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SCC/AQPC Webinar: SCOR Benchmarking & SCC Member Benefits
Webinar Joseph Francis – CTO Supply Chain Council
This presentation is the exclusive property of the Supply Chain Council. Copyright © Supply Chain Council. 2006. All rights reserved. The marks SCOR®, CCOR™, DCOR™ and SCOR Roadmap™ are the exclusive property of the Supply Chain Council.
Today’s Agenda
• Overview SCC, AQPC • SCOR Benchmarking • Wrap-up & Questions
Copyright © Supply Chain Council. 2006. All rights reserved.
Company
Parity
Adv
Superior
Parity Gap
Attribute
Metric (level 1)
Reliability
Perfect Order Fulfillment
98%
92%
96%
98%
-6%
Responsiveness
Order Fulfillment Cycle Time
14 days
8 days
6 days
4 days
6 days
Flexibility
Ups. Supply Chain Flexibility
62 days
80 days
62 days
40 days
-18 days
Cost
Supply Chain Mgmt Cost
10.1%
10.8%
10.4%
10.2%
-0.7%
Assets
Cash-to-Cash Cycle Time
22 days
45 days
30 days
20 days
-23 days
Req Gap
8 days
|
1
Supply-Chain Council • The SCC is an independent, not-for-profit, global corporation with membership open to all companies and organizations interested in applying and advancing state-of-the-art supply chain management systems and practices. • Founded in 1996 • Over 700 Company Members • Cross-industry representation • Chapters in Australia/New Zealand, Brazil, Europe, Japan, North America, South East Asia, and China with petitions for additional chapters pending.
• The Supply-Chain Council (SCC) has developed and endorsed the Supply Chain Operations Reference model (SCOR) as the cross-industry standard for supply chain management. Copyright © Supply Chain Council. 2006. All rights reserved.
|
2
The SCOR Framework SCOR defines supply chain as the integrated processes of Plan, Source, Make, Deliver and Return, spanning your suppliers’ supplier to your customers’ customer, aligned with Operational Strategy, Material, Work & Information Flows. Plan Plan
Deliver
Suppliers’ Supplier
Plan
Source
Make
Plan
Deliver
Source
Make
Deliver
Source
Make
Plan
Deliver
Supplier
YOUR COMPANY
Customer
Internal or External
Return
Internal or External
Source
Customer’s Customer
Supply Chain Operations Reference Model
Copyright © Supply Chain Council. 2006. All rights reserved.
|
3
SCOR Hierarchy
Level 1
Level 2
Level 3
Level 4
Level 5
Scope
Configuration
Activity
Workflow
Transactions
Supply-Chain Supply-Chain Source Source
S1 S1 Source Source Stocked Product Product Stocked
S1.2 S1.2 Receive Product Receive Product
EDI EDI XML XML
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 Specific Language
Technology Specific Language
Standard SCOR definitions Copyright © Supply Chain Council. 2006. All rights reserved.
Company/Industry definitions |
4
The SCOR Project Roadmap Phase Initial
I
II
III
IV
V
Name
Deliverable
Resolves
BUILD
• Organizational Support
Who is the sponsor?
DISCOVER
• Supply-Chain Definition • Supply-Chain Priorities • Project Charter
What will the program cover?
ANALYZE
• Scorecard • Benchmark • Competitive Requirements
What are the strategic requirements of your supply-chain?
MATERIAL
• Geo Map • Thread Diagram • Disconnect Analysis
Initial Analysis – where are the problems?
WORK
• Transactions • Level 3, Level 4 Processes • Best Practices Analysis
Final Analysis – where are the solutions?
IMPLEMENT
• Opportunity Analysis • Project Definition • Deployment Organization
How to deploy?
Copyright © Supply Chain Council. 2006. All rights reserved.
|
5
APQC MISSION …to work with people in organizations around the world to improve productivity and quality by: •
Discovering, researching, and understanding emerging and effective methods of improvement;
•
Broadly disseminating our findings through education, advisory and information services; and
•
Connecting individuals with one another, and with knowledge and tools they need to improve
Copyright © Supply Chain Council. 2006. All rights reserved.
|
6
APQC • Founded in 1977 - funded by 100 corporations • Non-profit, tax-exempt 501(c)(3) • Membership - 500 organizations • Best Practices research and publications • Benchmarking • Manage the OSBC data repository • Consulting and Advisory services • Conferences and training
• Board of Directors • 45 senior executives from corporations, education, and government
Copyright © Supply Chain Council. 2006. All rights reserved.
|
7
APQC’S VANTAGE POINT
30 years in systematic quality, performance improvement, and measurement •
One of the Founders of the MBNQA
•
Groundbreaking project in knowledge worker productivity (1989)
•
Conducted research and development work on Family of Measures (1993)
•
Performance Measurement: Implementing the Balanced Scorecard
•
Frameworks and Tools for measuring outcomes and performance
Copyright © Supply Chain Council. 2006. All rights reserved.
|
8
APQC HISTORY
20 05 SM
OSBC
20 01 19 95 19 91 19 77
Six Sigma and Process Improvement Knowledge Management & Collaboration
Benchmarking and APQC’s Process Classification Framework
-8
3 Productivity and Quality: Malcolm Baldrige
1977
2005 *Open Standards Benchmarking Collaborative Research
Copyright © Supply Chain Council. 2006. All rights reserved.
|
9
What is Benchmarking • Best Practices • Assessment of different components of processes in relation to “best practice”
• Competitive Metrics • Assessment of measurable process performance in relation to competitor’s performance
• Compared Against • Usually in a specific business sector, or within a sector against companies with similar demographic profiles
• Used For • Identifying gaps in competitive performance against strategic goals • Opportunities for new techniques in process implementation
Copyright © Supply Chain Council. 2006. All rights reserved.
|
10
Benchmarking: Vital for SCOR • SCOR Implementation •
Competitive positioning
•
Performance disconnect analysis
•
Prioritizing supply-chain strategies
• Members ask for SCOR-based Benchmarking •
Priority need for over 6 years
•
Key benefit of open-standard metrics
•
Alignment of benchmarking cycle time to implementation
• Benchmarking is challenging •
Not feasable through technical committees
•
Requires substantial infrastructure – people and it
•
Quality and reliability critical
Copyright © Supply Chain Council. 2006. All rights reserved.
|
11
AQPC/SCC Benchmarking • Access to a no-cost benchmarking portal providing them with a new resource for metric data directly tied to the SCOR model. • Supported by Open Standards Benchmarking Collaborativesm research • APQC will serve as a confidential, third-party repository for SCC members and will collect, validate, and report benchmarking data • Data is delivered in the form of benchmarking reports that will align participant’s performance improvement plans as they move through SCOR implementation
Copyright © Supply Chain Council. 2006. All rights reserved.
|
12
SCOR Metric Base • Over 250 critical supply-chain metrics, linked to process, practices, and supply-chain configurations • Organized in layers to use in cause-effect analysis and for ease of calculation • Based on over a decade in research at SCC with over 2500 Supply-Chain practitioners • The de-facto industry standard recognized by multiple organizations
Copyright © Supply Chain Council. 2006. All rights reserved.
|
13
OSBC Methodology
Copyright © Supply Chain Council. 2006. All rights reserved.
|
14
Benchmarking Methodology Overview To launch OSBC research areas APQC: •
Develops content using subject matter experts and industry representatives
•
Collects data using an online survey tool
•
Validates all responses
•
Analyzes and reports information. All data are reported in a normalized fashion to mitigate impacts from operational scale.
Copyright © Supply Chain Council. 2006. All rights reserved.
|
15
Data Validation: Seven Steps
Copyright © Supply Chain Council. 2006. All rights reserved.
|
16
Suggested Data Collection Approach •
Access the main webpage for the survey and follow instructions.
•
Review survey scope, definitions, and questions.
•
Determine which parts of the organization the survey information resides.
•
Assign team members areas for completion and due dates. Assign one person to coordinate and oversee data collection.
•
Provide each team member with a copy of the data collection template.
•
Consolidate individual survey components and review for accuracy and reasonableness.
•
After review, revise responses as needed.
•
Submit consolidated data collection file to APQC.
Copyright © Supply Chain Council. 2006. All rights reserved.
|
17
APQC and Participant Insights •
Divide the benchmarking survey into manageable miniprojects to collect data.
•
Use your best estimation if an exact number is hard to obtain or skip that question; APQC’s data validation team can help here.
•
When using online survey, complete the data input in multiple sessions. Make sure you have cookies enabled.
•
Print out a copy of your full survey before submitting to have a final version for review and to answer later questions.
Copyright © Supply Chain Council. 2006. All rights reserved.
|
18
Who You Need: Roles •
Process Owner – Person who is overseeing or managing this project. He/she will be responsible to provide the general information survey. This is the person who will receive the benchmarking report.
•
Survey Contributors – People responsible for providing or completing the specific surveys or questions according to their function within the supply chain process.
•
APQC Survey Support – Person that a process owner and/or survey contributors can go to with any questions.
Copyright © Supply Chain Council. 2006. All rights reserved.
|
19
March Launch • SCOR Benchmark Website • Registration for Benchmarking • Preliminary Questions to set up custom survey tool • Survey and Benchmark
• SCOR Level-1 and Level-2 Metrics • Partially pre-populated with SCOR-based data • Global scope of demographic set
• Information Available • FAQ and tutorials on Benchmarking • SCOR Metric definitions and interpretations • Annual publication of summary benchmark data
Copyright © Supply Chain Council. 2006. All rights reserved.
|
20
Early Testing • “Beta Testing” of initiative • Assessment of survey instrument • Test of reports – layout, content
• First view of metric base and benchmark information • Limited in availability (current SCOR population) • Understanding of applicability
• This is a collaborative system • Member benefit • Designed with help of volunteers • Must serve our needs
Copyright © Supply Chain Council. 2006. All rights reserved.
|
21
For More information www.supply-chain.org/cs/benchmarking Or
[email protected]
Many Thanks!
Copyright © Supply Chain Council. 2006. All rights reserved.
|
22
Webinar Joseph Francis – CTO Supply Chain Council
This presentation is the exclusive property of the Supply Chain Council. Copyright © Supply Chain Council. 2006. All rights reserved. The marks SCOR®, CCOR™, DCOR™ and SCOR Roadmap™ are the exclusive property of the Supply Chain Council.
Today’s Agenda
• Overview SCC, AQPC • SCOR Benchmarking • Wrap-up & Questions
Copyright © Supply Chain Council. 2006. All rights reserved.
Company
Parity
Adv
Superior
Parity Gap
Attribute
Metric (level 1)
Reliability
Perfect Order Fulfillment
98%
92%
96%
98%
-6%
Responsiveness
Order Fulfillment Cycle Time
14 days
8 days
6 days
4 days
6 days
Flexibility
Ups. Supply Chain Flexibility
62 days
80 days
62 days
40 days
-18 days
Cost
Supply Chain Mgmt Cost
10.1%
10.8%
10.4%
10.2%
-0.7%
Assets
Cash-to-Cash Cycle Time
22 days
45 days
30 days
20 days
-23 days
Req Gap
8 days
|
1
Supply-Chain Council • The SCC is an independent, not-for-profit, global corporation with membership open to all companies and organizations interested in applying and advancing state-of-the-art supply chain management systems and practices. • Founded in 1996 • Over 700 Company Members • Cross-industry representation • Chapters in Australia/New Zealand, Brazil, Europe, Japan, North America, South East Asia, and China with petitions for additional chapters pending.
• The Supply-Chain Council (SCC) has developed and endorsed the Supply Chain Operations Reference model (SCOR) as the cross-industry standard for supply chain management. Copyright © Supply Chain Council. 2006. All rights reserved.
|
2
The SCOR Framework SCOR defines supply chain as the integrated processes of Plan, Source, Make, Deliver and Return, spanning your suppliers’ supplier to your customers’ customer, aligned with Operational Strategy, Material, Work & Information Flows. Plan Plan
Deliver
Suppliers’ Supplier
Plan
Source
Make
Plan
Deliver
Source
Make
Deliver
Source
Make
Plan
Deliver
Supplier
YOUR COMPANY
Customer
Internal or External
Return
Internal or External
Source
Customer’s Customer
Supply Chain Operations Reference Model
Copyright © Supply Chain Council. 2006. All rights reserved.
|
3
SCOR Hierarchy
Level 1
Level 2
Level 3
Level 4
Level 5
Scope
Configuration
Activity
Workflow
Transactions
Supply-Chain Supply-Chain Source Source
S1 S1 Source Source Stocked Product Product Stocked
S1.2 S1.2 Receive Product Receive Product
EDI EDI XML XML
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 Specific Language
Technology Specific Language
Standard SCOR definitions Copyright © Supply Chain Council. 2006. All rights reserved.
Company/Industry definitions |
4
The SCOR Project Roadmap Phase Initial
I
II
III
IV
V
Name
Deliverable
Resolves
BUILD
• Organizational Support
Who is the sponsor?
DISCOVER
• Supply-Chain Definition • Supply-Chain Priorities • Project Charter
What will the program cover?
ANALYZE
• Scorecard • Benchmark • Competitive Requirements
What are the strategic requirements of your supply-chain?
MATERIAL
• Geo Map • Thread Diagram • Disconnect Analysis
Initial Analysis – where are the problems?
WORK
• Transactions • Level 3, Level 4 Processes • Best Practices Analysis
Final Analysis – where are the solutions?
IMPLEMENT
• Opportunity Analysis • Project Definition • Deployment Organization
How to deploy?
Copyright © Supply Chain Council. 2006. All rights reserved.
|
5
APQC MISSION …to work with people in organizations around the world to improve productivity and quality by: •
Discovering, researching, and understanding emerging and effective methods of improvement;
•
Broadly disseminating our findings through education, advisory and information services; and
•
Connecting individuals with one another, and with knowledge and tools they need to improve
Copyright © Supply Chain Council. 2006. All rights reserved.
|
6
APQC • Founded in 1977 - funded by 100 corporations • Non-profit, tax-exempt 501(c)(3) • Membership - 500 organizations • Best Practices research and publications • Benchmarking • Manage the OSBC data repository • Consulting and Advisory services • Conferences and training
• Board of Directors • 45 senior executives from corporations, education, and government
Copyright © Supply Chain Council. 2006. All rights reserved.
|
7
APQC’S VANTAGE POINT
30 years in systematic quality, performance improvement, and measurement •
One of the Founders of the MBNQA
•
Groundbreaking project in knowledge worker productivity (1989)
•
Conducted research and development work on Family of Measures (1993)
•
Performance Measurement: Implementing the Balanced Scorecard
•
Frameworks and Tools for measuring outcomes and performance
Copyright © Supply Chain Council. 2006. All rights reserved.
|
8
APQC HISTORY
20 05 SM
OSBC
20 01 19 95 19 91 19 77
Six Sigma and Process Improvement Knowledge Management & Collaboration
Benchmarking and APQC’s Process Classification Framework
-8
3 Productivity and Quality: Malcolm Baldrige
1977
2005 *Open Standards Benchmarking Collaborative Research
Copyright © Supply Chain Council. 2006. All rights reserved.
|
9
What is Benchmarking • Best Practices • Assessment of different components of processes in relation to “best practice”
• Competitive Metrics • Assessment of measurable process performance in relation to competitor’s performance
• Compared Against • Usually in a specific business sector, or within a sector against companies with similar demographic profiles
• Used For • Identifying gaps in competitive performance against strategic goals • Opportunities for new techniques in process implementation
Copyright © Supply Chain Council. 2006. All rights reserved.
|
10
Benchmarking: Vital for SCOR • SCOR Implementation •
Competitive positioning
•
Performance disconnect analysis
•
Prioritizing supply-chain strategies
• Members ask for SCOR-based Benchmarking •
Priority need for over 6 years
•
Key benefit of open-standard metrics
•
Alignment of benchmarking cycle time to implementation
• Benchmarking is challenging •
Not feasable through technical committees
•
Requires substantial infrastructure – people and it
•
Quality and reliability critical
Copyright © Supply Chain Council. 2006. All rights reserved.
|
11
AQPC/SCC Benchmarking • Access to a no-cost benchmarking portal providing them with a new resource for metric data directly tied to the SCOR model. • Supported by Open Standards Benchmarking Collaborativesm research • APQC will serve as a confidential, third-party repository for SCC members and will collect, validate, and report benchmarking data • Data is delivered in the form of benchmarking reports that will align participant’s performance improvement plans as they move through SCOR implementation
Copyright © Supply Chain Council. 2006. All rights reserved.
|
12
SCOR Metric Base • Over 250 critical supply-chain metrics, linked to process, practices, and supply-chain configurations • Organized in layers to use in cause-effect analysis and for ease of calculation • Based on over a decade in research at SCC with over 2500 Supply-Chain practitioners • The de-facto industry standard recognized by multiple organizations
Copyright © Supply Chain Council. 2006. All rights reserved.
|
13
OSBC Methodology
Copyright © Supply Chain Council. 2006. All rights reserved.
|
14
Benchmarking Methodology Overview To launch OSBC research areas APQC: •
Develops content using subject matter experts and industry representatives
•
Collects data using an online survey tool
•
Validates all responses
•
Analyzes and reports information. All data are reported in a normalized fashion to mitigate impacts from operational scale.
Copyright © Supply Chain Council. 2006. All rights reserved.
|
15
Data Validation: Seven Steps
Copyright © Supply Chain Council. 2006. All rights reserved.
|
16
Suggested Data Collection Approach •
Access the main webpage for the survey and follow instructions.
•
Review survey scope, definitions, and questions.
•
Determine which parts of the organization the survey information resides.
•
Assign team members areas for completion and due dates. Assign one person to coordinate and oversee data collection.
•
Provide each team member with a copy of the data collection template.
•
Consolidate individual survey components and review for accuracy and reasonableness.
•
After review, revise responses as needed.
•
Submit consolidated data collection file to APQC.
Copyright © Supply Chain Council. 2006. All rights reserved.
|
17
APQC and Participant Insights •
Divide the benchmarking survey into manageable miniprojects to collect data.
•
Use your best estimation if an exact number is hard to obtain or skip that question; APQC’s data validation team can help here.
•
When using online survey, complete the data input in multiple sessions. Make sure you have cookies enabled.
•
Print out a copy of your full survey before submitting to have a final version for review and to answer later questions.
Copyright © Supply Chain Council. 2006. All rights reserved.
|
18
Who You Need: Roles •
Process Owner – Person who is overseeing or managing this project. He/she will be responsible to provide the general information survey. This is the person who will receive the benchmarking report.
•
Survey Contributors – People responsible for providing or completing the specific surveys or questions according to their function within the supply chain process.
•
APQC Survey Support – Person that a process owner and/or survey contributors can go to with any questions.
Copyright © Supply Chain Council. 2006. All rights reserved.
|
19
March Launch • SCOR Benchmark Website • Registration for Benchmarking • Preliminary Questions to set up custom survey tool • Survey and Benchmark
• SCOR Level-1 and Level-2 Metrics • Partially pre-populated with SCOR-based data • Global scope of demographic set
• Information Available • FAQ and tutorials on Benchmarking • SCOR Metric definitions and interpretations • Annual publication of summary benchmark data
Copyright © Supply Chain Council. 2006. All rights reserved.
|
20
Early Testing • “Beta Testing” of initiative • Assessment of survey instrument • Test of reports – layout, content
• First view of metric base and benchmark information • Limited in availability (current SCOR population) • Understanding of applicability
• This is a collaborative system • Member benefit • Designed with help of volunteers • Must serve our needs
Copyright © Supply Chain Council. 2006. All rights reserved.
|
21
For More information www.supply-chain.org/cs/benchmarking Or
[email protected]
Many Thanks!
Copyright © Supply Chain Council. 2006. All rights reserved.
|
22
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