M4SC Overview slides - Supply Chain Council
M4SC Overview slides - Supply Chain Council
M4SC Overview slides - Supply Chain Council
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Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Attribute<br />
Reliability<br />
Responsiveness<br />
Flexibility<br />
Cost<br />
Assets<br />
Metric (level 1)<br />
Perfect Order Fulfillment<br />
Order Fulfillment Cycle Time<br />
Ups. <strong>Supply</strong> <strong>Chain</strong> Flexibility<br />
<strong>Supply</strong> <strong>Chain</strong> Mgmt Cost<br />
Cash-to-Cash Cycle Time<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Operations<br />
<strong>Supply</strong> <strong>Chain</strong><br />
Purchasing<br />
Logistics<br />
Warehousing<br />
Responsible<br />
Accountable<br />
Supported<br />
Responsible<br />
Accountable<br />
Supported<br />
Responsible<br />
Accountable<br />
Supported<br />
Responsible<br />
Accountable<br />
Supported<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
S1<br />
S1<br />
S1<br />
Company<br />
98%<br />
14 days<br />
62 days<br />
10.1%<br />
22 days<br />
Parity<br />
92%<br />
8 days<br />
80 days<br />
10.8%<br />
45 days<br />
Adv<br />
96%<br />
6 days<br />
62 days<br />
10.4%<br />
30 days<br />
Our Company<br />
Shared Insights SCOR Seminar |<br />
Superior<br />
98%<br />
4 days<br />
40 days<br />
10.2%<br />
20 days<br />
Parity<br />
Gap<br />
-6%<br />
6 days<br />
-18 days<br />
-0.7%<br />
-23 days<br />
Req<br />
Gap<br />
8 days<br />
Shared Insights SCOR Seminar |<br />
80%<br />
Shared Insights SCOR Seminar |<br />
APJ Warehouse US Warehouse EU Warehouse<br />
D1<br />
D1<br />
D1<br />
SR2<br />
SR2<br />
DR2<br />
DR2<br />
DR2<br />
S1<br />
S1<br />
S1<br />
D1<br />
D1<br />
D1<br />
SR2<br />
SR2<br />
DR2<br />
DR2<br />
DR2<br />
DR2<br />
S1<br />
S1<br />
S1<br />
D1<br />
D1<br />
D1<br />
SR2<br />
SR2<br />
DR2<br />
DR2<br />
DR2<br />
DR2<br />
Shared Insights SCOR Seminar |<br />
20<br />
33<br />
43<br />
56<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
OEM Supplier<br />
(D1)<br />
Commercial<br />
Customer<br />
(S2)<br />
Refrigerant<br />
Supplier<br />
(D1)<br />
Commercial<br />
Distribution<br />
(P4, D2)<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Controls Plant<br />
(P3, S1, M1)<br />
Basic Units<br />
(P1, P2, P3, S1,<br />
M1, M2)<br />
Electronics<br />
Supplier<br />
(D1)<br />
Motor Supplier<br />
(D1)<br />
Retail<br />
Distribution<br />
(P4, D1)<br />
Shared Insights SCOR Seminar |<br />
Retail<br />
Customers<br />
(S1)<br />
Shared Insights SCOR Seminar |<br />
Shared Insights SCOR Seminar |<br />
Shared Insights SCOR Seminar |<br />
18<br />
1<br />
50<br />
62<br />
D1<br />
Electronics<br />
Supplier<br />
D2.1<br />
Process Inquiry<br />
& Quote<br />
<strong>Supply</strong>-<br />
<strong>Chain</strong><br />
Big Air<br />
Small<br />
Air<br />
Comm’l<br />
Overall<br />
Rating<br />
120<br />
180<br />
300<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
D1<br />
Motor<br />
Supplier<br />
Supplier<br />
D1<br />
OEM<br />
Supplier<br />
D1<br />
Ref rigerant<br />
Supplier<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
D2.2<br />
Receive,<br />
Configure,<br />
Enter and<br />
Validate Order<br />
M2.1<br />
Schedule<br />
Production<br />
Activities<br />
D2.3<br />
Reserve<br />
Resources &<br />
Determine<br />
Delivery Date<br />
D2.15<br />
Invoice<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Perfect Order<br />
Fulfillment<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Criteria<br />
Weight<br />
P2<br />
S1<br />
M2.2<br />
Revenue<br />
& Rank<br />
1<br />
2<br />
3<br />
Issue<br />
Sourced/In-‐Process<br />
Product<br />
D2.4<br />
20%<br />
Basic Units<br />
Consolidate Orders<br />
D2.14<br />
Install Product<br />
0.2<br />
0.4<br />
0.6<br />
P1<br />
P3<br />
M1<br />
M2<br />
Order Fulfillment<br />
Cycle Time<br />
S1.4<br />
M2.3<br />
Gross<br />
Margin<br />
& Rank<br />
2<br />
1<br />
3<br />
Transfer Product<br />
20%<br />
P4<br />
Produce and Test<br />
D2.5<br />
Build Loads<br />
D2.13<br />
Receive & Verify<br />
Product by<br />
Customer<br />
D2<br />
0.4<br />
0.2<br />
0.6<br />
Commercial<br />
Distribution<br />
Our Company<br />
<strong>Supply</strong> <strong>Chain</strong><br />
Flexibility<br />
Number of<br />
SKU’s &<br />
Rank<br />
1<br />
2<br />
3<br />
S1<br />
M2.4<br />
Package<br />
D2.6<br />
Route<br />
Shipments<br />
D2.12<br />
Ship Product<br />
20%<br />
0.2<br />
0.4<br />
0.6<br />
Controls Plant<br />
Unit<br />
Volume &<br />
Rank<br />
1<br />
2<br />
3<br />
20%<br />
0.2<br />
0.4<br />
0.6<br />
Strategic<br />
Value<br />
& Rank<br />
0.6<br />
Shared Insights SCOR Seminar |<br />
P3<br />
M1<br />
P4<br />
D1<br />
Retail<br />
Distribution<br />
1<br />
2<br />
3<br />
S2<br />
20%<br />
Commercial<br />
Customer<br />
0.2<br />
0.4<br />
Customer<br />
Shared Insights SCOR Seminar |<br />
M2.5<br />
Stage Finished<br />
Product<br />
D2.7<br />
Select Carriers<br />
& Rate<br />
Shipments<br />
D2.11<br />
Load Product &<br />
Generate<br />
Shipping<br />
Documentation<br />
M2.6<br />
Release<br />
Finished<br />
Product to<br />
Deliver<br />
D2.9<br />
Pick Product<br />
D2.10<br />
Pack Product<br />
Shared Insights SCOR Seminar |<br />
<strong>Supply</strong> <strong>Chain</strong><br />
Mgmt Cost<br />
Cash-to-Cash<br />
Cycle Time<br />
Shared Insights SCOR Seminar |<br />
S1<br />
19<br />
Retail<br />
Customers<br />
D2.8<br />
Receive<br />
Product from<br />
Source or<br />
Make<br />
37<br />
51<br />
68<br />
Attribute<br />
Reliability<br />
Responsiveness<br />
Flexibility<br />
Cost<br />
Assets<br />
Metric (level 1)<br />
Perfect Order Fulfillment<br />
Order Fulfillment Cycle Time<br />
Ups. <strong>Supply</strong> <strong>Chain</strong> Flexibility<br />
<strong>Supply</strong> <strong>Chain</strong> Mgmt Cost<br />
Cash-to-Cash Cycle Time<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Company Parity Adv<br />
98%<br />
14 days<br />
62 days<br />
10.1%<br />
22 days<br />
Superior<br />
Parity<br />
Gap<br />
Req<br />
Gap<br />
Shared Insights SCOR Seminar |<br />
Shared Insights SCOR Seminar |<br />
Shared Insights SCOR Seminar |<br />
Shared Insights SCOR Seminar |<br />
28<br />
40<br />
60<br />
70<br />
Reliability<br />
Responsiveness<br />
Flexibility<br />
Cost<br />
Asset<br />
Management<br />
Big<br />
Airco<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Scope<br />
Migration <br />
Approach<br />
Timing<br />
Project Risks & <br />
C omplexity<br />
Cost<br />
Value<br />
Processes supported<br />
• S1, D1<br />
• Immediate<br />
• Medium Risk<br />
• Medium Complexity<br />
• $500K<br />
Copyright © <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. 2006. All rights reserved.<br />
Small<br />
Airco<br />
Business Groups<br />
• FH9: _x__<br />
• FM: _x__<br />
• FD: ____<br />
Comm’l<br />
Objectives<br />
• Reduce Cycle time by direct shipping from factory to commercial customers<br />
Analysis Issue<br />
• Order Cycle Time, SCM Cost % Revenue<br />
• Complete Critical Direct inbound links<br />
• Create local DC<br />
• Move new procurement to store at local DC<br />
• Drain Regional DC<br />
• Close/Sell Assets<br />
Geography<br />
• Sweden: _x__<br />
• Belgium: _x__<br />
• France: _x__<br />
• Eliminates a net 1.5% of SC M cost as % of revenue; 2 Days OC T<br />
Shared Insights SCOR Seminar |<br />
Shared Insights SCOR Seminar |<br />
Shared Insights SCOR Seminar |<br />
Functions/Groups<br />
Integrated Logistics<br />
Integrated Procurement<br />
Shared Insights SCOR Seminar |<br />
32<br />
42<br />
55<br />
71<br />
Resolving Issues: the “Project”<br />
Project Charter Outline<br />
Example: ComfyCo<br />
<strong>Supply</strong> <strong>Chain</strong> Priority: ComfyCo<br />
Scorecard<br />
Identify Competitive Requirements<br />
Section Subsection<br />
Content/Reason<br />
Introduction Context<br />
Understanding of Document<br />
<strong>Overview</strong> Scope<br />
<strong>Supply</strong>-<strong>Chain</strong>s Considered<br />
Business Objectives Metrics<br />
Project Objectives Five-Phase Deliverables<br />
Project Methodology<br />
SCOR Project Roadmap<br />
Approach<br />
Schedule<br />
Timeline, Meetings<br />
Deliverables<br />
Detailed Deliverables<br />
Risk<br />
Level<br />
Program Management Key Areas<br />
1<br />
Budget<br />
Cost<br />
Organization<br />
Chart and Responsibilities<br />
Benefits<br />
Measures of Success, Analysis<br />
Communication Who, How, Why, What, When<br />
Parity, Advantage, Superior<br />
minus<br />
equals<br />
Level 2<br />
We now link strategy,<br />
Parity Median of<br />
performance, and benchmark<br />
Statistical Sample<br />
to identify performance<br />
Advantage Midpoint of Parity<br />
required of strategy<br />
and Superior<br />
Superior 90 th percentile of<br />
population<br />
• Continuing Information on our Example Company, what are<br />
the distinct supply-chains<br />
Geography – Customer or Market Channel<br />
<strong>Supply</strong>-<strong>Chain</strong><br />
Retail<br />
Commercial<br />
Definition Matrix<br />
Big-Box<br />
Internet<br />
Commercial<br />
Commercial<br />
Retailer<br />
Direct<br />
Building<br />
Major Acct<br />
Product<br />
Basic<br />
Geographic<br />
Context<br />
Big AirCo<br />
x x<br />
Small Airco x x<br />
Custom<br />
Industrial<br />
x<br />
Standard<br />
Industrial<br />
x x<br />
Geo Map of ComfyCo (US)<br />
ComfyCo<br />
Major Level 2<br />
Entities<br />
processes<br />
Major<br />
Suppliers<br />
Basic Flow<br />
Indication<br />
Customer<br />
Entities<br />
<strong>Supply</strong>-<strong>Chain</strong> Selection Decision Matrix<br />
Competitive • Procedure<br />
Performance Requirements<br />
• Prioritize supply chain<br />
Attribute or<br />
Category<br />
performance requirements<br />
for each relevant<br />
customer/market channel<br />
S A S<br />
• Within a channel you get 1<br />
superior (S), 1 advantage<br />
(A), and two parity (P)<br />
Process Team<br />
• Each unique combination of<br />
• The ComfyCo “Commercial” <strong>Supply</strong>-<strong>Chain</strong> has been<br />
A P A<br />
ratings defines Your <strong>Supply</strong><br />
<strong>Chain</strong> Strategy for the<br />
prioritized by sponsor for improvement.<br />
channel<br />
P S P • Think of the rating as a<br />
desired state, NOT where<br />
Tiger Team<br />
you want to improve the<br />
P P P<br />
most<br />
SWAT Team<br />
ComfyCo Thread Diagram<br />
Optimization<br />
Example Issues<br />
Team<br />
Fishbone<br />
1. Multiple Product touch factory to Warehouse 22. No visibility on order load when replenishing<br />
Planning<br />
2. Highly variable demand from channels<br />
inventory<br />
Level 2<br />
Notation<br />
3. Channel config constantly changes<br />
23. No demand visibility to reflect to suppliers<br />
Processes<br />
4. One chance per day to ship<br />
for critical parts<br />
5. Channel not ready for delivery<br />
24. Not understanding what are priority build<br />
orders<br />
6. Losing priority shipments<br />
25. Configuration errors by customer<br />
7. Takes a lot of time to enter channel orders<br />
Basic<br />
26. No visibility to channel of inventory for sales<br />
8. Duplicate effort entering channel orders<br />
Process Flow<br />
w/channel<br />
27. Inventory too high AND too low because<br />
forecasting errors<br />
9. Factory locks schedule for 3 days, no<br />
flexibility for demand change<br />
28. Ability to expedite critical parts for key<br />
customers<br />
10. Multiple-touch on OEM material from Asia<br />
29. Long transit time from factory to warehouse<br />
11. Logistics providers not aligned to our<br />
priorities<br />
30. Losing inventory in warehouse for key<br />
customers<br />
12. Factory doesn’t always build to plan,<br />
sometimes to capacity<br />
31. Uneven workload on warehouse staff – high<br />
in AM, idle rest of day<br />
Problem<br />
Business<br />
is, there<br />
13. Selling what we don’t<br />
is<br />
have, and not selling<br />
already a Problem<br />
Key Entities<br />
Context<br />
what we do<br />
32. Damage to material receiving at warehouse<br />
during peak shipping<br />
14. Takes forever to schedule an order to<br />
inventory<br />
33. Duplicate builds if boxes not tagged<br />
correctly to end-cust<br />
Basic<br />
15. No visibility on inbound material for order<br />
planning<br />
34. Poor scheduling of staff for shipping –<br />
sometimes too many, sometimes too few<br />
16. Chasing down inventory for order planning<br />
Problem<br />
takes a long time – manual<br />
35. Factory adherence to schedule builds<br />
17. Inventory picture for order planning not<br />
36. Some products run out of inventory<br />
always accurate<br />
locations at WHSE – overbuild<br />
Partitioning<br />
18. Configuration of Airco unit – can’t always<br />
37. Supplier complaints about inaccurate<br />
manufacturing and must ’çlean’orders<br />
forecasting<br />
19. Only one person in order management who<br />
38. Extra costs due to excess RAW in<br />
understands configuration rules<br />
demurrage<br />
20. Errors in re-keying quotes to orders<br />
39. Too few key workers in factory for complex<br />
configurations<br />
21. Time taken to re-key quote to to order<br />
40. No way to get orders dropped when factory<br />
idle<br />
Weighted Result<br />
Ranking<br />
Pareto<br />
Process Worksheet 1<br />
Interviewees:<br />
Accountable<br />
Companies don’t manage with Projects<br />
Captured SCOR Level-3 Model<br />
Practices Benchmarking<br />
Transaction Productivity Analysis<br />
Status SCOR<br />
Efficiency Yield Practices Vol Time Elapsed<br />
RASCI Analysis<br />
Level<br />
And Subsequent<br />
3<br />
Identification of nextstep<br />
Analysis Focus<br />
Level 4<br />
Input(s) - Highlight Primary Input<br />
Step<br />
1<br />
2<br />
3<br />
4<br />
Process Steps (>4<br />
5<br />
and