1. Supply Chain ETI 6134 Dr. Karla Moore
Buenos dias, mi nombre es Karla Moore y es un placer para mi estar hoy con ustedes, para presentarles un modelo de cadenas de suministro conocido a nivel mundial y que permite vizualizar todos los involucrados en ella (ya sea tangible, intangible) para el entendimiento y mejoramiento de las mismas. Este model es llamado Supply Chain Reference Model, SCOR model.
ETI 6134
Dr. Karla Moore

2. Lecture Supply Chain key concepts SCOR model SCOR level of Detail
SCOR Terminology
SCOR Case Study

3. Supply Chain Key Concepts
Process
Supply Chain
Suppliers
Customers
Process owners, Management, etc.
Stakeholders

4. Supply Chain Key Concepts
Feedback
Process
People
Equipment
Method
Procedures
Environment
Materials
Input
Materials
Money
Information
Data
Output
Information
Data
Product
Service
Outcomes
Conditions

5. Supply Chain Key Concepts
Supplier(s)
Developer
(Designer)
Producer
(Manufacturer)
Distributor
(Warehouser)
Customer
(User)
Operational Activities
Maintenance Activities

6. Supply Chain Key Concepts
Requirements
and feedback
Your
Suppliers
Processes
Customers
Inputs
Outputs

7. Supply Chain Factors
Capability: Ability to accomplish all the functions required.
Availability: Ability to respond to any, or all, of the requirements at any point in time when needed.
Quality: Process responsiveness in terms of the objectives to satisfy customers’ needs.

8. SCOR Model Introduced in 1996 by Supply Chain Council.
The SCC is an independent, not-for-profit, global corporation with membership open to all companies and organizations.
Over 800 Company Members.
Chapters in Australia/New Zealand, Brazil, Europe, Japan, North America, Southern Africa, and South East Asia with petitions for additional chapters pending.

9. SCC Organization - Chapters & Staffing
SCC Global Headquarters Pittsburgh, Pennsylvania, USA HP
Japan Chapter Tokyo, Japan
NEC
Europe
Oslo, Norway
Modus Media
North America Chapter
AVNET
South East Asia Chapter Singapore
Venture Inc.
Brazil Chapter
Effective 9/1/03
Southern Africa Johannesburg, South Africa
UTi
Australia/New Zealand Chapter Sydney, Australia
Owens Global Logistics

10. SCOR Model
Integrates the well-known concepts of business process reengineering, benchmarking, and process measurement into a cross-functional framework.
Engineering approach that helps to analyze, design, and improve supply chain performance.
Business Process Reengineering
Best Practices Analysis
Benchmarking
SCOR

11. SCOR Model Business Process Reengineering Best Practices Analysis
Process Reference Model
Benchmarkin g
Capture the “as- is” state of a process and derive the desired “to-be” future state
Quantify the operational performance of similar companies and establish internal targets based on “best- in-class” results
Characterize the management practices and software solutions that result in “best-in-class” performance
Capture the “as-is” state of a process and derive the desired “to-be” future state
Quantify the operational performance of similar companies and establish internal targets based on “best- in-class” results
Characterize the management practices and software solutions that result in “best-in- class” performance

12. SCOR Model
Covers many different departments and contribute enterprises, each with its own values, information systems, structures, and economics.
SCOR spans over:
All supplier / customer interactions.
Order entry through paid invoice.
All physical material transactions.

13. SCOR Model
SCOR Spans:
From the supplier’s supplier to the customer’s customer, including equipment, supplies, spare parts, bulk product, and software.
All market interaction.
From the understanding of aggregate demand to the fulfillment of each order.
Returns.
Describes the business activities associated with all phases of satisfying a customer’s demand.

14. SCOR Management Processes
The Plan process, assesses supply resources;
aggregates and prioritizes demand requirements;
plans inventory for distribution, production, and
material requirements; and plans rough-cut
capacity for all products and all channels.
Supplier
Plan
Customer
Customer’s Customer
Make
Deliver
Source
Internal or External
Your Company
Return
The Deliver process, executes order management
processes; generates quotations; configures product;
creates and maintains customer database; maintains
product/price database; manages accounts receivable,
credits, collections, and invoicing; executes warehouse
processes including pick, pack, and configure; creates
customer-specific packing/labeling; consolidates orders;
ships products; manages transportation processes and
import/export; and verifies performance.
The Source process, obtains, receives,
inspects, holds, issues, and authorizes
payment for raw materials and
purchased finished goods.
The Make process, requests and
receives material; manufactures
and tests product; packaging, holds,
and/or releases product.
Suppliers’ Supplier
SCOR Model
Building block approach
Source connects to supplier
Deliver connects to customer
Not all companies have make
We can model as far up or down the supply chain as we view important (not limited to two tiers)
Customers and / or suppliers can be internal or external
Building Block Approach
Processes Metrics
Best Practice Technology
The Return, defectives, warranties, and
excesses return processing, including
authorization, scheduling, inspection,
transfer, warranties administration,
receiving and verifying defective products,
disposition, and replacement. 21 4

15. SCOR Level of Detail Supply Chain Operations Reference model # Level
Schematic
Comments 1 2 3 4
Configuration
(Process
Categories)
Process
Element Level
(Decompose
Processes)
Plan
Deliver
Make
Source
A company’s supply chain can be “configured-to- order” at Level 2 from approximately 24 core “process categories.”
Companies implement their operations strategy through their unique supply chain configuration.
Companies “fine tune” their Operations Strategy at Level 3
Level 3 defines a company’s ability to compete successfully in its chosen markets and consists of:
Process element definitions
Process element information inputs and outputs
Process performance metrics
Best practices, where applicable
System capabilities required to support best
practices •
Implementation
Elements)
Companies implement specific supply chain management practices at this level
Level 4 defines practices to achieve competitive advantage and to adapt to changing business conditions
Supply Chain Operations Reference model
Top Level
(Process Types)
Level 1 defines the scope and content for the Supply Chain Operations Reference model
Here basis of competition performance targets are set
Not in
Scope
Description
Balance Production Resources with
Production Requirements
Establish Detailed
Production Plans
Identify, Prioritize, and Aggregate
Identify, Assess, and Aggregate
Production Resources
P3.1
P3.3
P3.4
P3.2
Return

16. SCOR Terminology SCOR Management Processes Plan: P Source: S Make: M
Deliver: D
Return: R

17. SCOR Terminology Process Types and Categories
Planning: P1, P2, P3, P4, P5
P1: Plan Supply Chain
P2: Plan Source
P3: Plan Make
P4: Plan Deliver
P5: Plan Return

18. SCOR Terminology Process Types and Categories:
Execution: S1-S3, M1-M3, D1-D4, R1-R3
S1: Source Stocked Product
S2: Source Make-to-Order Product
S3: Source Engineer-to-Order Product
M1: Make-to-Stock
M2: Make-to-Order
M3: Engineer-to-Order
D1: Deliver Stocked Product
D2: Deliver Make-to-Order
D3: Deliver Engineer-to-Order Product
D4: Deliver Retail Product

19. SCOR Terminology Process Types and Categories
Execution: S1-S3, M1-M3, D1-D4, R1-R3
SR1: Source Return Defective Product
DR1: Deliver Return Defective Product
SR2: Source Return MRO Product
DR2: Deliver Return MRO Product
SR3: Source Return Excess Product
DR3: Deliver Return Excess Product
MRO: Maintenance, Repair, and Operating Supplies

20. SCOR Terminology Process Types and Categories
Enable: EP, ES, EM, ED, ER
EP1-EP9
ES1-ES9
EM1-EM8
ED1-ED8
ER1-ER8

21. SCOR Terminology

22. SCOR Terminology P1: Plan Supply Chain P2: Plan Source
P1.1: Identify, Prioritize, & Aggregate Supply-Chain Requirements
P1.2: Identify, Assess, & Aggregate Supply-Chain Resources
P1.3: Balance Supply-Chain Resources with Supply-Chain Requirements
P1.4: Establish & Communicate Supply-Chain Plans
P2: Plan Source
P2.1: Identify, Prioritize, & Aggregate Product Requirements
P2.2: Identify, Assess, & Aggregate Product Resources
P2.3: Balance Product Resources with Product Requirements
P2.4: Establish & Communicate Sourcing Plans

23. SCOR Terminology P3: Plan Make P4: Plan Deliver
P3.1: Identify, Prioritize, & Aggregate Production Requirements
P3.2: Identify, Assess, & Aggregate Production Resources
P3.3: Balance Production Resources with Production Requirements
P3.4: Establish & Communicate Production Plans
P4: Plan Deliver
P4.1: Identify, Prioritize, & Aggregate Delivery Requirements
P4.2: Identify, Assess, & Aggregate Delivery Resources
P4.3: Balance Delivery Resources with Delivery Requirements
P4.4: Establish & Communicate Delivery Plans

24. SCOR Terminology P5: Plan Return Enable Plan
P5.1: Identify, Prioritize, & Aggregate Return Requirements
P5.2: Identify, Assess, & Aggregate Return Resources
P5.3: Balance Return Resources with Return Requirements
P5.4: Establish & Communicate Return Plans
Enable Plan
EP1: Manage Business Rules for Plan Processes
EP2: Manage Performance of Supply Chain
EP3: Manage Plan Data Collection
EP4: Manage Integrated Supply Chain Inventory
EP5: Manage Integrated Supply Chain Capital Assets
EP6: Manage Integrated Supply Chain Transportation
EP7: Manage Planning Configuration
EP8: Manage Plan Regulatory Requirements & Compliance
EP9: Align Supply Chain Unit Plan with Financial Plan

25. SCOR Terminology S1: Source Stocked Product
S1.1: Schedule Product Deliveries
S1.2: Receive Product
S1.3: Verify Product
S1.4: Transfer Product
S1.5: Authorize Supplier Payment
S2: Source Make-to-Order Product
S2.1: Schedule Product Deliveries
S2.2: Receive Product
S2.3: Verify Product
S2.4: Transfer Product
S2.5: Authorize Supplier Payment

26. SCOR Terminology S3: Source Engineering-to-Order Product
S3.1: Identify Sources of Supply
S3.2: Select Final Supplier(s) and Negotiate
S3.3: Schedule Product Deliveries
S3.4: Receive Product
S3.5: Verify Product
S3.6: Transfer Product
S3.7: Authorize Supplier Payment
Enable Source
EP1: Manage Sourcing Business Plan
EP2: Assess Supplier Performance
EP3: Maintain Source Data
EP4: Manage Product Inventory
EP5: Manage Capital Assets
EP6: Manage Incoming Product
EP7: Manage Supplier Network
EP8: Manage Import/Export Requirements
EP9: Manage Supplier Agreements

27. SCOR Terminology M1: Make-to-Stock
M1.1: Schedule Product ion Activities
M1.2: Issue Product
M1.3: Produce and Test
M1.4: Package
M1.5: Stage Product
M1.6: Release Product to deliver
M2: Make-to-Order
M2.1: Schedule Product ion Activities
M2.2: Issue Product
M2.3: Produce and Test
M2.4: Package
M2.5: Stage Product
M2.6: Release Product to deliver

28. SCOR Terminology M3: Engineering-to-Order M3.1: Finalize Engineering
M3.2: Schedule Production Activities
M3.3: Issue Product
M3.4: Produce and Test
M3.5: Package
M3.6: Stage Product
M3.7: Release Product to Deliver
Enable Make
EM1: Manage Production Rules
EM2: Manage Production Performance
EM3: Manage Make Information
EM4: Manage In-Process Products (WIP)
EM5: Manage Equipment and Facilities
EM6: Manage Transportation
EM7: Manage Production Network
EM8: Manage Production Regulatory Compliance

29. SCOR Terminology D1: Deliver Stocked Product
D1.1: Process Inquiry & Quote
D1.2: Receive, Enter & Validate Order
D1.3: Reserve Inventory & Determine Delivery Date
D1.4: Consolidate Orders
D1.5: Build Loads
D1.6: Route Shipments
D1.7: Select Carries & Rate Shipments
D1.8: Receive Product from Source or Make
D1.9: Pick Product
D1.10: Pack Product
D1.11: Load Product & Generate Shipping Docs
D1.12: Ship Product
D1.13: Receive & Verify Product by Customer
D1.14: Install Product
D1.15: Invoice

30. SCOR Terminology D2: Deliver Make-to-Order
D2.1: Process Inquiry & Quote
D2.2: Receive, Configure, Enter & Validate Order
D2.3: Reserve Inventory & Determine Delivery Date
D2.4: Consolidate Orders
D2.5: Build Loads
D2.6: Route Shipments
D2.7: Select Carries & Rate Shipments
D2.8: Receive Product from Source or Make
D2.9: Pick Product
D2.10: Pack Product
D2.11: Load Product & Generate Shipping Docs
D2.12: Ship Product
D2.13: Receive & Verify Product by Customer
D2.14: Install Product
D2.15: Invoice

31. SCOR Terminology D3: Deliver Engineer-to-Order Product
D3.1: Obtain & Respond to RFP/RFQ
D3.2: Receive and Review Contract
D3.3: Enter Order, Commit, Resources & Launch Program
D3.4: Schedule Installation
D3.5: Build Loads
D3.6: Route Shipments
D3.7: Select Carries & Rate Shipments
D3.8: Receive Product from Source or Make
D3.9: Pick Product
D3.10: Pack Product
D3.11: Load Product & Generate Shipping Docs
D3.12: Ship Product
D3.13: Receive & Verify Product by Customer
D3.14: Install Product
D3.15: Invoice

32. SCOR Terminology D4: Deliver Retail Product
D4.1: General Stocking Schedule
D4.2: Receive Product at the Store
D4.3: Pick Product from Backroom
D4.4: Stock Shelf
D4.5: Fill Shopping Cart
D4.6: Checkout
D4.7: Deliver and/or install
Enable Source
ED1: Manage Deliver Business Rules
ED2: Assess Deliver Performance
ED3: Manage Deliver Information
ED4: Manage Finished Product Inventory
ED5: Manage Deliver Capital Assets
ED6: Manage Transportation
ED7: Manage Product Life Cycle
ED8: Manage Import/Export Requirements

33. SCOR Terminology SR1: Source Return Defective Product
SR1.1: Identify Defective Product Condition
SR1.2: Disposition Defective Product
SR1.3: Request Defective Product Return Authorization
SR1.4: Schedule Defective Product Shipment
SR1.5: Return Defective Product
DR1: Deliver Return Defective Product
DR1.1: Authorize Defective Product Return
DR1.2: Schedule Defective Return Receipt
DR1.3: Receive Defective Product (includes verify)
DR1.4: Transfer Defective Product

34. SCOR Terminology SR2: Source Return MRO Product
SR2.1: Identify MRO Product Condition
SR2.2: Disposition MRO Product
SR2.3: Request MRO Return Authorization
SR2.4: Schedule MRO Shipment
SR2.5: Return MRO Product
DR2: Deliver Return MRO Product
DR2.1: Authorize MRO Product Return
DR2.2: Schedule MRO Return Receipt
DR2.3: Receive MRO Product (includes verify)
DR2.4: Transfer MRO Product

35. SCOR Terminology SR3: Source Return Excess Product
SR3.1: Identify Excess Product Condition
SR3.2: Disposition Excess Product
SR3.3: Request Excess Product Return Authorization
SR3.4: Schedule Excess Product Shipment
SR3.5: Return Excess Product
DR3: Deliver Return Excess Product
DR3.1: Authorize Excess Product Return
DR3.2: Schedule Excess Return Receipt
DR3.3: Receive Excess Product (includes verify)
DR3.4: Transfer Excess Product

36. SCOR Terminology Enable Return
ER1: Manage Business Rules for Return Processes
ER2: Manage Performance of Return Processes
ER3: Manage Return Data Collection
ER4: Manage Return Inventory
ER5: Manage Return Capital Assets
ER6: Manage Return Transportation
ER7: Manage Return Network Configuration
ER8: Manage Return Regulatory Requirements & Compliance

37. SCOR Terminology

38. SCOR Terminology

39. SCOR Terminology

40. Mapping Material Flow (S1, D1) (SR1,DR1,DR3) Manufacturing
Warehouse
Manufacturing
Warehouse
European Supplier
(S1, S2, M1, D1) (SR1,,DR1)
Warehouse
(S1) (SR1,SR3)
(S1) (SR1,SR3)
(D2) (DR1)
(S1, D1) (SR1,DR1,DR3)
Latin American
Suppliers
Other Suppliers
(S1, D1) (SR1, DR3)
(D1)
Warehouse
(D1)
(S1) (SR1,SR3)
(S1) (SR1,SR3)
(S1, D1) (SR1,DR1,DR3)

41. SCOR Benefits Consumer Foods
Project Time (Start to Finish) – 3 months.
Investment - $50,000 US.
1st Year Return - $4,300,000 US.
Electronics
Project Time (Start to Finish) – 6 months.
Investment - $3-5 Million US.
Projected Return on Investment - $ 230 Million US.

42. SCOR level of detail Agenda Review Process SCOR Level 1 Supply Chain
INTERNAL
Building & Fire Inspection Division
Community Resources Division
Development Review Division
Planning and Zoning Division
ENABLING PROCESSES
• ENGINEERING
• QUALITY
• IM
Plan
Deliver
Make
Return
Source
Agenda Review Process
CUSTOMERS
CUSTOMER’S
CUSTOMER
Board of County Commissioner
SUPPLIERS
SUPPLIER’S
SUPPLIER
EXTERNAL
Applicant
Application Form
Site Plan
Legal Description
Agenda Memorandum
Maps
Processing Item
Agenda Package
Planning and Scheduling the Item
Supplier
Plan
Customer
Customer’s Customer
Make
Deliver
Source
Internal or External
Your Company
Return
Supplier’s Supplier
We need to define our supply chain, identifying suppliers, customers, the suppliers of our suppliers, and the customers of our customers.
In the Agenda Review Process the suppliers consist of the internal divisions (Building Permit, Community Resources, Development Review, and Planning and Zoning) that provide the Agenda Item package. When the Agenda item package is submitted, it is then eligible to be reviewed, approved, and forwarded to the BCC public hearing. The internal divisions are supplied by the external applicants. The external applicants are made up off current and potential Seminole County community residents/businesses.
In the Agenda Review Process the customers are the internal divisions (Building Permit, Community Resources, Development Review, and Planning and Zoning) that are going to take the reviewed and approved Agenda Item package to the BCC public hearing. The internal departments then deliver the Agenda item package to the BCC public hearing. At the BCC public hearing each department presents and reviews each Agenda item with the board.

43. Decomposition/ Drill-Down mechanics
Agenda Review Process SCOR Level Agenda Process Strategic Plan What we want to accomplish
Top Level Business Plan How we will accomplish it
( Process Types) SCM Process How we implement and manage the plan
ERP The tools we use to implement
Agenda Review Process Level 2
Configuration Level
(Process Categories)
M1Agenda Review Process Supply Chain
PLAN-P SOURCE-S MAKE-M DELIVER-D1
Task Plan
Scheduling
Agenda Review Process Level 3
Process Elements Level
(Decompose Process)
AS-IS STATE
Agenda Schedule
Months
Attorney
Office
Department
Director
Deputy County
Manager
County
Agenda Item
Reviewed Agenda Item
Customer
Acceptance
1-9 Months
1-6 Months
1 Week
1-2 Months
S2 Source Element
SOURCE MAKE DELIVER
Information Flow SC Response Material Flow
2-4 Months
1 day
4-6 Months
1-2 Weeks
RETURN RETURN
Level 1 is related to the top level. These are the process types. In this case, we are defining Make management process for the agenda review.
Level 2 is related to the configuration level. These are the process categories. In this case, we decompose the Make process for the agenda review process. We identify the components for Plan, Source, Make, Deliver, and Return; each one with the time. As you can see the Source category is the one taking the longest time. This means that they are taking forever to find the right information.
Level 3 is related to the process element level. It’s even more specific. These are the decomposes process. In here we take the Source category and we go deeper. We decompose this category into Source, Make, Deliver. We can see that the problem here is that the make process is the one taking time. This means that the way that they are connecting the information and reviewing it is critical.

44. Define critical part of the process
Some quality tools used to find the root causes.