Upside Supply Chain Flexibility

Upside Supply Chain Flexibility - SCOR® OPERATIONAL DEFINITION Upside Supply Chain Flexibility is a discrete measurement defined as the amount of time it takes a supply chain to respond to an unplanned 20% increase in demand without service or cost penalty. The challenge with this measure is to make it as scientific as possible. With science in mind, then, we must go to item master for the data! For each item there is usually a "replenishment lead time" which sums the MAKE and DELIVER planned lead times. To this we must add the longest planned lead time of the components in the BOM. The idea, here, is that your planned lead times is the best representation of flexibility without cost or service penalty.

LEVEL 1, 2, AND 3 DECOMPOSITION Upside Supply Chain Flexbility Planned Replenishment Lead Time Make Planned Lead Time Deliver Planned Lead Time Planned Component Lead Times

COMMON DATA SEGMENTATION FIELDS Common data segmentation fields for Upside Supply Chain Flexibility include MTO MTS Ship Point Plant Item (SKU) # BOM Component #

DEFECT ANALYSIS For the purposes of six sigma type analysis, an analytical unit is an individual item or SKU. A defective unit is an item or SKU with planned lead times greater than the targeted days of inventory. The number of defect opportunities is the total number of items or SKUs.

COMMON BENCHMARK DATA SOURCES Supply Chain Council The Performance Measurement Group