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score model in supply chain
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Supply Chain Operations Reference Model (SCOR): Information about
(SCC)Developed by Supply Chain Council (SCC) SCC: Independent, not-for-profit corporation organized in 1996 by:
Global management-consulting firm, Pittiglio Rabin Todd & McGrath (PRTM) and Market research firm, Advanced Manufacturing Research (AMR) in Cambridge, Massachusetts.
Started with 69 voluntary companies; now close to 1000 members.SCC Objective: To develop a standard supply-chain process reference model enabling effective communication among the supply chain partners, by
Using standard terminology to better communicate and learn the supply chain issuesUsing standard metrics to compare and measure their performances
The Supply Chain Operations Reference (SCOR) model provides a unique
framework that links performance metrics, processes, best practices, and
people into a unified structure. The framework supports communication
between supply chain partners and enhances the effectiveness of supply
chain management, technology, and related supply chain improvement
activities.
Supply Chain Operational Reference (SCOR) model is the standard
reference process model developed by the Supply Chain Council (SCC)
that has become the cross-industry standard for supply chain
management.
The SCOR model depicts the basic supply chain, ranging from supplier's
supplier to customer's customer, as a series of linked Source Make
Deliver execution processes managed by a series of planning
processes
The SCOR model The SCOR model contains five core management processes:
Plan: Balance aggregate demand and supply to develop a course of action
that best meets sourcing, production, and delivery requirements.Source:
Procure goods and services to meet planned or actual demand. Make:
Transform a product into a finished state to meet planned or actual demand (DoD incorporates the Maintain/Repair process in the commercial Make process.)
Deliver:Provide finished goods and services to meet planned or actual
demand, typically including order management, transportation management, and distribution management.
Return:Return or receive returned products for any reason and extend into
post-delivery customer support. Note that the Return process was recently added to the model based largely on the efforts of the Aerospace and Defence Special Interest Group (SIG), which includes several DoD organizations, that convinced other members of the importance of return (or reverse, retrograde) logistics.
Supply Chain Operations Reference Model (SCOR)
The Primary Use of SCOR:To describe, measure and evaluate supply chain configurations.
SCOR contains:Standard descriptions of management processesA framework of relationships among the standard processesStandard metrics to measure process performanceManagement practices that produce best-in-class performance
Enables the companies to:Evaluate and compare their performances with other companies effectively Identify and pursue specific competitive advantagesIdentify software tools best suited to their specific process requirements
Return
Level
Description Schematic Comments
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.Source Make Deliver
Plan1
#
Configuration Level (Process
Categories)
A company’s supply chain can be “configured-to-order” at Level 2 from the core “process categories.” Companies implement their operations strategy through the configuration they choose for their supply chain.
2
Process Element Level (Decompose
Processes)
Level 3 defines a company’s ability to compete successfully in its chosen markets, and consists of:Process element definitionsProcess element information inputs, and outputsProcess performance metricsBest practices, where applicableSystem capabilities required to support best practicesSystems/tools
3
P1.1Identify, Prioritize, and Aggregate
Supply-Chain Requirements
P1.2Identify, Assess, and Aggregate
Supply-Chain Requirements
P1.3Balance Production Resources with
Supply-Chain Requirements
P1.4Establish andCommunicate
Supply-Chain Plans
Implementation Level (Decompose Process Elements)
4
Not in Scope
Return
Three Levels of Process Detail
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.
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Customer-FacingLevel 1Performance Metrics
Assets
Supply Chain Reliability
Cost
Responsiveness
Delivery performance Fill rate Perfect order fulfillment Order fulfillment lead time Supply Chain Response Time Production flexibility Total SCM cost Cost of Goods Sold Value-added productivity Warranty cost or returns processing cost Cash-to-cash cycle time Inventory days of supply Asset turns
Internal-Facing
Flexibility
Performance Attributes
Level Metrics Facts
Level 1 Metrics are primary, high level measures that may cross multiple SCOR processes. They do not necessarily relate to a SCOR Level 1 process (Plan-Source-Make-Deliver-Return).There is hierarchy among the metrics in different levels.Level 1 Metrics are created from lower level calculations (Level 2 metrics)Level 2 Metrics:
Associated with a narrower subset of processes. Example:
Metric related with Delivery Performance: Total number of products delivered on time and in full based on a commit date. Metric related with Production: Ratio Of Actual To Theoretical Cycle Time
Level 2 Process Types and Definitions
Planning: A process that aligns expected resources to meet expected demand requirements.
Balance aggregated demand and supplyConsider consistent planning horizon(Generally) occur at regular, periodic intervals
Execution: A process triggered by planned or actual demand that changes the state of material goods.
Scheduling/sequencingTransforming productMoving product to the next process
Enable: A process that prepares, maintains, or manages information or relationships on which planning and execution processes rely
Level 2 Process Categories
P1: Plan Supply ChainP2-P5: Plan SCOR ProcessS1: Source Stocked ProductS3: Source Engineer-to-Order ProductS2: Source Make-to-Order ProductM1: Make-to-StockM2: Make-to-OrderM3: Engineer-to-OrderD1: Deliver Stocked ProductD2: Deliver Make-to-Order ProductD3: Deliver Engineer-to-Order ProductD4: 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
Process Category: Source Stocked Product
Process Number: S1
Process Category Definition
The procurement, delivery, receipt and transfer of raw material items, subassemblies, product and or services.
Performance Attributes Metric
Reliability % Orders/lines processed complete
Responsiveness Total Source Cycle Time to Completion
Flexibility Time and Cost related to Expediting the Sourcing Processes of Procurement, Delivery, Receiving and Transfer.
Cost Product Acquisition Costs
Assets Inventory DOS
Best Practices Features
Joint Service AgreementsAlliance and Leverage agreements
None Identified
Example Continued
Process Element: Transfer Product
Process Element Number: S1.4
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 Metric
Reliability % Product transferred damage free% Product transferred complete% Product transferred on-time to demand requirement % Product transferred without transaction errors
Responsiveness Transfer Cycle Time
Flexibility Time and Cost Reduction related to Expediting the Transfer Process.
Cost Transfer & Product storage costs as a % of Product Acquisition Costs
Assets Inventory DOS
Best Practices Features
Drive deliveries directly to stock or point-of-use in manufacturing to reduce costs and cycle time
Pay on receiptSpecify delivery location and time (to the minute) Specify delivery sequence
Capability Transfer to Organization None Identified
Example Continued
Inputs Plan Source Make Deliver
Product Pull Signals M D
Product Inventory Location ES.4
WIP Inventory Location EM
Finished Goods Inventory Location
ED
Outputs Plan Source Make Deliver
Inventory Availability P2.2 ES.4 M1.2, M2.2, M3.3
D1.8, D4.2
Daily Replenishment Requirements
D4.1
Loaded Cart D4.4
Example Continued
Some Graphical Tools: 1st Step in configuring a SC: Illustrate physical layout, material flow and place Level 2 execution process categories to describe activities at each location.
SCOR Process Maps2nd Step: Create the SCOR Process Maps: Place planning process categories, using dashed lines to show links with execution processes
Software Package for Modeling SCOR: ARIS EasySCOR
The ARIS Toolset and ARIS Easy Design are process modeling tools. The ARIS Toolset is a BPR tool, Easy Design is used for process capture.The EasySCOR Modeler is a software package that includes the ARIS Easy Design modeling kit and the SCOR model in ARIS format.ARIS EasySCOR consists of process models that describe the SCOR levels 1 to 3. Implementation level, level 4 is not included.
Suppliers Supplier
Suppliers Assemble/ Package Distribution Centers Geo Ports of Entry
Americas--->
Europe--->
Asia--->
Process Map Example created in ARIS EasySCOR
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
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