Supply Chain ETI 6134 Dr. Karla Moore. 2 Lecture 1.Supply Chain key concepts 2.SCOR model 3.SCOR...
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Transcript of Supply Chain ETI 6134 Dr. Karla Moore. 2 Lecture 1.Supply Chain key concepts 2.SCOR model 3.SCOR...
Supply Chain
ETI 6134
Dr. Karla Moore
2
Lecture1. Supply Chain key concepts2. SCOR model 3. SCOR level of Detail4. SCOR Terminology5. SCOR Case Study
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Supply Chain Key Concepts Process Supply Chain Suppliers Customers Process owners, Management, etc.
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Supply Chain Key Concepts
InputMaterials
MoneyInformation
Data
ProcessPeople
EquipmentMethod
ProceduresEnvironment
Materials
OutputInformation
DataProductService
Feedback
Conditions
Outcomes
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Supply Chain Key Concepts
Supplier(s) Developer(Designer)
Producer(Manufacturer)
Distributor(Warehouser)
Customer(User)
Operational Activities
Maintenance Activities
Supply Chain Key Concepts
Requirementsand feedback
Requirementsand feedback
Your Suppliers
YourProcesses
YourCustomers
Inputs Outputs
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Supply Chain Factors Capability: Ability to accomplish all the
functions required. Availability: Ability to respond to any, or all, of
the requirements at any point in time when
needed. Quality: Process responsiveness in terms of the
objectives to satisfy customers’ needs.
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Introduced in 1996 by Supply Chain Council. The SCC is an independent, not-for-profit,
global corporation with membership open to all companies and organizations.
Over 800 Company Members. Chapters in Australia/New Zealand, Brazil,
Europe, Japan, North America, Southern Africa, and South East Asia with petitions for additional chapters pending.
SCOR Model
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SCC Organization - Chapters & Staffing
Australia/New Zealand Chapter Australia/New Zealand Chapter Sydney, AustraliaSydney, Australia
Owens Global LogisticsOwens Global Logistics
Australia/New Zealand Chapter Australia/New Zealand Chapter Sydney, AustraliaSydney, Australia
Owens Global LogisticsOwens Global Logistics
South East Asia Chapter South East Asia Chapter SingaporeSingapore
Venture Inc.Venture Inc.
South East Asia Chapter South East Asia Chapter SingaporeSingapore
Venture Inc.Venture Inc.
Japan Chapter Japan Chapter Tokyo, JapanTokyo, Japan
NECNEC
Japan Chapter Japan Chapter Tokyo, JapanTokyo, Japan
NECNEC
SCC Global Headquarters SCC Global Headquarters Pittsburgh, Pennsylvania, Pittsburgh, Pennsylvania,
USAUSA
HPHP
SCC Global Headquarters SCC Global Headquarters Pittsburgh, Pennsylvania, Pittsburgh, Pennsylvania,
USAUSA
HPHP
EuropeEurope
Oslo, NorwayOslo, Norway
Modus MediaModus Media
EuropeEurope
Oslo, NorwayOslo, Norway
Modus MediaModus Media
Southern Africa Southern Africa Johannesburg, South AfricaJohannesburg, South Africa
UTiUTi
Southern Africa Southern Africa Johannesburg, South AfricaJohannesburg, South Africa
UTiUTi
North America North America ChapterChapter
AVNETAVNET
North America North America ChapterChapter
AVNETAVNET
Brazil ChapterBrazil Chapter
Effective 9/1/03Effective 9/1/03
Brazil ChapterBrazil Chapter
Effective 9/1/03Effective 9/1/03
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Integrates the well-known concepts of business process reengineering, benchmarking, and process measurement into a cross-functional framework.
Engineering approach that helps to analyze, design, and improve supply chain performance.
SCOR Model
SCOR Model
Quantify the operational performance of similar companies and establish internal targets based on “best-in-class” results
Quantify the operational performance of similar companies and establish internal targets based on “best-in-class” results
Benchmarking
Characterize the management practices and software solutions that result in “best-in-class” performance
Characterize the management practices and software solutions that result in “best-in-class” performance
Best Practices
Analysis
Process Reference Model
Capture the “as-is” state of a process and derive the desired “to-be” future state
Capture the “as-is” state of a process and derive the desired “to-be” future state
Business Process Reengineering
Capture the “as-is” state of a process and derive the desired “to-be” future 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-in-class” performance
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SCOR Model Covers many different departments and
contribute enterprises, each with its own values, information systems, structures, and economics.
SCOR spans over: All supplier / customer interactions. Order entry through paid invoice. All physical material transactions.
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SCOR Model SCOR Spans:
From the supplier’s supplier to the customer’s customer, including equipment, supplies, spare parts, bulk product, and software.
All market interaction. From the understanding of aggregate demand
to the fulfillment of each order. Returns.
Describes the business activities associated with all phases of satisfying a customer’s demand.
Suppliers’Supplier
SCOR Management Processes
SCOR Model SCOR Model
Building Block Approach
Processes Metrics
Best Practice Technology
Supplier
Plan
Customer Customer’sCustomer
Make DeliverSource Make DeliverMakeSourceDeliver SourceDeliver
Internal or External Internal or External
Your Company
Source
Return Return ReturnReturn Return Return Return Return
The Plan process, assesses supply resources;
aggregates and prioritizes demand requirements;
plans inventory for distribution, production, and
material requirements; and plans rough-cut
capacity for all products and all channels.
The Source process, obtains, receives, inspects, holds, issues, and authorizes payment for raw materials and purchased finished goods.
The Make process, requests and
receives material; manufactures
and tests product; packaging, holds,
and/or releases product.
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SCOR Level of Detail
#
Level
Schematic Comments
1
2
3
4
ConfigurationLevel
(ProcessCategories)
ProcessElement Level
(Decompose
Processes)
Plan
DeliverMakeSource
A company’s supply chain can be “configured-to- order” at Level 2 from approximately 24 core “process categories.”
Companies implement their operations strategy through their unique supply chain configuration.
Companies “fine tune” their Operations Strategy at Level 3
Level 3 defines a company’s 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
•
•
ImplementationLevel
(Decompose
Process
Elements)
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
Su
pp
ly C
ha
in O
pe
rati
on
s R
efe
ren
ce
mo
de
l
Top Level
(Process Types)
Level 1 defines the scope and content for the Supply Chain Operations Reference model
Here basis of competition performance targets are set
Notin
Scope
Description
Balance Production Resources with
Production RequirementsEstablish Detailed
Production Plans
Identify, Prioritize, and Aggregate
Production Requirements
Identify, Assess, and Aggregate
Production Resources
P3.1
P3.3 P3.4
P3.2
ReturnReturn
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SCOR Terminology
SCOR Management Processes1. Plan: P2. Source: S3. Make: M4. Deliver: D5. Return: R
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Process Types and Categories 1. Planning: P1, P2, P3, P4, P5
P1: Plan Supply ChainP2: Plan SourceP3: Plan MakeP4: Plan DeliverP5: Plan Return
SCOR Terminology
18
Process Types and Categories:2. Execution: S1-S3, M1-M3, D1-D4, R1-R3
S1: Source Stocked ProductS2: Source Make-to-Order ProductS3: Source Engineer-to-Order ProductM1: Make-to-StockM2: Make-to-OrderM3: Engineer-to-OrderD1: Deliver Stocked ProductD2: Deliver Make-to-OrderD3: Deliver Engineer-to-Order ProductD4: Deliver Retail Product
SCOR Terminology
19
Process Types and Categories2. Execution: S1-S3, M1-M3, D1-D4, R1-R3
SR1: Source Return Defective ProductDR1: Deliver Return Defective ProductSR2: Source Return MRO ProductDR2: Deliver Return MRO ProductSR3: Source Return Excess ProductDR3: Deliver Return Excess Product
MRO: Maintenance, Repair, and Operating Supplies
SCOR Terminology
20
Process Types and Categories 3. Enable: EP, ES, EM, ED, ER
EP1-EP9ES1-ES9EM1-EM8ED1-ED8ER1-ER8
SCOR Terminology
SCOR Terminology
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P1: Plan Supply ChainP1.1: Identify, Prioritize, & Aggregate Supply-Chain RequirementsP1.2: Identify, Assess, & Aggregate Supply-Chain ResourcesP1.3: Balance Supply-Chain Resources with Supply-Chain RequirementsP1.4: Establish & Communicate Supply-Chain Plans
P2: Plan SourceP2.1: Identify, Prioritize, & Aggregate Product RequirementsP2.2: Identify, Assess, & Aggregate Product ResourcesP2.3: Balance Product Resources with Product RequirementsP2.4: Establish & Communicate Sourcing Plans
SCOR Terminology
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P3: Plan MakeP3.1: Identify, Prioritize, & Aggregate Production RequirementsP3.2: Identify, Assess, & Aggregate Production ResourcesP3.3: Balance Production Resources with Production RequirementsP3.4: Establish & Communicate Production Plans
P4: Plan DeliverP4.1: Identify, Prioritize, & Aggregate Delivery RequirementsP4.2: Identify, Assess, & Aggregate Delivery ResourcesP4.3: Balance Delivery Resources with Delivery RequirementsP4.4: Establish & Communicate Delivery Plans
SCOR Terminology
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P5: Plan ReturnP5.1: Identify, Prioritize, & Aggregate Return RequirementsP5.2: Identify, Assess, & Aggregate Return ResourcesP5.3: Balance Return Resources with Return RequirementsP5.4: Establish & Communicate Return Plans
Enable PlanEP1: Manage Business Rules for Plan ProcessesEP2: Manage Performance of Supply ChainEP3: Manage Plan Data CollectionEP4: Manage Integrated Supply Chain InventoryEP5: Manage Integrated Supply Chain Capital AssetsEP6: Manage Integrated Supply Chain TransportationEP7: Manage Planning ConfigurationEP8: Manage Plan Regulatory Requirements & ComplianceEP9: Align Supply Chain Unit Plan with Financial Plan
SCOR Terminology
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S1: Source Stocked ProductS1.1: Schedule Product DeliveriesS1.2: Receive ProductS1.3: Verify ProductS1.4: Transfer ProductS1.5: Authorize Supplier Payment
S2: Source Make-to-Order ProductS2.1: Schedule Product DeliveriesS2.2: Receive ProductS2.3: Verify ProductS2.4: Transfer ProductS2.5: Authorize Supplier Payment
SCOR Terminology
26
S3: Source Engineering-to-Order ProductS3.1: Identify Sources of SupplyS3.2: Select Final Supplier(s) and NegotiateS3.3: Schedule Product DeliveriesS3.4: Receive ProductS3.5: Verify ProductS3.6: Transfer ProductS3.7: Authorize Supplier Payment
Enable SourceEP1: Manage Sourcing Business PlanEP2: Assess Supplier PerformanceEP3: Maintain Source DataEP4: Manage Product InventoryEP5: Manage Capital AssetsEP6: Manage Incoming ProductEP7: Manage Supplier NetworkEP8: Manage Import/Export RequirementsEP9: Manage Supplier Agreements
SCOR Terminology
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M1: Make-to-StockM1.1: Schedule Product ion ActivitiesM1.2: Issue ProductM1.3: Produce and TestM1.4: PackageM1.5: Stage ProductM1.6: Release Product to deliver
M2: Make-to-Order M2.1: Schedule Product ion ActivitiesM2.2: Issue ProductM2.3: Produce and TestM2.4: PackageM2.5: Stage ProductM2.6: Release Product to deliver
SCOR Terminology
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M3: Engineering-to-Order M3.1: Finalize EngineeringM3.2: Schedule Production ActivitiesM3.3: Issue ProductM3.4: Produce and TestM3.5: PackageM3.6: Stage ProductM3.7: Release Product to Deliver
Enable MakeEM1: Manage Production RulesEM2: Manage Production PerformanceEM3: Manage Make InformationEM4: Manage In-Process Products (WIP)EM5: Manage Equipment and FacilitiesEM6: Manage TransportationEM7: Manage Production NetworkEM8: Manage Production Regulatory Compliance
SCOR Terminology
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D1: Deliver Stocked ProductD1.1: Process Inquiry & QuoteD1.2: Receive, Enter & Validate OrderD1.3: Reserve Inventory & Determine Delivery DateD1.4: Consolidate OrdersD1.5: Build LoadsD1.6: Route ShipmentsD1.7: Select Carries & Rate ShipmentsD1.8: Receive Product from Source or MakeD1.9: Pick ProductD1.10: Pack ProductD1.11: Load Product & Generate Shipping DocsD1.12: Ship ProductD1.13: Receive & Verify Product by CustomerD1.14: Install ProductD1.15: Invoice
SCOR Terminology
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D2: Deliver Make-to-OrderD2.1: Process Inquiry & QuoteD2.2: Receive, Configure, Enter & Validate OrderD2.3: Reserve Inventory & Determine Delivery DateD2.4: Consolidate OrdersD2.5: Build LoadsD2.6: Route ShipmentsD2.7: Select Carries & Rate ShipmentsD2.8: Receive Product from Source or MakeD2.9: Pick ProductD2.10: Pack ProductD2.11: Load Product & Generate Shipping DocsD2.12: Ship ProductD2.13: Receive & Verify Product by CustomerD2.14: Install ProductD2.15: Invoice
SCOR Terminology
31
D3: Deliver Engineer-to-Order ProductD3.1: Obtain & Respond to RFP/RFQD3.2: Receive and Review Contract D3.3: Enter Order, Commit, Resources & Launch ProgramD3.4: Schedule InstallationD3.5: Build LoadsD3.6: Route ShipmentsD3.7: Select Carries & Rate ShipmentsD3.8: Receive Product from Source or MakeD3.9: Pick ProductD3.10: Pack ProductD3.11: Load Product & Generate Shipping DocsD3.12: Ship ProductD3.13: Receive & Verify Product by CustomerD3.14: Install ProductD3.15: Invoice
SCOR Terminology
32
D4: Deliver Retail ProductD4.1: General Stocking ScheduleD4.2: Receive Product at the StoreD4.3: Pick Product from BackroomD4.4: Stock ShelfD4.5: Fill Shopping CartD4.6: CheckoutD4.7: Deliver and/or install
Enable SourceED1: Manage Deliver Business RulesED2: Assess Deliver PerformanceED3: Manage Deliver InformationED4: Manage Finished Product InventoryED5: Manage Deliver Capital AssetsED6: Manage TransportationED7: Manage Product Life CycleED8: Manage Import/Export Requirements
SCOR Terminology
33
SR1: Source Return Defective Product SR1.1: Identify Defective Product ConditionSR1.2: Disposition Defective ProductSR1.3: Request Defective Product Return AuthorizationSR1.4: Schedule Defective Product ShipmentSR1.5: Return Defective Product
DR1: Deliver Return Defective Product DR1.1: Authorize Defective Product ReturnDR1.2: Schedule Defective Return Receipt DR1.3: Receive Defective Product (includes verify)DR1.4: Transfer Defective Product
SCOR Terminology
34
SR2: Source Return MRO Product SR2.1: Identify MRO Product ConditionSR2.2: Disposition MRO ProductSR2.3: Request MRO Return AuthorizationSR2.4: Schedule MRO ShipmentSR2.5: Return MRO Product
DR2: Deliver Return MRO Product DR2.1: Authorize MRO Product ReturnDR2.2: Schedule MRO Return Receipt DR2.3: Receive MRO Product (includes verify)DR2.4: Transfer MRO Product
SCOR Terminology
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SR3: Source Return Excess Product SR3.1: Identify Excess Product ConditionSR3.2: Disposition Excess ProductSR3.3: Request Excess Product Return AuthorizationSR3.4: Schedule Excess Product ShipmentSR3.5: Return Excess Product
DR3: Deliver Return Excess Product DR3.1: Authorize Excess Product ReturnDR3.2: Schedule Excess Return Receipt DR3.3: Receive Excess Product (includes verify)DR3.4: Transfer Excess Product
SCOR Terminology
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Enable ReturnER1: Manage Business Rules for Return ProcessesER2: Manage Performance of Return ProcessesER3: Manage Return Data CollectionER4: Manage Return InventoryER5: Manage Return Capital AssetsER6: Manage Return TransportationER7: Manage Return Network ConfigurationER8: Manage Return Regulatory Requirements &
Compliance
SCOR Terminology
SCOR Terminology
SCOR Terminology
SCOR Terminology
Mapping Material Flow
Latin AmericanSuppliers
(D1)
Warehouse
Other Suppliers(D1)
Manufacturing
European Supplier(S1)(SR1,SR3)
C ustom er
C ustom er
C ustom er
C ustom er
(S1, D1)(SR1,DR1,DR3)
(D2)(DR1)
Warehouse
Warehouse
Warehouse
(S1, D1)(SR1, DR3)
(S1, D1)(SR1,DR1,DR3)
(S1, D1)(SR1,DR1,DR3)
(S1)(SR1,SR3)
(S1)(SR1,SR3)
(S1)(SR1,SR3)
(S1, S2, M1, D1)(SR1,,DR1)
41
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.
SCOR Benefits
SCOR level of detailSCOR level of detailAgenda Review Process SCOR Level 1 Supply Chain
INTERNAL•Building & Fire Inspection Division•Community Resources Division•Development Review Division•Planning and Zoning Division
ENABLING PROCESSES• ENGINEERING• QUALITY• IM
Plan
DeliverMake
ReturnReturn
Source
Agenda Review Process CUSTOMERS
•Building & Fire Inspection Division•Community Resources Division•Development Review Division•Planning and Zoning Division
CUSTOMER’SCUSTOMER
Board of County Commissioner
SUPPLIERSSUPPLIER’SSUPPLIER
EXTERNAL•Applicant
• Application Form• Site Plan• Legal Description
• Agenda Memorandum• Maps
Processing Item
Agenda Package
Planning and Scheduling the Item
Decomposition/ Drill-Down mechanicsDecomposition/ Drill-Down mechanics
Agenda Review Process SCOR Level 1 Agenda Process Strategic Plan What we want to accomplish Top Level Business Plan How we will accomplish it ( Process Types) SCM Process How we implement and manage the plan
ERP The tools we use to implement
Agenda Review Process Level 2Configuration Level(Process Categories)
M1Agenda Review Process Supply Chain
PLAN-P3 SOURCE-S2 MAKE-M1 DELIVER-D1
Task PlanScheduling
Agenda Review Process Level 3Process Elements Level
(Decompose Process)
AS-IS STATE
Agen
da S
ched
ule
Months
Attorney Office
Department Director
Deputy County ManagerCounty Manager
Agen
da Item
Review
ed A
gend
a Item
Customer Acceptance
1-9 Months1-6 Months 1 Week1-2 Months1 Week
S2 Source Element SOURCE MAKE DELIVER
Information Flow SC Response Material Flow
1-6 Months2-4 Months 1 day4-6 Months1-2 Weeks
RETURN RETURN
Define critical part of the processDefine critical part of the process
70% OVERLOAD,REWORK,
TIME CONSUMING
PROCESS PEOPLE
PROCEDURE COMPUTER RESOURCES
COMUNICATION
No Database
No Standard
A lot of papers
Redundancy
No Training
Communication tools not Available
Many changeswithout interaction
Lack of coordinationamong Divisions, Departments
Lack of consistency