SCOR Model Workshop: A Lecture-Presentation by Prof. Deepak Jakate
SCOR Model Workshop: A Lecture-Presentation by Prof. Deepak Jakate
SCOR Model Workshop: A Lecture-Presentation by Prof. Deepak Jakate
Workshop
Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source
Top Level Source Make Deliver basis of competition performance targets are set.
(Process Types)
Return Return
2
A company’s supply chain can be “configured-to-
Configuration Level order” at Level 2 from the core “process
(Process categories.” Companies implement their
Categories) operations strategy through the configuration
they choose for their supply chain.
Order fulfillment (Sum actual lead times for all orders shipped)/ (total # of
lead time orders shipped) = time (in days)
Perfect order (total orders shipped on time and in full – orders with
fulfillment faulty documentation – orders with shipping
damage)/(total # of orders received) = %
Supply Chain (order fulfillment lead time + source cycle time) = time (in
response time days)
The transfer of accepted product to the appropriate stocking location within the supply chain. This includes all of the
activities associated with repackaging, staging, transferring and stocking product. For service this is the transfer or
application of service to the final customer or end user.
Implement
Americas--->
Europe--->
Asia--->
BI Performer - SCOR based SAP
BW Solution from Infosys
•Provides SCOR based reports that enable
improvements in supply chain efficiency.
•A user friendly portal guides business users through
these reports enabling them to analyze their supply
chain performance on demand. These reports can be
downloaded into spreadsheets for further analysis.
•The robust logical data model uses
standardized metadata thereby
allowing business to seamlessly
integrate it with existing multi –
system landscape.
•Allows best in class portability 7
control over supply chain processes.
•Infosys has enhanced the SCOR model
by providing industry benchmark
values for various parameters.
How does SCOR fit with Six Sigma?
DMAIC SCOR
•Analyze Basis
• Define
of Competition
• Measure •Configure Supply Chain
• Analyze •Align Performance Levels,
• Improve Practices and Systems
•Implement Supply
• Control
Chain Changes
Six Sigma Supply Chain Process
Improvement using SCOR.
DMAIC - Define SCOR
•DMAIC Project Analyze Basis of
Charter Competition
•Identify Customer • SCOR Project
Requirements: Charter
•Kano Analysis; Template
•Voice of the
•
Customer Analysis Supply Chain
•Identify and Definition Matrix
Document the • Chip Exercise
Process: SIPOC • Thread Diagram
Six Sigma – SCOR (Define Phase)
•Kano analysis — a Japanese diagramming
method to measure customer satisfaction
— is structured to collect data for input to
supply chain competitive requirements.
•The SCR project plan incorporates the
SCOR “chip exercise” to help
summarize supply chain performance
priorities between delivery
reliability,flexibility and responsiveness,
supply chain cost, and asset management
efficiency.
Six Sigma – SCOR (Define Phase)
•The SCR project uses the supply chain “thread
diagram” technique to
serve as the high-level SIPOC (suppliers; inputs;
process; outputs;
•customer) process map. This helps maintain metric
integrity from the level 1 SCOR-card all the way down
to the transaction productivity.
Six Sigma – SCOR (Measure Phase)
DMAIC - Measure SCOR
•Appropriate Analyze Basis
Measures: of Competition
CTQ; Stratification •SCOR Metrics
•Operational Template
Definitions •SCOR-card
•Data Baseline and
Sources,Data Gap Analysis
Collection
and Sampling
DMAIC - SCOR
Measure Analyze Basis of
•Sigma Competition
•SCOR Level 2 and 3
Calculation:
Measures for Material
•Unit, Defect, Flow Efficiency and
Defect Transactional
Opportunities Productivity
•Yield
•Cost of Poor
Quality
Six Sigma – SCOR (Analyze Phase)
DMAIC- Analyze
•Data Analysis:
Pareto Chart, Run Chart,
Histogram, Scatter Plot and
Fishbone Analysis.
•Process Analysis:
Detailed Process Maps, Cross
Functional Process Maps,
Process Value and Time
Six Sigma – SCOR (Analyze Phase)
SCOR - Configure Supply Chain;
Align Performance, Practices, and
Systems
•AS IS Material Flow: Geographic
Map;
•Transportation, Inventory,
Warehouse
•and Returns Expense Summary;
•Delivery Performance and Order
Fulfillment
•Lead Time Summary
Six Sigma – SCOR (Analyze Phase)
SCOR - Configure Supply Chain;
Align Performance, Practices, and
Systems
•AS IS Work and Information Flow:
•Staple Yourself Analysis;
•Swim Diagram;
•Transactional productivity for
purchase,
•work, replenishment and sales
orders;forecasts; and return
Six Sigma – SCOR (Improve Phase)
DMAIC - Improve
• Generate Creative Solutions
• “Cook the Solution”
• Select and Solution Impact - Effort
Matrix;
• Decision Matrix;
• Force Field Analysis
• Pilot the Solution
• Full Scale Roll Out
Six Sigma – SCOR (Improve Phase)
SCOR - Configure Supply Chain; Align
Performance, Practices, and Systems;
Implement Supply Chain Changes
•TO BE Material Flow: SCOR Level 2
Configuration
•Strategy and Thread Diagram;
•Appropriate Leading Practices;
•TO BE Work and Information Flow:
SCOR Business Blueprint;
•Application Architecture — Use Case;
•Organizational Design — Swim Lane
Efficiency
TO BE Work and Information Flow:
SCOR Business Blueprint;
Application Architecture — Use
Case;
Organizational Design — Swim
Lane Efficiency
Implement Supply Chain Changes:
Detailed Solution Design;
Pilot and Evaluation;
Roll Out Solution
Six Sigma – SCOR (Control Phase)
DMAIC - Control
•Discipline
•Documenting the Improvement
•Keeping Score
•Process Management Plan
SCOR - Implement Supply Chain
Changes
•Supply Chain Program
Management Office
•TO BE Business Blueprint,
associated Material Flow Thread
Diagrams, Supply Chain Definition
Matrix
•SCORcard
•Organizational Responsibility
Matrix
How can Six Sigma and Lean make
a SCOR model more effective?
•Building a supply chain model or process with using a
highly standardized structure enables an organization
to detect and eliminate process variation. This is
because variation from a well-known standard is
easily detected, analyzed and eliminated using Lean,
Six Sigma and similar improvement methodologies
•Lean methods can be applied to simplify, standardize
and mistake proof process workflows prior to
migration to a SCOR model
•Six Sigma methods can be used to analyze customer
and process data to identify repeatable patterns
associated with the root causes of poor operational
performance. These types of analyses also can be
used to build quantified models of a system's metrics
as described by the Six Sigma expression Y=f(X).
•In other situations, when customization is required to
match a specific supply chain operational design,
Design for Six Sigma tools and methods can be used
to augment the basic SCOR model
SCOR Model's Hierarchal Levels
Integrating Organizational Process Workflows
A SCOR model also helps to integrate organizational process workflows and their
internal operational work tasks into a coherent whole within a global supply
chain. Standardizing operational methodologies ensures that a common
approach is taken by supply chain participants to development of procedures
and metrics. This tends to integrate rather than isolate operational segments.
To the extent that there are process breakdowns Lean Six Sigma methods can be
used to identify and eliminate their root causes.
Six Sigma methods are very useful in identifying and analyzing the voice of the
customer during the deployment of SCOR methodology and development of a
SCOR model within a supply chain.
Lean methods are used to simplify and eliminate non-essential operations by
identifying value-adding and non-value-adding operations.
Integrating Organizational Process Workflows
At the process category level (Level 2) the measurements are stratified into four
diagnostic elements for each specific PLAN, SOURCE, MAKE and DELIVER process
The opportunity that the Balanced Scorecard and the SCOR model together
present is one of a disciplined, organized, and systemic means of effectively
measuring supply chain performance
The Inclusion of Supply Chain Risk in the SCOR Framework
• The Version 9.0 framework now includes the following supply chain
risk management enablers, along with some recommended metrics
for measurement:
Plan
• Manage Supply Chain Plan Risk (EP.9)- defined as the process for
identifying, coordinating and managing supply chain risks by aligning
with the overall business risk management program. This enabler
includes identifying the potential risks, assessing the probability and
potential impact of risks, and planning risk mitigation strategies.
Select Performance Attributes:
• Supply Chain Agility
Industry Benchmark Comparison (%)
Options or Hedge Rating (%)
• Supply Chain Costs
Mitigation Cost overall or event ($)
The Inclusion of Supply Chain Risk in the SCOR Framework
Source
Manage Supply Chain Source Risk (ES.9)- includes the identifying and
assessing of Source risks that could impact the organization’s or the
supplier’s ability to deliver materials in a timely manner, at reasonable
cost, and with acceptable quality.
Select Performance Attributes:
• Supply Chain Reliability
Supplier Mitigation Plans Implemented (percent)
VAR of product/customer performance
Age of Supplier Risk Data (months)
• Supply Chain Responsiveness
External Event Response (average days)
• Supply Chain Agility
Internal event Response Time (average days)
• Supply Chain Costs
Mitigation Cost overall or event ($)
The Inclusion of Supply Chain Risk in the SCOR Framework
Make
Manage Supply Chain Make Risk (EM.9)- the process of managing risks related to
producing products on-time at a reasonable cost with good quality, as well as
planning and implementing responses to Make risks.
Select Performance Attributes:
• Supply Chain Reliability
Supplier Mitigation Plans Implemented (percent)
Value at Risk (Make)
Age of Supplier or Customer Risk Data (months)
• Supply Chain Responsiveness
External Event Response (average days)
• Supply Chain Agility
Industry Benchmark Comparison (5)
Internal event Response Time (average days)
• Supply Chain Costs
Mitigation Cost overall or event ($)
The Inclusion of Supply Chain Risk in the SCOR Framework
Deliver
Manage Supply Chain Deliver Risk (ED.9)- the process of managing risks
that could impact the company’s ability to deliver product on-time at
a reasonable cost and quality.
Select Performance Attributes:
• Supply Chain Reliability
Value at Risk (Deliver)
Age of Product/Customer Risk Data (months)
• Supply Chain Responsiveness
External Event Response (average days)
• Supply Chain Agility
Industry Benchmark Comparison (percentage)
Internal Event Response (average days)
• Supply Chain Costs
Mitigation Cost overall or by event ($)
The Inclusion of Supply Chain Risk in the SCOR Framework
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