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    SCOR

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    Ram Janm Singh
    The Supply Chain Operations Reference (SCOR) model was developed by the Supply Chain Council to provide standard definitions and metrics for assessing supply chain processes. It describes five primary supply chain processes - plan, source, make, deliver, return - and defines them at three levels of detail. The model is used to evaluate supply chain configurations, compare performance to benchmarks, and identify best practices. It aims to provide a common language for discussing supply chain issues and measuring performance across companies.

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    SCOR

    Uploaded by

    Ram Janm Singh
    265 views25 pages
    The Supply Chain Operations Reference (SCOR) model was developed by the Supply Chain Council to provide standard definitions and metrics for assessing supply chain processes. It describes five primary supply chain processes - plan, source, make, deliver, return - and defines them at three levels of detail. The model is used to evaluate supply chain configurations, compare performance to benchmarks, and identify best practices. It aims to provide a common language for discussing supply chain issues and measuring performance across companies.

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    The Supply Chain Operations Reference (SCOR) model was developed by the Supply Chain Council to provide standard definitions and metrics for assessing supply chain processes. It describes five primary supply chain processes - plan, source, make, deliver, return - and defines them at three levels of detail. The model is used to evaluate supply chain configurations, compare performance to benchmarks, and identify best practices. It aims to provide a common language for discussing supply chain issues and measuring performance across companies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    265 views25 pages

    SCOR

    Uploaded by

    Ram Janm Singh
    The Supply Chain Operations Reference (SCOR) model was developed by the Supply Chain Council to provide standard definitions and metrics for assessing supply chain processes. It describes five primary supply chain processes - plan, source, make, deliver, return - and defines them at three levels of detail. The model is used to evaluate supply chain configurations, compare performance to benchmarks, and identify best practices. It aims to provide a common language for discussing supply chain issues and measuring performance across companies.

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    Supply Chain Operations Reference Model (SCOR)

    Ozgun C. Demirag

    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 issues Using standard metrics to compare and measure their performances

    Supply Chain Operations Reference Model (SCOR)


    SCOR:
    Integrates Business Process Reengineering, Benchmarking, and Process Measurement into a cross-functional framework.
    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 Quantify the operational performance of similar companies and establish internal targets based on best-inclass results 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 Process Reference Model

    Characterize the management practices and software solutions that result in bestin-class performance Best Practices Analysis

    Business Process Reengineering

    Benchmarking

    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 processes A framework of relationships among the standard processes Standard metrics to measure process performance Management 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 advantages Identify software tools best suited to their specific process requirements

    Supply Chain Operations Reference Model (SCOR): Boundaries


    SCOR spans: All customer interactions, from order entry through paid invoice. All product (physical material and service) transactions, from suppliers supplier to 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 SCOR does not attempt to describe every business process or activity, including: Sales and marketing (demand generation) Research and technology development Product development Some elements of post-delivery customer support

    Supply Chain Operations Reference Model (SCOR):Basic Management Processes


    Plan-Source-Make-Deliver-Return
    Plan

    Deliver

    Source Return

    Make

    Deliver Return

    Source Return

    Make

    Deliver Return

    Source Return

    Make

    Deliver Return

    Source

    Suppliers Supplier

    Supplier (Internal or External)

    Your Company

    Customer (Internal or External)

    Customers Customer

    Plan-Source-Make-Deliver-Return provide the organizational structure of the SCOR-model

    Scopes of Basic Management Processes


    Plan (Processes that balance aggregate demand and supply to develop a
    course of action which best meets sourcing, production and delivery requirements) Balance resources with requirements Establish/communicate plans for the whole supply chain Source (Processes that procure goods and services to meet planned or actual demand) Schedule deliveries (receive, verify, transfer) Make (Processes that transform product to a finished state to meet planned or actual demand) Schedule production Deliver (Processes that provide finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management) Warehouse management from receiving and picking product to load and ship product. Return (Processes associated with returning or receiving returned products) Manage Return business rules

    Level

    Three Levels of Process Detail


    Description

    #
    1

    Schematic Plan Source


    Make

    Comments Level 1 defines the scope and content for the Supply chain Operations Reference-model. Here basis of competition performance targets are set.

    Supply Chain Operations Reference Model

    Top Level (Process Types)

    Deliver Return

    Return
    2

    Configuration Level (Process Categories)

    A companys supply chain can be configuredto-order 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

    Process Element Level (Decompose Processes)


    P1.1
    Identify, Prioritize, and Aggregate Supply-Chain Requirements

    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

    Not in Scope

    Implementation Level (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.

    Level 1 Performance Metrics


    Performance Attributes
    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

    Customer-Facing
    Supply Chain Reliability Responsiveness Flexibility

    Internal-Facing

    Cost

    Assets

    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-SourceMake-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 supply Consider 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/sequencing Transforming product Moving product to the next process Enable: A process that prepares, maintains, or manages information or relationships on which planning and execution processes rely

    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

    Level 2 Process Categories

    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 Number: S1.4 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

    Responsiveness Flexibility Cost Assets

    Best Practices
    Drive deliveries directly to stock or point-ofuse in manufacturing to reduce costs and cycle time Capability Transfer to Organization

    Features
    Pay on receipt Specify delivery location and time (to the minute) Specify delivery sequence None Identified

    Example Continued

    Inputs Product Pull Signals

    Plan

    Source

    Make M

    Deliver D

    Product Inventory Location


    WIP Inventory Location Finished Goods Inventory Location Outputs Inventory Availability Plan P2.2

    ES.4
    EM ED

    Source ES.4

    Make M1.2, M2.2, M3.3

    Deliver D1.8, D4.2 D4.1 D4.4

    Daily Replenishment Requirements Loaded Cart

    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 Maps


    2nd 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.

    Process Map Example created in ARIS EasySCOR

    Suppliers Supplier

    Suppliers

    Assemble/ Package

    Distribution Centers

    Geo Ports of Entry

    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:
    About ARIS:

    http://www.changeware.net/esitteet/scor-faq.pdf
    http://www.changeware.net/esitteet/scor-faq.pdf

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