SCOR model Definice procesů pro SC design Procesní rámce pro SCM ̶ SCOR model (Supply chain operation reference model vytvořený Supply chain council) ̶ GSCF model (Flobal supply chain forum model vytvořený Supply chain management institute) ̶ Jejich smyslem je snaha o uspokojení potřeb zákazníka ̶ Indetifikují procesy v rámci SCM, které mohou být implementovány a hodnocení organizací ̶ Rozdíl mezi nimi – GSCF zachycuje všechny podnikové funkce, SCOR ̶ Jedná se o procesní referenční model, ̶ Reference models are generic conceptual models that formalise recommended practices for a certain domain ̶ Process reference model - represents dynamic aspects of an enter-prise, e.g. activity sequences, organizational activities required to satisfy customer needs, control-flows between activities, particular dependency constraints. To use a par-ticular reference model, it must be adapted to the requirements of a particular enter-prise. (14) (PDF) Business Process Reference Models: Survey and Classification. Available from: https://www.researchgate.net/publication/221585953_Business_Process_Reference_Models _Survey_and_Classification [accessed Mar 24 2021]. SCOR model ̶ product of Supply Chain Council,Inc, nezisková organizace, vytvořený v roce 1996 ̶ evaluating and comparing supply chain activities and performance. ̶ It provides a unique framework that links business process, metrics, best practices and technology 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. 5 Combines Best Techniques (hlavní pilíře modelu) ̶ 3 techniques become 1 integrated approach Copyright © Supply Chain Council, 2008. All rights reserved Capture the ‘As-is’ business activity structure and derive the future ‘To-be’ state Quantify the operational performance of similar companies and establish internal targets based on ‘best in class’ results Characterize the management practices and software solutions that result in superior performance Capture the ‘As-is’ business activity structure and derive the future ‘To-be’ state Quantify the operational performance of similar companies and establish internal targets based on ‘best in class’ results Characterize the management practices and software solutions that result in superior performance Business Process Re-Engineering Benchmarking Best Practices Analysis Process Reference Framework 5 6 SCOR Copyright © Supply Chain Council, 2008. All rights reserved 6 Customerprocesses Supplierprocesses Supply Chain Customerprocesses Supplierprocesses Supply Chain Process, arrow indicates material flow direction Process, no material flow Information flow DeliverMakeSource ReturnReturn Plan 8 SCOR Hierarchy Level 1 Level 2 Level 3 Level 4 Level 5 Scope Configuration Activity Workflow Transactions Differentiates Business Differentiates Complexity Names Tasks Sequences Steps Links Transactions Defines Scope Differentiates Capabilities Links, Metrics, Tasks and Practices Job Details Details of Automation Framework Language Framework Language Framework Language Industry or Company Language Technology Specific Language Copyright © Supply Chain Council, 2008. All rights reserved EDI XML 8 S1 Source Stocked Product S Source S1.2 Receive Product Standard SCOR practices Company/Industry definitions 9 Execution Processes • Processes: Source, Make and Deliver • Objective: value-add, revenue generating Copyright © Supply Chain Council, 2008. All rights reserved 9 Customerprocesses Supplierprocesses Supply Chain Customerprocesses Supplierprocesses Supply Chain DeliverMakeSource ReturnReturn Plan 10 Planning Processes • Processes: Plan • Objective: Drive/coordinate execution processes Copyright © Supply Chain Council, 2008. All rights reserved 10 Customerprocesses Supplierprocesses Supply Chain Customerprocesses Supplierprocesses Supply Chain DeliverMakeSource ReturnReturn Plan 11 Enable Processes ̶ Processes:Enable Plan, Enable Source, Enable Make, Enable Deliver and Enable Return Copyright © Supply Chain Council, 2008. All rights reserved 11 Customerprocesses Supplierprocesses Supply Chain Customerprocesses Supplierprocesses Supply Chain DeliverMakeSource ReturnReturn Plan 12 Reverse Processes • Processes: Return (Source Return, Deliver Return) • Objective: reverse material flows Copyright © Supply Chain Council, 2008. All rights reserved 12 Customerprocesses Supplierprocesses Supply Chain Customerprocesses Supplierprocesses Supply Chain DeliverMakeSource ReturnReturn Plan 13 Příklad: Source (Process ID: S) • Objectives of this process: • The ordering, delivery, receipt and transfer of raw material items, subassemblies, product and/or services. • Key processes comprehended: • Schedule product deliveries • Receive, inspect, and hold materials • Issue material to Make or Deliver processes • Supplier/Vendor Agreements • Vendor certification and feedback, sourcing quality • Manage Raw Materials inventories • Freight, import/export documentation ̶ Hint: Receiving processes? Probably Source in SCOR Copyright © Supply Chain Council, 2008. All rights reserved 13 14 Source Process Elements Copyright © Supply Chain Council, 2008. All rights reserved Stocked Product (S1) Make-to-Order (S2) Engineer-to-Order (S3) S2.1 Schedule Product Deliveries S3.1 Identify Sources of Supply S3.2 Select Final Supplier(s) and Negotiate S1.1 Schedule Product Deliveries S3.3 Schedule Product Deliveries S1.2 Receive Product S2.2 Receive Product S3.4 Receive Product S1.3 Verify Product S2.3 Verify Product S3.5 Verify Product S1.4 Transfer Product S2.4 Transfer Product S3.6 Transfer Product S1.5 Authorize Supplier Payment S2.5 Authorize Supplier Payment S3.7 Authorize Supplier Payment 14 15 Make (Process ID: M) ̶ Objectives of this process: ̶ The process of adding value to products through mixing, separating, forming, machining, and chemical processes. ̶ Key Processes Comprehended: ̶ Schedule production, request and receive material from Source and/or Make processes ̶ Manufacture, assemble/disassemble and test product, package, hold/release product ̶ Managing product quality and engineering changes ̶ Managing facilities and equipment, production status workflow and capacity management ̶ Manage Work-In-Process (WIP) inventories ̶ Hint: Itemnumber change? Probably Make in SCOR Copyright © Supply Chain Council, 2008. All rights reserved 15 16 Make Process Elements Copyright © Supply Chain Council, 2008. All rights reserved Make-to-Stock (M1) Make-to-Order (M2) Engineer-to-Order (M3) M1.1 Schedule Production Activities M2.1 Schedule Production Activities M3.1 Finalize Production Engineering M3.2 Schedule Production Activities M1.2 Issue Material M2.2 Issue Sourced/InProcess Product M3.3 Issue Sourced/In-Process Product M1.3 Produce and Test M2.3 Produce and Test M3.4 Produce and Test M1.4 Package M2.4 Package M3.5 Package M1.5 Stage Product M2.5 Stage Finished Product M3.6 Stage Finished Product M1.6 Release Product to Deliver M2.6 Release Finished Product to Deliver M3.7 Release Product to Deliver M1.7 Waste Disposal M2.7 Waste Disposal M3.8 Waste Disposal 16 17 Deliver (Process ID: D) ̶ Objectives of this process: ̶ Perform customer-facing order management and order fulfillment activities including outbound logistics. ̶ Key processes comprehended: ̶ Product, service and price quotations ̶ Order entry and maintenance ̶ Order consolidation, picking, packing, labeling and shipping ̶ Import/export documentation ̶ Customer delivery and installation ̶ Logistics and Freight Management ̶ Manage Finished Goods inventories ̶ Hint: Order taking or Shipping? Probably Deliver in SCOR 17Copyright © Supply Chain Council, 2008. All rights reserved 18 Control processes: Plan, Enable ̶ Plan and Enable processes prepare the supply-chain to ensure smooth execution ̶ Planning processes balance the need for resources, materials, capacity, etc. with the availability of these resources. This includes prioritization if needed. ̶ Enable processes address 8 control aspects for the supply chain. They monitor compliance, deliver information from other process areas and highlight dependencies on these other process areas. They also support maintenance of relationships with suppliers. Copyright © Supply Chain Council, 2008. All rights reserved 18 19 Plan (Process ID: P) ̶ Objectives of this process: ̶ The process of determining requirements and corrective actions to achieve supply chain objectives ̶ Key Processes Comprehended: ̶ Supply chain revenue planning/forecasting ̶ Materials requirement planning ̶ Factory, repair, maintenance facilities capacity planning ̶ Distribution requirements planning ̶ Manage planning parameters ̶ Hint: Forecasting, S&OP, MRP? Probably Plan in SCOR Copyright © Supply Chain Council, 2008. All rights reserved 19 20 Plan Processes ̶ Planning is an iterative process: 1. The output of Plan Supply Chain is the input for Plan Source, Plan Make, Plan Deliver and Plan Return 2. The output of Plan Source, Plan Make, Plan Deliver and Plan Return are inputs for Plan Supply Chain; The output of one cycle is the input for the next cycle Plan Make Plan Source Plan Supply ChainPlan Supply Chain P1.1 P1.2 P1.3 P1.4 P1.1 P1.2 P1.3 P1.4 P2.1 P2.2 P2.3 P2.4 P3.1 P3.2 P3.3 P3.4 2 1 to P3.2 end full cycle begin next cycle Copyright © Supply Chain Council, 2008. All rights reserved 20 21 Enable Processes ̶ Objective: The Enable processes are five groups of processes under Plan, Source, Make , Deliver and Return with 3 distinct types of objectives: 1.Manage process performance 2.Manage process control data 3.Manage process relationships ̶ Key processes comprehended: ̶ Managing business rules and monitoring adherence ̶ Measuring supply chain performance and determine corrective action ̶ Managing risk and environmental impact ̶ Managing the supply chain network and facilities ̶ Hint: Equipment or plant maintenance? Probably Enable Copyright © Supply Chain Council, 2008. All rights reserved 21 22 Return (Process ID: R) ̶ Objective of this process: ̶ Moving material from customer back through supply chain to address defects in product, ordering, or manufacturing, or to perform upkeep activities. ̶ Key Processes Comprehended ̶ Identification of the need to return a product or asset ̶ Requesting and issuing return authorization ̶ Inspection and disposition decision-making ̶ Transfer/Disposition of product or asset ̶ Managing return transportation capacity ̶ Managing returned material inventories ̶ Hint: Reverse material flow? Probably Return in SCOR Copyright © Supply Chain Council, 2008. All rights reserved 22 23 Return Configurations ̶ Return Defective Products (Process IDs: SR1 and DR1) ̶ The return of products because the product is defective, the wrong product was ordered or shipped. ̶ Return Maintenance, Repair & Overhaul (IDs: SR2 and DR2) ̶ The return of products or assets to perform preventative maintenance, (end-of-life) overhaul or repairs due to breakage/aging with use ̶ Return Excess Products (Process IDs SR3 and DR3) ̶ The return of excess inventories and inventories of product which will be retired (end-of-life excess). The product is new and in original packaging. ̶ SR = Source Return, DR = Deliver Return Copyright © Supply Chain Council, 2008. All rights reserved 23 24 Performance Attributes Attribute Strategy Reliability (RL) Consistently getting the orders right, product meets quality requirements Responsiveness (RS) The consistent speed of providing products/services to customers Agility (AG) The ability to respond to changes in the market (external influences) Cost (CO) The cost associated with managing and operating the supply chain Assets (AM) The effectiveness in managing the supply chain’s assets in support of fulfillment Copyright © Supply Chain Council, 2008. All rights reserved CustomerInternal 24 Question: What is/are the most important attributes to achieve your supply chain strategy? 25 KPIs; Strategic Metrics ̶ Measuring strategy: KPIs are strategic (level 1) ̶ Diagnostic SCOR metrics ̶ Level 2- Linked to business objectives ̶ Highlight the gap in performance ̶ Change over time is more valuable than a single sample Attribute Strategic metric Reliability RL.1.1 Perfect Order Fulfillment Responsiveness RS.1.1 Order Fulfillment Cycle Time Agility AG.1.1 Upside Supply Chain Flexibility AG.1.2 Supply Chain Upside Adaptability AG.1.3 Supply Chain Downside Adaptability Cost CO.1.1 Supply Chain Management Cost CO.1.2 Cost of Goods Sold Assets AM.1.1 Cash-to-Cash Cycle Time AM.1.2 Return on Supply Chain Fixed Assets AM.1.3 Return on Working Capital Copyright © Supply Chain Council, 2008. All rights reserved CustomerInternal 25 26 Strategic Reliability Metric Metric: RL.1.1 Perfect Order Fulfillment Definition: The percentage of orders delivered on-time, in full. Components of perfect include all items and quantities ontime, using the customer’s definition of on-time, complete documentation and in the right condition Calculation: [Total Perfect Orders] / [Total Number of Orders] Diagnostic Metrics: (examples) • RL.2.1 % Orders Delivered in Full • RL.2.4 Perfect Condition • RL.3.19 % Orders Received Defect Free • RL.3.24 % Orders Received Damage Free Notes: An order is perfect only if all L2/L3 metrics are perfect; An order must be: on-time AND in-full AND right condition AND right documentation Copyright © Supply Chain Council, 2008. All rights reserved 26 SCOR-Plan Plan Return DeliverMakeSource SCOR-Source Plan Return DeliverMakeSource SCOR-Make Plan Return DeliverMakeSource SCOR-Deliver Plan Return DeliverMakeSource SCOR-Return Plan Return DeliverMakeSource GSCF model