M4SC Network Layer - Supply Chain Council
M4SC Network Layer - Supply Chain Council
M4SC Network Layer - Supply Chain Council
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<strong>M4SC</strong> Overview:<br />
<strong>Network</strong> Management<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 1 | 23 July 2013<br />
Caspar Hunsche, Research Director SCC
<strong>M4SC</strong>: <strong>Layer</strong>ed Management<br />
Business<br />
Strategy<br />
Feedback<br />
Drives<br />
<strong>Supply</strong> <strong>Chain</strong><br />
Strategy<br />
Segment business into supply<br />
chains, determine<br />
performance<br />
Drives<br />
Feedback<br />
Optimize network for strategic<br />
performance requirements<br />
<strong>Supply</strong> <strong>Chain</strong><br />
<strong>Network</strong><br />
Feedback<br />
Drives<br />
<strong>Supply</strong> <strong>Chain</strong><br />
Process<br />
Manage processes towards<br />
strategic network goals<br />
Drives<br />
Feedback<br />
<strong>Supply</strong> <strong>Chain</strong><br />
Resources<br />
Continuously align resources<br />
to meet process goals<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 2 | 23 July 2013
<strong>Layer</strong> 2 <strong>Network</strong><br />
• Problems <strong>Network</strong> <strong>Layer</strong> Addresses<br />
• Major Components<br />
• Drivers<br />
• Use<br />
• Evolution<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 3 | 23 July 2013
Common Problems in <strong>Supply</strong> <strong>Chain</strong> <strong>Network</strong><br />
• Ad hoc <strong>Network</strong> Management<br />
• One Size Fits All<br />
• Strategy, Tactics, Execution<br />
• Accountability<br />
• Measurable<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 4 | 23 July 2013
<strong>M4SC</strong> Strategy: Define <strong>Supply</strong> <strong>Chain</strong> <strong>Network</strong><br />
1. <strong>Network</strong> definition<br />
› Discovery and documentation of nodes (plants, suppliers,<br />
customers), material flows and products<br />
› What do we do where? What is our scope?<br />
2. Thread Diagram<br />
› Discovery and document process connections between<br />
suppliers, plants, warehouses and customers.<br />
› How are high level processes connected?<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 5 | 23 July 2013
<strong>M4SC</strong> Strategy: Analyze <strong>Supply</strong> <strong>Chain</strong> <strong>Network</strong><br />
3. RACI Analysis<br />
› Discovery and documentation of who is accountable for the<br />
performance of individual nodes in the supply chain<br />
› Who is responsible for each node/high level process?<br />
4. Practices Analysis<br />
› Discovery and comparison of existing high level practices to the<br />
strategic list of desired practices<br />
› Are we meeting standardization goals?<br />
5. Grid Analysis<br />
› Determine ability of the supply chain to meet its performance<br />
objectives for all product and customer compinations<br />
› Can my supply chain meet my performance goals?<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 6 | 23 July 2013
<strong>M4SC</strong> Strategy: Analyze <strong>Supply</strong> <strong>Chain</strong> <strong>Network</strong><br />
6. <strong>Network</strong> Metric Decomposition<br />
› Assignment of metrics and performance goals to supply chain<br />
network nodes and high level processes<br />
› Where in the network are my performance gaps?<br />
7. <strong>Network</strong> Metric Prioritization<br />
› Identify and document the performance gaps to pursue and<br />
which to postpone or ignore<br />
› Which problems will I try to solve?<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 7 | 23 July 2013
<strong>M4SC</strong> Strategy: Redesign <strong>Supply</strong> <strong>Chain</strong> <strong>Network</strong><br />
8. Redesign <strong>Network</strong><br />
› Discover and document new scenarios for how the supply chain<br />
is organized and high level process capabilities. This utilizes<br />
deliverables from all analysis steps<br />
› What should my network look like?<br />
› What are go-forward process performance goals?<br />
9. Test <strong>Network</strong> Redesign<br />
› Develop and execute tests to verify whether the proposed<br />
changes are projecting the right performance.<br />
› Are my changes feasible and impacts desirable?<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 8 | 23 July 2013
<strong>M4SC</strong> Strategy: <strong>Network</strong> Change Outcomes<br />
10. <strong>Network</strong> Change Prioritization<br />
› Agree and communicate the priorities for implementing changes<br />
to the network. Communication includes reference to the<br />
business and supply chain goals, and plans for the network and<br />
high level processes<br />
› What is the plan/urgency to implement each change?<br />
› What are go-forward process performance goals for each?<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 9 | 23 July 2013
<strong>M4SC</strong> <strong>Network</strong> Drivers<br />
• Change in strategy<br />
› Business strategy changes<br />
› <strong>Supply</strong> chain strategy changes<br />
• Major market events<br />
› Change to financial environment, competitive landscape,<br />
customer base<br />
• Feedback from other <strong>Layer</strong>s<br />
drives<br />
› Process performance goals cannot be met<br />
› Resource requirements cannot be met<br />
<strong>Supply</strong> <strong>Chain</strong><br />
<strong>Network</strong><br />
Events<br />
feedback<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 10 | 23 July 2013
<strong>M4SC</strong> <strong>Network</strong> Use<br />
• Validation of current supply chain configuration (network)<br />
• Definition of performance goals by node/high level<br />
process area within the supply chain – avoiding suboptimization<br />
• Definition of roles, responsibilities for a functional<br />
network management team – e.g. center of competency<br />
• Understanding of Accountabilities and Responsibilities in<br />
strategy management (RACI)<br />
• Definition of company standard process for execution of<br />
network management<br />
• Assessment of maturity of network mnagement capability<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 11 | 23 July 2013
<strong>M4SC</strong> <strong>Network</strong> Evolution<br />
Today:<br />
• Subset of our members-practitioners<br />
Future:<br />
• How to sell to my boss<br />
• Measurement and Best Practices<br />
• Automation<br />
• Risk and network management<br />
• Impact of ‘Green’ on network<br />
• Usage and Usability of Processes<br />
• Industry Specific Needs<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 12 | 23 July 2013
About <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong><br />
• Formed in 1996 to create and evolve a standard industry<br />
process reference model for supply chain for the benefit of<br />
helping companies rapidly and dramatically improve supply chain<br />
operations<br />
• SCC has established the supply chain world’s most widely accepted<br />
framework – the SCOR ® process reference model – for evaluating<br />
and comparing supply chain activities and their performance<br />
• SCC continually advances its tools and educates members<br />
about how companies are capitalizing on those tools<br />
› With membership open to all interested organizations<br />
› Global presence, volunteer driven<br />
• Offering public and in-house trainings and certification<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 13 | 23 July 2013
<strong>M4SC</strong> VOLUNTEER DRIVEN R&D<br />
GETTING STARTED<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 14 | 23 July 2013
<strong>M4SC</strong> Introduction Series<br />
Webinar <br />
18-‐Jul <br />
23-‐Jul <br />
30-‐Jul <br />
6-‐Aug <br />
12-‐Aug <br />
<strong>M4SC</strong> Ge4ng Started – Overview, Structure, Program Review 2014, <br />
ConversaEon <br />
<strong>M4SC</strong> Strategic Management Overview – Problems Strategy <strong>Layer</strong> <br />
Addresses, Major Components, Drivers, Use, and EvoluEon <br />
<strong>M4SC</strong> <strong>Network</strong> Management Overview – Problems <strong>Network</strong> <strong>Layer</strong> <br />
Addresses, Major Components, Drivers, Use, and EvoluHon <br />
<strong>M4SC</strong> Process Management Overview – Problems Process <strong>Layer</strong> <br />
Addresses, Major Components, Drivers, Use, and EvoluEon <br />
REPEAT INTRO <br />
22-‐Aug <br />
<strong>M4SC</strong> Resource Management Overview – Problems Resource <strong>Layer</strong> <br />
Addresses, Major Components, Drivers, Use, and EvoluEon <br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 15 | 23 July 2013
<strong>M4SC</strong> Volunteer Formation<br />
Webinar <br />
27-‐Aug <br />
10-‐Sep <br />
Volunteer Planning – Overview of <strong>M4SC</strong> Volunteer Research Program: <br />
OrganizaEon, Focus, EducaEon, Time Involvement, Research & <br />
Development, Release <br />
<strong>M4SC</strong> <strong>Network</strong> Training – Public/Volunteer – 2 Day Training <br />
12-‐Sep <br />
<strong>M4SC</strong> Process Training – Public/Volunteer – 2 Day Training <br />
16-‐Sep <br />
23-‐Sep <br />
30-‐Sep <br />
Team OrganizaEon – Strategy, <strong>Network</strong>, Process, Resource Team Design: <br />
Leadership, DocumentaEon, CommunicaEon, Planning, Research Groups <br />
<strong>M4SC</strong> Strategic Focus – Problems to be resolved in next Research Cycle <br />
(Goals), Component Drivers to problems, and Agreed methodology <br />
Planning 2013/2014 – Dates/Times 2013/2014 Virtual, Face-‐to-‐Face <br />
meeEngs, CommunicaEon Planning, Commi`ments <br />
17 Oct <strong>M4SC</strong> Research TacEcal Focus – Data Repositories, Research InformaEon <br />
Gathering, Assessment, Conflict ResoluEon, CommunicaEon <br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 16 | 23 July 2013
<strong>M4SC</strong> Volunteer Education & Research Launch<br />
Webinar <br />
21-‐Oct <br />
<strong>M4SC</strong> Resource Training – Public/Volunteer – 2 Day Training <br />
28-‐Oct <br />
4-‐Nov <br />
11-‐Nov <br />
18-‐Nov <br />
Individual Team Research MeeEngs: Detail Review of ExisEng Materials, <br />
ClarificaEon of Processes, VerificaEon of Baseline Understanding, <br />
organized by each Strategy, <strong>Network</strong>, Process, Resource team structure <br />
ConEnued Review <br />
Individual Team Research: SWOT Analysis of <strong>M4SC</strong> in relaEon to Strategic <br />
Focus; focus on gaps/opportuniEes <br />
ConEnued Review <br />
Individual Team Research: PreparaEon for F2F Palm Springs, PrioriEzaEon <br />
of Issues, Low-‐Hanging Fruit, ConsolidaEon of Research Review <br />
5-‐Dec SCC Hosted Palm Springs F2F <strong>M4SC</strong> Global Research Team Integrated <br />
PresentaEon & Review <br />
9 –Dec Individual Team Research: Palm Springs Outcomes, and AcEon Plan 2014 <br />
25-‐Nov <br />
16-‐Dec <br />
Individual Team Research: Palm Springs Outcomes, and AcEon Plan 2014 <br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 17 | 23 July 2013
Your Call To Action<br />
• Complete Review of <strong>M4SC</strong> <strong>Layer</strong>s Through August –<br />
Webinar<br />
• Sign up as Research Volunteer<br />
› Choose an area that best matches your expertise<br />
› Assume Leadership position in Team, or in Process Component<br />
› Review/Feedback on <strong>M4SC</strong> System<br />
• Participate in SCC Hosted Palm Springs Event<br />
› Meet other Research Teams, Join Global Community<br />
• Drive Meaningful Change<br />
› Help Create a Useful Global Standard in SCM<br />
› Help Create a Well-Used Global Standard in SCM<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 18 | 23 July 2013
SCC Resources<br />
Research Director: chunche@supply-chain.org<br />
<strong>M4SC</strong> Volunteers: mspring@supply-chain.org<br />
Membership, Training, Certification, Benchmarking:<br />
Website: www.supply-chain.org<br />
Global: info@supply-chain.org<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 19 | 23 July 2013
MANY THANKS!<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 20 | 23 July 2013
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