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M4SC Process Layer - Supply Chain Council

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<strong>M4SC</strong> Overview:<br />

<strong>Process</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 />

Network<br />

Feedback<br />

Drives<br />

<strong>Supply</strong> <strong>Chain</strong><br />

<strong>Process</strong><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 Network<br />

• Problems <strong>Process</strong> <strong>Layer</strong> Addresses<br />

• Major Components<br />

• Drivers<br />

• Next steps<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> Network<br />

• Ad hoc <strong>Process</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> <strong>Process</strong>: Define <strong>Process</strong>es<br />

1. <strong>Process</strong> Flow Capture<br />

› Discovery and documentation of process activities, the flow of<br />

goods and information and process disconnects<br />

› How is work performed?<br />

2. <strong>Process</strong> Data Capture<br />

› Documentation and collection of performance data for<br />

processes. Metrics and measurements<br />

› How do we measure performance of this process?<br />

› How well is the work performed?<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> <strong>Process</strong>: <strong>Process</strong> Analysis<br />

3. <strong>Process</strong> Value Stream Model<br />

› Collection and analysis of the flow of processes and the waste<br />

within processes<br />

› What are the non-value-add activities?<br />

4. <strong>Process</strong> RACI Analysis<br />

› Discovery and documentation of who is accountable for the<br />

performance of individual process activities<br />

› Who is responsible for each process?<br />

5. <strong>Process</strong> Practices Analysis<br />

› Discovery and comparison of existing practices to the strategic<br />

list of desired practices<br />

› Are we meeting standardization 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> <strong>Process</strong>: <strong>Process</strong> Efficiency Analysis<br />

6. <strong>Process</strong> Efficiency Analysis<br />

› Collect and analyze data on process activity efficiency. Identify<br />

opportunities to increase cycle time and yield<br />

› How well does the process work?<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> <strong>Process</strong>: <strong>Process</strong> Redesign<br />

7. <strong>Process</strong> Solution Definition<br />

› Discover and document scenarios for how process can be<br />

added, repaired or replaced. This utilizes deliverables from all<br />

analysis steps<br />

› What changes do we want to make?<br />

8. Capture To-Be <strong>Process</strong>es<br />

› Describe how each scenario will be structured and implemented<br />

› How will the work be performed?<br />

9. To-Be <strong>Process</strong> Simulation<br />

› Develop and execute tests to verify whether the proposed<br />

changes are projecting the right performance.<br />

› How well will our new processes work?<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> <strong>Process</strong>: <strong>Process</strong> Redesign<br />

10. Business Rules Redesign<br />

› Gather new and changed policies and document new and<br />

updates to business rules<br />

› What are the changes in policies and decision criteria?<br />

11. Organizational Redesign<br />

› Identify and document changes in organizational roles and<br />

responsibilities. This may include changes in organizations to<br />

align closer to process responsibilities<br />

› What changes are needed in the organization?<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>Process</strong>: <strong>Process</strong> Change Outcomes<br />

12. <strong>Process</strong> Change Prioritization<br />

› Agree and communicate the priorities for implementing changes<br />

to individual processes. Communication includes reference to<br />

the business and supply chain goals, network changes and<br />

practices to be implemented<br />

› What is the plan/urgency to implement each change?<br />

› Which changes will we implement when?<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>Process</strong> Drivers<br />

• Change in strategy/network<br />

› Business strategy changes<br />

› <strong>Supply</strong> chain strategy changes<br />

• Major market events<br />

› Change to competitive landscape, customer base, customer<br />

complaints, supplier problems<br />

• Feedback from <strong>M4SC</strong> Resources<br />

drives<br />

› <strong>Process</strong> performance goals cannot be met<br />

› Resource requirements cannot be met<br />

<strong>Supply</strong> <strong>Chain</strong><br />

<strong>Process</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 | 11 | 23 July 2013


<strong>M4SC</strong> <strong>Process</strong> Benefits<br />

• Validation of current processes<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 />

process (optimization or improvement) management<br />

• Assessment of maturity of process management<br />

capability<br />

© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | 2013 <strong>M4SC</strong> – Strategy Overview | 12 | 23 July 2013


<strong>M4SC</strong> <strong>Process</strong>: Next Steps<br />

Today:<br />

• Subset of our members-practitioners experience<br />

Future:<br />

• How to sell to my boss<br />

• Measurement and Best Practices<br />

• <strong>Process</strong> automation<br />

• Risk and process level management<br />

• Impact of ‘Green’ on process<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 | 13 | 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 | 14 | 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 | 15 | 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> Network Management Overview – Problems Network <strong>Layer</strong> <br />

Addresses, Major Components, Drivers, Use, and EvoluEon <br />

<strong>M4SC</strong> <strong>Process</strong> Management Overview – Problems <strong>Process</strong> <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 | 16 | 23 July 2013


<strong>M4SC</strong> Volunteer Formation<br />

Webinar <br />

27-­‐Aug <br />

10-­‐Sep <br />

12-­‐Sep <br />

16-­‐Sep <br />

23-­‐Sep <br />

30-­‐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> Network Training – Public/Volunteer – 2 Day Training <br />

Houston, TX – Limited volunteer seats <br />

<strong>M4SC</strong> <strong>Process</strong> Training – Public/Volunteer – 2 Day Training <br />

Houston, TX – Limited volunteer seats <br />

Team OrganizaEon – Strategy, Network, <strong>Process</strong>, 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 | 17 | 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 <strong>Process</strong>es, VerificaEon of Baseline Understanding, <br />

organized by each Strategy, Network, <strong>Process</strong>, 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 | 18 | 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 <strong>Process</strong> 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 | 19 | 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 | 20 | 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 | 21 | 23 July 2013

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