Once the performance of the supply chain operations has been measured and performance gaps identified, it becomes important to identify what activities should be performed to close those gaps. Over 430 executable practices derived from the experience of SCC members are available.
The SCOR model defines a best practice as a current, structured, proven and repeatable method for making a positive impact on desired operational results.
ƒ Current - Must not be emerging (bleeding edge) and must not be antiquated
ƒ Structured - Has clearly stated Goal, Scope, Process, and Procedure
ƒ Proven - Success has been demonstrated in a working environment.
ƒ Repeatable - The practice has been proven in multiple environments.
ƒ Method- Used in a very broad sense to indicate: business process, practice, organizational strategy, enabling technology, business relationship, business model, as well as information or knowledge management.
Thursday, April 9, 2009
The Process Modeling Pillar
By describing supply chains using process modeling building blocks, the model can be used to describe supply chains that are very simple or very complex using a common set of definitions. As a result, disparate industries can be linked to describe the depth and breadth of virtually any supply chain.
SCOR(r) is based on five distinct management processes: Plan, Source, Make, Deliver, and Return.
Plan - Processes that balance aggregate demand and supply to develop a course of action which best meets sourcing, production, and delivery requirements.
Source - Processes that procure goods and services to meet planned or actual demand.
Make - Processes that transform product to a finished state to meet planned or actual demand.
Deliver - Processes that provide finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management.
Return - Processes associated with returning or receiving returned products for any reason. These processes extend into post-delivery customer support.
With all reference models, there is a specific scope that the model addresses. SCOR is no different and the model focuses on the following:
All customer interactions, from order entry through paid invoice.
All product (physical material and service) transactions, from your supplier’s supplier to your customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc.
All market interactions, from the understanding of aggregate demand to the fulfillment of each order.
SCOR does not attempt to describe every business process or activity. Relationships between these processes can be made to the SCOR and some have been noted within the model. Other key assumptions addressed by SCOR include: training, quality, information technology, and administration (not supply chain management). These areas are not explicitly addressed in the model but rather assumed to be a fundamental supporting process throughout the model.
SCOR(r) is based on five distinct management processes: Plan, Source, Make, Deliver, and Return.
Plan - Processes that balance aggregate demand and supply to develop a course of action which best meets sourcing, production, and delivery requirements.
Source - Processes that procure goods and services to meet planned or actual demand.
Make - Processes that transform product to a finished state to meet planned or actual demand.
Deliver - Processes that provide finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management.
Return - Processes associated with returning or receiving returned products for any reason. These processes extend into post-delivery customer support.
With all reference models, there is a specific scope that the model addresses. SCOR is no different and the model focuses on the following:
All customer interactions, from order entry through paid invoice.
All product (physical material and service) transactions, from your supplier’s supplier to your customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc.
All market interactions, from the understanding of aggregate demand to the fulfillment of each order.
SCOR does not attempt to describe every business process or activity. Relationships between these processes can be made to the SCOR and some have been noted within the model. Other key assumptions addressed by SCOR include: training, quality, information technology, and administration (not supply chain management). These areas are not explicitly addressed in the model but rather assumed to be a fundamental supporting process throughout the model.
Supply-Chain Operations Reference
Supply-Chain Operations Reference-model (SCOR(r)) is a process reference model developed by the management consulting firm PRTM and AMR Research and endorsed by the Supply-Chain Council (SCC) as the cross-industry de facto standard diagnostic tool for supply chain management. SCOR enables users to address, improve, and communicate supply chain management practices within and between all interested parties in the Extended Enterprise.
SCOR(r) is a management tool, spanning from the supplier's supplier to the customer's customer. The model has been developed by the members of the Council on a volunteer basis to describe the business activities associated with all phases of satisfying a customer's demand..
The model is based on 3 major "pillars":
Process Modeling
Performance Measurements
Best Practices
SCOR(r) is a management tool, spanning from the supplier's supplier to the customer's customer. The model has been developed by the members of the Council on a volunteer basis to describe the business activities associated with all phases of satisfying a customer's demand..
The model is based on 3 major "pillars":
Process Modeling
Performance Measurements
Best Practices
IBM jouran of R&D
The IBM Journals are now only available online for a fee. However, you can continue to read and download papers to get the inside track on emerging trends in science, technology, and business and how they are shaping our future—today.
Instructions are available in PDF format here for how your library or other institution can obtain unlimited free access for all its members. You need not miss the latest paper or issue while maintaining access to over 50 years of influential papers.
Use the left hand navigation column on this page to locate current and previously published issues and papers. The subscribe/order link can be used to order printed copies of back issues.
Instructions are available in PDF format here for how your library or other institution can obtain unlimited free access for all its members. You need not miss the latest paper or issue while maintaining access to over 50 years of influential papers.
Use the left hand navigation column on this page to locate current and previously published issues and papers. The subscribe/order link can be used to order printed copies of back issues.
Industry reference models e-commerce
Industry reference models are frameworks or models that provide a best practice off-the-shelf set of structures, processes, activities, knowledge and skills.
The enhanced Telecom Operations Map (eTOM), published by the TM Forum, describes the full scope of business processes required by a service provider in the telecommunications industry, and defines key elements and how they interact.
The Supply-Chain Operations Reference (SCOR) is a process reference model, endorsed by the Supply-Chain Council as the cross-industry de facto standard diagnostic tool for supply chain management.
The Information Technology Infrastructure Library (ITIL) is a set of concepts and policies for managing information technology (IT) infrastructure, development and operations
The enhanced Telecom Operations Map (eTOM), published by the TM Forum, describes the full scope of business processes required by a service provider in the telecommunications industry, and defines key elements and how they interact.
The Supply-Chain Operations Reference (SCOR) is a process reference model, endorsed by the Supply-Chain Council as the cross-industry de facto standard diagnostic tool for supply chain management.
The Information Technology Infrastructure Library (ITIL) is a set of concepts and policies for managing information technology (IT) infrastructure, development and operations
The Object Management Group of e-commerce
Modeling standards of the Object Management Group (OMG), including the Unified Modeling Language (UML), Model Driven Architecture (MDA) and the Business Process Modeling Notation (BPMN), enable powerful visual design, execution and maintenance of software and other processes, including IT Systems Modeling and Business Process Management.
The OMG established the Business Architecture Working Group[3] (BAWG) in December 2007 to pursue the development of standards to support the Business Architecture community. The group has begun an effort to catalog business scenarios and to capture a library of business techniques that will be used to isolate and prioritize areas of work. This initiative has as a key part of its mission the interlinking and unification of existing standards to accommodate the demands for integrated end-to-end business analytics. The BAWG conducted a Business Architecture Information Day on September 23, 2008 in Orlando at the OMG's quarterly Technical Meeting as part of an outreach effort to bring interested practitioner and vendor organizations into the standards process
The OMG established the Business Architecture Working Group[3] (BAWG) in December 2007 to pursue the development of standards to support the Business Architecture community. The group has begun an effort to catalog business scenarios and to capture a library of business techniques that will be used to isolate and prioritize areas of work. This initiative has as a key part of its mission the interlinking and unification of existing standards to accommodate the demands for integrated end-to-end business analytics. The BAWG conducted a Business Architecture Information Day on September 23, 2008 in Orlando at the OMG's quarterly Technical Meeting as part of an outreach effort to bring interested practitioner and vendor organizations into the standards process
e-Business Strategy
Business Architecture is directly based on business strategy. It is the foundation for subsequent architectures (strategy embedding), where it is detailed into various aspects and disciplines. The business strategy can consist of elements like strategy statements, organizational goals and objectives, generic and/or applied business models, etc. The strategic statements are analyzed and arranged hierarchically, through techniques like qualitative hierarchical cluster analysis. Based on this hierarchy the initial business architecture is further developed, using general organizational structuring methods and business administration theory, like theories on assets and resources and theories on structuring economic activity. Based on the business architecture the construction of the organization takes shape (figure 1: strategy embedding). During the strategy formulation phase and as a result of the design of the business architecture, the business strategy gets better formulated and understood as well as made more internally consistent.
The business architecture forms a significantly better basis for subsequent architectures than the separate statements themselves. The business architecture gives direction to organizational aspects, such as the organizational structuring (in which the responsibilities of the business domains are assigned to individuals/business units in the organization chart or where a new organization chart is drawn) and the administrative organization (describing for instance the financial reconciliation mechanisms between business domains). Assigning the various business domains to their owners (managers) also helps the further development of other architectures, because now the managers of these domains can be involved with a specific assigned responsibility. This led to increased involvement of top-level management, being domain-owners and well aware of their role. Detailed portions of business domains can be developed based on the effort and support of the domain-owners involved. Business architecture therefore is a very helpful pre-structuring device for the development, acceptance and implementation of subsequent architectures.
The business architecture forms a significantly better basis for subsequent architectures than the separate statements themselves. The business architecture gives direction to organizational aspects, such as the organizational structuring (in which the responsibilities of the business domains are assigned to individuals/business units in the organization chart or where a new organization chart is drawn) and the administrative organization (describing for instance the financial reconciliation mechanisms between business domains). Assigning the various business domains to their owners (managers) also helps the further development of other architectures, because now the managers of these domains can be involved with a specific assigned responsibility. This led to increased involvement of top-level management, being domain-owners and well aware of their role. Detailed portions of business domains can be developed based on the effort and support of the domain-owners involved. Business architecture therefore is a very helpful pre-structuring device for the development, acceptance and implementation of subsequent architectures.
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