Supply Chain Operations Reference Model (SCOR

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Ozgun C. Demirag

Supply Chain Operations Reference Model (SCOR): Information about (SCC)
Developed by Supply Chain Council (SCC) SCC: Independent, not-for-profit corporation organized in 1996 by: Global management-consulting firm, Pittiglio Rabin Todd & McGrath (PRTM) and Market research firm, Advanced Manufacturing Research (AMR) in Cambridge, Massachusetts. Started with 69 voluntary companies; now close to 1000 members. SCC Objective: To develop a standard supply-chain process reference model enabling effective communication among the supply chain partners, by
Using standard terminology to better communicate and learn the supply chain issues Using standard metrics to compare and measure their performances

Benchmarking. Capture the “as-is” state of a process and derive the desired “to-be” future state Capture the “as-is” state of a process and derive the desired “to-be” future state Quantify the operational performance of similar companies and establish internal targets based on “best-inclass” results Quantify the operational performance of similar companies and establish internal targets based on “best-in-class” results Characterize the management practices and software solutions that result in “best-inclass” performance Process Reference Model Characterize the management practices and software solutions that result in “bestin-class” performance Best Practices Analysis Business Process Reengineering Benchmarking .Supply Chain Operations Reference Model (SCOR) SCOR: Integrates Business Process Reengineering. and Process Measurement into a cross-functional framework.

measure and evaluate supply chain configurations.Supply Chain Operations Reference Model (SCOR) The Primary Use of SCOR: To describe. SCOR contains: Standard descriptions of management processes A framework of relationships among the standard processes Standard metrics to measure process performance Management practices that produce best-in-class performance Enables the companies to: Evaluate and compare their performances with other companies effectively Identify and pursue specific competitive advantages Identify software tools best suited to their specific process requirements .

from order entry through paid invoice. software. • All product (physical material and service) transactions. including equipment. etc. from supplier’s supplier to customer’s customer. • All market interactions.Supply Chain Operations Reference Model (SCOR): Boundaries SCOR spans: • All customer interactions. bulk product. spare parts. supplies. including: • Sales and marketing (demand generation) • Research and technology development • Product development • Some elements of post-delivery customer support . from the understanding of aggregate demand to the fulfillment of each order SCOR does not attempt to describe every business process or activity.

Supply Chain Operations Reference Model (SCOR):Basic Management Processes Plan-Source-Make-Deliver-Return Plan Deliver Source Return Make Deliver Return Source Return Make Deliver Return Source Return Make Deliver Return Source Supplier’s Supplier Supplier (Internal or External) Your Company Customer (Internal or External) Customer’s Customer Plan-Source-Make-Deliver-Return provide the organizational structure of the SCOR-model .

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

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

Level 1 Performance Metrics Performance Attributes Delivery performance Fill rate Perfect order fulfillment Order fulfillment lead time Supply Chain Response Time Production flexibility Total SCM cost Cost of Goods Sold Value-added productivity Warranty cost or returns processing cost Cash-to-cash cycle time Inventory days of supply Asset turns Customer-Facing Supply Chain Reliability Responsiveness Flexibility Internal-Facing Cost Assets              .

There is hierarchy among the metrics in different levels. Example: Metric related with Delivery Performance: Total number of products delivered on time and in full based on a commit date. Metric related with Production: Ratio Of Actual To Theoretical Cycle Time . Level 1 Metrics are created from lower level calculations (Level 2 metrics) Level 2 Metrics: Associated with a narrower subset of processes.Level Metrics Facts Level 1 Metrics are primary. They do not necessarily relate to a SCOR Level 1 process (Plan-SourceMake-Deliver-Return). high level measures that may cross multiple SCOR processes.

or manages information or relationships on which planning and execution processes rely .Level 2 Process Types and Definitions Planning: A process that aligns expected resources to meet expected demand requirements. Balance aggregated demand and supply Consider consistent planning horizon (Generally) occur at regular. Scheduling/sequencing Transforming product Moving product to the next process Enable: A process that prepares. maintains. periodic intervals Execution: A process triggered by planned or actual demand that changes the state of material goods.

ED. ES. ER: Enable corresponding SCOR Processes Level 2 Process Categories .P1: Plan Supply Chain P2-P5: Plan SCOR Process S1: Source Stocked Product S3: Source Engineer-to-Order Product S2: Source Make-to-Order Product M1: Make-to-Stock M2: Make-to-Order M3: Engineer-to-Order D1: Deliver Stocked Product D2: Deliver Make-to-Order Product D3: Deliver Engineer-to-Order Product D4: Deliver Retail Product (New in Version 6. EM.0) SR1/DR1: Return Defective Product (Source Return/Deliver Return) SR2: Source Return MRO Product (Maintenance. Repair and Overhaul) DR2: Deliver Return MRO Product SR3/DR3: Return Excess Product (Source Return/Deliver Return) EP.

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

Transfer & Product storage costs as a % of Product Acquisition Costs Inventory DOS Features Pay on receipt Specify delivery location and time (to the minute) Specify delivery sequence None Identified Responsiveness Flexibility Cost Assets Best Practices Drive deliveries directly to stock or point-ofuse in manufacturing to reduce costs and cycle time Capability Transfer to Organization . staging. transferring and stocking product. For service this is the transfer or application of service to the final customer or end user.4 Process Element: Transfer Product Process Element Definition The transfer of accepted product to the appropriate stocking location within the supply chain. This includes all of the activities associated with repackaging.Example Continued Process Element Number: S1. Performance Attributes Reliability Metric % Product transferred damage free % Product transferred complete % Product transferred on-time to demand requirement % Product transferred without transaction errors Transfer Cycle Time Time and Cost Reduction related to Expediting the Transfer Process.

Example Continued Inputs Plan Source ES.2 Source ES.4 Make Deliver Product Pull Signals Product Inventory Location WIP Inventory Location Finished Goods Inventory Location Outputs Inventory Availability Plan P2. M3.2.4 .2 Daily Replenishment Requirements Loaded Cart D4.8.2.4 M EM D ED Make M1. M2.1 D4.3 Deliver D1. D4.

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Some Graphical Tools: 1st Step in configuring a SC: Illustrate physical layout. . material flow and place Level 2 execution process categories to describe activities at each location.

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

Easy Design is used for process capture. .Software Package for Modeling SCOR: ARIS EasySCOR The ARIS Toolset and ARIS Easy Design are process modeling tools. The ARIS Toolset is a BPR tool. level 4 is not included. The EasySCOR Modeler is a software package that includes the ARIS Easy Design modeling kit and the SCOR model in ARIS format. ARIS EasySCOR consists of process models that describe the SCOR levels 1 to 3. Implementation level.

Process Map Example created in ARIS EasySCOR Suppliers Supplier Suppliers Assemble/ Package Distribution Centers Geo Ports of Entry Americas---> Europe---> Asia---> .

is not described in SCOR. not the person or organizational element that performs the activity. . the Model focuses on the activity involved. In other words.Observations SCOR describes processes not functions. Level 4. Implementation level.

net/esitteet/scor-faq.changeware.net/esitteet/scor-faq.0 Overview Booklet http://www.gatech.edu/~lfm/8851/Sources/SCOR/SCOR%206.pdf .pdf Supply-Chain Operations Reference-model (SCOR) 6.0% 20OverviewBooklet.pdf http://www.changeware.0 Introduction (in setup files) About ARIS: About ARIS: http://www.isye.References SCOR 6.

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