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129 Cards in this Set

  • Front
  • Back
What are make to stock products in SCOR?
Existing Products and they are plan driven
What are make to order products in SCOR?
Configured materials and are order driven. Specific to one customer and the order can be traced back to that one customer.
What are engineer to order products in SCOR?
New materials and are intent driven. Customer wants a completely different product than what's available.
What are the six SCOR processes?
Plan, Source, Make, Deliver, Return, Enable
Which three SCOR processes are related to execution?
Source, Make, Deliver
What is the Source process?
Source centers on inbound materials. Order Delivery, receipt, & transfer of raw material items, subassemblies, products and/or services.
What are some key processes comprehended in the Source process?
Schedule product deliveries; receive, inspect & hold materials; Issue materials to make or deliver processes; Supplier/Vendor agreements.
What is Source Stocked to Product?
The ordering and receiving of existing products, components and services from existing contracts, based on requirement plans.
What is Source Make to Order?
The ordering and receiving of existing products, components and services for a unique and identified customer order.
What is Source Engineer to Order?
The selection, ordering and receiving of specialized products or services that are designed and/or built based on the requirements or specifications of a particular customer order or contract.
What is the objective of the Make process?
The process of adding value to products through mixing, separating, forming, machining, and chemical processes.
What are some key processes of the Make process?
Schedule production, request and receive material from Source and/or Make processes;
Manufacture, assemble/disassemble and test product, package, hold/release product;
Managing product quality and engineering changes;
Managing facilities and equipment, production status workflow and capacity management;
Manage Work-In-Process (WIP) inventories
What is the Make to Stock configuration?
The making of standard products and services. Planning (Plan) processes determine what, how much and when to make.
What is the Make to Order configuration?
The making of standard or configurable products and services for unique customer orders. Customer orders determine what, how much and when to make. Customer orders can be traced throughout the Make process.
What is the Engineer to Order configuration?
The making of specialized products or services that are fully or partially designed and made based on the unique requirements and specifications of a particular customer order or contract. Customer orders and specifications can be traced throughout the Make process.
What is the objective of the Deliver process?
Perform customer-facing order management and order fulfillment activities including outbound logistics.
What are some key processes of Deliver?
Product, service and price quotations;
Order entry and maintenance;
Order consolidation, picking, packing, labeling and shipping;
Import/export documentation;
Customer delivery and installation;
Logistics and Freight Management;
Manage Finished Goods inventories
What is Deliver to Stocked Product?
The delivery of standard products (and services) that are maintained in a finished goods state prior to the receipt of a customer order.
What is Deliver Make to Order Product?
The delivery of standard or configurable products and services that are obtained (Source or Make) for a customer order.
What is Deliver Engineer to Order Product?
The delivery of specialized products and services that have been fully or partially designed in negotiation and based on requirements from a customer order and customer provided specifications
What is Deliver to Retail Product?
The delivery of standards goods in a retail store
What are the two control processes?
Plan and Enable
What does planning do?
Balances the need for resources, materials, capacity, etc. with the availability of these resources. This includes prioritization if needed.
What does enable do?
Monitor compliance, deliver information from other process areas and highlight dependencies on these other process areas. Also supports maintenance relationships with suppliers.
What is the objective of Plan?
The process of determining requirements and corrective actions to achieve supply chain objectives
Also included are S&OP, MRP, and Forecasting.
What are some key processes for Plan?
Supply chain revenue planning/forecasting;
Materials requirement planning;
Factory, repair, maintenance facilities capacity planning;
Distribution requirements planning;
Manage planning parameters
What is Plan Supply Chain?
Planning overall supply chain targets. Plan Supply Chain drives and coordinates P2, P3, P4 and P5 plans (Compare to “Revenue plan”, or “Budget” in certain industries)
What is Plan Source?
Planning of material ordering and receiving activities. Plan Source calculates which materials need to be available when to support the production plan (P3) and/or the delivery plan (P4). (Compare to “Materials Requirements Plan”)
What is Plan Make?
Planning of production and/or MRO activities. Plan Make ensures the production resources (capacity) are in place as needed and may generate production orders. (Compare to “Production Plan”)
What is Plan Deliver?
Planning of order management, material handling and transportation activities. Plan Deliver ensures resources are in place as needed and may generate or recalculate shipping dates based on material availability. (Compare to “Shipment Plan”, “Load Planning”)
What is Plan Return?
Planning of the reverse logistics shipping and material handling capacity. Note: This does not include the maintenance, repair or overhaul activity planning as those are Make processes.
What is the objective of enable?
The Enable processes are five groups of processes under Plan, Source, Make , Deliver and Return with 3 distinct types of objectives:
Manage process performance
Manage process control data
Manage process relationships
What are some key processes of enable?
Managing business rules and monitoring adherence; Measuring supply chain performance and determine corrective action; Managing risk and environmental impact; Managing the supply chain network and facilities
What is Enable Plan?
Performance, data and relationship management processes for all types of planning processes: Plan Supply Chain, Plan Source, Plan Make, Plan Deliver and Plan Return. Examples: maintain planning cycles, monitor planning accuracy, manage supply chain risks.
What is Enable Source?
Performance, data and relationship management processes for all receiving activities and supplier related processes. Examples: Monitor supplier performance, maintain what is sourced where.
What is Enable Make?
Enable management processes for manufacturing, repair and overhaul type processes. Examples: BOM maintenance, preventive equipment maintenance, monitoring capacity utilization/shortage.
What is Enable Deliver?
Performance, data and relationship management processes for all order management, warehouse and distribution activities and forwarder related processes. Examples: Monitor order management and forwarder performance, maintain a distribution network, managing risk.
What is Enable Return?
Enable management processes for all types of reverse logistics processes: MRO returns, defective product returns and excess inventory returns. Examples: Maintain return approval rules, Maintain issue tracking software, maintain a return distribution network.
What is the objective of the Return Process?
Moving material from customer back through supply chain to address defects in product, ordering, or manufacturing, or to perform upkeep activities.
What are some key processes of Return?
Identification of the need to return a product or asset;
Requesting and issuing return authorization;
Inspection and disposition decision-making;
Transfer/Disposition of product or asset;
Managing return transportation capacity;
Managing returned material inventories
What is Return Defective Products?
The return of products because the product is defective, the wrong product was ordered or shipped.
What is Return Maintenance, Repair & Overhaul (MRO)?
The return of products or assets to perform preventative maintenance, (end-of-life) overhaul or repairs due to breakage/aging with use
What is Return Excess Product?
The return of excess inventories and inventories of product which will be retired (end-of-life excess). The product is new and in original packaging.
Why do we model?
Different Reasons. Strategy Development
Merger, Acquisition or Divestiture (Companies or Supply Chains)
Process optimization and Re-engineering
Standardization, Streamlining and Management alignment
New business start-up (Company and Supply Chain start-ups)
Benchmarking
Process Outsourcing
Software implementation (ERP, PLM, QC)
Workflow & Service Oriented Architecture
What types of models do SCOR use?
Business Scope Diagram;
Geographic Map
Thread Diagram
Workflow or Process Models
What is the business scope diagram?
Set the scope for a project or organization
What is the geographic map?
Describes material flows in a geographic context; Highlights node complexity or redundancy
What is the thread diagram?
Material flow diagram, focused on level 2 process connectivity; Describes high level process complexity or redundancy
What are Workflow or Process Models?
Information, material and work flow diagram at level 3 (or beyond); Highlights information, people and system interaction issues
What is a node?
represents a logical or geographic entity in a supply chain. Examples: Warehouse, Factory, Store
What is a Performance Attribute in SCOR?
a characteristic to describe a strategy. Performance attributes serve as classification for KPIs and metrics
What is a Key Performance Indicator in SCOR?
a metric that is representative to measure the overall performance or state-of-affairs
What is a metric?
a standard for measurement
What is a measurement?
an observation that reduces the amount of uncertainty about the value of a quantity
What are the five performance attributes in SCOR?
Reliability (RL); Responsiveness (RS); Agility(AG); Cost (CO); Assets (AM)
What is Reliability (RL)?
The ability to deliver, on-time, complete, in the right condition, packaging and documentation to the right customer. Consistently getting the orders right, product meets quality requirements
What is Responsiveness (RS)?
The speed at which products and services are provided. The consistent speed of providing products/services to customers
What is Agility (AG)?
The ability to respond to changes int he market (external influences). The ability to change (the supply-chain) in order to support changing (market) conditions
What is another term for AG?
Flexibility
What is Cost (CO)?
The cost associated with managing and operating the supply chain
What is Assets (AM)?
The effectiveness in managing the supply chain's assets in support of fulfillment. The effectiveness in managing assets in support of demand satisfaction
What are Level 1 metrics?
Strategic metrics a.k.a. Key Performance Indicators
What do Level 1 metrics do?
Measure overall supply chain performance; health of the supply chain
Set the scope and objectives for a supply chain, project or organization
Translate a business problem or strategy into something measurable
Establish the priority or priorities for organization
What are Level 2 metrics?
Diagnostic metrics
What do Level 2 metrics do?
Measure a part of the supply chain and/or a part of the strategic metric
Provide direction to where problems originate
Caution: Level 2 metrics do not by definition add up to a level 1 metric
What are the KPIs for RL?
RL.1.1 Perfect Order Fulfillment
What are the KPIs for RS?
RS.1.1 Order Fulfillment Cycle Time
What are the KPIs for AG?
AG.1.1 Upside Supply Chain Flexibility
AG.1.2 Supply Chain Upside Adaptability
AG.1.3 Supply Chain Downside Adaptability
What are the KPIs for CO?
CO.1.1 Supply Chain Management Cost
CO.1.2 Cost of Goods Sold
What are the KPIs for AM?
AM.1.1 Cash-to-Cash Cycle Time
AM.1.2 Return on Supply Chain Fixed Assets
AM.1.3 Return on Working Capital
Perfect Order Fulfillment is
The percentage of orders delivered on-time, in full. Components of perfect include all items and quantities on-time, using the customer’s definition of on-time, complete documentation and in the right condition
What is the calculation for Perfect Order Fulfillment?
[Total Perfect Orders] / [Total Number of Orders]
What are some diagnostic metrics for Perfect Order Fulfillment?
RL.2.1 % Orders Delivered in Full
RL.2.4 Perfect Condition
RL.3.19 % Orders Received Defect Free
RL.3.24 % Orders Received Damage Free
What is important to remember about the perfect order fulfillment metric?
If one element of the perfect order is missing, then the order is not perfect.
What Performance Attribute does Perfect Order Fulfillment belong to?
RL or Reliability
Order Fulfillment Cycle Time is
The average actual cycle time consistently achieved to fulfill customer orders. The actual cycle time starts with the receipt of the order and ends with the customer acceptance of the delivery. The unit of measure is days.
How is Order Fulfillment Cycle Time calculated?
[Sum Actual Cycle Times For All Orders Delivered] / [Total Number Of Orders Delivered]
What are some diagnostic metrics for responsiveness?
RS.2.2 Make Cycle Time
RS.2.3 Deliver Cycle Time
RS.3.96 Pick Product Cycle Time
What is important to remember about Order Fulfillment Cycle Time?
That it includes dwell time. Dwell time is the time no value add activities are performed on the order or product, imposed by customer requirements.
What performance attribute does Order Fulfillment Cycle Time?
RS or Responsiveness
Upside Supply Chain Flexibility is
The number of days required to achieve an unplanned sustainable 20% increase in quantities delivered. Seasonality is not considered unplanned/unforeseen. The unit of measure for flexibility is calendar days.
How is Upside Supply Chain Flexibility calculated?
The larger of the number of days required to achieve sustainable increase for Source, Make and Deliver
What are some diagnostic metrics for Upside Supply Chain Flexibility?
AG.2.1 Upside Source Flexibility
AG.2.2 Upside Make Flexibility
AG.2.3 Upside Deliver Flexibility
What is important to remember about Upside Supply Chain Flexibility?
This metric addresses a company's ability to respond to unplanned increase in demand. Flexibility indicates how long it takes to respond.
Each supply chain should be measured separately. Aggregation of data of multiple supply chains is not really a valuable metric.
What performance attribute does Upside Supply Chain Flexibility belong to?
AG or Agility
Supply Chain Upside Adaptability/
Supply Chain Downside Adaptability is defined as
The sustainable reduction and increase or decrease in product quantities that can be achieved in 30 days (without backorders, cost penalties or inventory). Adaptability is expressed as a percentage of current run-rate.
How are Supply Chain Upside Adaptability/
Supply Chain Downside Adaptability calculated?
Upside: Percentage sustainable increase
Downside: Percentage sustainable reduction
What are some diagnostic metrics for Supply Chain Upside Adaptability/
Supply Chain Downside Adaptability?
AG.2.1 Upside Source Adaptability
AG.2.12 Downside Make Adaptability
AG.3.47 Direct Labor Availability
What performance attribute does Supply Chain Upside Adaptability/
Supply Chain Downside Adaptability belong to?
AG or Agility
What is important to remember about Supply Chain Upside Adaptability/
Supply Chain Downside Adaptability?
This metric addresses a company's ability to respond to unplanned increase in demand. Agility indicates how long it takes to respond.
Each supply chain should be measured separately. Aggregation of data of multiple supply chains is not really a valuable metric (unless they are dependent
Total Supply Chain Management Cost (TSCMC) is defined as
All direct and indirect expenses associated with the operation of supply chain business processes across the supply chain. Traditionally Total Supply Chain Management Cost is measured as a percentage of revenue.
How is TSCMC calculated?
[Cost to Plan] + [Cost to Source] + [Cost to Deliver] + [Cost to Return]
What are some diagnostic metrics for TSCMC?
CO.2.1 Cost to Plan
CO.2.2 Cost to Source
CO.2.3 Cost to Deliver
CO.2.4 Cost to Return
What is important to remember about TSCMC?
This metric is internal focused (cost efficiencies).

The Cost to Make is captured in Cost of Goods Sold (COGS), however there can be overlap between COGS and SCMC, so watch carefully for the possibility of double counting. To find some costs in Make, both COGS and SCMC are needed.
Enabling costs (such as IT) and inventory carrying costs are allocated to the process that they support. For example, the costs associated with a purchasing system would be allocated to Cost to Source and the costs associated with an order management system would be allocated to Cost to Deliver. The carrying costs associated with raw material would be associated with Cost to Source and finished goods to Cost to Deliver.
What performance attribute does TSCMS belong to?
CO or Cost
Cost of Goods Sold (COGS) is defined as
The cost associated with buying raw materials and producing finished goods. This cost includes direct costs (labor, materials) and indirect costs.
How is COGS calculated?
Direct Material + Direct Labor + Overhead
What are some diagnostic metrics for COGS?
CO.3.140 Direct Labor Cost
CO.3.141 Direct Material Cost
What is important to remember about COGS?
This metrics is internally focused and To find some costs in Make, both COGS and SCMC are needed.
What performance attribute does COGS belong to?
CO or Cost
Cash-to-Cash Cycle Time is defined as
The time it takes for cash invested in materials to flow back into the company after finished goods have been delivered to customers. The unit of measure for Cash-to-Cash Cycle Time is calendar days
How is Cash-to-Cash Cycle Time calculated?
[Inventory Days of Supply] + [Days Sales Outstanding] – [Days Payable Outstanding]
How is Inventory Days of Supply calculated?
Value of Inventory / (COGS / 365)
How is Days Sales Outstanding?
Accounts Receivable / (Total Revenue / 365)
How is Days Payable Outstanding?
Accounts Payable / (COGS / 365)
What are some diagnostic metrics for Cash to Cash Cycle Time?
AM.2.1 Days Sales Outstanding (DSO)
AM.2.2 Inventory Days of Supply (IDOS)
AM.2.3 Days Payable Outstanding (DPO)
What is important to remember about Cash to Cash Cycle Time?
This metric is internal focused (cash utilization). This is one of the most powerful company/supply-chain metrics. This because it indicates both lead time and inventory performance. Furthermore it can also highlight the influence of commercial terms and conditions on the overall company performance (T&C's are outside the supply chain).
What performance attribute does Cash to Cash cycle time belong?
AM or Assets
Return on Supply Chain Fixed Assets is defined as
The return an organization receives on its invested capital in supply chain fixed assets. This includes the fixed assets used to Plan, Source, Make, Deliver and Return. Examples of fixed assets include land, buildings, machinery, trucks
How is Return on Supply Chain Fixed Assets calculated?
([Supply Chain Revenue] – [COGS] – [Supply Chain Management Costs]) / [Supply Chain Fixed Assets]
What are some diagnostic metrics for Return on Supply Chain Fixed Assets?
AM.3.11 Deliver Fixed Assets Value
AM.3.18 Make Fixed Assets Value
AM.3.20 Plan Fixed Asset Value
AM.3.27 Source Fixed Assets Value
What is important to remember about Return on Supply Chain Fixed Assets?
This metric is internal focused (cash utilization). The focus is on supply specific fixed assets, such as buildings, machinery, fleet, automation (assuming it is considered a fixed asset and allocated to the supply chain), etc..
What performance attributed does Return on Supply Chain Fixed Assets belong?
AM or Asset
Return on Working Capital is defined as
Return on working capital assesses the magnitude of investment relative to a company’s working capital position verses the revenue generated from a supply chain. Components include accounts receivable, accounts payable, inventory, revenue, cost of goods sold and total supply chain management costs.
How is Return on Working Capital calculated?
([Supply Chain Revenue] – [COGS] – [Total Supply Chain Management Costs]) / [Working Capital]
What are some diagnostic metrics for Return on Working Capital?
AM.2.6 Payables Outstanding
AM.2.7 Sales Outstanding
AM.2.8 Inventory
What is important to remember about Return on Working Capital?
The Supply-Chain Revenue component is the operating revenue generated from a supply chain. This does not include non-operating revenue, such as leasing real estate, investments, court settlements, sale of office buildings, etc..
What performance attribute does Return on Working Capital belong?
AM or Asset
There are two types of data. What are they?
Observed and Recorded.
What is observed data?
obtain through interviews, error logs, audits and/or time-studies. For example the observed percentage of orders requiring additional customer setup in a system, percentage of manual repackaging events on the shipping dock.
What are recorded data?
obtain from transactional systems such as ERP (Enterprise Resource Planning), WMS (Warehouse Management System), financial systems, etc. For example: compare time-stamps in these systems to calculate cycle times.
Scorecard is defined as
A visual display of the most important information needed to achieve one or more objectives, consolidated and arranged in a single view
Balanced Scorecard is defined as
A scorecard providing metrics related to four organizational strategies: financial, customer, internal process, and employee learning and growth
SCORcard is defined as
A scorecard providing metrics related to five supply chain strategies: reliability, responsiveness, Agility, cost and assets
What is benchmarking?
Comparing an organization’s performance, products, practices, and/or services with those of other organizations that operate in the same or comparable industry
What are the three levels of benchmarking performance in SCOR?
Parity, Advantage and Superior
Parity describes what in benchmarking?
Being equal in performance; No real advantage over others
Advantage describes what in benchmarking?
Being in a favorable position; In a stronger position than others
Superior describes what in benchmarking?
Being of high rank or quality; Leading