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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:

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supply chain operations reference model scor information about scc
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-consultingfirm, 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 scor3
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

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

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

Business Process Reengineering

Benchmarking

Best Practices Analysis

Process Reference Model

supply chain operations reference model scor4
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
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 supplier’s supplier to customer’s 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
Supply Chain Operations Reference Model (SCOR):Basic Management Processes

Plan-Source-Make-Deliver-Return

Plan

Source

Make

Deliver

Source

Make

Deliver

Source

Deliver

Make

Deliver

Source

Return

Return

Return

Return

Return

Return

Supplier’sSupplier

Customer’s Customer

Customer (Internal or External)

Supplier (Internal or External)

Your Company

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

scopes of basic management processes
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
slide8

Level

Comments

#

Description

Schematic

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

Top Level

(Process Types)

1

Plan

Source

Make

Deliver

Return

Return

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 definitions
  • Process element information inputs, and outputs
  • Process performance metrics
  • Best practices, where applicable
  • System capabilities required to support best practices
  • Systems/tools

3

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

Implementation Level (Decompose Process Elements)

4

Not

in Scope

Three Levels of Process Detail

Supply Chain Operations Reference Model

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.

slide9

Level 1

Performance Metrics

Customer-Facing

Internal-Facing

Responsiveness

Flexibility

Supply Chain

Reliability

Cost

Assets

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 

level metrics facts
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
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
level 2 process categories
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
some graphical tools
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
SCOR Process Maps

2nd Step: Create the SCORProcess Maps: Place planning process categories, using dashed lines to show links with execution processes

software package for modeling scor aris easyscor
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
Process Map Example created in ARIS EasySCOR

Suppliers Supplier

Suppliers

Assemble/ Package

Distribution Centers

Geo Ports of Entry

Americas--->

Europe--->

Asia--->

observations
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
References
  • SCOR 6.0 Overview Booklethttp://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