Techncialcommitteedevelopment_2.07.02

Technical Development Supply Chain Operations Reference (SCOR) model

Obaidullah khan DEPARTMENT OF BUSINESS ADM. FACULTY OF MANAGEMENT STUDIES AND RESEARCH ALIGARH MUSLIM UNIV., A.M.U

Discussion Agenda User Perspective ♦ SCOR Application ♦ Current Development Situation ♦ Future Challenges ♦ 2002 Focus ♦

SCC User Perspective SCC membership since 1996 helping with versions 1.0 to 5.0 ♦ 37 projects as defined by the SCOR Project Roadmap ♦ SCC Leadership Opportunities ♦

 Plan

Committee Chair  Integration Committee Chair  SCORBoard

SCOR Project Roadmap Operations •Supply Chain Scope Strategy •Performance Metrics

Analyze Basis of Competition

•Supply Chain SCORcard •Competitive Performance Requirements and SCORcard Gap Analysis •AS IS Material Flow Material •Disconnect & Gross Opportunity Analysis Flow •Material Flow Strategy and Best Practice Analysis •Supply Chain Strategy •TO BE Material Flow

Configure Supply Chain

Align Performance Levels, Practices, and Systems

Implement Supply-Chain Changes

•AS IS Work/Information Map Information and Work Flow •Transactional Analysis

•Design Specifications •TO BE Work/Information Map •Prioritized List of Changes

Implementation •Master Schedule of Projects

•ROI Analysis •Technology Selection •Detail Requirements, Solution Design, Configuration, Test & Go Live

Applications of SCOR ♦

Software Selection & Implementation 

♦

Cost Reduction – Productivity Improvement  

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Business Requirements

Direct Indirect

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♦

Application optimization  

Upgrade Utilization

Implement Operational Strategy ♦ Network Analysis – ♦

SKU Rationalization ♦ Delivery Performance Improvement ♦

Supply Chain Six Sigma and Lean Enterprise  

♦

OTIF – Perfect Order Synchronize Leadtime

Continuous Improvement Organizational Learning

Efficient Consumer Response  

Forecast Accuracy Category Marketing

Current Development Process Integration Committee sets 6 month direction for P, S, M, D, and R committee’s operating plans ♦ P, S, M, D, and R committee’s assemble action plans and complete the work using 4 face-to-face and 8 teleconference meetings per committee per year – homework required ♦ Changes submitted include process, definitions, inputs/outputs, metrics, practices, and glossary ♦ Changes are incorporated in to a SCOR version release ♦

Integration Committee Mission ♦

Support the use of the Supply Chain Operations Reference Model through improving both the technical integrity and the elegance (simplicity) of the model. 

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Setting direction for the technical committees for application based changes (SCOR Projects) using an effective global organization Improve the collaboration and coordination of the SCC Global Technical Community using an effective Change Management Process Efficiently and effectively document SCOR changes and communicate those changes using technology supporting global collaboration Contribute to the transfer of knowledge to members Consider the impact of ebusiness on the SCOR Model

Technical Development Organization – 11/1/01 IntegrationCommittee C-Peter Bolstorff – Pragmatek V-Larry Gray – CobreGroup PlanCommittee C-Katie KasparVC -Oscar Chappel – Tech Connection SourceCommittee C-Dennis Zagrodnik – Daimler/Chrylser VC -Paul Welch - Nokia ReturnCommittee

MakeCommittee C -Ed Biancarelli – Washington Group VC -Irving Briks – BellSouth Deliver Committee C - Dan Swartwood –Pragmatek VC - Rick Hughes – Lockheed Martin

C- Major Scott Koster (USMC) Intel – Siemens RosettaNet George Brown – INTEL Herbert Heinzel - Siemens

Metrics Committee

2000 - 2001 Technical Accomplishments ♦

Released Version 5.0   

Completed Return Processes Began updating the Model’s best practice (ebusiness) Began metrics restructure and glossary update • (Note of caution to users previous to SCOR 5.0)

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Research   

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Joint APICS research publication Continued support of Penn State / Manugistics Research Formation of Research Strategies Advisory Board

Workshop material development and conduct 

5 versions of workshop developed and delivered– Over 500 members have attended SCOR Workshops with companies like Intel, HP, EDS, US Department of Defense, Compaq Baxter, SAP, hosting in-house Workshops

SCOR Model Timeline - 6.0 ♦

After completing Version 5.0 changes committees began working Version 6.0 - tentatively scheduled for release in Spring 2002  Metrics

Revision and Decomposition

Trees  Return – Metrics and Best Practice Complete  Best Practice and e-Business Improvement  Collaboration

Development Challenges Attendance and energy of current committee structure ♦ Theory versus application based changes ♦ Maintenance of SCOR is not glamorous ♦ Motivation of USERS to participate in the development effort ♦ Synchronizing development action with the research strategies efforts ♦

Objectives Wednesday Listen and learn from our guest speakers as they describe their SCOR application story ♦ Prepare one question pertaining to SCOR application for a facilitated small group discussion beginning at 3:00 ♦ Identify one SCOR model change that would make application easier and more effective for a facilitated small group discussion beginning at 3:45 ♦

Balanced Project Mix Pace of Change

Scope of Change

Balanced Project Mix

Fast

Measured

Tactical

Focused Improvemen t

Continuous Improvemen t

Strategi c

Focused Restructurin g

Business Process Innovation

Example 1 ♦

Peter Bolstorff   

Company, role? PRAGMATEK, Consultant Committee Experience? Plan and Integration Used SCOR as basis for project? Yes. What role? Project Manager, Design Team, Steering Team, Consultant

SCOR Level 1 metrics include a Returns/Warranty Processing Cost separate from Total Supply Chain Cost. Is this an accurate representation? is there benchmark data available for this metric? ♦ Establish technical development priority to synchronizing Returns/Warranty Processing Cost with Total Supply Chain Cost and identify benchmark resources to support a Return Project. ♦

Example 2 ♦

Peter Bolstorff   

Company, role? PRAGMATEK, Consultant Committee Experience? Plan and Integration Used SCOR as basis for project? Yes. What role? Project Manager, Design Team, Steering Team, Consultant

How do we use SCOR Deliver and Return within the Retail industry segment at the store level? ♦ Establish technical development priority to adding appropriate process, metric, and benchmark capability to support a Retail project at the store level. ♦

Session members broke out into 10 Teams. ♦ Each team prepared about 4 questions pertaining to SCOR application based on their group’s experience. There were 34 total submissions. ♦ For each question, the team identified one idea for SCOR model change that might make application easier and more effective. ♦

♦

Sample from one team – the recommendations were ranked with 1 being considered the most important.

3)

Create contact list or web page for open exchange between SCOR users regarding metrics. SCOR-model expansion for “damage/stales/waste” to support food and consumer goods. SCOR process maturity measurement incorporation into model to help practitioners with implementation. Develop predictive metrics for strategic planning.

4) 5) 6)

 

Suggestions were then placed in the matrix for classification.

FAST TACTICAL

STRATEGIC

1) Create contact list or web page for open exchange between SCOR users regarding metrics. 3) SCOR process maturity measurement incorporation into model to help practitioners with implementation.

MEASURED

2) SCOR-model expansion for “damage/stales/waste ” to support food and consumer goods. 4) Develop predictive metrics for strategic planning. 

Objectives Thursday ♦

Align to a consolidated Technical Development Organization to support 2002 activity     

♦

Leverage current mission, 6.0 objectives, 2001 best efforts of Plan, collaboration, and Metrics Project Office Mentality Steering Team Leadership Project Team Work Effort Milestones – Winter 02 execution, Summer 02 planning and execution, Winter 03 planning

Formalize Technical Development forums     

Research Strategies – in process Technical Development Steering Team – initiate Formalize white paper, case study publishing guidelines and recognition – initiate Webcasts of case studies – in process Day-to-Day maintenance – formalize

Leverage Best Efforts ♦ ♦

♦ ♦ ♦ ♦ ♦

Clear goals, objectives, task focused Leadership – inclusive, facilitative, and consistent Hold to schedule Backup leaders Regular meetings Cross-Functional input and sharing Show Benefit of the work

♦ ♦ ♦

♦

♦

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Integration Committee structure not effective Meeting management practices Work was not challenging nor interesting Current process structure reinforced stove pipe development and complicates communication Need enough people to do the work; fix the work Improve formalized

Project Office Mentality Project Management Office

Annual Budget & Business Strategy

Ongoing Business Requests

Recognize Project Teams

Maintain Master Schedule

Create Project Charter Create Project Plan Assign Project Manager

Project Management Methodology

Monthly Project Review

Generate Statement of Work and Funding Request

Initiate

Prepare Project Close Report

Create Budget Spreadsheet Create Communication Plan

Maintain Project Plan Manage Change

Establish Roles and Responsiblities

Report Performance

Create Risk Plan

Cost Control

Manage Issues

Document Project Performance

Quality Control Create Project Charter

Stakeholder Approval

Monthly Status Report

Create Procurement Plan

Plan

Manage Risks Manage Procurement and Contracts

Execute/Control Plan

Close Project Contracts

Close

Steering Team Leadership ♦

Chair and Vice Chair Elected to 1 year terms during January session   

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3 additional Steering Team members appointed to 1 year assignments during January session  

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SCOR User Committee or Project Leadership Experience At least one Practitioner

Appointed by Chair and Vice Chair SCOR User, Project Leadership Experience

Chief Technical Officer, Supply Chain Council

Work Team Charter I. Introduction 

Maintenance of the Project Charter

II. Project Overview  

Scope Project Objectives

III. Project Approach    

Methodology Project Schedule Project Milestones & Deliverables Dependencies

IV. Project Organization   

Organization Chart Project Resources Roles and Responsibilities

V. Project Communication 

Communication Plan

Transition ♦

From

♦

To

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Integration Committee

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Technical Development Steering Team

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Plan, Source, Make, Deliver, Return, Metrics, eBusiness, and Collaboration Committees

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SCOR Development Projects or White Papers or Funded Research Projects

2002 Milestones ♦ ♦ ♦ ♦ ♦

Initiate 2002 Development Efforts – January Transition committees, initiate and resource projects – February Close targeted projects, conduct project reviews and recognize team efforts – June Reprioritize ideas, initiate and resource new projects – July 2002 Project Review, elect new steering team, and identify 2003 development priorities – January, 2003

Actions Suggested Today ♦ ♦ ♦

♦ ♦ ♦ ♦

Conduct February 7 Webcast – briefing the SCC membership on suggested changes Plan to elect a Chair and Vice Chair of the Technical Development Steering Team Suggest that Plan, Source, Make, Deliver, and Return Chairs and Vice Chairs comprise remaining steering team roles Develop Publishing Guidelines for white papers open to all members Assemble transition of Committee efforts to new project management format – with charter Identify 2002 meeting schedule for the steering team including face-to-face and teleconferences Identify members interested in Project Leadership