 Supply-Chain Council, 2003. All rights reserved. The Supply-Chain
Council has made every effort to assure the accuracy and usefulness of the
information and metrics contained herein and is provided on an "AS IS"
basis. The Supply-Chain Council makes no warranty, express or implied, of
merchantability, fitness for a particular purpose, or accuracy. The SupplyChain Council makes no representation as to the results obtained or
obtainable and disclaims all liability for direct, indirect, special or
consequential damage, including lost profits, lost business or the like,
whether based in contract, tort (including negligence), product liability or
otherwise.

© Copyright 2003 Supply-Chain Council, Inc.

Supply-Chain
Operations
Reference-model
Version 6.0
CONTENTS
• Introduction

1

• PLAN

11

• SOURCE

55

• MAKE

92

• DELIVER

133

• RETURN

197

• Glossary

241

o Process Terms

242

o Metrics

259

o Appendix

276

Supply-Chain Operations Reference-model (SCOR) 6.0
Introduction
The Supply-Chain Operations Reference-model (SCOR) is the product of the Supply-Chain
Council (SCC), an independent, not-for-profit, global corporation with membership open to all companies
and organizations interested in applying and advancing the state-of-the-art in supply-chain management
systems and practices. The SCOR-model captures the Council’s consensus view of supply chain
management. While much of the underlying content of the Model has been used by practitioners for
many years, the SCOR-model provides a unique framework that links business process, metrics, best
practices and technology features into a unified structure to support communication among supply chain
partners and to improve the effectiveness of supply chain management and related supply chain
improvement activities.
The SCC was organized in 1996 and initially included 69 practitioner companies meeting in an
informal consortium. Subsequently, the companies of the Council elected to form an independent not for
profit trade association. The majority of the SCC’s members are practitioners and represent a broad
cross-section of industries, including manufacturers, distributors, and retailers. Equally important to the
Council and the advancement of the SCOR-model are the technology suppliers and implementers, the
academicians, and the government organizations that participate in Council activities and the
development and maintenance of the Model. At the time of this release, the Council has approximately
800 members worldwide and has established international chapters in North America, Europe, Japan,
Australia/New Zealand, Southeast Asia, and Southern Africa with additional requests for regional
chapters pending.
The Supply-Chain Council is interested in providing the widest possible dissemination of the
SCOR-model. The wide-spread use of the Model results in better customer-supplier relationships,
software systems that can better support members through the use of common measurements and terms,
and the ability to rapidly recognize and adopt best practice no matter where it originates. SCC requests
that all who use the SCOR-model provide attribution to the Supply-Chain Council. Additionally, members
are encouraged to monitor the members section of the SCC website (www.supply-chain.org) to ensure
that they are using the latest version of SCOR.
This introduction is being provided to assist new users of the SCOR-model as well as
experienced users in understanding and applying the Model to realize supply chain improvements. It is
also provided to orient members to the changes between Version 6.0 and its predecessor.
Version 6.0 of the SCOR-model is the sixth major revision since the Model’s introduction in 1996.
Revisions of the Model are made when it is determined by Council members that changes should be
made to facilitate the use of the Model in practice. In Version 6.0, there are three primary areas of
change:
1)

2)

3)

The Deliver processes have been expanded to include a new Level 2 category, D4 Deliver Retail Product. This addition addresses the unique activities and sequence of
activities associated with delivering a product (normally to a consumer).
After over a year of use, R2 - Return of Maintenance, Repair and Overhaul (MRO)
Product, has been rewritten. The processes associated with the Return of MRO
products (SR2, MR2) have been updated for ease of use. The processes and their
associated definitions have been clarified. In this version of the Model, only the SR2
and DR2 elements have been revised. In the next version of the Model the revisions
are anticipated to extend to the SR1, DR1, SR3, and DR3 processes.
eBusiness best practices have been included in the Make processes continuing an
update of best practice, which was initiated in Version 5.0 of the Model.

© Copyright 2003 Supply-Chain Council, Inc.

1

April 2003

Scope
The SCOR-model has been developed to describe the business activities associated with all
phases of satisfying a customer’s demand. The Model itself contains several sections and is organized
around the five primary management processes of Plan, Source, Make, Deliver, and Return (shown in
Figure 1). By describing supply chains using these process building blocks, the Model can be used to
describe supply chains that are very simple or very complex using a common set of definitions. As a
result, disparate industries can be linked to describe the depth and breadth of virtually any supply chain.
The Model has been able to successfully describe and provide a basis for supply chain improvement for
global projects as well as site-specific projects.

Plan

Plan

Plan

Deliver
Return

Suppliers’
Supplier

Source

Make

Return

Plan

Deliver
Return

Source

Make

Deliver

Supplier

Source

Make

Return

Plan

Deliver

Source

Customer’s
Customer

Customer

Return

Return

Internal or External
Your Company

Return

Return

Internal or External

Figure 1 - SCOR is organized around five major management processes.
It spans: all customer interactions (order entry through paid invoice), all physical material
transactions (supplier’s supplier to customer’s customer, including equipment, supplies, spare parts, bulk
product, software, etc.) and all market interactions (from the understanding of aggregate demand to the
fulfillment of each order). It does not attempt to describe every business process or activity. Specifically,
the Model does not address: sales and marketing (demand generation), product development, research
and development, and some elements of post-delivery customer support.
It should be noted that the scope of the Model has changed and is anticipated to change based
on Council member requirements. With the introduction of Return, the Model has been extended into the
area of post-delivery customer support (although it does not include all activities in that area).
As shown in Figure 2, the Model is designed and maintained to support supply chains of various
complexities and across multiple industries. The Council has focused on three process levels and does
not attempt to prescribe how a particular organization should conduct its business or tailor its systems /
information flow. Every organization that implements supply chain improvements using the SCOR-model
will need to extend the Model, at least to Level 4, using organization-specific processes, systems, and
practice.
The Model is silent in the areas of human resources, training, and quality assurance among
others. Currently, it is the position of the Council that these horizontal activities are implicit in the Model
and there are other highly qualified organizations that are chiefly concerned with how an organization
should train, retain, organize, and conduct their quality programs. Just as the Council recognized the
requirements for marketing and sales in commercial organizations, the Council is not minimizing the
importance of these other activities.
© Copyright 2003 Supply-Chain Council, Inc.

2

April 2003

Prioritize.3 P1. © Copyright 2003 Supply-Chain Council.SCOR is a hierarchical model with specific boundaries in regard to scope. Inc. and outputs • Process performance metrics • Best practices. where applicable • System capabilities required to support best practices • Systems/tools Companies “fine tune” their Operations Strategy at Level 3. and consists of: • Process element definitions • Process element information inputs. Configuration Level (Process Categories) 3 Process Element Level (Decompose Processes) P1.” Companies implement their operations strategy through the configuration they choose for their supply chain. 4 Not in Scope Implementation Level (Decompose Process Elements) Companies implement specific supply-chain management practices at this level. Assess.2 Level 1 defines the scope and content for the Supply chain Operations Reference-model.4 Balance Production Resources with Supply Chain Requirements Establish and Communicate Supply -Chain Plans Identify.SCOR Contains Three Levels of Process Detail Level # Description Schematic 1 Supply-Chain Operations Reference-model Top Level (Process Types) Comments Plan Source Make Deliver Return Return 2 A company’s supply chain can be “configured-to-order” at Level 2 from the core “process categories.1 Identify. Figure 2 . Here basis of competition performance targets are set. Level 4 defines practices to achieve competitive advantage and to adapt to changing business conditions. 3 April 2003 . P1. and Aggregate Supply -Chain Requirements P1. and Aggregate Supply -Chain Requirements Level 3 defines a company’s ability to compete successfully in its chosen markets.

M depicts Make elements. 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-in-class” performance Characterize the management practices and software solutions that result in “best-inclass” performance Figure 3 . Inc. and moving product. Deliver.The SCOR-model is a business process reference model as illustrated in Figure 3. transforming materials and services. Execution processes are triggered by planned or actual demand that changes the state of products. In this case. maintain. They include scheduling and sequencing.1 is a notation that indicates a third level process element. Planning processes generally occur at regular intervals and can contribute to supply chain response time. not the person or organizational element that performs the activity. metrics. An E preceding any of the others (e. D depicts Deliver elements. and enable (formerly infrastructure). © Copyright 2003 Supply-Chain Council. Plan. A set of standard notation is used throughout the Model. The SCOR-model contains 7 basic sections: Introduction. it is a Model that links process elements. EP would be an Enable Planning element). The uniqueness and power of the Model and its successful implementation is chiefly derived from using these four elements together. Source. and R depicts Return elements.SCOR is a busi ness process reference model. S depicts Source elements. For modeling purposes. it is a Plan (P – Level 1) element that is concerned with supply chain planning (1 – Level 2) and is specific to identifying. P depicts Plan elements. prioritizing. A planning element is a process that aligns expected resources to meet expected demand requirements. Planning processes balance aggregated demand across a consistent planning horizon.g. It is important to note that this Model describes processes not functions. Make.. As indicated in Figure 2. SCOR-model Structure Besides the five basic management processes (Plan. Make. 4 April 2003 . Return) that provide the organizational structure of the SCOR-model. In other words. and aggregating supply chain requirements (. Enable processes prepare. Return is documented in two locations – Source and Deliver. Return and a Glossary. Source. P1.1 – Level 3). the Model focuses on the activity involved. Deliver. That is. the Model is hierarchical with three levels. best practice and the features associated with the execution of a supply chain in a unique format. execution. EP) indicates that the process element is an Enable element associated with the Planning or Execution element (in this case. it is useful to distinguish between the three process types in the Model: planning. and manage information or relationships upon which planning and execution processes rely.

execution and enable elements.Deliver Make-to-Order Product. the return of raw material) are documented as Source Return activities. 4) performance attributes that are associated with the process element. and R3 is the Return of Excess Product. 5) metrics that are associated with the performance attributes. Make and Deliver process elements. This preserves the concept that Source connects an organization with its suppliers and Deliver connects an organization with its customers. S1 denotes Source Make-toStock Product. This same convention is used for Make. and Deliver. and features (generally technologically related) that can contribute to heightened performance of the process. i. Although not explicit in the Model. R1 is the Return of Defective Product. Deliver. D2 . 3) SCC’s “standard” definition for the process element.e. Make. As a result.Deliver Retail Product. as shown in Figure 4 are typically “assigned” to P1 (Plan Supply Chain) and are decomposed (Level 2 and diagnostic metrics) to the respective planning. It is important to note.e.Those Return processes that connect an organization with its supplier (i. and Return sections are organized with a standard structure. that like the process elements themselves. Plan. 6) best practices that are associated with the process (candidates. © Copyright 2003 Supply-Chain Council. the associated enable elements are described using the same graphic and text formats. Deliver. M1 . the receipt of returned finished goods) are documented as Deliver Return activities. The Plan and Execution (Source.. Those processes that connect an organization with its customer (i. i.e. R2 is the Return of Maintenance. 5 April 2003 . and the inputs and outputs that are germane to each process element. Return) sections are the heart of the Model while the Glossary provides a listing of the standard process and metrics terms that are used within the Model. S2 denotes Source Make-to-Order Product and S3 denotes Source Engineer-to-Order Product. Make. Source. There is only one Retail Product process category and that is D4 . Within each of the planning and execution sections and following the graphic and text descriptions. their relationships to each other.e. Within the Source. and (3) Engineerto-Order and a new product environment (4) Retail Product. Level 1 metrics.0. The Model focuses on “product” environments: (1) Make-to-Stock. the metrics are intended to be hierarchical. not necessarily an exhaustive list). At the beginning of each section. there are graphics that provide a visual representation of the process elements. Following the graphics are text tables that identify: 1) the standard name for the process element. Repair or Overhaul (MRO) Product.Make-to-Stock. there is a common internal structure. 2) the notation for the process element. Inc. (2) Make-to-Order. This convention was extended to Return in Version 5.

Supply Chain Costs. the impact of this exercise was to associate cycle time measures with Responsiveness and to identify needed metrics in the area of Flexibility. Just as you would describe a physical object like a piece of lumber using standard characteristics (e. width. RETURN).SCOR Performance Attributes and Level 1 Metrics The metrics are used in conjunction with performance attributes. Supply Chain Responsiveness. the Performance Attributes were expanded from four (Supply Chain Reliability. © Copyright 2003 Supply-Chain Council.Flexibility ness v v v v Internal-Facing Cost Assets v v Total Supply Chain Management Cost Cost of Goods Sold v v v v Value-Added Productivity Warranty Cost Or Returns Processing Cost Cash-To-Cash Cycle Time v v v Inventory Days Of Supply Asset Turns Figure 4 . MAKE.g. SOURCE. DELIVER.Performance Attributes and Level 1 Metrics Level 1 Metrics are primary. high level measures that may cross multiple SCOR processes. height. a supply chain requires standard characteristics to be described. Performance Attribute Delivery Performance Fill Rate Perfect Order Fulfillment Order Fulfillment Lead Time Supply-Chain Response Time Production Flexibility Customer-Facing Reliability Responsive. and Supply Chain Asset Management) to five (Supply Chain Reliability.. Generally. The Performance Attributes are characteristics of the supply chain that permit it to be analyzed and evaluated against other supply chains with competing strategies. Supply Chain Costs.0 of the Model. Supply Chain Flexibility and Responsiveness. Supply Chain Flexibility. Inc. depth). and Supply Chain Asset Management). Without these characteristics it is extremely difficult to compare an organization that chooses to be the low-cost provider against an organization that chooses to compete on reliability and performance. The table in Figure 5 defines the performance attributes and indicates which Level 1 metrics are associated with each attribute. In Version 4. Level 1 Metrics do not necessarily relate to a SCOR Level 1 process (PLAN. 6 April 2003 .

formal definitions were not previously included in the Model. Level 1 Metrics are created from lower level calculations.Performance Attributes and Associated Level 1 Metrics Performance Attribute Supply Chain Delivery Reliability Supply Chain Responsiveness Supply Chain Flexibility Supply Chain Costs Supply Chain Asset Management Efficiency Performance Attribute Definition Level 1 Metric The performance of the supply chain in delivering: the correct product. RETURN). to the correct customer. (Level 1 Metrics are primary. For example.0. In Version 5. While these Performance Attributes are critical in implementing the Model. Delivery Performance Fill Rates Perfect Order Fulfillment The effectiveness of an organization in managing assets to support demand satisfaction. Lower level calculations (Level 2 metrics) are generally associated with a narrower subset of processes. Associated with the Performance Attributes are the Level 1 Metrics. This includes the management of all assets: fixed and working capital. Order Fulfillment Lead Times Supply Chain Response Time Production Flexibility Cost of Goods Sold Total Supply Chain Management Costs Value-Added Productivity Warranty / Returns Processing Costs Cash-to-Cash Cycle Time Inventory Days of Supply Asset Turns Figure 5 – Definitions for SCOR Performance Attributes and which Level 1 metrics are associated with each attribute. © Copyright 2003 Supply-Chain Council. In Version 4. even lower level metrics (diagnostics) are used to diagnose variations in performance against plan. Additionally. The agility of a supply chain in responding to marketplace changes to gain or maintain competitive advantage. Delivery Performance is calculated as the total number of products delivered on time and in full based on a commit date. at the correct time. SOURCE. to the correct place. in the correct quantity. Inc. in the correct condition and packaging. high level measures that may cross multiple SCOR processes. standard Performance Attribute definitions were provided. DELIVER. The costs associated with operating the supply chain. MAKE. Level 1 Metrics do not necessarily relate to a SCOR Level 1 process (PLAN. the process tables associated with Level 2 and 3 activities were reconciled to reflect the separation of the flexibility and responsiveness attributes and to ensure that the metrics measured what they were intended to measure. The velocity at which a supply chain provides products to the customer. 7 April 2003 . an organization may wish to examine the correlation between the request date and commit date. These Level 1 Metrics are the calculations by which an implementing organization can measure how successful they are in achieving their desired positioning within the competitive market space. with the correct documentation. For example.0. First time users of the Model should be aware that the metrics in the Model are hierarchical – just as the process elements are hierarchical.

Coordination with the Return Project Team has led to the inclusion of this activity within the Return processes. as part of the Retail Project Team efforts. the Retail Store Operations Project Team determined that a new process.) and with different service offerings (manufacturing. have been updated. It was determined that the most efficient way to perform this validation was to first update one of the Return product categories and then use the updated category as a template for the other two. D4 Deliver Retail Product would provide a significant enhancement to the Model by: 1) identifying the common processes in this end-point in the supply chain.0 for D4. Additionally. to capture the unique and specific activities in delivering a Retail Product. There are a number of metrics that have been proposed for this new process element but consensus has not yet been reached on their definitions and calculations. or exchange for a returned item.Deliver Retail Product. 8 April 2003 . Process Changes Retail A number of companies with business interests focused in the retail sector identified a requirement for the Model to be modified to better describe the unique sequence of activities in the final step of delivering a retail product to the consumer. best practice and input/output sections of the Return processes would be expanded in the next release of the Model. It is important to note that D4 is not specific to the retail industry. electronics. and 3) beginning to develop the metrics to assess performance in this environment. The change reflected the Supply Chain Council’s consensus recognition of the requirement for all organizations within a supply chain to put in place activities associated with the return of products for any reason. It is anticipated that two new project teams.) validated the findings of the Project Team and confirmed that these unique processes were not retail industry-specific. A Return Project was authorized with a charter to validate the existing process language and the graphic depiction of those processes. The expansion of the Model to include return activities was originally proposed by a Maintenance. D4 . A number of Council members in other industry sectors (defense.0. refund. chemical. This work will be replicated for R1 and R3 in the next Model revision. Additionally.0 Changes There are a number of major changes within Version 6. a retail pilot implementation team and a retail benchmarking team will complete these definitions and they will be included in the next version of the Model. The addition of Return extended the scope of the Model into the area of post-delivery customer support.0 and Version 5. Return Perhaps the most significant change in Version 4. This section will highlight those changes. it was determined that there was a requirement for more precision in the Return language of the Model and how the activities were presented graphically. and the consolidation of items into a final delivery that are not included in D1. Based on the use of Version 5.0.0 was released it was anticipated that the metrics. D4 includes a new process. the group identified a requirement for a new process in Return to capture the activities associated with the issuance of credit. Some metrics are included in Version 6. © Copyright 2003 Supply-Chain Council.Deliver Stocked Product. 2) establishing a common language to describe these activities. and inputs and outputs have been expanded. etc. Repair and Overhaul task force associated with the Aerospace and Defense Special Industry Group.SCOR Version 6. After testing the use of Version 5. When Version 5. The graphics and the process descriptions have been updated and metrics. etc. picking product. Checkout.0 in the modeling of specific retail supply chains. closely conforms to D1 . Inc. The principal differences between D1 and D4 are the processes associated with selecting and routing carriers. In this release of the Model SR2 and DR2 (MRO Product).0 was the inclusion of a new Level 1 Process element: Return. third party logistics.

As such. Best practice. 9 April 2003 . the SR2 and DR2 processes have been completely separated and the flow has been revised to reinforce the “building block” modeling convention. This convention recognizes that there are activities that both the returning organization and the receiving organization are required to perform. Inc. these activities are associated with Source (returning raw materials to the supplier) and Deliver (receiving returned finished goods from the customer). eBusiness Best Practice Changes The Council has long recognized the changing environment in the technology associated with the conduct of supply chain practice. however. Continuous review of technology’s impact on supply chain practice has led to the conclusion that although the technology has been changing the processes remain the same.Additionally. © Copyright 2003 Supply-Chain Council. that supports the processes is continuing to evolve and this Version of the Model completes a specific effort to update the best practice and technology sections of the process table to formally recognize proven eBusiness methodologies and technology.

© Copyright 2001 Supply-Chain Council. Unlike other organizations with large technical staffs. and identifying the volunteer resources. the new Model is published for the SCC membership.0 were developed in a Committee structure that was focused on developing a stable. features and inputs and outputs) or a research report (white paper). Changes to the Model are normally initiated by a Council member or members (but may be initiated by a Special Industry Group. It is expected that the normal term of a project team will be between 3-6 months. These self-organizing and self-directed teams propose areas of investigation. the Project Team crafts the details of their scope of work and determines whether it is likely their efforts will lead to a Model change (which generally includes the modification of SCOR processes. The change process and the coordination of the project team activities is led by the Technical Development Steering Committee (TDSC). and 7) following the approval of the Board. the Supply Chain Council shifted its technical development focus to specific implementation issues. The current technical development process relies on project teams composed of volunteers from Supply Chain Council member organizations.The Technical Change Process The SCOR Model is developed and maintained by the voluntary efforts of the Supply Chain Council members. an implementation project team. 3) the TDSC reviews the proposed Charter and provides feedback on the proposed changes to the initiating group. Essentially. best practice. Inc. metrics. The primary mechanism for changing the Model is the Project Team. which is comprised of elected representatives from the Council’s membership. 6) after final technical review the TDSC forwards the technical community recommendations for proposed changes/additions to the SCC Board of Directors. schedules and milestones. In 2002. confident that the Model’s stability had been demonstrated with over 5 years of application experience by Council members. or the Chief Technical Officer). These activities are coordinated by the Supply Chain Council’s Technical Development Steering Committee. researching and validating those changes. These project teams are short-lived groups that focus on specific Model challenges. The Model change process is documented on the SCC’s website. usable Model that could be used by experienced Council members as well as organizations newly introduced to the SCOR concept. 10 July 2001 . SCOR Model versions prior to Version 6. pursue and develop proposals for Model development and publish research results on the Council website. the process consists of: 1) The Council issues a call for volunteers to work on an identified need for revision or change. 4) upon approval. the Council depends on the contributions of its members to actively advance the state of knowledge in supply chain by identifying required Model changes. scope of work. a standing body elected by their peers in the Council. 5) the Project Team proposes how to integrate proposed changes into the overall Model. 2) volunteers submit a Charter Proposal to the TDSC outlining the concept. and developing the consensus regarding the proposed changes.

PLAN © Copyright 2003 Supply-Chain Council. Inc. 11 April 2003 .

12 April 2003 . and Aggregate Supply-Chain Requirements P1. D1.10) Order Backlog.P1: Plan Supply Chain • (Customer) Customer Requirements • (D1.1.6) Revised Capital Plan (EP.3) Planning Data (EP. Inc.1 • (EP.6) Outsource Plan (EP.1) Planning Decision Policies • (EP. EP.8) Regulatory Requirements (Customer) Inventory © Copyright 2003 Supply-Chain Council.6) Projected Internal and External Production Capacity (EP.4) Inventory Strategy Identify.5. Prioritize.2) Supply Chain Performance Improvement Plan • (EP. Shipments • (EP.4) Product MAKE Plans (P4. P3.4) Sourcing Plans (P3.4 Establish and Communicate Supply-Chain Plans • Supply Chain Plans (P2.3) Planning Data • (EP. Assess. and Aggregate SupplyChain Resources P1.9) Revised Aggregate Forecast and Projections. Revised Business Assumptions P1.4) Delivery Plans (EP.1.2 Identify.5.1) (Customer) • • • • • • • • • (P2. EP.5.3 Balance Supply-Chain Resources with Supply-Chain Requirements P1.3. P4. EP.

customer. Performance Attributes Metric Reliability Forecast Accuracy Delivery Performance to Customer Request Date Fill Rate Cumulative Source/Make Cycle Time Re-plan Cycle Time Demand/Supply Planning Costs Sales per Employee Return on Assets Capacity Utilization Inventory Days of Supply Cash-to-cash Cycle Time Responsiveness Flexibility Cost Assets Best Practices Features Supply/demand process is highly integrated from customer data gathering to order receipt. Supply chain modeling and visualization system Event-driven supply chain re-planning Integrated process modeling and software reconfiguration tools None Identified Enterprise resource planning system Customer relationship management system Supply chain planning optimization system None Identified 13 April 2003 . trade-off between service level and inventory investment) All functions and organizations understand their impact on supply/demand balancing. suppliers. and product development Integrated supply chain planning system with interfaces to all supply/demand data sources through public and private digitally enabled supply networks. both currently available and committed (pegged) Tools support balanced decision making (eg. manufacturing. Inc.Process Category: Plan Supply Chain Process Category Definition Process Number: P1 The development and establishment of courses of action over specified time periods that represent a projected appropriation of supply chain resources to meet supply chain requirements. including Source-Make-Deliver resources and requirements from “customers’ customer to suppliers’ supplier” Capability to run “simulated” full-stream supply/demand balancing for “what-if” scenarios A change in the demand signal instantaneously “reconfigures” the production and supply plans Responsiveness and flexibility are emphasized by developing expertise in making business processes re-programmable. materials management. re-configurable and continuously changeable Supply chain is designed to have supply flexibility equal to demand volatility On-line visibility of all supply-chain demand requirements and resources. marketing. product management. through production to supplier request Re-balancing of full-stream supply/demand on a daily basis. including sales. Enterprise-wide planning system Customer Relationship Systems © Copyright 2003 Supply-Chain Council.

e. and time interval. Etc. aggregating. Source Make Deliver D1.10 EP. and Quarterly. Internet Trading Exchanges.Process Element: Identify. i.e. Daily. Corporate forecast.1 The process of identifying. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Forecast Accuracy Intra-Manufacturing Replan Cycle Time None Identified Supply-Chain Finance Costs Forecasting and Demand MIS Costs None Identified Best Practices Features Collaboration among Supply Chain partners extends outwards to customers. Revised Business Assumptions Outputs © Copyright 2003 Supply-Chain Council. Daily. Product Line forecast. Weekly.) among supply chain members. B2B Integration and Application Server Systems Collaborative Planning Systems Standards Based (RosettaNet. Inc.6 months. D1. spanning the supply chain. etc) B2B integration tools and systems Advance Planning and Scheduling System Supply Chain Event Management Software Inputs Plan Digital links (XML Based. Planning Replanning Business Rules Plan Changes Collaboration among Operations Strategy Team None Identified Joint Service Agreements (JSA) “Push-based” forecasts are replaced with customer replenishment “pull-based” signals Systems support accurate on-line visibility of full-stream demand requirements and priorities Supply Chain Advanced Planning Systems Supply Chain Integration Systems Integration between supply chain advanced planning and ERP execution systems Supply Chain Capacity Planning Systems B2B Integration and Application Server Systems Real-time exchange of supply chain information between supply chain members Collaborative planning systems. The sales forecasting level is the focal point in the corporate hierarchy where the forecast is needed at the most generic level. Monthly. SKU.9 Plan 14 Source Make April 2003 Deliver . Annual. The sales forecasting time horizon generally coincides with the time frame of the plan for which it was developed i. SKU by Location. (Customer) Customer Requirements Order Backlog.3 EP. 1-5 years. time horizon.3. Weekly. all sources of demand for the integrated supply chain of a product or service at the appropriate level. eBXML. horizon and interval.e. OAGI. Divisional forecast. Shipments Planning Data Revised Aggregate Forecast and Projections. Prioritize and Aggregate Supply Chain Requirements Process Category Definition Process Element Number: P1. The sales forecast is comprised of the following concepts: sales forecasting level. i. EDI. 1. Monthly. and prioritizing. The sales forecasting time interval generally coincides with how often the plan is updated.

6 EP. Inc. Performance Attributes Metric Reliability Responsiveness Flexibility None identified None identified Cumulative Source/Make Cycle Times Intra-Manufacturing Replan Cycle Time Planning Costs as a % of Total Supply Chain Costs Supply Chain Finance Costs Product Data (MIS) Management Costs Manage Finished Goods Data (MIS) Inventory Days of Supply Inventory Turns Return On Assets Cash-to-Cash Cycle Time Cost Assets Best Practices Features Collaborative Planning.) among supply chain members. prioritizing.Process Element: Identify. Etc. EP. obsolete) for appropriate action. usable. Prioritize and Aggregate Supply Chain Resources Process Category Definition Process Element Number: P1.4 P3.6 EP.5.4 P4. Forecasting and Replenishment (CPFR) Business process modeling Workflow systems Collaboration Tools Advanced Planning Optimization Constraint based planning Integrated resource and material plan B2B Integration and Application Server Systems Collaborative Planning Systems Real-time exchange of supply chain information between supply chain members Collaborative planning systems. Review product profitability. excess.2 The process of identifying.5.8 Plan 15 April 2003 . all sources of supply that are required and add value in the supply chain of a product or service at the appropriate level.4 EP. Inputs (Customer) Inventory Sourcing Plans Product MAKE Plans Delivery Plans Planning Data Projected Internal and External Production Capacity Revised Capital Plan Outsource Plan Regulatory Requirements Outputs © Copyright 2003 Supply-Chain Council.6 EP. and aggregating. Lead times updated monthly.5. Plan Source Make Deliver Source Make Deliver P2. EP. None Identified None Identified Joint Service Agreements (JSA) Digital links (Internet. Internet Trading Exchanges. as a whole with constituent parts.3 EP. horizon and interval. EP. EDI. ABC and cost modeling. Categorize 100% of total inventory (active.

16 Source Make Deliver Source Make Deliver April 2003 . assets.2 EP. Collaborative Planning.4 Outputs Plan © Copyright 2003 Supply-Chain Council. Forecasting and Replenishment (CPFR) Business Intelligence (BI) Customer Relationship Management (CRM) Inputs Plan Planning Decision Policies Supply Chain Performance Improvement Plan Inventory Strategy EP. Inc.3 The process of identifying and measuring the gaps and imbalances between demand and resources in order to determine how to best resolve the variances through marketing. (or other supply chain inconsistencies) in an iterative and collaborative environment. Performance Attributes Metric Reliability Delivery Performance to customer request date Fill Rate Perfect Order Fulfillment Order Fulfillment Lead Time Supply Chain Response Time Production Flexibility Total Supply-Chain Costs Value Added Productivity Inventory days of Supply Asset Turns Cash-to-Cash Cycle Time Responsiveness Flexibility Cost Assets Best Practices Features Demand Planning. costs. Analytical tools enable the ongoing maintenance and improvement of the business rules based on actual data. Demand Flow Leadership Software that provides multiple data models including the business rules and metrics for the entire supply chain planning process. Supply chain planning systems and communication technologies as well as newly defined standards that reflect the CPFR model and ‘participate’ in the entire planning process. business rules and transaction data. pricing. flexibility. packaging. Algorithms use the business rules and metrics as the drivers for the planning engine.Process Element: Balance Supply-Chain Resources with Supply-Chain Requirements Process Category Definition Process Element Number: P1.1 EP. warehousing. Software that provides customer input and keeps the customer informed about the planning of the production and delivery process by managing all contacts and communication with the customer thorough all channels including internet and traditional sales and customer service channels. A data warehouse / data mart is the source of all planning (master) data. outsource plans or some other action that will optimize service.

P3. Etc. Systems support accurate on-line visibility of full-stream demand requirements and priorities as well as resource utilization and availability.1. 17 April 2003 .4 The establishment and communication of courses of action over the appropriate time-defined (long-term.1 © Copyright 2003 Supply-Chain Council. Advance Planning and Scheduling System Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Supply Chain Plans (Customer) P2. EDI. P4. monthly.Process Element: Establish and Communicate Supply Chain Plans Process Element Definition Process Element Number: P1. Supply Chain Advanced Planning Systems Supply Chain Integration Systems Integration between supply chain advanced planning and ERP execution systems Supply Chain Capacity Planning Systems Collaborative Planning Systems Real-time exchange of supply chain information between supply chain members Collaborative planning systems. Internet Trading Exchanges. annual. weekly) planning horizon and interval. Inc.1.) connecting (or between) supply chain members. Planning Replanning Business Rules Plan Changes Collaboration among Operations Strategy Team Supply Chain Advanced Planning Systems Supply Chain Integration Systems Integration between supply chain Advanced Planning and ERP execution systems Supply Chain Capacity Planning Systems Joint Service Agreements (JSA) Digital links (Internet. spanning the supply chain. representing a projected appropriation of supply-chain resources to meet supply-chain requirements. Performance Attributes Metric Reliability Perfect Order Fulfillment On-time Delivery None identified Cumulative Source/Make Cycle Time Total Supply Chain Response Time Supply Chain Finance Costs Inventory Carrying Costs Inventory Days of Supply (Inventory Turns) Return on Assets Cash-to-Cash Cycle time Responsiveness Flexibility Cost Assets Best Practices Features Collaboration among Supply Chain partners extends outwards to suppliers and customers.

DR2.3 P2.3) Sourced Product on Order • (EP.3) Planning Data © Copyright 2003 Supply-Chain Council.4.2. S3.3. Product Routings • (D2.1.1.3) Reserve Resources and Determine Delivery Date P2. Bill of Materials. 18 April 2003 .4) • (Supplier) Product Availability • (S1. D3. S3.1. and Aggregate Product Resources • Sourcing Plans (P1.7) Item Master. S3. Inc.3) Planning Data • (EP. S2. P4.3.4) Production Plans • (P4.4) Delivery Plans • (EP.2. S1.4.2 Identify. D1. S3.1. S2.4) Establish and Communicate Supply Chain Plans • (P3.6) Inventory Availability • (S1. S2. Assess.P2: Plan Source • (P1.1 • (EP. Prioritize. and Aggregate Product Requirements P2.3.1.4 Balance Product Resources with Product Requirements Establish Sourcing Plans P2.1) Planning Decision Policies Identify.3. D2.

Process Category: Plan Source Process Category Definition Process Number: P2 The development and establishment of courses of action over specified time periods that represent a projected appropriation of material resources to meet supply chain requirements. including strategic partners. etc.) with own resources Joint Service Agreements with suppliers define the levels of “flexibility” or resource upside available within stated lead times and agreed upon conditions Distinct and consistent linkages exist to ensure disruptions and opportunities in material resources are quickly and accurately communicated and acted upon Inter-company resource planning with EDI/Internet communication All key participants in the supply chain. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Supplier Delivery on-time Delivery Performance Supplier Fill Rate Cumulative Source Cycle Time Source Flexibility None identified None identified Best Practices Features EDI links integrate supplier resource information (inventory. have full visibility of the demand/supply plan Supply Chain Event Management Systems © Copyright 2003 Supply-Chain Council. Inc. EDI. None Identified Bi-directional Digital Links (XML. capacity availability. etc) or Internet procurement networks to customer service linkage 19 April 2003 .

None Identified Source Make Deliver P3.4 P4.3. as a whole with constituent parts.4 Outputs Plan © Copyright 2003 Supply-Chain Council. D3.4 EP.Process Element: Identify. Bill of Materials. Product Routings Reserve Resources and Determine Delivery Date P1. Inc.7 D2. and considering.3 EP.3 20 Source Make April 2003 Deliver . prioritizing.1 The process of identifying. all sources of demand for a product or service in the supply chain . and Aggregate Product Requirements Process Element Definition Process Element Number: P2. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Forecast Accuracy None Identified None identified None Identified None Identified Best Practices Features The demand plan is updated frequently to reflect actual consumption or customer forecast information Capacity and supply constraints are balanced against demand during the planning cycle Master production scheduling reflects management of capacity and/or supply constraints Sales and operations agree to limits of short term flexibility None Identified Inputs Plan Establish and Communicate Supply Chain Plans Production Plans Delivery Plans Planning Data Item Master. Prioritize.

as a whole with constituent parts.4. Source 21 Source April 2003 . S3. Assess.6 S1. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified None identified None Identified Best Practices Features Capacity and supply constraints identified during MPS schedule process are balanced against demand during the planning cycle Inventory is planned at the part level. S2. and considering. Inc. based on supply and demand variability.1.3 Sourced Product on Order Planning Data EP.1.3 Outputs Plan © Copyright 2003 Supply-Chain Council.4. all material and other resources used to add value in the supply chain for a product or services. Inventory performance is measured at the dollar and unit levels Inventory targets are reviewed and adjusted frequently Obsolete inventory is revi ewed at the part number level None Identified Inputs Plan None Identified (Supplier) Product Availability Inventory Availability Make Deliver Make Deliver S1. S3.Process Element: Identify. evaluating. S2.2 The process of identifying. and Aggregate Product Resources Process Element Definition Process Element Number: P2.

Process Element: Balance Product Resources with Product Requirements Process Element Definition Process Element Number: P2.3 The process of developing a time-phased course of action that commits resources to meet requirements.1 Outputs Plan © Copyright 2003 Supply-Chain Council. Inc. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Supplier on-time Delivery Performance None identified None identified Material planning costs None identified Best Practices Features Suppliers share responsibility for balancing supply and demand through Joint Service Agreements None Identified Inputs Plan Planning Decision Policies EP. 22 Source Make Deliver Source Make Deliver April 2003 .

3 © Copyright 2003 Supply-Chain Council. XML.1.) is used to provide real-time demand information and handle routine transactions Blanket purchase orders cover period requirements None Identified Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Sourcing Plans P1. S3. S3.Process Element: Establish Sourcing Plans Process Element Definition Process Element Number: P2.2.2 S1.3.4 The establishment of courses of action over specified time periods that represent a projected appropriation of supply resources to meet sourcing plan requirements. DR2.1.1. D2.3. etc.4 April 2003 . S2. P4. Performance Attributes Metric Flexibility and Responsiveness Supplier Cycle Time Reliability Responsiveness Flexibility Cost Assets Supplier on-time Delivery Performance Supplier Fill Rate None identified None identified None identified None Identified Best Practices Features Digital Linkage (EDI. None Identified 23 D1. Inc.

Inc. Product Routings • (D2.3) Planning Data • (M1. D2.3. Prioritize. M3.3) Reserve Resources and Determine Delivery Date P3.4) Sourcing Plans • (EP. M2.P3: Plan Make • • • • (P1. M2.3. M3.2 P3.3 P3.4) Delivery Plans (EP.3) Planning Data (EP. M3.2. 24 April 2003 .2. and Aggregate Production Requirements P3.2.1.3) Inventory Availability © Copyright 2003 Supply-Chain Council.1.1 • (EP.2. D3. D1.3.4 Balance Production Resources with Production Requirements Establish Production Plans Identify.1) Planning Decision Policies Identify.4) Supply Chain Plans (P4. P4.1.2) Production Schedule • (M1.1. Bill of Materials. M1. Assess.1.2. M2. D3.3) • (P2. and Aggregate Production Resources • Production Plans (P1. P2.7) Item Master.

Inc. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Production plan adherence None identified Cumulative Make Cycle Time None identified Total WIP Inventory DOS Best Practices Features Distinct and consistent linkages exist to ensure that disruptions and opportunities in production are quickly and accurately communicated and responses made Multi-plant supply/demand planning and execution © Copyright 2003 Supply-Chain Council. 25 April 2003 .Process Category: Plan Make Process Category Definition Process Element Number: P3 The development and establishment of courses of action over specified time periods that represent a projected appropriation of production resources to meet production requirements.

3 26 Source Make April 2003 Deliver .7 Outputs Plan © Copyright 2003 Supply-Chain Council. and delivery plans) Digital linkage to supplier quoting.Process Element: Identify. all sources of demand in the creation of a product or service. Bill of Materials. and considering as a whole with constituent parts. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Forecast Accuracy None identified None Identified None Identified None Identified Best Practices Features Consideration of supplier’s material availability in company’s supply resources (including supplier’s production plans & capability.3 EP. Source Make Deliver D2.3. Product Routings Reserve Resources and Determine Delivery Date P1.4 EP. D3. Inc. planning. Prioritize. prioritizing.1 The process of identifying.4 P4. configuration and customer service applications Inputs Plan Supply Chain Plans Delivery Plans Planning Data Item Master. inventory. and Aggregate Production Requirements Process Element Definition Process Element Number: P3.

1.2. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features Inventory targets are reviewed and adjusted frequently Obsolete inventory is reviewed at the part number level None Identified Inputs Plan Sourcing Plans Planning Data Production Schedule P2. M2. M3. and Aggregate Production Resources Process Element Definition Process Element Number: P3.2 The process of identifying.2 M1. M2.3 Inventory Availability Outputs Make Plan 27 Source Make April 2003 Deliver . evaluating.1. Deliver M1.4 EP.3 None Identified Source © Copyright 2003 Supply-Chain Council.Process Element: Identify. M3. all things that add value in the creation of a product or performance of a service. Assess. Inc. as a whole with constituent parts. and considering.2.

Process Element: Balance Production Resources with Product Creation Requirements Process Element Definition Process Element Number: P3. OAGI) to automatically query inventory levels. 28 Source Make Deliver Source Make Deliver April 2003 .1 Outputs Plan © Copyright 2003 Supply-Chain Council. Inc. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified Cumulative Make Cycle Time None Identified Total WIP Inventory DOS Best Practices Features Inventory targets are reviewed and adjusted frequently Digital Linkages using XML standards (Rosettanet. Inputs Plan Planning Decision Policies EP.3 The process of developing a time-phased course of action that commits creation and operation resources to meet creation and operation requirements. eBXML.

2. P2.2 D1.3. D2. 29 April 2003 .3 © Copyright 2003 Supply-Chain Council.1. Inc. M2. eBXML. M3.4 The establishment of courses of action over specified time periods that represent a projected appropriation of supply resources to meet production and operating plan requirements.1.3. Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Production Plans P1.2 M1. OAGI) to automatically query production capacity and ATP and schedule unplanned orders. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Production Plan Adherence None identified Cumulative Make Cycle Time None identified Total WIP Inventory DOS Best Practices Features Unplanned orders are accepted and scheduled only when there is no detrimental impact on overall product delivery plan Digital Linkages using XML standards (RosettaNet. D3.Process Element: Establish Production Plans Process Element Definition Process Element Number: P3.1. P4.

4 Establish Delivery Plans P4. Inc. and Aggregate Delivery Requirements P4. Assess.3.3) Order Backlog (Customer) Customer Requirements Merchandise category/classification Product/category lifecycle (D4.2.3) Planning Data (EP.7) Item Master (EP. Prioritize.1.9) Service Levels (EP. D3.3) Inventory Availability/Delivery Date • (D3.3.1) Identify. D2.2 • Delivery Plans (P1. 30 April 2003 . and Aggregate Delivery Resources • • • • (P2.1 P4: Plan Deliver • (EP.2) • Store Allocation Instructions Balance Delivery Resources with Delivery Requirements P4.6) Point of Sale Data (daily) Store Shelf Inventory Counts Dc/vendor Lead Time Dc/vendor Transit Time Year-to-Year for Like SKU/Subclass Stock-out History Promotion/Event Plans Markdown Plans Actual Shrink EOQ/ESQ’s P4. D2.3) Planning Data (D1.3. P2.3) • Stocking Requirements (D4.1. D2.3) Resource Availability © Copyright 2003 Supply-Chain Council.1) Planning Decision Policies Identify.3. D3.4) Supply Chain Plans (EP. D1.4) Sourcing Plans (P3.7) Routings (D1.3.4) Production Plans (EP. P3.3 • Item Stocking Requirements (D4.• • • • • • • • • • • • • • • • • • • (P1.

agreement on levels of flexibility) Tightly integrated DRP/ERP Systems Supply Chain Event Management Systems Trading Partner Networks including Third Party Logistics Providers None Identified © Copyright 2003 Supply-Chain Council. visibility to supply resources. 31 April 2003 .Process Element: Plan Deliver Process Element Definition Process Element Number: P4 The development and establishment of courses of action over specified time periods that represent a projected appropriation of delivery resources to meet delivery requirements. Inc. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Forecast Accuracy Delivery Performance to Customer Request Date Fill rate None Identified Order Management Cycle Time Total Deliver Costs Finished Goods Inventory DOS Best Practices Features Distinct and consistent linkages exist to ensure disruptions and opportunities in delivery resources are quickly and accurately communicated and responded to Proactive education of customers to set expectations and encourage close working relationships (knowledge of long-lead items.

1 The process of identifying. Tightly integrated supply chain or demand planning with point of sale and customer inventory systems VMI support in demand planning or supply chain planning B2B Integration and Application Server Systems None Identified Integrated software systems A software based system that corrects shelf inventory levels based on actual product present (possible RFID solution). lowers safety stock requirements. Identifies stock-outs from shrinkage or item misplacement Pilot by Wal-Mart/MIT POG software/field force None Identified 32 April 2003 . prioritizing.Process Element: Utilize Current Label Process Element Definition Process Element Number: P4. production plans. EDI.) provide accurate visibility into actual demand via customer forecasts. Performance Attributes Metric Reliability Cost Assets Forecast Accuracy Sales Floor Error Rates On Shelf Locations Shelf SKU Accuracy In-Stock Position (Inventory) Order Management Cycle Time % Overtime Labor None Identified None Identified Best Practices Features Eliminate “special deals” sales to reduce returns and improve forecast accuracy (reduces uncertainty. and inventory positions Vendor managed inventory program in which sourcing entity manages customer inventory and plans replenishment Forecasts are replaced with actual customer replenishment signals and orders where possible Unplanned orders are accepted only when there is no impact on overall product delivery plan Electronic matching between POS data and store inventory (shelves and back room) Matching shelf stock to expectations None Identified Responsiveness Flexibility Ideal Stock position Based on Days/Weeks of Supply RFID and other tagging Planogram Flexibility for Seasonal/Promotional Changes © Copyright 2003 Supply-Chain Council. and considering. Inc. product plans. cheaper to administer) Customer relationship and Digital linkages (XML. etc. as a whole with constituent parts. all sources of demand in the delivery of a product or service.

Inc.3.6 Plan Source Make Item Stocking Requirements Store Allocation Instructions © Copyright 2003 Supply-Chain Council.9 EP.3 EP.4 EP. D3.3.Inputs Plan (Customer) Customer Requirements Supply Chain Plans Planning Data Service Levels Item Master Routings Order Backlog P1. D2.2 33 April 2003 .7 EP. Deliver Deliver D4.7 Source Make D1.3 Merchandise category/classification Product/category lifecycle Point of Sale Data (daily) Store Shelf Inventory Counts Dc/vendor Lead Time Dc/vendor Transit Time Year-to-Year for Like SKU/Subclass Stock-out History Promotion/Event Plans Markdown Plans Actual Shrink EOQ/ESQ’s Outputs D4.

and considering. D2. Inc. Assess.Process Element: Identify. as a whole with constituent parts. and Aggregate Delivery Resources Process Element Definition Process Element Number: P4.2 The process of identifying.3 D3. evaluating. all things that add value in the delivery of a product.3 Outputs Plan © Copyright 2003 Supply-Chain Council.3 34 Source Make April 2003 Deliver .3.4 P3. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Forecast Accuracy None Identified Order Management Cycle Time None identified None Identified Best Practices Features None Identified None Identified Inputs Plan Sourcing Plans Production Plans Planning Data Inventory Availability/Delivery Date Resource Availability P2. Source Make Deliver D1.4 EP.

Inc. 35 Source Make Deliver Source Make Deliver April 2003 . First-In-First-Out (FIFO) is utilized as the default scheduling priority Rules-based distribution planning system Trading partner agreements Inputs Plan Planning Decision Policies EP.Process Element: Balance Delivery Resources with Delivery Requirements Process Element Definition Process Element Number: P4.1 Outputs Plan © Copyright 2003 Supply-Chain Council.3 The process of developing a time-phased course of action that commits delivery resources to meet delivery requirements Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Delivery Performance to Customer Request Date None Identified None Identified None identified None Identified Best Practices Features Demand priorities reflecting strategic customer relationships as business policies are automatically followed in allocating resources.

Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Delivery Performance to Customer Request Date Fill Rate None Identified None Identified None Identified Finished Goods Inventory Days of Supply Best Practices Features Plans which do not violate business rules are communicated openly and cross-functionally for execution Plans that violate business rules (eg Joint Service Agreements) are addressed crossfunctionally.Process Element: Establish Delivery Plans Process Element Definition Process Element Number: P4.3.3 D4.4 The establishment of courses of action over specified time periods that represent a projected appropriation of delivery resources to meet delivery requirements. P3. P2.1 None Identified None Identified None Identified D1. D2.1. etc. according to defined business rules None Identified Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Delivery Plans P1.1 Stocking Requirements © Copyright 2003 Supply-Chain Council. D3.2. each functional area develops prioritized recommendations for the subsequent planning period Specific changes to the plan are agreed to cross-functionally. quality.) To address conditions which cannot be adequately satisfied during the current planning period. considering total business impacts (revenue. cost. 36 April 2003 . Inc. customer service.3.

3 P5.7 Return Process Workflow Definitions & Policies ER.4 Delivery Plans EP. D3) Actual Sales History (DR1.1 • Return Capabilities and Constraints DR1. D2.4 Inventory Strategy Identify.3) Planning Data (EP.2 Production Requirements P3.2 Supply Chain Performance Plan • EP.5 Asset Return Capabilities ER.5.3.4 Make Plans / Overhaul and Rehab Capabilities P4.4) Return Inventory Transfer Data ER. DR3. 37 Deliver Resources P4.6 Return Transportation Guidelines.1) Business Rules (ER.2 April 2003 .9) Revised Aggregate Forecast and (D1.1.8) Regulatory Requirements P5. Inc.1 • EP. EP. Revised Assumptions Contractual Obligations (EP.1 Return Plans (DR2.4 Return Inventory Targets ER.1 Business Rules ER.1.P5: Plan RETURN • • • • • • • • Projections. and Aggregate RETURN Requirements P5. DR3.1) Return Rules and Policies DR1.3 Planning Data (EP.1 • Process Procedures ER.1) Historical Return Rates (ER. Assess.2 Capabilities of the Return Processes ER.1 Planning Decision Policies • EP.6) Projected & External Production Capacity.8 Regulatory Requirements © Copyright 2003 Supply-Chain Council. Prioritize.1.1 Source Requirements P2.3 Data & Return Capabilities ER. DR2. & Agreements ER. DR2.4 Sourcing Plans P3.1.2 Identify.1.3. DR2. Policies. Outsource Plan EP. Revised Capital Plan.1 • Return Plan Schedule DR1. DR3.4 Balance RETURN Resources with RETURN Requirements Establish and Communicate RETURN Plans P5. DR3.9 Budget Constraints (DR2. and Aggregate RETURN Resources • • • • • • • • • • • • • • • • • • • • • P2.8 Regulatory Requirements EP.

predict yield rates for reusable products or components. 38 April 2003 . reverse drop shippers. The scope includes unplanned returns of sold merchandise as well as planned returns of “rotable” products that are refurbished for reissue to customers. Inc. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified RETURN product velocity (movement through the process) Ability to augment RETURN capacity rapidly None Identified RETURN assets utilization Best Practices Features Use Demand Planning Demand Planning Systems to forecast returns. Collaborative planning and forecasting with RETURN outsourcing partners (3PL. etc.) Planning and Forecasting Outsourced RETURN process © Copyright 2003 Supply-Chain Council.Process Element: Plan RETURN Process Element Definition Process Element Number: P5 A strategic or tactical process to establish and adjust courses of action or tasks over specified time periods that represent a projected appropriation of return resources and assets to meet anticipated as well as unanticipated return requirements. and project a revenue stream. determine demand in a resale market.

My background is A&D. as a whole with constituent parts. evaluating. Sales.1.Process Element :Identify.1 The process of identifying. all sources of demand for the return of a product.3 Revised Assumptions Contractual Obligations Overhaul and Rehab Plans (Applies to the A&D situation) Make Deliver Return EP.9 Marketing. Use historical return data to determine an historical return rate for individual products and/or for product groups and then apply these return rates against both forecasted sales and actual sales. and Aggregate Return Requirements Process Element Definition Process Element Number: P5. Product Management/ Engineering Marketing. The historical return data can also include statistics regarding the latency time between the sale (delivery date) and the return authorization request. call centers or CRM system. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features Real time RETURN anticipation Use Historical Based Return Rate Forecasts Having real time data on return demand and including it in the plan and forecast. Assess. Requires a connection with customers. Product Management/ Engineering Marketing. Revised Assumptions Projections EP. Sales. DR3. P3 (As pertains to planning overhaul/ refurbishment ops) Historical Return Rates © Copyright 2003 Supply-Chain Council. DR1. Sales. possibly to the store level with retail returns. Inputs Plan Source Planning Data (incl. Legal Marketing. DR2.1 39 April 2003 . and considering. data from CRM or sales return system) Revised Aggregate Forecast and Projections. Inc. (This is a retail-centric definition.1. Sales.

1 ER. Source 40 Make Deliver April 2003 Return .Business Rules Regulatory Requirements Outputs ER. Inc.8 Plan © Copyright 2003 Supply-Chain Council.

8 EP.4 ER. or constrain the processes for the return of a product.8 Plan © Copyright 2003 Supply-Chain Council.2 Business Rules Capabilities of the Return Processes Data & Return Capabilities Return Inventory Targets Asset Return Capabilities Return Transportation Guidelines. execute. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features Rapid reconfiguration of RETURN capacity Use of RETURN tracking and projection systems and flexible partner agreements that allow the rapid addition of RETURN capacity to match unexpected demand. Inc.4 Make Plans Delivery Plans Planning Data Projected & External Production Capacity.9 DR2. & Agreements Return Process Workflow Definition & Policies Regulatory Requirements Outputs Return ER. Outsource Plan Regulatory Requirements Budget Constraints Return Inventory Transfer Data P3.1 ER.6 ER.3 EP.5 EP.3 ER. Policies.2 The process of identifying. Collaborative planning tools with the Source suppliers Joint Service Agreements with Source suppliers to share responsibilities and costs of returns Allow Source suppliers full visibility into the current return situations and the forecasted return activity Inputs Plan Sourcing Plans P2.7 ER.Process Element: Identify. Assess.6 Shared supply chain forecasting and event management functionality with Source suppliers Source Make Deliver EP.4 EP. DR2. Revised Capital Plan.3.5 ER. and Aggregate Return Resources Process Element Definition Process Element Number: P5. evaluating.4 P4. and consideration for all resources that add value to. Source 41 Make Deliver April 2003 Return .4 ER.

Inc.2 Outputs Plan Source Make Deliver Source Make Deliver Return EP.1 EP. Advanced math model “solvers” that optimize / minimize constraints.3 The process of developing courses of action that make feasible the commitment the appropriate return resources and or assets to satisfy return requirements.4 © Copyright 2003 Supply-Chain Council. restocking priorities and costs. restocking strategy) EP. routing. 42 April 2003 Return . Cost accounting system to determine the best return process to follow from a cost of business perspective Inputs Plan Planning Decision Policies Supply Chain Performance Plan Inventory Strategy (incl. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features Dynamic return restocking management Dynamic prioritization of restocking plans in order to rapidly resell products that are in demand thus reducing new inventory demand.Process Element: Balance Return Resources with Return Requirements Process Element Definition Process Element Number: P5. ABC costing system Advance Planning Engines applied to returns.

the Internet.1 DR1. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features Rapid. DR3. DR3.1 Return DR2. DR3. by transmitting new requirements and directives using mathematical models. outsourcing and flexible partnership agreements.1. DR2.4 The establishment and communication of courses of action over specified time periods that represent a projected appropriation of required return resources and or assets to meet return process requirements. dynamic reconfiguration of RETURN process to meet demand The ability to reset and reconfigure the RETURN process capacity.3.Process Element: Establish and Communicate Return Plans Process Element Definition Process Element Number: P5.1 DR1.2 ER.2 Return Capabilities and Constraints Return Plan Schedule Process Procedures © Copyright 2003 Supply-Chain Council.2 DR1.1 P2.2.2 P3. Also requires integration with the CRM system for real time redirection of customer returns based upon cost and capacity. Intranet and Extranet communications tools Full internal (and external if Source suppliers share in the Return process responsibilities) visibility to RETURN plans Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Deliver Resources Production Requirements Source Requirements Return Plans Return Rules and Policies P4. etc. routings. Inc.2. Return 43 April 2003 .

P3. P4.3.2. P1. P4. P2.2. P4.1.1) • Supply Chain Performance Improvement Plan (P1.1.3) • Product Routings • Capacity Constraints • Planning Decision Policies • Product Routings • Capacity Constraints • Planning Decision Policies EP. P2.2.1) © Copyright 2003 Supply-Chain Council.2.3.2) • Projected Internal and External Capacity (P1.2 EP. P3.5 Manage Integrated Supply Chain Inventory Manage Integrated Supply Chain Capital Assets • Inventory Strategy (P1.2) • Make/Buy Decision (P1. P2. 3 Manage Business Rules for PLAN Processes Manage Performance of Supply Chain Manage PLAN Data Collection • Planning Decision Policies (P1.2) 44 April 2003 .4 EP.2. P3.1 EP.2) • Revised Capital Plan (P1. Inc. P3.EP: Enable Plan • Supply-Chain Performance Metrics • Continuous Improvement Process •Business Plan •Strategic Plan •Service Requirements • Supply Chain Execution Data EP.1.1.2) • Outsource Plan (P1.3) • Manage Iintegrated Supply Chain Inventory Information (DR2. • Planning Data (P1.3) • Service Levels (P4. P2.3.

P3.1.9 Manage PLAN Regulatory Requirements and Compliance Align Supply Chain Unit Plan with Financial Plan • Revised Aggregate Forecast and Projections (P1.8 EP.2) • Outsource Plan (P1.1) • Regulatory Requirements (P1.7 Manage Integrated Supply Chain Transportation Manage Planning Configuration • Projected Internal and External Capacity (P1.2) © Copyright 2003 Supply-Chain Council.1) § Business Plan § Strategic Plan EP.1.6 EP.1) • Product Routings (P2.EP: Enable Plan • Product Routings • Capacity Constraints • Planning Decision Policies EP.1.1) • Bill of Materials (P2. Inc. 45 April 2003 .2) • Item Master (P2.1) • Revised Business Assumptions (P1. P3. P4.1. P3. P4.1.

P3.3. developing and maintaining customer and channel performance standards of an entire supply chain such as service levels.3.3 P4.1 Business Plan Strategic Plan Service Requirements Service Levels © Copyright 2003 Supply-Chain Council.Enable Process: Manage Business Rules for PLAN Processes Enable Process Definition Process Number: EP. P2.1 The process of establishing. and objectives. Inc. given service requirements by supply chain stakeholders/trading partners. Supply Chain performance dashboard capability. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified Total Supply Chain Costs None Identified Best Practices Features Integrated business and supply chain planning processes where cross-functional input is leveraged to set business rules.3. 46 April 2003 .e. i. goals. and enforcing decision support criteria for Supply Chain Planning which translate to rules for conducting business. Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Planning Decision Policies P1. maintaining. Business rules align PLAN process policies with business strategy. P4.

Sound Project Management Process and Methodology. Efficient and effective benchmarking process leveraging cross industry metrics and definitions. responsiveness. 47 April 2003 . i. Performance targets established for the execution of supply chain processes are reflected in the process elements for PLAN. cost. cycle time.3 None Identified None Identified Supply-Chain Performance Metrics Continuous Improvement Process © Copyright 2003 Supply-Chain Council.e. delivery reliability. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified Total Supply Chain Costs None identified Best Practices Features Reliable Continuous Improvement Process and Methodology.Enable Process: Manage Performance of Supply Chain Enable Process Definition Process Number: EP. Inc. None Identified Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Supply Chain Performance Improvement Plan P1. and assets.2 The process of measuring actual integrated Supply Chain performance against internal and/or external standards to develop and implement a course of action to achieve targeted performance levels.

eBXML. A data warehouse/data mart is the source of all planning (master) data.3 The process of collecting. P3. Demand History. Analyzing tools enable the ongoing maintenance and improvement of the business rules based on actual data.1.2 Modern supply chain planning systems and communication technologies (XML. Forecast. Collaborative Planning – Planning information (POS information. 48 April 2003 . P4.1. Production Schedule etc.2. Algorithms use the business rules as the driver for the planning engine. web enabled EDI) as well as newly defined standards (eg CPFR. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None identified None identified None Identified Total Supply Chain Costs None Identified Best Practices Features Integrated Demand and Supply Planning Demand Planning.Enable Process: Manage PLAN Data Collection Enable Process Definition Process Number: EP. All required planning and execution data is integrated and shared in between all functional areas within an organization. Memory based planning systems provide one single data model and data mart (including the business rules) for the entire supply chain planning and execution process. P2. Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Planning Data P1. P4. P1.2.2. P2. Supply Planning and especially the Supply Plan Execution are no longer disconnected.1. business rules and transaction data. service providers and customers. Rosettanet) supports the real-time information exchange in between the business community. Single data source for decision support and business rules. manufacturers. Supply Chain Execution Data © Copyright 2003 Supply-Chain Council. Inc. integrating and maintaining the accuracy of supply chain execution information necessary to plan the balance of supply chain resources to demand requirements at both the highest aggregate and lowest SKU planning levels.1.) is shared in between suppliers. P3.

Advanced Planning Systems. Source Make Deliver Return DR2. Finished and Purchased Finished Goods) including replenishment models.3 © Copyright 2003 Supply-Chain Council. Work In Process.e. ownership. Supply Chain modeling capabilities. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified Total Supply Chain Costs None Identified Best Practices Features Capability to run multiple “simulated” fullstream supply/demand balancing against longterm capacity plans and scenarios. i. and stocking locations. Inputs Plan Source Make Deliver Product Routings Capacity Constraints Planning Decision Policies Outputs Plan Inventory Strategy Manage Iintegrated Supply Chain Inventory Information P1. product mix.4 The process of establishing total supply chain inventory strategy and planning the total inventory limits or levels (including Raw Material. Inc. both inter and intra company.Enable Process: Manage Integrated Supply Chain Inventory Enable Process Definition Process Number: EP.1 49 April 2003 .

internal versus contract manufacturing or internal versus 3 Party Logistics) and then acquiring. None Identified Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Revised Capital Plan Projected Internal and External Capacity Make/Buy Decision P1. Capability to run multiple “simulated” fullstream supply/demand balancing against longterm capacity plans and scenarios. P2. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified Total Supply Chain Costs None Identified Best Practices Features Use of Cross Functional Teams to execute the process of developing Long-Term Capacity and Resource Plans.2 P1.e. i.e. maintaining and dispositioning an organization’s capital assets to operate the integrated supply chain.2 P1. Advanced Planning Systems.2.2 P1. Alignment of strategic and business plans with long-term capacity and resource planning.5 rd The process of defining capacity strategy (i. P3. Inc. Product Routings Capacity Constraints Planning Decision Policies Outsource Plan © Copyright 2003 Supply-Chain Council.2.Enable Process: Manage Integrated Supply Chain Capital Assets Enable Process Definition Process Number: EP. 50 April 2003 .2 None Identified Supply Chain modeling capabilities.

None Identified Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Projected Internal and External Capacity Outsource Plan P1. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified Total Supply Chain Costs None Identified Best Practices Features Use of Cross Functional Teams to execute the process of developing Long-Term Capacity and Resource Plans. and the management of transporters both inter and intra company. Product Routings Capacity Constraints Planning Decision Policies © Copyright 2003 Supply-Chain Council. 51 April 2003 .e. Advanced Planning Systems.2 P1.2 None Identified Supply Chain modeling capabilities. i.6 The process of defining an integrated supply chain transportation strategy and maintaining the information which characterizes total supply chain transportation requirements. Inc. Alignment of strategic and business plans with long-term capacity and resource planning Capability to run multiple “simulated” fullstream supply/demand balancing against longterm capacity plans and scenarios.Enable Process: Manage Integrated Supply Chain Transportation Enable Process Definition Process Number: EP.

1. P3.1 Bill of Materials Product Routings © Copyright 2003 Supply-Chain Council.1 P2. and bill of materials. New Items Introductions are part of the Sales and Operations Planning Process at the General Management Business Team Level None Identified None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return Item Master P2. Collaborative Planning. Inc.1. P4. product discontinuation. and after-market support. and real time point of consumption reporting. and Replenishment. product realization (development. Forecasting. introduction and production). rationalization.1 P2.Enable Process: Manage Planning Configuration Enable Process Definition Process Number: EP. This element also includes the management of critical sub processes needed to manage the life cycle of individual item numbers including item masters. including the evaluation of market need. P4. P3.1. event planning (promotions.1. etc. ABC classification.1. P3.). Vendor Managed Inventory. routings. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Forecast Accuracy None Identified None Identified Total Supply Chain Costs Return on Assets Best Practices Features ABC Classification SKU Rationalization Use of Platform Teams in the New Product Development Process Incorporates leading practices such as Efficient Consumer Response.7 The process of defining and maintaining the information about a unique supply chain network for a group of similar or complimentary products through their full life cycle. None Identified None Identified 52 April 2003 .

) when planning for the integrated supply chain network.8 The process of identifying and complying with regulatory documentation and process standards set by external entities (i. trade officials. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified Total Supply Chain Costs None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return Regulatory Requirements P1. etc. government. Inc.Enable Process: Manage PLAN Regulatory Requirements and Compliance Enable Process Definition Process Number: EP. 53 April 2003 .2 © Copyright 2003 Supply-Chain Council.e.

Enable Process: Align Supply Chain Unit Plan with Financial Plan Enable Process Definition Process Number: EP. source. make.9 The process of revising the long-term supply chain capacity and resource plans. A Re-planning process links the supply chain operation with the Business Strategy and the Marketing Strategy. and delivery plans. None Identified Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Revised Aggregate Forecast and Projections Revised Business Assumptions P1. Inc. but also business assumptions. A Re-planning process exists in multi-levels of the Supply Chain between business enterprises.1 P1.1 None Identified Business to business internet capability to share common data. Business Plan Strategic Plan © Copyright 2003 Supply-Chain Council. given the inputs from the strategic and business plans. 54 April 2003 . Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified Total Supply Chain Cost None Identified Best Practices Features Strategic Sales and Operations Planning process in place and managed at the executive level. This includes revision of not only aggregate forecast and projections related to supply chain.

55 April 2003 .SOURCE © Copyright 2003 Supply-Chain Council. Inc.

ES. M2. M3.4) • © Copyright 2003 Supply-Chain Council. M3.1) • Loaded Cart (D4.1.4) Sourcing Plans (ES. M2.4) Product Inventory Location • (EM) WIP Inventory Location • (ED) Finished Goods Inventory Location • Receipt Verification (ES.2) Verify Product • Receipt Verification (ES. M3.3. D4.9) • Scheduled Receipts (M1.2) • Daily Replenishment Requirements (D4.2.4) MRO Products S1. ES.5 S1.9) Payment Terms S1.4) Return Inventory Transfer Data • (Supplier) Sourced Products • (DR2.2.S1: Source Stocked Product • • • • • (P2.6 ES.1.1. D1.4.2) • (ES.2) Production Schedule (M1.1. D4.1. M2. Inc.2.6) Logistics Selection (M1.2 S1.2) Source Execution Data (ES.3 Receive Product Schedule Product Deliveries • Procurement Signal (Supplier) • Sourced Product on Order (P2.4 Authorize Supplier Payment Transfer Product • Inventory Availability (P2.1. M1. D1. ES.2). M2. (ES.8.2. 56 April 2003 .3) Replenishment Signals • (DR2.2. D1. M3.3.2.8. ES.1 S1.2.8) • (M) (D) Product Pull Signals • (ES.

Delivery.Process Category: Source Stocked Product Process Category Definition Process Number: S1 The procurement. Inc. receipt and transfer of raw material items. product and or services. Product Acquisition Costs Inventory DOS Best Practices Features Joint Service Agreements Alliance and Leverage agreements None Identified © Copyright 2003 Supply-Chain Council. Receiving and Transfer. subassemblies. 57 April 2003 . Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Orders/lines processed complete Total Source Cycle Time to Completion Time and Cost related to Expediting the Sourcing Processes of Procurement. delivery.

Performance Attributes Metric Reliability Assets % Schedules Generated within Supplier’s Lead Time % Schedules Changed within Supplier’s Lead Time Average Release Cycle of Changes Average Days per Schedule Change Average Days per Engineering Change Product Management and Planning Costs as a % of Product Acquisitions Costs None Identified Best Practices Features Utilize EDI transactions to reduce cycle time and costs VMI agreements allow suppliers to manage (replenish) inventory Mechanical (Kanban) pull signals are used to notify suppliers of the need to deliver product Consignment agreements are used to reduce assets and cycle time while increasing the availability of critical items Advanced ship notices allow for tight synchronization between SOURCE and MAKE processes EDI interface for 830.1.3 Return Inventory Transfer Data DR2.2 D1. 856 & 862 transactions Inputs Plan Sourcing Plans Source Execution Data Logistics Selection Production Schedule P2.4 Outputs Plan Source Procurement Signal (Supplier) Sourced Product on Order Scheduled Receipts P2.2 M1.Process Element: Schedule Product Deliveries Process Element Definition Process Element Number: S1.2 ES.2. 850.6 M1. M3. M2. The requirements for product releases are determined based on the detailed sourcing plan or other types of product pull signals.1.2 ES.9 © Copyright 2003 Supply-Chain Council.1.1 Scheduling and managing the execution of the individual deliveries of product against an existing contract or purchase order.3 Replenishment Signals D1. M2.1. M3.8. Inc.2 April 2003 Return .4 Responsiveness Flexibility Cost Supplier managed inventories with scheduling interfaces to external supplier systems Electronic Kanban support Consignment inventory management Blanket order support with scheduling interfaces to external supplier systems Source Make Deliver ES. M2.2. M3. D4. Return 58 Make Deliver M1.

4 Plan Receipt Verification © Copyright 2003 Supply-Chain Council. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Orders/ lines received damage free % Orders/ lines received complete % Orders/ lines received on-time to demand requirement % Orders/ lines received with correct shipping documents Receiving Cycle Time % Receipts Received without Item and Quantity Verification Receiving costs as a % of Product Acquisition Costs None Identified Best Practices Features Supplier certification programs are used to reduce (skip lot) or eliminate receiving inspection Bar coding is used to minimize handling time and maximize data accuracy Deliveries are balanced throughout each working day and throughout the week Supplier delivers directly to point of use – (dock to line or end destination) Skip lot / sampling inspection logic Inputs Plan Bar code interface for data collection devices Generate bar coded receiving documents None Identified Electronic Tag tracking to Point of Use (POU) destination Source Make Deliver (Supplier) Sourced Products MRO Products Outputs DR2.2. ES.2 The process and associated activities of receiving product to contract requirements. ES.Process Element: Receive Product Process Element Definition Process Element Number: S1.8 59 April 2003 Return . Return Source Make Deliver ES. Inc.6. ES.1.

1.2 60 April 2003 .Process Element: Verify Product Process Element Definition Process Element Number: S1. ES. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Orders / line received defect free Verification Cycle Time % Receipts Received Without Quality Verification Verification costs as a % of Product Acquisition Costs None Identified Best Practices Features Supplier certification programs are used to reduce (skip lot) or eliminate receiving inspection Bar coding is used to minimize handling time and maximize data accuracy Deliveries are balanced throughout each working day and throughout the week Supplier delivers directly to point of use Supplier replaces defective material at customer’s facility with good product as required. Inc. ES.3 The process and actions required determining product conformance to requirements and criteria. Skip lot/sampling inspection logic Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return Bar code interface for data collection devices Generate bar coded receiving documents None Identified Electronic Tag tracking to Point of Use (POU) destination Electronic Tag tracking to Point of Use (POU) destination Receipt Verification © Copyright 2003 Supply-Chain Council.

8.2. Inc. transferring and stocking product. D4. This includes all of the activities associated with repackaging. M3.4 61 April 2003 .4 M1. D4.4 The transfer of accepted product to the appropriate stocking location within the supply chain.4 EM ED Outputs Plan Source Make Deliver Inventory Availability P2.3 D1. Performance Attributes Metric Reliability Assets % 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.2. For service this is the transfer or application of service to the final customer or end user.Process Element: Transfer Product Process Element Definition Process Element Number: S1.2 ES. Transfer & Product storage costs as a % of Product Acquisition Costs Inventory DOS Best Practices Features Drive deliveries directly to stock or point-of-use in manufacturing to reduce costs and cycle time Capability Transfer to Organization Pay on receipt Specify delivery location and time (to the minute) Specify delivery sequence None Identified Inputs Plan Responsiveness Flexibility Cost Product Pull Signals Product Inventory Location WIP Inventory Location Finished Goods Inventory Location Source Make Deliver M D ES.1 D4. M2.2 Daily Replenishment Requirements Loaded Cart © Copyright 2003 Supply-Chain Council. staging.

None Identified Best Practices Features Pay on Receipt Electronic Invoice Processing Inputs Plan Payment Terms Outputs © Copyright 2003 Supply-Chain Council. Source Make Deliver Return Make Deliver Return ES.5 The process of authorizing payments and paying suppliers for product or services.9 Plan 62 Source April 2003 . Cost per invoice. This process includes invoice collection. Inc. % Invoice Receipts and Payments Generated via EDI. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Invoices processed without issues and/or errors Payment Cycle Time. invoice matching and the issuance of checks.Process Element: Authorize Supplier Payment Process Element Definition Process Element Number: S1.

Inc. ES.1 Schedule Product Deliveries • Procurement Signal (Supplier) • Sourced Product on Order (P2. ES. D2.2. ES. ES.9) Payment Terms S1.1. M3. M3.1. M3.3.4) MRO Products S2.4 • Receipt Verification (ES.4) Return Inventory Transfer Data • (Supplier) Product • (DR2.4. (M2.2. M2.3.2.2. ES.2) • Product on Order (D) • Receipt Verification (ES.2).1.2) • (ES.3) Replenishment Signals • (M1.1.2) Source Execution Data (ES.3 Receive Product Verify Product S2.S2: Source Make-to-Order Product • • • • (P1. D2. M2.6) Logistics Selection (M1. M2.9) • Scheduled Receipts (M1.4.8) © Copyright 2003 Supply-Chain Council. M1.1.8) • (M) (D) Product Pull Signals • (ES.2.2.6.4) Sourcing Plans (ES.5 Transfer Product Authorize Supplier Payment • Inventory Availability (P2. ES.2 S2. P2.2.2) Production Schedule • (DR2.1. M3. M2.4) Product Inventory Location • (M) WIP Inventory Location • (D) Finished Goods Inventory Location S2. 63 April 2003 .

64 April 2003 . Delivery. Best Practices Features Joint Service Agreements Automated Statistical Process Control (SPC) None Identified None Identified © Copyright 2003 Supply-Chain Council.Process Category: Source Make-to-Order Product Process Category Definition Process Number: S2 The procurement and delivery of product that is built to a specific design or configured based on the requirements of a particular customer order. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Orders/lines processed complete Total Source Cycle Time to Completion Time and Cost related to Expediting the Sourcing Processes of Procurement. Receiving and Transfer. Inc. Product Acquisition Costs Inventory DOS.

3 Return Inventory Transfer Data DR2. 850. M2.4 Outputs Plan Source Procurement Signal (Supplier) Sourced Product on Order Scheduled Receipts P2.2 M2. Performance Attributes Metric Reliability % Schedules generated within Supplier’s Lead Time % Schedules changed within Supplier’s Lead Time Average Release Cycle of Changes Responsiveness Flexibility Assets Average days per Schedule Change Average days per Engineering Change Product Management and Planning Costs as a % of Product Acquisition Costs None Identified Best Practices Features Utilize EDI transactions to reduce cycle time and costs VMI agreements allow suppliers to manage (replenish) inventory Mechanical (Kanban) pull signals are used to notify suppliers of the need to deliver product Consignment agreements are used to reduce assets and cycle time while increasing the availability of critical items Advanced ship notices allow for tight synchronization between SOURCE and MAKE processes EDI interface for 830. qualifications or service deployment.2 ES.2 Product on Order © Copyright 2003 Supply-Chain Council.1 Scheduling and managing the execution of the individual deliveries of product against the contract.1. M2.6 M1.2. Inc. P2. M2.Process Element: Schedule Product Deliveries Process Element Definition Process Element Number: S2.1. This includes all aspects of managing the contract schedule including prototypes.9 Make Deliver M1.2 Production Schedule Deliver D2.3 M1. The requirements for product deliveries are determined based on the detailed sourcing plan.4.1. Return D 65 April 2003 Return . M3.4 Cost Supplier managed inventories with scheduling interfaces to external supplier systems Electronic Kanban support Consignment inventory management Blanket order support with scheduling interfaces to external supplier systems Source Make ES.2. 856 & 862 transactions Inputs Plan Sourcing Plans Source Execution Data Logistics Selection Replenishment Signals P1. M3. M3.1.2 ES.

% Receipts Received without Item and Quantity Verification Receiving costs as a % of Product Acquisition Costs None Identified Best Practices Features Supplier certification programs are used to reduce (skip lot) or eliminate receiving inspection Bar coding is used to minimize handling time and maximize data accuracy Deliveries are balanced throughout each working day and throughout the week Supplier delivers directly to point of use – (dock to line or end destination) Skip lot / sampling inspection logic Inputs Plan Bar code interface for data collection devices Generate bar coded receiving documents None Identified Electronic Tag tracking to Point of Use (POU) destination Source Make Deliver (Supplier) Product MRO Products Outputs DR2.2.6.1. ES. ES. Return Source Make Deliver ES. ES.2 The process and associated activities of receiving product to contract requirements.Process Element: Receive Product Process Element Definition Process Element Number: S2. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Orders/ lines received damage free % Orders/ lines received complete % Orders/ lines received on-time to demand requirement % Orders/ lines received with correct shipping documents Receiving Cycle Time. Inc.8 66 April 2003 Return .4 Plan Receipt Verification © Copyright 2003 Supply-Chain Council.

ES.1. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Orders / lines received defect free Verification Cycle Time % Receipts Received Without Quality Verification Verification costs as a % of Product Acquisition Costs None Identified Best Practices Features Supplier certification programs are used to reduce (skip lot) or eliminate receiving inspection Bar coding is used to minimize handling time and maximize data accuracy Deliveries are balanced throughout each working day and throughout the week Supplier delivers directly to point of use Supplier replaces defective material at customer’s facility with good product as required.Process Element: Verify Product Process Element Definition Process Element Number: S2. Inc. ES.2 67 April 2003 . Skip lot/sampling inspection logic Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Bar code interface for data collection devices Generate bar coded receiving documents None Identified Electronic Tag tracking to Point of Use (POU) destination Electronic Tag tracking to Point of Use (POU) destination Receipt Verification © Copyright 2003 Supply-Chain Council.3 The process and actions required determining product conformance to requirements and criteria.

Inc. staging.2. ES.2. Transfer & Product storage costs as a % of Product Acquisition Costs Inventory DOS Best Practices Features Drive deliveries directly to stock or point-of-use in manufacturing to reduce costs and cycle time Capability transfer to customer Pay on receipt Specify delivery location and time (to the minute) Specify delivery sequence Inputs Plan Responsiveness Flexibility Cost Product Pull Signals Product Inventory Location WIP Inventory Location Finished Goods Inventory Location Source Make Deliver M D ES. Performance Attributes Metric Reliability Assets % Product transferred damage free % Product transferred complete % Product transferred on-time to demand requirement % Product transferred without transaction errors Transfer Cycle Time Time and/or Cost Reduction related to Expediting the Transfer Process.Process Element: Transfer Product Process Element Definition Process Element Number: S2. and stocking product and or application of service. transferring.2.4 The transfer of accepted product to the appropriate stocking location within the supply chain. 68 April 2003 .8 © Copyright 2003 Supply-Chain Council.3 D2.4 M1.4 M D Outputs Plan Source Make Deliver Inventory Availability P2. This includes all of the activities associated with repackaging. M3. M2.

% Invoice Receipts and Payments Generated via EDI. None Identified Best Practices Features Pay on Receipt Electronic Invoice Processing Inputs Plan Payment Terms Outputs © Copyright 2003 Supply-Chain Council. invoice matching and the issuance of checks. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Invoices processed without issues and/or errors Payment Cycle Time.5 The process of authorizing payments and paying suppliers for product or services. This process includes invoice collection. Cost per invoice.Process Element: Authorize Supplier Payment Process Element Definition Process Element Number: S2. Inc.9 Plan 69 Source April 2003 . Source Make Deliver Make Deliver ES.

3).7) © Copyright 2003 Supply-Chain Council. D3.2) (M) (D) Product Pull Signals (ES.3) Replenishment Signals • (ES.9) • Scheduled Receipts (M1.4) Product Inventory Location (EM) WIP Inventory Location (ED) Finished Goods Inventory Location • Receipt Verification (ES.7 Verify Product Transfer Product Authorize Supplier Payment • Receipt Verification (ES. 70 April 2003 .4 Identify Sources of Supply Select Final Supplier (s) and Negotiate Schedule Product Deliveries Receive Product • ETO Request for Proposal (Supplier) • Procurement Signal (Supplier) • Supplier Agreement (ES.2.7) Sourcing Review • (Supplier) ETO Proposal • (Supplier) Sourced Product S3.1. M3.2) Production Schedule • (M1.1.8) • (ES.2.1. ES.1.1.2.9) • • • • • Procurement Signal (Supplier) • Product on Order (P2. (ES. M3.1.1. ES. Inc.2) • Existing Inventory Data (ES.3).2.6) Logistics Selection • (DR2. M2.5 S3.2 S3.1.4) Sourcing Plans • (M1.9) Payment Terms S3.4) Sourcing Plans • (D10) ETO Spec or Design • (ES. ES. M3. ES.2.2.3.6. M2. ES.7) Source Criteria • (P2.4) Return Inventory Transfer Data • (ES. ES.3.3 S3.2) Source Execution Data • (ES.S3: Source Engineer-to-Order Product • (P2. M1. M3. M2. ES.6 S3. (ES. D3. M2.4) • Inventory Availability (P2.2.1 S3.

Receiving and Transfer. Delivery. procurement and delivery of engineer-to-order assemblies or specialized product or services that are designed and built based on the requirements or specifications of a particular customer order or contract. 71 April 2003 . Performance Attributes Metric Reliability Responsiveness Flexibility % Orders/lines processed complete Total Source Cycle Time to Completion Time and Cost related to Expediting the Sourcing Processes of Procurement. Inc. Product Acquisition Costs Inventory DOS Value of assets provided by service provider(cost avoidance) Cost Assets Best Practices Features Joint Service Agreements None Identified © Copyright 2003 Supply-Chain Council.Process Category: Source Engineer-to-Order Product Process Category Definition Process Number: S3 The negotiation.

ES.3. ES.4 Outputs Plan Responsiveness Flexibility Cost None Identified None Identified None Identified Source Make D10 ES. Inc.7 Source Make ETO Request for Proposal (Supplier) © Copyright 2003 Supply-Chain Council.Process Element: Identify Sources of Supply Process Element Definition Process Element Number: S3.1 The identification and qualification of potential suppliers capable of designing and delivering product that will meet all of the required product specifications. Deliver 72 April 2003 Deliver . In sourcing) Supplier development programs are used to get local suppliers to invest in developing new technologies None Identified Inputs Plan Sourcing Plans ETO Spec or Design Source Criteria P2.1. Performance Attributes Metric Reliability Assets % Potential suppliers selected which become qualified % Qualified suppliers which meet defined requirements Source Identification Cycle Time Source Qualification Cycle Time Time and/or Cost reduction related to Source Identification Product Process Engineering as a % of Product Acquisition Costs Value of assets provided by service provider (cost avoidance) Best Practices Features Product Data Management & Electronic Document Management are used to manage technical documents and requirements for engineer to order product None Identified Electronic data interchange is used to send technical information to and from potential suppliers On line RFQ processes linked into the document management process reduces cycle time and product management costs Concurrent engineering is used to tightly link sourcing into the product development process Make/Buy Decision Process (Outsourcing vs.

supplier qualifications and the generation of a contract defining the costs and terms and conditions of product availability. ES. Source ES. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Supplier contracts negotiated meeting target terms and conditions for quality.2 The identification of the final supplier(s) based on the evaluation of RFQs.7 (Supplier) ETO Proposal Outputs Plan Procurement Signal (Supplier) Supplier Agreement © Copyright 2003 Supply-Chain Council.Process Element: Select Final Supplier(s) and Negotiate Process Element Definition Process Element Number: S3. flexibility and cost Source Selection Cycle Time % Single and/or Sole Source Selections Sourcing Costs as a % of Product Acquisitions Costs None Identified Best Practices Features Electronic data interchange is used to send RFQs and technical information to and from potential suppliers On line RFQ processes linked into the document management process reduces cycle time and product management costs Supplier certification programs can reduce the cycle time for certifying existing suppliers to provide new technologies Utilize concurrent engineering with suppliers to allow them to provide engineering and product performance test data On line document management and automated supplier approval processes can reduce the cycle time and costs associated with managing supplier evaluations On-line availability to supplier financials None Identified Inputs Plan None Identified None Identified None Identified None Identified Sourcing Review Source Make Deliver Make Deliver ES.9 73 April 2003 . delivery.3. Inc.1. ES.

M2.Process Element: Schedule Product Deliveries Process Element Definition Process Element Number: S3.2 ES.1. 856 & 862 transactions Inputs Plan Sourcing Plans Production Schedule P2. This includes all aspects of managing the contract schedule including prototypes and qualifications.3 ES.6 DR2. M3.4 Outputs Plan Source Procurement Signal (Supplier) Product on Order Scheduled Receipts P2. Make Make Deliver M1.1.1. Inc.2 ES.3 Scheduling and managing the execution of the individual deliveries of product against the contract.9 © Copyright 2003 Supply-Chain Council. M3. The requirements for product deliveries are determined based on the detailed sourcing plan.3 Replenishment Signals Source Execution Data Logistics Selection Return Inventory Transfer Data Deliver Return D3. Performance Attributes Metric Reliability Assets % Schedules generated within Supplier’s Lead time % Schedules changed within Supplier’s Lead time Average Release Cycle of Changes Average days per Schedule Change Average days per Engineering Change Product Management and Planning Costs as a % of Product Acquisition Costs None Identified Best Practices Features Utilize EDI transactions to reduce cycle time and costs VMI agreements allow suppliers to manage (replenish) inventory Mechanical (Kanban) pull signals are used to notify suppliers of the need to deliver product Consignment agreements are used to reduce assets and cycle time while increasing the availability of critical items Advanced ship notices allow for tight synchronization between SOURCE and MAKE processes EDI interface for 830.2 M1. M2. 850. M3.2. M2.1.2 74 April 2003 Return .4 Responsiveness Flexibility Cost Supplier managed inventories with scheduling interfaces to external supplier systems Electronic Kanban support Consignment inventory management Blanket order support with scheduling interfaces to external supplier systems Source M1.2.

ES. ES.1. Receiving costs as a % of Product Acquisition Costs None Identified Best Practices Features Supplier certification programs are used to reduce (skip lot) or eliminate receiving inspection Bar coding is used to minimize handling time and maximize data accuracy Deliveries are balanced throughout each working day and throughout the week Supplier delivers directly to point of use – (dock to line or end destination) Skip lot / sampling inspection logic Inputs Plan Source Make Deliver Plan Source Make Deliver Bar code interface for data collection devices Generate bar coded receiving documents None Identified Electronic Tag tracking to Point of Use (POU) destination (Supplier) Sourced Product Outputs Receipt Verification © Copyright 2003 Supply-Chain Council.Process Element: Receive Product Process Element Definition Process Element Number: S3.8 75 April 2003 .6. ES. ES. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Orders/ lines received damage free % Orders/ lines received complete % Orders/ lines received on-time to demand requirement % Orders/ lines received with correct shipping documents Receiving Cycle Time % Receipts Received without Item and Quantity Verification.4 The process and associated activities of receiving product to contract requirements. Inc.2.

Skip lot/sampling inspection logic Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Bar code interface for data collection devices Generate bar coded receiving documents None Identified Electronic Tag tracking to Point of Use (POU) destination Electronic Tag tracking to Point of Use (POU) destination Receipt Verification © Copyright 2003 Supply-Chain Council. % Receipts Received Without Quality Verification Verification costs as a % of Product Acquisition Costs None Identified Best Practices Features Supplier certification programs are used to reduce (skip lot) or eliminate receiving inspection Bar coding is used to minimize handling time and maximize data accuracy Deliveries are balanced throughout each working day and throughout the week Supplier delivers directly to point of use Supplier replaces defective material at customer’s facility with good product as required. ES.2 76 April 2003 .5 The process and actions required determining product conformance to requirements and criteria.Process Element: Verify Product Process Element Definition Process Element Number: S3. ES. Inc.1. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Orders / lines received defect free Verification Cycle Time.

Inc. Transfer & Product storage costs as a % of Product Acquisition Costs Inventory DOS Best Practices Features Drive deliveries directly to stock or point-of-use in manufacturing to reduce costs and cycle time Capability Transfer to organization Pay on receipt Specify delivery location and time (to the minute) Specify delivery sequence None Identified Inputs Plan Responsiveness Flexibility Cost Product Pull Signals Product Inventory Location WIP Inventory Location Finished Goods Inventory Location Make Deliver M D ES.2.4 EM ED Outputs Plan Existing Inventory Data Inventory Availability P2.2. staging.6 The transfer of accepted product to the appropriate stocking location within the supply chain. Performance Attributes Metric Reliability Assets % Product transferred damage free % Product transferred complete % Product transferred on-time to demand requirement % Product transferred without transaction errors Transfer Cycle Time. Time and/or Cost Reduction related to Expediting the Transfer Process. This includes all of the activities associated with repackaging. Source Source Make Deliver M1. M2.7 ES. M3.4 77 April 2003 .Process Element: Transfer Product Process Element Definition Process Element Number: S3.2 © Copyright 2003 Supply-Chain Council.3 D3. and stocking product. transferring.

7 The process of authorizing payments and paying suppliers for product or services. Source Make Deliver Make Deliver ES. % Invoice Receipts and Payments Generated via EDI. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Invoices Processed without Issues and/or Errors Payment Cycle Time. Inc. invoice matching and the issuance of checks. None Identified Best Practices Features Pay on Receipt Electronic Invoice Processing Inputs Plan Payment Terms Outputs © Copyright 2003 Supply-Chain Council. Cost per invoice.9 Plan 78 Source April 2003 . This process includes invoice collection.Process Element: Authorize Supplier Payment Process Element Definition Process Element Number: S3.

4.1. S2. S3.7) Manage Supplier Network • (S1. S3.1.2).2) Return Product Location • (ES.1. S2. 79 ES.2 Manage Sourcing Business Rules Assess Supplier Performance • Manage Supplier Network (ES. SR2. S3.3.3 Maintain Source Data • Manage Supplier Network (ES.7) Manage Supplier Network ES.5) Receipt Verification • (ES. S3.3. S3.3) April 2003 . Inc.3. (S2.3.1 ES.1.8) Import/Export Requirements • (ES.4.4.4. S1.2.2. SR2.7) • Identify Source of Supply (S3. S2.7) • Establish Source Plan (S1.6) • MRO Parts Availability • Inventory Target Levels • Supply Chain Performance • Inventory Availability (SR2. S3.8) © Copyright 2003 Supply-Chain Council. S2.7) • Identify Source of Supply (S3.4.ES: Enable Source • (S1.4. S3.) • • • • • Product Mix and Plans Supply Chain Plan Inventory and Order Rules Parts and Services Consumed (S1. (S2.3) • Manage Supplier Network (ES.6 Manage Incoming Product • Logistics Selection (S1.1.3. S3. S3. S3.2) Inventory Availability • (SR2.2) Quality & Delivery Performance • (ES.2. S2.2) • Maintain Source Data (ES. S2. S1.9) Supplier Agreement • Parts and Services Consumed • Deliver Capital Assets • Plan Source • Manage Supply Chain Inventory • (ES.6) Existing Inventory Data • (SR2.5 Manage Capital Assets • Import/Export Requirements (ES.2). S3.3.2) • Current Inventory Source Data • (ES. S2.5) ES.8) Contract Carrier Rates • (S1.4 Manage Product Inventory • Product Inventory Location (S1.5) Receipt Verification • (ES.4.7) Manage Supplier Network ES.4) Receipt Verification ES.2.1.

7 Manage Supplier Network • • • • • Business Rules (ES. S2.2).8) Import/Export Requirements 80 • Manage Capital Assets (ES.6) • Supplier Agreement (ES.7) • Authorize Supplier Payment (S1.2) Supplier Performance • (ES. S3.9 Manage Import/Export Requirements Manage Supplier Agreements • Manage Capital Assets (ES. S2.1) Business Rules • (ES.2.5) • Manage Supplier Network (ES.2) ES.5) • Manage Incoming Product (ES.9) Identify Sources (S3.2) Select Final Supplier & Negotiate • (ES.9) © Copyright 2003 Supply-Chain Council.5) Manage Capital Assets • Parts and Services Consumed ES.3) Schedule Product Deliveries • (ES. S3.1) Supplier Performance (ES. S3. S2.1.7) April 2003 . Inc. • (S3.1.3) Incoming Product • (ES.3) Supplier Agreement (ES.7) Manage Supplier Network • (S1.4) Receipt History • (ES.8 ES.ES: Enable Source • (ES.2) Incoming Product (ES.9) Supplier Agreement • (S1. S3.5.1.5.

maintaining and enforcing decision support criteria. S3. part type. S1. fulfillment and delivery performance and relationship definition for specific levels of collaboration and partnership.Enable Process: Manage Sourcing Business Rules Enable Process Definition Process Number: ES. Performance Attributes Metric Reliability Assets % Agreements Negotiated without error/change requirement % Orders placed without error The Degree & Frequency of Conformance to Business Rules that is achieved None Identified End to End Cycle Time for Business Processes RP-PO Cycle Time Approval Cycle Time Policy Documentation & Approval Cycle Time Cost of Process Documentation. S2. S3. goals and objectives.3. supplier performance data & spend data stratified by commodity. Make Deliver Make Deliver S1.7 S3. Inc. Monitoring and Auditing Business Rules Cost of non-compliance to Business Rules Assets as a % of cost to administer business rules Best Practice Features Enterprise level policies/rules with local execution Long term supplier agreements/partnerships Optimized Supply Chain Processes Optimized Supplier Count Supplier and Part Rationalization Enterprise level spend analysis Web based access to enterprise level business rules Responsiveness Flexibility Cost Collaborative review and agreement of business rules prior to contract execution Electronic Sourcing and Negotiation Electronic rules for business relationships and transactions Web based access to preferred and recommended suppliers. S3.7 Manage Supplier Network Outputs Source Source ES.3.2. Sourcing business rules include: supplier selection and negotiation processes.4.1 The process of defining requirements and establishing. The business strategy defines the criteria for sourcing business rules that are translated into guidelines and policies for conducting business within the enterprise and other legal entities.2 81 April 2003 . business unit/site.2. supplier. S2. process type Web based access to current spend data available from enterprise to part level Use of WEB enabled conferencing or meeting software for review Business Rules for electronic sourcing process and hierarchy Inputs Plan Receipt Verification Plan Manage Supplier Network Identify Source of Supply © Copyright 2003 Supply-Chain Council.5 ES. in alignment with business strategy.1.

82 April 2003 .2 The process of measuring actual supplier performance against internal and/or external standards. to dates required) Defective product (expressed as % or defective parts per million) Performance to requirements stated in contracts or service agreements Continuous improvement trends or patterns Business performance trends or patterns Frequency of personnel changes and related impacts Supplier Performance Rating Quality Improvement Productivity Improvement None Identified The degree and frequency of demonstrated flexibility or responsiveness measured against defined criteria Total cost to measure supply base performance as a % of revenue Total cost of nonconformance as a % of revenue Costs related to specific types of non-conformance Assets as a % of Non-conformance Costs Best Practice Features Performance expectations and business rules are clearly communicated prior to the initiation of business with the supplier Supplier performance data is collected. providing feedback to achieve and maintain the performance required to meet the customers’ business and/or competitive needs. analyzed and used in performance reporting Comparative analysis of supplier performance is used in sourcing decisions Suppliers are evaluated. implemented and measured on a periodic basis Web based access / availability to business rules and performance criteria Responsiveness Flexibility Cost Web based relational database / management application Software application to automate data collection and reporting Software application with data analysis capability None identified Continuous Improvement and development is driven and measured through the performance review process © Copyright 2003 Supply-Chain Council. Performance Attributes Metric Reliability Assets On-time delivery performance (required quantities. selected and qualified with criteria matched to business requirements and competitive needs Cost reduction and or cost avoidance are opportunities are identified. Inc.Enable Process: Assess Supplier Performance Enable Process Definition Process Number: ES. analyzed and reported to suppliers online and real-time through extranet applications Supplier “cost of nonconformance” data is collected.

Inputs

Plan

Receipt Verification

Plan

Maintain Source Data
Manage Supplier Network
Establish Source Plan

© Copyright 2003 Supply-Chain Council, Inc.

Make

Deliver

Make

Deliver

S1.2, S1.3,
S2.2, S2.3,
S3.4, S3.5
ES.7

Manage Supplier Network

Outputs

Source

Source
ES.3
ES.7
S1.1, S2.1,
S3.3

83

April 2003

Enable Process: Maintain Source Data

Process Number: ES.3

Enable Process Definition
The process of collecting, sorting, defining hierarchy and managing configuration control of supplier information
and source data that are required to make sourcing and related planning and manufacturing decisions. Source
data to be maintained includes supplier profile data, financials, quality and delivery performance, spend analysis
at various levels of the enterprise, from major business units to material part number

Performance Attributes

Metric

Reliability

Cost
Assets

Availability &Accuracy of supplier/source data
Frequency of supplier/source data update feeds
None Identified
Time to access supplier/source data as required to respond to
need
The degree of flexibility to access, collect, sort, update and
analyze source data to enable rapid business decisions
Cost of maintaining data as a % of spend, % revenue
Assets as a % of cost to maintain data repository

Best Practice

Features

Data accessibility across the enterprise for
visibility by discrete business units
On demand access of supplier/source data
Automated update of supplier performance
information
Supplier and material rationalization

Web based access to various levels of enterprise data

Inputs

Plan

Responsiveness
Flexibility

Web based access to current supplier/source data
None Identified
Web based access to supplier/source data

Plan Source, Manage Supply Chain Inventory
Quality & Delivery Performance
Manage Supplier Network

Outputs

Make

Deliver

Make

Deliver

ES.2
ES.7

Plan

Current Inventory Source Data
Manage Supplier Network
Identify Source of Supply

© Copyright 2003 Supply-Chain Council, Inc.

Source

Source
ES.7
S3.1, S3.2

84

April 2003

Enable Process: Manage Product Inventory
Enable Process Definition

Process Number: ES.4

The process of establishing and maintaining physical inventories and inventory information. This includes
warehouse management, cycle counting, physical inventories and inventory reconciliation. For Services, this may
include tracking the number of service providers and the financial resources committed at any given point in time.

Performance Attributes

Metric

Reliability
Responsiveness
Flexibility
Cost
Assets

Fill Rate (% filled of an order)
None Identified
Cycle Time required to move product to point of use
Inventory carrying cost
Days of Supply (DOS) Inventory Value (measured in dollars)
Inventory Days of Supply

Best Practice

Features

Periodic review of metrics and strategy with
comparisons to industry benchmarks
Real time data on current status.
Cycle Counting
Supplier Managed Inventory

Real time view of data.

Inputs

Plan

Dynamic calculation of safety stock based on actual sales
None Identified
The supplier is responsible for maintaining inventory levels at
the point of use. The software system verifies usage, receiving
and payment functions.

Product Mix and Plans, Supply Chain Plan,
Inventory and Order Rules
Existing Inventory Data

Source

Make

Deliver

Return

Make

Deliver

Return

S1.4,
S2.4, S3.6

Parts and Services Consumed

Outputs

Plan

Product Inventory Location

Source
S1.4,
S2.4, S3.6

MRO Parts Availability
Inventory Target Levels, Supply Chain
Performance
Inventory Availability

© Copyright 2003 Supply-Chain Council, Inc.

SR2.3,
SR2.4,
SR2.5

85

April 2003

Enable Process: Manage Capital Assets
Enable Process Definition

Process Number: ES.5

The process of acquiring, maintaining and dispositioning an organization’s <capital assets> located at a supplier’s
facility and/or outside source, which are used to operate the supply chain.

Performance Attributes

Metric

Reliability

Unplanned Maintenance Downtime % of Total Production
Time
% Obsolete or Inactive Capital Assets
None Identified
Mean Time to Repair Asset (Tooling & Equipment)
Cost of Damaged Capital Asset
Cost of Obsolete Capital Asset
Capital Asset Carrying Cost
Actual Asset Life Maintenance Cost as % of Replacement
Value

Responsiveness
Flexibility
Cost

Assets

Best Practice

Features

Removal of Obsolete Capital Assets
Total Preventative Maintenance Program

Facility & Equipment Environmental / Safety
Audit System

Automated Calculation of ABC Velocity Movement
Automatically generated TPM repair schedules integrated
with MRP systems, electronic equipment repair history, parts
listings, part stores inventory & reorder points, automatic
store room parts purchases, Shop floor access to electronic
data base of equipment line drawings, electrical wiring
diagrams, parts listing reference guide and part cost lists.
Changeover process flow element identification, instructional
directions to conduct changeover, and measurement tool
which can be used to prioritize and track results of
improvement efforts. Software to identify operational
constraints to the MAKE processes of the Supplier to assist in
directing resources toward bottleneck functional areas.
System software to list checklist items, report results of audit
& forward actions to be taken

Inputs

Plan

Changeover Reduction / Continuous
Improvement Program

Import/Export Requirements
Supplier Agreement
Parts and Services Consumed
Deliver Capital Assets

Outputs

Make

Deliver

Make

Deliver

ES.8
ES.9

Plan

Import/Export Requirements

© Copyright 2003 Supply-Chain Council, Inc.

Source

Source
ES.8

86

April 2003

Enable Process: Manage Incoming Product
Enable Process Definition

Process Number: ES.6

The process of defining and maintaining the information that characterizes inbound logistics management of all
supplier deliveries, including both physical and electronic goods and services. This includes carrier selection and
management, tracking deliveries and import.

Performance Attributes

Metric

Reliability

Frequency of parameter updates
Number of data sources for data collection
None Identified
Speed at which parameters (eg, rates) are updated.
Dock-to-Dock times (lane specific)
Data maintenance costs
Empty-to-loaded back-haul mile index
Equipment utilization rates (hours)
Equipment utilization rates (product contribution margin)
Vehicle maintenance costs

Responsiveness
Flexibility
Cost
Assets

Best Practice

Features

Integrated Order Management, Warehouse
Management and Transportation Management
Systems
View for analysis for all orders and shipments
the following data: Logistics, Product, Cost, GL
Charging
Appointment Scheduling for Pickup and Delivery
of Customer Shipments
Measurement of Carrier Performance for Ontime Delivery and Completeness
Real-time Optimized Shipment Method Selection
(Air Parcel, Ground Parcel, LTL, etc.) Based on
Customer Service Requirements
Real-time Shipment Tracking, (via Internet)
Electronic Manifest and Electronic Billing
Automated Documentation for International
Shipments
Manage Information across 100% of shipments
Capture and maintain mode specific data
Internet Pooling (Electronic brokerage of
shipments
Back-haul trading exchange

Transportation Management System (TMS)
Maintenance Management

Inputs

Plan

Rating & Routing
Pooling

Contract Carrier Rates
Receipt Verification

Outputs

Make

Deliver

Make

Deliver

ES.8
S1.2, S2.2,
S3.4

Plan

Logistics Selection

© Copyright 2003 Supply-Chain Council, Inc.

Source

Source
S1.1, S2.1,
S3.3

87

April 2003

Exchanges are an open procurement network. Also. accessible to any buyer and focused on new Internet-enabled purchasing models like spot buys or reverse.Enable Process: Manage Supplier Network Enable Process Definition Process Number: ES. In this way. Spot Purchasing allows buyers to search the Exchange hosted catalog and compare the goods and services offered by multiple suppliers. Inc. Exchanges also offers value add services that help suppliers differentiate their content. Buyer Auctions allow buyers to create and publish an auction for goods and services that they intend to purchase. Suppliers are automatically notified of the purchases when the buyer 'checks-out' with the shopping cart. business-to-business trading network. Transaction Delivery services allow buyers and suppliers to connect seamlessly to Exchanges to send and receive purchasing transactions securely over the Internet. which includes certifying new suppliers and maintaining the current status of existing suppliers. review and publish their catalog content to the Exchange hosted catalog. the management of a supplier certification process. Buyers can add items selected for purchase to their shopping cart. The seller can review and compare bids from multiple buyers to make an award decision. buyer-driven auctions. Suppliers can easily manage excess capacity as well as maximize the value of obsolete or scrap materials. Internet Exchanges are a hosted. Performance Attributes Metric Reliability Supplier Delivery Performance Percent Supplier Quality Performance Percent Supplier Price Performance Percent None Identified Create and maintain multiple suppliers and multiple supplier sites to record information about individuals and companies from whom you want to purchase catalogue goods and services. buyers can quickly identify new sources of supply and manage unexpected changes in demand. This includes establishment of a new supplier or maintaining an existing supplier and all the tasks and activities associated with identifying and qualifying the supplier and finalizing on the sourcing terms and conditions. Seller Auctions allow sellers to create and publish an auction for goods or services that they intend to sell. optimize catalogs for maximum order volume as well as manage individual trading relationships with buyers. Total Source Lead Time Total Delivery Time Terms and Conditions Total Product Costs Total Delivery Costs Total Handling Costs Value of assets provided by service provider (cost avoidance) Responsiveness Flexibility Cost Assets Best Practice Features Internet Exchanges that provide: Catalog hosting services allow suppliers to edit.7 The process of defining and maintaining a unique network of suppliers to deliver a specific product set. Exchanges will also support more traditional catalog-based sales. 88 April 2003 . © Copyright 2003 Supply-Chain Council. Bids from multiple suppliers can then be compared to make an award decision.

Identification of suppliers who will participate in
Vendor Managed Inventory (VMI) programs
Identification of suppliers who will participate in
Consignment Inventory programs
Identification of suppliers who will participate in
Kanban programs
Identification of suppliers who will participate in
procurement split (two or more suppliers sharing
purchase requirements) programs
Electronic data interchange can be used to send
RFQs and technical information to and from potential
suppliers to determine supplier capability to fulfill
requirements so that they may be added to supplier
network
On-line availability to supplier financials to determine
potential supplier viability to be added to supplier
network
Utilize concurrent engineering with suppliers to allow
them to provide engineering and product
performance test data to qualify as part of potential
supplier network
On line document management and automated
supplier approval processes can reduce the cycle
time and costs associated with managing supplier
evaluations and get them into the supplier network
faster
Supplier certification programs can reduce the cycle
time for initial certification of new suppliers or
certifying existing suppliers that wish to provide new
technologies
Establishment of criteria to rank suppliers

Supplier managed inventories with scheduling interfaces
to external supplier systems to replenish
Consignment Inventory Management
Electronic Kanban Support
None Identified

Electronic Data Interchange

Internet web sites for financial evaluation

Internet, EDI, FAX

ERP

None Identified

Utilize supplier delivery, quality, price performance as well
as any other criteria such as terms and conditions
Supplier Merge Programs for duplicates

Evaluate supplier network for duplicates

Inputs

Plan

Business Rules
Supplier Performance
Incoming Product
Supplier Agreement

Outputs

Make

Deliver

Make

Deliver

ES.1
ES.2
ES.3
ES.9

Plan

Business Rules
Supplier Performance
Incoming Product
Supplier Agreement
Identify Sources

© Copyright 2003 Supply-Chain Council, Inc.

Source

Source
ES.1
ES.2
ES.3
ES.9
S3.1, S3.2

89

April 2003

Enable Process: Manage Import/Export Requirements
Enable Process Definition

Process Number: ES.8

The process of identifying and complying with import/export regulatory documentation and process standards set
by external entities (eg, government).

Performance Attributes

Metric

Reliability

Assets

Compliance with multi-country government regulations1
Minimized delays in-transit caused by customs intervention2
None Identified
Customs clearance cycle time
Export shipment processing time
Duty tax control
Cost of compliance
None Identified

Best Practice

Features

Documents generated automatically during
shipment preparation.
Direct connection to customs clearance
Direct Transfer of documents to Recipient and
Forwarder
Assessing export/import requirements during
time of product development/manufacture
Ability to track component/sub-component
manufacturing country of origin

Electronic documentation submission via EDI and/or Internet

Inputs

Plan

Responsiveness
Flexibility
Cost

Multi-country Export/Import documentation compliance
Component/lot tracking (lot trace-ability)

Receipt History

Plan

Manage Capital Assets
Manage Incoming Product
Supplier Agreement

© Copyright 2003 Supply-Chain Council, Inc.

Make

Deliver

Make

Deliver

S1.2, S2.2,
S3.4
ES.5

Manage Capital Assets
Parts and Services Consumed

Outputs

Source

Source
ES.5
ES.6
ES.9

90

April 2003

Enable Process: Manage Supplier Agreements
Enable Process Definition

Process Number: ES.9

The management of existing purchase orders or supplier contracts. This includes managing volume/step pricing,
resolving issues, enforcing terms and conditions and maintaining an accurate status for existing purchase orders
or contracts.

Performance Attributes

Metric

Reliability

Supplier Delivery Performance Percent
Supplier Quality Performance Percent
Supplier Price Performance Percent
Re-negotiation Cycle Time
Volume of Amendment compared to total contracts
None Identified
Degree and frequency that purchase orders/contract can be
altered.
Average length of contracts
Cost of managing Long Term Agreements as a % spent, %
revenue
Cost of managing All Contracts as a % spent, % revenue
Assets associated with the Management of Supplier
Agreements as a %of Total Assets.

Responsiveness
Flexibility

Cost

Assets

Best Practice

Features

Enterprise level policies/rules with local execution
Long term supplier agreements/partnerships
Vendor Managed Inventory Agreements
Fab & Hold Agreements
Just-In-Time Agreements
Optimized Supply Chain Processes
Optimized Supplier Count
Supplier and Part Rationalization

Web based access to enterprise level business rules
Electronic rules for business relationships and transactions

Enterprise level spend analysis
Electronic Sourcing and Negotiation
E-Business

Inputs

Web based access to preferred and recommended suppliers,
supplier performance data and spend data stratified by
commodity, business unit/site, supplier, part type, process
type
Web based access to current spend data available from
enterprise to part level
Business Rules for electronic sourcing process and hierarchy

Plan

Select Final Supplier & Negotiate
Manage Supplier Network
Schedule Product Deliveries

Plan

Manage Capital Assets
Manage Supplier Network
Authorize Supplier Payment

© Copyright 2003 Supply-Chain Council, Inc.

Make

Deliver

Make

Deliver

S3.2
ES.7
S1.1, S2.1,
S3.3
ES.8

Import/Export Requirements

Outputs

Source

Source
ES.5
ES.7
S1.5, S2.5,
S3.7

91

April 2003

MAKE

© Copyright 2003 Supply-Chain Council, Inc.

92

April 2003

M1: Make-to-Stock
• (P3.4) Production Plan
• (S1.1, S2.1, S3.3) Scheduled
Receipts
• (M1.2, M1.3, M1.4, M1.5, M1.6)
Information Feedback
• (EM.5) Equipment and Facilities
Schedules and Plans

• (S1.4, S2.4, S3.6)

Inventory Availability
• (EM.4) WIP Handling

Rules, Move Information
and Methods
• (EM.6) WIP Location
Rules

M1.1

Schedule
Production
Activities

• Production Schedule
(P3.2, S1.1, S2.1, S3.3,
D1.3, D1.8, D4.2)

M1.2

M1.3

Issue Product

Produce
and Test

• Inventory Availability (P3.2)
• Information Feedback (M1.1)
• Replenishment Signal (S1.1, S2.1,
S3.3)
• Product Location Information
(EM.6)

• Information Feedback
(M1.1)

• (P3.4) Production Plan
• (P4.4) Deliver Plan

M1.4

M1.5

M1.6

Package

Stage
Product

Release
Product to
Deliver

Information
Feedback (M1.1)

© Copyright 2003 Supply-Chain Council, Inc.

• Information Feedback
(M1.1)

93

• Information
Feedback (M1.1)
• Finished Product
Release (D1.8,
D4.2)

April 2003

Six Sigma Postponement of final configuration to the nearest point to the customer. Allow customer access to production status and inventories using internet technologies and web site features. report writing.) based on rate schedules and user defined minimum and maximum trigger points. Electronic dispatch and data collection. Organization to enhance flexibility: Few job classifications. Use of web-based technologies for dissemination of information Support for modular skills inventory with links to training databases.e. Do configuration at warehouse. forming. EG. © Copyright 2003 Supply-Chain Council. self-directed work force. scheduling) and readily available to employees. activities within your manufacturing organization. replenishment signals. and are generally produced in accordance with a sales forecast. Paperless production order and inventory tracking Link individual performance to organizational and divisional goals Provide continuous formal training to employees Implement employee involvement programs Migrate from build to stock to configure to order. compensation systems. or non-value adding. Inc.” are completed prior to receipt of a customer order. ETC. Performance Attributes Metric Reliability Warranty costs Performance to customer request date Yield Item/Product/Grade changeover time Total Item/Product manufacture time Re-plan Cycle Time Item/Product/Grade changeover time Value-Added Productivity Plant Operating Cost per hour Indirect to direct headcount ratio Cost\unit Overhead cost Product Losses (Sourced/In-Process/Finished) Asset Turns Capacity utilization Inventory Aging WIP days of supply Responsiveness Flexibility Cost Assets Best Practices Features Cellular manufacturing Demand-pull manufacturing. None Identified Examples would be TQM. separating. and cross-functional work teams. Manufacturing is broken into work cells Support for demand-pull mechanisms (Kanban. Accurate and low cost batch/configuration records for warranty and regulatory tracking Production level loading Lean Manufacturing Data warehouse. machining. including active reduction of manufacturing system time and WIP through the use of demand-pull mechanisms and visual controls Performance results that are compared to benchmarks (i. and operator instructions. Make to stock products are intended to be shipped from finished goods or “off the shelf.. April 2003 94 . real time database and Executive Information systems that are easily accessible. capacity.Process Category: Make-to-Stock Process Number: M1 Process Category Definition The process of manufacturing in a make-to-stock environment adds value to products through mixing. flat management structure. and chemical processes. build subassemblies to forecast at the highest generic level in the bill of material/recipe/formula. None Identified Electronic batch/configuration records Capacity planning Use a team based systematic approach to identifying and eliminating wasteful.

Use internet technologies to provide the required business-to-business interfaces.Vendor Managed inventory Accurate and approved work instructions/ process plans Allows optimum use of production capacity and reduces inventory. Inc. Electronic document management that maintains current Standard operation procedures (SOPs) © Copyright 2003 Supply-Chain Council. April 2003 95 .

depending on the factory layout.2 April 2003 96 Deliver .1. the scheduling of the operations to be performed in accordance with these plans.1. Detailed production scheduling model and simulation capabilities Interface between maintenance management system and scheduling system Detailed production scheduling model and simulation capabilities Allow dynamic re-synchronization of MAKE activities by tying in real time status information to scheduler. Scheduling includes sequencing. The item sourced could be from a vendor’s make-to-stock process.4 Source Make Deliver S1.8.3. Cost Real-time feedback from Production. M1. M1. raw material and finished goods inventory and test activities. such as production equipment and tooling Schedule includes preventive maintenance program Schedule minimizes changeover costs HR/Certification support Detailed production model that synchronizes PLAN and MAKE activities in real time. make-to-order. S2. products.6 EM.3.1.3 M1. S3. D1.5 Equipment and Facilities Schedules and Plans Outputs Plan Source Production Schedule . D4. Performance Attributes Metric Reliability Responsiveness Flexibility Assets Schedule achievement None Identified Schedule Interval Upside Production Flexibility Downside Production Flexibility WIP inventory days of supply Scheduled resource costs Capacity utilization Best Practices Features Cross training/Certification Maintain data and system integrity by ensuring production data. S2.2. Accurate. Make D1.1. In general. inventory levels. and schedule requirements are 99+% accurate Schedule optimizes use of shared resources. Inputs Plan Production Plan Scheduled Receipts – depends upon the type of sourced product required. and. intermediate production activities are coordinated prior to the scheduling of the operations to be performed in producing a finished product. any standards for setup and run.4. P3. Projection of inventory availability for Deliver planning also requires the production schedule as feedback information. Provide scheduling output back to material and labor planning systems. Inc.2 S1. or engineer-to-order process.1 Given plans for the production of specific parts. M1.5. M1.Process Element: Schedule Production Activities Process Element Definition Process Element Number: M1. S3. Information Feedback P3. or formulations in specified quantities and planned availability of required sourced products.information is used as feedback for Plan and Source support processes.3 © Copyright 2003 Supply-Chain Council. real time information.

S3. or subassembly area Supplier delivery to production process at point of use Inputs Automated process control and/or barcode data collection Flexible back flush logic Inventory by lot of sourced/in-process product or discrete order.3 Sourced Product Location Information EM.6 WIP Handling Rules.2 Source Make M1.2 The selection and physical movement of sourced/in-process product (e. April 2003 97 Deliver .g.4. S2. S2. Performance Attributes Metric Reliability Inventory accuracy Out of stock occurrences Sourced/in-process product requisition cycle time Responsiveness Flexibility Cost Assets None Identified Inventory obsolescence Inventory days supply .1. fabricated components. subassemblies. The Bill of Materials/routing information or recipe/production instructions will determine the products to be issued to support the production operation(s). stockroom.1.6 Outputs Plan Inventory Availability Information Feedback Replenishment Signal P3. Inc.1 S1. required ingredients or intermediate formulations) from a stocking location (e.4. raw materials. Issuing product includes the corresponding system transaction..sourced product. a location on the production floor.4 EM. or subassemblies to decouple sourced product issuance cycle time from supplier lead time Electronic material move transactions Back flush material at order completion Complete lot history Use of safety stock algorithms to minimize stock levels..6 © Copyright 2003 Supply-Chain Council. Move Information and Methods WIP Location Rules EM.Process Element: Issue Material Process Element Definition Process Element Number: M1.g. items. a supplier) to a specific point of use location. S3. Kanban replenishment signals from stockroom. Demand-pull mechanisms. intermediate products. in-process product Cash-to-cash cycle time Best Practices Features Strategic safety stock of selected materials. / usage reporting by lot or discrete order None Identified EDI link to supplier’s sales order and inventory systems Plan Inventory Availability Source Make Deliver S1.

April 2003 98 . and set-up times Accurate batch/configuration records for warranty and regulatory tracking Just-in-time demand flow techniques Design/upgrade production equipment to maximize flexibility and avoid line stoppages Real time quality control techniques Maintain accurate lot/batch history information Electronic dispatch of operations Electronic document management Automatic download of production equipment with batch recipes/part programs Electronic data collection of completion. scrap. Performance Attributes Metric Reliability Fill rates Ratio of actual to theoretical cycle time Warranty and returns Yields Scrap expense In-process failure rates Total build cycle time Product/Grade Changeover Time Intra-Manufacturing Re-Plan Cycle Total Production Employment Value Added Productivity Warranty Costs Capacity utilization Asset Turns Responsiveness Flexibility Cost Assets Best Practices Features Authorize each operation to assess the quality of the previous operations Paperless production control Accurate and approved process plans/specifications Reduce chances of operator error None Identified Measuring process metrics and feedback to operators Reduce non-value added activities. including queue. quality.3 The series of activities performed upon sourced/in-process product to convert it from the raw or semi-finished state to a state of completion and greater value.Process Element: Produce and Test Process Element Definition Process Element Number: M1. move. Inc.1 © Copyright 2003 Supply-Chain Council. labor and equipment data and dissemination of information on factory floor Use principals of Lean Manufacturing Electronic batch recording/configuration Demand-pull mechanisms Machine productivity and downtime monitoring Electronic collection of quality data and online SPC Electronic data collection of employee actions and sourced/in-process product lot used Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Information Feedback M1. The processes associated with the validation of product performance to ensure conformance to defined specifications and requirements.

Performance Attributes Metric Reliability Responsiveness Flexibility Cost Warranty costs Package cycle time None Identified Packaging cost Scrap packaging expense Asset turns Capacity utilization Assets Best Practices Features Design/upgrade production equipment to maximize flexibility and avoid line stoppages Accurate and approved process plans.Process Element: Package Process Element Definition Process Element Number: M1. and labor data None Identified Electronic batch/configuration records Automatic interface to inspection systems Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Information Feedback M1.4 The series of activities that containerize completed products for storage or sale to end-users. Inc. lot trace ability.1 © Copyright 2003 Supply-Chain Council. scrap. Within certain industries. quality. routings. April 2003 99 . specifications and procedures Up-to-date shop packet/specification for each unique production event/demand Paperless production control Minimize operator induced errors Machine productivity and downtime monitoring Reduce non-value added paperwork while still maintaining process metrics Packaging operation is an integral part of the overall production process Accurate and low cost batch/configuration records for warranty and regulatory tracking Automatic label and seal verification Electronic document management Electronic Work Instructions Electronic dispatch of operations Automatic download of production equipment with setup parameters Graphical display of setup/changeover/layout Electronic data collection of completion. packaging may include cleaning or sterilization.

1 © Copyright 2003 Supply-Chain Council. April 2003 100 .Process Element: Stage Finished Product Process Element Definition Process Element Number: M1. Bar code data collection Inputs Plan Production Plan.5 The movement of packaged products into a temporary holding location to await movement to a finished goods location. Deliver Plan as they influence where you stage product due to size of production runs or timing of expected release to Delivery P3.4 Outputs Plan Information Feedback Source Make Deliver Source Make Deliver M1. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Staging time None Identified None Identified Inventory Carrying Cost Inventory days supply—plant FG Best Practices Features Direct ship from factory to customer/channel Electronic material move transactions Share production status with customers and transportation providers via web-based tools. Inc. The movement to finished goods is part of the Deliver process. Auto-Tendering for direct ship utilizing EDI/XML protocols. Products that are made to order may remain in the holding location to await shipment per the associated customer order. P4.4.

April 2003 101 . Inc.Process Element: Release Finished Product to Deliver Process Element Definition Process Element Number: M1.8. creating certificate of analysis. laboratory tests for potency or purity. Examples include assembly of batch records for regulatory agencies. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Release errors Quarantine or Hold time Release process cycle time None Identified Release cost per unit None Identified Best Practices Features Accurate and low cost batch records for regulatory compliance Review batch records by exception Electronic batch records Automated notification of laboratory regarding sample availability Electronic batch records linked to process plans/recipes and exceptions flagged Interface between production system and LIMS Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Information Feedback Finished Product Release M1. D4.1 D1. testing.2 © Copyright 2003 Supply-Chain Council.6 Activities associated with post-production documentation. or certification required prior to delivery of finished product to customer. and sign-off by the quality organization.

4) Production Plan • (S1.6) • Information Feedback (M2. S3. S2. D2.4) Production Plan • (P4. M2. S1. Move Information and Methods • (EM.3).5 M2.1. S2. S2.1.2.4.3) Scheduled Receipts • (M2.1) • Product Release (D2. D2.4) Deliver Plan M2. S3.1.5. 102 • Information Feedback (M2. M2.5) Equipment and Facilities Schedules and Plans M2. • Information Feedback (M2.8) • Inventory Availability (P3. M2.1) © Copyright 2003 Supply-Chain Council.M2: Make-to-Order • (S1.8) April 2003 .1.6) Inventory Availability • (EM.2.2) • Replenishment Signal (S1. M2.6 Package Stage Product Release Product to Deliver • Information Feedback (M2.6) WIP Location Rules • (P3.3 Schedule Production Activities Issue Product Produce and Test • Production Schedule (P3.1.4.1) • (P3. S3. Inc. S3.1 M2.1.2 M2.1) • Information Feedback (M2.4.6) Information Feedback • (EM.4 M2.4) WIP Handling Rules.3.1) • Product Location Information (EM.3. S2.3.

collaborative data-sharing environment. forming. Order entry specifications linked to manufacturing order Support for cellular and demand pull manufacturing execution Capacity planning None Identified None Identified None Identified None Identified 103 April 2003 . self-directed work force. and chemical processes. separating. Inc. report writing. Delivery schedules are collaboratively developed with customers Posted performance results Support for modular skills inventory with links to training databases. A make to order environment is one in which products are completed after receipt of a customer order and are built or configured only in response to a customer order. Produce products to unique customer requirements Cellular and demand pull manufacturing Production level loading Link individual performance to organizational and divisional goals Provide continuous formal training to employees Implement employee involvement programs Build subassemblies/products to forecast at highest generic level to minimize make cycle time © Copyright 2003 Supply-Chain Council. compensation systems. and EIS systems Electronic document management Electronic batch/configuration records Electronic dispatch and data collection with external interface to internet. Data warehouse. machining. real time data base. and operator instructions.Process Category: Make-to-Order Process Category Definition Process Number: M2 The process of manufacturing in a make to order environment adds value to products through mixing. Accurate and approved work instructions/ process plans Accurate and low cost batch/configuration records for warranty and regulatory tracking Paperless order tracking and customer visibility of orders. Web-based access to plant scheduling status. Performance Attributes Metric Reliability Warranty costs Performance to customer request date Performance to customer commit date Yield Item/Product/Grade changeover time Total Item/Product manufacture time Re-plan Cycle Time Item/Product/Grade changeover time Value-added productivity Average plant-wide salary Plant Operating Cost per hour Indirect to direct headcount ratio Unit cost Overhead cost Product Losses (Sourced/In-Process/Finished) Asset Turns Capacity utilization Inventory Aging Responsiveness Flexibility Cost Assets Best Practices Features Organization to enhance flexibility: Few job classifications. and cross-functional work teams. flat management structure.

inventory levels. ETC. or formulations in specific quantities and planned availability of required sourced products. and schedule requirements Cross Training/certification Demand pull mechanisms Additional capacity for overflow demand © Copyright 2003 Supply-Chain Council. and. Scheduling utilizing optimization techniques Required production resources included in routing/process instructions Support for demand-pull mechanisms (Kanban. Inc. products. replenishment signals. and product specifications linked to production order Schedule undated by on line reporting and status systems and re-sequence activities Demand-pull manufacturing. any standards for setup and run. Scheduling includes sequencing.Process Element: Schedule Production Activities Process Element Definition Process Element: M2. the scheduling of the operations to be preformed in accordance with these plans. including active reduction of manufacturing system time and WIP through the use of demand-pull mechanisms and visual controls Schedule minimizes product changeover costs Schedule includes preventative maintenance program Maintain data integrity and system accuracy by ensuring 99%+ production data. depending on the factory layout.) based on rate schedules and user defined minimum and maximum trigger points. Performance Attributes Metric Reliability Percent of orders scheduled to customer request date Schedule achievement None Identified Schedule interval Upside Production Flexibility Downside Production Flexibility WIP inventory days of supply Responsiveness Flexibility Cost Scheduled resource costs Assets Plant level order management costs Capacity utilization Best Practices Features Produce products to unique customer specification Schedule reflects current plant status (equipment availability.1 Given plans for the production of specific parts. Advanced scheduling systems that optimize production schedules to minimize setup/cleaning and optimize job sequences Interface between maintenance system and scheduling system Detail production scheduling model that synchronizes Plan and Make activities HR/certification support Repetitive scheduling and sequencing Outsource manufacturing and work force augmentation providers connected to production schedules via the internet. engineering. 104 April 2003 . other jobs and resource availability) on line Schedule optimizes use of shared resources such as tooling and production equipment Order entry. In general intermediate production activities are coordinated prior to the scheduling of the operations to be preformed in producing a finished product.

Inputs Plan Production Plan Scheduled Receipts – depend upon the type of sourced product required. S2.3 M2.5 Equipment and Facilities Schedules and Plans Outputs Plan Source Production Schedule P3. Information Feedback P3. Inc. make-to-order.3 © Copyright 2003 Supply-Chain Council.1. M2. S2.4. Make 105 Make Deliver D2.1. M2. The item sourced could be from a vendor’s make-to-stock process. M2.3. S3.4 Source Deliver S1. M2.1.5.2 S1. D2. or engineer-to-order process.3.2.1. S3.6 EM.8 April 2003 .

fabricated components.Process Element: Issue Sourced/In-Process Product Process Element Definition Process Element Number: M2. Issuing product includes the corresponding system transaction. S2.3 Information Feedback Sourced Product Location Information © Copyright 2003 Supply-Chain Council. a supplier) to a specific point of use location.. or subassemblies to decouple sourced product issuance cycle time from supplier lead time Electronic material move transactions Complete lot history None Identified Responsiveness Flexibility Cost Back flush material at order completion Supplier delivery to production process at point of use Inputs None Identified Automated process control and/or barcode data collection Inventory by lot of sourced/in-process or discrete order /usage reporting by lot or discrete order Flexible back flush logic EDI link to supplier’s sales order and inventory systems Plan Inventory Availability Source WIP Handling Rules. Move Information and Methods WIP Location Rules Deliver EM. Inc.1..g.4 EM. a location on the production floor. The Bill of Materials/routing information or recipe/production instructions will determine the products to be issued to support the production operation(s). Make S1. S2.1 EM. S3.2 Source Make Deliver S1.6 106 April 2003 . required ingredients or intermediate formulations) from a stocking location (e. intermediate products. or subassembly area Strategic safety stock of selected materials. stockroom.4.2 The selection and physical movement of sourced/in-process products (e. subassemblies. raw materials. S3.g.6 Outputs Plan Inventory Availability Replenishment Signal P3.4. Kanban replenishment signals from stockroom. Performance Attributes Metric Reliability Assets Inventory accuracy % Parts received at point of use Sourced/In-Process Product requisition cycle time None Identified Inventory obsolescence Inventory days of Supply Cash-to-cash cycle time Best Practices Features Demand-pull mechanisms.1.6 M2. items.

including queue. Inc.3 The series of activities performed upon sourced/in-process product to convert it from the raw or semi-finished state to a state of completion and greater value. and set-up times Accurate and low cost batch/configuration records for warranty and regulatory tracking Maintain accurate lot/batch history information Electronic collection of quality data and on-line SPC Electronic work instructions None Identified Electronic dispatch of operations Electronic document management Automatic download of production equipment with batch recipes/part programs Electronic data collection of completion. The processes associated with the validation of product performance to ensure conformance to defined specifications and requirements.1 107 April 2003 . labor and equipment data None Identified Electronic batch recording/configuration Electronic data collection of employee actions and sourced/in-process product lot used Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Information Feedback © Copyright 2003 Supply-Chain Council. scrap. M2. quality. Performance Attributes Metric Reliability Ratio Of Actual To Theoretical Cycle Time Scrap expense In-process failure rates Yields Total Build Cycle Time Intra-Production Re-Plan Cycle Product/Grade Changeover Time None Identified Warranty costs Value-Added Productivity Total Production Employment Capacity utilization Asset Turns Responsiveness Flexibility Cost Assets Best Practices Features Just-in-Time/demand flow techniques Design/upgrade production equipment to maximize flexibility and avoid line stoppages Real time quality control techniques Up-to-date shop packet/specifications Authorize each operation to assess the quality of the previous operations Paperless production control Accurate and approved process plans/specifications Reduce chances of operator error Real time data collection Machine productivity and downtime monitoring Reduce non-value added paperwork while still measuring process metrics Reduce non-value added activities.Process Element: Produce and Test Process Element Definition Process Element Number: M2. move.

quality. or layout Electronic data collection of completion.4 The series of activities that containerize completed products for storage or sale to end-users.1 108 April 2003 . Performance Attributes Metric Reliability Warranty costs Yield Package cycle time None Identified Packaging cost Scrap Packaging expense Asset turns Capacity Utilization Responsiveness Flexibility Cost Assets Best Practices Features Postponement and pre-kitting of accessories into modular packages that allow flexibility while maintaining control Design/upgrade production equipment to maximize flexibility and avoid line stoppages Accurate and approved process plans. Inc. and labor data None Identified Electronic batch/configuration records Automatic interface to inspection systems Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Information Feedback © Copyright 2003 Supply-Chain Council. specifications and procedures Up-to-date shop packet/specification for each unique production event/demand Paperless production control Minimize operator induced errors None Identified Reduce non-value added paperwork while still measuring process metrics Packaging operation is an integral part of the overall production process Accurate and low cost batch/configuration records for warranty and regulatory tracking Automatic label and seal verification Machine productivity and downtime monitoring Electronic document management Electronic Work Instructions Electronic dispatch of operations Automatic download of production equipment with setup parameters Graphical display of setup. changeover. routings. M2.Process Element: Package Process Element Definition Process Element Number: M2. Within certain industries. packaging may include cleaning or sterilization. scrap.

Delivery Plan as they influence where you stage product due to size of production runs or timing of expected release to Delivery. Source Make Deliver Source Make Deliver M2. Inc. Products that are made to order may remain in the holding location to await shipment per the associated customer order. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Staging time None Identified None Identified Inventory carrying cost Inventory Days Supply—Plant FG Best Practices Features Direct ship from factory to customer/channel Electronic material move transactions Share production status with customers and transportation providers via web-based tools. The actual move transaction is part of the Deliver process.5 The movement of packaged products into a temporary holding location to await movement to a finished goods location. P4. P3.4 Outputs Plan Information Feedback © Copyright 2003 Supply-Chain Council. Auto-Tendering for direct ship utilizing EDI/XML protocols.1 109 April 2003 .Process Element: Stage Finished Product Process Element Definition Process Element Number: M2.4. Bar code data collection Inputs Plan Production Plan.

6 Activities associated with post-production documentation.8 110 April 2003 . and sign-off by the quality organization. Inc. laboratory tests for potency or purity. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Release errors Quarantine or Hold time Release process cycle time None Identified Release cost per unit None Identified Best Practices Features Accurate and low cost batch records for regulatory compliance Review batch records by exception Electronic batch records Automated notification of laboratory regarding sample availability Electronic batch records linked to process plans/recipes and exceptions flagged Interface between production system and LIMS Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Information Feedback Finished Product Release © Copyright 2003 Supply-Chain Council.Process Element: Release Finished Product to Deliver Process Element Definition Process Element Number: M2.1 D2. testing. M2. Examples include assembly of batch records for regulatory agencies. creating certificate of analysis. or certification required prior to delivery of finished product to customer.

4 M3.2) © Copyright 2003 Supply-Chain Council.7 Produce and Test Package Stage Product Release Product to Deliver • Information Feedback (M3.5) Equipment and Facilities Schedules and Plans M3. S2. M3. S3. Procedures. Processes (M3.2) • Replenishment Signals (S1.2 M3.2. M3. D3.1.4.1. S2. S1.2) • Information Feedback (M3.3) Scheduled Receipts • (EM.4) Production Plan • (M3.M3: Engineer-to-Order • Engineering Design • (D3.2) • Product Release (D3.1.4. M3.7) • Information Feedback (M3.3.4) Deliver Plan M3.7) April 2003 . S3.6 M3. S2.3.1.3 Finalize Engineering Schedule Production Activities Issue Product • Methods.6.3) Order Information • (S1.4) Production Plan • (P4.1.5.1 M3.1.3. S3.4) WIP Handling Rules.6) Inventory Availability • (EM. Inc.5 M3.6) WIP Location Rules • (P3. S2.3) • Sourced Product Location Information (EM.7) Information Feedback • (S1. Move Information and Methods • (EM. 111 • Information Feedback (M3. D3.2) • Information Feedback (M3.6) • (P3.2) • Production Schedule (P3. S3.4. M3.

collaborative data-sharing environment. While Make to Order includes standard products built only in response to a customer order or products configured in response to a customer order. cross-functional work teams Delivery schedules are collaboratively developed with customers. and operator instructions © Copyright 2003 Supply-Chain Council. and manufactured in response to a specific customer request. Engineer to Order includes custom products that are designed. 112 April 2003 . Performance Attributes Metric Reliability Warranty costs Performance to customer-request date Performance to commit date Total Item/Product manufacture time ECO cycle time Value-added productivity Average plant-wide salary ECO cost Unit cost Overhead cost Product Losses (Sourced/In-Process/Finished) Asset turns Capacity utilization Inventory aging Responsiveness Flexibility Cost Assets Best Practices Features Cellular manufacturing Organize to enhance flexibility: few job classifications. Inc. etc. developed. replenishment signals. Support of demand-pull mechanisms (Kanban.Process Category: Engineer-to-Order Process Category Definition Process Number: M3 The process of manufacturing distinct items. such as parts that retain their identity through the transformation process and are intended to be completed after receipt of a customer order.) based on rate schedules and user-defined minimum/maximum trigger points On-line design tools facilitated by internet connections. compensations systems. Web-based access to plant scheduling status. Posted performance results Paperless order tracking and customer visibility of orders. Demand-pull manufacturing. self-directed work force. flat management structure. including active reduction of manufacturing systems time and WIP through the use of demand-pull mechanisms and visual controls Product design collaboration with customers None Identified Support for modular skills inventory with links to training databases. None Identified Electronic dispatch and data collection with external interface to internet.

Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Deliver to commit date variance Number of ECOs Production Engineering Cycle time None Identified ECO cost Capacity Utilization Best Practices Features Automated Configuration Management Automated conversion of engineering drawings into product specifications Configuration None Identified Inputs Plan Source Make Engineering Design Order Information Outputs D3.Process Element: Finalize Production Engineering Process Element Definition Process Element Number: M3. Procedures. specifications. the last step in the completion of any preliminary engineering work done as part of the quotation process. but before product can be produced. In general. formulas.2 113 April 2003 . Inc. Deliver Source Make Deliver M3.3 Plan Methods.1 Engineering activities required after acceptance of order. Processes © Copyright 2003 Supply-Chain Council. part programs. etc. May include generation and delivery of final drawings.

.Process Element: Schedule Production Activities Process Element Definition Process Element Number: M3. Performance Attributes Metric Reliability Assets % Orders scheduled to customer request date Schedule achievement None Identified Schedule interval Upside Production Flexibility Downside Production Flexibility Inventory days of supply Plant-level order management costs Capacity utilization Best Practices Features Build subassemblies to forecast at highest generic level in Bill of Material. cleaning times. intermediate production activities are coordinated prior to the scheduling of the operations to be performed in producing a finished product. and schedule requirements Design/upgrade production equipment to maximize flexibility and avoid line stoppages Cross-training Additional capacity for overflow demand © Copyright 2003 Supply-Chain Council. products. and ideal job sequences (e. any standards for setup and run. depending on the factory layout. Repetitive scheduling or sequencing of unique orders On-line reporting from operations Resource needs included in routing or Bill of Material None Identified Algorithms that manage set up times/costs. and other resources on-line) Schedule optimizes use of shared resources. or formulations in specified quantities and planned availability of required sourced products. and. the scheduling of the operations to be performed in accordance with these plans. Inc. such as tooling Cellular manufacturing Schedule minimizes changeover costs between products None Identified Responsiveness Flexibility Cost Schedule includes preventive maintenance program Maximize data integrity and system accuracy by ensuring 99%+ accuracy of BOM configuration. Scheduling includes sequencing. inventory levels. maintain flexibility while minimizing cycle time and inventory position Demand-pull mechanisms Schedule reflects current plant status (equipment. color sequencing light to dark) Interface to maintenance management system None Identified None Identified None Identified Outsource manufacturing and work force augmentation providers connected to production schedules via the internet. In general. jobs.g. 114 April 2003 .2 Given plans for the production of specific parts.

6. Inc. Make 115 Make Deliver D3.1.2 S1. Equipment and Facilities Schedules and Plans S1.3 EM. S3. or engineer-to-order process.7 April 2003 .4.1.1. S2.7 Scheduled Receipts – depend upon the type of sourced product required.5 Outputs Plan Source Production Schedule P3. The item sourced could be from a vendor’s make-to-stock process. S3. make-to-order.5.3 © Copyright 2003 Supply-Chain Council.3.4 Source Deliver M3. M3. S2. M3.3.Inputs Plan Production Plan Information Feedback P3.1. D3. M3. M3.

S2.. raw materials.6 EM. Kanban replenishment signals from stockroom or subassembly area Supplier delivery to production line at point-of-use Two-bin floor stock located at work center for “B” and “C” components. a supplier) to a specific point of use location.2 S1. stockroom.4 EM.1.Process Element: Issue Sourced/In-Process Product Process Element Number: M3. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Inventory accuracy Sourced/In-Process Product requisition cycle time None Identified Inventory obsolescence Cash-to-cash cycle time Best Practices Features Demand-pull mechanisms. items or subassemblies to decouple sourced product issuance cycle time from supplier lead time’ Electronic material move transactions Back flush material at order completion None Identified Inputs Plan EDI link to supplier’s sales order and inventory systems None Identified None Identified Bar code data collection Flexible back flush logic Inventory Availability Source WIP Handling Rules. subassemblies. S3.g. required ingredients or intermediate formulations) from a stocking location (e.4. The Bill of Materials/routing information or recipe/production instructions will determine the materials to be issued to support the production operation(s). fabricated components. Controlled by operators and replenished when one bin is empty Strategic safety stock of selected materials.4. Inc. Issuing material includes the corresponding system transaction.1.6 116 April 2003 . Move Information and Methods WIP Location Rules Outputs Deliver EM.6 Plan Information Feedback Replenishment Signal Source Make Deliver M3.3 Sourced Product Location Information © Copyright 2003 Supply-Chain Council..3 Process Element Definition The selection and physical movement of sourced/in-process products (e.g. a location on the production floor. S2. S3. Make S1.

and set-up times Link individual performance to organizational and divisional goals Provide continuous formal training to employees Implement employee involvement program Maintain accurate lot/batch history information Streamlined data collection Machine productivity and downtime monitoring Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Responsiveness Flexibility Cost Automatic download of production equipment with part programs Electronic dispatch of operations Electronic collection of defect data and on-line SPC Electronic work instructions Electronic data collection of completion. The processes associated with the validation of product performance to ensure conformance to defined specifications and requirements. scrap.Process Element: Produce and Test Process Element Definition Process Element Number: M3.2 117 April 2003 .4 The series of activities performed upon sourced/in-process product to convert it from the raw or semi-finished state to a state of completion and greater value. including queue. M3. quality. and labor data None Identified None Identified None Identified None Identified Electronic data collection of employee actions and sourced/in-process lot or subassemblies used Information Feedback © Copyright 2003 Supply-Chain Council. move. Performance Attributes Metric Reliability Assets Scrap expense In-process failure rates Yields Yield variability Total Build Cycle Time Intra-Production Re-Plan Cycle Ratio Of Actual To Theoretical Cycle Time None Identified Warranty costs Total Production Employment Value Added Productivity Asset turns Best Practices Features Just-in-time demand flow techniques Design/upgrade production equipment to maximize flexibility and avoid line stoppages Authorize each operation to assess the quality of the previous operations and prevent operatorintroduced errors Paperless production control Real time statistical control techniques Up-to-date shop packet/specifications Reduce non-value added paperwork while still measuring process metrics Reduce non-value added activities. Inc.

2 118 April 2003 . quality. Within certain industries.5 The series of activities that containerize completed products for storage or sale to end-users. M3. lot tractability. and labor data None Identified Automatic interface to inspection systems Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Information Feedback © Copyright 2003 Supply-Chain Council. scrap. packaging may include cleaning or sterilization. Inc.Process Element: Package Process Element Definition Process Element Number: M3. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Warranty costs Package cycle time None Identified Warranty costs Packaging Costs Scrap Packaging Expense Asset turns Capacity utilization Assets Best Practices Features Postponement and pre-kitting of accessories into modular packages that allow flexibility while maintaining control Design/upgrade production equipment to maximize flexibility and avoid line stoppages Up to date shop packet/specifications Paperless production control Minimize operator-induced errors None Identified Reduce non-value added paperwork while still measuring process metrics Packaging operation is an integral part of the overall production process Automatic label and seal verification Machine productivity and downtime monitoring Electronic work instructions Electronic dispatch of operations Automatic download of production equipment with setup parameters Electronic data collection of completion.

Process Element: Stage Finished Product
Process Element Definition

Process Element Number: M3.6

The movement of packaged products into a temporary holding location to await movement to a finished goods
location. Products that are made to order may remain in the holding location to await shipment per the
associated customer order. The actual move transaction is part of the Deliver process.

Performance Attributes

Metric

Reliability
Responsiveness
Flexibility
Cost
Assets

Staging Time
None Identified
None Identified
None Identified
None Identified

Best Practices

Features

Direct ship from factory to customer/channel

Electronic product move transactions

Share production status with customers and transportation
providers via web-based tools. Auto-Tendering for direct
ship utilizing EDI/XML protocols
Bar code data collection

Inputs

Plan

Production Plan, Deliver Plan as they influence
where you stage product due to size of
production runs or timing of expected release to
Delivery.

P3.4, P4.4

Outputs

Plan

Information Feedback

© Copyright 2003 Supply-Chain Council, Inc.

Source

Make

Deliver

Source

Make

Deliver

M3.2

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April 2003

Process Element: Release Product to Deliver
Process Element Definition

Process Element Number: M3.7

Activities associated with post-production documentation, testing, or certification required prior to delivery of
finished product to customer. Examples include assembly of batch records for regulatory agencies, laboratory
tests for potency or purity, creating certificate of analysis, and sign-off by the quality organization.

Performance Attributes

Metric

Reliability
Responsiveness
Flexibility
Cost
Assets

% Release errors
Quarantine or Hold time
Release process cycle time
None Identified
Release cost per unit
None Identified

Best Practices

Features

Accurate and low cost batch records for
regulatory compliance
Review batch records by exception

Electronic batch records

Automated notification of laboratory regarding
sample availability

Electronic batch records linked to process plans/recipes and
exceptions flagged
Interface between production system and LIMS

Inputs

Plan

Source

Make

Deliver

Outputs

Plan

Source

Make

Deliver

Information Feedback
Finished Product Release

© Copyright 2003 Supply-Chain Council, Inc.

M3.2
D3.7

120

April 2003

EM: Enable Make
• Business Plans
• Corporate Objectives and
Strategies
• Product Design
• (P) Functional Strategies,
Production Plans, Production
Capability

• Business Plans
• Corporate Objectives and
Strategies
• Product Design/Quality
• (P) Functional Strategies,
Production Plans, Production
Capability

EM.1

• Information Needed to Create
and Maintain IT
• (P, S, M, D) Information Needs
Analysis
• (S, M) Systems Capability
• (P, S, M, D) Information from
Business Processes

EM.2

Manage
Production Rules

EM.3
Manage MAKE
Information

Manage
Production
Performance

• Production Rules
(P, S, M, D)

• Production Rules (P, S, M, D)
• Production Quality and Policies

(EM.5)





• (P) Capacity Requirements,

Production Orders Planned
• (S) Incoming Product Information
• (D) Returned Product

• Information Infrastructure Plan
(P, S)
• Reports, Information, and
Documents (P, S, M, D)

(P) Production Plans and Budgets
(S) MRO Parts Availability
(EM.2) Production Quality and Policies
Equipment and Facilities Monitoring Information
Manufacturer’s Recommended Maintenance
Schedules & Specifications

Information

EM.5
Manage
Equipment and
Facilities

EM.4
Manage InProcess Products
(WIP)

• Preventative Maintenance and Calibration

Schedule (P, S, M1.1, M2.1, M3.2)
• Equipment and Facilities Schedules and Plans

• WIP Handling Rules, Move
Information and Methods (P, S,
M1.2, M2.2, M3.3, EM.6, D)

(M1.1, M2.1, M3.2)
• Equipment and Facilities Replacement and

Disposition Plans (P, EM.6)
• Parts and Services Consumed (S)
• Equipment and Facilities Maintenance History

(S, M)
© Copyright 2003 Supply-Chain Council, Inc.

121

• Production Status (EM.7)

April 2003

EM: Enable Make




Production Orders Planned and Actual Reports
(P) Capacity Requirements
(S) Supplier Agreement
(M1.2, M2.2, M3.3, D) Product Location Information
(P, S, M, EM.4, D) WIP Handling Rules
• (EM.5) Equipment and Facilities Replacement and Disposition
Plans
• (EM.7) Projected Delivery Requirements

• (P) Supply Chain Plans,
Planning Data
• (EM.5) Production Status

EM.7
Manage
Production
Network

EM.6
Manage
Transportation

• Internal Capacity (P, S)
• Cost to Produce (P)
• Projected Delivery Requirements
(P, EM.6, D)

WIP Location Rules (M1.2,
M2.2, M3.3, D2.8)
• WIP Move Information and
Methods (P, S, M, D)

• (P, S, M) External Regulatory

Information
• Corporate Objectives and Strategies
• Product Design/Claims
• Equipment and Facility

Characteristics

EM.8
Manage
Production
Regulatory
Compliance

• Conformance Rules (M)
• Conformance Plan (S, M)

© Copyright 2003 Supply-Chain Council, Inc.

122

April 2003

Enable Process: Manage Production Rules
Enable Process Definition

Process Number: EM.1

The process of establishing, maintaining, and enforcing rules for managing production details in line with business
strategy, goals, and objectives. Production details include part/item master, bills of materials/formulas, routings,
processes, equipment requirements, tooling, and other information specifying the method of production for a
particular product.

Performance Attributes

Metric

Reliability
Responsiveness
Flexibility
Cost

Assets

None Identified
None Identified
Production Rules Preparation Cycle Time (PRPCT)
Plant Level Order Management Costs
Total Internal and/or External Costs That Are The Result of
Inaccurate Production Rule Details
% Utilization of Production Rules Preparation

Best Practices

Features

Attribute-Based Process Planning
On Line Access And Notification Of Tooling
And Equipment Information
Automated Engineering Specifications

Computer aided process planning / recipe management
Delivery of tooling and equipment details drawings

Automated Links To Existing CAD & CAM
Information
Automatic Generation / Configuration Of
Tooling / Set-Up Instructions
Pre-Defined Manufacturing Design Rules
Automatic Link To Recipe Management, PLC
Program, CNC Program Systems, Etc., To
Deliver New Manufacturing Documentation
Automatic Notification When To Begin And
When To Complete
Storage And Configuration Management For
Release And Revision Control Of Final
Documents
Electronic Documentation And Imaging
Document Control
Genealogy Tracking
Design For Production

© Copyright 2003 Supply-Chain Council, Inc.

Automated Intelligence (Heuristic) - based engineering
specifications system
Electronic hypertext or links to existing database of
detail/parts/setup sketches/drawings
Parametric driven (Group Technology - based) manufacturing
design system
Libraries of manufacturing capabilities or design envelopes
Seamless application interface to manufacturing planning
documentation and CAM systems
Workflow/Groupware
Product data management (PDM) or Electronic Data
Management (EDM) feature set
Graphical display of drawings, diagrams, recipes/formulas,
specifications, instructions, etc., to all users
Control who can create, revise and access information
Where-used listing of as-planned vs. as-built documentation
Table of manufacturing capacities or design envelops
(capacities; envelop sizes; tank, vessel or batch sizes)

123

April 2003

6. 124 April 2003 . . PM Outputs Plan Source Make Deliver Production Rules P S M D © Copyright 2003 Supply-Chain Council.4. . P EP.Inputs Corporate Objectives and Strategies Functional strategies Business Plans Production Plans Product Design Production Capability Plan Source Make Deliver EP. Inc.4.5. P3.

industry standards. Costs Associated with Managing Production Performance as a % Manufacturing Controllable Cost.2 The process of developing and maintaining performance standards and analysis methods to compare actual production performance against the established standards. This process allows the development and implementation of a course of action to achieve targeted performance. and track progress against schedule and standards. Production Plans. customer/supplier alignment agreements. None Identified Best Practices Features Standards and measurements aligned to maximize supply chain performance Periodic Review of Standards Internal/external benchmarking. Process for establishing and maintaining review schedules Inputs Plan Responsiveness Flexibility Cost Real Time Performance Measurement Reporting Systems Business Plans Corporate Objectives and Strategies Product Design/Quality Functional Strategies. Performance Attributes Metric Reliability Assets Percent standards completed on time Percentage of “right first-time” corrective actions None Identified Time interval between a Performance Standard request and availability. visibility of key performance indicators Systems to collect production information online generate reports upon request by operators.5 D © Copyright 2003 Supply-Chain Council. 125 April 2003 .Enable Process: Manage Production Performance Enable Process Definition Process Number: EM. Inc. Production Capability Source Make Deliver P Outputs Plan Source Make Deliver Production Rules Production Quality and Policies P S M EM.

126 D April 2003 . Radio Frequency Identification. Radio Frequency Communication. Utilize Enterprise Information Systems Continuous Improvement On-demand access to available to promise (ATP). and Documents P P S S M D Information Needed to Create and Maintain IT Information Needs Analysis Systems Capability Information from Business Processes © Copyright 2003 Supply-Chain Council. Magnetic Stripe. bar code.Enable Process: Manage MAKE Information Enable Process Definition Process Number: EM. maintaining. order and process data. to enable data collection Enter. collecting.3 The process of managing.. Machine Interface. Inc. cause and effect analysis. The information to be managed includes production. Information. This could include using PLC. and communicating information to support MAKE planning and execution processes. production schedules and inventory status by internal operations and customers. Performance Attributes Metric Reliability % Of time data is available when needed % Of data accuracy Production Process Validation Frequency Decision Timeframe Ratio None Identified Time from occurrence of an event to dissemination of the information Ratio of the Cost of Managing MAKE Information/Manufacturing Controllable Costs % Of information management assets used / production assets Responsiveness Flexibility Cost Assets Best Practices Features On-demand access of Production Information Data Collection and Display Systems designed for efficient performance of value-added operations in production. Inputs Plan Source Make Deliver P M M M D P S S S Outputs Plan Source Make Deliver Information Infrastructure Plan Reports. and Key Performance Indicators Scheduling reviews of processes for possible improvements Electronic management of products and orders with access to data via Web-based tools. Smart Cards. etc. Process. and Deliver information about the manufacturing process to management using information systems that span the enterprise Historical trending.

Production Orders Planned Incoming Sourced Product Information Returned Product Information P Outputs Plan Source Make Deliver WIP Handling Rules. M3.6 D © Copyright 2003 Supply-Chain Council. and payment functions.2. Recyclable or no containers where appropriate.2. No packing and unpacking time required. Source Make Deliver S D 127 April 2003 . EM. For example.4 The process of establishing and maintaining limits or levels. No discarded material. M2.3. replenishment models. The software system verifies usage. Move high frequency used inventory close to point of use. product mix and stocking locations for In-Process Product (WIP). the system should provide the frequency of picks by part number so that high frequency picks can be moved to convenient locations or part pick quantities increased.Enable Process: Manage In-Process Products (WIP) Process Element Definition Process Number: EM. Minimizing In-Process Product (WIP) Supplier Managed Inventory Minimum Product Handling In-Process Product (WIP) Handling Rules Dunnage Control Optimize Packing Inputs Plan Capacity Requirements. Tracking. Performance Attributes Metric Reliability WIP Inventory cycle-counting accuracy % Downtime due to non-availability of WIP None Identified None Identified Cost Of In-Process Product (WIP) Damaged from Handling/Storage as a Percentage of Total Material Cost Cost of handling of WIP Cost of storage space Administrative costs associated with handling/storage of WIP % Equipment utilization for handling/storage of WIP % Space utilization for WIP storage Responsiveness Flexibility Cost Assets Best Practices Features First In – First Out Part / WIP location by date received for those parts that must be stocked or staged in a holding area WIP Storage Management System Efficient Space Utilization Implementing Pull Systems The supplier is responsible for maintaining inventory levels at the point of use. genealogy System data field to specify where the part / product shipping container should be removed. Reuse of intermediate WIP containers for finished goods. ownership. receiving. Best practice is to remove the dunnage as soon as possible unless part / product damage will result. Move Information and Methods P S M1. Inc.

5 The process of specifying maintaining and dispositioning MAKE’s capital assets to operate the supply chain production processes.D. parts listing reference guide and part cost lists. and measurement tool. Outsourcing strategies including the use of Application Service Providers (ASPs). Software to identify operational constraints to the MAKE processes to assist in directing resources toward bottleneck functional areas. which can be used to prioritize and track results of improvement efforts.Enable Process: Manage MAKE Equipment and Facilities Process Element Definition Process Number: EM. Software to capture actual performance history / costs of operations with capability of predicting “best cost action plans” relating to maintaining equipment and facilities. Shop floor access to electronic data base of equipment line drawings.I. This includes repair. System software to list checklist items. calibration and other miscellaneous items to maintain production capabilities. automatic store room parts purchases. Equipment/Facility Maintenance Cost as % of Manufacturing Controllable Cost Actual Asset Life Maintenance Cost as % of Replacement Value Responsiveness Flexibility Cost Assets Best Practices Features Total Preventative Maintenance Program Automatically generated TPM repair schedules integrated with MRP systems. track maintenance completed. allow entry of test readings. parts listings. instructional directions to conduct changeover. web-based maintenance/diagnostic assistance and MRO parts. Noise. electronic equipment repair history. Lubrication Composition & Vibration) Systematic Disposition Of Equipment Minimize capital assets required and maintenance costs. 128 April 2003 . part stores inventory & reorder points. alteration. Inc. Changeover process flow element identification. © Copyright 2003 Supply-Chain Council. electrical wiring diagrams. and have capability of generating desired reports. report results of audit & forward actions to be taken E. contain a help-file to be consulted Rules for deciding appropriate disposition. which could highlight suggested actions based upon readings obtained. Changeover Reduction / Continuous Improvement Program Factory Floor Electronic Decision Making Information System Facility & Equipment Environmental / Safety Audit System Supplier Managed Inventory Of Parts Predictive Maintenance Monitoring (Heat. linkage of Inventory Information Database for equipment to contain expected results of analysis. Performance Attributes Metric Reliability Unplanned Maintenance Downtime % of total Production Time Percentage Completed PM Work Orders Mean Time Between Failure None identified Mean Time to Repair Asset % Of New or Modified Equipment & Facilities Available when and where needed.

M3.2 S S 129 Deliver M EM. Inc.2 M1.1. M2.1. M3.2 Equipment and Facilities Replacement and Disposition Plans Parts and Services Consumed Equipment and Facilities Maintenance History Production Status P © Copyright 2003 Supply-Chain Council.1. M2. Source Make Deliver M S EM.7 April 2003 .1.Inputs Plan Production Plans and Budgets MRO Parts Availability Production Quality and Policies Equipment and Facilities Monitoring Information Manufacturer’s Recommended Maintenance Schedules & Specifications P Outputs Plan Source Make Preventative Maintenance and Calibration Schedule Equipment and Facilities Schedules and Plans P S M1.

8 S M1.3 M WIP Location Rules © Copyright 2003 Supply-Chain Council. reduction of handling steps. AGVs and ASRS) and process improvement (i. M3.7 Source Make Deliver D2.5 D S P Outputs Plan S D EM. Deliver P WIP Handling Rules Equipment and Facilities Replacement and Disposition Plans Projected Delivery Requirements WIP Move Information and Methods Make P 130 D April 2003 . M2. shorter move paths) Reduce In-Process Product (WIP) Handling Inputs Production Orders Planned and Actual Reports Capacity Requirements Supplier Agreement Sourced Product Location Information Plan Source M1.6 The process of transporting In-Process Product (WIP).3 EM. Inc. This software then needs to provide a report based on the cubic feet of material times distance moved by part number Reduction of WIP handling through automation (i. M2. This includes management of the activities associated with in transit handling and movement of In-Process Product (WIP).e. Performance Attributes Metric Reliability Responsiveness Flexibility Cost % Downtime due to non-delivery of WIP Time required to move In-Process Product (WIP) material None Identified Cost Of In-Process Product (WIP) Damaged from Handling/Storage as a Percentage of Total Material Cost Cost of handling and movement of in transit WIP materials Cost of in transit storage space Administrative Costs Associated with In-Transit Handling/Movement of In-Process Product % Equipment utilization for in transit handling and movement of WIP Assets Best Practices Features Short Move Paths Software that allows for input of the distance that particular parts / WIP need to be moved.Enable Process: Manage Transportation (WIP) Enable Process Definition Process Number: EM.2. M3.2.2.e.2.4 EM.

Source Make Deliver EM. Inc.6 D April 2003 . Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % on time. Real time monitoring of production status and In-Process Product (WIP) Collaborative planning/scheduling Production reporting/status Inputs Plan Supply Chain Plans.7 The process of identifying and maintaining a network of intra-company production units that deliver specific semifinished materials or product sets to the final production site. on-line planning/scheduling systems.Enable Process: Manage Production Network Process Definition Process Number: EM. Capacity planning systems with accurate production capability data. % rejects Total manufacture time Time for network re-design None identified ROTA (return on total assets) Best Practices Features JIT environment Schedule visibility. on-line communications between source and demand Interactive.5 131 Make Deliver EM. Planning Data Production Status P Outputs Plan Source Internal Capacity Cost to Produce Projected Delivery Requirements P P P S © Copyright 2003 Supply-Chain Council.

Internal automatic notification of conformance.) Electronic subscription and publication of conformance documentation. Inc. or FDA requirements. Electronic Document Management System features. including holding of product until requirements are met Inputs Plan Source Make External Regulatory Information Corporate Objectives and Strategies Product Design/Claims Equipment and Facility Characteristics P S M Outputs Plan Source Make S M M Responsiveness Flexibility Cost Maintaining Repository Of Current Regulatory Requirements Conformance Rules Conformance Plan © Copyright 2003 Supply-Chain Council. 132 Deliver Deliver April 2003 .Enable Process: Manage MAKE Regulatory Compliance Enable Process Definition Process Number: EM.8 The process of identifying and complying with regulatory documentation and process standards set by external entities (eg government) Performance Attributes Metric Reliability Assets % Regulations met by required date Severity of instances of non-conformance per unit time Downtime in MAKE due to compliance issues Regulatory documentation cycle time Time to Comply with regulatory changes Cost of compliance including administrative costs Cost of noncompliance % Cost of assets used for compliance/total MAKE asset cost Best Practices Features Automatic Generation And Submission Of Conformance Documents Automated Conformance Monitoring And Control Software specific to industry regulations and standards (eg may be software to produce MSDS documents. etc.

DELIVER © Copyright 2003 Supply-Chain Council. 133 April 2003 . Inc.

1 Receive.4) Sourcing Plans • (P3.4) Production Plans • (P4.10 D1.7 Select Carriers & Rate Shipments D1.12 Install Product Shipping Documents (carrier. Verify.4) Inventory Availability (M1.11 Receive & Verify Product at Customer Site D1.9 • (Customer) Customer Order • (Customer) Deliver Contract Terms • (Customer) Customer Replenish Signal April 2003 D1.13 Invoice • Payment . government) Delivered End Items (customer) Shipments (P1. P4.5 Route Shipments Plan & Build Loads • Scheduled Deliveries (P) • • • • • • • Load Information (P4. M) Inventory Availability • (M1.• (P2.2 • Order Backlog (P1. Enter & Validate Order Process Inquiry & Quote • Validated Order • Optional Payment • (D) Advanced Ship Notice D1.4) (S1. Verify Credit & Ship Product Pick Product • • • • Reserve Inventory & Determine Delivery Date D1.8 From SOURCE or MAKE Receive Product at Warehouse • Inventory Availability (D) D1.1) Production Schedule (M1.5) © Copyright 2003 Supply-Chain Council. and Credit Information (SR2.6) Product Release (SR2.3 D1.2) Authorization to Scrap (SR2.2) • Plan and Build Loads Information (SR2.1) Production Schedule D1: Deliver Stocked Product • (Carrier) Routing Guide • (Carrier) Rated Carrier Data D1.2) • Replenishment Signal (S1.1) • Inventory Availability/ Delivery Date (P4. customer.4) Delivery Plans • (S.2) Authorization to Return to Service D1.6 D1. 134 • (Customer) Inquiry D1.1.1) • (D) Consolidated Product D1. Inc.4 Consolidate Orders • (D) Inventory Availability • Daily Shipment Volume Load Vehicle Generate Ship Docs.1) Scheduled Receipts (S1.1) Load. Shipping.

VMI. EDI Electronic Catalogues/Malls Internet Ordering Efficient Consumer Response (ECR). Inc. Scheduling Flexibility © Copyright 2003 Supply-Chain Council. Quick Response None Identified None Identified None Identified Demand Planning. Performance Attributes Metric Reliability Responsiveness Cost Assets Fill Rate Published Delivery Cycle Time Deliver Cycle Time Upside Delivery Flexibility Downside Delivery Flexibility Order Management Costs Finished Goods Inventory Days of Supply Best Practices Features Rapid replenishment. 135 April 2003 .Process Category: Deliver Stocked Product Process Category Definition Process Number: D1 The process of delivering product that is maintained in a finished goods state prior to the receipt of a firm customer order. Deployment.

1 Receive and respond to general customer inquiries and requests for quotes Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets # Of Call backs as % of total inquiries None Identified None Identified Order Management Costs-Not company specific None Identified Best Practices Features Quote capability. which can be converted into an order in a single step Single point of contact for all order inquires (including order entry) None Identified Inputs Plan Source Make Deliver Plan Source Make Deliver None Identified (Customer) Inquiry Outputs © Copyright 2003 Supply-Chain Council. 136 April 2003 .Process Element: Process Inquiry & Quote Process Element Definition Process Element Number: D1. without reserving inventory. Inc.

Telemetry to automatically communicate replenishment of chemicals Remote (sales. Enter & Validate Order Process Element Definition Process Element Number: D1. credit approval). Days Sales Outstanding. Performance Attributes Metric Reliability Responsiveness Assets None Identified Customer Signature/Authorization to Order Receipt Time Order Receipt to Order Entry Complete Time Upside Order Flexibility Downside Order Flexibility Create Customer Order Costs Order Entry and Maintenance Costs None Identified Best Practices Features Electronic Commerce (customer visibility of stock availability. Check the customer’s credit. customer credit history. or electronic media. confirmation. Integrated Order Management by Customer by Line Item (Customer) Customer Order (Customer) Deliver Contract Terms (Customer) Customer Replenish Signal Outputs Validated Order Optional Payment © Copyright 2003 Supply-Chain Council. Inc. On-line stock check and reservation of inventory Enable real-time visibility into backlog.Process Element: Receive. Orders can be received through phone. order status. EDLP. Margin Testing Value Pricing based on “Cost to Serve”. Vendor Managed Inventory. scheduled material receipts. and current inventory positions Continuous Replenishment Programs. “Technically” examine orders to ensure an orderable configuration and provide accurate price. Optionally accept payment. 137 April 2003 . customers) order entry capability Automatic Multi-level Credit Checking: Dollar Limits. Cost Plus Pricing EDI applications and integrated order management Inputs Plan Source Make Deliver Plan Source Make Deliver Flexibility Cost None Identified Integrated demand/deployment planning to customer location driven by POS. use of hand-held terminals for direct order entry. Customer movement data None Identified Integrated Order/Financial Management Activity Based Costing. shipments. fax.2 Receive orders from the customer and enter them into a company’s order processing system.

1.2 © Copyright 2003 Supply-Chain Council.Process Element: Reserve Inventory & Determine Delivery Date Process Element Definition Process Element Number: D1.4 P3.1 Source Make S1. Inc.4 Outputs Plan Order Backlog Inventory Availability/Delivery Date Replenishment Signal P1.4 P4.1 P4. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Delivery Performance To Customer Commit Date Order Receipt to Order Entry Complete Time None Identified Finished Goods Inventory Days of Supply Order Fulfillment Costs Finished Goods Inventory Carry Cost Best Practices Features EDI links between manufacturing and distributor to achieve visibility of complete finished goods inventory and expected shipments Automatic reservation of inventory and dynamic sourcing of product for single shipment to customer ATP and Product Reservation Priority-based inventory reservations.3 Inventory (both on hand and scheduled) is identified and reserved for specific orders and a delivery date is committed and scheduled. Integrated order management system that treats each order line as a separate order with integration to inventory source and status. P4.1 138 April 2003 Deliver Deliver . for key customers. with FIFO allocation for all others Inventory allocation exception process is clearly defined and jointly owned by manufacturing and sales None Identified Inputs Plan Sourcing Plans Production Plans Deliver Plans Inventory Availability Production Schedule P2. Real-time inventory management Integration with scheduling and inventory management None Identified None Identified Source Make S M M1.

Combine consolidation needs with other products/divisions/companies Integrated load planning and building with warehouse management None Identified Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Daily Shipment Volume © Copyright 2003 Supply-Chain Council.Process Element: Consolidate Orders Process Element Definition Process Element Number: D1. source. 139 April 2003 .4 The process of analyzing orders to determine the groupings that result in least cost/best service fulfillment and transportation. traffic lane. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Order Consolidation Profile Order Entry Complete to Order Ready for Shipment Time None Identified Transportation Costs None Identified Best Practices Features Consolidate orders by customer. etc. carrier. Inc.

Process Element: Plan & Build Loads Process Element Definition Process Element Number: D1. 1st truck destination loaded last. Inc.e.2 © Copyright 2003 Supply-Chain Council.5 Transportation modes are selected and efficient loads are built. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified Upside Shipment Flexibility Downside Shipment Flexibility Transportation Costs None Identified Best Practices Features Consolidation of inbound and outbound requirements Build load in stop sequence (i. Same as above Integration with CRP/VMI vendor systems 140 April 2003 Return Return .) CRP & VMI loads optimized for utilization Integrated inbound/outbound transportation planning Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Load Information P4. etc.

141 April 2003 . Inc.Process Element: Route Shipments Process Element Definition Process Element Number: D1.6 Loads are consolidated and routed by mode. lane and location. Routing & Scheduling with Advanced Ship Notice (ASN) Transportation Modeling and Rate Analysis Route scheduling. and rating Consolidation of Carriers Carrier/Route Optimization based on continuous movement and consolidation/pooling Shipment tracking and tracing Inputs Satellite communications & GPS Plan Source Make Deliver Plan Source Make Deliver (Carrier) Routing Guide (Carrier) Rated Carrier Data Outputs © Copyright 2003 Supply-Chain Council. carrier selection. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified Order Entry Complete to Order Ready for Shipment Time None Identified Transportation Costs None Identified Best Practices Features CRP/VMI Integrated Load Building.

Inc. 142 April 2003 .7 Specific carriers are selected by lowest cost per route and shipments are rated and tendered. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified Carrier Quote Response Time None Identified Transportation Costs None Identified Best Practices Features Select carriers by least cost per shipment and rate using actual rates prior to release to billing Rules based carrier selection and actual rate database Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Scheduled Deliveries P © Copyright 2003 Supply-Chain Council.Process Element: Select Carriers & Rate Shipments Process Element Definition Process Element Number: D1.

May include quality inspection. putting away and recording location that a company performs at its own warehouses. and rules based put away logic Inputs Plan Scheduled Receipts Inventory Availability Production Schedule Finished Product Release Outputs Make Deliver Return Deliver Return S1. & Advanced Ship Notices for Automated Receiving and Put away Dynamic location assignment including lot control. Inc.8 The activities such as receiving product. Performance Attributes Metric Reliability Responsiveness Flexibility Incoming Material Quality Dock To Stock Cycle Time Upside Delivery Flexibility Downside Delivery Flexibility Distribution Costs Incoming Material Costs Product Acquisition Costs Finished Goods Inventory Days of Supply Inventory Obsolescence as a % of Total Inventory End-of-Life Inventory Cost Assets Best Practices Features Automatic Identification Download P. zoned put away. verifying. ABC frequency of access Bar Coding & Radio Frequency Communications Integration with Procurement Systems & Electronic Commerce with Vendors Real time inventory control.1 S1.1 M1.6 Plan Inventory Availability © Copyright 2003 Supply-Chain Council. Source Source Make D 143 April 2003 .Process Element: Receive Product at Warehouse Process Element Definition Process Element Number: D1. recording product receipt. stock locator.O. quality assurance.4 M1. determining put-away location.

recording the pick and delivering product to shipping in response to an order. quality assurance Use of speed racks for automated material handling Rules based picking logic and simulation Inputs Plan Real time inventory control.Process Element: Pick Product Process Element Definition Process Element Number: D1. Deliver D Plan 144 Source Make April 2003 Deliver . Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Fill Rates Order Entry Complete to Order Ready for Shipment Time Upside Shipment Flexibility Downside Shipment Flexibility Distribution Costs None Identified Best Practices Features Dynamic simulation of picking requirements optimized for labor. stock locator. cost. and time Dynamic location assignment including lot control. picking the product. and rules based picking logic None Identified Source Make Inventory Availability Outputs © Copyright 2003 Supply-Chain Council. Inc. determining inventory availability.9 The series of activities including retrieving orders to pick. zoned picking. building the pick wave.

carrier and government needs. Verify Credit & Ship Product Process Element Definition Process Element Number: D1. customer. generating the documentation necessary to meet internal. Inc. Performance Attributes Metric Reliability Cost Assets Delivery Performance to Customer Commit Date Delivery Performance to Customer Request Date Perfect Order Fulfillment Order Entry Complete to Order Ready for Shipment Time Upside Shipment Flexibility Downside Shipment Flexibility None Identified None Identified Best Practices Features Advanced Shipping Notices & UCC128 container labeling Integrated Credit Checking Shipment Tracking Electronic generation and download of shipping documents Full visibility of credit history by shipping personnel Bar coding. government) Delivered End Items (customer) Shipments P1. EDI.10 The series of task including placing product onto vehicles.Process Element: Load Vehicle. customer.1 © Copyright 2003 Supply-Chain Council. Deliver 145 Source Make Deliver April 2003 Return . and sending the product to the customer. Generate Shipping Documentation. integrated transportation/warehouse management Interface to supplier’s shipping system to financials None Identified None Identified Inputs Plan Responsiveness Flexibility None Identified Source Make Consolidated Finished Product Return D Outputs Plan Shipping Documents (carrier.

Process Element: Receive & Verify Product at
Customer Site
Process Element Definition

Process Element Number: D1.11

The process of receiving the shipment at the customer site and verifying that the order was shipped complete
and that the product is of sufficient quality.

Performance Attributes

Metric

Reliability
Responsiveness
Flexibility
Cost
Assets

Perfect Order Fulfillment
Order Ready for Shipment to Customer Receipt of Order Time
Upside Delivery Flexibility
Downside Delivery Flexibility
None Identified
None Identified

Best Practices

Features

Advanced Shipping Notices & UCC128
container labeling
Shipment Tracking

Bar coding; EDI; integrated transportation/warehouse
management
None Identified

Inputs

Plan

Source

Make

Advanced Ship Notice

Outputs

© Copyright 2003 Supply-Chain Council, Inc.

Deliver
D

Plan

146

Source

Make

April 2003

Deliver

Process Element: Install Product
Process Element Definition

Process Element Number: D1.12

When necessary, the process of preparing and installing the product at the customer site. The product is fully
functional upon completion.

Performance Attributes

Metric

Reliability
Responsiveness
Flexibility
Cost
Assets

% Faultless Installations
Installation Cycle Time (Measured in Days)
Upside Installation Flexibility
Downside Installation Flexibility
None Identified
None Identified

Best Practices

Features

None Identified

None Identified

Inputs

Plan

Source

Make

Deliver

Outputs

Plan

Source

Make

Deliver

© Copyright 2003 Supply-Chain Council, Inc.

147

April 2003

Process Element: Invoice & Receive Payment

Process Element Number:
D1.13

Process Element Definition
A signal is sent to the financial organization that the order has been shipped and that the billing process should
begin and payment be received or be closed out if payment has already been received. Payment is received
from the customer within the payment terms of the invoice.

Performance Attributes

Metric

Reliability
Responsiveness
Flexibility
Cost
Assets

% Of Faultless Invoices
Days Sales Outstanding
Upside Delivery Flexibility
Downside Delivery Flexibility
Customer Invoicing/Accounting Costs
Days Sales Outstanding

Best Practices

Features

Utilize EDI and EFT for payment to speed
closing of receivables and to reduce
processing costs
Provide visibility to and quickly escalate
delinquent accounts for resolution
Electronic transfer of shipment information to
finance

EDI transaction and network services

Inputs

Plan

Source

Make

Deliver

Outputs

Plan

Source

Make

Deliver

Integrated accounts receivables
None Identified

Payment

© Copyright 2003 Supply-Chain Council, Inc.

148

April 2003

D2: Deliver Make-to-Order Product
• Routing
Guide
• Rated
Carrier
Data

D2.6

D2.7

Select
Carriers &
Rate
Shipments

Route
Shipments





D2.5

Plan &
Build
Loads

• Scheduled
Deliveries (P)

• (S2.4) Inventory
Availability
• (M2.1) Production
Schedule
• (M2.6) Finished Product
Release

D2.8

From
Source
or Make

Pick
Staged
Product

• Consolidated
Product (D)

(P2.4) Sourcing Plans
(P3.4) Production Plans
(P4.4) Delivery Plans
(S) Product Availability
(M2.1) Production
Schedule

D2.4

• (ED.1) Order
Rules
• (ED.1)
Configuration
Rules
• Credit History
• Contract Terms

D2.3

Consolidate
Orders

D2.2

Reserve
Resources
&
Determine
Delivery
Date

Process
Inquiry &
Quote

• Booked
Order (ED.3)
• Optional
Payment

• Order quote
(customer)

• (D) Advanced
Ship Notice)

D2.9

D2.10

D2.11

Load Vehicle
Generate Ship
Docs. Verify
Credit & Ship
Product

Receive &
Verify
Product at
Customer
Site

Test &
Install
Product

• Shipping
Documents
(Carrier)
• Delivered End
Items (Customer)

© Copyright 2003 Supply-Chain Council, Inc.

D2.1

Receive,
Configure,
Enter &
Validate
Order

• Order Signal (P2.1, P3.1)
• Order Backlog (P4.1)
• Inventory Availability/ Delivery Date
(P4.2)
• Replenishment Signal (S2.1)
• Available to Promise Date (M)
• Inventory Status (P) (D) (M) (S)

• (D) Consolidated
Products

• (Customer)
Inquiry

149

• Installed
Product
(Customer)

D2.12

Invoice

• Payment

April 2003

Process Category: Deliver Make-to-Order Product
Process Category Definition

Process Number: D2

The process of delivering product that is manufactured, assembled or configured from standard parts or
subassemblies. Manufacture, assembly or configuration will begins only after the receipt and validation of a firm
customer order.

Performance Attributes

Metric

Reliability

Fill Rates
Delivery Performance to Customer Commit Date
Delivery Performance to Customer Request Date
Perfect Order Fulfillment
Published Delivery Cycle Time
Deliver Cycle Time
Upside Delivery Flexibility
Downside Delivery Flexibility
Order Management Costs
Finished Goods Inventory Days of Supply
Inventory Obsolescence as a % of Total Inventory-not company
specific

Responsiveness
Flexibility
Cost
Assets

Best Practices

Features

None Identified

None Identified

© Copyright 2003 Supply-Chain Council, Inc.

150

April 2003

but does not generate build signal or reserve inventory capacity Single point of contact for all order inquiries (including order entry) None Identified Inputs Plan Source Make Deliver Plan Source Make Deliver None Identified None Identified (Customer) Inquiry Outputs Order quote (customer) © Copyright 2003 Supply-Chain Council. which can be converted into an order in a single step Quote capability. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets # Call Backs As % Of Total Inquiries None Identified None Identified Order Management Costs None Identified Best Practices Features Quote capability. Inc.Process Element: Process Inquiry & Quote Process Element Definition Process Element Number: D2.1 Receive and respond to general customer inquiries and requests for quotes. without reserving inventory. which can be converted into an order. without reserving inventory. 151 April 2003 .

customers) order entry capability Automatic Multi-level Credit Checking: Dollar Limits. shipments. fax. Cost Plus Pricing Automated Configuration Management EDI applications and integrated order management Flexibility Cost © Copyright 2003 Supply-Chain Council. Telemetry to automatically communicate replenishment of chemicals Remote (sales. EDLP. credit approval). Configure. On-line stock check and reservation of inventory Order entry is organized by customer segment Customers receive differentiated service based on volume of business Customer team is empowered to fully service customer requests.Process Element: Receive. confirmation.2 Receive orders from the customer and enter them into a company’s order processing system. “Technically” examine order to ensure an orderable configuration and provide accurate price. based on standard available parts or options. None Identified None Identified Integrated demand/deployment planning to customer location driven by POS. Days Sales Outstanding. and current inventory positions Continuous Replenishment Programs. use of hand-held terminals for direct order entry. Orders can be received through phone. Enter & Validate Order Process Element Definition Process Element Number: D2. Margin Testing Value Pricing based on “Cost to Serve”. Configure your product to the customer’s specific needs. Customer movement data None Identified Integrated Order/Financial Management Activity Based Costing. Vendor Managed Inventory. Inc. order status. Integrated Order Management by Customer by Line Item Configuration 152 April 2003 . Optionally accept payment. Check the customer’s credit. or through electronic media. Performance Attributes Metric Reliability Responsiveness Assets Perfect Order Fulfillment Customer Signature/Authorization to Order Receipt Time Order Receipt to Order Entry Complete Time Upside Order Flexibility Downside Order Flexibility Create Customer Order Costs Order Entry and Maintenance Costs None Identified Best Practices Features Electronic Commerce (customer visibility of stock availability. scheduled material receipts. customer credit history. including formal orders and ad hoc requests Customers have one point of contact for all products Enable real-time visibility into backlog.

3 153 April 2003 . Deliver Deliver ED.1 Plan Source Make Booked Order Optional Payment © Copyright 2003 Supply-Chain Council.1 ED.Inputs Plan Source Make Order Rules Configuration Rules Credit History Contract Terms Outputs ED. Inc.

1 P 154 S April 2003 .4 Outputs Plan Order Signal Order Backlog Inventory Availability/Delivery Date Replenishment Signal Available to Promise Date Inventory Status P2. P3. Inc. and a delivery date is committed and scheduled.4 P3. and resource optimization Integrated order management system that treats each order line as a separate order with integration to inventory source and status.1 P4.2 © Copyright 2003 Supply-Chain Council.1 Source Make Deliver M M D S2.Process Element: Reserve Resources & Determine Delivery Date Process Element Definition Process Element Number: D2. Real-time inventory management Integration with scheduling and inventory management Inputs Plan Sourcing Plans Production Plans Delivery Plans Product Availability Production Schedule P2.4 P4.1. cost.3 Inventory and/or planned capacity is identified and reserved for specific orders. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Delivery Performance To Customer Commit Date Order Receipt to Order Entry Complete Time None Identified Order Fulfillment Costs Capacity Utilization Best Practices Features Dynamic deployment based on constraint based planning and optimal scheduling Automatic reservation of inventory and dynamic sourcing of product for single shipment to customer ATP and Product Reservation Advanced planning and scheduling logic with constraint. Source Make Deliver S M2.1 P4.

carrier. Integrated load planning and building with warehouse management Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver © Copyright 2003 Supply-Chain Council. traffic lane. source. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified Order Entry Complete to Start Manufacture Time None Identified Distribution Costs None Identified Best Practices Features Consolidate orders by customer. 155 April 2003 .4 The process of analyzing orders to determine the groupings that result in least cost/best service fulfillment and transportation.Process Element: Consolidate Orders Process Element Definition Process Element Number: D2. etc. Inc.

etc.) CRP & VMI loads optimized for utilization Integrated inbound/outbound transportation planning Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver © Copyright 2003 Supply-Chain Council. Inc.Process Element: Plan & Build Loads Process Element Definition Process Element Number: D2. Same as above Integration with CRP/VMI vendor systems 156 April 2003 .e.5 Transportation modes are selected and efficient loads are built. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified Order Entry Complete to Start Manufacture Time Upside Shipment Flexibility Downside Shipment Flexibility Distribution Costs None Identified Best Practices Features Consolidation of inbound and outbound requirements Build load in stop sequence (i. 1st truck destination loaded last.

Process Element: Route Shipments Process Element Definition Process Element Number: D2. and location. Routing & Scheduling with Advanced Ship Notice (ASN) Transportation Modeling and Rate Analysis Route scheduling. carrier selection. Inc. and rating Consolidation of Carriers Carrier/Route Optimization based on continuous movement and consolidation/pooling Shipment tracking and tracing Inputs Satellite communications & GPS Plan Source Make Deliver Outputs Plan Source Make Deliver Scheduled Deliveries P Routing Guide Rated Carrier Data © Copyright 2003 Supply-Chain Council.6 Loads are consolidated and routed by mode. 157 April 2003 . lane. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified Order Entry Complete to Start Manufacture Time None Identified Distribution Costs None Identified Best Practices Features CRP/VMI Integrated Load Building.

Inc.Process Element: Select Carriers & Rate Shipments Process Element Definition Process Element Number: D2. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified Order Entry Complete to Start Manufacture Time None Identified Distribution Costs None Identified Best Practices Features Select carriers by least cost per shipment and rate using actual rates prior to release to billing Rules based carrier selection and actual rate database Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver © Copyright 2003 Supply-Chain Council. 158 April 2003 .7 Specific carriers are selected by lowest cost per route and shipments are rated and tendered.

stock locator.4 Deliver D 159 April 2003 . Deliver S2. recording the pick and delivering product to shipping performed in the distribution center in response to an order.1 M2. and time Dynamic location assignment including lot control. Performance Attributes Metric Reliability Cost Assets On Time In Full Documentation Complete Manufacture to Order Ready for Shipment Time Upside Shipment Flexibility Downside Shipment Flexibility Distribution Costs None Identified Best Practices Features Dynamic simulation of picking requirements optimized for labor. cost. zoned picking.8 The series of activities including retrieving orders to pick. verifying inventory availability. and rules based picking logic Inventory Availability Production Schedule Finished Product Release Outputs Source Make M2. picking the product.6 Plan Source Make Consolidated Product © Copyright 2003 Supply-Chain Council. building the pick wave. Inc. quality assurance Rules based picking logic and simulation Inputs Plan Responsiveness Flexibility Real time inventory control.Process Element: Pick Staged Product Process Element Definition Process Element Number: D2.

& Ship Product Process Element Definition Process Element Number: D2. and sending the product to the customer. customer. Inc. Performance Attributes Metric Reliability Cost Assets Delivery Performance to Customer Commit Date Delivery Performance to Customer Request Date Perfect Order Fulfillment Complete Manufacture to Order Ready for Shipment Time Order Ready for Shipment to Customer Receipt of Order Time Upside Shipment Flexibility Downside Shipment Flexibility Transportation Costs Field Finished Goods Inventory Days of Supply Best Practices Features Advanced Shipping Notices & UCC128 container labeling Integrated Credit Checking Bar coding. EDI.Process Element: Load Vehicle. Deliver 160 April 2003 Deliver . Verify Credit. generating the documentation necessary to meet internal. integrated transportation/warehouse management Interface to supplier’s shipping system to financials Inputs Plan Responsiveness Flexibility Source Make Consolidated Product Outputs D Plan Source Make Shipping Documents (Carrier) Delivered End Items (Customer) © Copyright 2003 Supply-Chain Council. and government needs.9 The series of tasks including placing product onto vehicles. Generate Shipping Documentation.

Inc. EDI.10 The process of receiving the shipment at the customer site and verifying that the order was shipped complete and that the product is of sufficient quality. integrated transportation/warehouse management None Identified Inputs Plan Source Make Advanced Ship Notice Outputs © Copyright 2003 Supply-Chain Council. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Perfect Order Fulfillment Customer Receipt of Order to Installation Complete Upside Delivery Flexibility Downside Delivery Flexibility None Identified None Identified Best Practices Features Advanced Shipping Notices & UCC128 container labeling Shipment Tracking Bar coding. Deliver D Plan 161 Source Make April 2003 Deliver .Process Element: Receive & Verify Product at Customer Site Process Element Definition Process Element Number: D2.

The product is fully functional upon completion. and between internal functions such as Field Service. testing and installing the product at the customer site. installation cycle time. etc. Inc. Manufacturing.11 When necessary. This would be effective between customer and supplier.Process Element: Test & Install Product Process Element Definition Process Element Number: D2. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Faultless Installations Customer Receipt of Order to Installation Complete Upside Installation Flexibility Downside Installation Flexibility Installation Costs Field Finished Goods Inventory Days of Supply Best Practices Features Joint Service Agreements to document acceptable service levels in terms of installation costs. the process of preparing. 162 April 2003 . Marketing and Order Management None Identified Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Installed Finished Product (Customer) © Copyright 2003 Supply-Chain Council.

12 A signal is sent to the financial organization that the order has been shipped and that the billing process should begin and payment be received or be closed out if payment has already been received. Inc.Process Element: Invoice & Receive Payment Process Element Definition Process Element Number: D2. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Faultless Invoices Deliver Cycle Time Upside Delivery Flexibility Downside Delivery Flexibility Customer Invoicing/Accounting Costs Days Sales Outstanding Best Practices Features Utilize EDI and EFT for payment to speed closing of receivables and to reduce processing costs Provide visibility to and quickly escalate delinquent accounts for resolution Electronic transfer of shipment information to finance EDI transaction and network services Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Integrated accounts receivables None Identified Payment © Copyright 2003 Supply-Chain Council. 163 April 2003 . Payment is received from the customer within the payment terms of the invoice.

7 From Source or Make Pick Staged Product • Consolidated Product (D) • Scheduled Installation (Customer) D3.1 April 2003 • Payment .4 D3. • • • • • Receive & Verify Product at Customer Site • RFQ/RFP • Approved contract • Optional Payment Obtain & Respond to RFP/RFQ • Completed proposal D3.2 Negotiate & Receive Contract Order Signal (P2.8 • Shipping Documents (Carrier) • Delivered End Items D3. Inc.1) D3.10 D3.3) Order Information (M3.5 Route Shipments & Select Carrier Plan and Build Loads and Shipments D3.4) Delivery Plans • (M3.6 D3.1) Resource Availability (P4.2) Production Schedule • (M3.1. P3. Commit Resources & Launch Program • Scheduled Deliveries (P) • (S3.3 Schedule Installation Enter Order. Verify Credit & Ship Product © Copyright 2003 Supply-Chain Council.2) Replenishment Signal (S3.1) Order Backlog (P4.D3: Deliver Engineer-to-Order Product • Routing Guide • Rated Carrier Data • (P2.9 Load Vehicle Generate Ship Docs.7) Product Release D3.11 Test and Install Product Invoice • Installed Product (Customer) 164 D3.4) Sourcing Plans • (P3.2) Production Schedule D3.4) Production Plans • (P4.6) Inventory Availability • (M3.

Process Category: Deliver Engineer-to-Order Product Process Category Definition Process Number: D3 The process of delivering a product that is designed. Design will begin only after the receipt and validation of a firm customer order. Performance Attributes Metric Reliability Cost Assets Delivery Performance to Customer Commit Date Delivery Performance to Customer Request Date Perfect Order Fulfillment Published Delivery Cycle Time Deliver Cycle Time Upside Delivery Flexibility Downside Delivery Flexibility Order Management Costs Finished Goods Inventory Days of Supply Best Practices Features None Identified None Identified Responsiveness Flexibility © Copyright 2003 Supply-Chain Council. 165 April 2003 . manufactured. and assembled from a bill of materials that includes one or more custom parts. Inc.

as needed None Identified Inputs Plan Source Make Deliver Plan Source Make Deliver None Identified RFQ/RFP Outputs Completed proposal © Copyright 2003 Supply-Chain Council.Process Element: Obtain and Respond to Request for Proposal (RFP) / Request for Quote (RFQ) Process Element Definition Process Element Number: D3. 166 April 2003 .1 The process of receiving a request for proposal or request for quote. developing costs estimates. establishing price). cost and manufacturing process Partnership with outside design firms to provide skills and capacity. Inc. and responding to the potential customer. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified None Identified None Identified Order Management Costs None Identified Best Practices Features Use of CAD/CAE applications to simulate design. evaluating the request (estimating the schedule.

Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified Customer Signature/Authorization to Order Receipt Time Upside Order Flexibility Downside Order Flexibility Create Customer Order Costs None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Approved contract Optional Payment © Copyright 2003 Supply-Chain Council. Optionally accept payment. Inc.2 The process of negotiating order details with customer (eg. product performance) and finalizing the contract. price. 167 April 2003 .Process Element: Negotiate & Receive Contract Process Element Definition Process Element Number: D3. schedule.

.4 Outputs Plan Order Signal Order Backlog Resource Availability Replenishment Signal Order Information P2. Inc. etc. Commit Resources & Launch Program Process Element Definition Process Element Number: D3. Source Make Deliver M3.3 M3.4 P3.Process Element: Enter Order.4 P4.1.1 168 April 2003 Deliver .1 P4. P3.2 © Copyright 2003 Supply-Chain Council. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified Order Receipt to Order Entry Complete Time Upside Order Flexibility Downside Order Flexibility Order Fulfillment Costs None Identified Best Practices Features None Identified None Identified Inputs Plan Sourcing Plans Production Plans Delivery Plans Production Schedule P2.3 The process of entering/finalizing the customers order.2 Source Make S3.) and officially launching the program. approving the planned resources (e.g. manufacturing. engineering.1 P4.

Inc. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified Order Entry Complete to Start Manufacture Time Upside Order Flexibility Downside Order Flexibility Order Fulfillment Costs None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Scheduled Installation (Customer) © Copyright 2003 Supply-Chain Council.Process Element: Schedule Installation Process Element Definition Process Element Number: D3.4 The process of evaluating the design and build schedules relative to customer requested installation date to determine installation schedule. 169 April 2003 .

170 April 2003 .Process Element: Plan & Build Loads and Shipments Process Element Number: D3.5 Process Element Definition The process of scheduling simultaneous and/or consolidated shipments. and planning and building loads. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified Order Entry Complete Time to Order Ready for Shipment Upside Shipment Flexibility Downside Shipment Flexibility Distribution Costs None Identified Best Practices Features Consolidation of inbound and outbound requirements Integrated inbound/outbound transportation planning Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Scheduled Deliveries P © Copyright 2003 Supply-Chain Council. Inc.

Process Element: Route Shipments & Select Carriers Process Element Definition Process Element Number: D3. and location. and rating Consolidation of Carriers Carrier/Route Optimization based on continuous movement and consolidation/pooling Shipment tracking and tracing Select carriers by least cost per shipment and rate using actual rates prior to release to billing Inputs Satellite communications & GPS Rules based carrier selection and actual rate database Plan Source Make Deliver Plan Source Make Deliver Routing Guide Rated Carrier Data Outputs © Copyright 2003 Supply-Chain Council.6 The process of consolidating and routing shipments by mode. 171 April 2003 . lane. Routing & Scheduling with Advanced Ship Notice (ASN) Transportation Modeling and Rate Analysis Route scheduling. carrier selection. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified Order Entry Complete Time to Order Ready for Shipment None Identified Distribution Costs None Identified Best Practices Features CRP/VMI Integrated Load Building. Carriers are selected and shipments are rated. Inc.

and time Dynamic location assignment including lot control. cost. recording the pick and delivering product to shipping performed in the distribution center in response to an order.7 Plan Source Make Consolidated Product © Copyright 2003 Supply-Chain Council. quality assurance Rules based picking logic and simulation Inputs Plan Real time inventory control.2 M3.7 The series of activities including retrieving orders to pick. stock locator. picking the product. Inc. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified Order Entry Complete Time to Order Ready for Shipment Time Upside Shipment Flexibility Downside Shipment Flexibility Distribution Costs Finished Goods Inventory Days of Supply Best Practices Features Dynamic simulation of picking requirements optimized for labor. zoned picking. building the pick wave.Process Element: Pick Staged Product Process Element Definition Process Element Number: D3.6 Deliver D 172 April 2003 . Deliver S3. and rules based picking logic Inventory Availability Production Schedule Product Release Outputs Source Make M3. verifying inventory availability.

customer. EDI.Process Element: Load Vehicle.8 The series of tasks including placing product onto vehicles. integrated transportation/warehouse management Interface to supplier’s shipping system to financials Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Responsiveness Flexibility Shipping Documents (Carrier) Delivered End Items © Copyright 2003 Supply-Chain Council. Verify Credit & Ship Product Process Element Definition Process Element Number: D3. generating the documentation necessary to meet internal. Inc. 173 April 2003 . Performance Attributes Metric Reliability Cost Assets Delivery Performance to Customer Commit Date Delivery Performance to Customer Request Date Perfect Order Fulfillment Order Ready for Shipment to Customer Receipt of Order Upside Shipment Flexibility Downside Shipment Flexibility Transportation Costs Finished Goods Inventory Days of Supply Best Practices Features Advanced Shipping Notices & UCC128 container labeling Integrated Credit Checking Bar coding. Generate Shipping Documentation. and sending the product to the customer. and government needs.

Inc.9 The process of receiving the shipment at the customer site and verifying that the order was shipped complete and that the product is of sufficient quality.Process Element: Receive & Verify Product at Customer Site Process Element Definition Process Element Number: D3. EDI. integrated transportation/warehouse management None Identified Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver © Copyright 2003 Supply-Chain Council. 174 April 2003 . Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Perfect Order Fulfillment Customer Receipt of Order to Installation Complete Upside Delivery Flexibility Downside Delivery Flexibility None Identified None Identified Best Practices Features Advanced Shipping Notices & UCC128 container labeling Shipment Tracking Bar coding.

Process Element: Test & Install Product Process Element Definition Process Element Number: D3. Inc. 175 April 2003 . testing and installing the product at the customer site.10 The process of preparing. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Faultless Installations Customer Receipt of Order to Installation Complete Upside Installation Flexibility Downside Installation Flexibility Installation Costs Field Finished Goods Inventory Days of Supply Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Installed Finished Product (Customer) © Copyright 2003 Supply-Chain Council. The product is fully functional upon completion.

176 April 2003 .Process Element: Invoice & Receive Payment Process Element Definition Process Element Number: D3. Payment is received from the customer within the payment terms of the invoice. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Of Faultless Invoices None Identified Upside Delivery Flexibility Downside Delivery Flexibility Customer Invoicing/Accounting Costs Days Sales Outstanding Best Practices Features Utilize EDI and EFT for payment to speed closing of receivables and to reduce processing costs Provide visibility to and quickly escalate delinquent accounts for resolution Electronic transfer of shipment information to finance EDI transaction and network services Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver Integrated accounts receivables None Identified Payment © Copyright 2003 Supply-Chain Council. Inc.11 A signal is sent to the financial organization that the order has been shipped and that the billing process should begin and payment be received or be closed out if payment has already been received.

2 D4.3) Loaded Cart • Plan-o-gram Data • Vendor merchandising / coop advertising agreements D4.2) Item Pick Sheet from Stocking Schedule • Inventory in Stock • Inventory available to ship • ATP • On-Order/backorder • Replenishment quantities • (D4.7 Deliver and/or Install • Successful installation/ “live” system • Low rates of failure • Consistently high adoption rates • High customer service and satisfaction levels April 2003 . etc.1) Stocking Schedule • (S1.4 Receive Product at the Store Pick Product from Backroom Stock Shelf • Inventory Availability (D4.4) • Assorted by shelf order • • • • • (D4.1 Generate Stocking Schedule • Stocking Schedule (D4.1) Production Schedule • (M1.5 D4.6) Finished Product Release • (P4.) 177 • Full Shelf Locations (D4.4.4) Daily Replenishment Requirements • Resource Availability • On-demand Replenishment Requirements • Vendor/DC inventory availability • Shipping schedules (internal or 3PL) D4.5) Full Cart • Customer profile/data • Promotion/event calendar D4.4) Promotional Plan Merchandising Plan (D4.3) • Loaded Cart or Pallet (D4.4) Inventory Availability • (M1.D4: Deliver Retail Product • (S1.5) D4. higher average ring.4) Stocked Shelf Lost or dropped shopping carts • Product data (linked/related SKU’s) • Customer data (preference) • (D4. Inc. • • • • • Provide product or service training to employees or FAQ’s online • Stage product or service adoption • Goals / performance plans • Measurement.3 D4. D4.4) Stocking Requirements • (S1.1) Scheduled Receipts • (S1.6) © Copyright 2003 Supply-Chain Council.6 Fill Shopping Cart Checkout • Full Cart Ready for Checkout (D4. monitoring and adjustment of service or product installation Full Cart (Empty Cart) Satisfied Customer Customer loyalty / recurring visits Loyalty customer profile changes (more units.

Merchandising at a store level is the stocking and restocking of products in designated storage locations to generate sales in a retail store. and sell finished goods at a retail store. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Shelf Stock Out % Replenishment Accuracy Replenishment Timeliness Shelf Space To Market Share Ratio Replenishment Lead Times Service Levels / Accuracy Retail Store Cost Days of Stock in Retail Best Practices Features None Identified None Identified © Copyright 2003 Supply-Chain Council. A retail store is a physical location that sells products (and services) direct to the consumer using a point of sale process (manual or automated) to collect payment. Inc.Process Category: Deliver Retail Product Process Category Definition Process Number: D4 Deliver Retail Products are the processes used to acquire. merchandise. 178 April 2003 .

4 179 April 2003 . D4. Inc.1 The process of scheduling resources to support item-stocking requirements. picked from back room Workforce management solution with flexible rules Inputs Plan Stocking Requirements Daily Replenishment Requirements Resource Availability On-demand Replenishment Requirements Vendor/DC inventory availability Shipping schedules (internal or 3PL) P4.4 Source Stocking Schedule © Copyright 2003 Supply-Chain Council.Process Element: Generate Stocking Schedule Process Element Definition Process Element Number: D4. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets None Identified Number of restocking events per day Cost efficiency/elasticity of shipping schedules Items stocked per FTE Accuracy of stocking None Identified Best Practices Features Automated pick list Push product on trailer arrival Labor scheduling that matches product flow System generated pick-lists based on picking / batching rules System prioritization of items coming off trucks vs.4 Outputs Plan Source Make Deliver Make Deliver S1.

putting away and recording location that a company performs at its own stores.4 Deliver D4.2 The activities such as receiving product. Performance Attributes Metric Reliability Responsiveness Assets None Identified Dock To Stock Cycle Time Number of restocking events per day Cost efficiency/elasticity of shipping schedules Items stocked per FTE Accuracy of stocking None Identified Best Practices Features Automated pick list Push product on trailer arrival Labor scheduling that matches product flow System generated pick-lists based on picking / batching rules System prioritization of items coming off trucks vs. determining put-away location.Process Element: Receive Product at the Store Process Element Definition Process Element Number: D4.1 S1. Inc.6 Plan Source Make Inventory Availability © Copyright 2003 Supply-Chain Council.1 M1. Deliver S1. verifying. recording product receipt. picked from back room Workforce management solution with flexible rules Inputs Plan Flexibility Cost Scheduled Receipts Inventory Availability Production Schedule Finished Product Release Outputs Source Make M1.3 180 April 2003 . May include quality inspection.

Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Inventory inaccuracies during pick-process Time to Pick Minimum Stock Levels None Identified Labor $ per unit—Direct Product Cost (DPC) None Identified Best Practices Features Automated directed picking A pick list displayed on a handheld device that directs picks and relieves inventory from backroom locations Items are staged for re-stocking based on zones within the store.Process Element: Pick Product from Backroom Process Element Definition Process Element Number: D4. Inc. building a pick wave. picking item and quantity from a designated backroom warehouse location. recording the resulting inventory transaction. This minimizes restocking effort.4 181 April 2003 .2 Plan Source Make Loaded Cart or Pallet Assorted by Shelf Order © Copyright 2003 Supply-Chain Council. Deliver Deliver D4. Staging based on in-store zones Automated Replenishment of back stock based on min-stocking levels Defined stocking levels & criteria Inputs Plan Source Make Item Pick Sheet from Stocking Schedule Inventory in Stock Inventory available to ship ATP On-Order/backorder Replenishment Quantities Outputs D4.3 The process of retrieving restocking orders to pick. determining inventory availability. and delivering the product to point of stock.

Performance Attributes Metric Reliability Assets Requirements fill % In-stock % Stocking Cycle Time None Identified Put-a-way Labor Cost – Includes internal and/or external contract costs In Store Inventory Accuracy Best Practices Features Stocking is completed in zones Each area of the store has its own stocking plan and items are routed specifically to that area The majority of stocking is completed with minimal impact to or visibility from the customer Scan store shelves / bar codes to confirm put-a-way Same as above—scan using handheld and match with ad Responsiveness Flexibility Cost Off peak stocking Item/shelf scanning upon put-a-way Proof of performance (promotion management) Scan displays for promo conformance Inputs Plan Stocking Schedule Loaded Cart Plan-o-gram Data Vendor merchandising / co-op advertising agreements Outputs Source Make D4. stock placement. Deliver Deliver D4. For promotional items and stock repositioning the tasks associated with shelf and point of sale preparation. Inc.4 Plan Source Make Full Shelf Locations © Copyright 2003 Supply-Chain Council.Process Element: Stock Shelf Process Element Definition Process Element Number: D4. the tasks associated with identifying the item location. stocking the shelf according to merchandise plans.1 D4.4 For restocks. and recording the appropriate inventory transaction.5 182 April 2003 . and end of sale activities.3 S1.

4 Plan Source Make Full Cart Ready for Checkout © Copyright 2003 Supply-Chain Council. Deliver Deliver D4.5 Typical set of tasks associated with product selection.6 183 April 2003 .Process Element: Fill Shopping Cart Process Element Definition Process Element Number: D4. period ago. and/or substitution Planned and tracked via a plan-o-gram system. etc. cross-sell. Plan Source Make Promotional Plan Merchandising Plan Stocked Shelf – or “full shelf locations?” Lost or dropped shopping carts Product data (linked/related SKU’s) Customer data (preference) Outputs D4. Location specific product labeling DSS or portal tool that shows previous period performance and comparison for store management Measured and compared with same activity previous period (whether it is year ago. storage and movement through to checkout.) Loyalty card data Inputs Use for comparison to previous sales activity/track new consumers. etc. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Item Location Accuracy None Identified Rain check % % Shrinkage None Identified Best Practices Features Items are relieved from inventory when item is removed from shelf Up & cross selling Substitution Multiple locations throughout store RFID. smart cart or customer self-service reduces system inventory upon item pick Trained staff or automated systems (Internet) that recommend up-sell. Inc.

Process Element: Checkout Process Element Definition Process Element Number: D4. method of payment. higher average ring.% sales None Identified Best Practices Features Automatic customer payment RFID. smart cart or customer self-service charges goods to card upon store departure Customer profile drives recognition upon checkout Notification of existing/future events or promotions Inputs Plan Source Make Full Cart Customer profile/data Promotion/event calendar Outputs D4. Inc. and/or invoice or receipt. order confirmation.5 Plan Source Make Full Cart (Empty Cart) Satisfied Customer Customer loyalty / recurring visits Loyalty customer profile changes (more units.) © Copyright 2003 Supply-Chain Council. credit application and approval. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Price checks per cashier shift None Identified None Identified Checkout labor . etc. Deliver 184 April 2003 Deliver . service agreement.6 The processes and tasks associated with product checkout including scanning.

Inc. 185 April 2003 .Process Element: Deliver and/or Install Process Element Definition Process Element Number: D4. monitoring and adjustment of service or product installation None Identified Inputs Plan Source Make Deliver Outputs Plan Source Make Deliver None Identified None Identified None Identified Successful installation / “live” system Low rates of failure Consistently high adoption rates High customer service and satisfaction levels © Copyright 2003 Supply-Chain Council.7 The process of preparing and installing the product at the customer site. The product is fully functional upon completion. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets % Accuracy or Failure Rates Service levels None Identified Adoption rates None Identified None Identified Best Practices Features Provide product or service training to employees or FAQ’s online Stage product or service adoption Goals / performance plans Measurement.

4) Supply Chain Performance Metrics • (P.2. Purchase History. ED. Approved Item Master • (ED.4 ED. ED. D3. D2.4. Credit History.5) • Customer Service Requirements (P.4) 186 • (P) Inventory Rules.4) Inventory Rules • (ED.2. ED.8) Scrap Authorizations • (ED. Shipping Preferences ED.8) Returns Data • (D1.1) Customer Address Data.5) • Configuration Rules (D2.1) Order Rules ED. D2.4.2 Assess Delivery Performance • Management Process Reports (ED. ED.2) Management Proc es s Reports • (ED.5) Delivery Performance • (ED. • (D1.1) Order Rules • (P) Budgets.2) • Benchmark Data • (ED. ED.2) • Warehouse Operating Constraints (P) • Delivery Performance (ED. D2.2.5 Manage Deliver Capital Assets Manage Finished Product Inventories • Inventory Target Levels (P) • Inventory Rules (ED. D3. ED.2. Inc.6) © Copyright 2003 Supply-Chain Council.1. ED.2) Customer Orders • (S) Customer Carrier Contracts ED.1) • Supply Chain Performance Metrics (P. ED. ED.2.5) • Supply Chain Performance Metrics (P.5) • Delivery Performance (ED.3 Manage Deliver Information • Customer Master Database/ Up to Date (ED.ED: Enable Deliver • (ED. ED.6) Supply Chain Performance Metrics • (P) Planning Decision Policies • Configuration Rules ED.1.2. Product Mix and Plans.8) Returns Data • (ED. ED.2.3) Customer Master Database • (ED.1 Manage Deliver Business Rules • Order Rules (D1.2. ED.8) Existing Inventory Data • (ED. Contract Status. D3.2) April 2003 .4. Integrated Supply Chain Plan • (D1.2.

D2. ED.7) • Duty Drawback Claims April 2003 .ED: Enable Deliver • Air. D3.2.9.4) Receipt History • Tariffs & Duties ED. D3. D3. D2.2. Ground… Carrier Rate Tables • (ED.2. Weight & Freight Class • (P) Product Mix and Plans.2) Customer Order Size.2) Location of Customers ED.10.6 ED. D2. S2. Budgets.9. ED. S3.2.8) • Supply Chain Performance Metrics (P.7 Manage Product Life Cycle Manage Transportation • Shipping Parameters & Documentation (D1. Source of Products • (D1. D2.10. Inc.2. D3.2) Customer Service Requirements • (P) Standard Practices/Rules • (S) Contract Carrier Rates • Projected Delivery Requirements (M) • (D1. 187 • Government Regulations • (D1. D2. Revised Business Assumptions.8) • Government Constraints (P.2.8 Manage Import/Export Requirements • Shipping Export Parameters & Documentation (D1.8) Shipping History • (S1.1) • Enterprise Distribution Model (P) © Copyright 2003 Supply-Chain Council. D3.9.10.

2.2. ED. D3. ED.Enable Process: Manage Deliver Business Rules Enable Process Definition Process Number: ED.2 Configuration Rules © Copyright 2003 Supply-Chain Council.2 ED. based on quantity. method of delivery. D2.2. etc. ED.4. Inc.5 D2. Deliver 188 April 2003 . ED. credit. (Include distribution channel rules) Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets # Orders requiring intervention due to rule violation Rule implementation time None identified Rule management cost Cost of non-conformance None Identified Best Practices Features Integrated edit at order entry time On-line rule base Customer Master Record None Identified Inputs Plan Source Make Management Process Reports Supply Chain Performance Metrics ED.1 The process of defining and maintaining rules which affect the acceptance of an order.6 Planning Decision Policies Configuration Rules P Outputs Plan Source Make Order Rules Deliver D1.2.4. customer experience.

2 Customer Carrier Contracts S Outputs Plan Management Process Reports Supply Chain Performance Metrics Customer Service Requirements P P © Copyright 2003 Supply-Chain Council.1. Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Perfect Order fulfillment for the provider None Identified None Identified Administration cost ($ as % of Delivery $) Transportation Assets Best Practices Features Real time package tracking Customer initiated package tracking Tracking and tracing WEB based Shared systems Inputs Plan Source Make Benchmark Data Delivery Performance Returns Data Customer Orders ED.2 The process of defining the requirement and monitoring the performance of the delivery of product to a customer. Inc. When physical delivery is out-sourced the performance is passed on to source for contract administration.2.8 D1. D3.5 ED.4. Deliver 189 Source Make Deliver ED.5 ED. ED.2.6 April 2003 . D2.1 ED. ED.Enable Process: Access Delivery Performance Enable Process Definition Process Number: ED.

(customer preference. and communicating information to support deliver planning and execution processes. status. claims. warehouse data. transportation data. Credit History. Deliver Deliver ED. D3.3 The process of collecting. Customer Service data validation including geo-coding Inputs None Identified None Identified Plan Source Make Customer Address Data.).1 Plan Source Make Customer Master Database . and delivery requirements. etc. D2. Contract Status. history. Shipping Preferences Outputs D1. Inc. and deliver data.#days since last effective use Ratio of active customer data/Inactive customer data Time to update customer records and status None Identified Cost of acquisition % of distribution cost Cost of Capital Systems or 3rd Party services None Identified Best Practices Features Provide single source of information on the customer (Single group / owner responsible for accuracy / quality of customer data) Online real-time customer entry and edit Secure E-Commerce Server and integrated Order Management System (OMS) Warehouse Management System (WMS) and Transportation Management System (TMS) On-line Customer Service Module CRM (Customer resource Management) software is getting a big push in the ECommerce/E-Business areas and generally provides a means to fulfill this requirement Internet-enabled package/shipment tracking Responsiveness Flexibility Cost Customer access to online tracking of order status and shipping information Comprehensive history of customer interactions including order history. maintaining.2.2. etc. The information to be managed includes: order data .Enable Process: Manage Deliver Information Enable Process Definition Process Number: ED.4 190 April 2003 . problems.Up to Date © Copyright 2003 Supply-Chain Council. Purchase History. Performance Attributes Metric Reliability Assets Age of data .

Inputs Plan Inventory Rules. Product Mix and Plans. Integrated Supply Chain Plan Existing Inventory Data Returns Data Scrap Authorizations Customer Master Database Order Rules P Outputs Plan Inventory Target Levels Inventory Rules Supply Chain Performance Metrics P © Copyright 2003 Supply-Chain Council. inventory limits or levels.Enable Process: Manage Finished Goods Inventories Enable Process Definition Process Number: ED. product mix.5 ED.4 The process of establishing and maintaining finished goods.1.8 ED.5 P 191 Deliver April 2003 . Cycle Counting Real time view of data. stocking locations Performance Attributes Metric Reliability Responsiveness Flexibility Cost Assets Fill Rate (% filled of an order) None Identified None Identified Inventory carrying cost $ Days of inventory Inventory Days of Supply Best Practices Features Periodic review of metrics and strategy with comparisons to industry benchmarks Real time data on current status. Dynamic calculation of safety stock based on actual sales None Identified Source Make Deliver D1.8 ED.3 ED.1 Source Make ED. replenishment models. Inc. ED. ownership.8 ED.

2 192 April 2003 . Determine material handling (inventory) pick pack & ship methods (inventory).1 P Source Make Deliver ED.5 Acquisition. warehouse and transportation capital assets.Enable Process: Manage Deliver Capital Assets Enable Process Definition Process Number: ED.4 ED. Source Make Deliver ED. ED. Performance Attribute Metric Reliability Assets % Perfect customer order delivery % Capacity Utilization % Obsolete or inactive inventory Inventory Accuracy by location (% Items whose physical count and location matched system’s count and location) % Damaged products receipts and % damaged customer shipments None Identified None Identified Warehouse Distribution Cost Inventory Carrying Cost Cost of Obsolete Inventory Cost of Damaged Inventory Inventory turns per year Best Practices Features Standard Operating Procedures and Methodology Measure Customer Service Real-time System Directed Task Scheduling and Management Responsiveness Flexibility Cost Cycle Counting Removal of Obsolete Stock Storage Location Zoning Facility Master Plan Automated Data Entry Advanced Shipping Notices (ASN) Parcel and Container Routing and Rating Compliance Labeling Real time shipment tracking WMS-real time inventory tracking Automated Calculation of ABC Velocity Movement Automated or Optimized Slotting (Storage Location) Systems Automated Item Cubing and Weighting systems Scanning with RFID/Bar-codes systems Inputs Plan Budgets. maintenance.2. and equipment.4 ED. Inc. and disposition of order management. Approved Item Master Supply Chain Performance Metrics Inventory Rules Order Rules P Outputs Plan Warehouse Operating Constraints Delivery Performance P © Copyright 2003 Supply-Chain Council.

Ground Parcel. route. Inc.6 The process of 1) defining and maintaining the information which characterizes product. (via Internet) Electronic Manifest and Electronic Billing Automated Documentation for International Shipments Manage Information across 100% of shipments Capture and maintain mode specific data Internet Pooling (Electronic brokerage of shipments Backhaul trading exchange Transportation Management System (TMS) Maintenance Management © Copyright 2003 Supply-Chain Council. etc. terminals. LTL.Enable Process: Manage Transportation Enable Process Definition Process Number: ED. Product. vehicle. rates) are updated. Rating & Routing Pooling 193 April 2003 . Warehouse Management and Transportation Management Systems View for analysis for all orders and shipments the following data: Logistics. rates/tariffs and backhaul opportunity (Characterization include information necessary to support maintenance of internal Outbound Transportation equipment – CAPITAL ASSETS) and 2) the management of transporters. Performance Attributes Metric Reliability Frequency of parameter updates Number of data sources for data collection Speed at which parameters (eg. Cost. Dock-to-Dock times (lane specific) None Identified Data maintenance costs Empty-to-loaded backhaul mile index Equipment utilization rates (hours) Equipment utilization rates (product contribution margin) Vehicle maintenance costs Responsiveness Flexibility Cost Assets Best Practices Features Integrated Order Management. containerization. regulations.) Based on Customer Service Requirements Real-time Shipment Tracking. GL Charging Appointment Scheduling for Pickup and Delivery of Customer Shipments Measurement of Carrier Performance for Ontime Delivery and Completeness Real-time Optimized Shipment Method Selection (Air Parcel.

2 Projected Delivery Requirements Outputs Make D1.2.. Deliver ED. Inc. Ground.2.8 ED.. Weight & Freight Class P Source S D1. D2.2 M Plan Source Make Shipping Parameters & Documentation Supply Chain Performance Metrics © Copyright 2003 Supply-Chain Council. Carrier Rate Tables Customer Service Requirements Standard Practices/Rules Contract Carrier Rates Customer Order Size. D3.1 P 194 Deliver April 2003 .10.9. D2. D3.Inputs Plan Air.

) Cost to maintain the fixed assets for the distribution network Distribution capital cost Best Practices Features Integrated Facility Management Operations and Network Analysis Standard Operating Procedures and Methodology None Identified None Identified None Identified Inputs Plan Product Mix and Plans. #Customer orders. Performance Attributes Metric Reliability Assets Total distribution cost as a % of revenue Frequency of analysis (monthly.7 The process of defining and maintaining the distribution channel/ network for a specific product line (no capital asset or transportation management). Source of Products Location of Customers P Outputs Plan Enterprise Distribution Model P Responsiveness Flexibility Cost © Copyright 2003 Supply-Chain Council. etc.2. D2.2 195 Source Make April 2003 Deliver . Source Make Deliver D1. Budgets.Enable Process: Manage Product Life Cycle Enable Process Definition Process Number: ED.2. 5 year planning cycle) None Identified None Identified Acquisition cost for operational systems (# SKU. annual. Revised Business Assumptions. Inc. D3.

Inc.10. D3.2.8 ED.Enable Process: Manage Export/Import Requirements Enable Process Definition Process Number: ED. Direct connection to customs clearance Direct Transfer of documents to Recipient and Forwarder Assessing export/import requirements during time of product development/manufacture Ability to track component/sub-component manufacturing country of origin Inputs Multi-country Export/Import documentation compliance Electronic documentation submission via EDI and/or Internet None Identified Component/lot tracking (lot trace-ability) Plan Source Make Government Regulations Shipping History Deliver D1.7 P 196 Deliver April 2003 .8 The process of recording and maintaining regulations and rates. D2.2. D1. which constrain the ordering and delivering of product. D3.8 Receipt History S1. S2.10.9. S3.4 Tariffs & Duties Outputs Plan Source Make Shipping Export Parameters & Documentation Government Constraints Duty Drawback Claims © Copyright 2003 Supply-Chain Council.9. Performance Attributes Metric Reliability Assets Compliance with multi-country government regulations1 Minimized delays in-transit caused by customs intervention2 Customs clearance cycle time Export shipment processing time None Identified Duty tax control Cost of compliance None Identified Best Practices Features Responsiveness Flexibility Cost Documents generated automatically during shipment preparation. D2.

RETURN © Copyright 2003 Supply-Chain Council. 197 April 2003 . Inc.

R1: Return Defective Product Source Return • Asset Recovery Resource Deliver Return • Product Specifications Quality Test • Defective Product Shipment • Warranty Claim • Return Policy • Product Recall Notice • Fault Isolation • Ship To Data • Return Policy DR1.3 SR1.2 Request Return Replacement or Credit DR1.6 SR1.5 DR1. 198 April 2003 .1 Authorize Return • Receipt Transaction • Return Shipment • Return Product Authorization • Product Replacement Data © Copyright 2003 Supply-Chain Council. Inc.7 Authorize Replacement or Credit Disposition Defective Product Verify Defective Product • Disposition Record Receive Defective Product Schedule Product Return DR1.4 SR1.

199 April 2003 . Inc. product recall. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified Warranty Cost Days of Return Inventory Best Practices Features Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return © Copyright 2003 Supply-Chain Council.Process Category: Return Defective Product Process Category Definition Process Number: R1 The return and disposition of defective products as defined by the warranty claims. nonconforming product and/or other similar policies including appropriate replacement.

Inc. approving. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified Receiving &Product storage cost as a % of Product Return Costs Create Return Product Authorization Costs Value of return products Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Plan Source Make Deliver Return Warranty Claim Return Policy Product Recall Notice Fault Isolation Outputs Return Product Authorization Product Replacement Data © Copyright 2003 Supply-Chain Council. 200 April 2003 . warranty claims.Process Element: Authorize Return Process Element Definition Process Element Number: DR1. product recalls and non-conforming product including the processing of product replacement data and/or other similar policies including appropriate replacement.1 The process of validating. recording.

2 The process and actions required determining return replacement or credit.Process Element: Request Return Replacement or Credit Process Element Definition Process Element Number: DR1. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return © Copyright 2003 Supply-Chain Council. 201 April 2003 . Inc.

Process Element: Schedule Defective Product Return Process Element Definition Process Element Number: DR1. product recall and non-conforming product. 202 April 2003 . Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified Return Product Management and Planning Costs as a % of Product Return Costs Return Product Days of Supply (DOS) Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Plan Source Make Deliver Return Ship to Data Return Policy Outputs Return Shipment © Copyright 2003 Supply-Chain Council.3 The process of scheduling and managing the execution of the individual return deliveries of product against an existing warranty claim. and/or other similar policies including appropriate replacement. Inc.

4 The process of receiving and recording a defective product against a warranty claim and/or other similar policies including appropriate replacement. 203 April 2003 . Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified Order Management Costs to Return Product into the Supply Chain Warranty Costs None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Plan Source Make Deliver Return Defective Product Shipment Outputs Receipt Transaction © Copyright 2003 Supply-Chain Council.Process Element: Receive Defective Product Process Element Definition Process Element Number: DR1. Inc.

Process Element: Verify Defective Product Process Element Definition Process Element Number: SR1. Performance Attributes Metric Reliability Responsiveness Flexibility None Identified None Identified None Identified Costs Assets Verification Costs as a % of Product Return Costs None Identified Best Practices Features Product Specifications Quality Test Procedures None Identified None Identified Inputs Plan Source Make Deliver Return Plan Source Make Deliver Return Product Specifications Quality Test Outputs Disposition Record © Copyright 2003 Supply-Chain Council. Inc.5 The process and actions required determining the cause of defective product conformance to requirements and recording disposition profile. 204 April 2003 .

205 April 2003 . Inc. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified Total production employment Value added productivity Warranty Costs Disposal Costs Capacity utilization Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Plan Source Make Deliver Return Asset Recovery Resource Outputs Asset Disposition Record © Copyright 2003 Supply-Chain Council.Process Element: Disposition Defective Product Process Element Definition Process Element Number: SR1.6 The process and actions required to bring the defective product back to operational and specifications.

206 April 2003 .7 The process and actions required to authorize deliver of replacement product or credit to customer Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return © Copyright 2003 Supply-Chain Council. Inc.Process Element: Authorize Replacement Or Credit Process Element Definition Process Element Number: SR1.

3) Credit/ Exchange Options • (SR2.8) Warranty Data SR2.3) • Return Product Location (ER.4) • Scheduled MRO Return © Copyright 2003 Supply-Chain Council.1 Disposition MRO Product Identify MRO Product Condition • MRO Return Authoriza tion Request (DR2.SR2: Source Return MRO Product • (ER. government) • Returned MRO Product (DR2.3 Request MRO Return Authorization • Validated Return Material Authorization • MRO Disposition Request (DR2. DR2.5 SR2.2) Return Schedule Instructions SR2.1) April 2003 .4 Return MRO Product Schedule MRO Shipment • Shipment Documents (carrier.1) Ship-to Data SR2.1) Manage Business Rules • (ER.1) • Credit/ Exchange Options (SR2.4) • Inventory Control (ER.1) MRO Return Authorizati on Response • (DR2.2 SR2. customer.4) • Ship-to data (SR2.4) 207 • (ER. • (DR2.4) MRO Item Availability • (SR2.3.8) Manage Regulatory Return Policy • (ER. Inc.

Scheduling Rules.Process Category: Source Return MRO Product Process Category Definition Process Number: SR2 The process. and physically returning or disposing of the product. Inc. communicating with the service provider. Performance Attributes Metric Reliability Responsiveness Flexibility % of MRO Source Returns Processed Correct Total Source Return cycle time Cycle Time And Cost To Implement New Or Modify Existing Return Criteria. 208 April 2003 . of returning maintenance. repair. Delivering Or Transferring Rules Total Source Return Costs Value of Unserviceable MRO Inventory/ Total MRO Inventory Value Costs Assets Best Practices Features None Identified None Identified © Copyright 2003 Supply-Chain Council. initiated by the customer. generating return documentation. Process includes: customer identification that an action is required and determining what that action should be. and overhaul items to a service provider.

overhaul or disposal. Inc. Includes operating failures and planned maintenance requirements. Source 209 Make Deliver April 2003 Return .8 ER. Performance Attributes Metric Reliability Total Number Of Confirmed MRO Conditions / Total Number of MRO Service Requests Initiated Cycle Time From Problem Identification To Condition Confirmation Cycle Time To Change Condition Criteria Cost of Identifying the MRO Condition as a % of Total Source Return Cost Value of Unserviceable MRO Inventory In Identification Stage/ Total MRO Inventory Value Responsiveness Flexibility Costs Assets Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Manage Business Rules Manage Regulatory Return Policy Warranty Data Outputs Return ER. business rules and product operating conditions as criteria to identify and confirm that an item requires maintenance.1 The process where the customer utilizes pre-determined MRO policies.Process Element: Identify MRO Product Condition Process Element Definition Process Number: SR2.8 Plan © Copyright 2003 Supply-Chain Council. repair.1 ER.

Outputs include a decision to: (1) send a return authorization request to a service provider. or (3) discard the item. Performance Attributes Metric Reliability Responsiveness % Identified MRO Products Returned To Service Cycle Time To: Reach Return Authorization. what service is required.2 The process of the customer determining whether to service the item. and who the appropriate service provider would be to service the item. Return To Service Or Discard Decision Time and Cost Related To Expediting The Disposition Time and Cost Related To Responding To An Increase In Disposition Demand MRO Disposition Costs As % Total Source Return Cost Value of Unserviceable MRO Inventory In Disposition Stage/ Total MRO Inventory Value (Inventory Awaiting Disposition) Flexibility Costs Assets Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return © Copyright 2003 Supply-Chain Council. 210 April 2003 . Inc.Process Element: Disposition MRO Product Process Element Definition Process Number: SR2. (2) send the product back into service without requiring a return authorization request.

Process Element: Request MRO Return Authorization Process Element Definition Process Number: SR2. transportation and import / export requirements to facilitate the efficient return of the MRO product to the service provider. from a service provider.1 DR2.4 ER.1 DR2. The customer may need to go through several return authorization iterations with multiple service providers before authorization is received. In addition to discussing the MRO issue.1 SR2.2 Plan Source Make Deliver MRO Return Authorization Request Validated Return Material Authorization MRO Disposition Request Credit/ Exchange Options Ship-to data Inventory Control © Copyright 2003 Supply-Chain Council. packaging. Return DR2. the customer and service provider would discuss enabling conditions such as return replacement or credit. Inc. Performance Attributes Metric Reliability % Authorization Requests Transmitted Error-Free / Total Authorizations Requested Cycle Time From The Customer Identifying The Need For A Return Authorization To The Authorization’s Receipt By The Service Provider Cycle Time To Incorporate Changes In Return Authorization Processing Cost per Request Authorization Ratio of Authorization Cost To Total Source Return Cost Value of Unserviceable MRO Inventory In Request Return Authorization Stage/ Total MRO Inventory Value (Inventory Awaiting Return Authorization) Responsiveness Flexibility Costs Assets Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver MRO Return Authorization Response Return Schedule Instructions Outputs Return DR2.4 SR2. handling. for the return of an MRO product.3 The process of a customer requesting and obtaining authorization.4 211 April 2003 .

Activities include selecting the carrier and rates.Process Element: Schedule MRO Shipment Process Element Definition Process Number: SR2.4 The process where the customer develops the schedule for a carrier to pick-up and deliver the MRO product.3. Inc. preparing the item for transfer. DR2.3 SR2.1 Plan Source Make Deliver Scheduled MRO Return © Copyright 2003 Supply-Chain Council. preparing scheduling documentation and managing overall scheduling administration. Performance Attributes Metric Reliability % shipping schedules that support customer required return by date Cycle Time From Return Authorization To Scheduled Shipment Pickup Cycle Time From Return Authorization To Actual Shipment Pickup Cycle time to update changes to shipment schedule % MRO Scheduling Cost to Total Source Return Cost Value of Unserviceable MRO inventory in Scheduling Stage/ Total MRO Inventory Value Responsiveness Flexibility Costs Assets Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Credit/ Exchange Options Ship-to Data Outputs Return SR2. 212 April 2003 Return .

3 ER.4 Plan Source Make Deliver Shipment Documents (carrier. Inc. government) Returned MRO Product Return Product Location © Copyright 2003 Supply-Chain Council. Return DR2. Performance Attributes Metric Reliability % Error-free Returns Shipped Return Shipments Shipped On Time Cycle Time From Packaging The Product For Shipment To Receipt Of Product At The Service Provider None Identified Cost Per Request Authorization Return Transportation Costs Value of Unserviceable MRO Inventory In Physical Return and Transportation Stage/ Total MRO Inventory Value Responsiveness Flexibility Costs Assets Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver MRO Item Availability Outputs Return ER. customer. and handles the MRO product in preparation for shipping in accord with pre-determined conditions.4 213 April 2003 . The product is then provided by the customer to the carrier who physically transports the product and its associated documentation to the service provider.5 The process where the customer packages.Process Element: Return MRO Product Process Element Definition Process Number: SR2.

2.4) Return Plan Schedule • (SR2.4) Manage Iintegrated Supply Chain Inventory Information • (SR2.4) Return Inventory for Transfer • (P5. ER.4) Sourcing Plans • (ER. S3.3.8) Regulatory Requirements • (ER.3) MRO Disposition Request • (ER. Inc.5) Return MRO Product • (DR2.3) 214 • Historical Return Rates (P5.1) • Manage Integrated Supply Chain Inventory Information (EP. S1. S2.2) • Receipt Discrepancy Notification (P.4) Return Plans • (EP.3) MRO Return Authorization Request DR2.2) Return Schedule Instructions • (ER.3.2 DR2.4) • MRO Return Authorization Response (SR2. • Return Schedule Instructions (SR2.3.3) April 2003 . ER.6) Transportation Guidelines • (ER.3 DR2.1.4) Receipt Data • (P5.4) • MRO Products (S1.2. S. S2.1 Transfer MRO Product Receive MRO Product (includes verify) Schedule MRO Return Receipt Authorize MRO Product Return • Return Inventory Transfer Data (P5. ER) © Copyright 2003 Supply-Chain Council. DR2.4 DR2.1) Business Rules For Return Processes • (SR2.DR2: Deliver Return MRO Product • (P2.1.

The process includes communication between the customer and service provider and the generation of associated documentation. 215 April 2003 . delivering or transferring rules Total cost associated with Deliver Return activities Value of Unservi ceable MRO Inventory in Deliver Return Process/ Total MRO Inventory Value Costs Assets Best Practices Features None Identified None Identified © Copyright 2003 Supply-Chain Council. Performance Attributes Metric Reliability Responsiveness Flexibility % of MRO Deliver Returns Processed Correct Total Deliver Return Cycle Time Cycle time and cost to implement new or modify existing return authorization criteria.Process Category: Deliver Return MRO Product Process Category Definition Process Number: DR2 The processes of the service provider authorizing and scheduling the MRO return product and the physical receipt of the item by the service provider and their transfer of the item for final disposition determination. scheduling rules. Inc.

1 © Copyright 2003 Supply-Chain Council.3 SR2. Rejecting the request would include providing a reason for the rejection to the customer.4 Source Make Deliver Return SR2.3 ER.Process Element: Authorize MRO Product Return Process Element Definition Process Number: DR2. Performance Attributes Metric Reliability Responsiveness Flexibility Costs None Identified Response Cycle Time None Identified Cost per request authorization Ratio of authorization cost to total deliver return costs Value of Unserviceable MRO Inventory In Scheduling Stage/ Total MRO Inventory Value Assets Best Practices Features Prognostic/Diagnostic None Identified Inputs Plan Return Plans P5. determines if the item can be accepted for MRO and communicates their decision to the customer. Source Make Deliver Return SR2. including authorizing return replacement or credit. Inc.1 The process where a service provider receives an MRO product return authorization request from a customer. Accepting the request would include negotiating the conditions of the return with the customer.4 Manage Iintegrated Supply Chain Inventory Information MRO Return Authorization Request MRO Disposition Request Business Rules For Return Processes EP.3 216 April 2003 .1 EP.4 Outputs Plan Historical Return Rates Manage Integrated Supply Chain Inventory Information MRO Return Authorization Response P5.

3. SR2. DR2. Performance Attributes Metric Reliability % of Return Schedules That Are Generated Within Supplier’s Lead Time Return Authorization Schedule Creation Cycle Time Cycle Time To Update Changes To Shipment Schedule MRO Deliver Return Costs Value of Unserviceable MRO Inventory In Scheduling Stage/ Total MRO Inventory Value Responsiveness Flexibility Costs Assets Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return Return Schedule Instructions © Copyright 2003 Supply-Chain Council. Inc.Process Element: Schedule MRO Return Receipt Process Element Definition Process Number: DR2.3 217 April 2003 . upon receipt.2 The process where the service provider evaluates the MRO service requirements including negotiated conditions and develops a schedule that tells the Customer when to ship the part. The scheduling activity would also inform Receiving when to expect the shipment and where to send the part. for induction or storage.

6 ER. 218 Make Deliver Return ER April 2003 . Inc.5 DR2.3 The process where the service provider receives and verifies the returned MRO item against the return authorization and other documentation and prepares the item for transfer.8 ER.4 © Copyright 2003 Supply-Chain Council. Performance Attributes Metric Reliability % Orders/ Lines Received Damage Free % orders/ Lines Received Complete % orders/ Lines Received With On-Time Scheduled Receipts % orders/ Lines Received With Correct Shipping Documents Receiving Cycle Time % Receipts Received without Item and Quantity Verification Receiving Costs as a % of MRO Costs Value of Unserviceable MRO Inventory In Receiving Stage/ Total MRO Inventory Value Responsiveness Flexibility Costs Assets Best Practices Features None Identified None Identified Inputs Plan Return Plan Schedule Return MRO Product Return Schedule Instructions Transportation Guidelines Regulatory Requirements Receipt Data P5.Process Element: Receive MRO Product Process Element Definition Process Number: DR2.2 ER.4 Source Outputs Plan Source Receipt Discrepancy Notification P S Make Deliver Return SR2.3. ER.

3 S1.4 Source Make Deliver Return Outputs Return Inventory Transfer Data Plan Source Make Deliver Return P5. Performance Attributes Metric Reliability % Lost or Damaged During Transfer % Product Transfer Without Transaction Errors Cycle Time For The Transfer Process Time and Cost To Exercise The Transfer Transfer and Product Storage Costs Value of Unserviceable MRO Inventory In Transfer To Storage Stage/ Total MRO Inventory Value Responsiveness Flexibility Costs Assets Best Practices Features None Identified None Identified Inputs Plan Sourcing Plans P2.2. 219 ER.1. S2.4 April 2003 . Inc. S3. S2.Process Element: Transfer MRO Product Process Element Definition Process Number: DR2.1.4 The process where the service provider transfers the MRO product to the appropriate process to implement the disposition decision.2 MRO Products © Copyright 2003 Supply-Chain Council.2 S1.

220 • Receipt Transaction – Add Inventory to Financials • Returns Instructions and Documentation to Financials • Credit Customers Account for Returns April 2003 .8 SR3.7 SR3.3 Receive Excess Product DR3.2 DR3.9 Recover & Disposition Excess Product Authorize Replacement or Credit • • • • SR3.1 Schedule Product Shipment • Ship Documentation • Ship Transaction – Remove Inventory from Financials Request Return Replacement or Credit Identify Excess Inventory • Return Shipment Source Return • Return Policy • Asset Recovery Resource • Product Specs • Quality Test SR3.6 Receive Excess Product Return SR3.R3: Return Excess Product • Terms and Conditions • Inventory Policy • Inventory Performance Data Deliver Return • Ship to Data • Return Policy • Ship to Data DR3.5 Approve Request Authorization Verify Excess Product • Disposition Record Scrap Rework Stock Adjust Financials According to Disposition • Adjust Customer Credit © Copyright 2003 Supply-Chain Council. Inc.4 DR3.

221 April 2003 . Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified Return Costs Days of Supply Days of Obsolete Supply Best Practices Features None Identified None Identified © Copyright 2003 Supply-Chain Council.Process Category: Return Excess Product Process Category Definition Process Number: R3 The return of excess inventory and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract. Inc.

approving.Process Element: Request Return Authorization Process Element Definition Process Element Number: DR3. Inc. and recording a Return Product Authorization (RPA) for excess inventory and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract.1 The process of validating. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified Create Return Product Authorization Costs Return Order Entry and Maintenance Costs Value of Return Product Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Plan Source Make Deliver Return Terms and Conditions Inventory Policy Inventory Performance Data Outputs © Copyright 2003 Supply-Chain Council. 222 April 2003 .

Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return © Copyright 2003 Supply-Chain Council. Inc.2 The process and actions required determining return replacement or credit.Process Element: Request Return Replacement or Credit Process Element Definition Process Element Number: DR3. 223 April 2003 .

Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified Return Product Management and Planning Costs as a % of Product Return Costs Return Product Days of Supply Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Plan Source Make Deliver Return Ship to Data Return Policy Outputs Return Shipment © Copyright 2003 Supply-Chain Council.Process Element: Schedule Excess Product Return Process Element Definition Process Element Number: DR3. Inc. 224 April 2003 .3 Scheduling and managing the execution of the individual return deliveries of product against an existing RPA.

4 The process of recording a physical receipt of Excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract against an RPA Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified Order Management Costs to Return Product into the Supply Chain RPA Costs None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Plan Source Make Deliver Return Ship to Data Outputs Ship Documentation Ship Transaction To Remove Inventory From Financials © Copyright 2003 Supply-Chain Council. 225 April 2003 .Process Element: Receive Excess Product Process Element Definition Process Element Number: DR3. Inc.

Inc. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified Cost Per Request Authorizations None Identified Best Practices Features Product Specifications Quality Test Procedures None Identified None Identified Inputs Plan Source Make Deliver Return Plan Source Make Deliver Return Return Policy Outputs Returns Instructions and Documentation to Financials Credit Customers Account For Return © Copyright 2003 Supply-Chain Council.5 The process and actions required determining excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract for conformance to requirements. 226 April 2003 . determining disposition profile and establishing an RPA.Process Element: Approve Request Authorization Process Element Definition Process Element Number: SR3.

Inc. as available inventory and disposition excess not usable for sale. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified Receiving Costs as a % of Product Return Costs DOS of Return Product Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return Receipt transaction to add inventory to financials © Copyright 2003 Supply-Chain Council.Process Element: Receive Excess Product Return Process Element Definition Process Element Number: SR3. 227 April 2003 .6 The process of recovering excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract.

Inc. 228 April 2003 .7 The process of verifying excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract as available inventory and disposition excess not usable for sale. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified Verification Costs as a % of Product Return Costs Excess DOS Obsolete DOS Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Plan Source Make Deliver Return Product Specs Quality Test Outputs Disposition Record © Copyright 2003 Supply-Chain Council.Process Element: Verify Excess Product Process Element Definition Process Element Number: SR3.

Process Element: Recover and Disposition Excess Product Process Element Definition Process Element Number: SR3.8 The process of recovering excess and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract product as available inventory and disposition excess not usable for sale. Inc. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Plan Source Make Deliver Return Asset Recovery Resource Outputs Scrap Rework Stock Adjust Financials According to Disposition Adjust Customer Credit © Copyright 2003 Supply-Chain Council. 229 April 2003 .

230 April 2003 . Inc.Process Element: Authorize Replacement Or Credit Process Element Definition Process Element Number: SR3.9 The process and actions required to authorize deliver of replacement product or credit to customer Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return © Copyright 2003 Supply-Chain Council.

ER: Enable Return ER.2 Manage Business Rules for Return Processes Manage Performance of Return Processes • Business Rules (P5.4 • Data about Return Capabilities (P5. Inc.5 Manage Return Inventory Manage Return Capital Assets • Return Inventory Targets (P5.2) ER. Manage Return Data Collection • Asset Return Capabilities and Capacities (P5.2) 231 April 2003 .1 ER. 3 ER.2) © Copyright 2003 Supply-Chain Council. P5.2) ER.2) • Capabilities of the Return Processes (P5.1.

7 Manage Return Transportation Manage Return Network Configuration •Return Transportation Guidelines. and Agreements (P5.2) • Return Process Workflow Definition and Policies (P5.ER: Enable Return ER.8 Manage Return Regulatory Requirements and Compliance • Regulatory Requirements (P5. Inc.6 ER. Policies.1) • Regulatory (P5.2) ER.2) © Copyright 2003 Supply-Chain Council. 232 April 2003 .

e.1 The process of establishing.Enable Process: Manage Business Rules for Return Processes Enable Process Definition Process Number: ER. Business rules align Return process policies with business strategy. SR2.1. and enforcing decision support criteria for Return Planning which translate to rules for conducting business.1 233 April 2003 . developing and maintaining customer and channel performance standards of an return processes such as service levels. i. and objectives.1 DR2.2 © Copyright 2003 Supply-Chain Council. given service requirements by supply chain stakeholders/trading partners. goals. maintaining. Inc. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return Business Rules Manage Business Rules Business Rules for Return Processes P5. P5.

Inc.Enable Process: Manage Performance of Return Processes Enable Process Definition Process Number: ER. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return Capabilities of the Return Processes P5. 234 April 2003 .2 The process of measuring actual Return Process performance against internal and/or external standards to develop and implement a course of action to achieve targeted performance levels.2 © Copyright 2003 Supply-Chain Council.

2 © Copyright 2003 Supply-Chain Council. integrating and maintaining the accuracy of return execution information necessary to plan the recovery of supply chain resources. Inc.3 The process of collecting. DR2. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return Data about Return Capabilities Receipt Data P5.Enable Process: Manage Return Data Collection Enable Process Definition Process Number: ER.3 235 April 2003 .

Enable Process: Manage Return Inventory Enable Process Definition Process Number: ER.4 236 April 2003 .3 SR2.5 DR2. both inter and intra company. Inc. Finished and Purchased Finished Goods) including replenishment models. ownership.3 DR2.5 DR2. and stocking locations. Work In Process. product mix. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Inventory Control Return Product Location Return Inventory Transfer Data Return SR2.4 The process of establishing a return process inventory strategy and planning the recovery process inventory limits or levels (including Raw Material.2 © Copyright 2003 Supply-Chain Council. Source Make Deliver Return SR2.4 Outputs Plan Return Inventory Targets MRO Item Availability Receipt Data Return Inventory for Transfer P5.

Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return Asset Return Capabilities and Capacities P5. 237 April 2003 . Inc.2 © Copyright 2003 Supply-Chain Council.5 The process of defining capacity utilization and recovery and then acquiring.Enable Process: Manage Return Capital Assets Enable Process Definition Process Number: ER. maintaining and dispositioning an organization’s capital assets as part of the overall Returns process.

Inc.2 © Copyright 2003 Supply-Chain Council. DR2. and Agreements Transportation Guidelines P5. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return Return Transportation Guidelines. which characterizes total asset recovery transportation requirements. and the management of transporters both.Enable Process: Manage Return Transportation Enable Process Definition Process Number: ER. Policies. inter and intra company.6 The process of defining a Return transportation strategy and maintaining the information.3 238 April 2003 .

7 The process of defining and maintaining the information about the Returns supply chain network for a group of similar or complimentary products through their full life cycle. 239 April 2003 . and after-market support. product realization (development. including the evaluation of market need. Inc.Enable Process: Manage Return Network Configuration Enable Process Definition Process Number: ER. product discontinuation. introduction and production).2 © Copyright 2003 Supply-Chain Council. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return Return Process Workflow Definition and Policies P5.

) when planning for the Return and Recovery of Assets. etc.2 © Copyright 2003 Supply-Chain Council.1 SR2. Performance Attributes Metric Reliability Responsiveness Flexibility Costs Assets None Identified None Identified None Identified None Identified None Identified Best Practices Features None Identified None Identified Inputs Plan Source Make Deliver Return Outputs Plan Source Make Deliver Return Regulatory Requirements Regulatory Manage Regulatory Return Policy Warranty Data P5.1 240 April 2003 . DR2. Inc.1 P5. government. trade officials.3 SR2.8 The process of identifying and complying with regulatory documentation and process standards set by external entities (i.e.Enable Process: Manage Return Regulatory Requirements and Compliance Enable Process Definition Process Number: ER.

241 April 2003 .Glossary © Copyright 2003 Supply-Chain Council. Inc.

From Process Category/ Element #: ED. The process of validating.7 The process of developing a time-phased course of action that commits resources to meet requirements. The process of developing a time-phased course of action that commits delivery resources to meet delivery requirements. SR3. determining disposition profile and establishing an RPA.PROCESS TERMS TERM TYPE DEFINITION Access Delivery Performance Enable Process Align Supply Chain Unit Plan with Financial Plan Enable Process Approve Request Authorization Process Element Assess Supplier Performance Enable Process Authorize MRO Product Return Process Element Authorize Return Process Element Authorize Replacement or Credit Authorize Supplier Payment Process Element The process of defining the requirement and monitoring the performance of the delivery of product to a customer.2 EP. When physical delivery is out-sourced the performance is passed on to source for contract administration. product recalls and non-conforming product including the processing of product replacement data and/or other similar policies including appropriate replacement. make. recording. Accepting the request would include negotiating the conditions of the return with the customer. The process and actions required determining excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract for conformance to requirements. as well as business assumptions. approving.1 DR1. The process and actions required to authorize deliver of replacement product or credit to customer Balance Delivery Resources and Capabilities with Delivery Requirements Balance Product Resources with Product Requirements Process Element Enable Process Process Element © Copyright 2003 Supply-Chain Council. source. and delivery plans. determines if the item can be accepted for MRO and communicates their decision to the customer.9 SR3. warranty claims. S2.5 ES.9 The process of authorizing payments and paying suppliers for product or services. The process of revising the long-term supply chain capacity and resource plans. The process where a service provider receives an MRO product return authorization request from a customer. Rejecting the request would include providing a reason for the rejection to the customer. including authorizing return replacement or credit. This includes revision of aggregate forecast and projections related to supply chain.2 DR2. S1. Inc.5. given the inputs from the strategic and business plans.7. This process includes invoice collection.3 April 2003 .5. S3.3 242 P4. invoice matching and the issuance of checks.1 SR1. P2. The process of measuring actual supplier performance against internal and/or external standards to develop and implement a course of action to achieve targeted supplier performance.

project management principles. D2. manufactured part. The process of analyzing orders to determine the groupings that result in least cost/best service fulfillment and transportation. P1. EP. assembly. and reporting tools that support strategic and business plans. and a cash flow statement. EP. The process of delivering product that is manufactured.4 EP. activity. manufactured.2 D1.5. The processes and tasks associated with product checkout including scanning.6 D1.2 D4. assembly or configuration will begin only after the receipt and validation of a firm customer order. This process develops objectives usually accompanied by budgets.7 D3 D2 April 2003 . credit application and approval. A capacity constraint is often a bottleneck. The process of delivering product that is designed. cost and profit. projected balance sheet. process development methodologies/approaches. Manufacture. A requirement for product from a distribution location to a source location. Process Element The process of developing a time-phased course of action that commits supply-chain resources to meet supply-chain requirements.4. 243 EP. A capacity constraint is said to exist when the available capacity at a resource may be insufficient to meet the workload necessary to support the desired throughput.3 TERM TYPE DEFINITION Balance Production Resources with Production Requirements Balance Supply Chain Resources with Supply Chain Requirements Bill of Materials (BOM) Process Element The process of developing a time-phased course of action that commits creation and operation resources to meet creation and operation requirements.3 Input/Output EP. The process of preparing and installing the product at the customer site.4. whether purchased or not.From Process Category/ Element #: P3.6 D4. assembled or configured from standard parts or subassemblies. A process that identifies opportunities for performance improvement and facilitates their realization through the use of metrics.9 EP. Design will begin only after the receipt and validation of a firm customer order. which includes one or more custom parts. order confirmation. A document resulting from a process of linking the long-range strategy with projections of revenue. method of payment. and assembled from a bill of materials.. Process Element © Copyright 2003 Supply-Chain Council. service agreement. and/or invoice or receipt. subassembly. Inc.7 Business Plan Input/Output Capacity Constraints Input/Output Checkout Process Element Consolidate Orders Process Element Continuous Improvement Process Input Customer Replenish Signal Deliver and/or Install Input/Output Deliver Engineer-toOrder Product Process Category Deliver Make-toOrder Product Process Category The Bill of Materials is a structured list of all the materials or parts needed to produce a particular finished product. The product is fully functional upon completion.

Products that have been acknowledged as received by the customer. The plan contains necessary business requirements for information and relationships to effectively and efficiently PLAN the Supply Chain. and sell finished goods at a retail store. The processes of the service provider authorizing and scheduling the MRO return product and the physical receipt of the item by the service provider and their transfer of the item for final disposition determination. A retail store is a physical location that sells products (and services) direct to the consumer using a point of sale process (manual or automated) to collect payment.4 SR1. such as parts that retain their identity through the transformation process and are intended to be completed after receipt of a customer order. The process includes communication between the customer and service provider and the generation of associated documentation. 244 From Process Category/ Element #: D4 DR2 D1 D1. Input/Output Process Element © Copyright 2003 Supply-Chain Council. Merchandising at a store level is the stocking and restocking of products in designated storage locations to generate sales in a retail store. The establishment of courses of action over specified time periods that represent a projected appropriation of supply resources to meet delivery requirements. developed. A plan for the development and establishment of courses of action over specified time periods to appropriate delivery resources to meet projected delivery requirements.6 SR2. merchandise. The process of the customer determining whether to service the item.2 EP M3 P4. or (3) discard the item. and who the appropriate service provider would be to service the item. P4.4 April 2003 . (2) send the product back into service without requiring a return authorization request.TERM TYPE DEFINITION Deliver Retail Products Process Category Deliver Return MRO Product Process Category Deliver Stocked Product Process Category Delivered End Items Delivery Plan Input/Output Disposition Defective Product Disposition MRO Product Process Element Enable PLAN Process Category Engineer-toOrder Process Category Establish Delivery Plans Process Element Deliver Retail Products are the processes used to acquire. Inc. including custom products that are designed. The process of delivering product that is maintained in a finished goods state prior to the receipt of a firm customer order.4. The process and actions required to bring the defective product back to operational and specifications. Production of distinct items. A plan for a course of action over specified time periods that involves a projected appropriation of supply resources to meet delivery requirements. and produced in response to a specific customer request. what service is required. Outputs include a decision to: (1) send a return authorization request to a service provider.10 P1.

5 M3. EP. part programs. The establishment of courses of action over specified time periods that represent a projected appropriation of supply resources to meet sourcing plan requirements. and considering. etc. storage and movement through to checkout.1 EP. evaluating. And Aggregate Product Resources Identify. ED. furniture and fixtures. The process of scheduling resources to support item-stocking requirements. EP.7 D4. as in whole with constituent parts.6. specifications. but before product can be manufactured. all things that add value in the material and other resources of a product or services. The process of identifying.2 Process Element Process Element © Copyright 2003 Supply-Chain Council. leasehold improvements comprise the fixed assets of most companies.2 Process Element The process of identifying. Establishing time-based courses of action that attempt to appropriate and allocate supply resources to meet supply-chain plan requirements. as in whole with constituent parts. And Aggregate Delivery Resources and Capabilities Identify. Inc.2 April 2003 . the last step in the completion of any preliminary engineering work done as part of the quotation process. all things that add value in the supply chain of a product or services. Plant. And Aggregate Supply Chain Resources Process Element The process that establishes courses of action over specified time periods to appropriate supply resources to meet projected production and operation plan requirements. and considering. and considering. Assess. Assess.4 P1. The process of identifying. evaluating. In general. formulas. evaluating.4. evaluating. They are normally represented on the balance sheet at their net depreciated value. all things that add value in the creation of a product or performance of a service. Process Element From Process Category/ Element #: P3. A set of tasks associated with product selection.1 Process Element The process of identifying. And Aggregate Production Resources Identify. Engineering activities required after acceptance of order. and considering. Assess. P2.TERM TYPE DEFINITION Establish Production Plans Process Element Establish Sourcing Plans Process Element Establish Supply Chain Plans Process Element Fill Shopping Cart Finalize Engineering Process Element Fixed Asset Financial Term Generate Stocking Schedule Identify. Assess.4 D4. as a whole with constituent parts. May include generation and delivery of final drawings. 245 P3.4 P2. machinery and equipment. as in whole with constituent parts. Tangible property used in the operations of a business but not expected to be consumed or converted into cash in the ordinary course of events.2 P1. P4.5. all things that add value in the delivery of a product or services.

and considering as a whole with constituent parts. and Aggregate Delivery Requirements Identify.10.2 M2.10.g. prioritizing. Generate Ship Documents & Ship Process Element From Process Category/ Element #: SR2. D2. generating the documentation necessary to meet internal.g.. Includes operating failures and planned maintenance requirements. repair. as a whole with constituent parts.1 Input/Output Courses of action over specified time periods that represent a projected appropriation of total supplychain resources to meet total supply-chain demand requirements. and considering. P1. and considering as a whole with constituent parts. and Aggregate Production Requirements Identify. business rules and product operating conditions as criteria to identify and confirm that an item requires maintenance. Issuing material includes the corresponding system transaction. required ingredients or intermediate formulations) from a stocking location (e.3 EP. D3.1 P4. which defines the system parameters with which to effectively plan and execute using ERP (MRP. and considering. and sending the product to the customer.1 Process Element The process of identifying. The process of identifying. and Aggregate Product Requirements Identify.7 D1.1 Process Element The process of identifying.4 © Copyright 2003 Supply-Chain Council. as a whole with constituent parts. The physical movement of materials (e.. Issue Product Process Element Item Master Input/Output Load Vehicle. P3. prioritizing. all sources of demand for a product or service in the supply chain. stockroom. Prioritize. raw materials. P1. prioritizing.1 Process Element The process of identifying. all requirements that must be satisfied by the supply chain execution. prioritizing. customer. Prioritize.2 M3. a location on the production floor. Prioritize. all sources of demand in the delivery of a product or service. P2. manufactured subassemblies. and Aggregate Supply Chain Requirements Integrated Supply Chain (ISC) Plans Process Element The process where the customer utilizes predetermined MRO policies. A record of specific information for each product. Inc.TERM TYPE DEFINITION Identify MRO Product Condition Process Element Identify. The bill of materials/routing information or recipe/production instructions will determine the materials to be issued to support the manufacturing operation(s).8 April 2003 . a supplier) to a specific point of use location. overhaul or disposal. etc) systems. fabricated components. Prioritize. all sources of demand in the creation of a product or service. The series of task including placing product onto vehicles. 246 M1. and government needs.

separating. Inc. This process element includes required repairs. Production in a Make-to-Order environment adds value to products through fabrication. The output of the process used to determine whether a demand will be supplied with internal capacity or purchased through contract manufacturing and/or contracted services externally. A Make-to-Order environment is one in which products are completed after receipt of a customer order and are built or configured only in response to a customer order. machining and chemical processes. such as parts that retain their identity through the transformation process. Then are built or configured only in response to a customer order. separating. that is intended to be shipped from finished goods or “off the shelf”. Make-to-Order products are intended to be completed after receipt of a customer order.5 ES. © Copyright 2003 Supply-Chain Council. alterations. 247 From Process Category/ Element #: EM. The process of manufacturing distinct items. and other miscellaneous items to maintain production capability of the manufacturing fixed asset base.6 M2 M2 M2 M1 M1 April 2003 . that is intended to be shipped from finished goods or “off the shelf”.5. assembly.3 EP. that is intended to be completed after receipt of a customer order. The process of manufacturing distinct items. mixing.4. Maketo-Order includes products built only in response to a customer order and products configured in response to a customer order. Production of distinct items. calibration. EP. Make-to-Stock products are completed prior to receipt of a customer order and are generally produced in accordance with a sales forecast. such as parts that retain their identity through the transformation process. The process of collecting information to support the day-to-day maintenance of all planning and execution data required supporting the sourcing process. The process of manufacturing non-discrete products that have value added through mixing. EP. and/or performing chemical reactions.TERM TYPE DEFINITION Maintain Equipment/ Facilities Enable Process Maintain Source Data Enable Process Make/Buy Decision Input/Output Make-to-Order Process Category Make-to-Order Discrete Manufacturing Process Category Make-to-Order Process Manufacturing Process Category Make-to-Stock Process Category Make-to-Stock Discrete Manufacturing Process Category The ongoing management of the activities associated with ensuring equipment and facilities are kept in proper order. forming. forming. such as parts that retain their identity through the transformation process. Make-to-Stock products are completed prior to receipt of a customer order and are generally manufactured in accordance with a sales forecast.

warehouse data. etc. status. and delivery requirements. etc. and disposition of the capital assets. goals. Acquisition. maintaining. separating. and objectives. Business rules align PLAN process performance measures with business strategy. maintaining and dispositioning an organization’s <capital assets> located at a supplier’s facility and/or outside source. customer experience. maintenance. and enforcing decision support criteria for Supply Chain Planning. and/or performing chemical reactions.1 ER. given service requirements by supply chain stakeholders/trading partners The process of defining and maintaining rules which affect the acceptance of an order. developing and maintaining customer and channel performance standards of an return processes such as service levels. deliver data. method of delivery. and communicating information to support deliver planning and execution processes. Inc. 248 From Process Category/ Element #: M1 EP. based on quantity. maintaining. The process of establishing. (Include distribution channel rules) Acquisition. i. credit.TERM TYPE DEFINITION Make-to-Stock Process Manufacturing Process Category Manage Business Rules for Plan Processes Enable Process Manage Business Rules for Return Processes Enable Process Manage Capital Assets Enable Process Manage Channel Standards Enable Process Manage Deliver Business Rules Enable Process Manage Deliver Capital Assets Enable Process Manage Deliver Information Enable Process The process of manufacturing non-discrete products that have value added through mixing. © Copyright 2003 Supply-Chain Council. Business rules align Return process policies with business strategy. The process of collecting.).1 ES. history. which translate to rules for conducting business.e. and objectives. Determine material handling (inventory) pick pack & ship methods (inventory). The process of developing and maintaining customer and channel performance standards of an entire supply chain such as service levels. given service requirements by supply chain stakeholders/trading partners.10 ED. and disposition of order management. forming. and enforcing decision support criteria for Return Planning which translate to rules for conducting business. transportation data. and are generally produced in accordance with a sales forecast. warehouse and transportation capital assets.1 ED. maintaining.3 April 2003 .5 ED.” are completed prior to receipt of a customer order. which are used to operate the supply chain. Make-to-Stock products are intended to be shipped from finished goods or “off the shelf. The process of acquiring. and equipment. maintenance.5 EP. The information to be managed includes: order data (customer preference. goals. The process of establishing.

etc. The process of measuring actual integrated Supply Chain performance against internal and/or external standards to develop and implement a course of action to achieve targeted performance. Performance targets established for the execution of supply chain processes are reflected in the process elements for PLAN. product mix.6 EM. Management of the activities associated with handling / storage / movement of materials used to support production. cost.8 ES. maintaining and dispositioning. alteration. EP. The process of specifying.TERM TYPE DEFINITION Manage Finished Goods Inventories Enable Process Manage Import/ Export Requirements Enable Process Manage Import/Export Requirements Enable Process Manage Incoming Product Enable Process Manage InProcess Products (WIP) Manage LongTerm Supply Chain Planning Enable Process The process of establishing and maintaining finished goods inventory limits or levels. Key aspects of supply chain capacity include inventory. ownership. The process of establishing. Make’s capital assets to operate the supply chain production processes. This includes carrier selection and management.2 EP. tracking deliveries and import. i. delivery reliability.4.8 ED. replenishment models.4 ES. calibration and other miscellaneous items to maintain production capabilities. and transportation. outsource (contract manufacturing).6 EM.e. government). stocking locations The process of identifying and complying with import/export regulatory documentation and process standards set by external entities (e. establish letters of credit terms and conditions.3 April 2003 . responsiveness. The process of recording and maintaining regulations and rates that constrain the ordering and delivering of product. The process of measuring actual Return Process performance against internal and/or external standards to develop and implement a course of action to achieve targeted performance levels. Determine customs requirements.g. Manage Make Equipment and Facilities Enable Process Manage Performance of Return Processes Manage Performance of Supply Chain Enable Process Manage Plan Data Collection Enable Process Enable Process Enable Process © Copyright 2003 Supply-Chain Council.5. and assets.2 EP. The process of integrating and maintaining the accuracy of information necessary to balance supply resources to demand requirements at both the highest aggregate and lowest SKU planning levels. The process of defining and maintaining the information that characterizes inbound logistics management of all supplier deliveries. cycle time. This includes repair. capital (fixed assets). and adjusting limits or levels of long-range supply chain capacity to meet long-range demand requirements.5 ER. 249 From Process Category/ Element #: ED. measuring. typically conducted at the business plan level.4 EP. Inc. EP. including both physical and electronic goods and services..

2 EM. The information to be managed includes production. The process of defining capacity utilization and recovery and then acquiring. cycle counting. and communicating information to support MAKE planning and execution processes. © Copyright 2003 Supply-Chain Council.3 EM. event planning (promotions.TERM TYPE DEFINITION Manage Planning Configuration Enable Process Manage Product Inventory Enable Process Manage Production Data Enable Process Manage Production Performance Enable Process Manage MAKE Regulatory Compliance Enable Process Manage Production Rules Enable Process Manage Return Capital Assets Enable Process Manage Return Data Collection Enable Process The process of defining and maintaining the information about a unique supply chain network for a group of similar or complimentary products through their full life cycle.3 April 2003 . The process of managing. This element also includes the management of critical sub processes needed to manage the life cycle of individual item numbers including item masters. maintaining.). The process of collecting. 250 From Process Category/ Element #: EP. bills of materials/formulas. maintaining and dispositioning an organization’s capital assets as part of the overall Returns process. and other information specifying the method of production for a particular product. product realization (development. and bill of materials. Production details include part/item master. and objectives. and after market support. The process of establishing and maintaining physical inventories and inventory information. This process allows the development and implementation of a course of action to achieve targeted performance. routings. This includes warehouse management. order and process data. this may include tracking the number of service providers and the financial resources committed at any given point in time. equipment requirements. maintaining. tooling. The process of identifying and complying with regulatory documentation and process standards for Make activities set by external entities (e. etc. processes.g. Inc. including the evaluation of market need. rationalization.5 ER. goals. and enforcing rules for managing production details in line with business strategy.8 EM. physical inventories and inventory reconciliation. collecting. product discontinuation. introduction and production). routings.4 EM. ABC classification.7 ES. The process of developing and maintaining performance standards and analysis methods to compare actual production performance against the established standards.1 ER. For Services. government) The process of establishing. integrating and maintaining the accuracy of return execution information necessary to plan the recovery of supply chain resources.

maintaining and enforcing decision support criteria. resolving issues. and after-market support. This includes establishment of a new supplier or maintaining an existing supplier and all the tasks and activities associated with identifying and qualifying the supplier and finalizing on the sourcing terms and conditions. The process of defining and maintaining a unique network of suppliers to deliver a specific product set.TERM TYPE DEFINITION Manage Return Inventory Enable Process Manage Return Network Configuration Enable Process Manage Return Regulatory Requirements and Compliance Enable Process Manage Return Transportation Enable Process Manage Sourcing Business Rules Enable Process Manage Supplier Agreements Enable Process Manage Supplier Network Enable Process Manage Transportation Enable Process The process of establishing a return process inventory strategy and planning the recovery process inventory limits or levels (including Raw Material. introduction and production). route. inter and intra company. trade officials. in line with business strategy. The process of defining requirements and establishing. The process of identifying and complying with regulatory documentation and process standards set by external entities (i.) when planning for the Return and Recovery of Assets. government. The criteria translated into rules for conducting business within the enterprise and other legal entities including selection.8 ER. both inter and intra company. fulfillment. Work In Process. and stocking locations. The process of defining and maintaining the information about the Returns supply chain network for a group of similar or complimentary products through their full life cycle. which characterizes total asset recovery transportation requirements. which includes certifying new suppliers and maintaining the current status of existing suppliers.1 ES. including the evaluation of market need. ownership. Finished and Purchased Finished Goods) including replenishment models. Also.e. vehicle. Inc. enforcing terms and conditions and maintaining an accurate status for existing purchase orders or contracts. regulations. and the management of transporters both.7 ER. rates/tariffs and backhaul opportunity (Characterization include information necessary to support maintenance of internal Outbound © Copyright 2003 Supply-Chain Council. etc.6 April 2003 . The management of existing purchase orders or supplier contracts.9 ES. 251 From Process Category/ Element #: ER.4 ER.7 ED. containerization.6 ES. negotiation. The process of 1) defining and maintaining the information which characterizes product. This includes managing volume/step pricing. consideration and specific levels of collaboration. terminals. product mix. goals and objectives. product realization (development. The process of defining a Return transportation strategy and maintaining the information. product discontinuation. the management of a supplier certification process.

picking the product.9. The series of activities including retrieving orders to pick. and delivering the product to point of stock. determining inventory availability.5. The development and establishment of courses of action over specified time periods that represent a projected appropriation of supply chain resources to meet supply chain requirements for the longest time fence constraints of supply resources.8. Availability of a product by location that is reserved.1 EP. scheduled or available for sale. D2. 252 D2. building a pick wave. picking item and quantity from a designated backroom warehouse location.7 D4. M2. EP.3. The development and establishment of courses of action over specified time periods that represent a projected appropriation of material resources to meet supply chain requirements. recording the resulting inventory transaction. building the pick wave. A plan that describes how a company will utilize third party business partners to provide products and services which the company chooses not to provide with internal capacity. The process of retrieving restocking orders to pick. performance expectations.5 P4 P3 P2 P1 April 2003 .3 D2.5.4 M2.5. D3. packaging may include cleaning or sterilization. Inc. The development and establishment of courses of action over specified time periods that represent a projected appropriation of production resources to meet production requirements. determining inventory availability. Within certain industries. The development and establishment of courses of action over specified time periods that represent a projected appropriation of supply resources to meet delivery requirements. and contract considerations. Transportation modes are selected and efficient loads are built. specifications for products and services. recording the pick and delivering product to shipping performed in the distribution center in response to an order. Outsource Plans can vary in detail from simple policy statements to highly detailed plans with specifics about the third party business partners.6 M1.5 D1. EP. From Process Category/ Element #: DEFINITION support maintenance of internal Outbound Transportation equipment – CAPITAL ASSETS) and 2) the management of transporters.TERM TYPE Material Availability Order Backlog Input/Output Outsource Plan Input/Output Package Process Element Pick (Staged) Product Process Element Pick Product from Backroom Process Element Plan & Build Loads Plan Deliver Process Element Plan Make Process Category Plan Source Process Category Plan Supply Chain Process Category Input/Output Process Category © Copyright 2003 Supply-Chain Council.3 D1. Orders that have been received and entered into the order processing system and are in a queue waiting to be processed and shipped.4 M3.4. The series of activities that containerize completed products for storage or sale to end-users. D2. D3.

A master production plan used to allocate capacity among manufacturing resources and schedule finite manufacturing activities or executing the performance of a service. D2. The processes associated with the validation of product performance to ensure conformance to defined specifications and requirements. The total system-wide production ability to provide the maximum output of products or services." Product routings represent the way products are made and are integrated with the Bill of Materials.7 P3. EP. P3.6 1 ISO 8402:1994 Quality Management and Assurance – Vocabulary. An estimate of the amount of product or service a particular part of the business (internal capacity) or a third party business partner (external capacity) is capable of producing over a particular period of time when all factors that control the production processes are working optimally. Process Element Process Element Input/Output From Process Category/ Element #: EP.g.4. Inc.5. Contract rates and tariffs from carriers by commodity.g. Geneva Switzerland. pollutant or 1 unwanted effects). relevant tolerances. and performed.1 D1. run times.1.5. The series of activities performed upon material to convert it from the raw or semi-finished state to a state of completion and greater value. Key elements of proper Routings include proper sequence of operations. "Result of activities or processes and may include service. software or a combination thereof. 253 April 2003 .4.3 M2. information or services. processed materials.2 P1. International Organization for Standardization. approved.g. The end object of a transformation process that includes physical objects.6 D1.1 M1. Receive and respond to general customer inquiries and requests for quotes. EP.4 EP. D2. lot size and setups. hardware. © Copyright 2003 Supply-Chain Council. offering to customers) or unintended (e. EP. The equivalent concepts for services are the workflow processes and rules.TERM TYPE DEFINITION Planning Decision Policies Process Inquiry & Quote Produce and Test Input/Output Product Term Product Routings Input/Output Production Capacity Production Plans Input/Output Projected Internal and External Capacity Input/Output Rated Carrier Data Input/Output Any company policies that affect how a planning process is defined. etc.6.4. mode.3 M3.4 All EP. EP. assemblies of processed materials) or intangible (e. for shipments. work center identification. EP. can be tangible (e. knowledge or concepts) or a combination thereof.g. can be either intended (e. lane.6.

2 SR3. The process of recovering excess and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract product as available inventory and disposition excess not usable for sale.6 DR2. Configure your product to the customer’s specific needs.2 DR1. putting away and recording location that a company performs at its own warehouses. The process where the service provider receives and verifies the returned MRO item against the return authorization and other documentation and prepares the item for transfer. verifying. or through electronic media. Orders can be received through phone.4 SR3. laboratory tests for potency or purity. The process of recording a physical receipt of Excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract against an RPA The process of recovering excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract. Enter and Validate Order Process Element Receive Defective Product Receive Excess Product Process Element Receive Excess Product Return Process Element Receive MRO Product Process Element Receive Product Process Element Receive Product at the Store Process Element Recover and Disposition Excess Product Process Element Release Product to Deliver Process Element Receive orders from the customer and enter them into a company’s order processing system. determining put-away location. putting away and recording location that a company performs at its own stores. based on standard available parts or options. or certification required prior to delivery of product to customer. testing. Examples include assembly of batch records fir regulatory agencies. M2.TERM TYPE DEFINITION Receive.8 M1.6 April 2003 . Inc. Configure. recording product receipt.8 D4. May include quality inspection.3 D1. creating certificate of analysis. Activities associated with post-production documentation. Process Element © Copyright 2003 Supply-Chain Council. fax.6.4 DR3. determining put-away location. The activities such as receiving product. The activities such as receiving product. Check the customer’s credit. verifying. May include quality inspection. The process of receiving and recording a defective product against a warranty claim and/or other similar policies including appropriate replacement. 254 From Process Category/ Element #: D2. as available inventory and disposition excess not usable for sale. “Technically” examine order to ensure an orderable configuration and provide accurate price. and sign-off by the quality organization. recording product receipt.

1 DR1. nonconforming product and/or other similar policies including appropriate replacement. 255 R3 EP.2. Inc. Source. Return Excess Product Process Category Revised Aggregate Forecast and Projections Input/Output Revised Business Assumptions Input/Output Revised Capital Plan Input/Output From Process Category/ Element #: SR2. The process of a customer requesting and obtaining authorization. D1. These are reviewed periodically with actual results to verify the linkage of actual cause and effect. D2.9 EP. EP. An update to the expected cause and effect statements that are the base for the Revised Aggregate Forecast and Projections. product recall.5. transportation and import / export requirements to facilitate the efficient return of the MRO product to the service provider. the customer and service provider would discuss enabling conditions such as return replacement or credit.3 DR3. EP.2 Process Element Inventory (both on hand and scheduled) is sourced and reserved for specific orders and delivery is committed to and scheduled. they represent balanced Supply and Demand. A revision to plan for capital expenditures necessitated by either changes in specific business plans or factors and assumptions affecting a R1 © Copyright 2003 Supply-Chain Council. In addition to discussing the MRO issue.5 SR2. The process and actions required determining return replacement or credit. Inventory and Response Time Plans through the Supply-Chain are produced from these Forecasts Together. DR3.3 Process Category The return and disposition of defective products as defined by the warranty claims. packaging. for the return of an MRO product.3. The customer may need to go through several return authorization iterations with multiple service providers before authorization is received. supporting Make. handling. The return of excess inventory and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract An update to the aggregate Supply-Chain Forecasts of Demand by Product Family supporting the Market/Channel Plans. approving. and recording a Return Product Authorization (RPA) for excess inventory and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract. Corresponding Projections.6 April 2003 . The product is then provided by the customer to the carrier who physically transports the product and its associated documentation to the service provider. from a service provider.4. and handles the MRO product in preparation for shipping in accord with pre-determined conditions. Deliver.TERM TYPE DEFINITION Return MRO Product Process Element Request MRO Return Authorization Process Element Request Return Authorization Process Element Request Return Replacement or Credit Reserve Inventory (Resources) & Determine Delivery Date Return Defective Product Process Element The process where the customer packages.9 EP. The process of validating.

10 EP. and. The process where the service provider evaluates the MRO service requirements including negotiated conditions and develops a schedule that tells the Customer when to ship the part.7. 256 D1. upon receipt. Service levels are established by balancing requirements against operational strategy.1 M2. Scheduling and managing the execution of the individual return deliveries of product against an existing warranty claim. preparing the item for transfer. A set of minimum acceptable values that describe service requirements of a particular industry.e.2 SR2.6 EP. carriers & rates.6.) compared to the established service requirements.8 D1. The process where the customer develops the schedule for a carrier to pick-up and deliver the MRO product. product recall and nonconforming product.6. etc. D2. Product due to arrive. intermediate manufacturing activities are coordinated prior to the scheduling of the operations to be performed in producing a finished product.10 April 2003 . Information used to select modes. Specific carriers are selected by lowest cost per route and shipments are rated and tendered.3 DR3. transportation lanes.6. channel. Activities include selecting the carrier and rates.7. lane. products. delivery performance. Scheduling and managing the execution of the individual return deliveries of product against an existing RPA. for induction or storage. and location. D3. depending on the factory layout.4 DR1. The scheduling activity would also inform Receiving when to expect the shipment and where to send the part. Performance targets in service related measures (i. Given plans for the production of specific parts. available carriers. and/or other similar policies including appropriate replacement. and/or customer segment.6. the scheduling of the operations to be performed in accordance with these plans. In general. D2.TERM TYPE ROA Route Shipments Routing Guide Acronym Process Element Schedule MRO Return Receipt Process Element Schedule MRO Shipment Process Element Schedule Defective Product Return Process Element Schedule Excess Product Return Schedule Production Activities Process Element Scheduled Receipts Select Carriers & Rate Shipments Service Levels Input/Output Service Requirements Input/Output Input/Output Process Element Process Element Input/Output © Copyright 2003 Supply-Chain Council. etc. D3.2 D1. (See Return on Assets – Metrics) Loads are consolidated and routed by mode. Scheduling includes sequencing. Listing or routes. lead times. any standards for setup and run. preparing scheduling documentation and managing overall scheduling administration.3 M1. Inc. D2. D3.6 DR2. or formulations in specified quantities and planned availability of required materials.1 M3.6 D1. From Process Category/ Element #: DEFINITION plans or factors and assumptions affecting a business plan.

communicating with the service provider. D2. The process. initiated by the customer. the tasks associated with identifying the item location.4 D4. A longer range.4. bill of lading..5 M2.g. Inc. and physically returning or disposing of the product.6 EP. The agility of a supply chain in responding to marketplace changes to gain or maintain competitive advantage.). in the correct condition and packaging. The costs associated with operating the supply chain. way bill. An aggregate material requirements plan used to schedule material deliveries to meet production plans. Process includes: customer identification that an action is required and determining what that action should be. and overhaul items to a service provider. and increase its earnings performance. to the correct place. A plan that describes goals and objectives for a supply chain and the steps that will be taken to reach those goals and objectives from the current performance levels. For restocks.. etc..2 April 2003 . The actual move transaction is part of the Deliver process.9.TERM TYPE DEFINITION Shipping Documents Source Return MRO Product Input/Output Sourcing Plans Input/Output Stock Shelf Process Element Stage Product Process Element Strategic Plan Input/Output Supply Chain Asset Management Efficiency Supply Chain Costs Supply Chain Delivery Reliability Performance Attribute Supply Chain Flexibility Performance Attribute Supply Chain Performance Improvement Plan Input/Output Legal documentation of the contents of a shipment (e. D3.8 SR2 P1. in the correct quantity. and recording the appropriate inventory transaction. This includes the management of all assets: fixed and working capital. generating return documentation. P2.4 M1. Process Category Performance Attribute Performance Attribute © Copyright 2003 Supply-Chain Council. The effectiveness of an organization in managing assets to support demand satisfaction. with the correct documentation. stock placement. repair. at the correct time.5 M3.10. The movement of packaged products into a temporary holding location to await movement to a finished goods location. and end of sale activities. high-level plan that describes how a company intends to conduct business. For promotional items and stock repositioning the tasks associated with shelf and point of sale preparation. export papers. stocking the shelf according to merchandise plans. of returning maintenance. 257 From Process Category/ Element #: D1. Products that are made to order may remain in the holding location to await shipment per the associated customer order. The performance of the supply chain in delivering: the correct product. to the correct customer. Improve its market and competitive position.9 All All All All EP.

The process of verifying excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract as available inventory and disposition excess not usable for sale. cost. Inc. flexibility and responsiveness. delivery reliability.4 SR1. The process where the service provider transfers the MRO product to the appropriate process to implement the disposition decision.2 All DR2. 258 From Process Category/ Element #: EP. © Copyright 2003 Supply-Chain Council.g.TERM TYPE DEFINITION Supply Chain Performance Metrics Input/Output Supply Chain Responsiveness Transfer MRO Product Performance Attribute Process Element Verify Defective Product Process Element Verify Excess Product Process Element Standard measures that indicate how well a supply chain performs within certain categories of performance known as Performance Attributes.7 April 2003 . e. and asset management. The velocity at which a supply chain provides products to the customer. The process and actions required determining the cause of defective product conformance to requirements and recording disposition profile.5 SR3.

M2. EM. Metric S1.g. EM.5. S3.7 S1. D2.5. part number.12. The # of unacceptable products divided by the total number of units produced during the manufacturing run. product description) Wrong Price (e. Number of Faultless Installations divided by Total Number of Units Installed.5.1. Inc. S2. S3 % Invoices processed without issues and/or errors Metric The percentage of time a product is considered unacceptable against standard criteria.1. S1.1 TERM TYPE DEFINITION # Of call backs as % of total inquiries % Defective Metric Number of callbacks divided by total inquiries. RETURN). MAKE. S2.1.3 M1.1. The number of invoices processed without issues and or errors divided by the total number of invoices processed in the measurement period % Of Data Accuracy Metric Amount of valid MAKE information divided by original source data.11 EM.12.3 % Of EDI Transactions Metric % Of Faultless Installations % Of Faultless Invoices Metric % Of Information Management Assets Used / Production Assets % Of Invoice Receipts and Payments Generated via EDI % Of Orders Scheduled to Customer Request % Of Parts Delivered To Point Of Use Metric Metric Metric © Copyright 2003 Supply-Chain Council.10 D1.2. S3.g. From Process Category/ Element #: D1. M3. The number of invoices issued without error.11. D2. high level measures that may cross multiple SCOR processe s.2.. name. The percentage of material receipts that are delivered directly to production or a consolidation point or to point of use on the production floor with no inspection or minor visual/paperwork inspection only.5. discounts not applied) Wrong Quantity or Wrong Terms or Wrong Date Information technology capital assets that support production operations / total capital assets devoted to production operations.7 Metric The percentage of orders whose delivery is scheduled to within an agreed to time frame of the customer’s requested delivery date..METRICS Level 1 Metrics are primary. M2.4 Metric # of EDI generated invoices divided by the total number of invoices. S2. D2. S3. Percentage of orders received via electronic data interchange.g. S1. Examples of potential invoice defects are: Change from customer purchase order without proper customer involvement Wrong Customer Information (e. EDI. DELIVER.2. D3.3 April 2003 . D2. D3. SOURCE. telephone number) Wrong Product Information (e.3 D1.1.3 % Of Downtime Due to Non-availability of WIP Metric The % of time an equipment/operation is idle due to no WIP in queue for that particular equipment/operation. address..13. M3. Level 1 Metrics do not necessarily relate to a SCOR Level 1 process (PLAN. 259 S1.

2.2.3. S2.3. S3. The amount of time that data is accessible by applications during those time periods when it is scheduled to be available.4 S1. S2.2.2.2. Delivery. S3.1 % Of Receipts Received without Item and Quantity Verification % Of Receipts Received without Quality Verification % Of Single and/or Sole Source Selections % Of Supplier Contracts Negotiated Meeting Target Terms and Conditions for Quality. S2.3.2 EM.5 % Orders/Lines Received On-Time To Demand Requirement Metric The number of orders / lines that are received ontime to the demand requirements divided by the total orders / lines for the demand requirements in the measurement period S1.4 Metric Metric Metric Metric © Copyright 2003 Supply-Chain Council. S2.2. Flexibility and Cost % Of Time Data Available When Needed Metric The number of qualified suppliers who meet defined requirements divided by the total number of qualified suppliers used as sources in the measurement period # of receipts with Quantity variance requiring corrective actions (outside industry standard tolerance) divided by total number of receipts. # of Single and/or Sole Source selections divided by the total number of awards The number of contracts negotiated meeting all business requirements divided by the total number of contracts processed in the measurement period S1.2. S3. S3. S3 S1. Data availability is often measured as a percentage of an elapsed year.2. S2. The number of orders / lines that are processed complete divided by the total orders / lines processed within the measurement period The number of orders / lines that are received complete divided by the total orders / lines received in the measurement period The number of orders / lines that are processed damage free divided by the total orders / lines processed in the measurement period 260 S1. S3.2.From Process Category/ Element #: S3. Inc.4 S3.1 TERM TYPE DEFINITION % Of Potential Suppliers Selected which Become Qualified % Of Qualified Suppliers which Meet Defined Requirements Metric The number of suppliers who become “qualified” divided by the total number suppliers who were selected for qualification in the measurement period Metric S3. S3.3 S1.4 % Orders/Lines Received With Correct Shipping Documents Metric The number of orders / lines that are received ontime with correct shipping documents divided by the total orders / lines processed in the measurement period S1. # of receipts with Quality variance requiring corrective actions divided by total number of receipts. S3.2 S3.4 April 2003 . S2.5 % Orders/Lines Processed Complete Metric % Orders/Lines Received Complete Metric % Orders/Lines Received Damage Free Metric % Orders/Lines Received Defect Free Metric The number of orders / lines that are received defect free divided by the total orders / lines processed in the measurement period S1. S2.3. S2.2.

1. Included are the documentation activities of managing. M2.1. M1. S3. S2.3. S2.3 EM.4.6 R1. S3. S3.1.5 P1.5 S1. storage. M2. training.4.2. S2. S3. S2. Inc.4. S3.4.6 S1.1.3 April 2003 . S3.4 EM.6 M1.3 % Schedules generated within Supplier’s Lead Time Actual Asset Life Maintenance Cost as % of Replacement Value Metric Actual-to-Theoretical Cycle Time Metric Administrative Costs Associated with InTransit Handling/Movement of In-Process Product Asset Turns Metric The number of schedules that are changed within the suppliers lead-time divided by the total number of schedules generated within the measurement period The number schedules generated within the suppliers lead-time divided by the total schedules generated in the measurement period Measure of total lifecycle maintenance cost of an asset compared to its replacement cost.6 TERM TYPE DEFINITION % Product Transferred Complete Metric The number of orders / lines that are transferred complete divided by the total orders / lines transferred in the measurement period % Product Transferred Damage Free Metric S1.1. 261 S1.1. P3.1.4. This ratio is based maintenance cost to-date so that that replacement or upgrade cost can be evaluated as the asset ages on an on-going basis. M1. # of days each schedule change impacts the delivery date divided by the total # of changes.6 % Product transferred on-time to demand requirement Metric % Product transferred without transaction errors % Return Metric The number of product orders/lines that are transferred damage free divided by the total orders / lines processed in the measurement period The number of product orders / lines that are transferred on-time to demand requirements divided by the total orders / lines transferred in the measurement period The number of transactions processed without error divided by the total transactions processed in the measurement period % Return to sales at any level of merchandise hierarchy % Schedules changed within Supplier’s Lead Time Metric S1. and transportation for In-Process product.3 S1.3 M2. S2. The ratio of the measured time required to produce a given output divided by the sum of the time required to produce a given output based on the rated efficiency of the machinery and labor operations.4.4. S3. S2. M3 S1. M3.From Process Category/ Element #: S1.1. The cost of planning and scheduling for labor.4. S2.4.1. P3.1. S3. S2.4. M3.4. S3.3. S2. R3 S1. maintaining and storage of documentation. updating. M2. # of days each engineering change impacts the delivery date divided by the total # of changes. Total gross product revenue ÷ Total net assets Average days per Engineering Change Average days per Schedule Change Average Plant-Wide Salary Average Release Cycle of Changes Metric Metric Metric Metric Metric Metric Metric © Copyright 2003 Supply-Chain Council. Total payroll for salaried employees divided by total headcount Cycle time for implementing change notices divided by total number of changes. processing. M3.

1.2.3. own continent. processing.2 April 2003 . D2. and payment of a supplier’s invoice for product received.4. All costs associated with the receipt. M3.7 EM.12. M1. Includes pick/pack and prepare for shipment time. Total MAKE cost to comply with regulatory requirements. P1. M3. constraining processes. M2. This cost includes direct costs (labor. and off . D2.TERM TYPE DEFINITION Build To Ship Cycle Time Metric Capacity Utilization Metric Cash-to-Cash Cycle Time Metric Commodity Management Profile Metric Complete Manufacture to Order Ready for Shipment Time Cost of compliance including administrative costs Cost of Goods Sold Metric Average time from when a unit/product is deemed shippable by manufacturing until the unit/product actually ships to a customer.3 EM. S3. D2. M2.9 EM. updating. Metric Metric Cost Of In-Process Product (WIP) Damaged from Handling/Storage as a Percentage of Total Material Cost Cost of Managing MAKE Information Metric Cost of Noncompliance Metric Cost per Invoice Costs Associated with Managing Production Performance as a % Manufacturing Controllable Cost Metric Metric Metric © Copyright 2003 Supply-Chain Council. Measure of the MAKE costs for non-conformance with regulatory documentation and process standards set by external entities (e. EM. and maintaining the information technology systems that support manufacturing operations.4.2.3. Inc. this represents the time from the point where a company pays for the resources consumed in the performance of a service to the time that the company received payment from the customer for those services.3 All EM. M1. M1. Cash-to-cash cycle time = inventory days of supply + days sales outstanding – average payment period for materials (time it takes for a dollar to flow back into a company after its been spent for raw materials).11 P2. review. own country. direct labor availability and key components/materials availability.2. materials) and indirect costs (overhead). Some factors that should be considered are internal manufacturing capacity.8.3. M1. Number of distinct part numbers (purchased commodities) or service components/ resources sourced within the following areas: 200 miles. in calendar days. Ratio of Cost for Managing Production Performance to Manufacturing Controllable Cost. P1. M2. M1. The cost of managing. A measure of how intensively a resource is being used to produce a good or service.6 P1.5.5. M3. government).5. M2. P2.4. M3.g.4.8 The cost associated with buying raw materials and producing finished goods.6 EM. S2.5.3.1. 262 From Process Category/ Element #: M1.shore. P2. M1.1. M2.4 D2.8 S1. For services. The costs of in-process product (WIP) damaged from handling/storage divided by the total cost of those materials.5. D3. M2. M3.

from when the customer authorizes an order to the time that the order is received.11 D2. The percentage of orders that are fulfilled on or before the original scheduled or committed date. processing customer payments.TERM TYPE DEFINITION Create Customer Order Costs Metric Cross training Metric Cumulative Source/Make Cycle Time Metric Customer Invoicing/ Accounting Costs Customer Receipt of Order to Installation Complete Customer Signature/Authorization to Order Receipt Time Damage and Shrinkage Metric Includes costs for creating and pricing configurations to order and preparing order documents. D3.4 D1. D1. D3. in calendar days. D2.g. D2. theft. P3. picking and consolidating. inspecting.3.8 P1 D1.2 P1. D3. Metric Metric Metric Metric © Copyright 2003 Supply-Chain Council. D1. P3. D2.2. and placing incoming materials into inventory and processing payment to the supplier including recording exceptions.training provides backup workers in case the primary operator is unavailable. and staging products/systems.6. D2..2.11.6.7.2 5 point annual average of gross accounts receivable ÷ (total gross annual sales ÷ 365) All time associated with unloading. Includes costs for invoicing.3.10. training an employee on several machines rather than one). Cross .5.10 Time. D3. etc.8. receiving. D1. and coordinating Demand/Supply process across entire supply chain.11 D1. D2. D2. Demand/ Supply Planning Costs Metric Distribution Costs Metric Costs associated with forecasting. P4. M3. in calendar days.12. D1. D3. in calendar days. D2.13. D3. D1. D2.10. developing finished goods or end item inventory plans. Includes product installation. D2. D2. and inputting data into inventory systems. acceptance and product up and running time. D2.10. (Not including MIS associated costs. including all channels. D3. D2. processing shipments. in process.9.7 April 2003 . M1. D3.2. D3.13.8. Days Sales Outstanding DELIVER Cycle Time Metric Delivery Performance to Customer Commit Date Metric Delivery Performance to Customer Request Date Metric The percentage of orders that is delivered on the customer’s requested date.4. Inc. From Process Category/ Element #: D1. M2. P2. evaporation. finished goods receiving and stocking. D3. Reductions of actual quantities of items in stock.9.4. D2.1.12. M2.9.3. or in transit. and no prior forecasts existing with suppliers). D3.8 P1. The providing of training or experience in several different areas (e. D1. P1. D4 M1.2. moving incoming materials to storage location. D3. D2. P3. The cumulative external and internal lead-time to build shippable product (if you start with no inventory on-hand. M3. D2. P4. selecting carrier. The loss may be caused by scrap.) Includes costs for warehouse space and management. D2.3. P4. D3 263 R1.3. deterioration. no parts on-order.3.5. D1. D3.9.3. D1. M3. and verifying customer satisfaction.2 M3.

The measure of process downtime due to noncompliance to external and internal regulatory documentation or process standards (e.11. including packing slips. M2. etc. Inventory on hand which will satisfy future demand for products that are no longer in production at your entity.8 EM. engineering. D2.10.1 D1.5.13.8. Percentage order reduction sustainable at 30 days prior to shipping with no inventory or cost penalties. D1. D3. Percentage delivery reduction sustainable at 30 days prior to delivery with no inventory or cost penalties. i. D3.TERM Dock to Stock Cycle Time Documentation TYPE Metric Metric Downside Delivery Flexibility Metric Downside Installation Flexibility Metric Downside Order Flexibility Metric Downside Production Flexibility Metric Downside Shipment Flexibility Metric Downtime in MAKE Due To Compliance Issues Metric ECO (Engineering Change Order) Cycle Time Metric ECO cost Metric End-of-Life Inventory Metric Equipment Utilization Metric Equipment/Facility Maintenance Cost as % of Manufacturing Controllable Cost Field Finished Goods Inventory Days of Supply Metric Metric © Copyright 2003 Supply-Chain Council. distribution center. D3.11. D3.8. D3.5. calibrate and maintain production equipment divided by total Manufacturing Controllable Cost. From Process Category/ Element #: D1.2.2. The request for the change can be from a customer or from production quality control or another department. D3. Percentage shipment reduction sustainable at 30 days prior to shipping with no inventory or cost penalties. The percentage order reduction sustainable at 30 days prior to delivery with no inventory or cost penalties. D3. D3. warehouse. 264 D2. D3.4 EM. D2. governmental regulations.) The total time required from request for change from customer. D1.12. Costs incurred from revisions to a blueprint or design released by engineering to modify or correct a part. M3.8 EM. D3.e.8 M3 M3. The inventory which is kept at locations outside the four walls of the manufacturing plant. D3.9.9.9.5 D2. specifications. D2. alter.5.9. D2. bills of lading. production or quality control to revise a blueprint or design released by engineering. SPC.3.7.g. D2. etc.2. D1.10 April 2003 .10 D1.11.8 D1. D1.12.10.2 D1.1. Percentage installation reduction sustainable at 30 days prior to installing with no inventory or cost penalties. D2. D2. and implement the change within the Make operation.1. D1.11 D1. invoices. D2. D2.4 M1. M3.8 DEFINITION Definition to be determined for next release Number of orders without correct documentation supporting the order. Number of filled equipment SKU locations divided by the total SKU locations provided by the equipment expressed as a percentage Cost to repair. Inc.

10 April 2003 . EP. 1 minus the percentage of completed work-in-process units. M1. shrinkage. indirect labor. D3.Sum of Variance Forecast Sum Where: Forecast Sum = The sum of the units forecasted to be shipped in each month based upon the forecast generated at the critical time fence. D3.8 M1. P4.4. Only true "bottoms-up" forecasts are counted: for example. D2 D1.1. D1. P3. For services. and authorizing billing. this metric is the proportion for services that are filled so that the service is completed within 24 hours Sum of all costs associated with finished goods inventory: opportunity cost.1. P4. Also “replenishment interval” is the time between successive replenishment orders. Sum of Variances = The sum of the absolute values. installing. EP.1 P2 D1. P4. D3.4. Includes costs for verifying site preparation.3. The time between forecast regenerations that reflect true changes in marketplace demand for deliverable end products.3. certifying.8. if weekly or monthly updates to the forecast only re-calendar or shift dates for the forecast to avoid changing the annual dollar-based forecast. Plant finished goods inventory days of supply are calculated as gross plant finished goods inventory ÷ (value of transfers/365 days).1. The percentage of time work-in-process is not completed.4 D2. P4.4. # Of received parts which fail inspection divided by the total # of parts received Ratio of total number of employees required to support production in general without being related to a specific product. to the total number of employees that is specifically applied to the product being manufactured or used in the performance of the service.7.3.8. channel obsolescence and field sample obsolescence. P4. insurance and taxes. Forecast Accuracy = Forecast Sum .5. Incoming Material Quality Indirect to Direct Labor Headcount Ratio Metric In-Process Failure Rates Metric Installation Costs Metric Metric Metric Metric © Copyright 2003 Supply-Chain Council.2 P1. M2. D2. P2. M3 M3. P2. at the forecasted line item level. Forecast accuracy is calculated for products and/or families for markets/distribution channels.9. D1. D1.3 P4. P1.TERM TYPE DEFINITION Fill Rates Metric Finished Goods Inventory Carrying Costs Metric Finished Goods Inventory Days of Supply Finished Goods Inventory Days of Supply Forecast Accuracy Metric Forecast Cycle Metric Frequency of Replenishment Metric The percentage of ship-from-stock orders shipped within 24 hours of order receipt. of the differences between each month's forecast as defined above and actual demand for the same month.8 M1.1. Finished goods inventory days of supply are calculated as gross finished goods inventory ÷ (value of transfers/365 days). D1. total obsolescence.6. EP. 265 From Process Category/ Element #: P1. D3. in unit measurement.11. P1. D2. D1.5. they should not be considered true forecast regenerations. Inc. P4. P1.1. direct labor.7 EP.3. D1.

The Timeframe would be affected by the time it takes to collect data.2. M2. plant FG. D2 M1. field FG. 1 minus the utilization rate. 266 From Process Category/ Element #: M1. manufacturing cycle time is calculated as the average number of units (doses. S1.4 P1.TERM TYPE DEFINITION Intra-Manufacturing RePlan Cycle Metric Inventory Accuracy Metric Inventory Aging Metric Inventory Cycle Counting Accuracy Metric Inventory Days Of Supply Metric Inventory Obsolescence as a % of Total Inventory Item/Product/Grade Changeover Time Metric Machine Wait Time Metric MAKE Cycle Time Metric Management Decision Timeframe Ratio Metric Time between the acceptance of a regenerated forecast is by the end-product producing location and the reflection of the revised plan in the master production schedule of all the affected plants. future liabilities should not be included.4 M1. kilos. M2. M1. M2. Total gross value of inventory at standard cost before reserves for excess and obsolescence. The absolute value of the sum of the variance between physical inventory and perpetual inventory. resource. S2. pounds. gallons. P1. the ratio would be 200%. S3.1. Only includes inventory on company books..3. Inc. M3.1. M3.2 M1. M3. M2. moves to on/off-site distribution or goes to customer). or line to convert from the production of the last good piece of item/product/grade of A to the first good piece of item/product/grade of B.2.2. S2. The time required for a specific machine.1 M1.3. For example. process information. develop knowledge and evaluate the situation. The sum of the following average times: Order release to start actual build + Total build cycle + End build to leaves plant (i. D1.e. The ratio of the time needed to make a decision about a particular process divided by the cycle time of that process. (This generates a number that is better if it is lower). M1. For continuous and mixed processes. and it takes 4 hours to make a decision about that operation.3. if an operation can be performed in 2 hours. other) ÷ (COGS ÷ 365). M2. The annual obsolete and scrap reserves taken for inventory obsolescence expressed as a percentage of annual average gross inventory value. excluding external vendors. etc. Metric © Copyright 2003 Supply-Chain Council.3 April 2003 . Or the number of accurate part cycle counts divided by the total number of cycle counts performed expressed as a percentage. process. M2. S1. M3.4. D4 M1.8. The percentage of time a machine facility is idle. The absolute value of the sum of the variance between physical inventory and perpetual inventory The percentage of total gross inventory (based on value) covered by expected demand within specific time buckets.6.2.3.1.3. M2. S3. M3 EM. M2.2 EM. and implement the decision.) in process divided by the average daily output in units.1. M1.3 M1. M2. work center.3. Five point annual average of the sum of all gross inventories (raw materials & WIP.4. field samples.

production scheduling. D3. D1. D1. D1. order configuration verification.4. M3. Shipped to different locations for consolidation or later pick. Moved to on-site stockroom for later pick. Includes costs for maintaining the customer database.4 D1. Total number of revisions to a blueprint or design released by engineering to modify or correct a part. Consolidation: is defined as the activities associated with filling a customer order by bringing together in one physical place all of the line items ordered by the customer. operational hours.TERM Manufacturing Controllable Cost Material Requisition Cycle Time TYPE Metric Metric Mean Time Between Failure Metric Mean Time to Repair Asset Metric Number of ECOs Metric Number of Supply Sources On Time in Full Metric Order Consolidation Profile Metric Order Entry and Maintenance Costs Metric Order Entry Complete to Order Ready for Shipment Time Metric Metric © Copyright 2003 Supply-Chain Council. (Raw and packaging materials used to make a finished good are not included. Some of these may come directly from the production line and others may be picked from stock.2. Number of orders for which not all of the items on order are delivered in the quantities requested. cycles. DEFINITION All costs under direct control of the MAKE function.5 M1. The request for the change can be from a customer or from production quality control or another department.8 D1.5. 267 From Process Category/ Element #: EM. Total number of internal and external direct production material suppliers used. D2. M2. Shipped direct to the customer with consolidation completed. in calendar days.5 M3.g.10. accepting new orders and adding them to the order system as well as later order modifications. asset charges. These costs are: direct labor and expenses.4 D2.9.g. cycles. and prepare for shipment time. Inc. build. P2. pack and ship. D1. The average time to repair equipment and facilities for a defined unit of measure (e. Including release to manufacturing. P2. credit check.2.6. miles).2.2. Moved to on-site staging location for consolidation and shipment direct to customer.2. pack and ship. EM.5 EM. D1.2 D1. EM. local to customer by your transport company.3. miles).5. operational hours. engineering change orders (ECO). D3.1 P2. pick/pack. M3. indirect labor and expenses.3 EM.6.) The total amount of time required converting the identification of capacity needs for key material resources to the receipt of those resources. D3.7. The following profiles have been captured: Shipped direct to customer's dock from point of manufacture (No Consolidation). and excess material & packaging costs.7 April 2003 . The average time interval between failures for repairable equipment and facilities for a defined unit of measure (e.

5. D1. and Customer Receipt of Order to Installation Complete. Start Build to Order Ready for Shipment. allocating inventory.4. Costs incurred in the operation of a business that cannot be directly related to the individual products or services produced. M3. such as light. D2. D3. The aggregation of the following cost elements (contained in this glossary): Create Customer Order Costs Order Entry and Maintenance Costs Contract/Program and Channel Management Costs Installation Planning Costs Order Fulfillment Costs Distribution Costs Transportation Costs Installation Costs Customer Invoicing/Accounting Costs The total amount of time required converting a customer order into a receipt by the customer. based on given number of Delivered Finished Goods. 268 From Process Category/ Element #: D2.3 M1. ordering from the internal or external supplier. D3. D2. D2. D2. The total time required to perform a series of activities that containerize completed products for storage or sale to end-users.2. Including total transit time (all components to consolidation point). M2. (Within certain industries.5 April 2003 . and maintenance. in calendar days.1 P4. D1. credit check. M3. Time required.) The cost to package product as a finished good. D1. P4. D3. D2. and additional transit time to customer receipt of order. D2.8 D1. M3. for order revalidation. D3. Metric Order Fulfillment Cycle Time Metric Order Management Costs Metric Order Management Cycle Time Order Ready for Shipment to Customer Receipt of Order Time Metric Order Receipt to Order Entry Complete Time Metric Overhead Cost Metric Includes costs for processing the order.1. P4. direct labor dollars. in calendar days. D3.4. reporting order status and initiating shipment.3. D2. M2. The average actual lead times consistently achieved.4.5 M1. from Customer Signature/ Authorization to Order Receipt.4.2.11. D3.4 M3.6. packaging may include cleaning or sterilization.2 D1. heat. D3.4 D1. D3 D1. These costs. not including intermediate handling of materials. supervision.1. are grouped in several pools and distributed to units of product or service by some standard allocation method such as direct labor hours. scheduling the shipment.3.3. D2.7. D2. Order Ready for Shipment to Customer Receipt of Order. or direct materials dollars. M3 M1. and scheduling of received orders. M2.1. in calendar days. Order Entry Complete to Start-Build. Order Receipt to Order Entry Complete.3. configuration check. queue time.9. consolidation. Inc.3. Metric Package Cycle Time Metric Packaging Cost Metric © Copyright 2003 Supply-Chain Council.TERM TYPE DEFINITION Order Entry Complete to Start Manufacture Time Order Fulfillment Costs Metric Time from completion of order entry to that of the release to manufacturing.4. D2.1.

as well as reviews to improve the manufacturability of the purchased item expressed as a percentage of product acquisition costs. M3 S1. supplier quality engineering. M3. Product (Commodity) Management and Planning – All costs associated with supplier sourcing.10. Total planning expenditures divided by the total number of hours spent exercising the plan The aggregation of the following cost elements for which manufacturing is central focal point of orders (contained in this glossary): Create Customer Order Costs Order Entry and Maintenance Costs Contract/Program and Channel Management Costs Installation Planning Costs Order Fulfillment Costs Distribution Costs Transportation Costs Installation Costs Customer Invoicing/Accounting Costs Product acquisition costs include costs incurred for the production of product: sum of product management and planning. S2. D3.1. etc.9 P2. D1.8.2. D2.1 April 2003 .1.3 S3.TERM TYPE DEFINITION Perfect Order Fulfillment Metric Placement Information (RFID) Metric A “perfect order” is defined as an order that meets all of the following standards: Delivered complete. M2.9. placement. receiving and product storage. is complete and accurate Perfect condition: Faultlessly installed (as applicable). The total cost of lost material from receipt and inspection of raw materials to the shipping of the finished good. P4 M1. Inc. bills of lading.8 M1. S3. D2.2. S3.. D3. D2. M2 M2.2 S1. S2.1. D1. inbound freight and duties. invoices. contract negotiation and qualification and the preparation. 269 From Process Category/ Element #: D1. correct configuration. D2. D3. This category includes all costs related to buyer/planners. using your customer’s definition of on-time delivery Documentation supporting the order including packing slips. Product Process Engineering – Cost associated with tasks required to document and communicate product specification. customer-ready. S3. no damage Placement information as measured by RFID Plant Cost Per Hour Metric Plant-Level Order Management Costs Metric Product Acquisition Costs Metric Product Losses (Sourced/inprocess/finished) Metric Product Management and Planning Costs as a % of Product Acquisition Costs Metric Product Process Engineering as a % of Product Acquisition Costs Metric © Copyright 2003 Supply-Chain Council. all items on order are delivered in the quantities requested Delivered on time to customer’s request date. per given number of Inventory Turns or Delivered Finished Goods.10. product process engineering and tooling costs. and tracking of a Purchase Order expressed as a percentage of product acquisition costs. incoming inspection.11.

The typical standard lead-time (after receipt of order) currently published to customers by the sales organization. of the differences between each month's production plan as defined above and actual production for the same month. using the following formula: Production Plan .Sum of Variance Production Plan Where: Production Plan = The sum of the units planned to be completed (i. D1.TERM TYPE DEFINITION Product Structure Definition Product Structure Cycle Time Production Material Administrative Cost Production Material Cycle Time Production Material Handling Cost Production Material Handling Damage Production Material Storage Cost Production Plan Adherence Metric Recipes / formulas / BOMs / that define the composition of a product Total time from demand to release of product structure Administrative costs associated with the handling / storage / movement of materials Time required moving material to point of use. P3.4 EM. M2. Number of the following distinct part numbers of: Raw materials..1 EM. From Process Category/ Element #: EM. Packaging product. Off-shore. Total Time from demand rules for production rules until releases of production details. Inc. Cost of storage space used for the production materials.6 April 2003 . not standing/re-supply orders. Own country.e. EM.4 EM.4 The typical standard lead-time (after receipt of order) currently published to customers by the sales organization. For typical orders only. Cost of material damaged from handling / storage / movement as a percentage of total material cost.4 P3. not standing/re-supply orders.1 D1. Externally manufactured intermediates. Production Rules Preparation Cycle Time (PRPCT) Published Delivery Cycle Time Metric Published Delivery Lead Times Metric Purchased Product by Geography Metric Quarantine Time Metric Metric Metric Metric Metric Metric Metric Metric © Copyright 2003 Supply-Chain Council. D2 270 EM. D2 S3.1 M1. Toll manufactured finished products. For typical orders only. at the end item level. placed into inventory or shipped) in each month based upon the plan generated in the previous month. Setting aside of items from availability for use or sale until all required quality tests have been performed and conformance certified. Production Plan Adherence is calculated at the shippable end-product level in units.1 EM. Own continent.4 Cost of handling/movement of materials used to support production. Sum of Variances = The sum of the absolute values. Labeling product that are sourced within the following areas: 200 miles.4 EM.6.

1. A measure of receipt conformity of recorded values to the actual values. S1. Raw material or product inventory days of supply are calculated as gross raw material or product inventory ÷ (value of transfers/365 days). M1. M3. S3. and internal product movement. All costs associated with taking possession of product expressed as a percentage of product acquisition costs. From Process Category/ Element #: M1. product receiving and stocking.4 EM.3 S1. M3. P2. Total elapsed time from time product is received to time it is passed to next process The time required to complete regulatory documentation during a production run. S3. D2. The product cycle less this metric is the basic production cycle time. pricing. Does not include required product data collection for quality or process improvement.2. including all delays.4. D3 Receiving and Product Storage – All costs associated with taking possession of and storing product. M2. to receive a customer order and transform resources into goods and services. Ratio of the Cost of Managing MAKE Information/ Manufacturing Controllable Costs Raw Material & WIP Inventory Days of Supply Raw Material or Product Days-of-Supply Metric Metric Metric Raw Material Shrinkage Metric Receiving Accuracy Metric Receiving & product storage costs as a % of Product Acquisition Costs Metric Receiving and Put Away Cycle Time Metric Receiving costs as a % of Product Acquisition Costs Receiving Cycle Time Metric Regulatory Documentation Cycle Time Metric Metric Re-plan Cycle Time Metric Responsiveness Lead Time Metric Return on Assets Metric © Copyright 2003 Supply-Chain Council.1. through to the point of customer receipt. M2 M1.3.2.TERM TYPE DEFINITION Ratio Of Actual To Theoretical Cycle Time Metric The ratio of the measured time required for completion of a set of tasks divided by the sum of the time required to complete each task based on the rated efficiency of the machinery and labor operations. This does not include inspection. The ratio of these two metrics provides an understanding into the effect of IT on the Make operating cost.2 P2 S1 M3. The time between the initial creation of the regenerated forecast and its reflection in the Master Production Schedule of the end-product production facilities.3.3.2. A financial measure of the relative incomeproducing value of an asset. Inc. P3.2.2 P1 April 2003 . The costs associated with breakage. The total amount of time required moving materials from an inbound location to an internal storage location. S2. and deterioration of raw material inventories. pilferage. S2. It is calculated as net income divided by total assets.3. Minimizing elapsed time. M2.5 271 M1. S3. This does not include incoming inspection.3 Raw material & WIP inventory days of supply are calculated as gross raw material and WIP inventory ÷ (value of transfers/365 days). S2.8 M1. processing work orders.4 S1.4 EM. Includes warehouse space and management.

3 S3. or additive from the time of requisition to the time of delivery. handling. products. P4 S1. service. and deterioration of inventories.3 S3.2.4 P4 EM.TERM TYPE DEFINITION Sales Per Employee Metric Schedule Achievement Metric Total product revenue divided by total number of full-time equivalent employees The percentage of time that a plant achieves its production schedule.1. etc. Inc. M3. S3.4 P2. S2. Total elapsed time from time the source is identified until it is qualified and approved. Stock keeping unit The number of times a SKU cycles or turns over in year. The costs associated with breakage. 272 From Process Category/ Element #: P1 M1. Total elapsed time from the time the requirement is identified until the source(s) are identified. All costs associated with the identification of potential suppliers. supplier lead time [internal or external]. receiving. and any other costs associated with provided schedules for manufacturing. M2. M2.2. from demand identification at the factory until the products are available in the production facility) required sourcing 95% (chosen to eliminate outlying data) of the dollar value of products from internal and external suppliers.4 P2.1. M2. M3. Expenses incurred from material falling outside of specifications and possessing characteristics that make rework impractical.2. Cumulative lead-time (total average combined inside-plant planning.1.2 M1.2 April 2003 .1 S3. This is the measure of the time required to regenerate the schedule to manufacture specific parts. divide the average inventory level into the annual cost of sales – APICS. or formulations in specified quantities within a specific time frame. M3. M2. Schedule Interval Metric Scheduled Resource Cost Metric Scrap expense Metric Shrinkage Metric SKU SKU Turnover Metric Metric Source Cycle Time Metric Source Flexibility Metric Source Identification Cycle Time Source Qualification Cycle Time Source Selection Cycle Time Metric Sourced/In-Process Product Requisition Cycle Time Sourcing Costs as a % of Product Acquisitions Costs Metric Metric Metric Metric © Copyright 2003 Supply-Chain Council. pilferage.2 M1. Total elapsed time from the time the RFQ is created until the contract is awarded and accepted by the supplier. The time required to achieve a sustained increase in volume by 20%. This calculation is based on the number of scheduled end-items or total volume for a specific period. The time required to provide manufacturing with a needed component. M2. evaluation of RFQ’s and supplier qualifications and the generation of a contract expressed as a percentage of product acquisition costs. P2.1 S3.1 M1.2. management direction.1. The schedule interval must be less than the manufacturing cycle time to be (not complete) The measure of the cost of people.3.1 M1. information systems. Note: over-shipments do not make up for under-shipments.3.

administration. (Does not include customer invoicing/accounting costs. Time to Comply with Regulatory Changes Total Build Time Total Deliver Costs Metric Metric Metric Metric Metric Metric © Copyright 2003 Supply-Chain Council.4 P2. performing inventory accounting. A lack of materials. S3 S3. S1. The delta being the cost /cycle improvement. P2.4 P4 April 2003 . Delta is the additive cost required by the disconnect. S3.4 P1. Inc. D4 Volume of all materials stored divided by the total volume of the storage facility expressed as a percentage.4 Expediting cycle time for Transfer Process compared to the Standard Cycle time for the Transfer Process. S2. The time required for a supplier to complete a single cycle. EM. The time interval from the receipt of a performance standard request and the availability of the standard. P2. Desired State Source Identification Cycle metric compared to the As-Is State Source Identification Cycle metric.4 P2.) Total time and/or cost variance to standard related to expediting a product through the Total Source Cycle. Costs associated with the Deliver Processes including execution. The percentage of time a supplier completes a commitment to a customer to ship or deliver an order within 24 hours. 273 P2. Time and/or Cost Reduction related to Expediting the Transfer Process. P2. M3.3. Stock Outs or In Stocks Metric Storage Space Utilization Metric Supplier Cycle Time Metric Supplier Fill Rate Metric Supplier On-Time Delivery Performance Metric Supply Chain Finance Costs Metric Time and Cost related to Expediting the Sourcing Processes of Procurement. S2. Costs associated with paying invoices. D1.4.8 M1. components. M2. Delivery.3.4.5. Time and/or Cost reduction related to Source Identification Metric Time Interval Between a Performance Standard Request and Availability.3 S1. M2. auditing physical counts.1 EM. P2.5 P4. The percentage of orders that are fulfilled on or before the original customer requested date (suppliers performance measured by the customer). beginning with the receipt of an order and ending with the fulfillment of that order. and planning.2 EM. From Process Category/ Element #: M1.TERM Staging Time TYPE DEFINITION Metric The percentage of the time that the actual stage cycle time (interval of time required for individual products to move into a temporary holding location to the time of actual shipment or movement into finished goods) complies with customer requirements. Total build time is the average time for build-to-stock or configure-to-order products from when production begins on the released work order until the build is completed and unit deemed shippable. or finished goods that are needed.6 Time interval between regulatory change issuance and implementation of the change. and collecting accounts receivable. Receiving and Transfer.3.

9.6 S1.4. Metric Number of days required to achieve an unplanned sustainable 20% increase in installations Number of days required to achieve an unplanned sustainable 20% increase in orders. All costs associated with the storage and/or movement of the product to the next appropriate stocking location (transfer point) in the supply chain expressed as a percentage of product acquisition costs. Total WIP inventory days of supply are calculated as gross WIP inventory ÷ (value of transfers/365 days). D1. D1.1 S1. EP.2.12.5. e. S2. D1. D3. D2. one pound. S3. D3. EP.5 D1. S2. S3 S1. material. etc.6.2. recalls. Total elapsed time from time of requirement identification to time product is in the appropriate stocking location within the supply chain and the supplier payment is authorized.2. D1. D3. preparation.4 April 2003 . D2. D3. D1.8 M2. D1. D3.3 EP. D2..13. and overhead cost for one unit production. S3.12.10.9. administration. P3. 274 From Process Category/ Element #: EM.11.7.6.g.1. E. Percent of time facilities or equipment are unavailable when scheduled compared to the Total Build Time (Production Time). Metric Number of days required to achieve an unplanned sustainable 20% increase in deliveries. one gallon.1. P4 P3. S3.3.11 D1. and planning.3.2. Includes rework.4. EP. S3.TERM Total Internal and/or External Costs That Are The Result Of Inaccurate Production Rule Details Total Source Cycle Time to Completion TYPE Metric Metric Total Source Lead Time Metric Total Supply Chain Costs Metric Total WIP Inventory DOS Metric Training/ Education Metric Transfer and Product Storage Costs as a % of Product Acquisition Costs Metric Transfer Cycle Time Metric Transportation Costs Metric Unit Cost Metric Unplanned Maintenance Downtime % of total Production Time Upside Delivery Flexibility Upside Installation Flexibility Upside Order Flexibility Metric DEFINITION Direct and indirect costs that can be attributed to inaccurate production details. EP.1. Inc. EP. D3.3. M2. S3.10. EP. P3. M3 EM. Total source lead time is the cumulative lead time required to source 95% of the dollar value of materials from internal and external suppliers.8. D3. D2. scrap. D2. Includes all company paid freight and duties from point of manufacture to end-customer or channel. Total labor.9. S2.4.4 M1. EP. Total elapsed time from the time the product is presented for transfer until product is moved to the next process. The total number of programs aimed at new work methods for experienced workers and short courses in current practices for new employees to increase productivity. EP.7. S1.5.4.4.1. D3.4. S2. Costs associated with the supply chain including execution. D2. one part. S2.2.3.11.8. S3.3 S1.6 D1.10 D1. Metric © Copyright 2003 Supply-Chain Council.

quality. Number of returns within the warranty period. Warranty is a commitment.4 M1. D1.9.3.3. Value added per employee is calculated as total product revenue less total material purchases ÷ total employment (in full-time equivalents).3. Warranty costs include materials. D1.8. M1.3. M2.4.4 S1.3. Value of process and/or procedure provided by a service provider that directly results in cost savings in reviewing and selecting a source.4.3. D3. D2.1 M1. For example.5 M1.3 S3. Yield Variability Metric The condition that occurs when the output of a process is not consistently repeatable either in quantity. Production Process Validation Frequency would refer to the amount of time between the reviews of the Production Process.3.3. Metric Metric Metric © Copyright 2003 Supply-Chain Council. M1. D2.3.3. D3. S3.2 D1.5 S1.5.5.4.3. M3.8 EM.5 M1.1. S2. Number of days required to achieve an unplanned sustainable 20% increase in shipments. M2.7.3. Total elapsed time from time product starts the validation process until it moves to the next process. D2. either expressed or implied. labor and problem diagnosis for product defects.4 April 2003 . M2. or combination of these.10. M2. M1. This generally would be performed periodically to ensure that the process is generating the desired results with the desired inputs. M3. The amount of time between reviews of a process. M1. D3. M2. that a certain fact regarding the subject matter of a contract is presently true or will be true. M2.TERM TYPE DEFINITION Upside Production Flexibility Upside Shipment Flexibility Metric The number of days required to achieve an unplanned sustainable 20% increase in production. All costs associated with verifying the product meets all quality and contract specifications expressed as a percentage of product acquisition costs. M3. S2. M3. M2. M2.1. M2. M1. S3.9. Validation Frequency Metric Value of assets provided by service provider (cost avoidance) Value-Added Employee Productivity Metric Verification Costs as a % of Product Acquisition Costs Verification Cycle Time Metric Warranty and Returns Metric Warranty Costs Metric Yield Metric The ratio of usable output from a process to its input.4 M1. M3. M2.3. M3. S3. M3. Inc.4.5. M3. 275 From Process Category/ Element #: M1.

Faultless The number of invoices issued without error. 276 From Process New Name/Reason for Category/ Exclusion in 5. etc. telephone number) Wrong Product Information (e. pilferage.APPENDIX The Following Metrics were renamed or considered to be Level Four or unnecessary for SCOR Version 5.0 either.0/6. Invoices Examples of potential invoice defects are: Change from customer purchase order without proper customer involvement. invoices.g.g. part number. Number of orders without correct documentation supporting the order. Direct labor availability Manufacturing Total time from demand to release of manufacturing Preparation details Cycle Time (MPCT) Material Total Material carrying costs which include all capital Overhead Cost cost. Key components/materials availability. including packing slips. D3. and risk costs divided by the total Per Dollar of cost of acquiring the material.13. Internal manufacturing capacity. and Shrinkage deterioration of finished goods inventories Inventory Inventory Carrying Costs are the sum of opportunity Carrying Costs cost. name. insurance and taxes.11 Now only listed as "% of Faultless Invoices" P4 Considered to be Level 4 P1 Considered out of scope for PLAN P3. storage cost.g.8 Replaced by "On Time In Full" and "Documentation" to measure Reliability P Considered out of scope for PLAN D1.0 Element#: D2. Material Expenditure © Copyright 2003 Supply-Chain Council. WIP. discounts not applied) Wrong Quantity or Wrong Terms or Wrong Date Finished Goods The costs associated with breakage.12. Build cycle time is the average cycle time for buildto-stock products calculated as the average number of units in process divided by the average daily output in units. channel obsolescence and field sample obsolescence. TERM # of Orders Not Delivered Complete # of Orders with Complete and Accurate Documentation Build Cycle Time DEFINITION Number of orders for which not all of the items on order are delivered in the quantities requested.1 Difficult to measure and calculate P3 Not relevant for SCOR April 2003 . Constraining processes. bills of lading. New Name/reason for exclusion are included for the information of the user.. address. D2..0 by the Technical Committees. product description) Wrong Price (e.3 Difficult to measure and calculate EM. Wrong Customer Information (e. shrinkage.8 Replaced by "On Time In Full" and "Documentation" to measure Reliability D2. so are no longer included in the Model Glossary for Version 6. P3. Inc.. Direct labor availability. Make Flexibility This time it typically takes to implement a sustainable unplanned increase in end product supply of 20% if each of the factors shown below was the only constraint. and finished goods inventory. total obsolescence for raw material.

" and "% Schedules Changed within Supplier's Lead Time" M2.2 Upside Flexibility: The number of days required to achieve an unplanned sustainable 20% increase in production. Replaced by "% of Orders D2.2. The number of changes within the critical time frame defined as the boundary between flexible capacity and fixed capacity.4 M1. Planning Factors. Downside Flexibility: The % order reduction sustainable at 30 days prior to delivery with no inventory or cost penalties. P3. The # of unacceptable products divided by the total number of units produced during the manufacturing run.6.3. shrinkage. insurance Carrying Costs and taxes.1. The percentage of time a product is considered unacceptable against standard criteria. D2.7." "% Schedules Generated within Supplier's Lead Time.1. "% of Parts Received at Point of Use" The number of planning items with complete and accurate Product & Process Data divided by the total number of planning items.0 Element#: P3.2. Plant finished goods inventory days of supply are calculated as gross plant finished goods inventory divided (value of transfers/365 days).5.3. M2. P1.4 Employment" M1. Routing Data The numbers of planning items with complete and Accuracy accurate routing information divided by the total number of planning items.0/6. Percent of Orders Scheduled to Customer Request Percent of parts Delivered to Point of Use The percentage of orders whose delivery is scheduled to within an agreed to time frame of the customer's requested delivery date. Considered to be Level 4 P1. Considered out of scope M3.3 Delivered to Point of Use. 277 EP.3.2 Production Flexibility and Downside Production Flexibility M1. Replaced by "% of Parts M3. EP. EP.) Production Flexibility From Process New Name/Reason for Category/ Exclusion in 5. M2.4.1.3 Considered out of scope P2 Considered Level 4 metric EP. Plan Stability Plant Finished Goods Inventory Days of Supply Product & Process Data Accuracy (Bills of Material.3 Scheduled to Customer Request" The percentage of material receipts that are delivered directly to production or a consolidation point or to point of use on the production floor with no inspection or minor visual/paperwork inspection only. M2. M2. Routings. S3 Replaced by "% Orders/lines Processed Complete.7 Inventory Days of Supply" M1. Considered Level 4 metric EP. S1. etc. Quality Levels Not Defined Raw Material Sum of all costs associated with raw material Inventory inventory: opportunity costs.2.TERM DEFINITION Number of End Products/SKU's Percent Defective Total number of unique end item product offerings. Separated into Upside M3.1.5. M2. P1. Replaced by "Finished Goods D3.8. Inc.2 April 2003 .3 Considered Level 4 metric M1.1. M1. M3. Total Not Defined Manufacturing Employment Touch Labor Not Defined Job Classifications © Copyright 2003 Supply-Chain Council. End items are individually planned and managed. and total obsolescence. EP.2 Not relevant for SCOR S1.1. Replaced by "Total Production M3.3.

The loss of any material. Work-InSum of all costs associated with WIP inventory: Process opportunity cost. and/or assembly that are being worked on or are waiting to be processed within the operations system. Inc.TERM DEFINITION WIP Shrinkage The costs associated with breakage.0 Element#: P3 Considered Level 4 metric P3. pilferage.4 Considered Level 4 metric April 2003 . Inventory and total obsolescence. Carrying Costs © Copyright 2003 Supply-Chain Council. shrinkage. part. P3. insurance and taxes. 278 From Process New Name/Reason for Category/ Exclusion in 5.0/6. and deterioration of WIP inventories.