M4SC Program Overview - Supply Chain Council
M4SC Program Overview - Supply Chain Council
M4SC Program Overview - Supply Chain Council
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<strong>M4SC</strong> <strong>Program</strong> <strong>Overview</strong>© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 1 | 29 Sep 2011
<strong>M4SC</strong> Objectives• Open Standard – like SCOR, managed by SCC butavailable generally for testing and improvement• Defined – management steps are repeatable, and resultin same results with same inputs; not case-study based• Scalable – applicable to small supply chains, as well asto global, multi-partner extended supply chains• General Purpose – configurable to meet multiple needsbased on cultural, organizational or other businessrequirements© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 3 | 29 Sep 2011
<strong>M4SC</strong> Process• Synthesize – Create a “strawman” methodology formanagement based on experience and existingpractitioner examples• Organize – create a Professional Managementstandards committee to review, improve, and extend thestrawman framework• Research – review existing process in contributorcompanies, identify gaps in standard, and create newreleases based on data• Release – release method to public, and driveunderstanding through training, seminars, and coaching© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 4 | 29 Sep 2011
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Align Strategy ModulesBusiness PlanAnalysis<strong>Supply</strong> <strong>Chain</strong>Segmentation<strong>Supply</strong> <strong>Chain</strong>SWOT Analysis<strong>Supply</strong> <strong>Chain</strong>StrategyDefinition<strong>Supply</strong> <strong>Chain</strong>Data Collection<strong>Supply</strong> <strong>Chain</strong>Gap Analysis<strong>Supply</strong> <strong>Chain</strong>Grouping<strong>Supply</strong> <strong>Chain</strong>RACIAnalysisSCORcardBenchmarking<strong>Supply</strong> <strong>Chain</strong>Prioritization<strong>Supply</strong> <strong>Chain</strong>NetworkDefinitionKPI RACIAnalysis© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 7 | 29 Sep 2011
Align Network Modules<strong>Supply</strong> <strong>Chain</strong>NetworkDefinitionThreadDiagramNetwork MetricDecompositionSolutionDefinitionNetworkDefinitionNetworkChangePrioritizationNetwork RACIAnalysisNetwork MetricPrioritizationNetwork BestPracticesAnalysisNetwork GRIDAnalysis© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 8 | 29 Sep 2011
Align Processes ModulesProcess FlowCaptureProcess ValueStream ModelProcess RACIAnalysisProcessSolutionDefinitionProcess To-BeDefinitionProcessChangePrioritizationProcess DataCaptureProcess BestPracticesAnalysisProcessRedesignSimulationProcess CycleEfficiencyAnalysisProcessBusiness RulesImpactProcessOrganizationalImpact© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 9 | 29 Sep 2011
Align Resources ModulesSkills CaptureProceduresCaptureTechnologyCaptureOrganizationalReview<strong>Program</strong>ResourcePlanningResourceChangePrioritizationSkills ResourcePlanningTechnologyResourcePlanning© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 10 | 29 Sep 2011
Example SWOT Analysis• Example SWOT includes– Product/Customer stratification – from <strong>Supply</strong> <strong>Chain</strong> Definition– Strengths – current positions– Weaknesses – current positions– Threats – far future issues– Opportunities – near future challenges• Not visualized as a traditional 4-Square SWOT, but easier to manage,especially with a large volume of <strong>Supply</strong> <strong>Chain</strong>s.SC Strength Weakness Threat OpportunityBig BoxSmall AirStandard15% Market Share98% RetentionLargest network8% Market ShareStrong in NorthEastHigh MarginRegional DepotsPreferred SupplierLow C2CSelf-CompetitionLead TimeValue PerceptionChannel ConflictNational NetworkInventoryNo/Low GrowthUS Presence OnlyIntegrated supplyCost VariabilityGreenWhite LabelMargin ErosionGreenCost VariabilitySpend reductionNew FuelsCost+ BiddingStreamline NetworkLead TimeGreenInventoryNetwork DesignRisk HedgingIntegrated NetworkNew FuelsCost management© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 11 | 29 Sep 2011
Choosing Priority: 5 Minute <strong>Supply</strong> <strong>Chain</strong> Strategy• Review rows top tobottom, left to right• Choose firstrelevant supplychain feature• If no entries to rightof feature – choosethe likely priority• Otherwise look atfeatures on nextlower rowBuildStrategyBuyMakeModel Lifecycle Likely PriorityETOBTOBTSStartCompetitiveCommodityEOL1. Assets2. Cost1. Reliability2. Response1. Assets2. Reliability1. Flexibility2. Response1. Cost2. Reliability1. Cost2. Assets1. Assets2. Cost© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 12 | 29 Sep 2011
Physical Location InventoryExample: Gulf RegionName Group Address Moves from Moves to Plan Execute ReturnWarehouse A Distribution Jubail, Saudi ArabiaCustomer ECustomer FS1, D1 DR1Customer GWarehouse D Distribution Jeddah, Saudi ArabiaCustomer ACustomer BCustomer CCustomer DS1, D1 DR1Plant A Manufacturing Al Khobar, Saudi Arabia Vendor A Warehouse D S1, M1, D1Plant B Manufacturing Al Hasa, Saudi ArabiaPlant C Manufacturing Ha'Il, Saudi ArabiaPlant DManufacturingKing AbdullahEconomic City, SaudiArabiaVendor CVendor DVendor BVendor EWarehouse D S1, M1, D1Warehouse A S1, M1, D1Vendor C Warehouse D S1, M1, D1Eastern Planning Taif, Saudi Arabia P2, P3, P4HQ Planning Riyadh, Saudi Arabia P1, P2, P3, P4Customer A Customer Manama, Bahrain Warehouse D P2 SCustomer B Customer Doha, Quatar Warehouse D P2 SCustomer C Customer Kuwait City, Kuwait Warehouse D P2 SCustomer D Customer Dharan, Saudi Arabia Warehouse D P2 SCustomer E Customer Yanbu, Saudi Arabia Warehouse A P2 SCustomer F Customer Ammam, Jordan Warehouse A P2 SCustomer G Customer Cairo, Egypt Warehouse A P2 S© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 13 | 29 Sep 2011Vendor A Vendor Jeddah, Saudi Arabia Plant A P4 D
Example: Gulf Region Thread DiagramsP1sP2 sP3 sP4sDsSsDsS1 sM1 sD1sSsDsS1 sM1 sD1sS1sD1sSA B C Plant A Plant B HQ Whs A A B C E F GVendors My Company Customers© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 15 | 29 Sep 2011
Cash Cycle Time Example - DeltasMidwest ProductionEastern Region WarehouseMetric Total S1 M1 D1 S1 D1Cash to CashCycle Time15 DaysDays SalesOutstandingDays PayablesOutstandingInventory Daysof <strong>Supply</strong>2 Days 2 Days3 Days 3 Days10 DaysRaw2 DaysWIP5 DaysFinished Goods 1 Days 0 Days 2 Days© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 16 | 29 Sep 2011
1) Natural Language Flow: Example NarrativeSCOR Who NarrativeReceive order via FAXVerify Part Numbers, quantities and pricesEnter in Order Management System, and perform credit checkRelease Order for shippingOrder is picked and wrapped for FedexFedex labels are applied, and order is put in outbound binFedex picks up completed orders 5pm• SCOR Language is not used forprocess steps• No Process step is “guessed at”• Narrative is from the point of viewof the person(s) performing workSystem receives Fedex notification of delivery day or so later© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 18 | 29 Sep 2011
4) Create Process Flow: DiagramSCOR Who NarrativeD1.2 OM Receive order via FAXD1.2 OM Verify Part Numbers, quantities and pricesOMD1.2D1.3 D1.4D1.2 OMFINEnter in Order Management System, and perform credit checkD1.3 OM Release Order for shippingD1.4 OM OM System Selects Orders for “today”D1.9,D1.10WHSOrder is picked and wrapped for FedexFIND1.2D1.15 WHS Invoice generated when Order is pickedD1.11 LOG Fedex labels are applied, and order is put in outbound binD1.12 LOG Fedex picks up completed orders 5pmD1.13 LOG System receives Fedex notification of delivery day or so laterWHSD1.9D1.10D1.15LOGD1.11D1.12 D1.13© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 19 | 29 Sep 2011
Example Value Stream MapsS1.3EstablishSourcing PlansSupplierMakesS1.1ScheduleOrderssS1.2ReceiveMaterialsS1.3Verify MaterialsS1.4TransferMaterialsS1.5AuthorizePayment0.5 FTE0.5 FTE0.5 FTE0. 5 FTE0.25 FTEC/T = 5mnUp = 79.17%C/T = 5mnUp = 92.5%C/T = 1mnUp = 97.5%C/T = 15mnUp = 93.75%C/T = 1mnUp = 97.5%5 mn 5 mn 1 mn 15 mn 1 mn2 d 1 mn 5 mn 15 mn© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 20 | 29 Sep 2011
Example PCE AnalysisIdle TimeTransact TimeTransact Idle Transact perFTERework/DaTime Time HouryPCE Yield WastesS1.1 Sched Delivery 5 5 3 0.5 5 50.00% 79.17% 20.83%sS1.2 Receive Product 5 1 5 0.5 3 83.33% 92.50% 7.50%sS1.3 Verify Product 1 5 5 0.5 1 16.67% 97.50% 2.50%sS1.4 Transfer Product 15 15 2 1 1 50.00% 93.75% 6.25%sS1.5 Payment 1 2 5 0.25 1 33.33% 97.50% 2.50%© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 21 | 29 Sep 2011
TimelineDate ActivitiesJune 2012 Launch research team; initial strawman reviewJuly 2012 Initial <strong>M4SC</strong> Beta trainings; team organizationAugust 2012 Continuing <strong>M4SC</strong> Beta trainingsSeptember 2012 <strong>M4SC</strong> program 1.0 Candidate release proposalOctober 2012 <strong>M4SC</strong> 1.0 Training Launch - TrainersNovember 2012 <strong>M4SC</strong> 1.0 Training SchedulingDecember 2012 <strong>M4SC</strong> 1.0 Training© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 22 | 29 Sep 2011
Many thanks!© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 22012 SCW SEA <strong>M4SC</strong> <strong>Overview</strong> | 23 | 29 Sep 2011
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