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Elcio Grassia Presidente do SCC LATAM

Elcio Grassia Presidente do SCC LATAM



SCOR uma realidade em Logística. O modelo de pratica de negócio mais atualizado produzido de forma colaborativa por grandes empresas do mercado internacioal e organizado pelo SCC Supply Chain ...

SCOR uma realidade em Logística. O modelo de pratica de negócio mais atualizado produzido de forma colaborativa por grandes empresas do mercado internacioal e organizado pelo SCC Supply Chain Council.



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  • Business Process Management is the characterization at multiple levels of business process activity in a company, measurement, and guidance of the process to perform to specific goals. Many groups have focused on business process management as a key differentiator in the ‘new world’ of business and IT management.
  • This slide highlights the current state of affairs of the supply-chain council (2006-2007). Instructors can highlight additional information as appropriate, including industries covered (from Oil and Gas to Automotive to Aerospace), sectors (Private, Defense, Governmental, Educational Institutions). Another point which can be supplied is that council members in two recent studies have outperformed their peers both in revenue and profit (2003 study) as well as outperformed the DOW and S&P 500 Stock indicators in the united states (2003-2006 benchmark). The council itself is a non-for-profit institution run by and for it’s membership. Structurally, it has a board of directors, day-to-day operations managed through an association management agency, and as well numerous committees and groups – Training and Education oversaw the development of this material, the Technical Development and Steering Committee (TDSC) researches, improves, and adjusts the framework content, variouis SIG’s (Special Industry Groups) look at specific application and practices with SCOR for their areas, and then committees also look at the function of the council – Legal, Marketing, and Financial oversight. It’s just like a company, but there are no ‘owners’. 2006-2007 represents the 10 th anniversary of the Council.
  • 34
  • Speaker/Trainer Notes SCOR 8.0 Training Day 1 About 10 years ago, a group of fairly forward-thinking manufacturing companies, consultants, and researchers got together and created a process language for describing how supply-chain worked. They needed to understand how to better link large supply-chains together, how to improve performance in supply-chain process, and how to form a standard for measurement which would allow for easy benchmarking. SCOR was formed, and managed through supply-chain council in the public interest. This Supply-Chain Operations Reference framework was used successfully by over 2500 companies over time, who continued to contribute to the core information about supply-chain process, metric and practice. About 4 years ago, another group of forward thinking companies realized that the SCOR framework wasn’t enough in itself to solve issues at the enterprise scale. So they got together and worked on a standard which extended and linked with SCOR, but addressed relationships to business goals, market goals, and more direct customer interactions – so the linked frameworks of DCOR for design, MCOR for marketing, and CCOR for sales were created, and later several contributed (by HP, the primary driver) to Supply-Chain council to be managed in the public interest. Lastly, everyone also realized that for ‘non-value stream’ processes (to use a Porter idea), you also should have references for enabling processes in Finance, HR, IT and… possibly process itself.
  • 21 4 Building block approach Source connects to supplier Deliver connects to customer Not all companies have make We can model as far up or down the supply chain as we view important (not limited to two tiers) Customers and / or suppliers can be internal or external
  • Point1 Spend the time in the Model Binder, finding a good cheat sheet AND articulating what each element means...Note also that we are NOT including Suppliers Supplier and Customer's Customer for th NEW example. Point2 Be sure to articulate that ALPHA is comprised of both M and D. Point3 Use a WHITE BOARD and model the actual activity of drawing before putting the diagram on the screen.
  • 9 9 9 9

Elcio Grassia Presidente do SCC LATAM Elcio Grassia Presidente do SCC LATAM Presentation Transcript

  • Supply-Chain Council & SCOR®
  • The World of Supply Chain Management
  • CFO language
    • Operating Cycle  DII + DSO
      • The number of days it takes to convert inventory & receivables to cash
    • Cash-to-cash Cycle  DII + DSO - DPO
      • The number of days expired between canceling a payable and generating cash
    • EVA  NOPAT – (CoC*Capital)
      • The amount by which earnings exceed or fall short of the required minimum rate of return that shareholders and lenders could get by investing in other securities of comparable
  • Return on assets Capital turnover $ Other Current Assets $ Inventory $ Accounts Receivable $ Current Assets $ Fixed Assets $ Total Assets $ Sales Profit margin % $ Sales $ COGS $ Variable Costs $ Fixed Costs $ Gross Margin $ Total Cost $ Operating Profit Supply Chain Management impacts all components ÷ - + - ÷ + + + EVA Tree  the CFO’s BOM $ Sales Balance Sheet P&L
  • SCM Environment
    • Costs (transportation, warehousing)
    • Flexibility
    • Delivery Quality/ Reliability/ Performance:
    • Inventory levels (RM, WIP, FG)
    • Forecast/ Planning Accuracy
    • Fulfillment/ Replenishment times
    • Lead time reduction
    • SC Manager problems:
    • To customers
    • From suppliers
    • Only “cost cutter”
    • Seen as the “problem”
    • Board room “enemies” (Sales & MKT)
  • SCM  The CFO’s perspective
    • CFO beginning to understand that effective SCM plays an integral role in financial success, but:
    • SCM is unsatisfactory to CFOs, because SC managers…
      • ... lack financial rigor
      • ... lag in management efficiency
      • ... do not provide clear visibility into SC financials
    • Therefore:
    • 34% have taken more of a leadership role in SCM
    • 49% think they will in 2 years
  • The Value of Metrics
  • A Bit of History: 1930-1950
    • Bank Robber “Slick Willie” Sutton
    • When asked why he robbed banks, Sutton simply replied
    • "Because that's where the money is."
  • Where the Money Is
    • Supply-Chain generally accounts between 60% and 90% of all company costs 1
    • A 2% improvement in process efficiency in SCM processes has 30,000% - 50,000% the impact of a 2% improvement in efficiency for… IT… HR… Finance… Sales…
    • Any surprise most Process Methodologies or techniques had their origin primarily in SCM?
      • Six-Sigma Lean BPR ERP ISO MRP-II TQM…
    1 Exclusive of Financial Services companies 2 Source: Hoovers 2006 Financial Data, Supply-Chain Council 2006 SCM Benchmark data on SCM cost for discrete & process industries Fortune-10 Company Supply-Chain Cost % Total Costs 2 GM Ford Conoco Wal-Mart Chevron IBM Exxon GE Citi 1 AIG 1 94% 93% 90% 90% 88% 77% 75% 63% 0% 0%
  • Value of Using SCOR 1 Hughes & Michels (1998) Transform your supply chain. Releasing value in business. London, UK Area Improvement Raw materials purchase cost 25% Cost of Distribution 35% Total resource deployed 50% Manufacturing space 50% Investment in Tooling 50% Order cycle time 60% New product development cycle 60% Inventory 70% Paperwork and Documentation 80% Quality Defects 100%
  • The Impact of SCOR®
    • Companies with SCOR process management.
    • Are over 780% more profitable on average than peers.
    • Exhibit greater share growth than leading market indicators.
  • Supply Chain Council
  • Supply-Chain Council
    • Independent, not-for-profit, global corporation with membership open to all companies and organizations interested in applying and advancing state-of-the-art supply chain management systems and practices:
      • Founded in 1996;
      • Over 600 global Members;
      • Cross-industry representation;
    • The Supply-Chain Council (SCC) has developed and endorsed the Supply Chain Operations Reference model (SCOR) as the cross-industry standard for supply chain management.
  • SCC – Global Reach
  • Latin America All Chapters SCC Affiliations AAIA – Automobile Aftermarket Industry Association APICS – Association for Operations Management RLA – Reverse Logistics Association WBENC – Women's Business Enterprise National Council
  • Group Description Aerospace & Defense SIG Special Interest Group to provide a source of knowledge, referral and research for members in the A&D industry Automotive SIG Special Interest Group brings together practitioners in the automotive supply chain to share practices and experiences CCOR Development Project team established to develop the framework, training and tools for the customer chain (sales & support processes) DCOR Development Project team established to develop the framework, training and tools for the design chain (product/process engineering processes) Steering Committee Technical Development and Steering Committee and Training and Education Committee. Elected positions. Energy, Oil & Gas SIG Industry working group focuses on the development and integration of models specifically for the Energy, Oil and Gas industry Reverse Logistics Industry working group reviews the adaptability of SCOR for the reverse logistics industry. A joint effort of SCC and RLA. Risk Management Project team to enhance SCOR to help organizations avoid/minimize cost, mitigate disruptions and thus offer competitive edge SCOR Convergence Project team established to integrate SCOR with other tools and methods - such as Six Sigma and Lean Talent Committee Hosted by Supply Chain Council, the Committee is industry funded, with all research and program results of the Committee's work made public
  • Alguns Membros Globais …
  • No Brasil...
  • E na América Latina...
  • SCC Models
  • What is a Reference Model? Quantify the operational performance of similar companies & establish internal targets based on “best-in-class” results Benchmarking Characterize the management practices & software solutions that result in “best-in-class” performance Best Practices Analysis Process Reference Model Capture the “as-is” state of a process and derive the desired “to-be” future state Business Process Reengineering Quantify the operational performance of similar companies and establish internal targets based on “best-in-class” results Characterize the management practices and software solutions that result in “best-in-class” performance Capture the “as-is”state of a process and derive the desired “to-be” future state
  • Process Models SCOR™ CCOR™ DCOR™ MCOR™ 2005 1996 2007 2008 Supply Chain Supply Chain Supply Chain Supply Chain Markets Marketing Sales Design HR IT Finance Process Suppliers Business Customers
  • SCOR Supply Chain Operations Reference model
  • Structured around 5 distinct management processes Supplier Customer Customer’s Customer Supplier’s Supplier Internal or External Internal or External Your Company SCOR Model Building blocks Processes Metrics Best Practices Enablers Plan Make Deliver Make Deliver Make Source Deliver Source Source Return Return Source Deliver Return Return Return Return Return Return
  • Contains 3 levels of detail Supply Chain Operations Reference model Out of scope Level Description Schematic Description 1 Top Level (Processes) Defines scope and contents of SCOR application – here you define the basis of competitive performance objectives 2 Configuration Level ( Process Categories) The Supply Chain is “custom-configured” here – around 30 “process categories”. Companies implement their operating stragegies thru a single and unique Supply Chain configuration 3 Process Element Level ( Decompose Processes)
    • Level 3 defines the Company ability to successfully compete within it’s chosen market. It consists of:
    • Process element definition
    • Process elements I/O info
    • Process performance metrics
    • Best practices if applicable
    • System ability to support best practices
    • Companies “adjust” their operating strategies on Level 3
    4 Implementation – process element decomposing Implementation of specific SCM practices. Level 4 defines practices used to reach competitive advantages and adapt to constant business environment changes Plan Deliver Make Source Return Return P3.1 Identify, Prioritize and Aggregate Production requirements P3.3 Balance Production Resources with Production Requirements P3.2 Identify, Assess and Aggregate Production Resources P3.4 Establish Detailed Production Plans
  • 5 Processes Customers Suppliers Deliver Make Source Plan Return Source Return Deliver Enable Execution Management Planning
  • Models Contents
  • Different Audiences
  • SCOR Mapping M2 S2 D2 S1 European RM Supplier Other RM Suppliers Plant ALPHA Local Distributors M1 S1 D1 D1 S1 D1 M2 S2 D2 S1 China Customs - POE China OEM Distribution n Centers S1 D1 Brazil Customs - POE S2 M1 D1 Fiscal Inspection - POE DC’s in other states S1 D1 S1 D1 S1 D1 S1 D1 M1.1 M1.2 M1.3 M1.4 M1.5 Production Planning Production Orders Production & Testing Packaging Unitization & protection M1.6 Release to dispatch SR1 DR1 SR1 SR1 DR1 DR1 P4 P3 P2 P1 Production Rules Mngmnt EM.1 Production Performance Mngmnt EM.2 Production Reports Mngmnt EM.3 WIP Mngmnt EM.4 Equipment & Utilities Mngmnt EM.5 Internal Transport Mngmnt EM.6 Production Relations Mngmnt EM.7 Claims & Internal Standards Mngmnt EM.9 P4 P3 P2 P1
  • Integrated set of performance metrics Supply Chain Operations Reference-model (SCOR) Level Description Schematic Metrics 1 Top Level (Processes) Level 1 metrics characterize performance of the supply chain as a whole , define the basis of competition, and enable the setting of business-wide performance targets 2 Configuration Level ( Process Categories) Level 2 metrics characterize performance of the configured processes 3 Process Element Level (Decompose Processes) Level 3 metrics provide details on performance issues and highlight potential corrective actions Balance Production Resources with Production Requirements Establish Detailed Production Plans Identify, Prioritize, and Aggregate Production Requirements Identify, Assess, and Aggregate Production Resources P3.1 P3.3 P3.4 P3.2 Plan Deliver Make Source Return Return
  • Level 1 Attributes & Metrics
  • Level 1 Attributes Definition
  • A balanced view of overall SCM performance SCOR Level 1 Metrics Customer-Facing Internal-Facing Delivery Performance Quality Flexibility and Responsiveness Cost Assets Delivery performance  Order fulfillment performance  Fill rate (Make-to-stock)  Order fulfillment lead time (ETO, MTO, CTO)  Perfect order fulfillment  Supply-chain response time  Production flexibility  Total SCM cost  Value-added productivity  Warranty cost or returns processing cost   Cash-to-cash cycle time  Inventory days of supply  Asset turns 
  • Performance and diagnostic metrics in Levels 2 and 3 SCOR Beats the DOW
    • % of order changes
    • # of end products/SKUs
    • Production volume
    • Inventory carrying cost
    Level 3 Diagnostic Metrics
    • Product volume by channel
    • # of channels
    • Supply-chain complexity
    • Planning cycles
    • Forecast accuracy
    • Obsolete/end of life inventory days of supply
    • Replan cycle
    • Order entry methods
    • Order entry modes
    Supply-Chain Management Practices Measures Level 2 Performance Metrics Supply-Chain Complexity Measures Supply-Chain Configuration Measures
    • Material acquisition costs
    • Source cycle time
    • Raw materials inventory days of supply
    • Purchased material by geography
    • % of purchasing spending by distance
    • Complexity
    • Supplier delivery perf.
    • Payment period
    • % Part numbers received with lead-time < 8 weeks
    • % unpenalized 30-day decrease
    • % purchasing spending by distance
    • Raw material DOS
    • Demand/supply planning costs
    • Supply-chain finance and MIS costs
    • Total inventory days of supply
    Source Plan Assets Delivery Performance/ Quality Cost Flexibility & Responsiveness
  • Performance and diagnostic metrics in Levels 2 and 3 SCOR Beats the DOW Continued
    • Value-add %
    • % Build-to-stock, % build-to-order
    • # of devices / SKUs
    • Product volume by type
    • # of orders, line items and shipments by channel
    • % parts returned
    • % re-returns
    • Delivery locations by geography
    • # of channels
    • Published delivery lead time
    • # of faultless invoices
    • Manufacturing process steps by geography
    • Fill rates
    • Order management costs
    • Delivery performance
    • Order fulfillment lead time
    • Forecast accuracy by channel
    • Finished goods inventory levels
    • Make cycle time
    • Capacity utilization
    Supply-Chain Management Practices Measures Supply-Chain Complexity Measures Supply-Chain Configuration Measures Deliver Make Assets Cost Flexibility & Responsiveness Delivery Performance/ Quality Level 3 Diagnostic Metrics Level 2 Performance Metrics
  • Different metrics are important at each level SCOR Beats the DOW
    • Business requirements (share, cash flow, operating income)
    • Customer, product and performance priorities
    • Operating performance measures, benchmarks and targets
    Basis of Competition SCOR Level 1 Configuration
    • Supply, manufacturing & distribution asset constraints / return considerations
    • Product volume & complexity considerations
    • Channel constraints & requirements
    • Technology constraints & enablers
    Supply-Chain Configuration SCOR Level 2 Operations Strategy
    • Performance targets
    • Process
    • Practices
    • Enabling software
    Performance Levels, Practices & Systems Selection SCOR Level 3
    • Time-phase targets
    • Phased implementation plans
    • Program governance
    • Detailed implementation
    Supply-Chain Processes & Systems Implementation SCOR Level 4 Intra Company Supply-Chain improvements Inter Company Intra Company Process, Practice & System Configuration Elements Intra Company Inter Company Inter Company
  • Learning SCOR
  • The SCOR Practitioner Lifecycle How do I use it? Pilot What is SCOR? Learn How do I grow it? Deploy How do I refine it? Mature What’s Next? Renew
  • SCOR Curriculum Proposed/Future SCC offering Available Late 2007/2008 Learn Pilot Deploy Mature Renew Basis Training SCOR Framework SCOR Implementation SCOR Team SCOR and Six-Sigma/Lean DCOR Executive Track Executive SCOR Framework Executive SCOR Implementation Executive SCOR Team Executive SCOR Business Benefit Executive SCOR Business Trends Advanced Track SCOR Adviser Advanced SCOR Modeling SCOR for PBL SCOR for Risk Management Advanced SCOR Analysis SCOR for IT SCOR Practices Benchmarking Advanced SCOR Workshop SCOR for HR SCOR for M&A Rapid SCOR SCOR for Industries SCOR for ISO9000 SCOR Practicum SCOR for Services SCOR for SOX404 SCOR Financials SCOR for Management
  • Andres von Simson – LATAM Chapter Administration [email_address] Further info  www.supply-chain.org Elcio Grassia – LATAM Chapter Chair [email_address]