SCOR PROJECT Session Objectives - Supply Chain Council

SCOR PROJECT 

A hands-on workshop introducing SCOR methods and tools: 

A walk-through of a comprehensive SCOR project 

This presentation is the exclusive property of the Supply Chain Council. Copyright © Supply Chain Council. 2006-2011. All rights reserved. 

The marks SCOR®, CCOR, DCOR, SCORmark and SCOR Roadmap are the exclusive property of Supply Chain Council, Inc. 

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 1 | February 13, 11 

Session Objectives 

•! 

•! 

•! 

Demonstrate how your company can use the SCOR 

Model to improve supply chain performance 

›! Build Organizational Support 

›! Define Supply Chains and Scope a Project 

›! Create a Scorecard with Benchmarks and Defect Analysis 

›! Perform Material Flow Analysis 

›! Perform Process Analysis 

›! Develop Implementation Plans 

To maximize benefit of this session, participants are 

expected to have attended a SCOR Framework or 

equivalent session 

Have a company supply chain in mind to use for the 

exercises 

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | Slide 2 | February 13, 11

SCOR Workshop Agenda 

Day 1: Project roadmap, Pre-Phase to Phase III 

›! SCOR Project Roadmap 

›! Pre-Phase: Organizational support 

›! Phase I: Discover the opportunity 

›! Phase II: Analyze basis of competition and direction 

›! Phase III: Capture, analyze and design material flow 

Day 2: Phases III continued to V, Project recap 

›! Phase III: Capture, analyze and design material flow - continued 

›! Phase IV: Capture, analyze and design work and information flows 

›! Phase V: Implementation planning 

›! Full project recap 


Exercises 

Day 1 

1.! Project Organization 

2.! Supply Chain Definition 

3.! Supply Chain Priority 

Matrix 

4.! Competitive Requirements 

5.! Data Collection 

6.! Defect Analysis 

7.! Geographic Map 

8.! Plan Process Matrix 

9.! Brainstorm 

Day 2 

10.! Affinity Diagram 

11.! Problems to Projects 

12.! Staple Yourself Analysis 

Worksheet 

13.! SCOR Level Three 

Process Flow 

14.! RACI Analysis 

15.! SCOR Best Practices 

16.! Process Performance 

17.! Determine Project Impact 

and Effort 


The SCOR Project Roadmap 

Phase FOCUS Major Deliverables Resolves 

ORGANIZE 

•! Organizational Support 

Structure 

Who is the project team? 

I 

DISCOVER 

•! Supply Chain Definition 

•! Supply Chain Priorities 

•! Project Charter 

What is the scope of the 

project? 

II 

ANALYZE 

•! Scorecard 

•! Benchmark 

•! Competitive Requirements 

How am I performing? 

What are my strategic 

requirements? 

III 

MATERIAL 

•! Geographic Map 

•! Thread Diagram 

•! Disconnect Analysis 

Am I moving material 

efficiently and effectively? 

IV 

WORK 

•! Transaction Analysis 

•! Level 3, Level 4 Processes 

•! Best Practices Analysis 

Are my processes efficient 

and effective? 

V 

IMPLEMENT 

•! Opportunity Analysis 

•! Project Definition 

•! Deployment Organization 

What is the financial 

opportunity? How should I 

deploy? 


SCOR Project Workshop Support 

•! 

Having a copy of SCOR does not 

improve performance 

•! 

SCOR used as part of an overall 

performance improvement process 

needs: 

›! Project Management 

›! Change Management 

›! Process Management 

›! Principles of Continuous 

Improvement 

•! 

Based on 65 projects, Supply Chain Excellence in it’s 2 nd edition 

(October 2007), illustrates a SCOR project in a company named 

Fowlers 


PRE-PHASE: ORGANIZE 


Pre-Phase: Organize 

Building Organizational Support for Supply Chain Improvement 

Objective: Build the necessary support for the SCOR program and 

identify the preliminary project team 

Key Tasks: 1.! Identify appropriate Sponsor, Stakeholders, Evangelists 

2.! Create Steering team, Design team, and Extended teams 

Approach: Workshops, one-on-one interviews 

•! Interview with Sponsor and Evangelist 

•! Executive Briefing with Sponsor and Evangelist 

•! Executive Briefing with Core Steering Team 

Deliverables: Sponsor Commitment; Organizational Approval to Proceed 

Stage gate: Go – No Go Decision 


Typical SCOR Project Organization 

The Evangelist’s Resume 

›! Experienced 

›! Multiple Work Roles 

›! Natural Talent 

The Active Executive Sponsor 

›! Process focused 

›! Genuinely involved in the 

learning process 

›! Sets the burning platform for 

the organization 

Establishing Core Steering Team 

Buy in is critical 

›! Right Level of Authority to 

champion implementation 

projects 

›! Effective Cross-Functional 

Relationships 

›! Knowledge Contributor 

Pages 14-27 


Exercise 1: Project Organization 

•! 

Who would play the following 

roles in your company’s SCOR 

Project? 

›! Active Executive Sponsor 

›! Core Steering Team 

›! Evangelist/Project Leader 

›! Design Team 

›! Extended Team members 

•! 

Optional. Using “YOUR 

COMPANY Workbook”, copy 

the project organization from 

the flip chart 


PHASE 1: DISCOVER THE OPPORTUNITY 


Phase I: Discover 

Discover the Opportunity 

Objective: Define project scope; approve and initiate project 

Key Tasks: 1.! Understand the business context for supply chain 

improvement 

2.! Identify, Define and Prioritize your supply chains 

3.! Assemble and Approve the project charter 

Approach: One-on-one interviews; data collection 

•! 

•! 

•! 

Business Plans 

Size and complexity of supply chains 

Resource commitment 

Deliverables: Business Context Summary; Project Charter 

Stage gate: Project Charter approval 


Business Context Summary 

•! 

•! 

•! 

The Business Context 

Summary assembles important 

factors of business background 

The information helps provide 

a strategic perspective to team 

members 

It forces the steering team to 

get involved early in the project 

Table of Contents 

•! Strategic Profile 

•! 

•! 

•! 

›! Business Description – Products and 

Services 

›! Strengths Weaknesses Opportunities 

Threats (SWOT) 

›! Value Proposition 

›! Critical Success Factors 

›! Critical Business Issues 

Financial Information 

›! Consolidated Income Statement 

›! Balance Sheet 

Internal Profile 

›! Organization 

›! Physical Locations 

›! Key Performance Indicators 

External Profile 

›! Market/Customers 

›! Supply Chain Definition Matrix 

›! Suppliers 

page 28 


Supply Chain Definition Matrix 

•! 

•! 

The Supply Chain Definition Matrix helps define 

the number supply chains in relation to its 

customers and products or services 

The columns in the matrix are focused on demand 

– markets, channels, customers 

›! The lowest level of detail in a column can be an 

“invoicable” customer ship to address 

›! The columns should total your revenue 

•! The rows in the matrix are focused on supply – 

business lines – products – locations – suppliers 

›! The lowest level of detail in a row is a SKU 

›! The rows should total your costs 

Page 39 


Exercise 2: Supply Chain Definition 

•! 

•! 

Using a flip chart, create a rough draft Supply 

Chain Definition Matrix for your company 

›! Label the columns with your customers, channels, 

markets, geographies – the “Demand view” 

›! Label the rows with your products, product families, 

fulfillment networks, geographies – the “Supply view” 

›! Where products are sold to customers, enter an “X” – 

candidate supply chains 

›! Group candidates (“X”s) that are the same supply chains 

Optional. Using “YOUR COMPANY Workbook”, 

document the Supply Chain Definition Matrix from 

the flip chart 


Supply Chain Definition Matrix 

Example: Fowlers Supply Chain Definition Matrix 

Supply Chain 

Definition 

Matrix 

Geography, Customer and/or Market Channel 

US 

Retail 

US 

Distr. 

US 

Direct 

US 

OEM 

US Gov. 

US 

Home 

Intl. 

Products (supply) 

Food 

Products 

Technology 

Products 

Durable 

Products 

X X X X X 

X X X 

X 

X 

US Distr. = US Distributors 

US Direct = US Direct-to-customer 

US OEM = US OEM – Key Accounts 

US Gov. = US Government 

US Home = US Home Delivery 

Intl. = International customers 


Determining Project Scope 

•! 

•! 

•! 

•! 

•! 

Collect data for each supply chain (you identified in 

the Definition Matrix) in an effort to help rank them. 

A decision priority matrix can help organize the 

ranking process 

The matrix is organized by prioritization criteria 

(columns) and supply chains (rows—combination of 

product to customer). 

Using data, the supply chains are then ranked high to 

low for each criterion 

The most frequent guideline in finalizing a project 

scope is to THINK BIG, START SMALL and SCALE 

FAST 

Page 41 


Exercise 3: SC Priority Matrix 

Using “YOUR COMPANY Workbook”, complete a 

Supply Chain Priority Matrix for your supply chains 

›! Define the supply chains (rows) using the supply 

chains as listed in your definition matrix 

›! Review and weight the criteria (columns) 

›! Rank your supply chains for each criteria, the highest 

ranking supply chain receives a high number and the 

lowest ranking supply chain receives a “1” 

›! Discuss your potential project scope 


Supply Chain Priority Matrix 

Example: Fowlers Supply Chain Priority Matrix 


Supply Chain Project Scope 

Example: Fowlers Supply Chain Project Scope 

Supply Chain 

Definition 

Matrix 

Geography, Customer and/or Market Channel 

US 

Retail 

US 

Distr. 

US 

Direct 

US 

OEM 

US Gov. 

US 

Home 

Intl. 

Products (supply) 

Food 

Products 

Technology 

Products 

Durable 

Products 

X X X X X 

X X X 

X 

X 

The scope of your project could focus on a channel or a product family; 

using the priority matrix and some sparring. 

Fowlers picked the circled supply chains to define their scope… 


The Project Charter 

•! 

•! 

•! 

The project charter is created during this phase to 

establish a complete understanding of the 

project's scope and objectives. 

The document helps to align assumptions and 

expectations among executive sponsors, 

stakeholders, and team members. 

Most importantly, it contains the project schedule; 

there are two common deployment formats based 

on how often the team can meet 

›! Deployment using weekly meetings 

›! Deployment using meetings by phase – the most 

common; the page reference is below… 

Page 44 


Project Charter Outline 

Section Subsection Content/Reason 

Introduction Context Understanding of Document 

Overview Scope Supply Chains Considered 

Project 

Approach 

Business Objectives 

Project Objectives 

Methodology 

Schedule 

Deliverables 

Risk 

Budget 

Organization 

Benefits 

Communication 

Metrics 

Five Phase Deliverables 

SCOR Project Roadmap 

Timeline, Meetings 

Detailed Deliverables 

Program Management Key Areas 

Cost 

Chart and Responsibilities 

Measures of Success, Analysis 

Who, How, Why, What, When 


PHASE 2: ANALYZE 


Phase II: Analyze 

Analyze Basis of Competition 

Objective: assemble a Scorecard including actual, benchmark, 

and competitive requirements data to determine the metric or 

metrics to improve and set realistic targets 

Key Tasks: 1.! Conduct a competitive requirements exercise 

2.! Collect data for each selected SCOR metric 

3.! Assemble appropriate benchmark sources and data 

4.! Perform defect analysis for each selected SCOR metric 

Approach: Data Collection; Benchmark Research 

Deliverables: Scorecard 

•! 

•! 

Leverage available benchmark subscriptions 

Pick data analysis tool of choice, i.e. pareto analysis, run 

charts, histogram, etc. 

Prioritized metric or metrics and improvement objectives 

Stage gate: Scorecard Baseline; Competitive Requirements 


Analyze Basis of Competition 

•! 

•! 

Purpose: Select the one metric or few metrics needing 

improvement to compete effectively in the market and 

determine how much performance improvement is 

needed: Benchmark 

Key steps in phase II, Analyze: 

1.! Determine competitive requirements 

(understanding your market) 

2.! Select SCOR metrics and collect data 

3.! Benchmark; submit and analyze results 

4.! Select one or few metrics and set improvement goals 

5.! For selected metrics perform first level defect analysis 


Competitive Requirements 

•! 

•! 

•! 

•! 

The objective is to prioritize supply chain performance 

attributes for each customer or market channel 

The team needs to determine whether the company needs 

to perform at a superior level (90th percentile), advantage 

(average S and P), or at parity (50th percentile) for each 

attribute for each channel 

For each customer or market channel, the team is only 

allowed to set one performance attribute at the superior 

level, two at the level of advantage, and the remaining two 

attributes set at parity 

Each unique combination of ratings defines Your Supply 

Chain Strategy for the channel 

Page 70 


Competitive Requirements 

Example: Fowlers’ Competitive Requirements * 

Competitive 

Requirements 

For each channel prioritize strategic performance using 

1x Superior, 2x Advantage and 2x Parity 

US 

Retail 

US 

Distr. 

US 

Direct 

US 

OEM 

US 

Gov. 

Reliability Superior Parity Parity Parity Parity 

Internal Customer 

Responsiveness Parity Parity Superior Superior Parity 

Agility Advantage Advantage Advantage Advantage Advantage 

Cost Advantage Superior Advantage Advantage Superior 

Asset 

Management 

Efficiency 

Parity Advantage Parity Parity Advantage 

*) Modified version to reflect split between Responsiveness and Agility 


Exercise 4: Competitive Requirements 

Using “YOUR COMPANY Workbook”, complete the 

Competitive Requirements worksheet using the channels in the 

supply chain definition matrix 

›! Transfer the customer – channels from the definition 

matrix to match the columns in the competitive 

requirements matrix 

›! For each customer – channel determine which 

performance attribute needs to perform at superior levels 

(S), advantage levels (A), with the remaining two 

attributes performing at parity (P) 

›! Sometimes it is easier to pick the parity attributes first 


Organizing a SCORmark Benchmark 

1.! Determine the strategic requirement 

by performance attribute 

(see previous slides) 

2.! Select SCOR level-1 metrics 

3.! Collect level-1 and level-2 metric data 

4.! Enter and submit data (secure, 

confidential online portal) 

5.! APQC validates the data and 

produces a report including: 

›! An executive scorecard 

›! A detailed analysis for each 

specific metric selected 


Alternative Benchmark Data Sources 

Source Benchmark Link Pricing Notes 

SCC SCORmark www.supply chain.org Free Member benefit 

APQC SCM Surveys www.apqc.org Free Must share data 

AMR SCM www.amrresearch.com Subscription SCC founder 

CAPS Procurement www.capsresearch.org Subscription 

Hoovers Financials www.hoovers.com Subscription Not by supply chain 

MPI 

Subset of SCM www.mpi-group.net 

PMG SCM-SCOR www.pmgbenchmarking.com SCC founder 

eSCM SCOR www.escm.org.sg Subscription Asia focus 

WERC SCM www.werc.org Subscription Emerging 

Not listed here: Industry organizations may offer benchmarking 

Don’t forget benchmarking within your company! 


Benchmark Metric Selection 

Customer 

Internal 

Attribute 

Reliability 

Responsiveness 

Agility 

Cost 

Assets 

Strategic metric 

RL.1.1 Perfect Order Fulfillment 

RS.1.1 Order Fulfillment Cycle Time 

AG.1.1 Upside Supply Chain Flexibility 

AG.1.2 Supply Chain Upside Adaptability 

AG.1.3 Supply Chain Downside Adaptability 

AG.1.4 Value At Risk (VAR) 

CO.1.1 Supply Chain Management Cost 

CO.1.2 Cost of Goods Sold 

AM.1.1 Cash-to-Cash Cycle Time 

AM.1.2 Return on Supply Chain Fixed Assets 

AM.1.3 Return on Working Capital 


SCOR Metric Data Collection 

Data collection for the SCOR metrics for a benchmark 

generally involves four steps: 

1.! Identify all potential segmentation requirements – 

the supply chain definition matrix is a good guide 

2.! Translate the theoretical SCOR definition into a 

query that your system can collect 

3.! Test your query with one or two data points 

4.! Develop a sampling plan that will define your 

scorecard baseline 


Exercise 5: Data Collection 

Guided Practice. Using the “YOUR COMPANY 

Workbook”, review the Data Collection worksheet for 

Perfect Order Fulfillment 

Pages 51-52, 55 


Understanding Benchmark Results 

Benchmarking Concepts: 

•! Superior or Best in Class 

performance is generally 80th 

to 90th percentile in a statistical 

comparison 

•! Advantage performance is 

generally 70th to 75th 

percentile in a statistical 

comparison 

•! Parity performance is generally 

50th percentile 

›! Most companies use median or 

middle to represent parity 

›! Mean includes performance 

outliers 

SCC Agreed definitions: 

•! Parity: Median 

(50 th percentile) 

•! Superior: 90th Percentile 

•! 

Advantage: Average of 

Parity and Superior 

Page 63 


Scorecard Sample 

Example: Fowlers’ Technology Products scorecard 

Strategic Metrics 

Actual 

Parity 

(50 th ) 

Advantage 

Superior 

(90 th ) 

Parity 

gap*) 

Perfect order fulfillment 1 % 74 % 81 % 88 % 73 % 

Order fulfillment cycle 

time 

9 days 10 days 6.5 days 3 days -- 

Upside SC flexibility 110 d 60 d 45 d 29 d 50 d 

Total supply chain 

management cost 

14.0 % 9.5 % 6.7 % 3.9 % 4.5% 

Cash-to-cash cycle time 197 d 98 d 64 d 30 d 99 d 

Requirement 

gap 

* parity gap is > 0 if there is a gap, ‘--’ indicates: no gap 

•! 

•! 

We’ve created a benchmark 

We’ve looked at “parity gaps” to understand where there may be 

problems 


The Complete Scorecard 

Example: Fowlers’ Technology Products scorecard 

•! 

•! 

Strategic Metrics 

Actual 

Parity 

(50 th ) 

Advantage 

Superior 

(90 th ) 

Parity 

gap*) 

We’ve applied competitive requirements using the U.S. 

Direct-to-Consumer Markets and U.S. OEM-Key Accounts 

channels driving Technology Products revenue 

In this exercise, we have a problem in responsiveness which 

results in a 6-day performance gap ( ) 

Requirement 

gap 

Perfect order fulfillment 1 % 74 % 81 % 88 % 73 % 73 % 

Order fulfillment cycle 

time 

9 days 10 days 6.5 days 3 days -- 6 d 

Upside SC flexibility 110 d 60 d 45 d 29 d 50 d 65 d 

Total supply chain 

management cost 

Cash-to-cash cycle 

time 

14.0 % 9.5 % 6.7 % 3.9 % 4.5% 7.3% 

197 d 98 d 64 d 30 d 99 d 99 d 


Metric Defect Analysis 

•! 

•! 

•! 

•! 

The basic idea is that for each metric identified in the 

scorecard during Phase Two, the team must analyze 

the failures or defects as they begin to answer the 

“why” question. 

›! For example, the food products group Line Order 

On-Time and In-Full performance is 68.4% -- 

meaning 31.6% of the lines weren’t delivered On- 

Time and In-Full. 

The objective of defect analysis is to use simple 

analytical tools 

This is the first step in root-cause analysis. 

Use the system (where possible) to generate the 

defect categories. 

Pages 104-110 


Exercise 6: Defect Analysis 

•! 

•! 

Guided Practice – Using “YOUR COMPANY Workbook”, 

complete a Perfect Order Fulfillment Defect Analysis 

›! Brainstorm and enter 5 categories of why your order 

was not delivered on time and complete 

›! Enter estimated impacts in the Defect Rate column 

-! Does the sum of the defect rates equal the 

difference between actual performance and 

100%? 

-! Discuss how you might identify any remaining 

unknown categories 

Review the Fowlers examples of these two metrics 



Example: Fowlers’ Perfect Order Fulfillment 



Example 2: Fowlers’ Supply Chain Flexibility 


PHASE 3: MATERIAL FLOWS 


Phase III: MATERIAL 

Design Material Flow 

Objective: Identify changes to improve physical material 

movement and strategy 

Key Tasks: 1.! Document the AS IS material flow model 

2.! Perform a Disconnect Analysis to capture and prioritize 

issues 

3.! Define TO BE material flow model if required 

Approach: Facilitated workshops 

•! 

•! 

•! 

•! 

Geographic Map 

Planning Matrix 

Thread Diagram 

Brainstorm Event 

Deliverables: Geographic Maps, Process Thread Diagrams, Prioritized Issues 

List 

Stage gate: Preliminary Project Portfolio 


Creating a Geographic Map 

•! 

•! 

•! 

•! 

•! 

Choose your geographic mapping method – actual 

and/or logical 

Identify current physical locations in your supply 

chain scope based on project scope 

Define SCOR Level Two process types for each 

location using the material flow strategy identified in 

master data 

Map the product flow between physical locations 

using the routing (recipe) 

Make sure that all stocking locations are recorded 

somewhere on the map 

Page 89 


Fowlers Actual Geographic Map 

A pure actual view where, for each 

supply chain on the matrix every 

supplier, manufacturer, 

warehouse, and customer 

shipping and receiving locations 

illustrate how each SKU is moved 

(much like a network study). 


Fowlers Logical Geographic Map 

A pure logical view where one map 

can represent from a macro level how 

products moves using one supplier, 

one manufacturer, one warehouse, 

and one customer illustrate material 

flow. 

HQ 

(sP1, sP4, sS1, 

sS2, sD1, sD2, 

sEP) 

Supplier 

(sP4, sD1, sD2) 

Intermediate 

Manufacturing 

(sP2, sP3, sS1, 

sS2, sM1, sM2) 

Primary 

Manufacturing 

(sP2, sP3, sS1, 

sS2, sM1, sM2, 

sDR1) 

DC 

(sS1, sS2, sD1, 

sD2, sSR1, 

sDR1) 

Customer 

(sP2, sP4, sS1, 

sS2, sD1, sSR1) 


Discussion Topic 

Actual versus logical geographic maps - which 

provides the right level of detail? 

›! The highest level that can point to both tactical 

and strategic inefficiencies in service levels, 

transportation cost, lead-time (cycle time), and 

days of inventory. 

›! Create an actual geographic map for some of 

their more complicated supply chains for visual 

impact 

›! Create one logical geographic map representing 

all supply chains to make documentation a less 

complex task. 

Page 94 


Exercise 7: Geographic Map 

Using a flip-chart, create a logical or actual 

Geographic Map for one of YOUR COMPANY supply 

chains created in the definition matrix 


Plan Process Matrix Concepts 

•! 

•! 

The planning process matrix is an analytical tool 

that helps to characterize a company’s planning 

processes 

›! Horizon is the planning time period 

(i.e. eighteen months, one year, one quarter, etc.). 

›! Interval is the time between updates 

(i.e. a quarter, month, week, daily, real-time, etc.). 

›! Planning level refers to where the planning data is 

stored, aggregated, and analyzed 

(i.e. Profit and Loss business entity, Planning Family, 

Stock Keeping Unit (SKU), Stock Keeping Unit by 

Location (SKUL), item, etc.) 

The planning process matrix focuses the team on 

the level-2 Plan processes – as geo maps primarily 

focus on material flows 

Page 99 


Exercise 8: Planning Matrix 

•! 

•! 

Review the Fowlers Planning Process Matrix. 

Using a flip chart, create a Planning Process Matrix 

›! Describe the horizon, update interval, and level for 

your budget (business planning), S&OP, Tactical 

Planning, and Scheduling processes 

•! 

Optional: Document your flip chart details using the 

Plan Process Matrix in “YOUR COMPANY Workbook” 


Recap: Pre-Phase 

•! 

•! 

Key concepts: 

›! Executive Sponsor 

›! Evangelist 

›! Project Leaders 

›! Core Steering Team 

›! Project Design Team 

›! Extended Team 

Hazards: 

›! Too-Big Reach 

›! Communication 

›! Sponsorship Scope 


Recap: Phase I 

•! 

Key concepts 

›! Supply chain definition 

›! Supply chain priority 

›! Project Charter 

•! 

Hazards: 

›! Supply chain identification: 

over/under-consolidation 

›! Definition matrix columns should cover 100% of revenue 

›! Definition matrix rows should cover 100% of products 

›! Change prioritization criteria to ensure you reflect market strategy 

›! Criticality of project charter 


Recap: Phase II 

•! 

Key concepts 

›! Competitive Requirements 

›! Scorecard 

›! Benchmark 

•! 

Hazards: 

›! Working with Sponsors and 

Stakeholder for competitive 

requirements 

›! Source of Benchmark Data 

›! Understanding “disconnects” 

›! Final priority metric/gaps 


Recap: Phase III 

•! 

Key concepts 

›! Geo Map 

›! Planning Matrix 

›! Thread Diagram 

•! 

Hazards: 

›! Logical maps easier than 

100 complete physical maps 

›! Look for dangling processes 

›! Understanding Materials and Level-2 Processes 

›! Start with paper before using a tool 


A hands-on workshop introducing SCOR methods and tools: 

A walk-through of a comprehensive SCOR project 

SCOR PROJECT 

DAY 2 


SCOR Workshop Agenda: Day 2 

•! 

•! 

Day 1: Project roadmap, Pre-Phase 0 to Phase III 

›! SCOR Project Roadmap 

›! Pre-Phase: Organizational Support 

›! Phase I: Discover the Opportunity 

›! Phase II: Analyze Basis of Competition 

›! Phase III: Design Material Flow 

Day 2: Phases III continued to V, Project recap 

›! Phase III: Design Material Flow Continued 

›! Phase IV: Design Work and Information Flow 

›! Phase V: Implementation Planning 

›! Full Project recap 


Introducing: Disconnect Analysis 

•! 

•! 

What do the numbers 50, 20, 1,000, 15, and 3 have in 

common? 

›! 50 is the typical number of people who participate in a daylong 

brainstorm event. 

›! 20 is how many disconnects or issues a typical person can 

come up with in an hour. 

›! 1000 is the number of disconnects or issues the whole team can 

generate in the same amount of time. 

›! 15 is approximately the number of projects that will be identified 

to eliminate the issues. 

›! And 3 is the percent of savings – relative to sales – that an 

average performing company will achieve by implementing 

these projects. 

We will combine Brainstorming and Affinity Diagramming 

techniques to organize the disconnect analysis 


Getting Ready for the Brainstorm 

•! 

•! 

•! 

•! 

The purpose of disconnect analysis is to marry the data 

collected in defect analysis (phase 2) with people’s 

experience of issues (disconnects) 

Brainstorming is used to collect the issues (disconnects) 

Affinity Diagramming is used to link issues to metrics 

Ultimately this exercise will lead to our preliminary project list 

– aggregating issues to problems and then problems to 

projects 

Page 111 

•! 

In this workshop we will be conducting a “mini-storm” 


Brainstorming: Disconnects 

•! 

•! 

•! 

A “disconnect” is any issue or barrier to achieving a desired 

level of performance 

A good disconnect is a sentence that describes a very 

specific issue, includes an example, and is notated with the 

submitter’s initials 

Each disconnect is assigned a unique serial number for 

tracking purposes later on… 

Disconnect or Issue Description (examples) Submitted by: Serial number 

Item master data setup errors cause poor planning data 

to pass to plants and suppliers, resulting in poor forecasts 

– example: SKU 093232 

No visibility to customer demand – consumption rate 

leads to unpredicted spiked demand resulting in customer 

shortages – example: Order 0930211 

PB 1 

PB 2 

•! 

On projects, challenge each SME to bring 20 disconnects 


Exercise 9: Brainstorming 

•! 

•! 

•! 

Using your defect analysis for Perfect Order 

Fulfillment*, brainstorm and document issues/ 

disconnects that affects your performance. Document 

them on the post-it notes provided. 

Create your own list. Put yourself in the role of 

employee working in the supply chain. What are the 

issues they observe or experience in their daily jobs. 

Write each issue on a separate post-it note. 

These post-it notes will be used for the affinity 

diagramming exercise. 

*) Or the must-be-Superior metric for the supply chain of your group in this workshop 


Preparing for Affinity Diagram Event 

•! 

•! 

•! 

•! 

•! 

•! 

Develop an appropriate invitee list 

Find an appropriate venue – wall space! 

Effectively communicate to invitees, including advance 

invitation, project overview, and instructions for event 

preparation; bring 20 disconnects or issues 

This is the brainstorming activity 

Assign facilitator roles by brainstorm category to design 

team members; they will facilitate break out sessions 

Instruct facilitators 

Pre-populate the templates where possible 

Page 112 


The Affinity Diagramming Event 

Explain steps and expected outcome to all participants 

Pages 115 - 122 

1.! Record & review disconnect categories (column headers) 

2.! Assign issues (disconnects) to the appropriate defect 

category (Discuss the meaning of each submitted issue) 

3.! Group like issues within each metric defect category 

4.! Weigh the groups within each defect category 

5.! Identify the SCOR level-2 process element where the 

issue occurs or is observed 

6.! Calculate metric impact for each issue group 

7.! Document the issue groups 


Step 1, Setup Template 

•! 

•! 

For each metric used in the 

brainstorm event, record your 

metric defect categories and 

associated rates on flip chart 

paper (or other appropriate 

paper) 

In this example, the actual 


performance is 75% 

•! Defect analysis identified 

three main categories *) 

•! The defect rates are 16%, 

6%, and 3% representing all 

the failures (100% - 75%) 

*) See phase 2 defect analysis 


Step 2, Post Issues 

•! 

•! 

The team assigns their 

issues (disconnects) to an 

appropriate defect category 

Even though some issues 

may fit under multiple defect 

categories, choose the 

primary one or repeat the 

sticky in multiple columns 


Step 3, Group Similars/Duplicates 

•! 

•! 

Within each category the 

team uses an affinity 

grouping technique to 

combine similar issues into 

common problems 

In this example, the affinity 

process grouped original 9 

disconnects into 5 problems: 

A.! Manufacturing Schedule not 

achieved 

B.! Safety stocks not aligned 

with forecast error 

C.! Order did not allocate 

D.! Nightly batch processing 

errors 

E.! Customer’s 3PL picked up 

late 


Step 4, Rank and Weigh Issues 

•! 

•! 

The team weights the issue 

groups (problems) within 

each Defect Category: 


achieved: 75% 


with forecast error: 25% 

C.! Order did not allocate: 67% 


errors: 33% 

E.! 

Customer’s 3PL picked up 

late: 100% 

The sum of the percentages 

in each Defect Category 

(column) should equal 100% 


Step 5, Normalize to SCOR Processes 

•! 

The team identifies SCOR 

Level 2 element(s) where 

problem occurs most 

frequently: 


achieved: sM1 


with forecast error: sP4 

C.! Order did not allocate: sD1 


errors: sED 

E.! Customer’s 3PL picked up 

late: sD1 


Step 6, Calculate Overall Impact 

•! 

Calculate metric impact for 

each issue statement by 

multiplying the problem 

statement weight by defect 

category rate: 

A.! 75% x 16% = 12% 

B.! 25% x 16% = 4% 

C.! 67% x 6% = 4% 

D.! 33% x 6% = 2% 

E.! 100% x 3% = 3% 


Step 7, Document Issue Groups 

•! 

•! 

Capture all information and data from the flipcharts 

Using the Example Problem Definition Worksheet, 

complete the documentation for each metric 


Exercise 10: Affinity Diagram 

•! 

•! 

Using a flip chart, conduct an affinity diagramming event 

(using your Perfect Order Fulfillment defect analysis and 

disconnects 

Document the results using the YOUR COMPANY 

Problem Definition Worksheet 

1.! Record & review disconnect categories (column headers) 

2.! Assign issues (disconnects) to the appropriate defect 

category (Discuss the meaning of each submitted issue) 

3.! Group like issues within each defect category 

4.! Weigh the groups within each defect category 

5.! Identify the SCOR level-2 process element where the 

issue occurs or is observed 

6.! Calculate metric impact for each issue group 

7.! Document the issue groups 


Outcome: Problem Definitions 

Example: Fowlers’ Problem Definition 

Pages 123 

See Fowlers Problem 

Definition Worksheet in 

the Fowlers Workbook 


Outcome: Organized Information 

Cause & Effect Diagram 

Diagram created using XMIND software 

Pareto Analysis 

3.2 Date calculation error 

2.2 Item damaged in undamaged packaging 

3.1 In-transit delay 

2.1 Packaging damaged 

4.1 Production batch quantity 

4.2 Shipment over multiple trucks 

4.3 Merge in-transit failed 

1.1 Order entry error 

1.4 Shipping condition setup error 

3.3 Order credit holds 

2.3 Dead on Arrival 


Consolidating problems to projects 

•! 

•! 

•! 

•! 

•! 

The project manager assembles all the problems from each of 

the metric worksheets onto a single worksheet called 

something like “All Metrics.” 

With the “AutoFilter” on, the project manager goes through a 

process of filtering the heading “SCOR Process” by each of 

the SCOR Level Two process 

All of the problems in each SCOR Level Two filter get the 

same project number 

The team then reviews each of the SCOR Level Two “project 

groupings” to affirm effectiveness of the filter 

Problems that don’t seem to fit, get assigned a new project 

number or can be consolidated into other projects 


Projects: Consolidating Problems 

Example: Selecting all problems by process 

›! Filter the data field “SCOR Process” by level two 

elements – in this case sD1 


Projects: Consolidating Problems 

Example: Selecting all problems by process 

›! Step 2, For each sort, assign a project number to all the 

problems – all sD1 problems equal project 1 


Exercise 11: Problems to Projects 

Filter the Fowlers Problem Definition Worksheet for 

their Line On Time and In Full (LOTIF) metric 

›! Filter the heading “SCOR Process” by the SCOR 

level two process elements sD1. 

›! Enter a “1” in the “Project Number” column for all 

the sD1 filtered problems. 

›! Repeat for the rest of the level two IDs; with each 

filter look for unlabeled problem statements then 

enter the next sequential number 

-! sD2, sD3, sS1, sS2, sS3, sM1, sM2, sM3, sDR1, sDR2, 

sDR3, sSR1, sSR2, sSR3, sP1, sP2, sP3, sP4, sED, sES, 

sEM, sER, sEP. 

Pages 130 


PHASE 4: WORK & INFORMATION FLOWS 


Phase IV: Work 

Work and Information Flow Design 

Objective: Identify changes to improve transaction and 

process flow 

Key Tasks: 1.! Complete data collection analyzing transactional 

productivity 

2.! Construct As-Is and To-Be process flows 

3.! Conduct Stapler Yourself to an Order Analysis 

Approach: Facilitated workshops, interviews and process mapping 

•! “Staple-Yourself-To" approach 

•! SCOR process flow maps 

•! Leading practice consensus building 

Deliverables: To-Be Process Blue Prints with practices and RACI 

Stage gate: Review captured information with key stakeholders 


Staple Yourself Interviews 

Reorganize your design 

and extended teams 

around 

›! Purchase Order 

›! Work Order 

›! Sales Order 

›! Return Authorization 

›! Planning Event 

-! Forecast 

-! Replenishment Order 

Conduct Staple Yourself to 

an Order Interviews for 

each SCOR Level 3 

element documenting… 

›! Process Steps (Level 4) 

›! Inputs and Outputs 

›! Enabling Technology 

›! Business Rules 

›! Transactional 

Productivity 

-! Event Time 

-! Elapsed time 

-! Yield 

Pages 174 


Staple Yourself Interviews 

•! 

•! 

Use the Staple Yourself Analysis Worksheet 

The Transaction Analysis Worksheet summarizes 

information regarding 

›! SCOR Level Three Process Description 

›! Primary Inputs and Outputs to process – Information 

›! Level Four Process Steps – no more than ten with 

department of person performing the step – Work 

›! Technology Used to perform Process Steps 

›! Transaction (output) Event, Elapsed Time, and Yield 

›! Business Rules (Policy and Informal) 

›! Disconnects Causing Event and Elapsed Time Gaps and 

Yield less than 100% 


Exercise: Staple Yourself Analysis 

Using “YOUR COMPANY Workbook”, document a 

SCOR level three process of your choice using the 

YOUR COMPANY Staple Yourself Worksheet. 


The AS IS Process Diagram 

To create the first draft Process diagram, start with 

the customer 

›! Within a Process Category (i.e. sD1), place all the SCOR 

level three elements in or across the appropriate lanes 

based on which functions participate in the process 

›! Connect the primary input and output to other appropriate 

SCOR Level Three elements. 

›! Continue the process with Make, Source, and Plan 


Exercise 13: SHOULD-BE Diagram 

Guided Practice – Complete the Process Diagram by 

labeling the primary inputs and outputs 

›! Sales Order – sD1 

›! Work Order – sM1 

›! Purchase Order – sS1 

›! Forecast – sP1 

›! Replenishment Order – sP4 


Guided tour of a SCOR level 3 map 

Pages 187, 204 

Please follow along on 

the print out in your 

work book. 


RACI Analysis 

•! 

•! 

•! 

A responsibilities diagram (RACI) attempts to put 

some structure around “who does what” 

›! Definitions on next slide 

Using a diagram helps illustrates the role each 

function plays in each SCOR process. 

The responsibilities diagram is an example of how 

to integrate the RACI role, the SCOR Process, and 

the functional organization of a company 

›! Example in two slides 


RACI Analysis – Responsibilities 

•! 

•! 

•! 

•! 

Responsibility – People who are expected to actively 

participate in the activity and contribute to the best of their 

abilities 

Accountability – The person who is ultimately responsible 

for the results 

Consulted – People who either have a particular expertise 

they can contribute to specific decisions (i.e., their advice will 

be sought) or who must be consulted for some other reason 

before a final decision is made (e.g., finance is often in a 

consulting role for projects) 

Informed – People who are affected by the activity/decision 

and therefore need to be kept informed, but do not 

participate in the effort. (They are notified after the final 

decisions are made.) 


Responsibilities (RACI) Diagram 

Example: Responsibilities diagram 

M (Make) M1 M1.1 M1.3 

Supply Chain Manager 

A 

Production Manager R A/R A A 

Planning Manager R C 

Warehouse Manager I I I 

Production Scheduler R I 

Production Operator 

R 

Procurement Manager C C I 

A = Accountable, R= Responsible, I = Informed, C = Consulted 


Exercise 14: RACI Analysis 

Flip Chart Exercise. Using the responsibilities diagram 

format, complete a RACI analysis for one or two of 

your SCOR Level Three processes 

›! Generate a list of business functions involved in supply 

chain making them the columns 

›! List the SCOR Process under evaluation making them 

the rows 

›! Assign RACI roles to the process using R, A, C, and I 


SCOR Best Practice Assessment 

•! 

•! 

The SCOR Model contains lists of best practices for each 

process element 

To utilize these practices, the design team must assess 

process maturity; for this exercise, we will use the following 

scale 

›! NA – Practice is Not Applicable 

›! Maturity 1 – Practice is absent 

›! Maturity 2 – Practice is present but performing poorly 

›! Maturity 3 – Practices is present and adequate 

›! Maturity 4 – Practice is present and is a competitive 

differentiator 

(This is an example for classification of practices, use the 

classification that is common in your industry or company) 


Exercise 15: SCOR Best Practices 

Choose a SCOR element, and use the SCOR 

Manual to calculate a leading practice score 

›! For SCOR elements with more than 1 practice, use 

the scale on the previous slide to assess each one 

›! Add up rated points then divide by the total possible 

›! Record your results below 

›! __ of __ = __% 


Process Performance Summary 

•! 

•! 

The Process Performance Summary attempts to 

summarize key performance indicators from 

previous analyses 

›! Staple Yourself Interview 

-! Event Time 

›! Leading Practice Assessment 

›! AS IS Process Flow relating your system to SCOR 

-! Elapsed Time 

-! Rework called Yield 

Using a simple scale, each process is graded 

›! Red – broken or missing 

›! Yellow – needs improvement 

›! Green - acceptable 

Pages 198 - 200 


Process Performance Summary 

Source of information varies by column 

Header (in Workbook) Line-item Source 

System Status Event Order Entry Date System 

SCOR Element sD1.2 to sD1.3 Coach 

Time Stamps 

Order Create Date (Time) to 

Order Release Date (Time) 

System 

Process Efficiency 4.17% Calculation (A/B x 100%) 

Yield 60% System 

Leading Practice 66% 

SCOR best practice 

assessment 

Volume 100,000 System 

Event Time (minutes) 15 

Average Elapsed 

Time (minutes) 

‘Staple Yourself’ interviews 

(A) 

360 System (B) 


Exercise 16: Process Performance 

Guided Practice – using the YOUR COMPANY 

Process Performance Summary, record appropriate data from 

your staple yourself interview worksheet and then complete the 

rest of the summary. 

›! System Status Event 

›! SCOR Element 

›! Time Stamps 

›! Process Efficiency 

›! Yield 

›! Leading Practice 

›! Event Time Minutes per Transaction 

›! Average Elapsed Time Minutes Transaction 


Developing TO-BE SCOR Level 4 

•! 

•! 

•! 

•! 

•! 

Find an appropriate leading practice book that can 

guide you through best in class characteristics for the 

process targeted for redesign 

Map Your Company’s “best practice” processes to 

SCOR Level 3 processes 

Map the processes detailed in the book to appropriate 

SCOR Level 3 processes 

Identify the main system modules to be utilized and 

map the transactions to the appropriate SCOR Level 3 

process 

Leverage the experience of users in creating and 

refining your Level 4 process 

Chapter 18 


Demand Planning (P1.1) SCOR Level 4 Example 


PHASE 5: IMPLEMENT 


Phase V: Implement 

Implementation Planning 

Objective: Develop implementation plans for the final project 

portfolio including scope, sequence, and benefits 

Key Tasks: 1.! Opportunity Analysis 

2.! Determine impact and effort 

3.! Define implementation approach, develop preliminary charters, 

and determine wave sequence 

Approach: Workshop, One on One Interviews, and Data Collection 

•! Finance must validate and sign off on benefit summaries 

•! Steering team members must champion implementation 

•! Transition design team to implementation roles 

Deliverables: High level deployment plans, to-be process documentation, and 

financial analysis by project 

Stage gate: Release documentation to and education to (staffed, funded and 

named) process deployment teams 


Principles of Opportunity Analysis 

•! 

•! 

•! 

•! 

•! 

The defect analysis needs to be consistent with the 

size of the benefit. 

Factor out the effect of forecasted growth by assuming 

constant revenue for the financial period 

Be realistic in the savings estimates; conservative 

realism is normal; gross sandbagging is not helpful 

Document all assumptions behind the savings 

estimates 

Identify validation resources (finance!) that can 

objectively test or spar with the numbers and 

assumptions 

Chapter 11 


Project Portfolio 

Use the Fowlers Final Project Portfolio 


Financial Analysis by Project 

Example: Fowlers’ Financial Analysis 

Fowlers Project 8 Opportunity 

Analysis is found in FOWLERS 

Workbook 

2006 

baseline 

2007 

change 

2008 

change 

Assumption 

Revenue $250,000 $4,500 1 

Materials cost $118,250 -$1,182 2 

Finished goods 

warehousing cost 

Inbound transportation 

cost 

$9,450 -$584 3 

$5,826 -$2,039 4 

Obsolescence cost $7,256 - $3,628 5 

Total Operating income – EVA impact $11,303 

Only line-items with opportunities shown, refer to workbook for all line-items/totals 


Opportunity Analysis 

Example: Fowlers’ S&OP implementation financial impact calculations 

1.! Reduce lost opportunity orders calculated as 1% of total orders or 

26,532 orders missed on account of no immediate material 

availability. At 339.20 average value per order, there is $4,500,000 

2.! Achieve a one percent decrease in price per part for the ability to 

provide accurate forecast data to all suppliers. At $ 118,250,000 

material cost that equates to a $1,182,500 annualized cost 

decrease 

3.! Having inventory immediately available will reduce 10% of the 

amount of time spent per order picking multiple times, expediting 

inventory transfer orders, and providing phone status to customer 

service representatives. At $4.40 warehouse cost per order with 

1326632 orders per year, this equates to $583,718. 


Opportunity Analysis 

Continued: Fowlers’ S&OP implementation financial impact 

calculations 

4.! Reduce unplanned changes to purchase orders, decreasing the 

number of instances of expedited transportation within lead time. 

Sixty-five percent of purchase orders are currently expedited, 

incurring 35 percent higher inbound transportation costs than 

necessary. Inbound transportation totals $5.8 million; improvement 

would reduce cost by $2.0 million. 

5.! Reduce nonworking inventory by 50 percent—from 18 percent of 

overall inventory value to 12.5 percent of overall inventory value, 

equivalent to $3,628,000. Accrual is already in place for the 25 

percent level. 


Determining Impact and Effort 

Impact attempts calculate 

project value on four 

dimensions 

›! % Improvement and/or $ 

Savings 

›! Time for Benefit to Book 

(Months) 

›! Customer Satisfaction 

Impact 

›! Leveragability to Other 

Products 

Effort attempts to calculate 

project ease using four 

dimensions 

›! Time to Implement 

›! Resources Required 

›! Complexity (Technically/ 

Organizationally) 

›! Capital Requirements 

The impact – effort worksheet 

helps calculate the total score 

for each project – 

Fowlers Impact Effort 

Worksheet illustrates how the 

score is calculated 

Pages 138 - 148 


Exercise 17: Impact Effort Worksheet 

Using the Impact vs. Effort Worksheet, select one of 

your current supply chain project either under way or 

about to start and fill out a row on the worksheet. 


Different Perspective 

Low Risk 

High Risk 

High Return 

Low Return 

•! Change in few processes 

•! 80/20: high impact 

•! Inexpensive Change 

•! Easy to back out 

•! High ROI 

•! Quick Deployment 

•! Change in few processes 

•! 80/20: low impact area 

•! Inexpensive Change 

•! Easy to back out 

•! Low ROI 

•! Quick Deployment 

quick 

wins 

nice to 

have 

•! Change in many processes 

•! 80/20: high impact 

•! Expensive Change 

•! Difficult to back out 

•! High ROI 

•! Long Deployment 

•! Change in many processes 

•! 80/20: low impact 

•! Expensive Change 

•! Difficult to back out 

•! Low ROI 

•! Long Deployment 

sponsor 

issue 

consider 

carefully 


Implementation Strategy Selection 

Software Implementation 

›! Detailed Design 

›! Configuration 

›! Test 

›! Go-Live 

Six Sigma 

›! Define 

›! Measure 

›! Analyze 

›! Improve 

›! Control 

Lean Manufacturing 

›! Workplace Organization – 

5S 

›! Flow Production – Value 

Stream Map 

›! Company Culture 

›! Continuous Improvement 

›! Visual Controls 

›! Empowered Teams 

Class A Leading Practices 

›! Strategic Planning 

›! People Team 

›! Total Quality and Continuous 

Improvement 

›! New Product Development 

›! Planning and Control 


Fowlers Return on Investment 

Page 232 


Deploy: Change Management 

Key Change Management Attributes 

Result 

Vision Skills Incentives Resources Action Plan Change 

X 

vision 

+ 

+ 

+ 

Skills 

X 

Incentives Resources Action Plan Confusion 

Vision Skills Incentives Resources Action Plan Anxiety 

+ 

X 

Vision Skills Incentives Resources Action Plan Delays 

+ 

Vision Skills Incentives Resources Action Plan Frustration 

+ 

X 

Vision Skills Incentives Resources 

© 2005, Process Core Group 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

X 

Action Plan 

=> 

= 

= 

= 

= 

= 

False Starts 


Recap: Phase III (continued) 

Key concepts: 

›! Disconnect Analysis 

›! Brainstorming 

›! Supply Chain Reconfiguration 

Hazards: 

›! Substantial Preparation 

›! Focus on tool not issues 

›! Translation of disconnects into opportunities 

›! Data for Transaction Analysis 

›! Group Participation 


Recap: Phase IV 

Key concepts 

›! Detailed process design 

›! Level 3 Models 

›! Level 4 Models 

›! RACI 

›! Best Practices Analysis 

Hazards: 

›! Identifying Final Opportunities 

›! Risk/Reward, Cost/Benefit 

›! Lost in Modeling 

›! Team Effort 


Recap: Phase IV 

Key concepts 

›! Opportunity Aggregation 

›! Project Portfolio 

›! Deployment Planning 

Hazards: 

›! Access to Project information 

(other projects) 

›! Budget Impact 

›! Ensuring Tracking of Progress 

›! Overall Company Change 

Management Competency 


SCOR-P Certification 

Requirements: 

•! SCOR Framework workshop 

•! SCOR Project workshop 

•! Self study 

Beneficial: 

•! Experience in supply chain 

•! Project experience 

Resources: 

•! 

•! 

•! 

•! 

•! 

Study guide 

Your notes from the workshops 

SCOR reference book 

Supply Chain Excellence book 

Online case studies, webinars, 

discussion forums 

(www.supply-chain.org) 

Full certification process explained, with links to additional resources: 

www.supply-chain.org/career/certification/steps 


For examples, case studies and templates register as a 

user on our website: 

WWW.SUPPLY-CHAIN.ORG 

EMAIL: INFO@SUPPLY-CHAIN.ORG 

Users with member status have full access to SCOR online: 

supply-chain.org/online-access 

This presentation is the exclusive property of the Supply Chain Council. Copyright © Supply Chain Council. 2006-2011. All rights reserved. The 

marks SCOR®, CCOR, DCOR, SCORmark and SCOR Roadmap are the exclusive property of Supply Chain Council, Inc. 


Fowlers Workbook.xlsx 

Process 

Horizon Update Interval Level 

EP.9 - Align Supply Chain Unit 

Plan with Financial Plan 

Annual budgeting process that 

begins in July and August. 

Fowlers formally updates the 

budget each quarter as part of its 

SEC and shareholder reporting 

requirements. 

Budgets are created using the 

chart of accounts profit and loss 

(P&L) business groups. 

S&OP 

Budget 

(Business) 

Planning 

P1 - Plan Supply Chain Fowlers does not have a 

consolidated S&OP process; the 

business groups each have their 

own "forecasting" process and 

associated horizon. In general, 

the businesses spend most of their 

planning time on the current month 

plus the next two. 

P2 - Plan Source 

P3 - Plan Make 

P4 - Plan Deliver 

S1.1 - Schedule Product 

Deliveries 

M1.1 - Schedule Production 

Activities 

D1.3 - Reserve Inventory & 

Determine Delivery Date 

D1.5 - Plan & Build Loads 

Because the S&OP process 

focuses so heavily on the near 

term and the scheduling processes 

dominate daily and weekly activity, 

tactical planning processes seem 

to be absent in all Fowlers 

business groups. 

The scheduling process horizon 

ranges from two weeks to four 

weeks depending on the business 

group. 

All business groups update their 

"forecasts" once a month; each 

business is on a different cycle that 

is dependent on the Presidents 

management meetings. 

Not applicable Not applicable 

Material Requirements Planning 

(MRP) is run daily and is displayed 

by day for 7 days, by week for the 

next 3 weeks, and by month for 

twelve months. Available-to- 

Promise (ATP) occurs real time 

with re-scheduling running each 

day. 

All business groups utilize a 

combination of product family 

forecast groups and business unit 

cost centers driven largely by 

plants and warehouses. 

All scheduling is at the SKUL 

(stock keeping unit at location) 

Scheduling 

Tactical Planning 

Copyright 2004 SCE Limited

Data Collection Worksheet 

Delivery Reliability 


Measurement 

Component 

Order On Time 

and In Full to 

Customer 

Request 

Order On Time 

and In Full to 

Customer Commit 

Score Data Calculation Component Query Assumptions 

38.0% 

40.0% 

Perfect Order Fulfillment measures the percentage of orders delivered "on time and in full" to customer 

commit date AND flawless match of purchase order, invoice, and receipt in your customer's system. 

SCOR Manual, page 2.1.1. 

100 

47 

50 

38 

47 

50 

Total Number of Customer 

Orders 

Total Number of Orders 

Delivered On Time to 

Customer Request Date 


Delivered In Full 


Delivered On Time and In 

Full to Customer Request 

Date 


Delivered On Time to 

Customer Commit Date 


Delivered In Full 

Self explanatory. This is the base for Request, Commit, and 

Perfect Order. 

Request date is the first request date from the customer. This 

includes agreed to lead times by SKU that may ultimately be 

part of the customer's master data settings. 

Request quantity is the first request quanitity prior to application 

of Available To Promise (ATP) checks. 

Many applications have a difficult time with both on time and in 

full by order. Each line needs to be evaluated; if all of the lines 

are on time and in full to original request then the order is 

considered good. Many companies do not store original request 

data and, hence, do not calculate this component. 

Commit date is the original confirmation date first given the 

customer after the first ATP check. Ideally this is a committed 

delivery date to the customer. Many companies are not getting 

receipt data from their carriers and measure to the committed 

ship date. 

Commit quantity is the first confirmation quanitity after the 

application of ATP checks. 

40 


Delivered On Time and In 

Full to Customer Commit 

Date 

Many applications have a difficult time with both on time and in 

full by order. Each line needs to be evaluated; if all of the lines 

are on time and in full to original commit then the order is 

considered good. Many companies do not store original commit 

data and, hence, always measure against the latest commit 

making the metric look like 100%. 

Perfect Order 

Fulfillment 

24.0% 24 

Total Number of Orders On 

Time and Complete 

Meeting 3 Way Match 

Criteria 

This is the most difficult measure to get. The best method is to 

evaluate your three way match percentage at the order level via 

your customers purchasing or payables system. Many 

companies attempt to measure this metric using the On Time 

and In Full to Commit as a base and then subtract order 

invoices that have some deduction associated with it. 


Transactional Analysis Template 

Interviewees Susan, Terri, Julie, Jane, Dan, and Mike 

Accountable 

Customer Service Director 

Function 

Primary Input(s) SCOR Element Primary Output(s) 

Customer call, fax, or email 

Web order 

Field sales contact 

Customer profile 

D1.2 Receive, Enter, and Validate the Order 

D2.2 Receive, Configure, Enter, and Validate the Order 

Entered sales order 

Step 

Description 

Responsible 

Event Time 

1 

Customer Service 

Retrieve or enter new customer master record. 1 

Represenative 

2 


Verify ship to/bill to addresses. 1 

Represenative 

3 


Review customer special notes. 5 

Represenative 

4 

Enter customer contact, payment terms, ship 

method and P.O. number. 


Represenative 

1 

Process Steps (>4 

and

YOUR COMPANY Workbook.xlsx 

Process 

Horizon Update Interval Level 

Budget 

(Business) 

Planning 

sEP.9 - Align Supply Chain Unit 

Plan with Financial Plan 

Integrated Supply 

Chain Planning and/or 

SO&P 

sP1 - Plan Supply Chain 

sP2 - Plan Source 

Tactical Planning 

sP3 - Plan Make 

sP4 - Plan Deliver 

sS1.1 - Schedule Product 

Deliveries 

sM1.1 - Schedule Production 

Activities 

Scheduling 

sD1.3 - Reserve Inventory & 

Determine Delivery Date 

sD1.5 - Plan & Build Loads 


Staple Yourself To an Order Worksheet 

Interviewees Enter the interviewees from the interview planning worksheet. 

Accountable 

Enter the title of the ultimate role accountable to the performance of this SCOR Level Three process. 

Function 

Primary Input(s) SCOR Element Primary Output(s) 

Enter the primary transactional input(s) 

to this process 

Enter the SCOR Level Three Process element ID and description, i.e. 

M1.1 Schedule Production Activities 

Enter the primary transactional output(s) 

to this process 

Step 

Description 

Responsible 

Event Time 

1 

Enter the description of each of the process steps; 

often referred to as level four process steps 

Enter the title(s) of 

those doing the 

work 

This is an effort of the amount of time 

(often calculated in minutes) and is 

normalized to one of four transactions, 

i.e. purchase order, work order, sales 

order, return authorization, or forecast 

2 

Process Steps (>4 

and

SCOR PROJECT Session Objectives - Supply Chain Council

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