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Introduction to GreenSCOR

Introduction to GreenSCOR. Introducing Environmental Considerations to the SCOR Model. Supply Chain Operations Reference Model (SCOR) The Primary Use of SCOR. The Primary Use of SCOR: To describe, measure and evaluate supply chain configurations. SCOR contains:

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Introduction to GreenSCOR

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  1. Introduction to GreenSCOR Introducing Environmental Considerations to the SCOR Model

  2. Supply Chain Operations Reference Model (SCOR)The Primary Use of SCOR The Primary Use of SCOR: To describe, measure and evaluate supply chain configurations. SCOR contains: Standard descriptions of management processes A framework of relationships among the standard processes Standard metrics to measure process performance Management practices that produce best-in-class performance Enables the companies to: Evaluate and compare their performances with other companies effectively Identify and pursue specific competitive advantages Identify software tools best suited to their specific process requirements

  3. Supply Chain Operations Reference Model (SCOR) SCOR: Integrates Business Process Reengineering, Benchmarking, and Process Measurement into a cross-functional framework. Capture the “as-is” state of a process and derive the desired “to-be” future state 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 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 Business Process Reengineering Benchmarking Best Practices Analysis Process Reference Model

  4. Supply Chain Operations Reference Model (SCOR):Basic Management Processes Plan-Source-Make-Deliver-Return Plan Source Make Deliver Source Make Deliver Source Deliver Make Deliver Source Return Return Return Return Return Return Supplier’sSupplier Customer’s Customer Customer (Internal or External) Supplier (Internal or External) Your Company Plan-Source-Make-Deliver-Return provide the organizational structure of the SCOR-model

  5. Scopes of Basic Management Processes Plan (Processes that balance aggregate demand and supply to develop a course of action which best meets sourcing, production and delivery requirements) Balance resources with requirements Establish/communicate plans for the whole supply chain Source (Processes that procure goods and services to meet planned or actual demand) Schedule deliveries (receive, verify, transfer) Make (Processes that transform product to a finished state to meet planned or actual demand) Schedule production Deliver (Processes that provide finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management) Warehouse management from receiving and picking product to load and ship product. Return (Processes associated with returning or receiving returned products) Manage Return business rules

  6. Level Level Comments Comments # # Description Description Schematic Schematic Level 1 defines the scope and content for the Supply chain Operations Reference-model. Here basis of competition performance targets are set. Level 1 defines the scope and content for the Supply chain Operations Reference-model. Here basis of competition performance targets are set. Top Level (Process Types) Top Level (Process Types) 1 1 Plan Plan Source Source Make Make Deliver Deliver Return Return Return Return Configuration Level (Process Categories) Configuration Level (Process Categories) A company’s supply chain can be “configured-to-order” at Level 2 from the core “process categories.” Companies implement their operations strategy through the configuration they choose for their supply chain. A company’s supply chain can be “configured-to-order” at Level 2 from the core “process categories.” Companies implement their operations strategy through the configuration they choose for their supply chain. 2 2 Process Element Level (Decompose Processes) Process Element Level (Decompose Processes) • Level 3 defines a company’s ability to compete successfully in its chosen markets, and consists of: • Process element definitions • Process element information inputs, and outputs • Process performance metrics • Best practices, where applicable • System capabilities required to support best practices • Systems/tools • Level 3 defines a company’s ability to compete successfully in its chosen markets, and consists of: • Process element definitions • Process element information inputs, and outputs • Process performance metrics • Best practices, where applicable • System capabilities required to support best practices • Systems/tools 3 3 P1.1 Identify, Prioritize, and Aggregate Supply-Chain Requirements P1.1 Identify, Prioritize, and Aggregate Supply-Chain Requirements P1.3 Balance Production Resources with Supply-Chain Requirements P1.3 Balance Production Resources with Supply-Chain Requirements P1.4 Establish and Communicate Supply-Chain Plans P1.4 Establish and Communicate Supply-Chain Plans P1.2 Identify, Assess, and Aggregate Supply-Chain Requirements P1.2 Identify, Assess, and Aggregate Supply-Chain Requirements Implementation Level (Decompose Process Elements) Implementation Level (Decompose Process Elements) 4 4 Not in Scope Not in Scope Three Levels of Process Detail Supply Chain Operations Reference Model Companies implement specific supply-chain management practices at this level. Level 4 defines practices to achieve competitive advantage and to adapt to changing business conditions.

  7. Level Metrics Facts Level 1 Metrics are primary, high level measures that may cross multiple SCOR processes. They do not necessarily relate to a SCOR Level 1 process (Plan-Source-Make-Deliver-Return). There is hierarchy among the metrics in different levels. Level 1 Metrics are created from lower level calculations (Level 2 metrics) Level 2 Metrics: Associated with a narrower subset of processes. Example: Metric related with Delivery Performance: Total number of products delivered on time and in full based on a commit date. Metric related with Production: Ratio Of Actual To Theoretical Cycle Time

  8. Level 2 ProcessCategories P1: Plan Supply Chain P2-P5: Plan SCOR Process S1: Source Stocked Product S3: Source Engineer-to-Order Product S2: Source Make-to-Order Product M1: Make-to-Stock M2: Make-to-Order M3: Engineer-to-Order D1: Deliver Stocked Product D2: Deliver Make-to-Order Product D3: Deliver Engineer-to-Order Product D4: Deliver Retail Product (New in Version 6.0) SR1/DR1: Return Defective Product (Source Return/Deliver Return) SR2: Source Return MRO Product (Maintenance, Repair and Overhaul) DR2: Deliver Return MRO Product SR3/DR3: Return Excess Product (Source Return/Deliver Return) EP, ES, EM, ED, ER: Enable corresponding SCOR Processes

  9. Some Graphical Tools: 1st Step in configuring a SC: Illustrate physical layout, material flow and place Level 2 execution process categories to describe activities at each location.

  10. SCOR Process Maps 2nd Step: Create the SCORProcess Maps: Place planning process categories, using dashed lines to show links with execution processes

  11. Software Package for Modeling SCOR: ARIS EasySCOR The ARIS Toolset and ARIS Easy Design are process modeling tools. The ARIS Toolset is a BPR tool, Easy Design is used for process capture. The EasySCOR Modeler is a software package that includes the ARIS Easy Design modeling kit and the SCOR model in ARIS format. ARIS EasySCOR consists of process models that describe the SCOR levels 1 to 3. Implementation level, level 4 is not included.

  12. The SCC has introduced environmental management elements into SCOR 9.0. • Environmental management is a growing concern in industry. • Specifically, the “green supply chain” • SCC leveraged previous research to introduce “green” into SCOR • Processes • Best Practices • Metrics • As a proven Supply Chain Management model, SCOR is ideal as a Green Supply Chain tool.

  13. Green SCM integrates environmental and supply chain management. Green Supply Chain Management Green SCM recognizes the disproportionate environmental impact of supply chain processes in an organization. Supply ChainManagement EnvironmentalManagement Green Supply Chain Management

  14. Green SCM leverages the role of the environment in SC value creation. Environmental Value Drivers Tangible Outcomes Green Supply Chain Programs Profitability Supply Chain Value Asset Utilization Service Level Employee Satisfaction Customer Stakeholder Interests Environmental Sustainability Reputation Continuity Community Quality of Life Alliances Technology Intangible Value Drivers Source: Forging New Links, GEMI, 2004

  15. The product life cycle is the basis of green supply chain management. Designing the supply chain concurrently with the product is a supply chain management best practice. Supply Chain in the Environmental Life Cycle Design RawMaterialExtraction Retail/ConsumerUse Concept Transport Manufacture Transport Transport Disposal Typical Supply Chain Scope

  16. Now, GSC programs are moving from compliance to value creation. Raise Productivity Enhance Relations Support Innovation Enable Growth Assure Compliance Minimize Risk Maintain Health Protect the Environment Environmental, Safety, and Health Business Contributions Traditional Cost Avoidance Emerging Value Creation Source: Forging New Links, GEMI, 2004

  17. GreenSCOR was created to add environmental considerations to SCOR. • 2002—ADUSD L&MR (SCI) created GreenSCOR to understand the relationship between environmental and supply chain management. • 2002-2007—Greater community saw value of the approach • GreenSCOR won the SCC 2003 Award for Academic Excellence • 2008—GreenSCOR elements added into SCOR 9.0 as integral part of model. ADUSD L&MR (SCI)= Assistant Deputy Under Secretary of Defense, Logistics and Materiel Readiness, Supply Chain Integration

  18. GreenSCOR is a modification of the SCOR model that includes environmental elements. EnvironmentalManagement SCOR Model GreenSCOR Model GreenSCOR Development GreenSCOR modifies the existing SCOR structure to include environmental processes, metrics, and best practices. GreenSCOR maintains the integrity of the current SCOR model by adding to the existing elements.

  19. GreenSCOR focuses on the impacts of SCM in each stage of the product life cycle. GreenSCOR Concept Stage RawMaterialExtraction Retail/ConsumerUse Manufacture Disposal P P P P Green- SCOR Mapping S D S M D S D S D

  20. GreenSCOR, integrated with SCOR 9.0, adds Best Practices, Metrics, and Processes to SCOR. • Best Practices to green the supply chain (examples) • Collaborate with partners on environmental issues • Minimize fuel/energy consumption • Minimize and reuse packaging materials • Metrics to measure the effects of greening (examples) • Carbon and Environmental Footprint (proposed) • Energy Costs • Units per Shipment • Processes to capture waste management • M1.7, M2.7, M3.8—Waste Disposal EMS=Environmental Management System

  21. Environmental Best Practices were added throughout SCOR Example Environmental Best Practices EMS=Environmental Management System

  22. Environmental metrics were added throughout SCOR Example Environmental Metrics EMS=Environmental Management System

  23. Proposed environmental footprint metrics leverage SCOR for environmental accounting. • Environmental accounting is a current business concern. • Carbon and greenhouse gas emissions • Other environmental impacts • Currently, there is not an agreed upon framework for measuring the environmental footprint of the supply chain. • SCOR provides a framework for defining the supply chain network and measuring the environmental impacts.

  24. Environmental footprint measurement is five metrics repeated at all three SCOR levels. Proposed Environmental Footprint Metrics

  25. Environmental footprint metrics are summed across SCOR levels, like the existing Cost metrics. M2.6 M2.5 M2.4 M2.3 M2.2 M2.1 Produce and Test Issue Product Schedule production Activities Stage Product Release Product to Deliver Package Proposed Environmental Footprint Hierarchy Total Carbon Footprint Air+Liquid+Solid-% Recyc=Total Environmental Footprint Level 1 Tier 3 Tier 2 Tier 1 Your Company Customer M1 M1 S1 D1 S1 D1 D1 S1 M2 D2 S2 Level 2 M1 M1 S1 D1 S1 D1 Carbon Air Liquid Solid % Recyc Level 3 Carbon Air Liquid Solid % Recyc Carbon Air Liquid Solid % Recyc Carbon Air Liquid Solid % Recyc Carbon Air Liquid Solid % Recyc Carbon Air Liquid Solid % Recyc Carbon Air Liquid Solid % Recyc

  26. A Waste Disposal process was added to make to capture waste management M1: Make-to-Stock M1.1 M1.2 M1.3 M1.4 M1.5 M1.6 Schedule Production Activities Issue Product Produce and Test Package Stage Product Release Product to Deliver M1.7 Waste Disposal “Activities associated with collecting and managing waste produced during the produce and test process including scrap material and non-conforming product.”

  27. Green additions make SCOR a tool for managing environmental impacts of the supply chain. • Processes to define the scope of supply chain operations and supply chain roles. • Metrics for assessing and benchmarking the total environmental footprint of the supply chain. • Best Practices for reducing the environmental footprint of the supply chain. The GreenSCOR framework is a tool for structuring and communicating environmental supply chain management programs to get faster, repeatable, collaborative results

  28. Questions?

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