Sunday, April 24, 2005
SUPPLY CHAIN MANAGEMENT-SCOR-TAKING CONSULTANCY OUT OF PARANOID’S
Source- PA Consulting Group and Supply Chain Council represented by GM Group
What is Supply Chain Management?
Supply chain management is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service, manufactures that product or service and delivers it to customers. The following are five basic components for supply chain management.
1. Plan-This is the strategic portion of supply chain management. You need a strategy for managing all the resources that go toward meeting customer demand for your product or service. A big piece of planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less and delivers high quality and value to customers.
2. Source-Choose the suppliers that will deliver the goods and services you need to create your product or service. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships. And put together processes for managing the inventory of goods and services you receive from suppliers, including receiving shipments, verifying them, transferring them to your manufacturing facilities and authorizing supplier payments.
3. Make-This is the manufacturing step. Schedule the activities necessary for production, testing, packaging and preparation for delivery. As the most metric-intensive portion of the supply chain, measure quality levels, production output and worker productivity.
4. Deliver-This is the part that many insiders refer to as "logistics." Coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.
5. Return-The problem part of the supply chain. Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.
The Supply Chain Operations-Reference Model has been developed by Rabin Todd and McGrath. This one is the latest consulting tool which is ready to hit the market.
What is a Process Reference Model?
For the first time the patriarch of the consulting world sat together and tried to reach the bottom line. Despite of runaway success of SCM it was nevertheless possible to merge the individual factors of SCM. SCOR integrates the well known concepts of business process re-engineering, benchmarking and process into a cross-functional framework.
Business Process Re-engineering (Capture the as-is process and design the to-be future state.)
Benchmarking (Quantify the operational process of similar companies and establish internal targets based on “best-in-class” results.
Best Practices Analysis (Characterize the Management practices and software solutions to give the result the “best-in-class” performance.)
SCOR addresses all three basic aspects.
SCOR Contents:
· Standard Description of Management Process
· A Framework of Relationship among the Processes
· Standard Matrices to Measure the Performance
· Management Practices that produce the best-in-class performance
· Standard alignment to features and functionality
Objective of SCOR
· Implemented purposefully to achieve the competitive advantage
· Described unambiguously and communicated
· Measured, managed and controlled
· Tuned and re-tuned to a specific purpose
Boundaries of SCM
From your supplier’s supplier to your customer’s customer
Scope of SCOR
PLAN-Plan- Demand /Supply and Planning Management
· Balances resources with requirements and establish/communicate plans for the whole supply chain, including return and the execution process of source, make and deliver.
· Management of business rules, the supply chain performance, data collection, inventory, capital assets, transportation, planning and configuration, and regulatory requirements and compliances.
· Align the supply chain unit with financial plan.
SOURCE-Sourcing Stocked, Make-to-order, and Engineer-to-Order Product
· Schedule deliveries, receive, verify and transfer the product and authorize supplier’s payments.
· Identify and select supply sources, when not predetermined as for engineer-to-order product.
· Manage business rules, assess supplier performance and manage data.
· Manage inventory, capital assets, incoming product, supplier network, import/export requirements and supplier’s agreements.
MAKE-Make-to-Stock, Make-to-Order, and Engineer-to-Order Production Execution
· Schedule Production Activities, issue product, produce and test, package, stage product and release product to deliver
· Finalize engineer-to-engineer product
· Manage rules, performance, data, in-process products (WIP), equipments and facilities, transportation, production network and regulatory compliance for production.
DELIVER-Order, Warehouse, Transportation, and Installation Management for Stocked, Make-to-order, and Engineer-to-Order Product
· All order management steps from processing customer’s enquiries and quotes to routing shipments and selecting careers.
· Warehouse Management from receiving and picking product to load and ship the product.
· Receive a product at customer and install it of necessary
· Invoicing the customer
· Manage delivery rules, performance, information, finished product inventories, capital assets, transportation, product life cycle, and import/export requirements.
RETURN-Return of Raw Materials and Receipt of Returns of Finished Goods
· All return defective product steps from source- identify product condition, disposition product, return authorization, schedule product shipment, and return defective product-and deliver-authorized product return, schedule return receipt, receive product, and transfer defective product.
· All return maintenance, repair and overhaul product steps from one source-identify product condition, disposition product, request product return authorization, schedule product shipment and return MRO product- and deliver- authorize product return, schedule return receipt, receive and transfer MRO product.
· All return excess product steps from source-identify product condition, disposition product, request product return authorization, schedule product shipment, and return excess product-and deliver-authorize product return, schedule return receipt, receive product and transfer excess product.
· Manage return business rules, performance, data collection, return inventory, capital assets, transportation, network configuration and regulatory compliance and requirements.
What is Supply Chain Management?
Supply chain management is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service, manufactures that product or service and delivers it to customers. The following are five basic components for supply chain management.
1. Plan-This is the strategic portion of supply chain management. You need a strategy for managing all the resources that go toward meeting customer demand for your product or service. A big piece of planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less and delivers high quality and value to customers.
2. Source-Choose the suppliers that will deliver the goods and services you need to create your product or service. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships. And put together processes for managing the inventory of goods and services you receive from suppliers, including receiving shipments, verifying them, transferring them to your manufacturing facilities and authorizing supplier payments.
3. Make-This is the manufacturing step. Schedule the activities necessary for production, testing, packaging and preparation for delivery. As the most metric-intensive portion of the supply chain, measure quality levels, production output and worker productivity.
4. Deliver-This is the part that many insiders refer to as "logistics." Coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.
5. Return-The problem part of the supply chain. Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.
The Supply Chain Operations-Reference Model has been developed by Rabin Todd and McGrath. This one is the latest consulting tool which is ready to hit the market.
What is a Process Reference Model?
For the first time the patriarch of the consulting world sat together and tried to reach the bottom line. Despite of runaway success of SCM it was nevertheless possible to merge the individual factors of SCM. SCOR integrates the well known concepts of business process re-engineering, benchmarking and process into a cross-functional framework.
Business Process Re-engineering (Capture the as-is process and design the to-be future state.)
Benchmarking (Quantify the operational process of similar companies and establish internal targets based on “best-in-class” results.
Best Practices Analysis (Characterize the Management practices and software solutions to give the result the “best-in-class” performance.)
SCOR addresses all three basic aspects.
SCOR Contents:
· Standard Description of Management Process
· A Framework of Relationship among the Processes
· Standard Matrices to Measure the Performance
· Management Practices that produce the best-in-class performance
· Standard alignment to features and functionality
Objective of SCOR
· Implemented purposefully to achieve the competitive advantage
· Described unambiguously and communicated
· Measured, managed and controlled
· Tuned and re-tuned to a specific purpose
Boundaries of SCM
From your supplier’s supplier to your customer’s customer
Scope of SCOR
PLAN-Plan- Demand /Supply and Planning Management
· Balances resources with requirements and establish/communicate plans for the whole supply chain, including return and the execution process of source, make and deliver.
· Management of business rules, the supply chain performance, data collection, inventory, capital assets, transportation, planning and configuration, and regulatory requirements and compliances.
· Align the supply chain unit with financial plan.
SOURCE-Sourcing Stocked, Make-to-order, and Engineer-to-Order Product
· Schedule deliveries, receive, verify and transfer the product and authorize supplier’s payments.
· Identify and select supply sources, when not predetermined as for engineer-to-order product.
· Manage business rules, assess supplier performance and manage data.
· Manage inventory, capital assets, incoming product, supplier network, import/export requirements and supplier’s agreements.
MAKE-Make-to-Stock, Make-to-Order, and Engineer-to-Order Production Execution
· Schedule Production Activities, issue product, produce and test, package, stage product and release product to deliver
· Finalize engineer-to-engineer product
· Manage rules, performance, data, in-process products (WIP), equipments and facilities, transportation, production network and regulatory compliance for production.
DELIVER-Order, Warehouse, Transportation, and Installation Management for Stocked, Make-to-order, and Engineer-to-Order Product
· All order management steps from processing customer’s enquiries and quotes to routing shipments and selecting careers.
· Warehouse Management from receiving and picking product to load and ship the product.
· Receive a product at customer and install it of necessary
· Invoicing the customer
· Manage delivery rules, performance, information, finished product inventories, capital assets, transportation, product life cycle, and import/export requirements.
RETURN-Return of Raw Materials and Receipt of Returns of Finished Goods
· All return defective product steps from source- identify product condition, disposition product, return authorization, schedule product shipment, and return defective product-and deliver-authorized product return, schedule return receipt, receive product, and transfer defective product.
· All return maintenance, repair and overhaul product steps from one source-identify product condition, disposition product, request product return authorization, schedule product shipment and return MRO product- and deliver- authorize product return, schedule return receipt, receive and transfer MRO product.
· All return excess product steps from source-identify product condition, disposition product, request product return authorization, schedule product shipment, and return excess product-and deliver-authorize product return, schedule return receipt, receive product and transfer excess product.
· Manage return business rules, performance, data collection, return inventory, capital assets, transportation, network configuration and regulatory compliance and requirements.
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have been visiting various blogs for my Supply Chain Consultants . I have found your blog to be quite useful. Keep updating your blog with valuable information... Regards
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