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  • 1. SCOR® Users Seminar Wednesday, 21 September 2005 Organized by the Supply-Chain Council, Inc. Sheraton National Hotel Arlington, Virginia, USA (Washington, DC Metro Area) 8:50 – 9:35 a.m. Please select one track to attend Measuring SCOR Impacts SCOR in Building Products Learn How Best-in-Class Companies Applying the SCOR-model to Drive Supply Are Simplifying Their Supply Chains to Chain Excellence Improve Performance Scott Goodlett, Sr. Director, Ed Salley, President, Performance Supply Chain Excellence Measurement Group Georgia-Pacific Corporation Mark Mastandrea, Manager, PRTM Management Consultants In June, 2004, GP adopted the SCOR-model as the company’s default process model. Since adoption, it has become a foundational component for driving Supply The results of the SC Complexity Benchmark Study that Chain Excellence across the company. The SCOR model the Supply-Chain Council co-sponsored with PRTM, PMG has been used to: and Harvard Business Review Supply Chain Strategy newsletter will be presented. Generally it has been ♦ Create a common language used by all businesses to found that companies that excel in supply chain facilitate collaboration and leverage best practices complexity management achieve better financial and across GP supply chain performance, including; ♦ Facilitate the development of Supply Chain strategies • Reductions in cost of goods sold as a percentage for each business. For each functional area of the of revenue SCOR model each business has completed capability by nearly 35% assessments and SWOT analyses, reviewed and • About ½ inventory days of supply than average identified leading and best practices, identified key performing companies metrics, and completed GAP analysis, key projects • Nearly all orders delivered on time to the and a road map. customer request date ♦ Conduct an external benchmarking project for all North American operations In today's global environment, many companies have ♦ Provide the basis for enterprise and business unit increased the rate of new product introductions, scorecards relocated production, and raised levels of outsourcing to ♦ Categorize and track all enterprise and business unit remain competitive. At the same time they have added Supply Chain projects (over 200 projects with a goal new market segments, customers, channels, and of over $75MM in cost compression for 2005) logistics partners. Supply chains have become extremely complex as a result. Yet top-performing companies are ♦ Analyze existing Supply Chain positions across GP to able to manage these complexities effectively and assist in defining job families and related technical benefit from a significant supply chain performance competencies advantage.
  • 2. 9:45 – 10:30 p.m. Please select one track to attend DCOR to SCOR SCOR in Government Bringing DCOR to Life: The SCOR Roadmap For Local Government Design for Supply-Chain and Reducing Product Launch Cycle Time Karla Alvarado, University of Central Florida, College of Engineering and Computer Science Joseph D. Francis and Caspar Hunsche, Managing This roadmap arose out of lessons learned from a Directors of Process Core Group successful implementation within private industry and was validated by applying it in three different case studies This session reviews briefly the SCC “DCOR” framework, provided by Siemens, CISCO, and IBM. It was then the partner framework to SCOR, but for product design, implemented to streamline the service supply chain of the and the implementation cycle. Two case studies will be Seminole County, Florida Government. presented by the co-authors of the original standard at HP. With ever shortening product development cycles, the In addition, this work provides a good framework of how product launch cycle itself has become a major focus of government can implement e-supply chain strategies. cycle-time reduction activities. Government can improve their supply chain operations Using DCOR to understand and measure the components through sharing of relevant information and perfecting of a global product launch is covered in the initial part of demand and supply processes by using Web technologies. these presentations, covering re-engineering for Ways to improve the SCOR model using other tools such - 80% reduction in cycle time as Lean Manufacturing and Six Sigma are also explored. - 50% reduction in cost Six Sigma can provide SCOR with the infrastructure and While ramping up for more frequent and larger launches. the execution mechanism to make good SCOR-based Supply Chain process design a reality. The top-to-bottom The industry ‘rule of thumb’ Is that 80% of product costs organizational impact of a Lean Six Sigma program can be are ‘designed in’ during the product development process. extended to include SCOR so that awareness and The second half of this presentation focuses on application of the model is threaded throughout the entire DCOR/SCOR support for end-to-end “Product Design for government. The program infrastructure, roles and Supply-Chain” re-engineering of a struggling operation for responsibilities, training and development capability, and vastly improved performance. By changing key metrics in execution oriented tools of Lean Six Sigma are ideal for design, including 76% reduction in SKU management taking the output of SCOR. complexity and 90% improvement in PDM data errors.
  • 3. 10:40 – 11:25 p.m. Please select one track to attend SCOR in the US Navy SCOR in Biotech Applying SCOR to the Navy Personnel Modeling Supply Dynamics for Supply Chain Biopharmaceutical Product Launch Taylor Wilkerson, Research Fellow Todd Applebaum, Vice President, Maxiom Group Logistics Management Institute Mike Barnett, Director of Professional Services, Gensym Corporation The Navy’s process for recruiting, training, detailing, distribution, and strength planning of personnel operates Biotech and life sciences companies face huge very similarly to a typical supply chain. The Navy uncertainties and significant business risk in bringing new Personnel Command conducted a feasibility study to products to market. Therapeutics may fail in the clinic, determine if supply chain concepts and tools could be regulatory processes can extend time to approvals, and successfully applied in the Manpower, Personnel, and the demand profile for novel therapeutics is unknown. As Training Enterprise (MPTE) to improve process execution. emerging companies focus their efforts and investments LMI used a modified version of the SCOR model as the on ensuring the technological success of the science, less framework for evaluating the applicability of supply chain attention is typically paid to the development of the supply tools to a Navy Personnel Supply Chain. The use of a network that will be required to meet market demand. known supply chain process framework, SCOR, enabled a Insufficient attention to supply chain design, demand rapid and robust analysis of the MPTE processes and their management and product expirations can significantly interaction with typical supply chain tools. Using SCOR reduce post-launch performance. also provided the team with insights beyond mere application of tools. This project demonstrates SCOR’s benefit to business areas beyond the traditional material Supply challenges faced by emerging biopharmaceutical focused supply chain. companies will be discussed, and the results of an analysis conducted to examine various scenarios in preparation for launch of a new therapeutic using Gensym's SCOR-based supply network modeling and simulation software will be included. The results of a dynamic analysis provided additional details on characteristics that would impact supply chain reliability. This effort included an examination of the dynamics inherent in the supply network subject to different demand signals and changes in approval dates, production allocation, inventory management policies, and the impact of product expirations. The results showed that close coordination between sales and operations is needed to successfully manage demand.
  • 4. 11:30 – 12:30 p.m. Lunch 12:35 – 1:20 p.m. Please select one track to attend SCOR in Value Chain Excellence SCOR in Global Procurement SCOR in Petroleum Products Value Chain Excellence© – SCOR - Procurement Event The Application of SCOR in Fact or Fiction? Monitoring Supply Chain Assessment - A Case Study A Client Case Study Dipl. Ing. Dr. Sabine Baeck Peter Bolstorff, President and FH-Joanneum, University of Tony Nelson CEO, SCE Limited Industrial Management Executive Consultant Director, SCORBoard Capgemini UK Supply Chain The goal of the project PEM What “big business questions” are (procurement event monitoring) is the This topic offers a solution to the executives are challenged with today? development of a guideline to help increasing number of businesses that middle and small companies to are finding that traditional Why am I not growing at the optimize the whole global benchmarking exercises fail to fulfill rate I want? procurement process. Further a expectations. In a ground breaking Why am I missing my gross checklist for sorting out the level of engagement, working with a Global margin expectations? utilization of new IT-technologies is Oil company, Capgemini applied SCOR Why are my customers defined. The SCOR model is the basic and other complimentary tools to unhappy? module to check the as is situation. establish a very clear and succinct Where is my cash? In the session Dr. Baeck will present evaluation of 'fitness for purpose' of Why are my overhead the philosophy of this concept and this client's Supply Chain processes. expenses growing faster than how to use SCOR in an easy way to The rapid delivery of this assessment revenue? optimize the procurement process. has led to a range of critical changes How do I achieve competitive in course and strategy that will be advantage? presented. Insert YOUR BIG question here… Today, with competitive global manufacturing and sophisticated information exchange, discussions surrounding the “Big Questions” move beyond the four walls of the company and include more than just supply chain processes. As a result, dialogue is centering more on the concept of “value chain”. This moves us all to want to know “what is a value chain?” and “how can a company improve one relative to our Big Business Question?” Mr. Bolstorff will explore these questions.
  • 5. 1:30 – 2:15 p.m. Please select one track to attend SCOR in the Air Force SCOR in IT SCOR in Garage Doors Applying SCOR Modeling to Using SCOR To Develop Organizing a World-Class USAF Logistics Reliable Business Cases For Global Supply Chain Supply Chain IT Initiatives Function Supporting Ed Stephan Production, Sales & New Lead Operations Research Dmitry Kordysh Product Introductions Analyst Partner CACI International PRTM Management Consultants Alan G. Dunn Founder & President Focus will be on a current contract Creating a reliable and fact-based GDI Consulting & Training with the USAF where SCOR & Lean business case for supply chain IT modeling techniques are being applied enablement initiatives is often a This SCOR Case Study is based upon to identify commonality between the challenge. Expected business benefits actual implementation at a roll-up USAF’s base and depot level are often nothing more than rough garage door manufacturer. This maintenance operations. A simulation estimates without a solid foundation, presentation focuses on the keys model of the current & future states but are used to support decision- points to consider when building a has been developed. The future state making on significant investments. global supply chain purchasing was developed taking into department: cheaper cost of supplies consideration SCOR’s five distinct Mr. Hermans will outline an approach is only one small factor. In this highly management processes – plan, where SCOR model elements and interactive presentation Mr. Dunn source, make, deliver, & return, as metrics are used to develop business covers the six issues all businesses well as the six phases of transforming cases with a clear line of sight need to address in implementing a a business. The SCOR simulation between the supply chain IT Global Supply Chain Purchasing model developed in phase one is used investment, the operational Department. He will illustrate each through the lifecycle adding value to improvements in each of the SCOR point with insights into what each of the respective phases. The areas, and ultimately the translation techniques worked and more concept of simulation is used to into financial business benefits. The importantly which ones did not work. monitor alarms through visual aids presentation will be illustrated with called "dashboards" and manage the case study examples from PRTM USAF maintenance operations in real- projects. time. The forecasting capabilities of simulation are also leveraged.
  • 6. 2:25– 3:05 p.m. Please select one track to attend SCOR in the Army SCOR in IT SCOR in Collaboration The Integrated Logistics Applying SCOR to IT Linking Supply Network Analysis Program (ILAP) – (Information Technology) Performance to Customer SCOR-Based Principles Organizations Success Measuring Supply Chain Behavior In Support Of Harjit Deo Trevor Miles Army Readiness and the Senior Information Technology Director, Solution Consulting Global War on Terrorism Manager Sockeye Solutions Intel Corporation Alan Stein, Principal, CALIBRE How collaborative supply chain Mr. Deo will discuss how the SCOR architecture can enable establishment The presentation will overlay the model applies to the COBIT (IT) of key performance indicators (KPI) as applicable SCOR principles on framework. He has been working on part of a SCOR Card will be Integrated Logistics Analysis Program creating a model of what supply chain presented. Tracking KPI can give (ILAP) practices as the principal road- management means to an IT companies valuable trending data and map to integrating classic logistics organization and created a draft zero advance warnings to optimize the stovepipes, use major performance of how the SCOR model rationalizes supply chain. measures and implement supply chain to an IT organization. He will present How single- and multi-tier supply optimization; (e.g., what policy makes his work and invite discussion from chains benefit from SCOR practices sense given extreme shifts in demand the audience on this timely topic. will be covered. From network profiles?). We will conclude the Feedback will be incorporated to configuration to SLA enforcement to presentation with an overlay of the evolve the model further and possibly multiple inventory node aggregation, Operation Iraqi Freedom supply chain even sew the seeds for a new SCOR companies receive major operational and applicable SCOR principles. A Development Project. and financial benefit. dynamic demonstration will be How to analyze operational provided of the application using live performance (transactions and feeds from Southwest Asia, just as exceptions) with Global Policy Army logisticians worldwide view their Optimization and recommend supply chain policies improvements and challenging issues. revised constraints is also a topic.
  • 7. 3:15 – 4:00 p.m. Please select one track to attend SCOR in PBL Measuring SCOR Impacts SCOR in Collaboration Using SCOR in Performance Survey Results Link SCOR Applying the Integrated Based Logistics Process Emphasis to Process and Technology Strategy Framework Strategy John Sells, Product Support Manager –Tobyhanna Army Honggeng Zhou George Brown, Architect IT, Depot Assistant Professor Intel Corporation Taylor Wilkerson, Research University of New Hampshire Fellow – Logistics Management W.C. Benton, Professor Conveying the value of an approach Institute Ohio State University to accelerate the definition of business collaborations across a Anecdotal evidence and trade journals federation of enterprises and its The SCC’s Aerospace and Defense have reported significant implementation within a Service- Special Industry Group (A&D SIG) is improvements after firms have oriented Architecture (SOA) actively developing a one day adopted the SCOR-model. However, environment is the objective of this workshop on using the SCOR model no large scale empirical study has yet presentation. The Integrated Process to facilitate PBL implementation. This tested the validity of SCOR or and Technology Framework strategy workshop is planned for Spring 2006 differentiated the use of SCOR in is a two-tiered approach that and will be targeted to defense supply different firms. The purpose of this facilitates the mapping of business chain managers, program managers, study is to empirically validate the process requirements to the contractors and others involved in SCOR model, and investigate how capabilities with the SOA executing PBL programs. In this firm strategies impact the use of infrastructure through use of Process session, the A&D SIG will present the SCOR. Data from 125 North Reference models and a conceptual proposed outline and general content American firms were collected. The architecture whose components for the workshop and solicit feedback results show several things, including enable all types of collaborative and discussion from the attendees. that firms with cost leadership process patterns. The strategy and its strategy emphasize the effectiveness methodology will be described for a of Source, Make, and Deliver generic Logistics Network Services processes, while the firms with (LNS) supply-chain to retail store differentiation strategy emphasize the order use case. effectiveness of the Plan process.
  • 8. 4:15 – 5:00 Closing Presentation Using SCOR to Implement S&OP SCOR Methodology And Metrics-A Real Life Case Study Denise Layfield, Director-Supply Cain Planning and Strategy, McCormick US Consumer Products Division, USA and Chairperson of the Global Supply Chain Council Ms Layfield will describe the way that McCormick used SCOR to implement Sales and Operations Planning in the US Consumer Products and Food Service Divisions and share the customer service, forecast accuracy and inventory turn improvements that resulted from the implementation. With the total duration of the project from planning and organizing to implementation taking just 6 months, this is a real life example of a fast tracked project using SCOR project methodology and metrics which delivered results within the first year of implementation. ® SCOR is a registered trademark in the United States and Europe SCOR Workshop This workshop will be held at the same hotel for the two days prior to the Users Seminar. The Workshop requires separate registration and fee. Participation in the SCOR Workshop is limited to 25 persons. The Workshop program and registration are available on the website www.supply-chain.org under Events/Workshops and Seminars.