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Best Practice Adoption of SCOR
APICS Canadian and Northeast District Joint MeetingOttawa, CanadaSeptember 18 and 19, 2015
An APICS Supply Chain Council Executive Briefing
2 © APICS Confidential and Proprietary
Discussion Topics
APICS Supply Chain Council
What is SCOR?
Best Practice Corporate Adoption
3 © APICS Confidential and Proprietary
Introduction
Delegate from 3M and then Imation for SCOR 1.0 in 1996
Expertise in Manufacturing and Planning including Center of Excellence Leadership for Sales and Operations Planning
Authored, Supply Chain Excellence: A Handbook for Dramatic Improvement Using the SCOR Model, 3rd Edition
First Supply Chain Council non-staff Certified Instructor and now SCOR-P and CSCP
From 2002 to 2014, Helped 30+ Companies Analyze $13.5B USD Deriving $200M USD in Operating Income Improvements
Have volunteered with the SCC since the beginning
Industry experience includes Chemical, Retail, Food and Grocery, Electronics, Durable Goods, Consumer Packaged Goods, and Aerospace and Defense
Peter Bolstorff, CSCP, SCOR-PExecutive Director | APICS Supply Chain Council
About the APICS Supply Chain Council
5 © APICS Confidential and Proprietary
Purpose
APICS Develops People
People Improve Supply Chains Supply
Chains Improve Economies
Improved Economies Improve Lives
APICS SCC Develops Organizations
Organizations Improve Supply Chains
6 © APICS Confidential and Proprietary
New Value Proposition
APICS SCCAPICS
Training, certification and
networking
Research, benchmarking and
frameworks
APICS Value Proposition
APICS delivers a total individual and corporate value proposition.
We help individuals achieve career development goals.We help corporations achieve strategic supply chain goals.
Individuals Corporate, Public Sector and Academic
Institutions
7 © APICS Confidential and Proprietary
APICS SCC
The legacy SCC integrated with the former APICS Foundation to form the new APICS SCC. The new organization continues the tradition of funding scholarships and student programs; still operates as a global, non-profit entity; and actively manages the Supply Chain Operations Reference (SCOR) model.
Programs and Services Plossl Dissertation, Scholars Program, Student Case Competition
Research Projects, Corporate Advisory Board, Executive Summit
SCORmark™ Benchmark
Publications, Resource Library, and Case Studies
Other Value Chain Frameworks including M4SC, DCOR®, CCOR®, and PLCOR®
Training is now available through APICS
8 Confidential © 2013 APICS
Affiliate Snapshot 2015
404
AFFILIATES
CORPORATE AFFILIATES
ACADEMICAFFILIATES
PUBLIC SECTORAFFILIATES
6091253
253
1417
131 64
12
RK
COUNTRY #
1 United States 146
2 Germany 32
3 China 31
4 Switzerland 16
5 South Africa 15
6 Netherlands 14
7 United Kingdom
13
8 Canada 10
9 France 10
10 Sweden 10
TOP 10 COUNTRIES
What is SCOR?
10 © APICS Confidential and Proprietary
Other APICS SCC Frameworks
Custom
er processesSup
plie
r pr
oces
ses
Product & PortfolioManagement PLCOR™
Supply Chain SCOR®
Product & Process Design
DCOR™
Sales & Support
CCOR™
Visual • 11 © APICS Confidential and Proprietary
About SCOR: A Process Framework
Combining four techniques into a single integrate approach
Business Process Improvement
Performance Benchmarking
Best Practices Analysis
Organizational Design
Capture the ‘as-is’ business activity and design the future ‘to-be’ state
Quantify relative performance of similar supply chains and establish internal targets
Identify practicesand software solutions that result in significantly better performance
Assess skills and performance needs and align staff and staffing needs to internal targets
Process Reference Framework
Processes Performance (metrics)
Practices People (skills)
12 © APICS Confidential and Proprietary
SCOR® Processes
Supplier CustomerSuppliers’Supplier
Source
Internal or External
Your Organization
Return
Deliver MakeSource
Return
Plan
Deliver
Return
Source
Return
MakeSource
Return
Plan
Deliver
Return
DeliverMake
Plan
Return Return
Customers’Customer
Enable
Internal or External
EnableEnable
SCOR MODEL
13 © APICS Confidential and Proprietary
SCOR® Metrics
Attribute SCOR 11.0 Metrics
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 Downside Supply Chain Adaptability
AG.1.4 Overall Value At Risk (VAR)
Cost CO.1.1 Total Cost to Serve
Asset Management Efficiency
AM.1.1 Cash-to-Cash Cycle Time
AM.1.2 Return on Supply Chain Fixed Assets
14 © APICS Confidential and Proprietary
SCOR® Decomposition
Level Description Examples CommentsCurrent scope of SCOR
1 Process Types (Scope)
Plan, Source, Make, Deliver, Return and Enable
Level-1 defines scope and content of a supply chain. At level-1 the basis-of-competition performance targets for a supply chain are set.
2 Process Categories (Configuration)
Make-to-Stock, Make-to-Order, Engineer-to-Order Defective Products, MRO Products, Excess Products
Level-2 defines the operations strategy. At level-2 the process capabilities for a supply chain are set. (Make-to-Stock, Make-to-Order)
3 Process Elements (Steps)
• Schedule Deliveries• Receive Product• Verify Product• Transfer Product• Authorize Payment
Level-3 defines the configuration of individual processes. At level-3 the ability to execute is set. At level-3 the focus is on the right:• Processes• Inputs and Outputs• Practices• Technology capabilities• Skills of staff
Future scope 4 Activities (Implementation)
Industry-, company-, location-, and/or technology specific steps
Level-4 describes the activities performed within the supply chain. Companies implement industry-, company-, and/or location-specific processes and practices to achieve required performance.
Visual • 15 © APICS Confidential and Proprietary
SCOR Reference Sources
Complete SCOR Model Reference sourcebooks. Two volumes containing the complete SCOR reference framework
A quick reference guide providing a detailed summary of SCOR Processes, Metrics, Practices, and People on a single easy-to-use card
An easy to access and use application for mobile devices available through iTunes, App Store, and Android Store – Search: APICS SCOR
Best Practice SCOR Adoption
Visual • 17 © APICS Confidential and Proprietary
Top Motivations to Use SCOR®
Visual • 18 © APICS Confidential and Proprietary
Live Poll Question 1
Visual • 19 © APICS Confidential and Proprietary
Visual • 20 © APICS Confidential and Proprietary
Live Poll Question 2
Visual • 21 © APICS Confidential and Proprietary
Visual • 23 © APICS Confidential and Proprietary
SCOR Improvement Program Racetrack
C: Configure the Supply Chain
S:Set the Scope
O:Optimize Projects
Begin Next
Program
Rollout Approval
Preliminary ProjectPortfolio
Business Context Summary
SCOR ExecutionSCOR Deliverables
MetricSelection
SCORmarkBenchmarkingCompetitive
Requirements
GapAnalysis
Pre-SCOR Program Steps
StakeholderSupport
SCOR Education
Identify Organization
Identify Motivation Initiate Projects
Test, Pilot, Roll-outStrategicBusinessSummary
Document the Supply
Chain
InitialData
Review
Opportunity Analysis
Create Project
Portfolio
Link Gaps to Projects
Document Initial
Projects
ProjectKickoffs
BenefitSummaryR:
Ready forImplementation
SCORcard
PrioritizeProjects
Create SCOR Level 4 Processes
SCORWorkshop
DataSelection
MetricDefinition
ProgramKickoff
IdentifyMotivation
SupplyChain
DefinitionMatrix
CompetitiveRequirements
ThreadDiagram
StapleYourself
Level 3 ProcessDiagram
Improvement Program Charter
Confirm Program
Scope
GeographicMap
IndustryComparison
Visual • 24 © APICS Confidential and Proprietary
SCOR Implementation Benefits
Average Operating Income improvement of 3% to sales (high 4.5% - low 1.5%)
Typical inventory turn improvements of 20% Delivery reliability improvement of 25% 20% improvement in flexibility 30% faster system implementations with 30% more
functionality Continuous improvement portfolios refreshed at a value
of 0.5% Mitigation of costs associated with risk management
Source: APICS Supply Chain Council 2002 to 2014
Project Organization
Supply Chain Definition
Project Charter
SCORmark
Key Deliverables Discussion
Visual • 26 © APICS Confidential and Proprietary
SCOR Improvement Program Organization
Detail ProjectSubprojects
Executive team
Executivesponsor
Teamleader
Other teams
Program team
Improvement team
Operationsmanagement
Program stakeholders
Customers
Functionalmanagers
Otherstakeholders
Channelpartners
Technologyteam
Supply chainteam
Financialteam
Program champion
Visual • 27 © APICS Confidential and Proprietary
Customers: GE GB SEU
Mp3 Inc.product groups
Germany Belgium Nether-lands
England and
Ireland
France Italy Spain
Mp3 players 300* 125 95 265 110 75
Phones 200 95 planned 250 185 55
PCs 35 21
Criteria: geographical region, country, products
Supply Chain Definition Matrix: Example
* Sales expressed in millions
Adapted from Supply Chain Excellence by Peter Bolstorff and Robert Rosenbaum ©2012 Peter Bolstorff and Robert Rosenbaum, AMACOM books, division American Management Association International, New York, NY, p. 47.
Visual • 28 © APICS Confidential and Proprietary
Improvement Program Charter Deliverable
Section Subsection Discussion
IntroductionPurpose, table of contents, control/maintenance Improvement program charter overview
Program Definition
Scope Which supply chains selected
Business objectives Performance metrics
Improvement program objectives Supply chain performance targets
Program organizationDefinition of program team and shareholders
Program
Contents
Methodology Five-phased SCOR racetrack
Schedule Timeline, detailed activities, meetings
Roles Program activity responsibles
Deliverables and milestones Detailed deliverables and milestones
Risks and dependencies Critical risks and avoidance strategies
Benefits Measures of success, analysis
Visual • 29 © APICS Confidential and Proprietary
Measuring Supply Chain Excellence
Attributes Metrics Parity Advantage Superior Target Level Performance
Your Organization
Gap to Target
Customer Facing Metrics
Reliability Perfect Order Fulfillment (%) 77.5% 85.6% 93.7% Advantage 69.2% 16.4%
Responsiveness
Order Fulfillment Cycle Time (days) 9.1 6.5 3.9 Parity 7.1 –
Agility
Supply Chain Flexibility (days) 45.0 33.0 21.0
Advantage
15.0 –
Supply Chain Adaptability (%) 35.5% 51.3% 72.0% 10.0% 41.3%
Internal Facing Metrics
CostTotal Supply Chain
Management Cost % Revenue
8.7% 5.6% 2.4% Superior 8.1% -5.7%
Asset Management
Efficiency
Cash to Cash Cycle Time (days) 55.4 30.5 5.5 Parity 160.5 -105.1
APICS Education
31 © APICS Confidential and Proprietary
APICS Development Model
Gartner Maturity Stage Knowledge and Skills Process-Practice-
Performance-People
Orchestration SCOR-P and M4SC Leadership Series
Supplier’s Supplier to Customer’s Customer Supply Chain Community
CollaborationCSCP – Certified Supply Chain Professional
Supplier to Customer Single Instance
Anticipating
CPIM – Certified in Production and Inventory Management
Internal Process
ReactingPrinciples of Operations Management
Single Process
32 © APICS Confidential and Proprietary
APICS Principles Program
APICS Principles of Operations Management
Modular courseware system
Foundational knowledge spanning major operations management activities
5 customizable modules; each includes 9 sessions and two exams
Classroom-based, instructor-led learning approach
Suitable for certificate programs
33 © APICS Confidential and Proprietary
APICS CPIM Designation
APICS Certified in Production and Inventory Management
Preferred by employers
100,000+ individuals certified
Self-study and group study programs
Online and classroom courses
5 study modules and exams
Content reviewed annually
34 © APICS Confidential and Proprietary
APICS CSCP Designation
APICS Certified Supply Chain Professional
Preferred by employers
17,000+ individuals certified
Self-study and group study programs
Online and classroom courses
3 study modules; 1 exam
Content reviewed annually
35 © APICS Confidential and Proprietary
SCOR-P Designation
SCOR® Professional
Introduction to SCOR® model, problem solving, practical application and exercises
3-day workshop; 1 exam
Classroom-based, instructor-led learning approach
Suitable for certificate programs
Available both publicly and in-house
36 © APICS Confidential and Proprietary
Managing for Supply Chain Leadership Series
Align Strategy
mAS.01 Business Plan Analysis
mAS.02 Supply Chain Segmentation
mAS.03 Supply Chain Prioritization
mAS.04 Competitive Landscape Analysis
mAS.05 Supply Chain Organizational Analysis
mAS.06 Supply Chain Strategy Analysis
mAS.07 Supply Chain Network Definition
mAS.08 Scorecard Definition
mAS.09 Supply Chain Data Collection
mAS.10 Supply Chain Benchmarking
mAS.11 Metrics Organizational Analysis
mAS.12 Supply Chain Gap Analysis
37 © APICS Confidential and Proprietary
Visit APICS SCC online
Q&A
Thank You!