SCM Ch. 3

Order, warehouse, transportation, and installation management for stocked, make to order and engineer to order product

Deliver

Make to stock, make to order, and engineer to order production execution

Make

A smaller carbon footprint may also mean..

Lower costs

These are the 5 process categories of the SCOR model

Plan Source MAke Deliver Return

In SCOR, sourcing stocked, make to order and engineer to order products including scheduling deliveries, receiving, verifying,

Source

Web-based balanced scorecard systems are also sometimes referred to as...

dashboards

designing supply chains with enough flexibility to respond quickly to changes in the marketplace

demand driven supply networks

The SCOR model is used to...

describe, measure, and evaluate supply chain configurations

The SCOR model is designed to enable...

effective communication, performance measurement, and integration of processes between supply chain members.

using performance standards like quotas can cuase

functional silos

the difference between standard and actual performance

performance variance

These are the benefits of dashboards...

read from notes

A performance measurement system should consist of

traditional financial info for external reporting along with tactical level performance criteria used to assess the firms competitive capabilities while directing its efforts to attain other desired capabilities

Used as a way to align an org's performance measures with its strategic goals. Is designed to provide managers with a formal framework for achieving a balance between financial and non-financial results across short and long term planning horizons.

Balanced Scorecard (BSC) (Scorecarding)

Additions to SCOR model are...

Customer Chain Operations Reference (CCOR) Design Chain Operations Reference (DCOR)

In the BSC, measures that focus on customer requirements and satisfaction including customer satisfaction ratings, reliability and responsiveness, customer retention, new customer acquisition, customer valued attributes, and customer profitability.

Customer Perspective

These are the weaknesses of the balanced scorecard:

Expensive Difficult to implement may need to change info systems Unable to show what competitors are doing exclusion of employee, supplier and alliance partner contributions reliance on top-down measurements

These are the four perspectives of the BSC framework:

Financial Internal Business Processes Customer Learning and Growth

In the BSC, measures that address revenue and profitability growth, product mix, cost reduction, productivity, asset utilization and investment strategy. Traditional financial measures are typically used.

Financial Perspective

This is the objective of an effective supply chain environmental performance system. It extends across the organization and its trading partners and includes processes involved in purchasing, manufacturing, and materials management and distribution and reverse logistics.

Green Supply Chain Management (GSCM)

Creating an effective performance measurement system involves the following steps:

ID the firms strategic objectives Develop an understanding of each functional area's set of requirements for achieving the strategic objectives Design and document performance measures for each functional area that adequately track each required capability Assure the compatability and strategic focus of the performance measures to be used. Implement the new performance monitoring systsem ID internal and external trends likely to affect firm and functional area performance over time periodically reevaluate the firm's performance measurement system as these trends and other environmental changes occur

In the BSC, focuses on performance of the most critical internal business processes of the organization, including quality, new product development, flexibility, innovative elements of processes, and time-based measures.

Internal Business Process Perspective

In the BSC, measures concentrating on the organization's people, systems, external environment, and including retaining and training employees, enhancing info technology and systems, employee safety and health and environmental sustainability issues.

Learning and Growth Perspective

At this level of the SCOR model, users select appropriate process categories from the SCOR configuration toolkit to represent their supply chain and select from 13 performance atts.

Level 1

At this level of SCOR, the processes are further described by type. Within each process type are process categories that users specify.

Level 2

In this SCOrR level, process flow diagrams are defined with process elements or specific tasks for each of the process categories established in Level 2, showing inputs, process elements, and outputs. Best practices can also be identified at this level.

Level 3

In the SCOR, demand and supply planning including balancing resources with requirements; establishing /communicating plans for the supply chain; management of business rules, supply chain performance, data collection, inventory, capital assets, transportation, and regulatory requirements

Plan

Returns of purchased materials to suppliers and receipt of finished goods returns from customers.

Return

The average percentage of orders for the supply chain members that are filled on or before the requested delivery date.

SC Delivery Performance

Is used as a supply chain diagnostic, benchmarking, and process improvement tool by manufacturing and service firms in a variety of industries around the globe.

SCOR Model

The average number of days between paying for raw materials and getting paid for product for the supply chain partners. Shows the impact of lower inventories on the speed of cash moving through firms and the supply chain.

Supply Chain Cash-to-Cash Cycle Time

The average percentage of electronic orders received for all supply chain members

Supply Chain E-Business Performance

The percentage of supply chain trading partners that have become ISO 14000 certified; the percentage of suply chain trading partners that have created a director of environmental sustainablility; the average percentage of environmental goals met; the average number of policies adopted to reduce greenhouse emissions; and the average percentage of carbon footprints that have been offset by sound environmental practices.

Supply Chain Environmental Performance

The average percentage of orders among supply chain members that arrive on time, complete, and damage free.

Supply Chain Perfect Order Fulfillment Performance

The average time required for supply chain members to provide an unplanned, sustainable 20% increase in production. Average for best in class supply chains is one to two weeks

Supply Chain Production Flexibility

The costs to process orders, purchase materials, purchase energy, comply with environmental regulations, manage inventories, and returns and returns and manage supply chain finance, planning and information systems

Total Supply Chain Management Costs

These are the 7 specific supply chain Performance Measures

Total Supply Chain Management costs Supply Chain Cash-to-Cash Cycle Supply Chain Production Flexibility Supply Chain Delivery Performance Supply Chain Perfect Order Fulfillment Performance Supply Chain E-Business Performance

These are the problems with using revenue, costs and profitability to measure success

Windfall profits from demand increases and supply disruptions difficult to assign to functional units can cause shift of costs or increase of costs

An effective performance criteria must

be easy to understand, implement and measure flexible and consistent with firms objectives must be implemented in areas that are viewed as critical to the end customer

the focus of a performance measurement system should be:

value creation for the end customer