The SCOR Model - Supply Chain Council
The SCOR Model - Supply Chain Council
The SCOR Model - Supply Chain Council
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©2010 by Ferhat Oegretmen. ALL RIGHTS RESERVED.<br />
<strong>The</strong> <strong>SCOR</strong> <strong>Model</strong><br />
An Implementation and Analysis by Merck Serono<br />
© 2010 <strong>Supply</strong> <strong>Chain</strong> <strong>Council</strong>. ALL RIGHTS RESERVED. | < filename > | Slide 1 | October 29, 10<br />
Ferhat Oegretmen, Global Data Manager<br />
Munich, 26 October 2010
<strong>The</strong> <strong>SCOR</strong> <strong>Model</strong><br />
An Implementation and Analysis<br />
by Merck Serono<br />
Ferhat Oegretmen<br />
Global Data Manager, Merck Serono MS-TSE<br />
Munich, 26 October 2010<br />
©2010 by Ferhat Oegretmen. ALL RIGHTS RESERVED.
Table of Contents<br />
1. About Merck Serono<br />
2. Management Summary<br />
3. General Situation<br />
4. Consequences<br />
5. Solutions<br />
6. Overall Message<br />
7. Back-Up<br />
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An Implementation and Analysis by Merck Serono | 26 October 2010
Table of Contents<br />
1. About Merck Serono<br />
2. Management Summary<br />
3. General Situation<br />
4. Consequences<br />
5. Solutions<br />
6. Overall Message<br />
7. Back-Up<br />
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An Implementation and Analysis by Merck Serono | 26 October 2010
1. About Merck Serono<br />
A subsidiary of Merck KGaA<br />
Merck KGaA<br />
Business sectors<br />
Pharmaceuticals<br />
Chemicals<br />
Merck Serono<br />
Consumer Health Care<br />
Merck Millipore<br />
Performance Materials<br />
Divisions<br />
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An Implementation and Analysis by Merck Serono | 26 October 2010
1. About Merck Serono<br />
A subsidiary of Merck KGaA<br />
Merck KGaA<br />
Innovative, specialized, international<br />
Headquarter Merck KGaA.<br />
Darmstadt, Germany.<br />
• World’s oldest pharmaceutical and<br />
chemical company<br />
• A history that began in 1668<br />
• Around 40,000 employees in 64<br />
countries<br />
• Product line: Oncology, Fertility,<br />
Multiple Sclerosis, Liquid Crystals,<br />
Reagents, Pigments, …<br />
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An Implementation and Analysis by Merck Serono | 26 October 2010
1. About Merck Serono<br />
A subsidiary of Merck KGaA<br />
Merck Serono<br />
Our active ingredient is innovation<br />
Headquarter Merck Serono.<br />
Geneva, Switzerland.<br />
• Founded on 05 January 2007, when<br />
Merck KGaA acquired Serono<br />
• 16,000 employees share the spirit of<br />
our founders<br />
• Biotechnology leader in treatments for<br />
diseases with serious medical needs<br />
• <strong>The</strong>rapeutic Areas: Oncology, Fertility,<br />
Multiple Sclerosis, Endocrinology, …<br />
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An Implementation and Analysis by Merck Serono | 26 October 2010
Table of Contents<br />
1. About Merck Serono<br />
2. Management Summary<br />
3. General Situation<br />
4. Consequences<br />
5. Solutions<br />
6. Overall Message<br />
7. Back-Up<br />
8<br />
An Implementation and Analysis by Merck Serono | 26 October 2010
2. Management Summary<br />
Basic principles of procedure<br />
Implementation of <strong>SCOR</strong><br />
General Situation<br />
Consequences<br />
Solutions<br />
Situation before <strong>SCOR</strong><br />
implementation<br />
Outcomes due to<br />
general situation<br />
Actions due to<br />
consequences<br />
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An Implementation and Analysis by Merck Serono | 26 October 2010
Table of Contents<br />
1. About Merck Serono<br />
2. Management Summary<br />
3. General Situation<br />
4. Consequences<br />
5. Solutions<br />
6. Overall Message<br />
7. Back-Up<br />
10<br />
An Implementation and Analysis by Merck Serono | 26 October 2010
3. General Situation<br />
Basic principles of procedure<br />
Implementation of <strong>SCOR</strong><br />
General Situation<br />
Consequences<br />
Solutions<br />
Situation before <strong>SCOR</strong><br />
implementation<br />
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3. General Situation<br />
Manufacturing sites operate in different countries<br />
Challenges<br />
More than within one single<br />
location<br />
• More coordination<br />
• More communication<br />
• More collaboration<br />
Requirements<br />
High in managing global<br />
processes<br />
• Limited product shelf-life<br />
• More temperature-controlled<br />
transportation<br />
• Thwart product counterfeiting<br />
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3. General Situation<br />
To meet requirements an overview is needed<br />
<strong>Supply</strong> <strong>Chain</strong> Description<br />
No<br />
Reference <strong>Model</strong><br />
Process Language<br />
Manufacturing sites use individual models related to single activities<br />
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Table of Contents<br />
1. About Merck Serono<br />
2. Management Summary<br />
3. General Situation<br />
4. Consequences<br />
5. Solutions<br />
6. Overall Message<br />
7. Back-Up<br />
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4. Consequences<br />
Basic principles of procedure<br />
Implementation of <strong>SCOR</strong><br />
General Situation<br />
Consequences<br />
Solutions<br />
Outcomes due to<br />
general situation<br />
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4. Consequences<br />
Outcomes due to individual models<br />
Thinking in<br />
departments<br />
• Improving at one point in the network without<br />
considering consequences at other points<br />
• Isolated improving<br />
• Counterproductive to overall performance<br />
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4. Consequences<br />
Outcomes due to individual models<br />
Thinking in<br />
departments<br />
Organization-specific<br />
models<br />
• Value Stream Mapping (VSM)<br />
• <strong>Supply</strong> <strong>Chain</strong> Mapping<br />
by Cooper, Lamber and Pagh<br />
• <strong>Supply</strong> <strong>Chain</strong> Mapping<br />
by manufacturing sites<br />
• Tools: ARIS, Excel, Visio, ViFlow, …<br />
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4. Consequences<br />
Outcomes due to individual models<br />
Thinking in<br />
departments<br />
Organization-specific<br />
models<br />
No access in<br />
documentation<br />
• Manufacturing sites have no supply chain<br />
descriptions<br />
• Manufacturing sites have incomplete<br />
documentations<br />
• Existing documentations are only printed on<br />
paper and not available for other sites<br />
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4. Consequences<br />
Outcomes due to individual models<br />
Thinking in<br />
departments<br />
Organization-specific<br />
models<br />
No access in<br />
documentation<br />
Challenges in<br />
comprehension<br />
• Existing and available documentations have<br />
different business process languages<br />
• Employees have troubles in understanding<br />
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4. Consequences<br />
Outcomes due to individual models<br />
Thinking in departments<br />
Organization-specific<br />
models<br />
No access in<br />
documentation<br />
Challenges in<br />
comprehension<br />
• Decision makers are not able to<br />
keep track of all processes<br />
• But rather about the workflows of<br />
each subsidiary<br />
• Manufacturing sites’ processes<br />
are not comparable<br />
• A common repository, i.e. a<br />
knowledge database, is missing<br />
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An Implementation and Analysis by Merck Serono | 26 October 2010
Table of Contents<br />
1. About Merck Serono<br />
2. Management Summary<br />
3. General Situation<br />
4. Consequences<br />
5. Solutions<br />
6. Overall Message<br />
7. Back-Up<br />
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5. Solutions<br />
Basic principles of procedure<br />
Implementation of <strong>SCOR</strong><br />
General Situation<br />
Consequences<br />
Solutions<br />
Actions due to<br />
consequences<br />
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5. Solutions<br />
Decision for introducing a reference model<br />
Objectives Pilot Project IT-Tool<br />
• Get an overview of process flow between manufacturing sites<br />
• Get capability for supply chain analysis<br />
• Get capability for supply chain management<br />
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5. Solutions<br />
Decision for introducing a reference model<br />
Objectives Pilot Project IT-Tool<br />
• Starting a pilot project between two manufacturing sites<br />
• <strong>The</strong>re is a continuity between these sites<br />
• Autonomous management teams with own supply chain management<br />
• No process documentation<br />
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5. Solutions<br />
Decision for introducing a reference model<br />
Objectives Pilot Project IT-Tool<br />
• ARIS database gives a predetermined structure<br />
• <strong>The</strong> core is the representation of processes in form of diagrams<br />
• <strong>The</strong> <strong>SCOR</strong> database is a crucial benefit of the ARIS platform<br />
• It improves modeling by reducing functions and tools<br />
• Publishing created models on intranet<br />
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5. Solutions<br />
Implementation of <strong>SCOR</strong> combined with ARIS<br />
Map<br />
ping<br />
proc<br />
ess<br />
es<br />
with<br />
ARI<br />
S<br />
• <strong>The</strong> supply chain description<br />
consists of three versions:<br />
<strong>SCOR</strong> Level 1, 2 and 3<br />
ARIS Web Export – Process steps<br />
Upl<br />
oad<br />
data<br />
into<br />
intra<br />
net<br />
Pro<br />
vide<br />
link<br />
to<br />
emp<br />
loye<br />
es<br />
Em<br />
ploy<br />
ees<br />
revi<br />
ew<br />
proc<br />
ess<br />
es<br />
Icons to click<br />
• Employees have to click an icon to<br />
see the relevant description<br />
• At all levels employees see the hole<br />
supply chain<br />
<strong>SCOR</strong> Level 1<br />
<strong>SCOR</strong> Level 2<br />
<strong>SCOR</strong> Level 3<br />
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5. Solutions<br />
Implementation of <strong>SCOR</strong> combined with ARIS<br />
Level 1 Level 2 Level 3<br />
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An Implementation and Analysis by Merck Serono | 26 October 2010
5. Solutions<br />
Implementation of <strong>SCOR</strong> combined with ARIS<br />
Level 1 Level 2 Level 3<br />
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An Implementation and Analysis by Merck Serono | 26 October 2010
5. Solutions<br />
Implementation of <strong>SCOR</strong> combined with ARIS<br />
Level 1 Level 2 Level 3<br />
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An Implementation and Analysis by Merck Serono | 26 October 2010
5. Solutions<br />
Implementation of <strong>SCOR</strong> combined with ARIS<br />
Level 1<br />
• Defines scope and content<br />
• Five distinct management<br />
processes are used<br />
• Number of supply chain is defined<br />
Level 2<br />
• Process categories are used<br />
• Typical redundancies, such as<br />
duplicated purchasing activities, can<br />
be identified<br />
Level 3<br />
• Detailed process description<br />
• Process elements are used<br />
• Difficult for non supply chain<br />
managers<br />
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5. Solutions<br />
Interactive implementation – Step by step<br />
Example<br />
CMG A<br />
CMG B<br />
Raw<br />
Materials<br />
Proc. Prod. Distr.<br />
Semi-finished<br />
Products<br />
Proc.<br />
Pack.<br />
Distr.<br />
Finished<br />
Products<br />
Benefits<br />
• Each process step can be clicked<br />
• Overview is ensured – for each employee<br />
• ARIS helps to build-up the processes hierarchically<br />
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5. Solutions<br />
Interactive implementation – Step by step<br />
Example<br />
CMG A<br />
Raw<br />
Materials<br />
Proc. Prod. Distr.<br />
Semi-finished<br />
Products<br />
Source Make Deliver<br />
<strong>SCOR</strong> Level 1<br />
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5. Solutions<br />
Interactive implementation – Step by step<br />
Example<br />
CMG A<br />
Raw<br />
Materials<br />
Proc. Prod. Distr.<br />
Semi-finished<br />
Products<br />
Source Make Deliver<br />
<strong>SCOR</strong> Level 1<br />
Make-To-Order <strong>SCOR</strong> Level 2<br />
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5. Solutions<br />
Interactive implementation – Step by step<br />
Example<br />
CMG A<br />
Raw<br />
Materials<br />
Proc. Prod. Distr.<br />
Semi-finished<br />
Products<br />
• Due to an overcharged<br />
visualization, employees<br />
are guided interactively<br />
by a wizard in Merck’s<br />
intranet<br />
Source Make Deliver<br />
Make-To-Order<br />
• <strong>The</strong>y are leaded to that<br />
process information<br />
which they need<br />
• It results in more visual<br />
clearness and employees<br />
have not to be<br />
acquainted with the<br />
whole supply chain<br />
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5. Solutions<br />
Internal survey to reveal the practical relevance<br />
Thinking in departments<br />
Process thinking<br />
Organization-specific<br />
models<br />
Company-wide model<br />
No access in<br />
documentation<br />
Access in document.<br />
Challenges in<br />
comprehension<br />
Comprehension<br />
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5. Solutions<br />
Internal survey to reveal the practical relevance<br />
Main characteristic features<br />
Thinking<br />
Departmental<br />
Process<br />
Evaluation Scale<br />
Specific<br />
<strong>Model</strong>s<br />
Common<br />
1 = No Change with <strong>SCOR</strong><br />
2 = Few Change with <strong>SCOR</strong><br />
Documentation<br />
3 = Partly Change with <strong>SCOR</strong><br />
No Access<br />
Access<br />
4 = Fully Change with <strong>SCOR</strong><br />
Comprehension<br />
5 = Out performer<br />
Challenges<br />
No Challenges<br />
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5. Solutions<br />
Internal survey to reveal the practical relevance<br />
1 2 3 4 5<br />
Thinking in departments<br />
Process thinking<br />
Organization-specific<br />
models<br />
Company-wide model<br />
No access in<br />
documentation<br />
Access in document.<br />
Challenges in<br />
comprehension<br />
Comprehension<br />
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An Implementation and Analysis by Merck Serono | 26 October 2010
5. Solutions<br />
Added Value<br />
• Employees think more in processes<br />
• Improving overall processes<br />
• Helps to identify process relationships<br />
• Confirms a company-wide model<br />
• Employees can be trained faster<br />
• Documents internal processes<br />
• Prepares knowledge database (repository)<br />
• Advances supply chain comprehension<br />
• Gives a comprehension of end-to-end processes<br />
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5. Solutions<br />
Further implementations at Merck Serono<br />
Pilot Project<br />
Other Sites<br />
• Is an initial and exploratory contribution to<br />
the development of a company-wide model<br />
within Merck KGaA<br />
• <strong>The</strong> investigation and implementation of<br />
<strong>SCOR</strong> is repeated between other<br />
manufacturing sites in a similar way<br />
• Once processes are described meaningful<br />
results can be evaluated and compared<br />
• <strong>The</strong> strong impression can be gained that<br />
this will lead to even more integrated and<br />
complex supply chain improvements in<br />
networks<br />
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An Implementation and Analysis by Merck Serono | 26 October 2010
Table of Contents<br />
1. About Merck Serono<br />
2. Management Summary<br />
3. General Situation<br />
4. Consequences<br />
5. Solutions<br />
6. Overall Message<br />
7. Back-Up<br />
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An Implementation and Analysis by Merck Serono | 26 October 2010
6. Overall Message<br />
Situation before and after implementation of <strong>SCOR</strong><br />
Before<br />
After<br />
• One employee knows processes<br />
• No joint process understanding<br />
• No feeling for dependencies<br />
• Perfect “silo optimizers”<br />
• Excellent “stand alone experts”<br />
• All employees know processes<br />
• Joint process understanding<br />
• Feeling for dependencies<br />
• No longer “silo optimizers”<br />
• Excellent “SCM experts”<br />
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6. Overall Message<br />
<strong>SCOR</strong> allows to map, measure and manage processes<br />
Create a supply chain<br />
description<br />
1<br />
Map<br />
Improve constraints<br />
3<br />
Manage<br />
2<br />
Measure<br />
Check the current<br />
performance<br />
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Table of Contents<br />
1. About Merck Serono<br />
2. Management Summary<br />
3. General Situation<br />
4. Consequences<br />
5. Solutions<br />
6. Overall Message<br />
7. Back-Up<br />
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7. Back-Up<br />
Personal Background<br />
Name<br />
Ferhat Oegretmen<br />
Job Title<br />
Global Data Manager<br />
Department<br />
MS-TSE<br />
ERP <strong>Supply</strong> <strong>Chain</strong> Processes & Systems<br />
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7. Back-Up<br />
Contact Data<br />
Location F131 / 560<br />
Postcode: F131 / 511<br />
E-Mail<br />
Ferhat.Oegretmen@merck.de<br />
Phone<br />
+49 (0) 6151 72 6479<br />
Mobile<br />
+49 (0) 151 1454 6479<br />
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Q & A<br />
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