apics webinar series peter bolstorff, cscp, scor-p executive director apics supply chain council...
TRANSCRIPT
APICS Webinar Series
Peter Bolstorff, CSCP, SCOR-PExecutive DirectorAPICS Supply Chain Council
September 23, 2015
SCOR 101
2 © APICS Confidential and Proprietary
Introduction
Delegate from 3M and then Imation for SCOR 1.0 in 1996
Expertise in Manufacturing and Planning including Center of Excellence Leadership for Sales and Operations Planning
Authored, Supply Chain Excellence: A Handbook for Dramatic Improvement Using the SCOR Model, 3rd Edition
First Supply Chain Council non-staff Certified Instructor and now SCOR-P and CSCP
From 2002 to 2014, Helped 30+ Companies Analyze $13.5B USD Deriving $200M USD in Operating Income Improvements
Have volunteered with the SCC since the beginning
Industry experience includes Chemical, Retail, Food and Grocery, Electronics, Durable Goods, Consumer Packaged Goods, and Aerospace and Defense
Peter Bolstorff, CSCP, SCOR-PExecutive Director | APICS Supply Chain Council
3 © APICS Confidential and Proprietary
Seven Good Questions
1. Who is the APICS Supply Chain Council?
2. What is SCOR?
3. Why do companies use SCOR?
4. How do companies use SCOR?
5. What are the benefits companies realize as a result of using SCOR?
6. Who is using SCOR?
7. How can I or my company get started?
5 © APICS Confidential and Proprietary
APICS SCC
The legacy SCC integrated with the former APICS Foundation to form the new APICS SCC. The new organization continues the tradition of funding scholarships and student programs; still operates as a global, non-profit entity; and actively manages the Supply Chain Operations Reference (SCOR) model.
Programs and Services
Plossl Dissertation, Scholars Program, Student Case Competition
Research Projects, Corporate Advisory Board, Executive Summit
SCORmark™ Benchmark
Publications, Resource Library, and Case Studies
Other Value Chain Frameworks including M4SC, DCOR®, CCOR®, and PLCOR®
Training is now available through APICS
6 © APICS Confidential and Proprietary
New Value Proposition
APICS SCCAPICS
Training, certification and
networking
Research, benchmarking and
frameworks
APICS Value Proposition
APICS delivers a total individual and corporate value proposition.
We help individuals achieve career development goals.We help corporations achieve strategic supply chain goals.
Individuals Corporate, Public Sector and Academic
Institutions
8 © APICS Confidential and Proprietary
SCOR Framework
Supplier CustomerSuppliers’Supplier
Source
Internal or External
Your Organization
Return
Deliver MakeSource
Return
Plan
Deliver
Return
Source
Return
MakeSource
Return
Plan
Deliver
Return
DeliverMake
Plan
Return Return
Customers’Customer
Enable
Internal or External
EnableEnable
SCOR MODEL
9 © APICS Confidential and Proprietary
SCOR Value
Business process re-engineering
Best practice maturity assessment
Benchmarks
Organizational and Individual Supply Talent Assessment
Value of a Reference Model
The SCOR app is here! Download on App Store, iTunes or Google Play today. Search APICS SCOR
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SCOR Metrics
Attribute SCOR 11.0 Metrics
Reliability RL.1.1 Perfect Order Fulfillment
Responsiveness RS.1.1 Order Fulfillment Cycle Time
Agility AG.1.1 Upside Supply Chain Flexibility
AG.1.2 Supply Chain Upside Adaptability
AG.1.3 Downside Supply Chain Adaptability
AG.1.4 Overall Value At Risk (VAR)
Cost CO.1.1 Total Cost to Serve
Asset Management Efficiency
AM.1.1 Cash-to-Cash Cycle Time
AM.1.2 Return on Supply Chain Fixed Assets
11 © APICS Confidential and Proprietary
SCOR Hierarchy
1
2
3
4
Major Processes
Process Categories
ProcessElements
ImprovementPractices
Defines the operations strategy. Process capabilities are set
(M)ake(S)ource(P)lan
(E)nable(R)eturn(D)eliver
RetailETOMTOMTS
sD1 sD2 sD3 sD4
Defines the configuration of individual processes. The ability to execute is set. Focus is on processes, inputs/outputs, skills, performance, best practices, and capabilities
Use of kaizen, lean, TQM, six sigma, benchmarking
Description Schematic CommentsDefines the scope, content, and performance targets of the supply chain
sD1.1Process inquiry
and quote
sD1.2Receive, enter,Validate order
sD1.3Reserve inv. and
delivery date
sD1.4Consolidate
orders
sD1.5Build loads
sD1.6Route
shipments
Level
12 © APICS Confidential and Proprietary
Other APICS SCC Frameworks
Custom
er processesSup
plie
r pr
oces
ses
Product & PortfolioManagement PLCOR™
Supply Chain SCOR®
Product & Process Design
DCOR™
Sales & Support
CCOR™
Visual • 20 © APICS Confidential and Proprietary
SCOR Improvement Program Racetrack
C: Configure the Supply Chain
S:Set the Scope
O:Optimize Projects
Begin Next
Program
Rollout Approval
Preliminary ProjectPortfolio
Business Context Summary
SCOR ExecutionSCOR Deliverables
MetricSelection
SCORmarkBenchmarkingCompetitive
Requirements
GapAnalysis
Pre-SCOR Program Steps
StakeholderSupport
SCOR Education
Identify Organization
Identify Motivation Initiate Projects
Test, Pilot, Roll-outStrategicBusinessSummary
Document the Supply
Chain
InitialData
Review
Opportunity Analysis
Create Project
Portfolio
Link Gaps to Projects
Document Initial
Projects
ProjectKickoffs
BenefitSummaryR:
Ready forImplementation
SCORcard
PrioritizeProjects
Create SCOR Level 4 Processes
SCORWorkshop
DataSelection
MetricDefinition
ProgramKickoff
IdentifyMotivation
SupplyChain
DefinitionMatrix
CompetitiveRequirements
ThreadDiagram
StapleYourself
Level 3 ProcessDiagram
Improvement Program Charter
Confirm Program
Scope
GeographicMap
IndustryComparison
Visual • 21 © APICS Confidential and Proprietary
SCOR Improvement Program Organization
Detail ProjectSubprojects
Executive team
Executivesponsor
Teamleader
Other teams
Program team
Improvement team
Operationsmanagement
Program stakeholders
Customers
Functionalmanagers
Otherstakeholders
Channelpartners
Technologyteam
Supply chainteam
Financialteam
Program champion
Visual • 22 © APICS Confidential and Proprietary
Improvement Program Charter Deliverable
Section Subsection Discussion
IntroductionPurpose, table of contents, control/maintenance Improvement program charter overview
Program Definition
Scope Which supply chains selected
Business objectives Performance metrics
Improvement program objectives Supply chain performance targets
Program organizationDefinition of program team and shareholders
Program
Contents
Methodology Five-phased SCOR racetrack
Schedule Timeline, detailed activities, meetings
Roles Program activity responsibles
Deliverables and milestones Detailed deliverables and milestones
Risks and dependencies Critical risks and avoidance strategies
Benefits Measures of success, analysis
23 © APICS Confidential and Proprietary
Measuring Supply Chain Excellence
Attributes Metrics ParityAdvanta
geSuperi
or
Target Level
Performance
Your Organizat
ion
Gap to
Target
Customer
Facing Metrics
ReliabilityPerfect Order Fulfillment (%)
77.5% 85.6% 93.7% Advantage 69.2% 16.4%
Responsiveness
Order Fulfillment Cycle Time (days)
9.1 6.5 3.9 Parity 7.1 –
Agility
Supply Chain Flexibility (days)
45.0 33.0 21.0
Advantage
15.0 –
Supply Chain Adaptability (%)
35.5% 51.3% 72.0% 10.0% 41.3%
Internal
Facing Metrics
CostTotal Supply Chain Management Cost
% Revenue8.7% 5.6% 2.4% Superior 8.1% -5.7%
Asset Management
Efficiency
Cash to Cash Cycle Time (days)
55.4 30.5 5.5 Parity 160.5 -105.1
24 © APICS Confidential and Proprietary
Organization and Individual Talent Assessment
Gartner Maturity Stage Knowledge and Skills Process-Practice-
Performance-People
Orchestration SCOR-P and M4SC Leadership Series
Supplier’s Supplier to Customer’s Customer Supply Chain Community
CollaborationCSCP – Certified Supply Chain Professional
Supplier to Customer Single Instance
Anticipating
CPIM – Certified in Production and Inventory Management
Internal Process
ReactingPrinciples of Operations Management
Single Process
Visual • 26 © APICS Confidential and Proprietary
SCOR Implementation Benefits
Average Operating Income improvement of 3% to sales (high 4.5% - low 1.5%)
Typical inventory turn improvements of 20% Delivery reliability improvement of 25% 20% improvement in flexibility 30% faster system implementations with 30% more
functionality Continuous improvement portfolios refreshed at a value
of 0.5% Mitigation of costs associated with risk management
Source: APICS Supply Chain Council 2002 to 2014
29 Confidential © 2013 APICS
Organizational Snapshot
404
CORPORATE AFFILIATES &
SPONSORs
ACADEMICAFFILIATES
PUBLIC SECTORAFFILIATES
6091253
253
1417
131 64
12
RK
COUNTRY #
1 United States 146
2 Germany 32
3 China 31
4 Switzerland 16
5 South Africa 15
6 Netherlands 14
7 United Kingdom
13
8 Canada 10
9 France 10
10 Sweden 10
TOP 10 COUNTRIES
31 © APICS Confidential and Proprietary
APICS SCC Corporate Engagement Model
Affiliates
Global Employee Access to Content
Executive Summit
Research Projects
Benchmark
Digital Library
Training
Frameworks
Sponsors
Global License and Access to Content
Leaders of Leaders Focus Forums
Executive Summit
Digital Library
Training
Frameworks
Benchmark
32 © APICS Confidential and Proprietary
APICS SCC Individual Engagement Model
Evangelist
Download the SCOR app
Attend a public training class
Earn CSCP Certification
Earn the SCOR-P endorsement
Become an APICS member and participate on a research project
Executive Sponsor
Attend an executive briefing
Contact APICS SCC to discuss programs
Budget for affiliation
Host in-house SCOR class
Benchmark your company
Participate on APICS corporate advisory board
Attend APICS SCC Executive Summit
33 © APICS Confidential and Proprietary
Continue the Conversation
Peter Bolstorff, CSCP, SCOR-PExecutive Director APICS Supply Chain [email protected]
Carolyn Lawrence – For Affiliate Subscription and On BoardingDirector Corporate Development APICS Supply Chain [email protected]
Melinda Spring, SCOR-P – For Research ProjectsDirector ProgramsAPICS Supply Chain [email protected]
Dominic Longo, CSCP – For TrainingDirector Corporate ServicesAPICS [email protected]