

1 / 28M.A.I. Lab. Seminar

Supply-Chain Operations Reference-Model

Manufacturing Automation & Integration Lab.2005. 5. 6. Friday.

Yoo, Jin-Seon

(Overview Version 7.0)


Contents

What is a Process Reference Model?

SCOR Boundaries

Scope of SCOR Processes

Conclusion

Source : www.supply-chain.org

Levels of Process

Configuring Supply-Chain Threads



Best Practices Analysis

Characterize Characterize the managementpractice andsoftware solutionsthat result in“best-in-class”performance

Business Process

Reengineering

CaptureCapture the “as-is”state of a processand derivederive the desired “to-be”future state

Benchmarking

Quantify Quantify the operational performance ofsimilar companiesand establishestablishinternal targetsbased on “best-in-class”results

ProcessReference Model

CaptureCapture the “as-is” state of a process and derivederive the desired “to-be” future state

Quantify Quantify the operational performance of similar companiesand establish establish internal targetsbased on “best-in-class” results

Characterize Characterize the managementpractice and software solutionsthat result in “best-in-class”performance



A Process reference model contains :

Once a complex management process is captured in standard process reference model form, it can be :

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 Standard alignment to features and functionality

Implemented purposefully to achieve competitive advantage Described unambiguously and communicated Measured, managed, and controlled Tuned and re-turned to a specific purpose


All customerinteractions

All physical material transactions

All marketinteractions

From order entry through paid invoice

From supplier’s supplier to customer’s customer

From the understanding of aggregate demand to the fulfillment of each other Including equipment, supplies,

spare parts, bulk product, software, etc.

TrainingTraining QualityQuality

Information TechnologyInformation Technology AdministrationAdministration

SCOR Boundaries


SCOR is organized around five major management processes.

SCOR Boundaries


PlanPlanPlanPlan

SourceSourceSourceSource

MakeMakeMakeMake

DeliverDeliverDeliverDeliver

ReturnReturnReturnReturn

Order, Warehouse, Transportation and InstallationManagement for Stocked, Make-to-Orderand Engineer-to-Order Product

Return of Raw Materials and Receipt of Returns of Finished Goods

Demand/Supply Planning and Management

Sourcing Stocked, Make-to-Orderand Engineering-to-Order Product

Make-to-Stock, Make-to-Order andEngineer-to-Order Production Execution



PlanPlanPlanPlan SourceSourceSourceSource MakeMakeMakeMake DeliverDeliverDeliverDeliver ReturnReturnReturnReturn


Balance resources with requirements and establish/communicate plans for the whole supply chain.

Demand/Supply Planning and ManagementDemand/Supply Planning and Management

Align the supply chain unit plan with the financial plan

Management of business rules, supply chain performance, data collection, inventory, capital assets,

transportation, planning configuration, and regulatory requirements and compliance.




Schedule deliveries; receive, verify, and transfer product; and authorize supplier payment

Sourcing Stocked, Make-to-Order, and Engineer-to-Order ProductSourcing Stocked, Make-to-Order, and Engineer-to-Order Product

Manage business rules, assess supplier performance, and maintain data.

Identify and select supply sources when not predetermined, as for engineer-to-order product.

Manage inventory, capital assets, incoming product, supplier network, import/export requirements,

and supplier agreements.




Schedule production activities, issue product, produce and test, package, and release product

Make-to-Stock, Make-to-Order, and Engineer-to-Order Production ExecutionMake-to-Stock, Make-to-Order, and Engineer-to-Order Production Execution

Finalize engineering for engineer-to-order product.

Manage rules, performance, WIP, equipment and facilities, transportation, production network,and regulatory compliance for production.

to deliver.




All order management steps from processing customer inquiries and quotes to routing shipments

Order, Warehouse, Transportation, and Installation Management for Stocked, Make-to-Order, and Engineer-to-Order Product

Order, Warehouse, Transportation, and Installation Management for Stocked, Make-to-Order, and Engineer-to-Order Product

Manage deliver business rules, performance, information, finished product inventories, capital assets, transportation, product life cycle, and import/export requirements.

Warehouse management from receiving and picking product to load and ship product.

and selecting carriers.

Invoicing customer.




Return of Raw Materials and Receipts of Returns of Finished GoodsReturn of Raw Materials and Receipts of Returns of Finished Goods

Manage return business rules, performance, data collection, return inventory, capital assets,

transportation, network configuration, and regulatory requirements and compliance.

All returns from materials and finished goods.


Top Level(Process Types)

Level 1 Description Schematic

Level 1 defines the scope and content for the Supply ChainOperations Reference-model.

Here basis of competitionPerformance targets are set.

Comments

Plan

DeliverMakeSource

Return Return

Levels of Process


Level 1 Process Definitions

SCOR Process

Source

Plan

Make

Return

Deliver

Definitions

Processes that procure goods and services to meet planned or actual demand

Processes that balance aggregate demand and supply to develop a course ofaction which best meets sourcing, production and delivery requirements

Processes that transform product to a finished state to meet planned or actualdemand

Processes associated with returning or receiving returned products for any reason.These processes extend into post-delivery customer support

Processes that provide finished goods and services to meet planned or actualdemand, typically including order management, transportation management, anddistribution management

Levels of Process


ConfigurationLevel

(ProcessCategories)


A company’s supply chain can be“configured-to-order” at Level 2

from 30 core “process categories”.Companies implement theiroperations strategy through

the configuration they choosefor their supply chain.

Comments

Levels of Process


Cu

stom

ers

Su

pp

lier

s

P1 Plan Supply Chain

Source ReturnSR1 Return Defective ProductSR2 Return MRO ProductSR3 Return Excess Product

P2 Plan Source P3 Plan Make P4 Plan Deliver P5 Plan Return

S1 SourceStocked Product

S2 Source Make-to-Order Product

S3 Source Engineer-to-Order Produst

M1 Make-to-Stock

M2 Make-to-Order

M3 Engineer-to-Order

D1 Deliver StockedProduct

D2 Deliver Make-to-Order Product

D3 Deliver Engineered-to-Order Product

Deliver ReturnDR1 Return Defective ProductDR2 Return MRO ProductDR3 Return Excess Product

Plan

D4 Deliver RetailProduct

Source Make Deliver

Levels of Process

Level 2 Toolkit

MRO : Maintenance Repair and Operating


“SCOR Configuration Toolkit”

Enable

Execution

Planning

ProcessType

EP

P1

ES

S1–S3

P2

EM

M1–M3

P3

ED

D1–D3

P4

ER

R1–R3

P5

ProcessCategory

SCOR Process

Plan Source Make Deliver Return

Process Categories are defined by the relationship between a SCOR Process and Process Type

Levels of Process


Process ElementLevel

(DecomposeProcess)


Level 3 defines a company’s abilityto compete successfully in its chosenmarkets, 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

Comments

P1.1Identify, Prioritize,

and AggregateSupply-ChainRequirements

P1.2Identify, Assess,and AggregateSupply-Chain

Resources

P1.3Balance Supply-Chain

Resources withSupply-ChainRequirements

P1.4Establish andCommunicate

Supply-Chain Plans

Levels of Process


Level 3 Detailed Process Element Information

Levels of Process


ImplementationLevel

(DecomposeProcess

Elements)


Companies implement specificsupply-chain management

practices at this level.Level 4 defines practices to

achieve competitive advantageand to adapt to changing

business conditions.

Comments

Levels of Process


Level 4 Implementation of Supply-Chain Management Practices

Levels of Process


Below

Levels of Process


Each basic supply-chain is a “Chain” of Source, Make, and Deliver Execution Processes

Each intersection of two execution processes (Source-Make-Deliver) is a “link” in the supply chain

Execution processes transform or transport materials and/or products Each process is a customer of the previous process and a supplier to the next

Planning processes thus “balance” the supply chain Every link require an occurrence of a plan process category

Planning processes manage these customer-supplier links

Levels of Process


Configuring Supply-Chain Threads illustrates how SCOR configurations are done.

Source Return

S1 SourceStocked Product

S2 Source Make-to-Order Product

S3 Source Engineer-to-Order Produst

M1 Make-to-Stock

M2 Make-to-Order

M3 Engineer-to-Order

Source Make Deliver

D1 Deliver StockedProduct

D2 Deliver Make-to-Order Product

D3 Deliver Engineered-to-Order Product

R1 Return Defective Product

R2 Return MRO Product

R3 Return Excess Product

Deliver Return

R1 Return Defective Product

R2 Return MRO Product

R3 Return Excess Product



A change in a supply chain often “ripples” through each linkage, affecting other areas.

A change may impact both customer’s and supplier’s supply-chain planning



Effective Supply-Chain Management Requires Balancing Multiple Links Concurrently.



Conclusion

SCOR is a process reference model that provides a language for communicating among the supply-chain partners.

SCOR is used to describe, measure and evaluate Supply-Chain configurations.

A standard language helps management to focus on management issues.

As and industry standard, SCOR helps management focus across inter-company supply chains.

Describe : Standard SCOR process definitions allow virtually any supply-chain to be configured.

Measure : Standard SCOR metrics enable measurement and benchmarking of supply-chain performance.

Evaluate : Supply-chain configurations may be evaluated to support continuous improvement and

strategic planning.


Discussion

Version 이 7.0 인데 이전 Version 들과 비교하여 달라진 점은 무엇이 있는가 ?

프로세스의 효과성을 측정하기 위한 방법이 궁금한데 , performance 측정과 관련하여 제시된 Metric 은 무엇이 있는가 ?

SCOR Model 이 SCM 적용을 위한 범용적인 참조모델인 이유로 기본 틀이 변한 것은 없고 ,

내부를 구성하고 있는 요소들 ( 예 : Level 2 에서의 process categories) 의 수가 일부 늘어났다 .

평가 sheet 가 구체적으로 나와있지 않고 표준적인 프로세스의 Performance Attributes 와 그에 따른 Metric 들을 정의하여 프로세스를 평가하고 관리하는데 사용할 수 있도록 하고 있다 . Performance

Attributes 는 고객 및 수요자 측면의 Reliability, Responsiveness, Flexibility 와 내부 요소인 Cost, Assets 의 다섯 가지가 있다 .

20050506_yjs.ppt

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achieve competitive

actual demand

chain requirements

process reference

stock m2 make

order m3 engineer

management

installation