Scor Model

Supply-Chain Council, 2003. All rights reserved.
The Supply-Chain Council has made every effort to assure the accuracy and usefulness of the information and metrics contained herein and is provided on an "AS IS" basis. The Supply-Chain Council makes no warranty, express or implied, of merchantability, fitness for a particular purpose, or accuracy. The SupplyChain Council makes no representation as to the results obtained or obtainable and disclaims all liability for direct, indirect, special or consequential damage, including lost profits, lost business or the like, whether based in contract, tort (including negligence), product liability or otherwise.
Copyright 2003 Supply-Chain Council, Inc.
Supply-Chain Operations Referencemodel Version 6.0

CONTENTS
Introduction PLAN SOURCE MAKE DELIVER RETURN Glossary
o o
1 11 55 92 133 197 241 242 259 276
Process Terms Metrics
o Appendix
Supply-Chain Operations Reference-model (SCOR) 6.0 Introduction

The Supply-Chain Operations Reference-model (SCOR) is the product of the Supply-Chain Council (SCC), an independent, not-for-profit, global corporation with membership open to all companies and organizations interested in applying and advancing the state-of-the-art in supply-chain management systems and practices. The SCOR-model captures the Councils consensus view of supply chain management. While much of the underlying content of the Model has been used by practitioners for many years, the SCOR-model provides a unique framework that links business process, metrics, best practices and technology features into a unified structure to support communication among supply chain partners and to improve the effectiveness of supply chain management and related supply chain improvement activities. The SCC was organized in 1996 and initially included 69 practitioner companies meeting in an informal consortium. Subsequently, the companies of the Council elected to form an independent not for profit trade association. The majority of the SCCs members are practitioners and represent a broad cross-section of industries, including manufacturers, distributors, and retailers. Equally important to the Council and the advancement of the SCOR-model are the technology suppliers and implementers, the academicians, and the government organizations that participate in Council activities and the development and maintenance of the Model. At the time of this release, the Council has approximately 800 members worldwide and has established international chapters in North America, Europe, Japan, Australia/New Zealand, Southeast Asia, and Southern Africa with additional requests for regional chapters pending. The Supply-Chain Council is interested in providing the widest possible dissemination of the SCOR-model. The wide-spread use of the Model results in better customer-supplier relationships, software systems that can better support members through the use of common measurements and terms, and the ability to rapidly recognize and adopt best practice no matter where it originates. SCC requests that all who use the SCOR-model provide attribution to the Supply-Chain Council. Additionally, members are encouraged to monitor the members section of the SCC website (www.supply-chain.org) to ensure that they are using the latest version of SCOR. This introduction is being provided to assist new users of the SCOR-model as well as experienced users in understanding and applying the Model to realize supply chain improvements. It is also provided to orient members to the changes between Version 6.0 and its predecessor. Version 6.0 of the SCOR-model is the sixth major revision since the Models introduction in 1996. Revisions of the Model are made when it is determined by Council members that changes should be made to facilitate the use of the Model in practice. In Version 6.0, there are three primary areas of change: 1) 2) The Deliver processes have been expanded to include a new Level 2 category, D4 Deliver Retail Product. This addition addresses the unique activities and sequence of activities associated with delivering a product (normally to a consumer). After over a year of use, R2 - Return of Maintenance, Repair and Overhaul (MRO) Product, has been rewritten. The processes associated with the Return of MRO products (SR2, MR2) have been updated for ease of use. The processes and their associated definitions have been clarified. In this version of the Model, only the SR2 and DR2 elements have been revised. In the next version of the Model the revisions are anticipated to extend to the SR1, DR1, SR3, and DR3 processes. eBusiness best practices have been included in the Make processes continuing an update of best practice, which was initiated in Version 5.0 of the Model.
1 April 2003
3)
Scope
The SCOR-model has been developed to describe the business activities associated with all phases of satisfying a customers demand. The Model itself contains several sections and is organized around the five primary management processes of Plan, Source, Make, Deliver, and Return (shown in Figure 1). By describing supply chains using these process building blocks, the Model can be used to describe supply chains that are very simple or very complex using a common set of definitions. As a result, disparate industries can be linked to describe the depth and breadth of virtually any supply chain. The Model has been able to successfully describe and provide a basis for supply chain improvement for global projects as well as site-specific projects.
Plan
Plan
Plan
Plan
Plan
Deliver Return
Source Return
Make
Deliver Return
Source Return
Make
Deliver Return
Source Return
Make
Deliver Return
Source Return
Supplier Suppliers Suppliers Supplier Supplier Internal or External
Customer
Your Company
Internal or External
Customers Customers Customer Customer
Figure 1 - SCOR is organized around five major management processes. It spans: all customer interactions (order entry through paid invoice), all physical material transactions (suppliers supplier to customers customer, including equipment, supplies, spare parts, bulk product, software, etc.) and all market interactions (from the understanding of aggregate demand to the fulfillment of each order). It does not attempt to describe every business process or activity. Specifically, the Model does not address: sales and marketing (demand generation), product development, research and development, and some elements of post-delivery customer support. It should be noted that the scope of the Model has changed and is anticipated to change based on Council member requirements. With the introduction of Return, the Model has been extended into the area of post-delivery customer support (although it does not include all activities in that area). As shown in Figure 2, the Model is designed and maintained to support supply chains of various complexities and across multiple industries. The Council has focused on three process levels and does not attempt to prescribe how a particular organization should conduct its business or tailor its systems / information flow. Every organization that implements supply chain improvements using the SCOR-model will need to extend the Model, at least to Level 4, using organization-specific processes, systems, and practice. The Model is silent in the areas of human resources, training, and quality assurance among others. Currently, it is the position of the Council that these horizontal activities are implicit in the Model and there are other highly qualified organizations that are chiefly concerned with how an organization should train, retain, organize, and conduct their quality programs. Just as the Council recognized the requirements for marketing and sales in commercial organizations, the Council is not minimizing the importance of these other activities.
Copyright 2003 Supply-Chain Council, Inc. 2 April 2003
SCOR Contains Three Levels of Process Detail
Supply-Chain Operations Reference-model
Level
# 1 Top Level (Process Types) Description
Schematic
Plan Source Make Deliver Return Return
Comments
Level 1 defines the scope and content for the Supply chain Operations Reference-model. Here basis of competition performance targets are set.
2
Configuratio n Level (Process Categories) A companys 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.
Process P1.1 Element Level (Decompose P1.2 Processes)

Identify, Prioritize, and Aggregate Supply-Chain Requirements Identify, Assess, and Aggregate Supply-Chain Requirements
P1.3
Balance Production Resources with SupplyChain Requirements
P1.4
Establish and Communicate Supply-Chain Plans
Level 3 defines a companys 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 Companies fine tune their Operations Strategy at Level 3.
Implementat ion Level Not Copyright 2003 Supply-Chain Council, Inc. (Decompose in Process Scope Elements)
Companies implement specific supply-chain management practices at April 2003 this level. Level 4 defines practices to achieve competitive advantage and to adapt to changing business conditions.
Figure 2 - SCOR is a hierarchical model with specific boundaries in regard to scope.
April 2003
The SCOR-model is a business process reference model as illustrated in Figure 3. That is, it is a Model that links process elements, metrics, best practice and the features associated with the execution of a supply chain in a unique format. The uniqueness and power of the Model and its successful implementation is chiefly derived from using these four elements together. It is important to note that this Model describes processes not functions. In other words, the Model focuses on the activity involved, not the person or organizational element that performs the activity.
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 -inclass results
Capture the a s-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 Characterize the management practices and software solutions that result in best -inclass performance
Figure 3 - SCOR is a business process reference model.
SCOR-model Structure
Besides the five basic management processes (Plan, Source, Make, Deliver, Return) that provide the organizational structure of the SCOR-model, it is useful to distinguish between the three process types in the Model: planning, execution, and enable (formerly infrastructure). A planning element is a process that aligns expected resources to meet expected demand requirements. Planning processes balance aggregated demand across a consistent planning horizon. Planning processes generally occur at regular intervals and can contribute to supply chain response time. Execution processes are triggered by planned or actual demand that changes the state of products. They include scheduling and sequencing, transforming materials and services, and moving product. Enable processes prepare, maintain, and manage information or relationships upon which planning and execution processes rely. A set of standard notation is used throughout the Model. P depicts Plan elements, S depicts Source elements, M depicts Make elements, D depicts Deliver elements, and R depicts Return elements. An E preceding any of the others (e.g., EP) indicates that the process element is an Enable element associated with the Planning or Execution element (in this case, EP would be an Enable Planning element). As indicated in Figure 2, the Model is hierarchical with three levels. P1.1 is a notation that indicates a third level process element. In this case, it is a Plan (P Level 1) element that is concerned with supply chain planning (1 Level 2) and is specific to identifying, prioritizing, and aggregating supply chain requirements (.1 Level 3). The SCOR-model contains 7 basic sections: Introduction, Plan, Source, Make, Deliver, Return and a Glossary. For modeling purposes, Return is documented in two locations Source and Deliver. Those Return processes that connect an organization with its supplier (i.e., the return of raw material) are
documented as Source Return activities. Those processes that connect an organization with its customer (i.e. the receipt of returned finished goods) are documented as Deliver Return activities. This preserves the concept that Source connects an organization with its suppliers and Deliver connects an organization with its customers. The Plan and Execution (Source, Make, Deliver, Return) sections are the heart of the Model while the Glossary provides a listing of the standard process and metrics terms that are used within the Model. Plan, Source, Make, Deliver, and Return sections are organized with a standard structure. At the beginning of each section, there are graphics that provide a visual representation of the process elements, their relationships to each other, and the inputs and outputs that are germane to each process element. Following the graphics are text tables that identify: 1) the standard name for the process element, 2) the notation for the process element, 3) SCCs standard definition for the process element, 4) performance attributes that are associated with the process element, 5) metrics that are associated with the performance attributes, 6) best practices that are associated with the process (candidates, not necessarily an exhaustive list), and features (generally technologically related) that can contribute to heightened performance of the process. Within the Source, Make and Deliver process elements, there is a common internal structure. The Model focuses on product environments: (1) Make-to-Stock, (2) Make-to-Order, and (3) Engineerto-Order and a new product environment (4) Retail Product. As a result, S1 denotes Source Make-toStock Product, S2 denotes Source Make-to-Order Product and S3 denotes Source Engineer-to-Order Product. This same convention is used for Make, i.e. M1 - Make-to-Stock, and Deliver, i.e. D2 - Deliver Make-to-Order Product. There is only one Retail Product process category and that is D4 - Deliver Retail Product. This convention was extended to Return in Version 5.0. R1 is the Return of Defective Product, R2 is the Return of Maintenance, Repair or Overhaul (MRO) Product, and R3 is the Return of Excess Product. Within each of the planning and execution sections and following the graphic and text descriptions, the associated enable elements are described using the same graphic and text formats. It is important to note, that like the process elements themselves, the metrics are intended to be hierarchical. Although not explicit in the Model, Level 1 metrics, as shown in Figure 4 are typically assigned to P1 (Plan Supply Chain) and are decomposed (Level 2 and diagnostic metrics) to the respective planning, execution and enable elements.
April 2003
Performance Attributes and Level 1 Metrics

Level 1 Metrics are primary, high level measures that may cross multiple SCOR processes. Level 1 Metrics do not necessarily relate to a SCOR Level 1 process (PLAN, SOURCE, MAKE, DELIVER, RETURN).
Performance Attribute
Delivery Performance Fill Rate Perfect Order Fulfillment Order Fulfillment Lead Time Supply-Chain Response Time Production Flexibility Total Supply Chain Management Cost Cost of Goods Sold Value-Added Productivity Warranty Cost Or Returns Processing Cost Cash-To-Cash Cycle Time Inventory Days Of Supply Asset Turns
Customer-Facing Reliability Responsive- Flexibility ness
Internal-Facing Cost Assets
Figure 4 - SCOR Performance Attributes and Level 1 Metrics The metrics are used in conjunction with performance attributes. In Version 4.0 of the Model, the Performance Attributes were expanded from four (Supply Chain Reliability, Supply Chain Flexibility and Responsiveness, Supply Chain Costs, and Supply Chain Asset Management) to five (Supply Chain Reliability, Supply Chain Responsiveness, Supply Chain Flexibility, Supply Chain Costs, and Supply Chain Asset Management). Generally, the impact of this exercise was to associate cycle time measures with Responsiveness and to identify needed metrics in the area of Flexibility. The table in Figure 5 defines the performance attributes and indicates which Level 1 metrics are associated with each attribute. The Performance Attributes are characteristics of the supply chain that permit it to be analyzed and evaluated against other supply chains with competing strategies. Just as you would describe a physical object like a piece of lumber using standard characteristics (e.g., height, width, depth), a supply chain requires standard characteristics to be described. Without these characteristics it is extremely difficult to compare an organization that chooses to be the low-cost provider against an organization that chooses to compete on reliability and performance.
April 2003
Performance Attributes and Associated Level 1 Metrics

Performance Attribute Supply Chain Delivery Reliability Performance Attribute Definition The performance of the supply chain in delivering: the correct product, to the correct place, at the correct time, in the correct condition and packaging, in the correct quantity, with the correct documentation, to the correct customer. The velocity at which a supply chain provides products to the customer. The agility of a supply chain in responding to marketplace changes to gain or maintain competitive advantage. The costs associated with operating the supply chain. Level 1 Metric Delivery Performance Fill Rates Perfect Order Fulfillment
Supply Chain Responsiveness Supply Chain Flexibility Supply Chain Costs
Order Fulfillment Lead Times Supply Chain Response Time Production Flexibility Cost of Goods Sold Total Supply Chain Management Costs Value-Added Productivity Warranty / Returns Processing Costs Cash-to-Cash Cycle Time Inventory Days of Supply Asset Turns
Supply Chain Asset Management Efficiency
The effectiveness of an organization in managing assets to support demand satisfaction. This includes the management of all assets: fixed and working capital.
Figure 5 Definitions for SCOR Performance Attributes and which Level 1 metrics are associated with each attribute. Associated with the Performance Attributes are the Level 1 Metrics. These Level 1 Metrics are the calculations by which an implementing organization can measure how successful they are in achieving their desired positioning within the competitive market space. While these Performance Attributes are critical in implementing the Model, formal definitions were not previously included in the Model. In Version 4.0, standard Performance Attribute definitions were provided. In Version 5.0, the process tables associated with Level 2 and 3 activities were reconciled to reflect the separation of the flexibility and responsiveness attributes and to ensure that the metrics measured what they were intended to measure. First time users of the Model should be aware that the metrics in the Model are hierarchical just as the process elements are hierarchical. Level 1 Metrics are created from lower level calculations. (Level 1 Metrics are primary, high level measures that may cross multiple SCOR processes. Level 1 Metrics do not necessarily relate to a SCOR Level 1 process (PLAN, SOURCE, MAKE, DELIVER, RETURN). Lower level calculations (Level 2 metrics) are generally associated with a narrower subset of processes. For example, Delivery Performance is calculated as the total number of products delivered on time and in full based on a commit date. Additionally, even lower level metrics (diagnostics) are used to diagnose variations in performance against plan. For example, an organization may wish to examine the correlation between the request date and commit date.
April 2003
SCOR Version 6.0 Changes

There are a number of major changes within Version 6.0. This section will highlight those changes.
Process Changes
Retail A number of companies with business interests focused in the retail sector identified a requirement for the Model to be modified to better describe the unique sequence of activities in the final step of delivering a retail product to the consumer. After testing the use of Version 5.0 in the modeling of specific retail supply chains, the Retail Store Operations Project Team determined that a new process, D4 Deliver Retail Product would provide a significant enhancement to the Model by: 1) identifying the common processes in this end-point in the supply chain, 2) establishing a common language to describe these activities, and 3) beginning to develop the metrics to assess performance in this environment. It is important to note that D4 is not specific to the retail industry. A number of Council members in other industry sectors (defense, chemical, electronics, etc.) and with different service offerings (manufacturing, third party logistics, etc.) validated the findings of the Project Team and confirmed that these unique processes were not retail industry-specific. D4 - Deliver Retail Product, closely conforms to D1 - Deliver Stocked Product. The principal differences between D1 and D4 are the processes associated with selecting and routing carriers, picking product, and the consolidation of items into a final delivery that are not included in D1. Additionally, D4 includes a new process, Checkout, to capture the unique and specific activities in delivering a Retail Product. Some metrics are included in Version 6.0 for D4. There are a number of metrics that have been proposed for this new process element but consensus has not yet been reached on their definitions and calculations. It is anticipated that two new project teams, a retail pilot implementation team and a retail benchmarking team will complete these definitions and they will be included in the next version of the Model. Additionally, as part of the Retail Project Team efforts, the group identified a requirement for a new process in Return to capture the activities associated with the issuance of credit, refund, or exchange for a returned item. Coordination with the Return Project Team has led to the inclusion of this activity within the Return processes. Return Perhaps the most significant change in Version 4.0 and Version 5.0 was the inclusion of a new Level 1 Process element: Return. The addition of Return extended the scope of the Model into the area of post-delivery customer support. The expansion of the Model to include return activities was originally proposed by a Maintenance, Repair and Overhaul task force associated with the Aerospace and Defense Special Industry Group. The change reflected the Supply Chain Councils consensus recognition of the requirement for all organizations within a supply chain to put in place activities associated with the return of products for any reason. When Version 5.0 was released it was anticipated that the metrics, best practice and input/output sections of the Return processes would be expanded in the next release of the Model. Based on the use of Version 5.0, it was determined that there was a requirement for more precision in the Return language of the Model and how the activities were presented graphically. A Return Project was authorized with a charter to validate the existing process language and the graphic depiction of those processes. It was determined that the most efficient way to perform this validation was to first update one of the Return product categories and then use the updated category as a template for the other two. In this release of the Model SR2 and DR2 (MRO Product), have been updated. The graphics and the process descriptions have been updated and metrics, and inputs and outputs have been expanded. This work will be replicated for R1 and R3 in the next Model revision.
Additionally, the SR2 and DR2 processes have been completely separated and the flow has been revised to reinforce the building block modeling convention. This convention recognizes that there are activities that both the returning organization and the receiving organization are required to perform. As such, these activities are associated with Source (returning raw materials to the supplier) and Deliver (receiving returned finished goods from the customer).
eBusiness Best Practice Changes

The Council has long recognized the changing environment in the technology associated with the conduct of supply chain practice. Continuous review of technologys impact on supply chain practice has led to the conclusion that although the technology has been changing the processes remain the same. Best practice, however, that supports the processes is continuing to evolve and this Version of the Model completes a specific effort to update the best practice and technology sections of the process table to formally recognize proven eBusiness methodologies and technology.
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April 2003
The Technical Change Process

The SCOR Model is developed and maintained by the voluntary efforts of the Supply Chain Council members. Unlike other organizations with large technical staffs, the Council depends on the contributions of its members to actively advance the state of knowledge in supply chain by identifying required Model changes, researching and validating those changes, and developing the consensus regarding the proposed changes. SCOR Model versions prior to Version 6.0 were developed in a Committee structure that was focused on developing a stable, usable Model that could be used by experienced Council members as well as organizations newly introduced to the SCOR concept. In 2002, confident that the Models stability had been demonstrated with over 5 years of application experience by Council members, the Supply Chain Council shifted its technical development focus to specific implementation issues. The current technical development process relies on project teams composed of volunteers from Supply Chain Council member organizations. These project teams are short-lived groups that focus on specific Model challenges. It is expected that the normal term of a project team will be between 3-6 months. The change process and the coordination of the project team activities is led by the Technical Development Steering Committee (TDSC), a standing body elected by their peers in the Council. Changes to the Model are normally initiated by a Council member or members (but may be initiated by a Special Industry Group, an implementation project team, or the Chief Technical Officer). The primary mechanism for changing the Model is the Project Team. These self-organizing and self-directed teams propose areas of investigation, pursue and develop proposals for Model development and publish research results on the Council website. These activities are coordinated by the Supply Chain Councils Technical Development Steering Committee, which is comprised of elected representatives from the Councils membership. The Model change process is documented on the SCCs website. Essentially, the process consists of: 1) The Council issues a call for volunteers to work on an identified need for revision or change, 2) volunteers submit a Charter Proposal to the TDSC outlining the concept, scope of work, schedules and milestones, and identifying the volunteer resources, 3) the TDSC reviews the proposed Charter and provides feedback on the proposed changes to the initiating group, 4) upon approval, the Project Team crafts the details of their scope of work and determines whether it is likely their efforts will lead to a Model change (which generally includes the modification of SCOR processes, metrics, best practice, features and inputs and outputs) or a research report (white paper), 5) the Project Team proposes how to integrate proposed changes into the overall Model, 6) after final technical review the TDSC forwards the technical community recommendations for proposed changes/additions to the SCC Board of Directors, and 7) following the approval of the Board, the new Model is published for the SCC membership.
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July 2001
PLAN
12
April 2003
P1: Plan Supply Chain

(Customer) Customer Requirements (D1.3, D1.10) Order Backlog, Shipments (EP.3) Planning Data (EP.9) Revised Aggregate Forecast and Projections, Revised Business Assumptions
P1.1 Identify, Prioritize, and Aggregate Supply-Chain Requirements
(EP.1) Planning Decision Policies (EP.2) Supply Chain Performance Improvement Plan (EP.4) Inventory Strategy
P1.3 Balance Supply-Chain Resources with Supply-Chain Requirements
P1.4 Establish and Communicate Supply-Chain Plans
P1.2 Identify, Assess, and Aggregate SupplyChain Resources
Supply Chain Plans (P2.1, P3.1, P4.1) (Customer) (P2.4) Sourcing Plans (P3.4) Product MAKE Plans (P4.4) Delivery Plans (EP.3) Planning Data (EP.5, EP.6) Projected Internal and External Production Capacity (EP.5, EP.6) Revised Capital Plan (EP.5, EP.6) Outsource Plan (EP.8) Regulatory Requirements (Customer) Inventory
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Process Category: Plan Supply Chain Process Category Definition Performance Attributes
Reliability Responsiveness Flexibility Cost Assets
Process Number: P1
The development and establishment of courses of action over specified time periods that represent a projected appropriation of supply chain resources to meet supply chain requirements.
Metric
Forecast Accuracy Delivery Performance to Customer Request Date Fill Rate Cumulative Source/Make Cycle Time Re-plan Cycle Time Demand/Supply Planning Costs Sales per Employee Return on Assets Capacity Utilization Inventory Days of Supply Cash-to-cash Cycle Time
Best Practices
Supply/demand process is highly integrated from customer data gathering to order receipt, through production to supplier request Re-balancing of full-stream supply/demand on a daily basis, including Source-Make-Deliver resources and requirements from customers customer to suppliers supplier Capability to run simulated full-stream supply/demand balancing for what-if scenarios A change in the demand signal instantaneously reconfigures the production and supply plans Responsiveness and flexibility are emphasized by developing expertise in making business processes re-programmable, re-configurable and continuously changeable Supply chain is designed to have supply flexibility equal to demand volatility On-line visibility of all supply-chain demand requirements and resources, both currently available and committed (pegged) Tools support balanced decision making (eg, trade-off between service level and inventory investment) All functions and organizations understand their impact on supply/demand balancing, including sales, marketing, product management, manufacturing, customer, suppliers, materials management, and product development
Features
Integrated supply chain planning system with interfaces to all supply/demand data sources through public and private digitally enabled supply networks. Enterprise-wide planning system Customer Relationship Systems Supply chain modeling and visualization system Event-driven supply chain re-planning Integrated process modeling and software reconfiguration tools None Identified Enterprise resource planning system Customer relationship management system Supply chain planning optimization system None Identified
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April 2003
Process Element: Identify, Prioritize and Aggregate Supply Chain Requirements Process Category Definition
Process Element Number: P1.1
The process of identifying, aggregating, and prioritizing, all sources of demand for the integrated supply chain of a product or service at the appropriate level, horizon and interval. The sales forecast is comprised of the following concepts: sales forecasting level, time horizon, and time interval. The sales forecasting level is the focal point in the corporate hierarchy where the forecast is needed at the most generic level. i.e. Corporate forecast, Divisional forecast, Product Line forecast, SKU, SKU by Location. The sales forecasting time horizon generally coincides with the time frame of the plan for which it was developed i.e. Annual, 1-5 years, 1- 6 months, Daily, Weekly, Monthly. The sales forecasting time interval generally coincides with how often the plan is updated, i.e. Daily, Weekly, Monthly, and Quarterly.
Performance Attributes
Metric
Forecast Accuracy Intra-Manufacturing Replan Cycle Time None Identified Supply-Chain Finance Costs Forecasting and Demand MIS Costs None Identified
Best Practices
Collaboration among Supply Chain partners extends outwards to customers, spanning the supply chain. Planning Replanning Business Rules Plan Changes Collaboration among Operations Strategy Team
Features
None Identified
Digital links (XML Based, EDI. Etc.) among supply chain members. Joint Service Agreements (JSA) Push-based forecasts are replaced with customer replenishment pull-based signals Systems support accurate on-line visibility of full-stream demand requirements and priorities
Supply Chain Advanced Planning Systems Supply Chain Integration Systems Integration between supply chain advanced planning and ERP execution systems Supply Chain Capacity Planning Systems B2B Integration and Application Server Systems Real-time exchange of supply chain information between supply chain members Collaborative planning systems, Internet Trading Exchanges, B2B Integration and Application Server Systems Collaborative Planning Systems Standards Based (RosettaNet, eBXML, OAGI, etc) B2B integration tools and systems Advance Planning and Scheduling System Supply Chain Event Management Software
Inputs
(Customer) Customer Requirements Order Backlog, Shipments Planning Data Revised Aggregate Forecast and Projections, Revised Business Assumptions
Plan
EP.3 EP.9
Source
Make
Deliver
D1.3, D1.10
Outputs
Plan
Source
Make
Deliver
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April 2003
Process Element: Identify, Prioritize and Aggregate Supply Chain Resources Process Category Definition
The process of identifying, prioritizing, and aggregating, as a whole with constituent parts, all sources of supply that are required and add value in the supply chain of a product or service at the appropriate level, horizon and interval.
Reliability Responsiveness Flexibility Cost
Metric
None identified None identified Cumulative Source/Make Cycle Times Intra-Manufacturing Replan Cycle Time Planning Costs as a % of Total Supply Chain Costs Supply Chain Finance Costs Product Data (MIS) Management Costs Manage Finished Goods Data (MIS) Inventory Days of Supply Inventory Turns Return On Assets Cash-to-Cash Cycle Time
Assets
Best Practices
Collaborative Planning, Forecasting and Replenishment (CPFR)
Features
Business process modeling Workflow systems Collaboration Tools Advanced Planning Optimization Constraint based planning Integrated resource and material plan B2B Integration and Application Server Systems Collaborative Planning Systems Real-time exchange of supply chain information between supply chain members Collaborative planning systems, Internet Trading Exchanges. None Identified None Identified ABC and cost modeling.
Joint Service Agreements (JSA) Digital links (Internet, EDI. Etc.) among supply chain members. Lead times updated monthly. Categorize 100% of total inventory (active, usable, excess, obsolete) for appropriate action. Review product profitability.
Inputs
(Customer) Inventory Sourcing Plans Product MAKE Plans Delivery Plans Planning Data Projected Internal and External Production Capacity Revised Capital Plan Outsource Plan Regulatory Requirements
Plan
P2.4 P3.4 P4.4 EP.3 EP.5, EP.6 EP.5, EP.6 EP.5, EP.6 EP.8
Source
Make
Deliver
Outputs
Plan
Source
Make
Deliver
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April 2003
Process Element: Balance Supply-Chain Resources with Supply-Chain Requirements Process Category Definition
The process of identifying and measuring the gaps and imbalances between demand and resources in order to determine how to best resolve the variances through marketing, pricing, packaging, warehousing, outsource plans or some other action that will optimize service, flexibility, costs, assets, (or other supply chain inconsistencies) in an iterative and collaborative environment.
Metric
Delivery Performance to customer request date Fill Rate Perfect Order Fulfillment Order Fulfillment Lead Time Supply Chain Response Time Production Flexibility Total Supply-Chain Costs Value Added Productivity Inventory days of Supply Asset Turns Cash-to-Cash Cycle Time
Best Practices
Demand Planning, Demand Flow Leadership
Features
Software that provides multiple data models including the business rules and metrics for the entire supply chain planning process. Algorithms use the business rules and metrics as the drivers for the planning engine. Supply chain planning systems and communication technologies as well as newly defined standards that reflect the CPFR model and participate in the entire planning process. A data warehouse / data mart is the source of all planning (master) data, business rules and transaction data. Analytical tools enable the ongoing maintenance and improvement of the business rules based on actual data. Software that provides customer input and keeps the customer informed about the planning of the production and delivery process by managing all contacts and communication with the customer thorough all channels including internet and traditional sales and customer service channels.
Collaborative Planning, Forecasting and Replenishment (CPFR) Business Intelligence (BI)
Customer Relationship Management (CRM)
Inputs
Planning Decision Policies Supply Chain Performance Improvement Plan Inventory Strategy
Plan
EP.1 EP.2 EP.4
Source
Make
Deliver
Outputs
Plan
Source
Make
Deliver
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April 2003
Process Element: Establish and Communicate Supply Chain Plans Process Element Definition
The establishment and communication of courses of action over the appropriate time-defined (long-term, annual, monthly, weekly) planning horizon and interval, representing a projected appropriation of supply-chain resources to meet supply-chain requirements.
Metric
Perfect Order Fulfillment On-time Delivery None identified Cumulative Source/Make Cycle Time Total Supply Chain Response Time Supply Chain Finance Costs Inventory Carrying Costs Inventory Days of Supply (Inventory Turns) Return on Assets Cash-to-Cash Cycle time
Best Practices
Collaboration among Supply Chain partners extends outwards to suppliers and customers, spanning the supply chain. Planning Replanning Business Rules Plan Changes Collaboration among Operations Strategy Team
Features
Supply Chain Advanced Planning Systems Supply Chain Integration Systems Integration between supply chain Advanced Planning and ERP execution systems Supply Chain Capacity Planning Systems Supply Chain Advanced Planning Systems Supply Chain Integration Systems Integration between supply chain advanced planning and ERP execution systems Supply Chain Capacity Planning Systems Collaborative Planning Systems Real-time exchange of supply chain information between supply chain members Collaborative planning systems, Internet Trading Exchanges. Advance Planning and Scheduling System
Joint Service Agreements (JSA) Digital links (Internet, EDI. Etc.) connecting (or between) supply chain members. Systems support accurate on-line visibility of full-stream demand requirements and priorities as well as resource utilization and availability.
Inputs Outputs
Supply Chain Plans (Customer)
Plan Plan
P2.1, P3.1, P4.1
Source Source
Make Make
Deliver Deliver
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April 2003
P2: Plan Source

(P1.4) Establish and Communicate Supply Chain Plans (P3.4) Production Plans (P4.4) Delivery Plans (EP.3) Planning Data (EP.7) Item Master, Bill of Materials, Product Routings (D2.3, D3.3) Reserve Resources and Determine Delivery Date
P2.1
(EP.1) Planning Decision Policies
Identify, Prioritize, and Aggregate Product Requirements P2.3 Balance Product Resources with Product Requirements P2.2 Identify, Assess, and Aggregate Product Resources Sourcing Plans (P1.2, P4.2, S1.1, S2.1, S3.1, S3.3, D1.3, D2.3, DR2.4) P2.4 Establish Sourcing Plans
(Supplier) Product Availability (S1.4, S2.4, S3.6) Inventory Availability (S1.1, S2.1, S3.3) Sourced Product on Order (EP.3) Planning Data
19
April 2003
Process Category: Plan Source Process Category Definition Performance Attributes

Process Number: P2
The development and establishment of courses of action over specified time periods that represent a projected appropriation of material resources to meet supply chain requirements.
Metric
Supplier Delivery on-time Delivery Performance Supplier Fill Rate Cumulative Source Cycle Time Source Flexibility None identified None identified
Best Practices
EDI links integrate supplier resource information (inventory, capacity availability, etc.) with own resources Joint Service Agreements with suppliers define the levels of flexibility or resource upside available within stated lead times and agreed upon conditions Distinct and consistent linkages exist to ensure disruptions and opportunities in material resources are quickly and accurately communicated and acted upon All key participants in the supply chain, including strategic partners, have full visibility of the demand/supply plan
Features
Inter-company resource planning with EDI/Internet communication None Identified
Bi-directional Digital Links (XML, EDI, etc) or Internet procurement networks to customer service linkage
Supply Chain Event Management Systems
20
April 2003
Process Element: Identify, Prioritize, and Aggregate Product Requirements Process Element Definition Performance Attributes
The process of identifying, prioritizing, and considering, as a whole with constituent parts, all sources of demand for a product or service in the supply chain .
Metric
Forecast Accuracy None Identified None identified None Identified None Identified
Best Practices
The demand plan is updated frequently to reflect actual consumption or customer forecast information Capacity and supply constraints are balanced against demand during the planning cycle Master production scheduling reflects management of capacity and/or supply constraints Sales and operations agree to limits of short term flexibility
Features
None Identified None Identified
Inputs
Establish and Communicate Supply Chain Plans Production Plans Delivery Plans Planning Data Item Master, Bill of Materials, Product Routings Reserve Resources and Determine Delivery Date
Plan
P1.4 P3.4 P4.4 EP.3 EP.7
Source
Make
Deliver
D2.3, D3.3
Outputs
Plan
Source
Make
Deliver
21
April 2003
Process Element: Identify, Assess, and Aggregate Product Resources Process Element Definition Performance Attributes
The process of identifying, evaluating, and considering, as a whole with constituent parts, all material and other resources used to add value in the supply chain for a product or services.
Metric
None Identified None Identified None Identified None identified None Identified
Best Practices
Capacity and supply constraints identified during MPS schedule process are balanced against demand during the planning cycle Inventory is planned at the part level, based on supply and demand variability. Inventory performance is measured at the dollar and unit levels Inventory targets are reviewed and adjusted frequently Obsolete inventory is reviewed at the part number level
Features
Inputs
(Supplier) Product Availability Inventory Availability Sourced Product on Order Planning Data
Plan
Source
S1.4, S2.4, S3.6 S1.1, S2.1, S3.3
Make
Deliver
EP.3
Outputs
Plan
Source
Make
Deliver
22
April 2003
Process Element: Balance Product Resources with Product Requirements Process Element Definition Performance Attributes
The process of developing a time-phased course of action that commits resources to meet requirements.
Metric
Supplier on-time Delivery Performance None identified None identified Material planning costs None identified
Best Practices
Suppliers share responsibility for balancing supply and demand through Joint Service Agreements
Features
None Identified
Inputs
Planning Decision Policies
Plan
EP.1
Source Source
Make Make
Deliver Deliver
Outputs
Plan
23
April 2003
Process Element: Establish Sourcing Plans Process Element Definition
The establishment of courses of action over specified time periods that represent a projected appropriation of supply resources to meet sourcing plan requirements. Performance Attributes Metric
Flexibility and Responsiveness

Supplier Cycle Time

Supplier on-time Delivery Performance Supplier Fill Rate None identified None identified None identified None Identified
Best Practices
Digital Linkage (EDI, XML, etc.) is used to provide real-time demand information and handle routine transactions Blanket purchase orders cover period requirements
Features
Inputs Outputs
Sourcing Plans
Plan Plan
P1.2, P4.2
Source Source
S1.1, S2.1, S3.1, S3.3
Make Make
Deliver Deliver
D1.3, D2.3, DR2.4
24
April 2003
P3: Plan Make

(P1.4) Supply Chain Plans (P4.4) Delivery Plans (EP.3) Planning Data (EP.7) Item Master, Bill of Materials, Product Routings (D2.3, D3.3) Reserve Resources and Determine Delivery Date
P3.1 Identify, Prioritize, and Aggregate Production Requirements
P3.3
P3.4
P3.2
Balance Production Resources with Production Requirements
Establish Production Plans
Identify, Assess, and Aggregate Production Resources
Production Plans (P1.2, P2.1, P4.2, M1.1, M2.1, M3.2, D1.3, D2.3, D3.3)
(P2.4) Sourcing Plans (EP.3) Planning Data (M1.1, M2.1, M3.2) Production Schedule (M1.2, M2.2, M3.3) Inventory Availability
25
April 2003
Process Category: Plan Make Process Category Definition Performance Attributes

Process Element Number: P3
The development and establishment of courses of action over specified time periods that represent a projected appropriation of production resources to meet production requirements.
Metric
Production plan adherence None identified Cumulative Make Cycle Time None identified Total WIP Inventory DOS
Best Practices
Distinct and consistent linkages exist to ensure that disruptions and opportunities in production are quickly and accurately communicated and responses made
Features
Multi-plant supply/demand planning and execution
26
April 2003
Process Element: Identify, Prioritize, and Aggregate Production Requirements Process Element Definition Performance Attributes
The process of identifying, prioritizing, and considering as a whole with constituent parts, all sources of demand in the creation of a product or service.
Metric
Forecast Accuracy None identified None Identified None Identified None Identified
Best Practices
Consideration of suppliers material availability in companys supply resources (including suppliers production plans & capability, inventory, and delivery plans)
Features
Digital linkage to supplier quoting, planning, configuration and customer service applications
Inputs
Supply Chain Plans Delivery Plans Planning Data Item Master, Bill of Materials, Product Routings Reserve Resources and Determine Delivery Date
Plan
P1.4 P4.4 EP.3 EP.7
Source
Make
Deliver
D2.3, D3.3
Outputs
Plan
Source
Make
Deliver
27
April 2003
Process Element: Identify, Assess, and Aggregate Production Resources Process Element Definition Performance Attributes
The process of identifying, evaluating, and considering, as a whole with constituent parts, all things that add value in the creation of a product or performance of a service.
Metric
None Identified None Identified None Identified None Identified None Identified
Best Practices
Inventory targets are reviewed and adjusted frequently Obsolete inventory is reviewed at the part number level
Features
Inputs
Sourcing Plans Planning Data Production Schedule Inventory Availability
Plan
P2.4 EP.3
Source
Make
M1.1, M2.1, M3.2 M1.2, M2.2, M3.3
Deliver
Outputs
Plan
Source
Make
Deliver
28
April 2003
Process Element: Balance Production Resources with Product Creation Requirements Process Element Definition Performance Attributes
The process of developing a time-phased course of action that commits creation and operation resources to meet creation and operation requirements.
Metric
None Identified None Identified Cumulative Make Cycle Time None Identified Total WIP Inventory DOS
Best Practices
Inventory targets are reviewed and adjusted frequently
Features
Digital Linkages using XML standards (Rosettanet, eBXML, OAGI) to automatically query inventory levels.
Inputs
Plan
EP.1
Source Source
Make Make
Deliver Deliver
Outputs
Plan
29
April 2003
Process Element: Establish Production Plans Process Element Definition Performance Attributes
The establishment of courses of action over specified time periods that represent a projected appropriation of supply resources to meet production and operating plan requirements.
Metric
Production Plan Adherence None identified Cumulative Make Cycle Time None identified Total WIP Inventory DOS
Best Practices
Unplanned orders are accepted and scheduled only when there is no detrimental impact on overall product delivery plan
Features
Digital Linkages using XML standards (RosettaNet, eBXML, OAGI) to automatically query production capacity and ATP and schedule unplanned orders.
Inputs Outputs
Production Plans
Plan Plan
P1.2, P2.1, P4.2
Source Source
Make Make
M1.1, M2.1, M3.2
Deliver Deliver
D1.3, D2.3, D3.3
30
April 2003
(P1.4) Supply Chain Plans (EP.3) Planning Data (EP.9) Service Levels (EP.7) Item Master (EP.7) Routings (D1.3, D2.3, D3.3) Order Backlog (Customer) Customer Requirements Merchandise category/classification Product/category lifecycle (D4.6) Point of Sale Data (daily) Store Shelf Inventory Counts Dc/vendor Lead Time Dc/vendor Transit Time Year-to-Year for Like SKU/Subclass Stock-out History Promotion/Event Plans Markdown Plans Actual Shrink EOQ/ESQs
P4: Plan Deliver
P4.1 Identify, Prioritize, and Aggregate Delivery Requirements
P4.3 Balance Delivery Resources with Delivery Requirements
P4.4 Establish Delivery Plans
Item Stocking Requirements (D4.2) Store Allocation Instructions
P4.2 Delivery Plans (P1.2, P2.1, P3.1, D1.3, D2.3, D3.3) Stocking Requirements (D4.1)
Identify, Assess, and Aggregate Delivery Resources
(P2.4) Sourcing Plans (P3.4) Production Plans (EP.3) Planning Data (D1.3, D2.3) Inventory Availability/Delivery Date (D3.3) Resource Availability
31
April 2003
Process Element: Plan Deliver Process Element Definition Performance Attributes

The development and establishment of courses of action over specified time periods that represent a projected appropriation of delivery resources to meet delivery requirements.
Metric
Forecast Accuracy Delivery Performance to Customer Request Date Fill rate None Identified Order Management Cycle Time Total Deliver Costs Finished Goods Inventory DOS
Best Practices
Distinct and consistent linkages exist to ensure disruptions and opportunities in delivery resources are quickly and accurately communicated and responded to Proactive education of customers to set expectations and encourage close working relationships (knowledge of long-lead items, visibility to supply resources, agreement on levels of flexibility)
Features
Tightly integrated DRP/ERP Systems Supply Chain Event Management Systems Trading Partner Networks including Third Party Logistics Providers None Identified
32
April 2003
Process Element: Utilize Current Label Process Element Definition Performance Attributes
The process of identifying, prioritizing, and considering, as a whole with constituent parts, all sources of demand in the delivery of a product or service.
Metric
Forecast Accuracy Sales Floor Error Rates On Shelf Locations Shelf SKU Accuracy In-Stock Position (Inventory) Order Management Cycle Time % Overtime Labor None Identified None Identified
Best Practices
Eliminate special deals sales to reduce returns and improve forecast accuracy (reduces uncertainty, lowers safety stock requirements, cheaper to administer) Customer relationship and Digital linkages (XML, EDI, etc.) provide accurate visibility into actual demand via customer forecasts, product plans, production plans, and inventory positions Vendor managed inventory program in which sourcing entity manages customer inventory and plans replenishment Forecasts are replaced with actual customer replenishment signals and orders where possible Unplanned orders are accepted only when there is no impact on overall product delivery plan Electronic matching between POS data and store inventory (shelves and back room) Matching shelf stock to expectations Ideal Stock position Based on Days/Weeks of Supply RFID and other tagging Planogram Flexibility for Seasonal/Promotional Changes
Features
None Identified
Tightly integrated supply chain or demand planning with point of sale and customer inventory systems
VMI support in demand planning or supply chain planning B2B Integration and Application Server Systems None Identified Integrated software systems A software based system that corrects shelf inventory levels based on actual product present (possible RFID solution). Identifies stock-outs from shrinkage or item misplacement Pilot by Wal-Mart/MIT POG software/field force None Identified
33
April 2003
Inputs
(Customer) Customer Requirements Supply Chain Plans Planning Data Service Levels Item Master Routings Order Backlog Merchandise category/classification Product/category lifecycle Point of Sale Data (daily) Store Shelf Inventory Counts Dc/vendor Lead Time Dc/vendor Transit Time Year-to-Year for Like SKU/Subclass Stock-out History Promotion/Event Plans Markdown Plans Actual Shrink EOQ/ESQs
Plan
P1.4 EP.3 EP.9 EP.7 EP.7
Source
Make
Deliver
D1.3, D2.3, D3.3 D4.6
Outputs
Item Stocking Requirements Store Allocation Instructions
Plan
Source
Make
Deliver
D4.2
34
April 2003
Process Element: Identify, Assess, and Aggregate Delivery Resources Process Element Definition Performance Attributes
The process of identifying, evaluating, and considering, as a whole with constituent parts, all things that add value in the delivery of a product.
Metric
Forecast Accuracy None Identified Order Management Cycle Time None identified None Identified
Best Practices
None Identified
Features
None Identified
Inputs
Sourcing Plans Production Plans Planning Data Inventory Availability/Delivery Date Resource Availability
Plan
P2.4 P3.4 EP.3
Source
Make
Deliver
D1.3, D2.3 D3.3
Outputs
Plan
Source
Make
Deliver
35
April 2003
Process Element: Balance Delivery Resources with Delivery Requirements Process Element Definition Performance Attributes
The process of developing a time-phased course of action that commits delivery resources to meet delivery requirements
Metric
Delivery Performance to Customer Request Date None Identified None Identified None identified None Identified
Best Practices
Demand priorities reflecting strategic customer relationships as business policies are automatically followed in allocating resources; First-In-First-Out (FIFO) is utilized as the default scheduling priority
Features
Rules-based distribution planning system Trading partner agreements
Inputs
Plan
EP.1
Source Source
Make Make
Deliver Deliver
Outputs
Plan
36
April 2003
Process Element: Establish Delivery Plans Process Element Definition Performance Attributes
The establishment of courses of action over specified time periods that represent a projected appropriation of delivery resources to meet delivery requirements.
Metric
Delivery Performance to Customer Request Date Fill Rate None Identified None Identified None Identified Finished Goods Inventory Days of Supply
Best Practices
Plans which do not violate business rules are communicated openly and cross-functionally for execution Plans that violate business rules (eg Joint Service Agreements) are addressed crossfunctionally, considering total business impacts (revenue, cost, quality, customer service, etc.) To address conditions which cannot be adequately satisfied during the current planning period, each functional area develops prioritized recommendations for the subsequent planning period Specific changes to the plan are agreed to cross-functionally, according to defined business rules
Features
None Identified
None Identified
Inputs Outputs
Delivery Plans Stocking Requirements
Plan Plan
P1.2, P2.1, P3.1
Source Source
Make Make
Deliver Deliver
D1.3, D2.3, D3.3 D4.1
37
April 2003
P5: Plan RETURN

Projections, Revised Assumptions Contractual Obligations (EP.3) Planning Data (EP.9) Revised Aggregate Forecast and (D1, D2, D3) Actual Sales History (DR1.1, DR2.1, DR3.1) Historical Return Rates (ER.1) Business Rules (ER.8) Regulatory Requirements EP.1 Planning Decision Policies EP.2 Supply Chain Performance Plan EP.4 Inventory P5.1 Strategy
Identify, Prioritize, and Aggregate RETURN Requirements P5.3 Balance RETURN Resources with RETURN Requirements P5.2 P5.4 Establish and Communicate RETURN Plans
Identify, Assess, and Aggregate RETURN Resources
P2.4 Sourcing Plans P3.4 Make Plans / Overhaul and Rehab Capabilities P4.4 Delivery Plans EP.3 Planning Data (EP.5, EP.6) Projected & External Production Capacity, Revised Capital Plan, Outsource Plan EP.8 Regulatory Requirements EP.9 Budget Constraints (DR2.3, DR2.4) Return Inventory Transfer Data ER.1 Business Rules ER.2 Capabilities of the Return Processes ER.3 Data & Return Capabilities ER.4 Return Inventory Targets ER.5 Asset Return Capabilities ER.6 Return Transportation Guidelines, Policies, & Agreements ER.7 Return Process Workflow Definitions & Policies ER.8 Regulatory Requirements
Deliver Resources P4.2 Production Requirements P3.1 Source Requirements P2.1 Return Plans (DR2.1) Return Rules and Policies DR1.1, DR3.1 Return Capabilities and Constraints DR1.1, DR3.1 Return Plan Schedule DR1.1, DR2.3, DR3.1 Process Procedures ER.2
38
April 2003
Process Element: Plan RETURN Process Element Definition
A strategic or tactical process to establish and adjust courses of action or tasks over specified time periods that represent a projected appropriation of return resources and assets to meet anticipated as well as unanticipated return requirements. The scope includes unplanned returns of sold merchandise as well as planned returns of rotable products that are refurbished for reissue to customers.
Reliability Responsiveness Flexibility Costs Assets
Metric
None Identified RETURN product velocity (movement through the process) Ability to augment RETURN capacity rapidly None Identified RETURN assets utilization
Best Practices
Use Demand Planning Planning and Forecasting Outsourced RETURN process
Features
Demand Planning Systems to forecast returns, predict yield rates for reusable products or components, determine demand in a resale market, and project a revenue stream. Collaborative planning and forecasting with RETURN outsourcing partners (3PL, reverse drop shippers, etc.)
39
April 2003
Process Element :Identify, Assess, and Aggregate Return Requirements Process Element Definition Performance Attributes
The process of identifying, evaluating, and considering, as a whole with constituent parts, all sources of demand for the return of a product.
Metric
Best Practices
Real time RETURN anticipation
Features
Having real time data on return demand and including it in the plan and forecast. Requires a connection with customers, call centers or CRM system, possibly to the store level with retail returns. (This is a retail-centric definition. My background is A&D. Use historical return data to determine an historical return rate for individual products and/or for product groups and then apply these return rates against both forecasted sales and actual sales. The historical return data can also include statistics regarding the latency time between the sale (delivery date) and the return authorization request.
Use Historical Based Return Rate Forecasts
Inputs
Planning Data (incl. data from CRM or sales return system) Revised Aggregate Forecast and Projections, Revised Assumptions Projections
Plan
EP.3 EP.9 Marketing, Sales, Product Management/ Engineering Marketing, Sales, Product Management/ Engineering Marketing, Sales, Legal Marketing, Sales, P3 (As pertains to planning overhaul/ refurbishment ops)
Source
Make
Deliver
Return
Revised Assumptions
Contractual Obligations Overhaul and Rehab Plans (Applies to the A&D situation)
Historical Return Rates Business Rules
DR1.1, DR2.1, DR3.1 ER.1
40
April 2003
Regulatory Requirements
ER.8
Outputs
Plan
Source
Make
Deliver
Return
41
April 2003
Process Element: Identify, Assess, and Aggregate Return Resources Process Element Definition Performance Attributes
The process of identifying, evaluating, and consideration for all resources that add value to, execute, or constrain the processes for the return of a product.
Metric
Best Practices
Rapid reconfiguration of RETURN capacity Joint Service Agreements with Source suppliers to share responsibilities and costs of returns Allow Source suppliers full visibility into the current return situations and the forecasted return activity
Features
Use of RETURN tracking and projection systems and flexible partner agreements that allow the rapid addition of RETURN capacity to match unexpected demand. Collaborative planning tools with the Source suppliers Shared supply chain forecasting and event management functionality with Source suppliers
Inputs
Sourcing Plans Make Plans Delivery Plans Planning Data Projected & External Production Capacity; Revised Capital Plan; Outsource Plan Regulatory Requirements Budget Constraints Return Inventory Transfer Data Business Rules Capabilities of the Return Processes Data & Return Capabilities Return Inventory Targets Asset Return Capabilities Return Transportation Guidelines, Policies, & Agreements Return Process Workflow Definition & Policies Regulatory Requirements
Plan
P2.4 P3.4 P4.4 EP.3 EP.5 EP.6 EP.8 EP.9
Source
Make
Deliver
Return
DR2.3, DR2.4 ER.1 ER.2 ER.3 ER.4 ER.5 ER.6 ER.7 ER.8
Outputs
Plan
Source
Make
Deliver
Return
42
April 2003
Process Element: Balance Return Resources with Return Requirements Process Element Definition Performance Attributes
The process of developing courses of action that make feasible the commitment the appropriate return resources and or assets to satisfy return requirements.
Metric
Best Practices
Dynamic return restocking management Advance Planning Engines applied to returns. Cost accounting system to determine the best return process to follow from a cost of business perspective
Features
Dynamic prioritization of restocking plans in order to rapidly resell products that are in demand thus reducing new inventory demand. Advanced math model solvers that optimize / minimize constraints, routing, restocking priorities and costs. ABC costing system
Inputs
Planning Decision Policies Supply Chain Performance Plan Inventory Strategy (incl. restocking strategy)
Plan
EP.1 EP.2 EP.4
Source
Make
Deliver
Return
Outputs
Plan
Source
Make
Deliver
Return
43
April 2003
Process Element: Establish and Communicate Return Plans Process Element Definition Performance Attributes
The establishment and communication of courses of action over specified time periods that represent a projected appropriation of required return resources and or assets to meet return process requirements.
Metric
Best Practices
Rapid, dynamic reconfiguration of RETURN process to meet demand
Features
The ability to reset and reconfigure the RETURN process capacity, routings, etc. by transmitting new requirements and directives using mathematical models, the Internet, outsourcing and flexible partnership agreements. Also requires integration with the CRM system for real time redirection of customer returns based upon cost and capacity. Intranet and Extranet communications tools
Full internal (and external if Source suppliers share in the Return process responsibilities) visibility to RETURN plans
Inputs Outputs
Deliver Resources Production Requirements Source Requirements Return Plans Return Rules and Policies Return Capabilities and Constraints Return Plan Schedule Process Procedures
Plan Plan
P4.2 P3.1 P2.1
Source Source
Make Make
Deliver Deliver
Return Return
DR2.1 DR1.1, DR3.1 DR1.2, DR3.2 DR1.2, DR2.3, DR3.2 ER.2
44
April 2003
EP: Enable Plan
Business Plan Strategic Plan Service Requirements
Supply-Chain Performance Metrics Continuous Improvement Process
Supply Chain Execution Data
EP.1 Manage Business Rules for PLAN Processes
EP.2 Manage Performance of Supply Chain
EP. 3
Manage PLAN Data Collection
Planning Decision Policies (P1.3, P2.3, P3.3, P4.3) Service Levels (P4.1)
Supply Chain Performance Improvement Plan (P1.3)
Planning Data (P1.1, P1.2, P2.1, P2.2, P3.1, P3.2, P4.1, P4.2)
Product Routings Capacity Constraints Planning Decision Policies
EP.4 Manage Integrated Supply Chain Inventory
EP.5 Manage Integrated Supply Chain Capital Assets
Inventory Strategy (P1.3) Manage Iintegrated Supply Chain Inventory Information (DR2.1)
Revised Capital Plan (P1.2) Projected Internal and External Capacity (P1.2) Make/Buy Decision (P1.2, P2.2, P3.2) Outsource Plan (P1.2)
45
April 2003
EP: Enable Plan
EP.6 Manage Integrated Supply Chain Transportation
EP.7 Manage Planning Configuration
Projected Internal and External Capacity (P1.2) Outsource Plan (P1.2)
Item Master (P2.1, P3.1, P4.1) Bill of Materials (P2.1, P3.1) Product Routings (P2.1, P3.1, P4.1)
Business Plan Strategic Plan
EP.8 EP.9 Manage PLAN Regulatory Requirements and Compliance Align Supply Chain Unit Plan with Financial Plan
Regulatory Requirements (P1.2)
Revised Aggregate Forecast and Projections (P1.1) Revised Business Assumptions (P1.1)
46
April 2003
Enable Process: Manage Business Rules for PLAN Processes Enable Process Definition
Process Number: EP.1
The process of establishing, maintaining, and enforcing decision support criteria for Supply Chain Planning which translate to rules for conducting business, i.e. developing and maintaining customer and channel performance standards of an entire supply chain such as service levels, given service requirements by supply chain stakeholders/trading partners. Business rules align PLAN process policies with business strategy, goals, and objectives.
Metric
None Identified None Identified None Identified Total Supply Chain Costs None Identified
Best Practices
Integrated business and supply chain planning processes where cross-functional input is leveraged to set business rules.
Features
Supply Chain performance dashboard capability.
Inputs
Business Plan Strategic Plan Service Requirements
Plan
Source
Make
Deliver
Outputs
Planning Decision Policies Service Levels
Plan
P1.3, P2.3, P3.3, P4.3 P4.1
Source
Make
Deliver
47
April 2003
Enable Process: Manage Performance of Supply Chain Enable Process Definition
The process of measuring actual integrated Supply Chain performance against internal and/or external standards to develop and implement a course of action to achieve targeted performance levels. Performance targets established for the execution of supply chain processes are reflected in the process elements for PLAN, i.e. cost, delivery reliability, cycle time, responsiveness, and assets.
Metric
None Identified None Identified None Identified Total Supply Chain Costs None identified
Best Practices
Reliable Continuous Improvement Process and Methodology. Efficient and effective benchmarking process leveraging cross industry metrics and definitions. Sound Project Management Process and Methodology.
Features
None Identified None Identified None Identified
Inputs
Supply-Chain Performance Metrics Continuous Improvement Process
Plan
Source
Make
Deliver
Outputs
Supply Chain Performance Improvement Plan
Plan
P1.3
Source
Make
Deliver
48
April 2003
Enable Process: Manage PLAN Data Collection Enable Process Definition
The process of collecting, integrating and maintaining the accuracy of supply chain execution information necessary to plan the balance of supply chain resources to demand requirements at both the highest aggregate and lowest SKU planning levels.
Metric
None identified None identified None Identified Total Supply Chain Costs None Identified
Best Practices
Integrated Demand and Supply Planning Demand Planning, Supply Planning and especially the Supply Plan Execution are no longer disconnected. All required planning and execution data is integrated and shared in between all functional areas within an organization. Collaborative Planning Planning information (POS information, Demand History, Forecast, Production Schedule etc.) is shared in between suppliers, manufacturers, service providers and customers. Single data source for decision support and business rules.
Features
Memory based planning systems provide one single data model and data mart (including the business rules) for the entire supply chain planning and execution process. Algorithms use the business rules as the driver for the planning engine. Modern supply chain planning systems and communication technologies (XML, web enabled EDI) as well as newly defined standards (eg CPFR, eBXML, Rosettanet) supports the real-time information exchange in between the business community. A data warehouse/data mart is the source of all planning (master) data, business rules and transaction data. Analyzing tools enable the ongoing maintenance and improvement of the business rules based on actual data.
Inputs
Supply Chain Execution Data
Plan Plan
P1.1, P1.2, P2.1, P2.2, P3.1, P3.2, P4.1, P4.2
Source Source
Make Make
Deliver Deliver
Outputs
Planning Data
49
April 2003
Enable Process: Manage Integrated Supply Chain Inventory Enable Process Definition
The process of establishing total supply chain inventory strategy and planning the total inventory limits or levels (including Raw Material, Work In Process, Finished and Purchased Finished Goods) including replenishment models, ownership, product mix, and stocking locations, both inter and intra company.
Metric
Best Practices
Capability to run multiple simulated fullstream supply/demand balancing against longterm capacity plans and scenarios.
Features
Supply Chain modeling capabilities, i.e. Advanced Planning Systems.
Inputs
Plan
Source
Make
Deliver
Outputs
Inventory Strategy Manage Iintegrated Supply Chain Inventory Information
Plan
P1.3
Source
Make
Deliver
Return
DR2.1
50
April 2003
Enable Process: Manage Integrated Supply Chain Capital Assets Enable Process Definition
The process of defining capacity strategy (i.e. internal versus contract manufacturing or internal versus 3rd Party Logistics) and then acquiring, maintaining and dispositioning an organizations capital assets to operate the integrated supply chain.
Metric
Best Practices
Use of Cross Functional Teams to execute the process of developing Long-Term Capacity and Resource Plans. Alignment of strategic and business plans with long-term capacity and resource planning. Capability to run multiple simulated fullstream supply/demand balancing against longterm capacity plans and scenarios.
Features
None Identified None Identified Supply Chain modeling capabilities, i.e. Advanced Planning Systems.
Inputs
Plan
Source
Make
Deliver
Outputs
Revised Capital Plan Projected Internal and External Capacity Make/Buy Decision Outsource Plan
Plan
P1.2 P1.2 P1.2, P2.2, P3.2 P1.2
Source
Make
Deliver
51
April 2003
Enable Process: Manage Integrated Supply Chain Transportation Enable Process Definition
The process of defining an integrated supply chain transportation strategy and maintaining the information which characterizes total supply chain transportation requirements, and the management of transporters both inter and intra company.
Metric
Best Practices
Use of Cross Functional Teams to execute the process of developing Long-Term Capacity and Resource Plans. Alignment of strategic and business plans with long-term capacity and resource planning Capability to run multiple simulated fullstream supply/demand balancing against longterm capacity plans and scenarios.
Features
None Identified None Identified Supply Chain modeling capabilities, i.e. Advanced Planning Systems.
Inputs
Plan
Source
Make
Deliver
Outputs
Projected Internal and External Capacity Outsource Plan
Plan
P1.2 P1.2
Source
Make
Deliver
52
April 2003
Enable Process: Manage Planning Configuration Enable Process Definition
The process of defining and maintaining the information about a unique supply chain network for a group of similar or complimentary products through their full life cycle, including the evaluation of market need, product realization (development, introduction and production), product discontinuation, and after-market support. This element also includes the management of critical sub processes needed to manage the life cycle of individual item numbers including item masters, routings, event planning (promotions, etc.), ABC classification, rationalization, and bill of materials.
Metric
Forecast Accuracy None Identified None Identified Total Supply Chain Costs Return on Assets
Best Practices
ABC Classification SKU Rationalization Use of Platform Teams in the New Product Development Process Incorporates leading practices such as Efficient Consumer Response, Collaborative Planning, Forecasting, and Replenishment, Vendor Managed Inventory, and real time point of consumption reporting. New Items Introductions are part of the Sales and Operations Planning Process at the General Management Business Team Level
Features
None Identified None Identified None Identified None Identified
None Identified
Inputs Outputs
Item Master Bill of Materials Product Routings
Plan Plan
P2.1, P3.1, P4.1 P2.1, P3.1 P2.1, P3.1, P4.1
Source Source
Make Make
Deliver Deliver
Return Return
53
April 2003
Enable Process: Manage PLAN Regulatory Requirements and Compliance Enable Process Definition Performance Attributes
The process of identifying and complying with regulatory documentation and process standards set by external entities (i.e. government, trade officials, etc.) when planning for the integrated supply chain network.
Metric
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Regulatory Requirements
Plan Plan
P1.2
Source Source
Make Make
Deliver Deliver
Return Return
54
April 2003
Enable Process: Align Supply Chain Unit Plan with Financial Plan Enable Process Definition
The process of revising the long-term supply chain capacity and resource plans, given the inputs from the strategic and business plans. This includes revision of not only aggregate forecast and projections related to supply chain, source, make, and delivery plans, but also business assumptions.
Metric
None Identified None Identified None Identified Total Supply Chain Cost None Identified
Best Practices
Strategic Sales and Operations Planning process in place and managed at the executive level. A Re-planning process links the supply chain operation with the Business Strategy and the Marketing Strategy. A Re-planning process exists in multi-levels of the Supply Chain between business enterprises.
Features
None Identified None Identified Business to business internet capability to share common data.
Inputs
Business Plan Strategic Plan
Plan
Source
Make
Deliver
Outputs
Revised Aggregate Forecast and Projections Revised Business Assumptions
Plan
P1.1 P1.1
Source
Make
Deliver
55
April 2003
SOURCE
56
April 2003
S1: Source Stocked Product

(P2.4) Sourcing Plans (ES.2) Source Execution Data (ES.6) Logistics Selection (M1.1, M2.1, M3.2) Production Schedule (M1.2, M2.2, M3.3, D1.3) Replenishment Signals (DR2.4) Return Inventory Transfer Data (Supplier) Sourced Products (DR2.4) MRO Products
S1.2 S1.1 Schedule Product Deliveries Receive Product
S1.3
Verify Product
Procurement Signal (Supplier) Sourced Product on Order (P2.2), (ES.9) Scheduled Receipts (M1.1, M2.1, M3.2, D1.8, D4.2)
Receipt Verification (ES.1, ES.2, ES.6 ES.8)
Receipt Verification (ES.1, ES.2)
(M) (D) Product Pull Signals (ES.4) Product Inventory Location (EM) WIP Inventory Location (ED) Finished Goods Inventory Location
(ES.9) Payment Terms
S1.4
S1.5
Transfer Product
Authorize Supplier Payment
Inventory Availability (P2.2, ES.4, M1.2, M2.2, M3.3, D1.8, D4.2) Daily Replenishment Requirements (D4.1) Loaded Cart (D4.4)
57
April 2003
Process Category: Source Stocked Product Process Category Definition Performance Attributes
Process Number: S1
The procurement, delivery, receipt and transfer of raw material items, subassemblies, product and or services.
Metric
% Orders/lines processed complete Total Source Cycle Time to Completion Time and Cost related to Expediting the Sourcing Processes of Procurement, Delivery, Receiving and Transfer. Product Acquisition Costs Inventory DOS
Best Practices
Joint Service Agreements Alliance and Leverage agreements
Features
None Identified
58
April 2003
Process Element: Schedule Product Deliveries Process Element Definition
Process Element Number: S1.1
Scheduling and managing the execution of the individual deliveries of product against an existing contract or purchase order. The requirements for product releases are determined based on the detailed sourcing plan or other types of product pull signals.
Metric
% Schedules Generated within Suppliers Lead Time % Schedules Changed within Suppliers Lead Time Average Release Cycle of Changes Average Days per Schedule Change Average Days per Engineering Change Product Management and Planning Costs as a % of Product Acquisitions Costs None Identified
Best Practices
Utilize EDI transactions to reduce cycle time and costs VMI agreements allow suppliers to manage (replenish) inventory Mechanical (Kanban) pull signals are used to notify suppliers of the need to deliver product Consignment agreements are used to reduce assets and cycle time while increasing the availability of critical items Advanced ship notices allow for tight synchronization between SOURCE and MAKE processes
Features
EDI interface for 830, 850, 856 & 862 transactions Supplier managed inventories with scheduling interfaces to external supplier systems Electronic Kanban support Consignment inventory management Blanket order support with scheduling interfaces to external supplier systems
Inputs
Sourcing Plans Source Execution Data Logistics Selection Production Schedule Replenishment Signals Return Inventory Transfer Data
Plan
P2.4
Source
ES.2 ES.6
Make
Deliver
Return
M1.1, M2.1, M3.2 M1.2, M2.2, M3.3
D1.3 DR2.4
Outputs
Procurement Signal (Supplier) Sourced Product on Order Scheduled Receipts
Plan
P2.2
Source
ES.9
Make
M1.1, M2.1, M3.2
Deliver
D1.8, D4.2
Return
59
April 2003
Process Element: Receive Product Process Element Definition Performance Attributes

Reliability
Process Element Number: S1.2 Metric

% Orders/ lines received damage free % Orders/ lines received complete % Orders/ lines received on-time to demand requirement % Orders/ lines received with correct shipping documents Receiving Cycle Time % Receipts Received without Item and Quantity Verification Receiving costs as a % of Product Acquisition Costs None Identified
The process and associated activities of receiving product to contract requirements.
Responsiveness Flexibility Cost Assets
Best Practices
Supplier certification programs are used to reduce (skip lot) or eliminate receiving inspection Bar coding is used to minimize handling time and maximize data accuracy Deliveries are balanced throughout each working day and throughout the week Supplier delivers directly to point of use (dock to line or end destination)
Features
Skip lot / sampling inspection logic Bar code interface for data collection devices Generate bar coded receiving documents None Identified Electronic Tag tracking to Point of Use (POU) destination
Inputs
(Supplier) Sourced Products MRO Products
Plan
Source
Make
Deliver
Return
DR2.4
Outputs
Receipt Verification
Plan
Source
ES.1, ES.2, ES.6, ES.8
Make
Deliver
Return
60
April 2003
Process Element: Verify Product Process Element Definition Performance Attributes


% Orders / line received defect free Verification Cycle Time % Receipts Received Without Quality Verification Verification costs as a % of Product Acquisition Costs None Identified
The process and actions required determining product conformance to requirements and criteria.
Best Practices
Supplier certification programs are used to reduce (skip lot) or eliminate receiving inspection Bar coding is used to minimize handling time and maximize data accuracy Deliveries are balanced throughout each working day and throughout the week Supplier delivers directly to point of use Supplier replaces defective material at customers facility with good product as required.
Features
Skip lot/sampling inspection logic Bar code interface for data collection devices Generate bar coded receiving documents None Identified Electronic Tag tracking to Point of Use (POU) destination Electronic Tag tracking to Point of Use (POU) destination
Inputs Outputs
Plan Plan
Source Source
ES.1, ES.2
Make Make
Deliver Deliver
Return Return
61
April 2003
Process Element: Transfer Product Process Element Definition
The transfer of accepted product to the appropriate stocking location within the supply chain. This includes all of the activities associated with repackaging, staging, transferring and stocking product. For service this is the transfer or application of service to the final customer or end user.
Reliability
Metric
% Product transferred damage free % Product transferred complete % Product transferred on-time to demand requirement % Product transferred without transaction errors Transfer Cycle Time Time and Cost Reduction related to Expediting the Transfer Process. Transfer & Product storage costs as a % of Product Acquisition Costs Inventory DOS
Best Practices
Drive deliveries directly to stock or point-of-use in manufacturing to reduce costs and cycle time Capability Transfer to Organization
Features
Pay on receipt Specify delivery location and time (to the minute) Specify delivery sequence None Identified
Inputs
Product Pull Signals Product Inventory Location WIP Inventory Location Finished Goods Inventory Location
Plan
Source
ES.4
Make
M EM
Deliver
D ED
Outputs
Inventory Availability Daily Replenishment Requirements Loaded Cart
Plan
P2.2
Source
ES.4
Make
M1.2, M2.2, M3.3
Deliver
D1.8, D4.2 D4.1 D4.4
62
April 2003
Process Element: Authorize Supplier Payment Process Element Definition Performance Attributes
The process of authorizing payments and paying suppliers for product or services. This process includes invoice collection, invoice matching and the issuance of checks.
Metric
% Invoices processed without issues and/or errors Payment Cycle Time. % Invoice Receipts and Payments Generated via EDI. Cost per invoice. None Identified
Best Practices
Pay on Receipt
Features
Electronic Invoice Processing
Inputs
Payment Terms
Plan Plan
Source
ES.9
Make Make
Deliver Deliver
Return Return
Outputs
Source
63
April 2003
S2: Source Make-to-Order Product

(P1.4, P2.4) Sourcing Plans (ES.2), (M2.2) Source Execution Data (Supplier) Product (ES.6) Logistics Selection (DR2.4) MRO (M1.2, M2.2, M3.3, D2.3) Replenishment Signals Products (M1.1, M2.1, M3.2) Production Schedule (DR2.4) Return Inventory Transfer Data
S2.2 S2.1 Schedule Product Deliveries Receive Product
S2.3
Verify Product
Procurement Signal Receipt Verification (ES.1, ES.2, (Supplier) ES.6, ES.8) Sourced Product on Order (P2.2, ES.9) Scheduled Receipts (M) (D) Product Pull (M1.1, M2.1, M3.2) Signals Product on Order (D) (ES.4) Product Inventory Location (ES.9) (M) WIP Inventory Location Payment (D) Finished Goods Terms Inventory Location
S2.4
S1.5
Transfer Product
Inventory Availability (P2.2, M1.2, M2.2, M3.3, ES.4, D2.8)
64
April 2003
Process Category: Source Make-to-Order Product Process Category Definition Performance Attributes
Process Number: S2
The procurement and delivery of product that is built to a specific design or configured based on the requirements of a particular customer order.
Metric
% Orders/lines processed complete Total Source Cycle Time to Completion Time and Cost related to Expediting the Sourcing Processes of Procurement, Delivery, Receiving and Transfer. Product Acquisition Costs Inventory DOS.
Best Practices
Joint Service Agreements Automated Statistical Process Control (SPC)
Features
65
April 2003
Scheduling and managing the execution of the individual deliveries of product against the contract. The requirements for product deliveries are determined based on the detailed sourcing plan. This includes all aspects of managing the contract schedule including prototypes, qualifications or service deployment.
Metric
% Schedules generated within Suppliers Lead Time % Schedules changed within Suppliers Lead Time Average Release Cycle of Changes Average days per Schedule Change Average days per Engineering Change Product Management and Planning Costs as a % of Product Acquisition Costs None Identified
Best Practices
Features
Inputs
Sourcing Plans Source Execution Data Logistics Selection Replenishment Signals Production Schedule Return Inventory Transfer Data
Plan
P1.4, P2.4
Source
ES.2
Make
M2.2 ES.6 M1.2, M2.2, M3.3 M1.1, M2.1, M3.2
Deliver
Return
D2.3
DR2.4
Outputs
Procurement Signal (Supplier) Sourced Product on Order Scheduled Receipts Product on Order
Plan
P2.2
Source
ES.9
Make
M1.1, M2.1, M3.2
Deliver
Return
66
April 2003

Reliability

% Orders/ lines received damage free % Orders/ lines received complete % Orders/ lines received on-time to demand requirement % Orders/ lines received with correct shipping documents Receiving Cycle Time. % Receipts Received without Item and Quantity Verification Receiving costs as a % of Product Acquisition Costs None Identified
Best Practices
Features
Inputs
(Supplier) Product MRO Products
Plan
Source
Make
Deliver
Return
DR2.4
Outputs
Plan
Source
ES.1, ES.2, ES.6, ES.8
Make
Deliver
Return
67
April 2003


% Orders / lines received defect free Verification Cycle Time % Receipts Received Without Quality Verification Verification costs as a % of Product Acquisition Costs None Identified
Best Practices
Features
Inputs Outputs
Plan Plan
Source Source
ES.1, ES.2
Make Make
Deliver Deliver
68
April 2003
Process Element: Transfer Product Process Element Definition
The transfer of accepted product to the appropriate stocking location within the supply chain. This includes all of the activities associated with repackaging, staging, transferring, and stocking product and or application of service.
Reliability
Metric
% Product transferred damage free % Product transferred complete % Product transferred on-time to demand requirement % Product transferred without transaction errors Transfer Cycle Time Time and/or Cost Reduction related to Expediting the Transfer Process. Transfer & Product storage costs as a % of Product Acquisition Costs Inventory DOS
Best Practices
Drive deliveries directly to stock or point-of-use in manufacturing to reduce costs and cycle time Capability transfer to customer
Features
Pay on receipt Specify delivery location and time (to the minute) Specify delivery sequence
Inputs
Plan
Source
ES.4
Make
M M
Deliver
D D
Outputs
Inventory Availability
Plan
P2.2.
Source
ES.4
Make
M1.2, M2.2, M3.3
Deliver
D2.8
69
April 2003
Metric
% Invoices processed without issues and/or errors Payment Cycle Time. % Invoice Receipts and Payments Generated via EDI. Cost per invoice. None Identified
Best Practices
Pay on Receipt
Features
Inputs
Payment Terms
Plan Plan
Source
ES.9
Make Make
Deliver Deliver
Outputs
Source
70
April 2003
S3: Source Engineer-to-Order Product

(P2.4) Sourcing Plans (D10) ETO Spec or Design (ES.1, ES.3), (ES.7) Source Criteria (ES.1, ES.3), (ES.7) Sourcing Review (Supplier) ETO Proposal (P2.4) Sourcing Plans (M1.1, M2.1, M3.2) Production Schedule (M1.2, M2.2, M3.3, D3.3) Replenishment Signals (ES.2) Source Execution Data (ES.6) Logistics Selection (DR2.4) Return Inventory Transfer Data
(Supplier) Sourced Product
S3.1
S3.2
S3.3
S3.4
Identify Sources of Supply
Select Final Supplier (s) and Negotiate
Schedule Product Deliveries
Receive Product
ETO Request for Proposal (Supplier)
Procurement Signal (Supplier) Supplier Agreement (ES.9)
Procurement Signal (Supplier) Product on Order (P2.2, ES.9) Scheduled Receipts (M1.1, M2.1, M3.2)
Receipt Verification (ES.1, ES.2, ES.6, ES.8)
(M) (D) Product Pull Signals (ES.4) Product Inventory Location (EM) WIP Inventory Location (ED) Finished Goods Inventory Location
(ES.9) Payment Terms
S3.5
S3.6
S3.7
Verify Product
Transfer Product
Existing Inventory Data (ES.4) Inventory Availability (P2.2, M1.2, M2.2, M3.3, D3.7)
71
April 2003
Process Category: Source Engineer-to-Order Product Process Category Definition Performance Attributes
Process Number: S3
The negotiation, procurement and delivery of engineer-to-order assemblies or specialized product or services that are designed and built based on the requirements or specifications of a particular customer order or contract.
Metric
% Orders/lines processed complete Total Source Cycle Time to Completion Time and Cost related to Expediting the Sourcing Processes of Procurement, Delivery, Receiving and Transfer. Product Acquisition Costs Inventory DOS Value of assets provided by service provider(cost avoidance)
Best Practices
Joint Service Agreements
Features
None Identified
72
April 2003
Process Element: Identify Sources of Supply Process Element Definition Performance Attributes
The identification and qualification of potential suppliers capable of designing and delivering product that will meet all of the required product specifications.
Metric
% Potential suppliers selected which become qualified % Qualified suppliers which meet defined requirements Source Identification Cycle Time Source Qualification Cycle Time Time and/or Cost reduction related to Source Identification Product Process Engineering as a % of Product Acquisition Costs Value of assets provided by service provider (cost avoidance)
Best Practices
Product Data Management & Electronic Document Management are used to manage technical documents and requirements for engineer to order product Electronic data interchange is used to send technical information to and from potential suppliers On line RFQ processes linked into the document management process reduces cycle time and product management costs Concurrent engineering is used to tightly link sourcing into the product development process Make/Buy Decision Process (Outsourcing vs. In sourcing) Supplier development programs are used to get local suppliers to invest in developing new technologies
Features
None Identified
None Identified
Inputs
Sourcing Plans ETO Spec or Design Source Criteria
Plan
P2.4
Source
ES.1, ES.3, ES.7
Make
Deliver
D10
Outputs
ETO Request for Proposal (Supplier)
Plan
Source
Make
Deliver
73
April 2003
Process Element: Select Final Supplier(s) and Negotiate Process Element Definition Performance Attributes
The identification of the final supplier(s) based on the evaluation of RFQs, supplier qualifications and the generation of a contract defining the costs and terms and conditions of product availability.
Metric
% Supplier contracts negotiated meeting target terms and conditions for quality, delivery, flexibility and cost Source Selection Cycle Time % Single and/or Sole Source Selections Sourcing Costs as a % of Product Acquisitions Costs None Identified
Best Practices
Electronic data interchange is used to send RFQs and technical information to and from potential suppliers On line RFQ processes linked into the document management process reduces cycle time and product management costs Supplier certification programs can reduce the cycle time for certifying existing suppliers to provide new technologies Utilize concurrent engineering with suppliers to allow them to provide engineering and product performance test data On line document management and automated supplier approval processes can reduce the cycle time and costs associated with managing supplier evaluations On-line availability to supplier financials
Features
Inputs
Sourcing Review (Supplier) ETO Proposal
Plan
Source
ES.1, ES.3, ES.7
Make
Deliver
Outputs
Procurement Signal (Supplier) Supplier Agreement
Plan
Source
ES.9
Make
Deliver
74
April 2003
Scheduling and managing the execution of the individual deliveries of product against the contract. The requirements for product deliveries are determined based on the detailed sourcing plan. This includes all aspects of managing the contract schedule including prototypes and qualifications.
Metric
% Schedules generated within Suppliers Lead time % Schedules changed within Suppliers Lead time Average Release Cycle of Changes Average days per Schedule Change Average days per Engineering Change Product Management and Planning Costs as a % of Product Acquisition Costs None Identified
Best Practices
Features
Inputs
Sourcing Plans Production Schedule Replenishment Signals Source Execution Data Logistics Selection Return Inventory Transfer Data
Plan
P2.4
Source
Make
M1.1, M2.1, M3.2 M1.2, M2.2, M3.3
Deliver
Return
D3.3
ES.2 ES.6 DR2.4
Outputs
Procurement Signal (Supplier) Product on Order Scheduled Receipts
Plan
P2.2
Source
ES.9
Make
M1.1, M2.1, M3.2
Deliver
Return
75
April 2003

Reliability

% Orders/ lines received damage free % Orders/ lines received complete % Orders/ lines received on-time to demand requirement % Orders/ lines received with correct shipping documents Receiving Cycle Time % Receipts Received without Item and Quantity Verification. Receiving costs as a % of Product Acquisition Costs None Identified
Best Practices
Features
Inputs
(Supplier) Sourced Product
Plan Plan
Source Source
ES.1, ES.2, ES.6, ES.8
Make Make
Deliver Deliver
Outputs
76
April 2003


% Orders / lines received defect free Verification Cycle Time. % Receipts Received Without Quality Verification Verification costs as a % of Product Acquisition Costs None Identified
Best Practices
Features
Inputs Outputs
Plan Plan
Source Source
ES.1, ES.2
Make Make
Deliver Deliver
77
April 2003
Process Element: Transfer Product Process Element Definition Performance Attributes

Reliability
The transfer of accepted product to the appropriate stocking location within the supply chain. This includes all of the activities associated with repackaging, staging, transferring, and stocking product.
Metric
% Product transferred damage free % Product transferred complete % Product transferred on-time to demand requirement % Product transferred without transaction errors Transfer Cycle Time. Time and/or Cost Reduction related to Expediting the Transfer Process. Transfer & Product storage costs as a % of Product Acquisition Costs Inventory DOS
Best Practices
Drive deliveries directly to stock or point-of-use in manufacturing to reduce costs and cycle time Capability Transfer to organization
Features
Pay on receipt Specify delivery location and time (to the minute) Specify delivery sequence None Identified
Inputs
Plan
Source
ES.4
Make
M EM
Deliver
D ED
Outputs
Existing Inventory Data Inventory Availability
Plan
P2.2
Source
ES.4
Make
M1.2, M2.2, M3.3
Deliver
D3.7
78
April 2003
Metric
% Invoices Processed without Issues and/or Errors Payment Cycle Time. % Invoice Receipts and Payments Generated via EDI. Cost per invoice. None Identified
Best Practices
Pay on Receipt
Features
Inputs
Payment Terms
Plan Plan
Source
ES.9
Make Make
Deliver Deliver
Outputs
Source
79
April 2003
ES: Enable Source

(S1.2, S1.3, S2.2), (S2.3, S3.4, S3.5) Receipt Verification (ES.7) Manage Supplier Network (S1.2, S1.3, S2.2), (S2.3, S3.4, S3.5) Receipt Verification (ES.7) Manage Supplier Network Plan Source Manage Supply Chain Inventory (ES.2) Quality & Delivery Performance (ES.7) Manage Supplier Network
ES.1 Manage Sourcing Business Rules
ES.2 Assess Supplier Performance
ES.3 Maintain Source Data
Manage Supplier Network (ES.7) Identify Source of Supply (S3.1, S3.2)
Maintain Source Data (ES.3) Manage Supplier Network (ES.7) Establish Source Plan (S1.1, S2.1, S3.3,)
Manage Supplier Network (ES.7) Identify Source of Supply (S3.1, S3.2) Current Inventory Source Data
Product Mix and Plans Supply Chain Plan Inventory and Order Rules Parts and Services Consumed (S1.4, S2.4, S3.6) Existing Inventory Data (SR2.2) Inventory Availability (SR2.2) Return Product Location
(ES.8) Import/Export Requirements (ES.9) Supplier Agreement Parts and Services Consumed Deliver Capital Assets
(ES.8) Contract Carrier Rates (S1.2, S2.2, S3.4) Receipt Verification
ES.4 Manage Product Inventory ES.5 Manage Capital Assets ES.6 Manage Incoming Product
Product Inventory Location (S1.4, S2.4, S3.6) MRO Parts Availability Inventory Target Levels Supply Chain Performance Inventory Availability (SR2.3, SR2.4, SR2.5)
Import/Export Requirements (ES.8)
Logistics Selection (S1.1, S2.1, S3.3)
80
April 2003
ES: Enable Source

(S1.2), S2.2, S3.4) Receipt History (ES.5) Manage Capital Assets Parts and Services Consumed (S3.2) Select Final Supplier & Negotiate (ES.7) Manage Supplier Network (S1.1, S2.1, S3.3) Schedule Product Deliveries (ES.8) Import/Export Requirements
(ES.1) Business Rules (ES.2) Supplier Performance (ES.3) Incoming Product (ES.9) Supplier Agreement
ES.7 Manage Supplier Network
ES.8 Manage Import/Export Requirements
ES.9 Manage Supplier Agreements
Business Rules (ES.1) Supplier Performance (ES.2) Incoming Product (ES.3) Supplier Agreement (ES.9) Identify Sources (S3.1, S3.2)
Manage Capital Assets (ES.5) Manage Incoming Product (ES.6) Supplier Agreement (ES.9)
Manage Capital Assets (ES.5) Manage Supplier Network (ES.7) Authorize Supplier Payment (S1.5, S2.5, S3.7)
81
April 2003
Enable Process: Manage Sourcing Business Rules Enable Process Definition
Process Number: ES.1
The process of defining requirements and establishing, maintaining and enforcing decision support criteria, in alignment with business strategy, goals and objectives. The business strategy defines the criteria for sourcing business rules that are translated into guidelines and policies for conducting business within the enterprise and other legal entities. Sourcing business rules include: supplier selection and negotiation processes, fulfillment and delivery performance and relationship definition for specific levels of collaboration and partnership.
Reliability
Metric
% Agreements Negotiated without error/change requirement % Orders placed without error The Degree & Frequency of Conformance to Business Rules that is achieved None Identified End to End Cycle Time for Business Processes RP-PO Cycle Time Approval Cycle Time Policy Documentation & Approval Cycle Time Cost of Process Documentation, Monitoring and Auditing Business Rules Cost of non-compliance to Business Rules Assets as a % of cost to administer business rules
Responsiveness Flexibility
Cost Assets
Best Practice
Enterprise level policies/rules with local execution Long term supplier agreements/partnerships Optimized Supply Chain Processes Optimized Supplier Count Supplier and Part Rationalization Enterprise level spend analysis Collaborative review and agreement of business rules prior to contract execution Electronic Sourcing and Negotiation
Features
Web based access to enterprise level business rules Electronic rules for business relationships and transactions Web based access to preferred and recommended suppliers, supplier performance data & spend data stratified by commodity, business unit/site, supplier, part type, process type Web based access to current spend data available from enterprise to part level Use of WEB enabled conferencing or meeting software for review Business Rules for electronic sourcing process and hierarchy
Inputs
Receipt Verification Manage Supplier Network
Plan
Source
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5 ES.7
Make
Deliver
Outputs
Manage Supplier Network Identify Source of Supply
Plan
Source
ES.7 S3.1, S3.2
Make
Deliver
82
April 2003
Enable Process: Assess Supplier Performance Enable Process Definition
The process of measuring actual supplier performance against internal and/or external standards, providing feedback to achieve and maintain the performance required to meet the customers business and/or competitive needs.
Reliability
Metric
On-time delivery performance (required quantities, to dates required) Defective product (expressed as % or defective parts per million) Performance to requirements stated in contracts or service agreements Continuous improvement trends or patterns Business performance trends or patterns Frequency of personnel changes and related impacts Supplier Performance Rating Quality Improvement Productivity Improvement None Identified The degree and frequency of demonstrated flexibility or responsiveness measured against defined criteria Total cost to measure supply base performance as a % of revenue Total cost of nonconformance as a % of revenue Costs related to specific types of non-conformance Assets as a % of Non-conformance Costs
Responsiveness Flexibility Cost
Assets
Best Practice
Performance expectations and business rules are clearly communicated prior to the initiation of business with the supplier Supplier performance data is collected, analyzed and reported to suppliers online and real-time through extranet applications Supplier cost of nonconformance data is collected, analyzed and used in performance reporting Comparative analysis of supplier performance is used in sourcing decisions Suppliers are evaluated, selected and qualified with criteria matched to business requirements and competitive needs Cost reduction and or cost avoidance are opportunities are identified, implemented and measured on a periodic basis Continuous Improvement and development is driven and measured through the performance review process
Features
Web based access / availability to business rules and performance criteria Web based relational database / management application Software application to automate data collection and reporting Software application with data analysis capability None identified
83
April 2003
Inputs
Receipt Verification Manage Supplier Network
Plan
Source
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5 ES.7
Make
Deliver
Outputs
Maintain Source Data Manage Supplier Network Establish Source Plan
Plan
Source
ES.3 ES.7 S1.1, S2.1, S3.3
Make
Deliver
84
April 2003
Enable Process: Maintain Source Data Enable Process Definition
The process of collecting, sorting, defining hierarchy and managing configuration control of supplier information and source data that are required to make sourcing and related planning and manufacturing decisions. Source data to be maintained includes supplier profile data, financials, quality and delivery performance, spend analysis at various levels of the enterprise, from major business units to material part number
Reliability Responsiveness Flexibility
Metric
Availability &Accuracy of supplier/source data Frequency of supplier/source data update feeds None Identified Time to access supplier/source data as required to respond to need The degree of flexibility to access, collect, sort, update and analyze source data to enable rapid business decisions Cost of maintaining data as a % of spend, % revenue Assets as a % of cost to maintain data repository
Cost Assets
Best Practice
Data accessibility across the enterprise for visibility by discrete business units On demand access of supplier/source data Automated update of supplier performance information Supplier and material rationalization
Features
Web based access to various levels of enterprise data Web based access to current supplier/source data None Identified Web based access to supplier/source data
Inputs
Plan Source, Manage Supply Chain Inventory Quality & Delivery Performance Manage Supplier Network
Plan
Source
ES.2 ES.7
Make
Deliver
Outputs
Current Inventory Source Data Manage Supplier Network Identify Source of Supply
Plan
Source
ES.7 S3.1, S3.2
Make
Deliver
85
April 2003
Enable Process: Manage Product Inventory Enable Process Definition
The process of establishing and maintaining physical inventories and inventory information. This includes warehouse management, cycle counting, physical inventories and inventory reconciliation. For Services, this may include tracking the number of service providers and the financial resources committed at any given point in time.
Metric
Fill Rate (% filled of an order) None Identified Cycle Time required to move product to point of use Inventory carrying cost Days of Supply (DOS) Inventory Value (measured in dollars) Inventory Days of Supply
Best Practice
Periodic review of metrics and strategy with comparisons to industry benchmarks Real time data on current status. Cycle Counting Supplier Managed Inventory
Features
Real time view of data. Dynamic calculation of safety stock based on actual sales None Identified The supplier is responsible for maintaining inventory levels at the point of use. The software system verifies usage, receiving and payment functions.
Inputs
Product Mix and Plans, Supply Chain Plan, Inventory and Order Rules Existing Inventory Data Parts and Services Consumed
Plan
Source
S1.4, S2.4, S3.6
Make
Deliver
Return
Outputs
Product Inventory Location MRO Parts Availability Inventory Target Levels, Supply Chain Performance Inventory Availability
Plan
Source
S1.4, S2.4, S3.6
Make
Deliver
Return
SR2.3, SR2.4, SR2.5
86
April 2003
Enable Process: Manage Capital Assets Enable Process Definition Performance Attributes
The process of acquiring, maintaining and dispositioning an organizations <capital assets> located at a suppliers facility and/or outside source, which are used to operate the supply chain.
Metric
Unplanned Maintenance Downtime % of Total Production Time % Obsolete or Inactive Capital Assets None Identified Mean Time to Repair Asset (Tooling & Equipment) Cost of Damaged Capital Asset Cost of Obsolete Capital Asset Capital Asset Carrying Cost Actual Asset Life Maintenance Cost as % of Replacement Value
Best Practice
Removal of Obsolete Capital Assets Total Preventative Maintenance Program
Features
Automated Calculation of ABC Velocity Movement Automatically generated TPM repair schedules integrated with MRP systems, electronic equipment repair history, parts listings, part stores inventory & reorder points, automatic store room parts purchases, Shop floor access to electronic data base of equipment line drawings, electrical wiring diagrams, parts listing reference guide and part cost lists. Changeover process flow element identification, instructional directions to conduct changeover, and measurement tool which can be used to prioritize and track results of improvement efforts. Software to identify operational constraints to the MAKE processes of the Supplier to assist in directing resources toward bottleneck functional areas. System software to list checklist items, report results of audit & forward actions to be taken
Changeover Reduction / Continuous Improvement Program
Facility & Equipment Environmental / Safety Audit System
Inputs
Import/Export Requirements Supplier Agreement Parts and Services Consumed Deliver Capital Assets
Plan
Source
ES.8 ES.9
Make
Deliver
Outputs
Import/Export Requirements
Plan
Source
ES.8
Make
Deliver
87
April 2003
Enable Process: Manage Incoming Product Enable Process Definition
The process of defining and maintaining the information that characterizes inbound logistics management of all supplier deliveries, including both physical and electronic goods and services. This includes carrier selection and management, tracking deliveries and import.
Metric
Frequency of parameter updates Number of data sources for data collection None Identified Speed at which parameters (eg, rates) are updated. Dock-to-Dock times (lane specific) Data maintenance costs Empty-to-loaded back-haul mile index Equipment utilization rates (hours) Equipment utilization rates (product contribution margin) Vehicle maintenance costs
Best Practice
Integrated Order Management, Warehouse Management and Transportation Management Systems View for analysis for all orders and shipments the following data: Logistics, Product, Cost, GL Charging Appointment Scheduling for Pickup and Delivery of Customer Shipments Measurement of Carrier Performance for Ontime Delivery and Completeness Real-time Optimized Shipment Method Selection (Air Parcel, Ground Parcel, LTL, etc.) Based on Customer Service Requirements Real-time Shipment Tracking, (via Internet) Electronic Manifest and Electronic Billing Automated Documentation for International Shipments Manage Information across 100% of shipments Capture and maintain mode specific data Internet Pooling (Electronic brokerage of shipments Back-haul trading exchange
Features
Transportation Management System (TMS) Maintenance Management
Rating & Routing Pooling
Inputs
Contract Carrier Rates Receipt Verification
Plan
Source
ES.8 S1.2, S2.2, S3.4
Make
Deliver
Outputs
Logistics Selection
Plan
Source
S1.1, S2.1, S3.3
Make
Deliver
88
April 2003
Enable Process: Manage Supplier Network Enable Process Definition
The process of defining and maintaining a unique network of suppliers to deliver a specific product set. This includes establishment of a new supplier or maintaining an existing supplier and all the tasks and activities associated with identifying and qualifying the supplier and finalizing on the sourcing terms and conditions. Also, the management of a supplier certification process, which includes certifying new suppliers and maintaining the current status of existing suppliers.
Reliability Responsiveness Flexibility
Metric
Supplier Delivery Performance Percent Supplier Quality Performance Percent Supplier Price Performance Percent None Identified Create and maintain multiple suppliers and multiple supplier sites to record information about individuals and companies from whom you want to purchase catalogue goods and services. Total Source Lead Time Total Delivery Time Terms and Conditions Total Product Costs Total Delivery Costs Total Handling Costs Value of assets provided by service provider (cost avoidance)
Cost Assets
Best Practice
Internet Exchanges that provide: Catalog hosting services allow suppliers to edit, review and publish their catalog content to the Exchange hosted catalog. Exchanges also offers value add services that help suppliers differentiate their content, optimize catalogs for maximum order volume as well as manage individual trading relationships with buyers. Spot Purchasing allows buyers to search the Exchange hosted catalog and compare the goods and services offered by multiple suppliers. Buyers can add items selected for purchase to their shopping cart. Suppliers are automatically notified of the purchases when the buyer 'checks-out' with the shopping cart. Buyer Auctions allow buyers to create and publish an auction for goods and services that they intend to purchase. Bids from multiple suppliers can then be compared to make an award decision. In this way, buyers can quickly identify new sources of supply and manage unexpected changes in demand. Seller Auctions allow sellers to create and publish an auction for goods or services that they intend to sell. The seller can review and compare bids from multiple buyers to make an award decision. Suppliers can easily manage excess capacity as well as maximize the value of obsolete or scrap materials. Transaction Delivery services allow buyers and suppliers to connect seamlessly to Exchanges to
Features
Internet Exchanges are a hosted, business-to-business trading network. Exchanges are an open procurement network, accessible to any buyer and focused on new Internet-enabled purchasing models like spot buys or reverse, buyer-driven auctions. Exchanges will also support more traditional catalog-based sales.
89
April 2003
send and receive purchasing transactions securely over the Internet. Identification of suppliers who will participate in Vendor Managed Inventory (VMI) programs Identification of suppliers who will participate in Consignment Inventory programs Identification of suppliers who will participate in Kanban programs Identification of suppliers who will participate in procurement split (two or more suppliers sharing purchase requirements) programs Electronic data interchange can be used to send RFQs and technical information to and from potential suppliers to determine supplier capability to fulfill requirements so that they may be added to supplier network On-line availability to supplier financials to determine potential supplier viability to be added to supplier network Utilize concurrent engineering with suppliers to allow them to provide engineering and product performance test data to qualify as part of potential supplier network On line document management and automated supplier approval processes can reduce the cycle time and costs associated with managing supplier evaluations and get them into the supplier network faster Supplier certification programs can reduce the cycle time for initial certification of new suppliers or certifying existing suppliers that wish to provide new technologies Establishment of criteria to rank suppliers Evaluate supplier network for duplicates
Supplier managed inventories with scheduling interfaces to external supplier systems to replenish Consignment Inventory Management Electronic Kanban Support None Identified Electronic Data Interchange
Internet web sites for financial evaluation Internet, EDI, FAX
ERP
None Identified
Utilize supplier delivery, quality, price performance as well as any other criteria such as terms and conditions Supplier Merge Programs for duplicates
Inputs
Business Rules Supplier Performance Incoming Product Supplier Agreement
Plan
Source
ES.1 ES.2 ES.3 ES.9
Make
Deliver
Outputs
Business Rules Supplier Performance Incoming Product Supplier Agreement Identify Sources
Plan
Source
ES.1 ES.2 ES.3 ES.9 S3.1, S3.2
Make
Deliver
90
April 2003
Enable Process: Manage Import/Export Requirements Enable Process Definition Performance Attributes
The process of identifying and complying with import/export regulatory documentation and process standards set by external entities (eg, government).
Metric
Compliance with multi-country government regulations1 Minimized delays in-transit caused by customs intervention2 None Identified Customs clearance cycle time Export shipment processing time Duty tax control Cost of compliance None Identified
Best Practice
Documents generated automatically during shipment preparation. Direct connection to customs clearance Direct Transfer of documents to Recipient and Forwarder Assessing export/import requirements during time of product development/manufacture Ability to track component/sub-component manufacturing country of origin
Features
Electronic documentation submission via EDI and/or Internet
Multi-country Export/Import documentation compliance Component/lot tracking (lot trace-ability)
Inputs
Receipt History Manage Capital Assets Parts and Services Consumed
Plan
Source
S1.2, S2.2, S3.4 ES.5
Make
Deliver
Outputs
Manage Capital Assets Manage Incoming Product Supplier Agreement
Plan
Source
ES.5 ES.6 ES.9
Make
Deliver
91
April 2003
Enable Process: Manage Supplier Agreements Enable Process Definition
The management of existing purchase orders or supplier contracts. This includes managing volume/step pricing, resolving issues, enforcing terms and conditions and maintaining an accurate status for existing purchase orders or contracts.
Reliability
Metric
Supplier Delivery Performance Percent Supplier Quality Performance Percent Supplier Price Performance Percent Re-negotiation Cycle Time Volume of Amendment compared to total contracts None Identified Degree and frequency that purchase orders/contract can be altered. Average length of contracts Cost of managing Long Term Agreements as a % spent, % revenue Cost of managing All Contracts as a % spent, % revenue Assets associated with the Management of Supplier Agreements as a %of Total Assets.
Best Practice
Enterprise level policies/rules with local execution Long term supplier agreements/partnerships Vendor Managed Inventory Agreements Fab & Hold Agreements Just-In-Time Agreements Optimized Supply Chain Processes Optimized Supplier Count Supplier and Part Rationalization Enterprise level spend analysis Electronic Sourcing and Negotiation E-Business
Features
Web based access to enterprise level business rules Electronic rules for business relationships and transactions
Web based access to preferred and recommended suppliers, supplier performance data and spend data stratified by commodity, business unit/site, supplier, part type, process type Web based access to current spend data available from enterprise to part level Business Rules for electronic sourcing process and hierarchy
Inputs
Select Final Supplier & Negotiate Manage Supplier Network Schedule Product Deliveries Import/Export Requirements
Plan
Source
S3.2 ES.7 S1.1, S2.1, S3.3 ES.8
Make
Deliver
Outputs
Manage Capital Assets Manage Supplier Network Authorize Supplier Payment
Plan
Source
ES.5 ES.7 S1.5, S2.5, S3.7
Make
Deliver
92
April 2003
MAKE
93
April 2003
M1: Make-to-Stock
(P3.4) Production Plan (S1.1, S2.1, S3.3) Scheduled Receipts (M1.2, M1.3, M1.4, M1.5, M1.6) Information Feedback (EM.5) Equipment and Facilities Schedules and Plans (S1.4, S2.4, S3.6) Inventory Availability (EM.4) WIP Handling Rules, Move Information and Methods (EM.6) WIP Location Rules
M1.1
M1.2
M1.3
Schedule Production Activities
Issue Product
Produce and Test
Production Schedule (P3.2, S1.1, S2.1, S3.3, D1.3, D1.8, D4.2)
Inventory Availability (P3.2) Information Feedback (M1.1) Replenishment Signal (S1.1, S2.1, S3.3) Product Location Information (EM.6) (P3.4) Production Plan (P4.4) Deliver Plan
Information Feedback (M1.1)
M1.4
M1.5
M1.6
Package
Stage Product
Release Product to Deliver

Information Feedback (M1.1) 94
April 2003
Information Feedback (M1.1) Finished Product Release (D1.8, D4.2)
Process Category: Make-to-Stock
Process Number: M1
Process Category Definition

The process of manufacturing in a make-to-stock environment adds value to products through mixing, separating, forming, machining, and chemical processes. Make to stock products are intended to be shipped from finished goods or off the shelf, are completed prior to receipt of a customer order, and are generally produced in accordance with a sales forecast.
Metric
Warranty costs Performance to customer request date Yield Item/Product/Grade changeover time Total Item/Product manufacture time Re-plan Cycle Time Item/Product/Grade changeover time Value-Added Productivity Plant Operating Cost per hour Indirect to direct headcount ratio Cost\unit Overhead cost Product Losses (Sourced/In-Process/Finished) Asset Turns Capacity utilization Inventory Aging WIP days of supply
Assets
Best Practices
Cellular manufacturing Demand-pull manufacturing, including active reduction of manufacturing system time and WIP through the use of demand-pull mechanisms and visual controls Performance results that are compared to benchmarks (i.e., capacity, scheduling) and readily available to employees. Organization to enhance flexibility: Few job classifications, self-directed work force, flat management structure, and cross-functional work teams. Paperless production order and inventory tracking Link individual performance to organizational and divisional goals Provide continuous formal training to employees Implement employee involvement programs Migrate from build to stock to configure to order; build subassemblies to forecast at the highest generic level in the bill of material/recipe/formula. Accurate and low cost batch/configuration records for warranty and regulatory tracking Production level loading Lean Manufacturing Vendor Managed inventory
Features
Manufacturing is broken into work cells Support for demand-pull mechanisms (Kanban, replenishment signals, ETC.) based on rate schedules and user defined minimum and maximum trigger points. Data warehouse, report writing, real time database and Executive Information systems that are easily accessible. Use of web-based technologies for dissemination of information Support for modular skills inventory with links to training databases, compensation systems, and operator instructions. Electronic dispatch and data collection. Allow customer access to production status and inventories using internet technologies and web site features. None Identified Examples would be TQM, Six Sigma Postponement of final configuration to the nearest point to the customer. EG. Do configuration at warehouse. None Identified Electronic batch/configuration records Capacity planning Use a team based systematic approach to identifying and eliminating wasteful, or non-value adding, activities within your manufacturing organization. Allows optimum use of production capacity and reduces
April 2003
95
Accurate and approved work instructions/ process plans
inventory. Use internet technologies to provide the required business-to-business interfaces. Electronic document management that maintains current Standard operation procedures (SOPs)
April 2003
96
Process Element: Schedule Production Activities Process Element Definition
Process Element Number: M1.1
Given plans for the production of specific parts, products, or formulations in specified quantities and planned availability of required sourced products, the scheduling of the operations to be performed in accordance with these plans. Scheduling includes sequencing, and, depending on the factory layout, any standards for setup and run. In general, intermediate production activities are coordinated prior to the scheduling of the operations to be performed in producing a finished product.
Metric
Schedule achievement None Identified Schedule Interval Upside Production Flexibility Downside Production Flexibility WIP inventory days of supply Scheduled resource costs Capacity utilization
Best Practices
Cross training/Certification Maintain data and system integrity by ensuring production data, inventory levels, and schedule requirements are 99+% accurate Schedule optimizes use of shared resources, such as production equipment and tooling Schedule includes preventive maintenance program Schedule minimizes changeover costs Real-time feedback from Production, raw material and finished goods inventory and test activities. Provide scheduling output back to material and labor planning systems.
Features
HR/Certification support Detailed production model that synchronizes PLAN and MAKE activities in real time. Detailed production scheduling model and simulation capabilities Interface between maintenance management system and scheduling system Detailed production scheduling model and simulation capabilities Allow dynamic re-synchronization of MAKE activities by tying in real time status information to scheduler. Accurate, real time information.
Inputs
Production Plan Scheduled Receipts depends upon the type of sourced product required. The item sourced could be from a vendors make-to-stock process, make-to-order, or engineer-to-order process. Information Feedback Equipment and Facilities Schedules and Plans
Plan
P3.4
Source
S1.1, S2.1, S3.3
Make
Deliver
M1.2, M1.3, M1.4, M1.5, M1.6 EM.5
Outputs
Production Schedule - information is used as feedback for Plan and Source support processes. Projection of inventory availability for Deliver planning also requires the production schedule as feedback information.
Plan
P3.2
Source
S1.1, S2.1, S3.3
Make
Deliver
D1.3, D1.8, D4.2
April 2003
97
Process Element: Issue Material Process Element Definition
The selection and physical movement of sourced/in-process product (e.g., raw materials, fabricated components, subassemblies, required ingredients or intermediate formulations) from a stocking location (e.g., stockroom, a location on the production floor, a supplier) to a specific point of use location. Issuing product includes the corresponding system transaction. The Bill of Materials/routing information or recipe/production instructions will determine the products to be issued to support the production operation(s).
Metric
Inventory accuracy Out of stock occurrences Sourced/in-process product requisition cycle time None Identified Inventory obsolescence Inventory days supply - sourced product, in-process product Cash-to-cash cycle time
Best Practices
Strategic safety stock of selected materials, items, or subassemblies to decouple sourced product issuance cycle time from supplier lead time Electronic material move transactions Back flush material at order completion Complete lot history Demand-pull mechanisms; Kanban replenishment signals from stockroom, intermediate products, or subassembly area Supplier delivery to production process at point of use
Features
Use of safety stock algorithms to minimize stock levels.
Automated process control and/or barcode data collection Flexible back flush logic Inventory by lot of sourced/in-process product or discrete order, / usage reporting by lot or discrete order None Identified EDI link to suppliers sales order and inventory systems
Inputs
Inventory Availability WIP Handling Rules, Move Information and Methods WIP Location Rules
Plan
Source
S1.4, S2.4, S3.6
Make
EM.4 EM.6
Deliver
Outputs
Inventory Availability Information Feedback Replenishment Signal Sourced Product Location Information
Plan
P3.2
Source
S1.1, S2.1, S3.3
Make
M1.1 EM.6
Deliver
April 2003
98
Process Element: Produce and Test Process Element Definition
The series of activities performed upon sourced/in-process product to convert it from the raw or semi-finished state to a state of completion and greater value. The processes associated with the validation of product performance to ensure conformance to defined specifications and requirements.
Reliability
Metric
Fill rates Ratio of actual to theoretical cycle time Warranty and returns Yields Scrap expense In-process failure rates Total build cycle time Product/Grade Changeover Time Intra-Manufacturing Re-Plan Cycle Total Production Employment Value Added Productivity Warranty Costs Capacity utilization Asset Turns
Best Practices
Authorize each operation to assess the quality of the previous operations Paperless production control Accurate and approved process plans/specifications Reduce chances of operator error Measuring process metrics and feedback to operators Reduce non-value added activities, including queue, move, and set-up times Accurate batch/configuration records for warranty and regulatory tracking Just-in-time demand flow techniques Design/upgrade production equipment to maximize flexibility and avoid line stoppages Real time quality control techniques Maintain accurate lot/batch history information
Features
None Identified Electronic dispatch of operations Electronic document management Automatic download of production equipment with batch recipes/part programs Electronic data collection of completion, quality, scrap, labor and equipment data and dissemination of information on factory floor Use principals of Lean Manufacturing Electronic batch recording/configuration Demand-pull mechanisms Machine productivity and downtime monitoring Electronic collection of quality data and online SPC Electronic data collection of employee actions and sourced/in-process product lot used
Inputs Outputs
Information Feedback
Plan Plan
Source Source
Make Make
M1.1
Deliver Deliver
April 2003
99
Process Element: Package Process Element Definition Performance Attributes

The series of activities that containerize completed products for storage or sale to end-users. Within certain industries, packaging may include cleaning or sterilization.
Metric
Warranty costs Package cycle time None Identified Packaging cost Scrap packaging expense Asset turns Capacity utilization
Best Practices
Design/upgrade production equipment to maximize flexibility and avoid line stoppages Accurate and approved process plans, routings, specifications and procedures Up-to-date shop packet/specification for each unique production event/demand Paperless production control Minimize operator induced errors Reduce non-value added paperwork while still maintaining process metrics Packaging operation is an integral part of the overall production process Accurate and low cost batch/configuration records for warranty and regulatory tracking Automatic label and seal verification
Features
Machine productivity and downtime monitoring Electronic document management Electronic Work Instructions Electronic dispatch of operations Automatic download of production equipment with setup parameters Graphical display of setup/changeover/layout Electronic data collection of completion, quality, lot trace ability, scrap, and labor data None Identified Electronic batch/configuration records Automatic interface to inspection systems
Inputs Outputs
Plan Plan
Source Source
Make Make
M1.1
Deliver Deliver
April 2003
100
Process Element: Stage Finished Product Process Element Definition
The movement of packaged products into a temporary holding location to await movement to a finished goods location. Products that are made to order may remain in the holding location to await shipment per the associated customer order. The movement to finished goods is part of the Deliver process.
Metric
Staging time None Identified None Identified Inventory Carrying Cost Inventory days supplyplant FG
Best Practices
Direct ship from factory to customer/channel Electronic material move transactions
Features
Share production status with customers and transportation providers via web-based tools. Auto-Tendering for direct ship utilizing EDI/XML protocols. Bar code data collection
Inputs
Production Plan, Deliver Plan as they influence where you stage product due to size of production runs or timing of expected release to Delivery
Plan
P3.4, P4.4
Source
Make
Deliver
Outputs
Plan
Source
Make
M1.1
Deliver
April 2003
101
Process Element: Release Finished Product to Deliver Process Element Definition
Activities associated with post-production documentation, testing, or certification required prior to delivery of finished product to customer. Examples include assembly of batch records for regulatory agencies, laboratory tests for potency or purity, creating certificate of analysis, and sign-off by the quality organization.
Metric
% Release errors Quarantine or Hold time Release process cycle time None Identified Release cost per unit None Identified
Best Practices
Accurate and low cost batch records for regulatory compliance Review batch records by exception Automated notification of laboratory regarding sample availability
Features
Electronic batch records Electronic batch records linked to process plans/recipes and exceptions flagged Interface between production system and LIMS
Inputs Outputs
Information Feedback Finished Product Release
Plan Plan
Source Source
Make Make
M1.1
Deliver Deliver
D1.8, D4.2
April 2003
102
M2: Make-to-Order
(P3.4) Production Plan (S1.1, S2.1, S3.3) Scheduled Receipts (M2.2, M2.3, M2.4, M2.5, M2.6) Information Feedback (EM.5) Equipment and Facilities Schedules and Plans (S1.4, S2.4, S3.6) Inventory Availability (EM.4) WIP Handling Rules, Move Information and Methods (EM.6) WIP Location Rules
M2.1
M2.2
M2.3
Issue Product
Produce and Test
Production Schedule (P3.2, S1.1, S2.1, S3.3, D2.3, D2.8)
Inventory Availability (P3.2) Replenishment Signal (S1.1, S2.1, S3.3), Information Feedback (M2.1) Product Location Information (EM.6) (P3.4) Production Plan (P4.4) Deliver Plan
M2.4
M2.5
M2.6
Package
Stage Product
Information Feedback (M2.1) Product Release (D2.8)

April 2003
103
Process Category: Make-to-Order Process Category Definition
Process Number: M2
The process of manufacturing in a make to order environment adds value to products through mixing, separating, forming, machining, and chemical processes. A make to order environment is one in which products are completed after receipt of a customer order and are built or configured only in response to a customer order.
Reliability
Metric
Warranty costs Performance to customer request date Performance to customer commit date Yield Item/Product/Grade changeover time Total Item/Product manufacture time Re-plan Cycle Time Item/Product/Grade changeover time Value-added productivity Average plant-wide salary Plant Operating Cost per hour Indirect to direct headcount ratio Unit cost Overhead cost Product Losses (Sourced/In-Process/Finished) Asset Turns Capacity utilization Inventory Aging
Assets
Best Practices
Organization to enhance flexibility: Few job classifications, self-directed work force, flat management structure, and cross-functional work teams. Delivery schedules are collaboratively developed with customers Posted performance results Accurate and approved work instructions/ process plans Accurate and low cost batch/configuration records for warranty and regulatory tracking Paperless order tracking and customer visibility of orders. Produce products to unique customer requirements Cellular and demand pull manufacturing Production level loading Link individual performance to organizational and divisional goals Provide continuous formal training to employees Implement employee involvement programs Build subassemblies/products to forecast at highest generic level to minimize make cycle time
Features
Support for modular skills inventory with links to training databases, compensation systems, and operator instructions. Web-based access to plant scheduling status, collaborative data-sharing environment. Data warehouse, report writing, real time data base, and EIS systems Electronic document management Electronic batch/configuration records Electronic dispatch and data collection with external interface to internet. Order entry specifications linked to manufacturing order Support for cellular and demand pull manufacturing execution Capacity planning None Identified None Identified None Identified None Identified
104
April 2003
Process Element: M2.1
Given plans for the production of specific parts, products, or formulations in specific quantities and planned availability of required sourced products, the scheduling of the operations to be preformed in accordance with these plans. Scheduling includes sequencing, and, depending on the factory layout, any standards for setup and run. In general intermediate production activities are coordinated prior to the scheduling of the operations to be preformed in producing a finished product.
Metric
Percent of orders scheduled to customer request date Schedule achievement None Identified Schedule interval Upside Production Flexibility Downside Production Flexibility WIP inventory days of supply
Scheduled resource costs

Assets Plant level order management costs Capacity utilization
Best Practices
Produce products to unique customer specification Schedule reflects current plant status (equipment availability, other jobs and resource availability) on line Schedule optimizes use of shared resources such as tooling and production equipment Demand-pull manufacturing, including active reduction of manufacturing system time and WIP through the use of demand-pull mechanisms and visual controls Schedule minimizes product changeover costs Schedule includes preventative maintenance program Maintain data integrity and system accuracy by ensuring 99%+ production data, inventory levels, and schedule requirements Cross Training/certification Demand pull mechanisms Additional capacity for overflow demand
Features
Order entry, engineering, and product specifications linked to production order Schedule undated by on line reporting and status systems and re-sequence activities Scheduling utilizing optimization techniques Required production resources included in routing/process instructions Support for demand-pull mechanisms (Kanban, replenishment signals, ETC.) based on rate schedules and user defined minimum and maximum trigger points. Advanced scheduling systems that optimize production schedules to minimize setup/cleaning and optimize job sequences Interface between maintenance system and scheduling system Detail production scheduling model that synchronizes Plan and Make activities HR/certification support Repetitive scheduling and sequencing Outsource manufacturing and work force augmentation providers connected to production schedules via the internet.
105
April 2003
Inputs
Production Plan Scheduled Receipts depend upon the type of sourced product required. The item sourced could be from a vendors make-to-stock process, make-to-order, or engineer-to-order process. Information Feedback Equipment and Facilities Schedules and Plans
Plan
P3.4
Source
S1.1, S2.1, S3.3
Make
Deliver
M2.2, M2.3, M2.4, M2.5, M2.6 EM.5
Outputs
Production Schedule
Plan
P3.2
Source
S1.1, S2.1, S3.3
Make
Deliver
D2.3, D2.8
106
April 2003
Process Element: Issue Sourced/In-Process Product Process Element Definition
The selection and physical movement of sourced/in-process products (e.g., raw materials, fabricated components, subassemblies, required ingredients or intermediate formulations) from a stocking location (e.g., stockroom, a location on the production floor, a supplier) to a specific point of use location. Issuing product includes the corresponding system transaction. The Bill of Materials/routing information or recipe/production instructions will determine the products to be issued to support the production operation(s).
Metric
Inventory accuracy % Parts received at point of use Sourced/In-Process Product requisition cycle time None Identified Inventory obsolescence Inventory days of Supply Cash-to-cash cycle time
Best Practices
Demand-pull mechanisms; Kanban replenishment signals from stockroom, intermediate products, or subassembly area Strategic safety stock of selected materials, items, or subassemblies to decouple sourced product issuance cycle time from supplier lead time Electronic material move transactions Complete lot history Back flush material at order completion Supplier delivery to production process at point of use
Features
Automated process control and/or barcode data collection Inventory by lot of sourced/in-process or discrete order /usage reporting by lot or discrete order Flexible back flush logic EDI link to suppliers sales order and inventory systems
Inputs
Plan
Source
S1.4, S2.4, S3.6
Make
EM.4 EM.6
Deliver
Outputs
Inventory Availability Replenishment Signal Information Feedback Sourced Product Location Information
Plan
P3.2
Source
S1.1, S2.1, S3.3
Make
Deliver
M2.1 EM.6
107
April 2003
Reliability
Metric
Ratio Of Actual To Theoretical Cycle Time Scrap expense In-process failure rates Yields Total Build Cycle Time Intra-Production Re-Plan Cycle Product/Grade Changeover Time None Identified Warranty costs Value-Added Productivity Total Production Employment Capacity utilization Asset Turns
Best Practices
Just-in-Time/demand flow techniques Design/upgrade production equipment to maximize flexibility and avoid line stoppages Real time quality control techniques Up-to-date shop packet/specifications Authorize each operation to assess the quality of the previous operations Paperless production control Accurate and approved process plans/specifications Reduce chances of operator error Reduce non-value added paperwork while still measuring process metrics Reduce non-value added activities, including queue, move, and set-up times Accurate and low cost batch/configuration records for warranty and regulatory tracking Maintain accurate lot/batch history information
Features
Real time data collection Machine productivity and downtime monitoring Electronic collection of quality data and on-line SPC Electronic work instructions None Identified Electronic dispatch of operations Electronic document management Automatic download of production equipment with batch recipes/part programs Electronic data collection of completion, quality, scrap, labor and equipment data None Identified Electronic batch recording/configuration Electronic data collection of employee actions and sourced/in-process product lot used
Inputs Outputs
Plan Plan
Source Source
Make Make
M2.1
Deliver Deliver
108
April 2003

Metric
Warranty costs Yield Package cycle time None Identified Packaging cost Scrap Packaging expense Asset turns Capacity Utilization
Best Practices
Postponement and pre-kitting of accessories into modular packages that allow flexibility while maintaining control Design/upgrade production equipment to maximize flexibility and avoid line stoppages Accurate and approved process plans, routings, specifications and procedures Up-to-date shop packet/specification for each unique production event/demand Paperless production control Minimize operator induced errors Reduce non-value added paperwork while still measuring process metrics Packaging operation is an integral part of the overall production process Accurate and low cost batch/configuration records for warranty and regulatory tracking Automatic label and seal verification
Features
None Identified Machine productivity and downtime monitoring Electronic document management Electronic Work Instructions Electronic dispatch of operations Automatic download of production equipment with setup parameters Graphical display of setup, changeover, or layout Electronic data collection of completion, quality, scrap, and labor data None Identified Electronic batch/configuration records Automatic interface to inspection systems
Inputs Outputs
Plan Plan
Source Source
Make Make
M2.1
Deliver Deliver
109
April 2003
The movement of packaged products into a temporary holding location to await movement to a finished goods location. Products that are made to order may remain in the holding location to await shipment per the associated customer order. The actual move transaction is part of the Deliver process.
Metric
Staging time None Identified None Identified Inventory carrying cost Inventory Days SupplyPlant FG
Best Practices
Direct ship from factory to customer/channel Electronic material move transactions
Features
Share production status with customers and transportation providers via web-based tools. Auto-Tendering for direct ship utilizing EDI/XML protocols. Bar code data collection
Inputs
Production Plan, Delivery Plan as they influence where you stage product due to size of production runs or timing of expected release to Delivery.
Plan
P3.4, P4.4
Source
Make
Deliver
Outputs
Plan
Source
Make
M2.1
Deliver
110
April 2003
Process Element: Release Finished Product to Deliver Process Element Definition
Metric
Best Practices
Features
Inputs Outputs
Plan Plan
Source Source
Make Make
M2.1
Deliver Deliver
D2.8
111
April 2003
M3: Engineer-to-Order
(P3.4) Production Plan (M3.3, M3.4, M3.5, M3.6, M3.7) Information Feedback (S1.1, S2.1, S3.3) Scheduled Receipts (EM.5) Equipment and Facilities Schedules and Plans (S1.4, S2.4, S3.6) Inventory Availability (EM.4) WIP Handling Rules, Move Information and Methods (EM.6) WIP Location Rules
Engineering Design (D3.3) Order Information
M3.1
M3.2
M3.3
Finalize Engineering
Issue Product
Methods, Procedures, Processes (M3.2)
Production Schedule (P3.2, S1.1, S2.1, S3.3, D3.3, D3.7)
Information Feedback (M3.2) Replenishment Signals (S1.1, S2.1, S3.3) Sourced Product Location Information (EM.6)
(P3.4) Production Plan (P4.4) Deliver Plan
M3.4
M3.5
M3.6
M3.7
Produce and Test
Package
Stage Product
Information Feedback (M3.2) Product Release (D3.7)
112
April 2003
Process Category: Engineer-to-Order Process Category Definition
Process Number: M3
The process of manufacturing distinct items, such as parts that retain their identity through the transformation process and are intended to be completed after receipt of a customer order. While Make to Order includes standard products built only in response to a customer order or products configured in response to a customer order, Engineer to Order includes custom products that are designed, developed, and manufactured in response to a specific customer request.
Metric
Warranty costs Performance to customer-request date Performance to commit date Total Item/Product manufacture time ECO cycle time Value-added productivity Average plant-wide salary ECO cost Unit cost Overhead cost Product Losses (Sourced/In-Process/Finished) Asset turns Capacity utilization Inventory aging
Assets
Best Practices
Cellular manufacturing Organize to enhance flexibility: few job classifications, self-directed work force, flat management structure, cross-functional work teams Delivery schedules are collaboratively developed with customers. Posted performance results Paperless order tracking and customer visibility of orders. Demand-pull manufacturing, including active reduction of manufacturing systems time and WIP through the use of demand-pull mechanisms and visual controls Product design collaboration with customers
Features
None Identified Support for modular skills inventory with links to training databases, compensations systems, and operator instructions Web-based access to plant scheduling status, collaborative data-sharing environment. None Identified Electronic dispatch and data collection with external interface to internet. Support of demand-pull mechanisms (Kanban, replenishment signals, etc.) based on rate schedules and user-defined minimum/maximum trigger points On-line design tools facilitated by internet connections.
113
April 2003
Process Element: Finalize Production Engineering Process Element Definition
Engineering activities required after acceptance of order, but before product can be produced. May include generation and delivery of final drawings, specifications, formulas, part programs, etc. In general, the last step in the completion of any preliminary engineering work done as part of the quotation process.
Metric
Deliver to commit date variance Number of ECOs Production Engineering Cycle time None Identified ECO cost Capacity Utilization
Best Practices
Automated Configuration Management Automated conversion of engineering drawings into product specifications
Features
Configuration None Identified
Inputs
Engineering Design Order Information
Plan
Source
Make
Deliver
D3.3
Outputs
Methods, Procedures, Processes
Plan
Source
Make
M3.2
Deliver
114
April 2003
Given plans for the production of specific parts, products, or formulations in specified quantities and planned availability of required sourced products, the scheduling of the operations to be performed in accordance with these plans. Scheduling includes sequencing, and, depending on the factory layout, any standards for setup and run. In general, intermediate production activities are coordinated prior to the scheduling of the operations to be performed in producing a finished product.
Metric
% Orders scheduled to customer request date Schedule achievement None Identified Schedule interval Upside Production Flexibility Downside Production Flexibility Inventory days of supply Plant-level order management costs Capacity utilization
Best Practices
Build subassemblies to forecast at highest generic level in Bill of Material; maintain flexibility while minimizing cycle time and inventory position Demand-pull mechanisms Schedule reflects current plant status (equipment, jobs, and other resources on-line) Schedule optimizes use of shared resources, such as tooling Cellular manufacturing Schedule minimizes changeover costs between products Schedule includes preventive maintenance program Maximize data integrity and system accuracy by ensuring 99%+ accuracy of BOM configuration, inventory levels, and schedule requirements Design/upgrade production equipment to maximize flexibility and avoid line stoppages Cross-training Additional capacity for overflow demand
Features
None Identified
Repetitive scheduling or sequencing of unique orders On-line reporting from operations Resource needs included in routing or Bill of Material None Identified Algorithms that manage set up times/costs, cleaning times, and ideal job sequences (e.g., color sequencing light to dark) Interface to maintenance management system None Identified None Identified None Identified Outsource manufacturing and work force augmentation providers connected to production schedules via the internet.
115
April 2003
Inputs
Production Plan Information Feedback Scheduled Receipts depend upon the type of sourced product required. The item sourced could be from a vendors make-to-stock process, make-to-order, or engineer-to-order process. Equipment and Facilities Schedules and Plans
Plan
P3.4
Source
Make
M3.3, M3.4, M3.5, M3.6, M3.7
Deliver
S1.1, S2.1, S3.3 EM.5
Outputs
Production Schedule
Plan
P3.2
Source
S1.1, S2.1, S3.3
Make
Deliver
D3.3, D3.7
116
April 2003
Process Element: Issue Sourced/In-Process Product Process Element Definition
The selection and physical movement of sourced/in-process products (e.g., raw materials, fabricated components, subassemblies, required ingredients or intermediate formulations) from a stocking location (e.g., stockroom, a location on the production floor, a supplier) to a specific point of use location. Issuing material includes the corresponding system transaction. The Bill of Materials/routing information or recipe/production instructions will determine the materials to be issued to support the production operation(s).
Metric
Inventory accuracy Sourced/In-Process Product requisition cycle time None Identified Inventory obsolescence Cash-to-cash cycle time
Best Practices
Demand-pull mechanisms; Kanban replenishment signals from stockroom or subassembly area Supplier delivery to production line at point-of-use Two-bin floor stock located at work center for B and C components. Controlled by operators and replenished when one bin is empty Strategic safety stock of selected materials, items or subassemblies to decouple sourced product issuance cycle time from supplier lead time Electronic material move transactions Back flush material at order completion
Features
None Identified EDI link to suppliers sales order and inventory systems None Identified None Identified Bar code data collection Flexible back flush logic
Inputs
Plan
Source
S1.4, S2.4, S3.6
Make
EM.4 EM.6
Deliver
Outputs
Information Feedback Replenishment Signal Sourced Product Location Information
Plan
Source
S1.1, S2.1, S3.3
Make
M3.2 EM.6
Deliver
117
April 2003
Reliability
Metric
Scrap expense In-process failure rates Yields Yield variability Total Build Cycle Time Intra-Production Re-Plan Cycle Ratio Of Actual To Theoretical Cycle Time None Identified Warranty costs Total Production Employment Value Added Productivity Asset turns
Best Practices
Just-in-time demand flow techniques Design/upgrade production equipment to maximize flexibility and avoid line stoppages Authorize each operation to assess the quality of the previous operations and prevent operatorintroduced errors Paperless production control Real time statistical control techniques Up-to-date shop packet/specifications Reduce non-value added paperwork while still measuring process metrics Reduce non-value added activities, including queue, move, and set-up times Link individual performance to organizational and divisional goals Provide continuous formal training to employees Implement employee involvement program Maintain accurate lot/batch history information
Features
Streamlined data collection Machine productivity and downtime monitoring Automatic download of production equipment with part programs Electronic dispatch of operations Electronic collection of defect data and on-line SPC Electronic work instructions Electronic data collection of completion, quality, scrap, and labor data None Identified None Identified None Identified None Identified Electronic data collection of employee actions and sourced/in-process lot or subassemblies used
Inputs Outputs
Plan Plan
Source Source
Make Make
M3.2
Deliver Deliver
118
April 2003

Metric
Warranty costs Package cycle time None Identified Warranty costs Packaging Costs Scrap Packaging Expense Asset turns Capacity utilization
Best Practices
Postponement and pre-kitting of accessories into modular packages that allow flexibility while maintaining control Design/upgrade production equipment to maximize flexibility and avoid line stoppages Up to date shop packet/specifications Paperless production control Minimize operator-induced errors Reduce non-value added paperwork while still measuring process metrics Packaging operation is an integral part of the overall production process Automatic label and seal verification
Features
None Identified Machine productivity and downtime monitoring Electronic work instructions Electronic dispatch of operations Automatic download of production equipment with setup parameters Electronic data collection of completion, quality, lot tractability, scrap, and labor data None Identified Automatic interface to inspection systems
Inputs Outputs
Plan Plan
Source Source
Make Make
M3.2
Deliver Deliver
119
April 2003
The movement of packaged products into a temporary holding location to await movement to a finished goods location. Products that are made to order may remain in the holding location to await shipment per the associated customer order. The actual move transaction is part of the Deliver process.
Metric
Staging Time None Identified None Identified None Identified None Identified
Best Practices
Direct ship from factory to customer/channel Electronic product move transactions
Features
Share production status with customers and transportation providers via web-based tools. Auto-Tendering for direct ship utilizing EDI/XML protocols Bar code data collection
Inputs
Production Plan, Deliver Plan as they influence where you stage product due to size of production runs or timing of expected release to Delivery.
Plan
P3.4, P4.4
Source
Make
Deliver
Outputs
Plan
Source
Make
M3.2
Deliver
120
April 2003
Process Element: Release Product to Deliver Process Element Definition
Metric
Best Practices
Features
Inputs Outputs
Plan Plan
Source Source
Make Make
M3.2
Deliver Deliver
D3.7
121
April 2003
EM: Enable Make

Business Plans Corporate Objectives and Strategies Product Design (P) Functional Strategies, Production Plans, Production Capability Business Plans Corporate Objectives and Strategies Product Design/Quality (P) Functional Strategies, Production Plans, Production Capability Information Needed to Create and Maintain IT (P, S, M, D) Information Needs Analysis (S, M) Systems Capability (P, S, M, D) Information from Business Processes
EM.1 Manage Production Rules
EM.2 Manage Production Performance
EM.3 Manage MAKE Information
Production Rules (P, S, M, D)
Production Rules (P, S, M, D) Production Quality and Policies (EM.5)
Information Infrastructure Plan (P, S) Reports, Information, and Documents (P, S, M, D)
(P) Capacity Requirements, Production Orders Planned (S) Incoming Product Information (D) Returned Product Information
(P) Production Plans and Budgets (S) MRO Parts Availability (EM.2) Production Quality and Policies Equipment and Facilities Monitoring Information Manufacturers Recommended Maintenance Schedules & Specifications
EM.5 EM.4 Manage InProcess Products (WIP) Manage Equipment and Facilities
WIP Handling Rules, Move Information and Methods (P, S, M1.2, M2.2, M3.3, EM.6, D)
122
Preventative Maintenance and Calibration Schedule (P, S, M1.1, M2.1, M3.2) Equipment and Facilities Schedules and Plans (M1.1, M2.1, M3.2) Equipment and Facilities Replacement and Disposition Plans (P, EM.6) Parts and Services Consumed (S) Equipment and Facilities Maintenance History (S, M) Production Status (EM.7) April 2003
EM: Enable Make

Production Orders Planned and Actual Reports (P) Capacity Requirements (S) Supplier Agreement (M1.2, M2.2, M3.3, D) Product Location Information (P, S, M, EM.4, D) WIP Handling Rules (EM.5) Equipment and Facilities Replacement and Disposition Plans (EM.7) Projected Delivery Requirements
(P) Supply Chain Plans, Planning Data (EM.5) Production Status
EM.7 EM.6 Manage Transportation Manage Production Network
WIP Location Rules (M1.2, M2.2, M3.3, D2.8) WIP Move Information and Methods (P, S, M, D)
Internal Capacity (P, S) Cost to Produce (P) Projected Delivery Requirements (P, EM.6, D)
(P, S, M) External Regulatory Information Corporate Objectives and Strategies Product Design/Claims Equipment and Facility Characteristics
EM.8 Manage Production Regulatory Compliance
Conformance Rules (M) Conformance Plan (S, M)
123
April 2003
Enable Process: Manage Production Rules Enable Process Definition
Process Number: EM.1
The process of establishing, maintaining, and enforcing rules for managing production details in line with business strategy, goals, and objectives. Production details include part/item master, bills of materials/formulas, routings, processes, equipment requirements, tooling, and other information specifying the method of production for a particular product.
Metric
None Identified None Identified Production Rules Preparation Cycle Time (PRPCT) Plant Level Order Management Costs Total Internal and/or External Costs That Are The Result of Inaccurate Production Rule Details % Utilization of Production Rules Preparation
Best Practices
Attribute-Based Process Planning On Line Access And Notification Of Tooling And Equipment Information Automated Engineering Specifications Automated Links To Existing CAD & CAM Information Automatic Generation / Configuration Of Tooling / Set-Up Instructions Pre-Defined Manufacturing Design Rules Automatic Link To Recipe Management, PLC Program, CNC Program Systems, Etc., To Deliver New Manufacturing Documentation Automatic Notification When To Begin And When To Complete Storage And Configuration Management For Release And Revision Control Of Final Documents Electronic Documentation And Imaging Document Control Genealogy Tracking Design For Production
Features
Computer aided process planning / recipe management Delivery of tooling and equipment details drawings Automated Intelligence (Heuristic) - based engineering specifications system Electronic hypertext or links to existing database of detail/parts/setup sketches/drawings Parametric driven (Group Technology - based) manufacturing design system Libraries of manufacturing capabilities or design envelopes Seamless application interface to manufacturing planning documentation and CAM systems Workflow/Groupware Product data management (PDM) or Electronic Data Management (EDM) feature set Graphical display of drawings, diagrams, recipes/formulas, specifications, instructions, etc., to all users Control who can create, revise and access information Where-used listing of as-planned vs. as-built documentation Table of manufacturing capacities or design envelops (capacities; envelop sizes; tank, vessel or batch sizes)
124
April 2003
Inputs
Corporate Objectives and Strategies Functional strategies Business Plans Production Plans Product Design Production Capability
Plan
EP.4, .5, .6. P3.4, P EP, PM
Source
Make
Deliver
Outputs
Production Rules
Plan
P
Source
S
Make
M
Deliver
D
125
April 2003
Enable Process: Manage Production Performance Enable Process Definition
The process of developing and maintaining performance standards and analysis methods to compare actual production performance against the established standards. This process allows the development and implementation of a course of action to achieve targeted performance.
Metric
Percent standards completed on time Percentage of right first-time corrective actions None Identified Time interval between a Performance Standard request and availability. Costs Associated with Managing Production Performance as a % Manufacturing Controllable Cost. None Identified
Best Practices
Standards and measurements aligned to maximize supply chain performance Real Time Performance Measurement Reporting Systems Periodic Review of Standards
Features
Internal/external benchmarking, industry standards, customer/supplier alignment agreements, visibility of key performance indicators Systems to collect production information online generate reports upon request by operators, and track progress against schedule and standards. Process for establishing and maintaining review schedules
Inputs
Business Plans Corporate Objectives and Strategies Product Design/Quality Functional Strategies, Production Plans, Production Capability
Plan
Source
Make
Deliver
Outputs
Production Rules Production Quality and Policies
Plan
P
Source
S
Make
M EM.5
Deliver
D
126
April 2003
Enable Process: Manage MAKE Information Enable Process Definition Performance Attributes
Reliability
The process of managing, collecting, maintaining, and communicating information to support MAKE planning and execution processes. The information to be managed includes production, order and process data.
Metric
% Of time data is available when needed % Of data accuracy Production Process Validation Frequency Decision Timeframe Ratio None Identified Time from occurrence of an event to dissemination of the information Ratio of the Cost of Managing MAKE Information/Manufacturing Controllable Costs % Of information management assets used / production assets
Best Practices
On-demand access of Production Information
Features
Data Collection and Display Systems designed for efficient performance of value-added operations in production. This could include using PLC, Machine Interface, bar code, Radio Frequency Communication, Radio Frequency Identification, Magnetic Stripe, Smart Cards, etc., to enable data collection Enter, Process, and Deliver information about the manufacturing process to management using information systems that span the enterprise Historical trending, cause and effect analysis, and Key Performance Indicators Scheduling reviews of processes for possible improvements Electronic management of products and orders with access to data via Web-based tools.
Utilize Enterprise Information Systems Continuous Improvement On-demand access to available to promise (ATP), production schedules and inventory status by internal operations and customers.
Inputs
Information Needed to Create and Maintain IT Information Needs Analysis Systems Capability Information from Business Processes
Plan
P P
Source
S S S
Make
M M M
Deliver
D D
Outputs
Information Infrastructure Plan Reports, Information, and Documents
Plan
P P
Source
S S
Make
M
Deliver
D
127
April 2003
Enable Process: Manage In-Process Products (WIP) Process Element Definition Performance Attributes
The process of establishing and maintaining limits or levels, replenishment models, ownership, product mix and stocking locations for In-Process Product (WIP).
Metric
WIP Inventory cycle-counting accuracy % Downtime due to non-availability of WIP None Identified None Identified Cost Of In-Process Product (WIP) Damaged from Handling/Storage as a Percentage of Total Material Cost Cost of handling of WIP Cost of storage space Administrative costs associated with handling/storage of WIP % Equipment utilization for handling/storage of WIP % Space utilization for WIP storage
Assets
Best Practices
First In First Out Minimizing In-Process Product (WIP) Supplier Managed Inventory Minimum Product Handling
Features
Part / WIP location by date received for those parts that must be stocked or staged in a holding area WIP Storage Management System Efficient Space Utilization Implementing Pull Systems The supplier is responsible for maintaining inventory levels at the point of use. The software system verifies usage, receiving, and payment functions. Move high frequency used inventory close to point of use. For example, the system should provide the frequency of picks by part number so that high frequency picks can be moved to convenient locations or part pick quantities increased. Tracking, genealogy System data field to specify where the part / product shipping container should be removed. Best practice is to remove the dunnage as soon as possible unless part / product damage will result. Reuse of intermediate WIP containers for finished goods. No packing and unpacking time required. Recyclable or no containers where appropriate. No discarded material.
In-Process Product (WIP) Handling Rules Dunnage Control
Optimize Packing
Inputs
Capacity Requirements, Production Orders Planned Incoming Sourced Product Information Returned Product Information
Plan
P
Source
S
Make
Deliver
Outputs
WIP Handling Rules, Move Information and Methods
Plan
P
Source
S
Make
M1.2, M2.2, M3.3, EM.6
Deliver
D
128
April 2003
Enable Process: Manage MAKE Equipment and Facilities Process Element Definition
The process of specifying maintaining and dispositioning MAKEs capital assets to operate the supply chain production processes. This includes repair, alteration, calibration and other miscellaneous items to maintain production capabilities.
Metric
Unplanned Maintenance Downtime % of total Production Time Percentage Completed PM Work Orders Mean Time Between Failure None identified Mean Time to Repair Asset % Of New or Modified Equipment & Facilities Available when and where needed. Equipment/Facility Maintenance Cost as % of Manufacturing Controllable Cost Actual Asset Life Maintenance Cost as % of Replacement Value
Best Practices
Total Preventative Maintenance Program
Features
Automatically generated TPM repair schedules integrated with MRP systems, electronic equipment repair history, parts listings, part stores inventory & reorder points, automatic store room parts purchases, Shop floor access to electronic data base of equipment line drawings, electrical wiring diagrams, parts listing reference guide and part cost lists. Changeover process flow element identification, instructional directions to conduct changeover, and measurement tool, which can be used to prioritize and track results of improvement efforts. Software to identify operational constraints to the MAKE processes to assist in directing resources toward bottleneck functional areas. Software to capture actual performance history / costs of operations with capability of predicting best cost action plans relating to maintaining equipment and facilities. System software to list checklist items, report results of audit & forward actions to be taken E.D.I. linkage of Inventory Information Database for equipment to contain expected results of analysis, allow entry of test readings, and have capability of generating desired reports, which could highlight suggested actions based upon readings obtained, track maintenance completed, contain a help-file to be consulted Rules for deciding appropriate disposition. Outsourcing strategies including the use of Application Service Providers (ASPs), web-based maintenance/diagnostic assistance and MRO parts.
Changeover Reduction / Continuous Improvement Program
Factory Floor Electronic Decision Making Information System Facility & Equipment Environmental / Safety Audit System Supplier Managed Inventory Of Parts Predictive Maintenance Monitoring (Heat, Noise, Lubrication Composition & Vibration)
Systematic Disposition Of Equipment Minimize capital assets required and maintenance costs.
129
April 2003
Inputs
Production Plans and Budgets MRO Parts Availability Production Quality and Policies Equipment and Facilities Monitoring Information Manufacturers Recommended Maintenance Schedules & Specifications
Plan
P
Source
S
Make
M EM.2
Deliver
Outputs
Preventative Maintenance and Calibration Schedule Equipment and Facilities Schedules and Plans Equipment and Facilities Replacement and Disposition Plans Parts and Services Consumed Equipment and Facilities Maintenance History Production Status
Plan
P
Source
S
Make
M1.1, M2.1, M3.2 M1.1, M2.1, M3.2
Deliver
P S S M EM.7
130
April 2003
Enable Process: Manage Transportation (WIP) Enable Process Definition Performance Attributes
The process of transporting In-Process Product (WIP). This includes management of the activities associated with in transit handling and movement of In-Process Product (WIP).
Metric
% Downtime due to non-delivery of WIP Time required to move In-Process Product (WIP) material None Identified Cost Of In-Process Product (WIP) Damaged from Handling/Storage as a Percentage of Total Material Cost Cost of handling and movement of in transit WIP materials Cost of in transit storage space Administrative Costs Associated with In-Transit Handling/Movement of In-Process Product % Equipment utilization for in transit handling and movement of WIP
Assets
Best Practices
Short Move Paths
Features
Software that allows for input of the distance that particular parts / WIP need to be moved. This software then needs to provide a report based on the cubic feet of material times distance moved by part number Reduction of WIP handling through automation (i.e. AGVs and ASRS) and process improvement (i.e. reduction of handling steps, shorter move paths)
Reduce In-Process Product (WIP) Handling
Inputs
Production Orders Planned and Actual Reports Capacity Requirements Supplier Agreement Sourced Product Location Information WIP Handling Rules Equipment and Facilities Replacement and Disposition Plans Projected Delivery Requirements
Plan
P
Source
S
Make
Deliver
M1.2, M2.2, M3.3 EM.4 EM.5 EM.7
D D
Outputs
WIP Location Rules WIP Move Information and Methods
Plan
P
Source
S
Make
M1.2, M2.2, M3.3 M
Deliver
D2.8 D
131
April 2003
Enable Process: Manage Production Network Process Definition Performance Attributes

The process of identifying and maintaining a network of intra-company production units that deliver specific semifinished materials or product sets to the final production site.
Metric
% on time, % rejects Total manufacture time Time for network re-design None identified ROTA (return on total assets)
Best Practices
JIT environment Collaborative planning/scheduling Production reporting/status
Features
Schedule visibility, on-line communications between source and demand Interactive, on-line planning/scheduling systems. Capacity planning systems with accurate production capability data. Real time monitoring of production status and In-Process Product (WIP)
Inputs
Supply Chain Plans, Planning Data Production Status
Plan
P
Source
Make
EM.5
Deliver
Outputs
Internal Capacity Cost to Produce Projected Delivery Requirements
Plan
P P P
Source
S
Make
EM.6
Deliver
D
132
April 2003
Enable Process: Manage MAKE Regulatory Compliance Enable Process Definition Performance Attributes
The process of identifying and complying with regulatory documentation and process standards set by external entities (eg government)
Metric
% Regulations met by required date Severity of instances of non-conformance per unit time Downtime in MAKE due to compliance issues Regulatory documentation cycle time Time to Comply with regulatory changes Cost of compliance including administrative costs Cost of noncompliance % Cost of assets used for compliance/total MAKE asset cost
Best Practices
Automatic Generation And Submission Of Conformance Documents Maintaining Repository Of Current Regulatory Requirements Automated Conformance Monitoring And Control
Features
Software specific to industry regulations and standards (eg may be software to produce MSDS documents, or FDA requirements, etc.) Electronic subscription and publication of conformance documentation. Electronic Document Management System features. Internal automatic notification of conformance, including holding of product until requirements are met
Inputs
External Regulatory Information Corporate Objectives and Strategies Product Design/Claims Equipment and Facility Characteristics
Plan
P
Source
S
Make
M
Deliver
Outputs
Conformance Rules Conformance Plan
Plan
Source
S
Make
M M
Deliver
133
April 2003
DELIVER
134
April 2003
D1: Deliver Stocked Product

(Carrier) Routing Guide (Carrier) Rated Carrier Data
(P2.4) Sourcing Plans (P3.4) Production Plans (P4.4) Delivery Plans (S, M) Inventory Availability (M1.1) Production Schedule
(Customer) Customer Order (Customer) Deliver Contract Terms (Customer) Customer Replenish Signal (Customer) Inquiry
D1.7 Select Carriers & Rate Shipments
D1.6
D1.5
D1.4
D1.3 Reserve Inventory & Determine Delivery Date
D1.2
D1.1
Route Shipments
Plan & Build Loads
Consolidate Orders
Receive, Enter & Validate Order
Process Inquiry & Quote
Scheduled Deliveries (P)
Load Information (P4.2) Plan and Build Loads Information (SR2.4)
Order Backlog (P1.1, Daily Shipment P4.1) Volume Inventory Availability/ Delivery Date (P4.2) Replenishment Signal (S1.1) (D) Consolidated Product
Validated Order Optional Payment
(S1.1) Scheduled Receipts (S1.4) Inventory Availability (D) Inventory (M1.1) Production Schedule Availability (M1.6) Product Release (SR2.2) Authorization to Scrap (SR2.2) Authorization to Return to Service D1.8 D1.9
(D) Advanced Ship Notice
D1.10 Load Vehicle Generate Ship Docs, Verify Credit & Ship Product
D1.11 Receive & Verify Product at Customer Site
D1.12
D1.13
From SOURCE or MAKE
Receive Product at Warehouse
Pick Product
Install Product
Invoice
Inventory Availability (D)
Shipping Documents (carrier, customer, government) Delivered End Items (customer) Shipments (P1.1) Load, Shipping, Verify, and Credit Information (SR2.5) 135
Payment
April 2003
Process Category: Deliver Stocked Product Process Category Definition Performance Attributes
Process Number: D1
The process of delivering product that is maintained in a finished goods state prior to the receipt of a firm customer order.
Metric
Fill Rate Published Delivery Cycle Time Deliver Cycle Time Upside Delivery Flexibility Downside Delivery Flexibility Order Management Costs Finished Goods Inventory Days of Supply
Best Practices
Rapid replenishment, VMI, EDI Electronic Catalogues/Malls Internet Ordering Efficient Consumer Response (ECR); Quick Response
Features
None Identified None Identified None Identified Demand Planning, Deployment, Scheduling
136
April 2003
Process Element: Process Inquiry & Quote Process Element Definition Performance Attributes
Process Element Number: D1.1
Receive and respond to general customer inquiries and requests for quotes
Metric
# Of Call backs as % of total inquiries None Identified None Identified Order Management Costs-Not company specific None Identified
Best Practices
Quote capability, without reserving inventory, which can be converted into an order in a single step Single point of contact for all order inquires (including order entry)
Features
Inputs
(Customer) Inquiry
Plan Plan
Source Source
Make Make
Deliver Deliver
Outputs
137
April 2003
Process Element: Receive, Enter & Validate Order Process Element Definition
Receive orders from the customer and enter them into a companys order processing system. Orders can be received through phone, fax, or electronic media. Technically examine orders to ensure an orderable configuration and provide accurate price. Check the customers credit. Optionally accept payment.
Metric
None Identified Customer Signature/Authorization to Order Receipt Time Order Receipt to Order Entry Complete Time Upside Order Flexibility Downside Order Flexibility Create Customer Order Costs Order Entry and Maintenance Costs None Identified
Best Practices
Electronic Commerce (customer visibility of stock availability, use of hand-held terminals for direct order entry, confirmation, credit approval), On-line stock check and reservation of inventory Enable real-time visibility into backlog, order status, shipments, scheduled material receipts, customer credit history, and current inventory positions Continuous Replenishment Programs; Vendor Managed Inventory, Telemetry to automatically communicate replenishment of chemicals Remote (sales, customers) order entry capability Automatic Multi-level Credit Checking: Dollar Limits; Days Sales Outstanding; Margin Testing Value Pricing based on Cost to Serve; EDLP; Cost Plus Pricing
Features
EDI applications and integrated order management
None Identified
Integrated demand/deployment planning to customer location driven by POS; Customer movement data None Identified Integrated Order/Financial Management Activity Based Costing; Integrated Order Management by Customer by Line Item
Inputs
(Customer) Customer Order (Customer) Deliver Contract Terms (Customer) Customer Replenish Signal
Plan
Source
Make
Deliver
Outputs
Validated Order Optional Payment
Plan
Source
Make
Deliver
138
April 2003
Process Element: Reserve Inventory & Determine Delivery Date Process Element Definition Performance Attributes
Inventory (both on hand and scheduled) is identified and reserved for specific orders and a delivery date is committed and scheduled.
Metric
Delivery Performance To Customer Commit Date Order Receipt to Order Entry Complete Time None Identified Finished Goods Inventory Days of Supply Order Fulfillment Costs Finished Goods Inventory Carry Cost
Best Practices
EDI links between manufacturing and distributor to achieve visibility of complete finished goods inventory and expected shipments Automatic reservation of inventory and dynamic sourcing of product for single shipment to customer ATP and Product Reservation Priority-based inventory reservations, for key customers, with FIFO allocation for all others Inventory allocation exception process is clearly defined and jointly owned by manufacturing and sales
Features
None Identified
Integrated order management system that treats each order line as a separate order with integration to inventory source and status; Real-time inventory management Integration with scheduling and inventory management None Identified None Identified
Inputs
Sourcing Plans Production Plans Deliver Plans Inventory Availability Production Schedule
Plan
P2.4 P3.4 P4.4
Source
Make
Deliver
M M1.1
Outputs
Order Backlog Inventory Availability/Delivery Date Replenishment Signal
Plan
P1.1, P4.1 P4.2
Source
S1.1
Make
Deliver
139
April 2003
Process Element: Consolidate Orders Process Element Definition Performance Attributes

The process of analyzing orders to determine the groupings that result in least cost/best service fulfillment and transportation.
Metric
Order Consolidation Profile Order Entry Complete to Order Ready for Shipment Time None Identified Transportation Costs None Identified
Best Practices
Consolidate orders by customer, source, traffic lane, carrier, etc. Combine consolidation needs with other products/divisions/companies
Features
Integrated load planning and building with warehouse management None Identified
Inputs Outputs
Daily Shipment Volume
Plan Plan
Source Source
Make Make
Deliver Deliver
140
April 2003
Process Element: Plan & Build Loads Process Element Definition

Transportation modes are selected and efficient loads are built.
Process Element Number: D1.5 Metric

None Identified None Identified Upside Shipment Flexibility Downside Shipment Flexibility Transportation Costs None Identified
Best Practices
Consolidation of inbound and outbound requirements Build load in stop sequence (i.e. 1st truck destination loaded last, etc.) CRP & VMI loads optimized for utilization
Features
Integrated inbound/outbound transportation planning Same as above Integration with CRP/VMI vendor systems
Inputs Outputs
Load Information
Plan Plan
P4.2
Source Source
Make Make
Deliver Deliver
Return Return
141
April 2003
Process Element: Route Shipments Process Element Definition

Loads are consolidated and routed by mode, lane and location.

None Identified Order Entry Complete to Order Ready for Shipment Time None Identified Transportation Costs None Identified
Best Practices
CRP/VMI Consolidation of Carriers Carrier/Route Optimization based on continuous movement and consolidation/pooling Shipment tracking and tracing
Features
Integrated Load Building; Routing & Scheduling with Advanced Ship Notice (ASN) Transportation Modeling and Rate Analysis Route scheduling, carrier selection, and rating Satellite communications & GPS
Inputs
(Carrier) Routing Guide (Carrier) Rated Carrier Data
Plan
Source
Make
Deliver
Outputs
Plan
Source
Make
Deliver
142
April 2003
Process Element: Select Carriers & Rate Shipments Process Element Definition Performance Attributes
Specific carriers are selected by lowest cost per route and shipments are rated and tendered.
Metric
None Identified Carrier Quote Response Time None Identified Transportation Costs None Identified
Best Practices
Select carriers by least cost per shipment and rate using actual rates prior to release to billing
Features
Rules based carrier selection and actual rate database
Inputs Outputs
Scheduled Deliveries
Plan Plan
P
Source Source
Make Make
Deliver Deliver
143
April 2003
Process Element: Receive Product at Warehouse Process Element Definition
The activities such as receiving product, verifying, recording product receipt, determining put-away location, putting away and recording location that a company performs at its own warehouses. May include quality inspection.
Metric
Incoming Material Quality Dock To Stock Cycle Time Upside Delivery Flexibility Downside Delivery Flexibility Distribution Costs Incoming Material Costs Product Acquisition Costs Finished Goods Inventory Days of Supply Inventory Obsolescence as a % of Total Inventory End-of-Life Inventory
Best Practices
Automatic Identification Download P.O. & Advanced Ship Notices for Automated Receiving and Put away Dynamic location assignment including lot control, zoned put away, quality assurance, ABC frequency of access
Features
Bar Coding & Radio Frequency Communications Integration with Procurement Systems & Electronic Commerce with Vendors Real time inventory control, stock locator, and rules based put away logic
Inputs
Scheduled Receipts Inventory Availability Production Schedule Finished Product Release
Plan
Source
S1.1 S1.4
Make
M1.1 M1.6
Deliver
Return
Outputs
Plan
Source
Make
Deliver
D
Return
144
April 2003
Process Element: Pick Product Process Element Definition Performance Attributes

The series of activities including retrieving orders to pick, determining inventory availability, building the pick wave, picking the product, recording the pick and delivering product to shipping in response to an order.
Metric
Fill Rates Order Entry Complete to Order Ready for Shipment Time Upside Shipment Flexibility Downside Shipment Flexibility Distribution Costs None Identified
Best Practices
Dynamic simulation of picking requirements optimized for labor, cost, and time Dynamic location assignment including lot control, zoned picking, quality assurance Use of speed racks for automated material handling
Features
Rules based picking logic and simulation Real time inventory control, stock locator, and rules based picking logic None Identified
Inputs
Plan Plan
Source Source
Make Make
Deliver
D
Outputs
Deliver
145
April 2003
Process Element: Load Vehicle, Generate Shipping Documentation, Verify Credit & Ship Product Process Element Definition Performance Attributes
The series of task including placing product onto vehicles, generating the documentation necessary to meet internal, customer, carrier and government needs, and sending the product to the customer.
Metric
Delivery Performance to Customer Commit Date Delivery Performance to Customer Request Date Perfect Order Fulfillment Order Entry Complete to Order Ready for Shipment Time Upside Shipment Flexibility Downside Shipment Flexibility None Identified None Identified
Best Practices
Advanced Shipping Notices & UCC128 container labeling Integrated Credit Checking Shipment Tracking Electronic generation and download of shipping documents Full visibility of credit history by shipping personnel
Features
Bar coding; EDI; integrated transportation/warehouse management Interface to suppliers shipping system to financials None Identified None Identified None Identified
Inputs
Consolidated Finished Product
Plan Plan
Source Source
Make Make
Deliver
D
Return Return
Outputs
Shipping Documents (carrier, customer, government) Delivered End Items (customer) Shipments
Deliver
P1.1
146
April 2003
Process Element: Receive & Verify Product at Customer Site Process Element Definition Performance Attributes
The process of receiving the shipment at the customer site and verifying that the order was shipped complete and that the product is of sufficient quality.
Metric
Perfect Order Fulfillment Order Ready for Shipment to Customer Receipt of Order Time Upside Delivery Flexibility Downside Delivery Flexibility None Identified None Identified
Best Practices
Advanced Shipping Notices & UCC128 container labeling Shipment Tracking
Features
Bar coding; EDI; integrated transportation/warehouse management None Identified
Inputs
Advanced Ship Notice
Plan Plan
Source Source
Make Make
Deliver
D
Outputs
Deliver
147
April 2003
Process Element: Install Product Process Element Definition Performance Attributes

When necessary, the process of preparing and installing the product at the customer site. The product is fully functional upon completion.
Metric
% Faultless Installations Installation Cycle Time (Measured in Days) Upside Installation Flexibility Downside Installation Flexibility None Identified None Identified
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Plan Plan
Source Source
Make Make
Deliver Deliver
148
April 2003
Process Element: Invoice & Receive Payment Process Element Definition
A signal is sent to the financial organization that the order has been shipped and that the billing process should begin and payment be received or be closed out if payment has already been received. Payment is received from the customer within the payment terms of the invoice.
Metric
% Of Faultless Invoices Days Sales Outstanding Upside Delivery Flexibility Downside Delivery Flexibility Customer Invoicing/Accounting Costs Days Sales Outstanding
Best Practices
Utilize EDI and EFT for payment to speed closing of receivables and to reduce processing costs Provide visibility to and quickly escalate delinquent accounts for resolution Electronic transfer of shipment information to finance
Features
EDI transaction and network services Integrated accounts receivables None Identified
Inputs Outputs
Payment
Plan Plan
Source Source
Make Make
Deliver Deliver
149
April 2003
D2: Deliver Make-to-Order Product

Routing Guide Rated Carrier Data (P2.4) Sourcing Plans (P3.4) Production Plans (P4.4) Delivery Plans (S) Product Availability (M2.1) Production Schedule (ED.1) Order Rules (ED.1) Configuration Rules Credit History Contract Terms (Customer) Inquiry
D2.7 Select Carriers & Rate Shipments
D2.6
D2.5
D2.4
D2.3 Reserve Resources & Determine Delivery Date
D2.2
D2.1
Route Shipments
Plan & Build Loads
Consolidate Orders
Receive, Configure, Enter & Validate Order
Process Inquiry & Quote
Scheduled Deliveries (P)
Order Signal (P2.1, P3.1) Booked Order Order Backlog (P4.1) (ED.3) Inventory Availability/ Delivery Date Optional (P4.2) Payment Replenishment Signal (S2.1) Available to Promise Date (M) Inventory Status (P) (D) (M) (S) (D) Consolidated Products (D) Advanced Ship Notice)
Order quote (customer)
(S2.4) Inventory Availability (M2.1) Production Schedule (M2.6) Finished Product Release
D2.8
D2.9
D2.11
D2.12
From Source or Make
Pick Staged Product
Load Vehicle Generate Ship Docs. Verify Credit & Ship Product
Test & Install Product
Invoice
Consolidated Product (D)
Shipping Documents (Carrier) Delivered End Items (Customer) 150
Installed Product (Customer)
Payment
April 2003
Process Category: Deliver Make-to-Order Product Process Category Definition
Process Number: D2
The process of delivering product that is manufactured, assembled or configured from standard parts or subassemblies. Manufacture, assembly or configuration will begins only after the receipt and validation of a firm customer order.
Reliability
Metric
Fill Rates Delivery Performance to Customer Commit Date Delivery Performance to Customer Request Date Perfect Order Fulfillment Published Delivery Cycle Time Deliver Cycle Time Upside Delivery Flexibility Downside Delivery Flexibility Order Management Costs Finished Goods Inventory Days of Supply Inventory Obsolescence as a % of Total Inventory-not company specific
Best Practices
None Identified
Features
None Identified
151
April 2003
Process Element: Process Inquiry & Quote Process Element Definition Performance Attributes
Receive and respond to general customer inquiries and requests for quotes.
Metric
# Call Backs As % Of Total Inquiries None Identified None Identified Order Management Costs None Identified
Best Practices
Quote capability, without reserving inventory, which can be converted into an order in a single step Quote capability, without reserving inventory, which can be converted into an order, but does not generate build signal or reserve inventory capacity Single point of contact for all order inquiries (including order entry)
Features
None Identified
Inputs
(Customer) Inquiry
Plan Plan
Source Source
Make Make
Deliver Deliver
Outputs
Order quote (customer)
152
April 2003
Process Element: Receive, Configure, Enter & Validate Order Process Element Definition
Receive orders from the customer and enter them into a companys order processing system. Orders can be received through phone, fax, or through electronic media. Configure your product to the customers specific needs, based on standard available parts or options. Technically examine order to ensure an orderable configuration and provide accurate price. Check the customers credit. Optionally accept payment.
Metric
Perfect Order Fulfillment Customer Signature/Authorization to Order Receipt Time Order Receipt to Order Entry Complete Time Upside Order Flexibility Downside Order Flexibility Create Customer Order Costs Order Entry and Maintenance Costs None Identified
Best Practices
Electronic Commerce (customer visibility of stock availability, use of hand-held terminals for direct order entry, confirmation, credit approval), On-line stock check and reservation of inventory Order entry is organized by customer segment Customers receive differentiated service based on volume of business Customer team is empowered to fully service customer requests, including formal orders and ad hoc requests Customers have one point of contact for all products Enable real-time visibility into backlog, order status, shipments, scheduled material receipts, customer credit history, and current inventory positions Continuous Replenishment Programs; Vendor Managed Inventory, Telemetry to automatically communicate replenishment of chemicals Remote (sales, customers) order entry capability Automatic Multi-level Credit Checking: Dollar Limits; Days Sales Outstanding; Margin Testing Value Pricing based on Cost to Serve; EDLP; Cost Plus Pricing Automated Configuration Management
Features
EDI applications and integrated order management
None Identified
None Identified
Integrated demand/deployment planning to customer location driven by POS; Customer movement data None Identified Integrated Order/Financial Management Activity Based Costing; Integrated Order Management by Customer by Line Item Configuration
153
April 2003
Inputs
Order Rules Configuration Rules Credit History Contract Terms
Plan
Source
Make
Deliver
ED.1 ED.1
Outputs
Booked Order Optional Payment
Plan
Source
Make
Deliver
ED.3
154
April 2003
Process Element: Reserve Resources & Determine Delivery Date Process Element Definition Performance Attributes
Inventory and/or planned capacity is identified and reserved for specific orders, and a delivery date is committed and scheduled.
Metric
Delivery Performance To Customer Commit Date Order Receipt to Order Entry Complete Time None Identified Order Fulfillment Costs Capacity Utilization
Best Practices
Dynamic deployment based on constraint based planning and optimal scheduling Automatic reservation of inventory and dynamic sourcing of product for single shipment to customer ATP and Product Reservation
Features
Advanced planning and scheduling logic with constraint, cost, and resource optimization Integrated order management system that treats each order line as a separate order with integration to inventory source and status; Real-time inventory management Integration with scheduling and inventory management
Inputs
Sourcing Plans Production Plans Delivery Plans Product Availability Production Schedule
Plan
P2.4 P3.4 P4.4
Source
Make
Deliver
S M2.1
Outputs
Order Signal Order Backlog Inventory Availability/Delivery Date Replenishment Signal Available to Promise Date Inventory Status
Plan
P2.1, P3.1 P4.1 P4.2
Source
Make
Deliver
S2.1 P S M M D
155
April 2003
Process Element: Consolidate Orders Process Element Definition Performance Attributes

The process of analyzing orders to determine the groupings that result in least cost/best service fulfillment and transportation.
Metric
None Identified Order Entry Complete to Start Manufacture Time None Identified Distribution Costs None Identified
Best Practices
Consolidate orders by customer, source, traffic lane, carrier, etc.
Features
Integrated load planning and building with warehouse management
Inputs Outputs
Plan Plan
Source Source
Make Make
Deliver Deliver
156
April 2003
Process Element: Plan & Build Loads Process Element Definition

Transportation modes are selected and efficient loads are built.

None Identified Order Entry Complete to Start Manufacture Time Upside Shipment Flexibility Downside Shipment Flexibility Distribution Costs None Identified
Best Practices
Consolidation of inbound and outbound requirements Build load in stop sequence (i.e. 1st truck destination loaded last, etc.) CRP & VMI loads optimized for utilization
Features
Integrated inbound/outbound transportation planning Same as above Integration with CRP/VMI vendor systems
Inputs Outputs
Plan Plan
Source Source
Make Make
Deliver Deliver
157
April 2003
Process Element: Route Shipments Process Element Definition

Loads are consolidated and routed by mode, lane, and location.

Best Practices
CRP/VMI Consolidation of Carriers Carrier/Route Optimization based on continuous movement and consolidation/pooling Shipment tracking and tracing
Features
Integrated Load Building; Routing & Scheduling with Advanced Ship Notice (ASN) Transportation Modeling and Rate Analysis Route scheduling, carrier selection, and rating Satellite communications & GPS
Inputs
Routing Guide Rated Carrier Data
Plan
Source
Make
Deliver
Outputs
Plan
P
Source
Make
Deliver
158
April 2003
Process Element: Select Carriers & Rate Shipments Process Element Definition Performance Attributes
Specific carriers are selected by lowest cost per route and shipments are rated and tendered.
Metric
Best Practices
Select carriers by least cost per shipment and rate using actual rates prior to release to billing
Features
Rules based carrier selection and actual rate database
Inputs Outputs
Plan Plan
Source Source
Make Make
Deliver Deliver
159
April 2003
Process Element: Pick Staged Product Process Element Definition
The series of activities including retrieving orders to pick, verifying inventory availability, building the pick wave, picking the product, recording the pick and delivering product to shipping performed in the distribution center in response to an order.
Metric
On Time In Full Documentation Complete Manufacture to Order Ready for Shipment Time Upside Shipment Flexibility Downside Shipment Flexibility Distribution Costs None Identified
Best Practices
Dynamic simulation of picking requirements optimized for labor, cost, and time Dynamic location assignment including lot control, zoned picking, quality assurance
Features
Rules based picking logic and simulation Real time inventory control, stock locator, and rules based picking logic
Inputs
Inventory Availability Production Schedule Finished Product Release
Plan
Source
S2.4
Make
M2.1 M2.6
Deliver
Outputs
Consolidated Product
Plan
Source
Make
Deliver
D
160
April 2003
Process Element: Load Vehicle, Generate Shipping Documentation, Verify Credit, & Ship Product Process Element Definition Performance Attributes
The series of tasks including placing product onto vehicles, generating the documentation necessary to meet internal, customer, and government needs, and sending the product to the customer.
Metric
Delivery Performance to Customer Commit Date Delivery Performance to Customer Request Date Perfect Order Fulfillment Complete Manufacture to Order Ready for Shipment Time Order Ready for Shipment to Customer Receipt of Order Time Upside Shipment Flexibility Downside Shipment Flexibility Transportation Costs Field Finished Goods Inventory Days of Supply
Best Practices
Advanced Shipping Notices & UCC128 container labeling Integrated Credit Checking
Features
Bar coding; EDI; integrated transportation/warehouse management Interface to suppliers shipping system to financials
Inputs
Plan Plan
Source Source
Make Make
Deliver
D
Outputs
Shipping Documents (Carrier) Delivered End Items (Customer)
Deliver
161
April 2003
Metric
Perfect Order Fulfillment Customer Receipt of Order to Installation Complete Upside Delivery Flexibility Downside Delivery Flexibility None Identified None Identified
Best Practices
Features
Inputs
Advanced Ship Notice
Plan Plan
Source Source
Make Make
Deliver
D
Outputs
Deliver
162
April 2003
Process Element: Test & Install Product Process Element Definition Performance Attributes
When necessary, the process of preparing, testing and installing the product at the customer site. The product is fully functional upon completion.
Metric
% Faultless Installations Customer Receipt of Order to Installation Complete Upside Installation Flexibility Downside Installation Flexibility Installation Costs Field Finished Goods Inventory Days of Supply
Best Practices
Joint Service Agreements to document acceptable service levels in terms of installation costs, installation cycle time, etc. This would be effective between customer and supplier, and between internal functions such as Field Service, Manufacturing, Marketing and Order Management
Features
None Identified
Inputs Outputs
Installed Finished Product (Customer)
Plan Plan
Source Source
Make Make
Deliver Deliver
163
April 2003
Metric
% Faultless Invoices Deliver Cycle Time Upside Delivery Flexibility Downside Delivery Flexibility Customer Invoicing/Accounting Costs Days Sales Outstanding
Best Practices
Features
Inputs Outputs
Payment
Plan Plan
Source Source
Make Make
Deliver Deliver
164
April 2003
D3: Deliver Engineer-to-Order Product

Routing Guide Rated Carrier Data (P2.4) Sourcing Plans (P3.4) Production Plans (P4.4) Delivery Plans (M3.2) Production Schedule
RFQ/RFP
D3.6
D3.5
D3.4
D3.3 Enter Order, Commit Resources & Launch Program
D3.2
D3.1 Obtain & Respond to RFP/RFQ
Route Shipments & Select Carrier
Plan and Build Loads and Shipments
Schedule Installation
Negotiate & Receive Contract
Scheduled Deliveries (P) Scheduled Installation (Customer)
Order Signal (P2.1, P3.1) Order Backlog (P4.1) Resource Availability (P4.2) Replenishment Signal (S3.3) Order Information (M3.1)
Approved contract Optional Payment
Completed proposal
(S3.6) Inventory Availability (M3.2) Production Schedule (M3.7) Product Release
D3.7
D3.8
D3.10
D3.11
From Source or Make
Pick Staged Product
Load Vehicle Generate Ship Docs. Verify Credit & Ship Product
Test and Install Product
Invoice
Consolidated Product (D) Delivered End Items

Shipping Documents (Carrier)
Installed Product (Customer)
Payment
165
April 2003
Process Category: Deliver Engineer-to-Order Product Process Category Definition
Process Number: D3
The process of delivering a product that is designed, manufactured, and assembled from a bill of materials that includes one or more custom parts. Design will begin only after the receipt and validation of a firm customer order.
Metric
Delivery Performance to Customer Commit Date Delivery Performance to Customer Request Date Perfect Order Fulfillment Published Delivery Cycle Time Deliver Cycle Time Upside Delivery Flexibility Downside Delivery Flexibility Order Management Costs Finished Goods Inventory Days of Supply
Best Practices
None Identified
Features
None Identified
166
April 2003
Process Element: Obtain and Respond to Request for Proposal (RFP) / Request for Quote (RFQ) Process Element Definition Performance Attributes
The process of receiving a request for proposal or request for quote, evaluating the request (estimating the schedule, developing costs estimates, establishing price), and responding to the potential customer.
Metric
None Identified None Identified None Identified Order Management Costs None Identified
Best Practices
Use of CAD/CAE applications to simulate design, cost and manufacturing process Partnership with outside design firms to provide skills and capacity, as needed
Features
Inputs
RFQ/RFP
Plan Plan
Source Source
Make Make
Deliver Deliver
Outputs
Completed proposal
167
April 2003
Process Element: Negotiate & Receive Contract Process Element Definition Performance Attributes
The process of negotiating order details with customer (eg, price, schedule, product performance) and finalizing the contract. Optionally accept payment.
Metric
None Identified Customer Signature/Authorization to Order Receipt Time Upside Order Flexibility Downside Order Flexibility Create Customer Order Costs None Identified
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Approved contract Optional Payment
Plan Plan
Source Source
Make Make
Deliver Deliver
168
April 2003
Process Element: Enter Order, Commit Resources & Launch Program Process Element Definition Performance Attributes
The process of entering/finalizing the customers order, approving the planned resources (e.g., engineering, manufacturing, etc.) and officially launching the program.
Metric
None Identified Order Receipt to Order Entry Complete Time Upside Order Flexibility Downside Order Flexibility Order Fulfillment Costs None Identified
Best Practices
None Identified
Features
None Identified
Inputs
Sourcing Plans Production Plans Delivery Plans Production Schedule
Plan
P2.4 P3.4 P4.4
Source
Make
Deliver
M3.2
Outputs
Order Signal Order Backlog Resource Availability Replenishment Signal Order Information
Plan
P2.1, P3.1 P4.1 P4.2
Source
Make
Deliver
S3.3 M3.1
169
April 2003
Process Element: Schedule Installation Process Element Definition Performance Attributes

The process of evaluating the design and build schedules relative to customer requested installation date to determine installation schedule.
Metric
None Identified Order Entry Complete to Start Manufacture Time Upside Order Flexibility Downside Order Flexibility Order Fulfillment Costs None Identified
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Scheduled Installation (Customer)
Plan Plan
Source Source
Make Make
Deliver Deliver
170
April 2003
Process Element: Plan & Build Loads and Shipments Process Element Number: D3.5 Process Element Definition
The process of scheduling simultaneous and/or consolidated shipments, and planning and building loads.
Metric
None Identified Order Entry Complete Time to Order Ready for Shipment Upside Shipment Flexibility Downside Shipment Flexibility Distribution Costs None Identified
Best Practices
Consolidation of inbound and outbound requirements
Features
Integrated inbound/outbound transportation planning
Inputs Outputs
Plan Plan
P
Source Source
Make Make
Deliver Deliver
171
April 2003
Process Element: Route Shipments & Select Carriers Process Element Definition Performance Attributes
The process of consolidating and routing shipments by mode, lane, and location. Carriers are selected and shipments are rated.
Metric
None Identified Order Entry Complete Time to Order Ready for Shipment None Identified Distribution Costs None Identified
Best Practices
CRP/VMI Consolidation of Carriers Carrier/Route Optimization based on continuous movement and consolidation/pooling Shipment tracking and tracing Select carriers by least cost per shipment and rate using actual rates prior to release to billing
Features
Integrated Load Building; Routing & Scheduling with Advanced Ship Notice (ASN) Transportation Modeling and Rate Analysis Route scheduling, carrier selection, and rating Satellite communications & GPS Rules based carrier selection and actual rate database
Inputs
Routing Guide Rated Carrier Data
Plan
Source
Make
Deliver
Outputs
Plan
Source
Make
Deliver
172
April 2003
Process Element: Pick Staged Product Process Element Definition
The series of activities including retrieving orders to pick, verifying inventory availability, building the pick wave, picking the product, recording the pick and delivering product to shipping performed in the distribution center in response to an order.
Metric
None Identified Order Entry Complete Time to Order Ready for Shipment Time Upside Shipment Flexibility Downside Shipment Flexibility Distribution Costs Finished Goods Inventory Days of Supply
Best Practices
Dynamic simulation of picking requirements optimized for labor, cost, and time Dynamic location assignment including lot control, zoned picking, quality assurance
Features
Rules based picking logic and simulation Real time inventory control, stock locator, and rules based picking logic
Inputs
Inventory Availability Production Schedule Product Release
Plan
Source
S3.6
Make
M3.2 M3.7
Deliver
Outputs
Plan
Source
Make
Deliver
D
173
April 2003
Process Element: Load Vehicle, Generate Shipping Documentation, Verify Credit & Ship Product Process Element Definition Performance Attributes
The series of tasks including placing product onto vehicles, generating the documentation necessary to meet internal, customer, and government needs, and sending the product to the customer.
Metric
Delivery Performance to Customer Commit Date Delivery Performance to Customer Request Date Perfect Order Fulfillment Order Ready for Shipment to Customer Receipt of Order Upside Shipment Flexibility Downside Shipment Flexibility Transportation Costs Finished Goods Inventory Days of Supply
Best Practices
Advanced Shipping Notices & UCC128 container labeling Integrated Credit Checking
Features
Bar coding; EDI; integrated transportation/warehouse management Interface to suppliers shipping system to financials
Inputs Outputs
Shipping Documents (Carrier) Delivered End Items
Plan Plan
Source Source
Make Make
Deliver Deliver
174
April 2003
Metric
Perfect Order Fulfillment Customer Receipt of Order to Installation Complete Upside Delivery Flexibility Downside Delivery Flexibility None Identified None Identified
Best Practices
Features
Inputs Outputs
Plan Plan
Source Source
Make Make
Deliver Deliver
175
April 2003
Process Element: Test & Install Product Process Element Definition Performance Attributes
The process of preparing, testing and installing the product at the customer site. The product is fully functional upon completion.
Metric
% Faultless Installations Customer Receipt of Order to Installation Complete Upside Installation Flexibility Downside Installation Flexibility Installation Costs Field Finished Goods Inventory Days of Supply
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Installed Finished Product (Customer)
Plan Plan
Source Source
Make Make
Deliver Deliver
176
April 2003
Metric
% Of Faultless Invoices None Identified Upside Delivery Flexibility Downside Delivery Flexibility Customer Invoicing/Accounting Costs Days Sales Outstanding
Best Practices
Features
Inputs Outputs
Payment
Plan Plan
Source Source
Make Make
Deliver Deliver
177
April 2003
D4: Deliver Retail Product

(P4.4) Stocking Requirements (S1.4) Daily Replenishment Requirements Resource Availability On-demand Replenishment Requirements Vendor/DC inventory availability Shipping schedules (internal or 3PL) (S1.1) Scheduled Receipts (S1.4) Inventory Availability (M1.1) Production Schedule (M1.6) Finished Product Release (D4.2) Item Pick Sheet from Stocking Schedule Inventory in Stock Inventory available to ship ATP On-Order/backorder Replenishment quantities (D4.1) Stocking Schedule (S1.4, D4.3) Loaded Cart Plan-o-gram Data Vendor merchandising / co-op advertising agreements
D4.1
D4.2
D4.3
D4.4
Generate Stocking Schedule
Receive Product at the Store
Pick Product from Backroom
Stock Shelf
Stocking Schedule (D4.4) Promotional Plan Merchandising Plan (D4.4) Stocked Shelf Lost or dropped shopping carts Product data (linked/related SKUs) Customer data (preference)
Inventory Availability (D4.3)
Loaded Cart or Pallet (D4.4) Assorted by shelf order
Full Shelf Locations (D4.5)
(D4.5) Full Cart Customer profile/data Promotion/event calendar
Provide product or service training to employees or FAQs online Stage product or service adoption Goals / performance plans Measurement, monitoring and adjustment of service or product installation D4.7
D4.5
D4.6
Fill Shopping Cart
Checkout
Deliver and/or Install
Full Cart Ready for Checkout (D4.6)
Full Cart (Empty Cart) Satisfied Customer Customer loyalty / recurring visits Loyalty customer profile changes (more units, higher average ring, etc.) 178
Successful installation/ live system Low rates of failure Consistently high adoption rates High customer service and satisfaction levels
April 2003
Process Category: Deliver Retail Product Process Category Definition
Process Number: D4
Deliver Retail Products are the processes used to acquire, merchandise, and sell finished goods at a retail store. A retail store is a physical location that sells products (and services) direct to the consumer using a point of sale process (manual or automated) to collect payment. Merchandising at a store level is the stocking and restocking of products in designated storage locations to generate sales in a retail store.
Reliability
Metric
Shelf Stock Out % Replenishment Accuracy Replenishment Timeliness Shelf Space To Market Share Ratio Replenishment Lead Times Service Levels / Accuracy Retail Store Cost Days of Stock in Retail
Best Practices
None Identified
Features
None Identified
179
April 2003
Process Element: Generate Stocking Schedule Process Element Definition Performance Attributes
The process of scheduling resources to support item-stocking requirements.
Metric
None Identified Number of restocking events per day Cost efficiency/elasticity of shipping schedules Items stocked per FTE Accuracy of stocking None Identified
Best Practices
Automated pick list Push product on trailer arrival Labor scheduling that matches product flow
Features
System generated pick-lists based on picking / batching rules System prioritization of items coming off trucks vs. picked from back room Workforce management solution with flexible rules
Inputs
Stocking Requirements Daily Replenishment Requirements Resource Availability On-demand Replenishment Requirements Vendor/DC inventory availability Shipping schedules (internal or 3PL)
Plan
P4.4
Source
S1.4
Make
Deliver
Outputs
Stocking Schedule
Plan
Source
Make
Deliver
D4.4
180
April 2003
Process Element: Receive Product at the Store Process Element Definition Performance Attributes
The activities such as receiving product, verifying, recording product receipt, determining put-away location, putting away and recording location that a company performs at its own stores. May include quality inspection.
Metric
None Identified Dock To Stock Cycle Time Number of restocking events per day Cost efficiency/elasticity of shipping schedules Items stocked per FTE Accuracy of stocking None Identified
Best Practices
Automated pick list Push product on trailer arrival Labor scheduling that matches product flow
Features
System generated pick-lists based on picking / batching rules System prioritization of items coming off trucks vs. picked from back room Workforce management solution with flexible rules
Inputs
Scheduled Receipts Inventory Availability Production Schedule Finished Product Release
Plan
Source
S1.1 S1.4
Make
M1.1 M1.6
Deliver
Outputs
Plan
Source
Make
Deliver
D4.3
181
April 2003
Process Element: Pick Product from Backroom Process Element Definition
The process of retrieving restocking orders to pick, determining inventory availability, building a pick wave, picking item and quantity from a designated backroom warehouse location, recording the resulting inventory transaction, and delivering the product to point of stock.
Metric
Inventory inaccuracies during pick-process Time to Pick Minimum Stock Levels None Identified Labor $ per unitDirect Product Cost (DPC) None Identified
Best Practices
Automated directed picking Staging based on in-store zones Automated Replenishment of back stock based on min-stocking levels Defined stocking levels & criteria
Features
A pick list displayed on a handheld device that directs picks and relieves inventory from backroom locations Items are staged for re-stocking based on zones within the store. This minimizes restocking effort.
Inputs
Item Pick Sheet from Stocking Schedule Inventory in Stock Inventory available to ship ATP On-Order/backorder Replenishment Quantities
Plan
Source
Make
Deliver
D4.2
Outputs
Loaded Cart or Pallet Assorted by Shelf Order
Plan
Source
Make
Deliver
D4.4
182
April 2003
Process Element: Stock Shelf Process Element Definition
For restocks, the tasks associated with identifying the item location, stocking the shelf according to merchandise plans, and recording the appropriate inventory transaction. For promotional items and stock repositioning the tasks associated with shelf and point of sale preparation, stock placement, and end of sale activities.
Metric
Requirements fill % In-stock % Stocking Cycle Time None Identified Put-a-way Labor Cost Includes internal and/or external contract costs In Store Inventory Accuracy
Best Practices
Stocking is completed in zones Off peak stocking Item/shelf scanning upon put-a-way Proof of performance (promotion management) Scan displays for promo conformance
Features
Each area of the store has its own stocking plan and items are routed specifically to that area The majority of stocking is completed with minimal impact to or visibility from the customer Scan store shelves / bar codes to confirm put-a-way Same as abovescan using handheld and match with ad
Inputs
Stocking Schedule Loaded Cart Plan-o-gram Data Vendor merchandising / co-op advertising agreements
Plan
Source
S1.4
Make
Deliver
D4.1 D4.3
Outputs
Full Shelf Locations
Plan
Source
Make
Deliver
D4.5
183
April 2003
Process Element: Fill Shopping Cart Process Element Definition Performance Attributes

% Item Location Accuracy None Identified Rain check % % Shrinkage None Identified
Typical set of tasks associated with product selection, storage and movement through to checkout.
Best Practices
Items are relieved from inventory when item is removed from shelf Up & cross selling Substitution Multiple locations throughout store Measured and compared with same activity previous period (whether it is year ago, period ago, etc.) Loyalty card data
Features
RFID, smart cart or customer self-service reduces system inventory upon item pick Trained staff or automated systems (Internet) that recommend up-sell, cross-sell, and/or substitution Planned and tracked via a plan-o-gram system; Location specific product labeling DSS or portal tool that shows previous period performance and comparison for store management Use for comparison to previous sales activity/track new consumers, etc.
Inputs
Promotional Plan Merchandising Plan Stocked Shelf or full shelf locations? Lost or dropped shopping carts Product data (linked/related SKUs) Customer data (preference)
Plan
Source
Make
Deliver
D4.4
Outputs
Full Cart Ready for Checkout
Plan
Source
Make
Deliver
D4.6
184
April 2003
Process Element: Checkout Process Element Definition Performance Attributes

The processes and tasks associated with product checkout including scanning, method of payment, credit application and approval, service agreement, order confirmation, and/or invoice or receipt.
Metric
Price checks per cashier shift None Identified None Identified Checkout labor - % sales None Identified
Best Practices
Automatic customer payment Customer profile drives recognition upon checkout Notification of existing/future events or promotions
Features
RFID, smart cart or customer self-service charges goods to card upon store departure
Inputs
Full Cart Customer profile/data Promotion/event calendar
Plan
Source
Make
Deliver
D4.5
Outputs
Full Cart (Empty Cart) Satisfied Customer Customer loyalty / recurring visits Loyalty customer profile changes (more units, higher average ring, etc.)
Plan
Source
Make
Deliver
185
April 2003
Process Element: Deliver and/or Install Process Element Definition Performance Attributes
The process of preparing and installing the product at the customer site. The product is fully functional upon completion.
Metric
% Accuracy or Failure Rates Service levels None Identified Adoption rates None Identified None Identified
Best Practices
Provide product or service training to employees or FAQs online Stage product or service adoption Goals / performance plans Measurement, monitoring and adjustment of service or product installation
Features
None Identified None Identified None Identified None Identified
Inputs Outputs
Successful installation / live system Low rates of failure Consistently high adoption rates High customer service and satisfaction levels
Plan Plan
Source Source
Make Make
Deliver Deliver
186
April 2003
ED: Enable Deliver

(P) Inventory Rules, Product Mix and Plans, Integrated Supply Chain Plan (D1.8) Existing Inventory Data (ED.8) Returns Data (ED.8) Scrap Authorizations (ED.3) Customer Master Database (ED.1) Order Rules
(ED.2) Management Process Reports (ED.2, ED.4, ED.6) Supply Chain Performance Metrics (P) Planning Decision Policies Configuration Rules
Benchmark Data (ED.4, ED.5) Delivery Performance (ED.8) Returns Data (D1.2, D2.2, D3.2) Customer Orders (S) Customer Carrier Contracts
(D1.2, D2.2, D3.1) Customer Address Data, Credit History, Purchase History, Contract Status, Shipping Preferences
(P) Budgets, Approved Item Master (ED.2, ED.4) Supply Chain Performance Metrics (P, ED.4) Inventory Rules (ED.1) Order Rules
ED. 1 Manage Deliver Business Rules
ED.2 Assess Delivery Performance
ED. 3 Manage Deliver Information
ED. 4 Manage Finished Product Inventories
ED. 5 Manage Deliver Capital Assets
Order Rules (D1.2, D2.2, D3.2, ED.4, ED.5) Configuration Rules (D2.2)
Management Process Reports (ED.1) Supply Chain Performance Metrics (P, ED.1, ED.5) Customer Service Requirements (P, ED.6)
Customer Master Database/ Up to Date (ED.4)
Inventory Target Levels (P) Inventory Rules (ED.5) Supply Chain Performance Metrics (P, ED.1, ED.5) Delivery Performance (ED.2)
Warehouse Operating Constraints (P) Delivery Performance (ED.2)
187
April 2003
ED: Enable Deliver

Air, Ground Carrier Rate Tables (ED.2) Customer Service (P) Product Mix and Requirements Plans, Revised (P) Standard Business Assumptions, Practices/Rules Budgets, Source of (S) Contract Carrier Rates Products Projected Delivery (D1.2, D2.2, D3.2) Requirements (M) Location of Customers (D1.2, D2.2, D3.2) Customer Order Size, Weight & Freight Class
Government Regulations (D1.10, D2.9, D3.8) Shipping History (S1.2, S2.2, S3.4) Receipt History Tariffs & Duties
ED. 6 Manage Transportation
ED.7 Manage Product Life Cycle
ED.8 Manage Import/Export Requirements
Shipping Parameters & Documentation (D1.10, D2.9, D3.8) Supply Chain Performance Metrics (P, ED.1)
Enterprise Distribution Model (P)
Shipping Export Parameters & Documentation (D1.10, D2.9, D3.8) Government Constraints (P, ED.7) Duty Drawback Claims
188
April 2003
Enable Process: Manage Deliver Business Rules Enable Process Definition Performance Attributes
Process Number: ED.1
The process of defining and maintaining rules which affect the acceptance of an order, based on quantity, method of delivery, credit, customer experience, etc. (Include distribution channel rules)
Metric
# Orders requiring intervention due to rule violation Rule implementation time None identified Rule management cost Cost of non-conformance None Identified
Best Practices
Integrated edit at order entry time On-line rule base
Features
Customer Master Record None Identified
Inputs
Management Process Reports Supply Chain Performance Metrics Planning Decision Policies Configuration Rules
Plan
Source
Make
Deliver
ED.2 ED.2, ED.4, ED.6
Outputs
Order Rules Configuration Rules
Plan
Source
Make
Deliver
D1.2, D2.2, D3.2, ED.4, ED.5 D2.2
189
April 2003
Enable Process: Access Delivery Performance Enable Process Definition Performance Attributes
The process of defining the requirement and monitoring the performance of the delivery of product to a customer. When physical delivery is out-sourced the performance is passed on to source for contract administration.
Metric
Perfect Order fulfillment for the provider None Identified None Identified Administration cost ($ as % of Delivery $) Transportation Assets
Best Practices
Real time package tracking Customer initiated package tracking
Features
Tracking and tracing WEB based Shared systems
Inputs
Benchmark Data Delivery Performance Returns Data Customer Orders Customer Carrier Contracts
Plan
Source
Make
Deliver
ED.4, ED.5 ED.8 D1.2, D2.2, D3.2
Outputs
Management Process Reports Supply Chain Performance Metrics Customer Service Requirements
Plan
P P
Source
Make
Deliver
ED.1 ED.1, ED.5 ED.6
190
April 2003
Enable Process: Manage Deliver Information Enable Process Definition
The process of collecting, maintaining, and communicating information to support deliver planning and execution processes. The information to be managed includes: order data - (customer preference, history, status, and delivery requirements, etc.), warehouse data, transportation data, and deliver data.
Metric
Age of data - #days since last effective use Ratio of active customer data/Inactive customer data Time to update customer records and status None Identified Cost of acquisition % of distribution cost Cost of Capital Systems or 3rd Party services None Identified
Best Practices
Provide single source of information on the customer (Single group / owner responsible for accuracy / quality of customer data) Online real-time customer entry and edit
Features
Secure E-Commerce Server and integrated Order Management System (OMS) Warehouse Management System (WMS) and Transportation Management System (TMS) On-line Customer Service Module CRM (Customer resource Management) software is getting a big push in the ECommerce/E-Business areas and generally provides a means to fulfill this requirement Internet-enabled package/shipment tracking None Identified None Identified
Customer access to online tracking of order status and shipping information Comprehensive history of customer interactions including order history, claims, problems, etc. Customer Service data validation including geo-coding
Inputs
Customer Address Data, Credit History, Purchase History, Contract Status, Shipping Preferences
Plan
Source
Make
Deliver
D1.2, D2.2, D3.1
Outputs
Customer Master Database - Up to Date
Plan
Source
Make
Deliver
ED.4
191
April 2003
Enable Process: Manage Finished Goods Inventories Enable Process Definition Performance Attributes
The process of establishing and maintaining finished goods, inventory limits or levels, replenishment models, ownership, product mix, stocking locations
Metric
Fill Rate (% filled of an order) None Identified None Identified Inventory carrying cost $ Days of inventory Inventory Days of Supply
Best Practices
Periodic review of metrics and strategy with comparisons to industry benchmarks Real time data on current status. Cycle Counting
Features
Real time view of data. Dynamic calculation of safety stock based on actual sales None Identified
Inputs
Inventory Rules, Product Mix and Plans, Integrated Supply Chain Plan Existing Inventory Data Returns Data Scrap Authorizations Customer Master Database Order Rules
Plan
P
Source
Make
Deliver
D1.8 ED.8 ED.8 ED.3 ED.1
Outputs
Inventory Target Levels Inventory Rules Supply Chain Performance Metrics
Plan
P P
Source
Make
Deliver
ED.5 ED.1, ED.5
192
April 2003
Enable Process: Manage Deliver Capital Assets Enable Process Definition Performance Attribute
Reliability
Acquisition, maintenance, and disposition of order management, warehouse and transportation capital assets. Determine material handling (inventory) pick pack & ship methods (inventory), and equipment.
Metric
% Perfect customer order delivery % Capacity Utilization % Obsolete or inactive inventory Inventory Accuracy by location (% Items whose physical count and location matched systems count and location) % Damaged products receipts and % damaged customer shipments None Identified None Identified Warehouse Distribution Cost Inventory Carrying Cost Cost of Obsolete Inventory Cost of Damaged Inventory Inventory turns per year
Assets
Best Practices
Standard Operating Procedures and Methodology Measure Customer Service
Features
Real-time System Directed Task Scheduling and Management Advanced Shipping Notices (ASN) Parcel and Container Routing and Rating Compliance Labeling Real time shipment tracking WMS-real time inventory tracking Automated Calculation of ABC Velocity Movement Automated or Optimized Slotting (Storage Location) Systems Automated Item Cubing and Weighting systems Scanning with RFID/Bar-codes systems
Cycle Counting Removal of Obsolete Stock Storage Location Zoning Facility Master Plan Automated Data Entry
Inputs
Budgets, Approved Item Master Supply Chain Performance Metrics Inventory Rules Order Rules
Plan
P P
Source
Make
Deliver
ED.2, ED.4 ED.4 ED.1
Outputs
Warehouse Operating Constraints Delivery Performance
Plan
P
Source
Make
Deliver
ED.2
193
April 2003
Enable Process: Manage Transportation Enable Process Definition
The process of 1) defining and maintaining the information which characterizes product, containerization, vehicle, route, terminals, regulations, rates/tariffs and backhaul opportunity (Characterization include information necessary to support maintenance of internal Outbound Transportation equipment CAPITAL ASSETS) and 2) the management of transporters.
Metric
Frequency of parameter updates Number of data sources for data collection Speed at which parameters (eg, rates) are updated. Dock-to-Dock times (lane specific) None Identified Data maintenance costs Empty-to-loaded backhaul mile index Equipment utilization rates (hours) Equipment utilization rates (product contribution margin) Vehicle maintenance costs
Best Practices
Integrated Order Management, Warehouse Management and Transportation Management Systems View for analysis for all orders and shipments the following data: Logistics, Product, Cost, GL Charging Appointment Scheduling for Pickup and Delivery of Customer Shipments Measurement of Carrier Performance for Ontime Delivery and Completeness Real-time Optimized Shipment Method Selection (Air Parcel, Ground Parcel, LTL, etc.) Based on Customer Service Requirements Real-time Shipment Tracking, (via Internet) Electronic Manifest and Electronic Billing Automated Documentation for International Shipments Manage Information across 100% of shipments Capture and maintain mode specific data Internet Pooling (Electronic brokerage of shipments Backhaul trading exchange
Features
Transportation Management System (TMS) Maintenance Management
Rating & Routing Pooling
194
April 2003
Inputs
Air, Ground... Carrier Rate Tables Customer Service Requirements Standard Practices/Rules Contract Carrier Rates Customer Order Size, Weight & Freight Class Projected Delivery Requirements
Plan
P
Source
Make
Deliver
ED.2
S D1.2, D2.2, D3.2 M
Outputs
Shipping Parameters & Documentation Supply Chain Performance Metrics
Plan
P
Source
Make
Deliver
D1.10, D2.9, D3.8 ED.1
195
April 2003
Enable Process: Manage Product Life Cycle Enable Process Definition Performance Attributes
The process of defining and maintaining the distribution channel/ network for a specific product line (no capital asset or transportation management).
Metric
Total distribution cost as a % of revenue Frequency of analysis (monthly, annual, 5 year planning cycle) None Identified None Identified Acquisition cost for operational systems (# SKU, #Customer orders, etc.) Cost to maintain the fixed assets for the distribution network Distribution capital cost
Best Practices
Integrated Facility Management Operations and Network Analysis Standard Operating Procedures and Methodology
Features
Inputs
Product Mix and Plans, Revised Business Assumptions, Budgets, Source of Products Location of Customers
Plan
P
Source
Make
Deliver
D1.2, D2.2, D3.2
Outputs
Enterprise Distribution Model
Plan
P
Source
Make
Deliver
196
April 2003
Enable Process: Manage Export/Import Requirements Enable Process Definition Performance Attributes
The process of recording and maintaining regulations and rates, which constrain the ordering and delivering of product.
Metric
Compliance with multi-country government regulations1 Minimized delays in-transit caused by customs intervention2 Customs clearance cycle time Export shipment processing time None Identified Duty tax control Cost of compliance None Identified
Best Practices
Documents generated automatically during shipment preparation. Direct connection to customs clearance Direct Transfer of documents to Recipient and Forwarder Assessing export/import requirements during time of product development/manufacture Ability to track component/sub-component manufacturing country of origin
Features
Multi-country Export/Import documentation compliance Electronic documentation submission via EDI and/or Internet
None Identified Component/lot tracking (lot trace-ability)
Inputs
Government Regulations Shipping History Receipt History Tariffs & Duties
Plan
Source
Make
Deliver
D1.10, D2.9, D3.8
S1.2, S2.2, S3.4
Outputs
Shipping Export Parameters & Documentation Government Constraints Duty Drawback Claims
Plan
P
Source
Make
Deliver
D1.10, D2.9, D3.8 ED.7
197
April 2003
RETURN
198
April 2003
R1: Return Defective Product
Source Return
Deliver Return
Warranty Claim Return Policy Product Recall Notice Fault Isolation
Asset Recovery Resource
Product Specifications Quality Test
Defective Product Shipment
Ship To Data Return Policy
DR1.4 SR1.6 SR1.7 Authorize Replacement or Credit Disposition Defective Product Verify Defective Product SR1.5 Receive Defective Product DR1.3 Schedule Product Return DR1.2 Request Return Replacement or Credit DR1.1 Authorize Return
Disposition Record
Receipt Transaction Return Shipment Return Product Authorization Product Replacement Data
199
April 2003
Process Category: Return Defective Product Process Category Definition Performance Attributes
Process Number: R1
The return and disposition of defective products as defined by the warranty claims, product recall, nonconforming product and/or other similar policies including appropriate replacement.
Metric
None Identified None Identified None Identified Warranty Cost Days of Return Inventory
Best Practices
Features
Inputs Outputs
Plan Plan
Source Source
Make Make
Deliver Deliver
Return Return
200
April 2003
Process Element: Authorize Return Process Element Definition
Process Element Number: DR1.1
The process of validating, approving, recording, warranty claims, product recalls and non-conforming product including the processing of product replacement data and/or other similar policies including appropriate replacement.
Metric
None Identified None Identified None Identified Receiving &Product storage cost as a % of Product Return Costs Create Return Product Authorization Costs Value of return products
Best Practices
None Identified
Features
None Identified
Inputs
Warranty Claim Return Policy Product Recall Notice Fault Isolation
Plan
Source
Make
Deliver
Return
Outputs
Return Product Authorization Product Replacement Data
Plan
Source
Make
Deliver
Return
201
April 2003
Process Element: Request Return Replacement or Credit Process Element Definition Performance Attributes
The process and actions required determining return replacement or credit.
Metric
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Plan Plan
Source Source
Make Make
Deliver Deliver
Return Return
202
April 2003
Process Element: Schedule Defective Product Return Process Element Definition
The process of scheduling and managing the execution of the individual return deliveries of product against an existing warranty claim, product recall and non-conforming product, and/or other similar policies including appropriate replacement.
Metric
None Identified None Identified None Identified Return Product Management and Planning Costs as a % of Product Return Costs Return Product Days of Supply (DOS)
Best Practices
None Identified
Features
None Identified
Inputs
Ship to Data Return Policy
Plan
Source
Make
Deliver
Return
Outputs
Return Shipment
Plan
Source
Make
Deliver
Return
203
April 2003
Process Element: Receive Defective Product Process Element Definition Performance Attributes
The process of receiving and recording a defective product against a warranty claim and/or other similar policies including appropriate replacement.
Metric
None Identified None Identified None Identified Order Management Costs to Return Product into the Supply Chain Warranty Costs None Identified
Best Practices
None Identified
Features
None Identified
Inputs
Defective Product Shipment
Plan Plan
Source Source
Make Make
Deliver Deliver
Return Return
Outputs
Receipt Transaction
204
April 2003
Process Element: Verify Defective Product Process Element Definition Performance Attributes
Process Element Number: SR1.5
The process and actions required determining the cause of defective product conformance to requirements and recording disposition profile.
Metric
None Identified None Identified None Identified Verification Costs as a % of Product Return Costs None Identified
Best Practices
Product Specifications Quality Test Procedures
Features
Inputs
Product Specifications Quality Test
Plan
Source
Make
Deliver
Return
Outputs
Disposition Record
Plan
Source
Make
Deliver
Return
205
April 2003
Process Element: Disposition Defective Product Process Element Definition Performance Attributes
Reliability Responsiveness Flexibility Costs
The process and actions required to bring the defective product back to operational and specifications.
Metric
None Identified None Identified None Identified Total production employment Value added productivity Warranty Costs Disposal Costs Capacity utilization
Assets
Best Practices
None Identified
Features
None Identified
Inputs
Plan Plan
Source Source
Make Make
Deliver Deliver
Return Return
Outputs
Asset Disposition Record
206
April 2003
Process Element: Authorize Replacement Or Credit Process Element Definition Performance Attributes
The process and actions required to authorize deliver of replacement product or credit to customer
Metric
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Plan Plan
Source Source
Make Make
Deliver Deliver
Return Return
207
April 2003
SR2: Source Return MRO Product

(DR2.1) MRO Return Authorization Response (ER.1) Manage Business Rules (ER.8) Manage Regulatory Return Policy (ER.8) Warranty Data
(ER.4) MRO Item Availability
(SR2.3) Credit/ (DR2.2) Return Exchange Options Schedule (SR2.3, DR2.1) Ship- Instructions to Data
SR2.5
SR2.4
SR2.3
SR2.2
SR2.1 Identify MRO Product Condition
Return MRO Product
Schedule MRO Shipment
Request MRO Return Authorization
Disposition MRO Product
Shipment Documents (carrier, customer, government) Returned MRO Product (DR2.3) Return Product Location (ER.4)
Scheduled MRO Return
Validated Return Material Authorization MRO Disposition Request (DR2.1) Credit/ Exchange Options (SR2.4) Ship-to data (SR2.4) Inventory Control (ER.4)
MRO Return Authorizatio n Request (DR2.1)
Process Category: Source Return MRO Product Process Category Definition
Process Number: SR2
The process, initiated by the customer, of returning maintenance, repair, and overhaul items to a service provider. Process includes: customer identification that an action is required and determining what that action should be, communicating with the service provider, generating return documentation, and physically returning or disposing of the product.
Metric
% of MRO Source Returns Processed Correct Total Source Return cycle time Cycle Time And Cost To Implement New Or Modify Existing Return Criteria, Scheduling Rules, Delivering Or Transferring Rules Total Source Return Costs Value of Unserviceable MRO Inventory/ Total MRO Inventory Value
Best Practices
None Identified
Features
None Identified
Process Element: Identify MRO Product Condition Process Element Definition
Process Number: SR2.1
The process where the customer utilizes pre-determined MRO policies, business rules and product operating conditions as criteria to identify and confirm that an item requires maintenance, repair, overhaul or disposal. Includes operating failures and planned maintenance requirements.
Metric
Total Number Of Confirmed MRO Conditions / Total Number of MRO Service Requests Initiated Cycle Time From Problem Identification To Condition Confirmation Cycle Time To Change Condition Criteria Cost of Identifying the MRO Condition as a % of Total Source Return Cost Value of Unserviceable MRO Inventory In Identification Stage/ Total MRO Inventory Value
Best Practices
None Identified
Features
None Identified
Inputs
Manage Business Rules Manage Regulatory Return Policy Warranty Data
Plan
Source
Make
Deliver
Return
ER.1 ER.8 ER.8
Outputs
Plan
Source
Make
Deliver
Return
Process Element: Disposition MRO Product Process Element Definition
The process of the customer determining whether to service the item, what service is required, and who the appropriate service provider would be to service the item. Outputs include a decision to: (1) send a return authorization request to a service provider, (2) send the product back into service without requiring a return authorization request, or (3) discard the item.
Metric
% Identified MRO Products Returned To Service Cycle Time To: Reach Return Authorization, Return To Service Or Discard Decision Time and Cost Related To Expediting The Disposition Time and Cost Related To Responding To An Increase In Disposition Demand MRO Disposition Costs As % Total Source Return Cost Value of Unserviceable MRO Inventory In Disposition Stage/ Total MRO Inventory Value (Inventory Awaiting Disposition)
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Plan Plan
Source Source
Make Make
Deliver Deliver
Return Return
Process Element: Request MRO Return Authorization Process Element Definition
The process of a customer requesting and obtaining authorization, from a service provider, for the return of an MRO product. In addition to discussing the MRO issue, the customer and service provider would discuss enabling conditions such as return replacement or credit, packaging, handling, transportation and import / export requirements to facilitate the efficient return of the MRO product to the service provider. The customer may need to go through several return authorization iterations with multiple service providers before authorization is received.
Metric
% Authorization Requests Transmitted Error-Free / Total Authorizations Requested Cycle Time From The Customer Identifying The Need For A Return Authorization To The Authorizations Receipt By The Service Provider Cycle Time To Incorporate Changes In Return Authorization Processing Cost per Request Authorization Ratio of Authorization Cost To Total Source Return Cost Value of Unserviceable MRO Inventory In Request Return Authorization Stage/ Total MRO Inventory Value (Inventory Awaiting Return Authorization)
Best Practices
None Identified
Features
None Identified
Inputs
MRO Return Authorization Response Return Schedule Instructions
Plan
Source
Make
Deliver
Return
DR2.1 DR2.2
Outputs
MRO Return Authorization Request Validated Return Material Authorization MRO Disposition Request Credit/ Exchange Options Ship-to data Inventory Control
Plan
Source
Make
Deliver
Return
DR2.1
DR2.1 SR2.4 SR2.4 ER.4
Process Element: Schedule MRO Shipment Process Element Definition
The process where the customer develops the schedule for a carrier to pick-up and deliver the MRO product. Activities include selecting the carrier and rates, preparing the item for transfer, preparing scheduling documentation and managing overall scheduling administration.
Reliability Responsiveness
Metric
% shipping schedules that support customer required return by date Cycle Time From Return Authorization To Scheduled Shipment Pickup Cycle Time From Return Authorization To Actual Shipment Pickup Cycle time to update changes to shipment schedule % MRO Scheduling Cost to Total Source Return Cost Value of Unserviceable MRO inventory in Scheduling Stage/ Total MRO Inventory Value
Flexibility Costs Assets
Best Practices
None Identified
Features
None Identified
Inputs
Credit/ Exchange Options Ship-to Data
Plan
Source
Make
Deliver
Return
SR2.3 SR2.3, DR2.1
Outputs
Scheduled MRO Return
Plan
Source
Make
Deliver
Return
Process Element: Return MRO Product Process Element Definition
The process where the customer packages, and handles the MRO product in preparation for shipping in accord with pre-determined conditions. The product is then provided by the customer to the carrier who physically transports the product and its associated documentation to the service provider.
Metric
% Error-free Returns Shipped Return Shipments Shipped On Time Cycle Time From Packaging The Product For Shipment To Receipt Of Product At The Service Provider None Identified Cost Per Request Authorization Return Transportation Costs Value of Unserviceable MRO Inventory In Physical Return and Transportation Stage/ Total MRO Inventory Value
Best Practices
None Identified
Features
None Identified
Inputs
MRO Item Availability
Plan Plan
Source Source
Make Make
Deliver Deliver
Return
ER.4
Outputs
Shipment Documents (carrier, customer, government) Returned MRO Product Return Product Location
Return
DR2.3 ER.4
DR2: Deliver Return MRO Product

(P5.4) Return Plan Schedule (SR2.5) Return MRO Product (DR2.2) Return Schedule Instructions (ER.6) Transportation Guidelines (ER.8) Regulatory Requirements (ER.3, ER.4) Receipt Data (P5.4) Return Plans (EP.4) Manage Iintegrated Supply Chain Inventory (SR2.3) MRO Information Return (SR2.3) MRO Authorization Disposition Request Request (ER.1) Business Rules For Return Processes
(P2.4) Sourcing Plans (ER.4) Return Inventory for Transfer
DR2.4
DR2.3 Receive MRO Product (includes verify)
DR2.2
DR2.1 Authorize MRO Product Return
Transfer MRO Product
Schedule MRO Return Receipt
Return Inventory Receipt Discrepancy Return Schedule Transfer Data (P5.2, Notification (P, S, Instructions (SR2.3, S1.1, S2.1, S3.3, ER) DR2.3) ER.4) MRO Products (S1.2, S2.2)
Historical Return Rates (P5.1) Manage Integrated Supply Chain Inventory MRO Return Information (EP.4) Authorization Response (SR2.3)
Process Category: Deliver Return MRO Product Process Category Definition
Process Number: DR2
The processes of the service provider authorizing and scheduling the MRO return product and the physical receipt of the item by the service provider and their transfer of the item for final disposition determination. The process includes communication between the customer and service provider and the generation of associated documentation.
Metric
% of MRO Deliver Returns Processed Correct Total Deliver Return Cycle Time Cycle time and cost to implement new or modify existing return authorization criteria, scheduling rules, delivering or transferring rules Total cost associated with Deliver Return activities Value of Unserviceable MRO Inventory in Deliver Return Process/ Total MRO Inventory Value
Best Practices
None Identified
Features
None Identified
Process Element: Authorize MRO Product Return Process Element Definition
Process Number: DR2.1
The process where a service provider receives an MRO product return authorization request from a customer, determines if the item can be accepted for MRO and communicates their decision to the customer. Accepting the request would include negotiating the conditions of the return with the customer, including authorizing return replacement or credit. Rejecting the request would include providing a reason for the rejection to the customer.
Metric
None Identified Response Cycle Time None Identified Cost per request authorization Ratio of authorization cost to total deliver return costs Value of Unserviceable MRO Inventory In Scheduling Stage/ Total MRO Inventory Value
Best Practices
Prognostic/Diagnostic
Features
None Identified
Inputs
Return Plans Manage Iintegrated Supply Chain Inventory Information MRO Return Authorization Request MRO Disposition Request Business Rules For Return Processes
Plan
P5.4 EP.4
Source
Make
Deliver
Return
SR2.3 SR2.3 ER.1
Outputs
Historical Return Rates Manage Integrated Supply Chain Inventory Information MRO Return Authorization Response
Plan
P5.1 EP.4
Source
Make
Deliver
Return
SR2.3
Process Element: Schedule MRO Return Receipt Process Element Definition
The process where the service provider evaluates the MRO service requirements including negotiated conditions and develops a schedule that tells the Customer when to ship the part. The scheduling activity would also inform Receiving when to expect the shipment and where to send the part, for induction or storage, upon receipt.
Metric
% of Return Schedules That Are Generated Within Suppliers Lead Time Return Authorization Schedule Creation Cycle Time Cycle Time To Update Changes To Shipment Schedule MRO Deliver Return Costs Value of Unserviceable MRO Inventory In Scheduling Stage/ Total MRO Inventory Value
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Return Schedule Instructions
Plan Plan
Source Source
Make Make
Deliver Deliver
Return Return
SR2.3, DR2.3
Process Element: Receive MRO Product Process Element Definition Performance Attributes
Reliability
The process where the service provider receives and verifies the returned MRO item against the return authorization and other documentation and prepares the item for transfer.
Metric
% Orders/ Lines Received Damage Free % orders/ Lines Received Complete % orders/ Lines Received With On-Time Scheduled Receipts % orders/ Lines Received With Correct Shipping Documents Receiving Cycle Time % Receipts Received without Item and Quantity Verification Receiving Costs as a % of MRO Costs Value of Unserviceable MRO Inventory In Receiving Stage/ Total MRO Inventory Value
Responsiveness Flexibility Costs Assets
Best Practices
None Identified
Features
None Identified
Inputs
Return Plan Schedule Return MRO Product Return Schedule Instructions Transportation Guidelines Regulatory Requirements Receipt Data
Plan
P5.4
Source
Make
Deliver
Return
SR2.5 DR2.2 ER.6 ER.8 ER.3, ER.4
Outputs
Receipt Discrepancy Notification
Plan
P
Source
S
Make
Deliver
Return
ER
Process Element: Transfer MRO Product Process Element Definition Performance Attributes
The process where the service provider transfers the MRO product to the appropriate process to implement the disposition decision.
Metric
% Lost or Damaged During Transfer % Product Transfer Without Transaction Errors Cycle Time For The Transfer Process Time and Cost To Exercise The Transfer Transfer and Product Storage Costs Value of Unserviceable MRO Inventory In Transfer To Storage Stage/ Total MRO Inventory Value
Best Practices
None Identified
Features
None Identified
Inputs
Sourcing Plans
Plan
P2.4
Source Source
S1.1, S2.1, S3.3 S1.2, S2.2
Make Make
Deliver Deliver
Return Return
ER.4
Outputs
Return Inventory Transfer Data MRO Products
Plan
P5.2
R3: Return Excess Product

Deliver Return
Ship to Data Ship to Data Return Policy Terms and Conditions Inventory Policy Inventory Performance Data
DR3.4 Receive Excess Product DR3.3 Schedule Product Shipment DR3.2 DR3.1 Request Return Replacement or Credit Identify Excess Inventory
Ship Documentation Ship Transaction Remove Inventory from Financials
Return Shipment
Source Return
Return Policy Asset Recovery Resource Product Specs Quality Test
SR3.6 Receive Excess Product Return SR3.5 Approve Request Authorization
SR3.7 SR3.9 Authorize Replacement or Credit SR3.8 Recover & Disposition Excess Product Verify Excess Product
Scrap Rework Stock Adjust Financials According to Disposition Adjust Customer Credit
Disposition Record
Receipt Transaction Add Inventory to Financials
Returns Instructions and Documentation to Financials Credit Customers Account for Returns
Process Category: Return Excess Product Process Category Definition Performance Attributes
Process Number: R3
The return of excess inventory and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract.
Metric
None Identified None Identified None Identified Return Costs Days of Supply Days of Obsolete Supply
Best Practices
None Identified
Features
None Identified
Process Element: Request Return Authorization Process Element Definition Performance Attributes
The process of validating, approving, and recording a Return Product Authorization (RPA) for excess inventory and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract.
Metric
None Identified None Identified None Identified Create Return Product Authorization Costs Return Order Entry and Maintenance Costs Value of Return Product
Best Practices
None Identified
Features
None Identified
Inputs
Terms and Conditions Inventory Policy Inventory Performance Data
Plan
Source
Make
Deliver
Return
Outputs
Plan
Source
Make
Deliver
Return
Process Element: Request Return Replacement or Credit Process Element Definition Performance Attributes
The process and actions required determining return replacement or credit.
Metric
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Plan Plan
Source Source
Make Make
Deliver Deliver
Return Return
Process Element: Schedule Excess Product Return Process Element Definition Performance Attributes
Scheduling and managing the execution of the individual return deliveries of product against an existing RPA.
Metric
None Identified None Identified None Identified Return Product Management and Planning Costs as a % of Product Return Costs Return Product Days of Supply
Best Practices
None Identified
Features
None Identified
Inputs
Ship to Data Return Policy
Plan
Source
Make
Deliver
Return
Outputs
Return Shipment
Plan
Source
Make
Deliver
Return
Process Element: Receive Excess Product Process Element Definition Performance Attributes
The process of recording a physical receipt of Excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract against an RPA
Metric
None Identified None Identified None Identified Order Management Costs to Return Product into the Supply Chain RPA Costs None Identified
Best Practices
None Identified
Features
None Identified
Inputs
Ship to Data
Plan
Source
Make
Deliver
Return
Outputs
Ship Documentation Ship Transaction To Remove Inventory From Financials
Plan
Source
Make
Deliver
Return
Process Element: Approve Request Authorization Process Element Definition
The process and actions required determining excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract for conformance to requirements, determining disposition profile and establishing an RPA.
Metric
None Identified None Identified None Identified Cost Per Request Authorizations None Identified
Best Practices
Product Specifications Quality Test Procedures
Features
Inputs
Return Policy
Plan
Source
Make
Deliver
Return
Outputs
Returns Instructions and Documentation to Financials Credit Customers Account For Return
Plan
Source
Make
Deliver
Return
Process Element: Receive Excess Product Return Process Element Definition Performance Attributes
The process of recovering excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract, as available inventory and disposition excess not usable for sale.
Metric
None Identified None Identified None Identified Receiving Costs as a % of Product Return Costs DOS of Return Product
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Receipt transaction to add inventory to financials
Plan Plan
Source Source
Make Make
Deliver Deliver
Return Return
Process Element: Verify Excess Product Process Element Definition Performance Attributes
The process of verifying excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract as available inventory and disposition excess not usable for sale.
Metric
None Identified None Identified None Identified Verification Costs as a % of Product Return Costs Excess DOS Obsolete DOS
Best Practices
None Identified
Features
None Identified
Inputs
Product Specs Quality Test
Plan
Source
Make
Deliver
Return
Outputs
Disposition Record
Plan
Source
Make
Deliver
Return
Process Element: Recover and Disposition Excess Product Process Element Definition
The process of recovering excess and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract product as available inventory and disposition excess not usable for sale.
Metric
Best Practices
None Identified
Features
None Identified
Inputs
Plan
Source
Make
Deliver
Return
Outputs
Scrap Rework Stock Adjust Financials According to Disposition Adjust Customer Credit
Plan
Source
Make
Deliver
Return
Process Element: Authorize Replacement Or Credit Process Element Definition Performance Attributes
The process and actions required to authorize deliver of replacement product or credit to customer
Metric
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Plan Plan
Source Source
Make Make
Deliver Deliver
Return Return
ER: Enable Return
ER.1 Manage Business Rules for Return Processes
ER.2 Manage Performance of Return Processes
ER. 3 Manage Return Data Collection
Business Rules (P5.1, P5.2)
Capabilities of the Return Processes (P5.2)
Data about Return Capabilities (P5.2)
ER.4 Manage Return Inventory
ER.5 Manage Return Capital Assets
Return Inventory Targets (P5.2)
Asset Return Capabilities and Capacities (P5.2)
ER: Enable Return
ER.6 Manage Return Transportation
ER.7 Manage Return Network Configuration
Return Transportation Guidelines, Policies, and Agreements (P5.2)
Return Process Workflow Definition and Policies (P5.2)
ER.8 Manage Return Regulatory Requirements and Compliance
Regulatory Requirements (P5.1) Regulatory (P5.2)
Enable Process: Manage Business Rules for Return Processes Enable Process Definition
Process Number: ER.1
The process of establishing, maintaining, and enforcing decision support criteria for Return Planning which translate to rules for conducting business, i.e. developing and maintaining customer and channel performance standards of an return processes such as service levels, given service requirements by supply chain stakeholders/trading partners. Business rules align Return process policies with business strategy, goals, and objectives.
Metric
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Business Rules Manage Business Rules Business Rules for Return Processes
Plan Plan
P5.1, P5.2
Source Source
Make Make
Deliver Deliver
Return Return
SR2.1 DR2.1
Enable Process: Manage Performance of Return Processes Enable Process Definition Performance Attributes
The process of measuring actual Return Process performance against internal and/or external standards to develop and implement a course of action to achieve targeted performance levels.
Metric
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Capabilities of the Return Processes
Plan Plan
P5.2
Source Source
Make Make
Deliver Deliver
Return Return
Enable Process: Manage Return Data Collection Enable Process Definition Performance Attributes
The process of collecting, integrating and maintaining the accuracy of return execution information necessary to plan the recovery of supply chain resources.
Metric
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Data about Return Capabilities Receipt Data
Plan Plan
P5.2
Source Source
Make Make
Deliver Deliver
Return Return
DR2.3
Enable Process: Manage Return Inventory Enable Process Definition
The process of establishing a return process inventory strategy and planning the recovery process inventory limits or levels (including Raw Material, Work In Process, Finished and Purchased Finished Goods) including replenishment models, ownership, product mix, and stocking locations, both inter and intra company.
Metric
Best Practices
None Identified
Features
None Identified
Inputs
Inventory Control Return Product Location Return Inventory Transfer Data
Plan
Source
Make
Deliver
Return
SR2.3 SR2.5 DR2.4
Outputs
Return Inventory Targets MRO Item Availability Receipt Data Return Inventory for Transfer
Plan
P5.2
Source
Make
Deliver
Return
SR2.5 DR2.3 DR2.4
Enable Process: Manage Return Capital Assets Enable Process Definition Performance Attributes
The process of defining capacity utilization and recovery and then acquiring, maintaining and dispositioning an organizations capital assets as part of the overall Returns process.
Metric
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Asset Return Capabilities and Capacities
Plan Plan
P5.2
Source Source
Make Make
Deliver Deliver
Return Return
Enable Process: Manage Return Transportation Enable Process Definition
The process of defining a Return transportation strategy and maintaining the information, which characterizes total asset recovery transportation requirements, and the management of transporters both, inter and intra company.
Metric
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Return Transportation Guidelines, Policies, and Agreements Transportation Guidelines
Plan Plan
P5.2
Source Source
Make Make
Deliver Deliver
Return Return
DR2.3
Enable Process: Manage Return Network Configuration Enable Process Definition
The process of defining and maintaining the information about the Returns supply chain network for a group of similar or complimentary products through their full life cycle, including the evaluation of market need, product realization (development, introduction and production), product discontinuation, and after-market support.
Metric
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Return Process Workflow Definition and Policies
Plan Plan
P5.2
Source Source
Make Make
Deliver Deliver
Return Return
Enable Process: Manage Return Regulatory Requirements and Compliance Enable Process Definition Performance Attributes
The process of identifying and complying with regulatory documentation and process standards set by external entities (i.e. government, trade officials, etc.) when planning for the Return and Recovery of Assets.
Metric
Best Practices
None Identified
Features
None Identified
Inputs Outputs
Regulatory Requirements Regulatory Manage Regulatory Return Policy Warranty Data
Plan Plan
P5.1 P5.2
Source Source
Make Make
Deliver Deliver
Return Return
DR2.3 SR2.1 SR2.1
Glossary
PROCESS TERMS TERM

Access Delivery Performance
TYPE
Enable Process
DEFINITION
The process of defining the requirement and monitoring the performance of the delivery of product to a customer. When physical delivery is out-sourced the performance is passed on to source for contract administration. The process of revising the long-term supply chain capacity and resource plans, given the inputs from the strategic and business plans. This includes revision of aggregate forecast and projections related to supply chain, source, make, and delivery plans, as well as business assumptions. The process and actions required determining excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract for conformance to requirements, determining disposition profile and establishing an RPA. The process of measuring actual supplier performance against internal and/or external standards to develop and implement a course of action to achieve targeted supplier performance. The process where a service provider receives an MRO product return authorization request from a customer, determines if the item can be accepted for MRO and communicates their decision to the customer. Accepting the request would include negotiating the conditions of the return with the customer, including authorizing return replacement or credit. Rejecting the request would include providing a reason for the rejection to the customer. The process of validating, approving, recording, warranty claims, product recalls and non-conforming product including the processing of product replacement data and/or other similar policies including appropriate replacement. The process and actions required to authorize deliver of replacement product or credit to customer The process of authorizing payments and paying suppliers for product or services. This process includes invoice collection, invoice matching and the issuance of checks. The process of developing a time-phased course of action that commits delivery resources to meet delivery requirements. The process of developing a time-phased course of action that commits resources to meet requirements.
From Process Category/ Element #: ED.2
Align Supply Chain Unit Plan with Financial Plan Approve Request Authorization
Enable Process
EP.9
Process Element
SR3.5
Assess Supplier Performance Authorize MRO Product Return
Enable Process
ES.2
Process Element
DR2.1
Authorize Return
Process Element
DR1.1
Authorize Replacement or Credit Authorize Supplier Payment Balance Delivery Resources and Capabilities with Delivery Requirements Balance Product Resources with Product Requirements
Process Element Enable Process
SR1.7, SR3.9 S1.5, S2.5, S3.7 P4.3
Process Element
Process Element
P2.3
TERM
Balance Production Resources with Production Requirements Balance Supply Chain Resources with Supply Chain Requirements Bill of Materials (BOM) Business Plan
TYPE
Process Element
DEFINITION
The process of developing a time-phased course of action that commits creation and operation resources to meet creation and operation requirements. The process of developing a time-phased course of action that commits supply-chain resources to meet supply-chain requirements. The Bill of Materials is a structured list of all the materials or parts needed to produce a particular finished product, assembly, subassembly, manufactured part, whether purchased or not.. A document resulting from a process of linking the long-range strategy with projections of revenue, activity, cost and profit. This process develops objectives usually accompanied by budgets, projected balance sheet, and a cash flow statement. A capacity constraint is said to exist when the available capacity at a resource may be insufficient to meet the workload necessary to support the desired throughput. A capacity constraint is often a bottleneck. The processes and tasks associated with product checkout including scanning, method of payment, credit application and approval, service agreement, order confirmation, and/or invoice or receipt. The process of analyzing orders to determine the groupings that result in least cost/best service fulfillment and transportation. A process that identifies opportunities for performance improvement and facilitates their realization through the use of metrics, process development methodologies/approaches, project management principles, and reporting tools that support strategic and business plans. A requirement for product from a distribution location to a source location. The process of preparing and installing the product at the customer site. The product is fully functional upon completion. The process of delivering product that is designed, manufactured, and assembled from a bill of materials, which includes one or more custom parts. Design will begin only after the receipt and validation of a firm customer order. The process of delivering product that is manufactured, assembled or configured from standard parts or subassemblies. Manufacture, assembly or configuration will begin only after the receipt and validation of a firm customer order.
From Process Category/ Element #: P3.3
Process Element
P1.3
Input/Output
EP.7
Input/Output
EP.9
Capacity Constraints
Input/Output
EP.4, EP.5, EP.6
Checkout
Process Element
D4.6
Consolidate Orders Continuous Improvement Process
Process Element Input
D1.4, D2.4 EP.2
Customer Replenish Signal Deliver and/or Install Deliver Engineer-toOrder Product Deliver Make-toOrder Product
Input/Output Process Element Process Category
D1.2 D4.7 D3
Process Category
D2
TERM
Deliver Retail Products
TYPE
Process Category
DEFINITION
Deliver Retail Products are the processes used to acquire, merchandise, and sell finished goods at a retail store. A retail store is a physical location that sells products (and services) direct to the consumer using a point of sale process (manual or automated) to collect payment. Merchandising at a store level is the stocking and restocking of products in designated storage locations to generate sales in a retail store. The processes of the service provider authorizing and scheduling the MRO return product and the physical receipt of the item by the service provider and their transfer of the item for final disposition determination. The process includes communication between the customer and service provider and the generation of associated documentation. The process of delivering product that is maintained in a finished goods state prior to the receipt of a firm customer order. Products that have been acknowledged as received by the customer. A plan for a course of action over specified time periods that involves a projected appropriation of supply resources to meet delivery requirements. The process and actions required to bring the defective product back to operational and specifications. The process of the customer determining whether to service the item, what service is required, and who the appropriate service provider would be to service the item. Outputs include a decision to: (1) send a return authorization request to a service provider, (2) send the product back into service without requiring a return authorization request, or (3) discard the item. A plan for the development and establishment of courses of action over specified time periods to appropriate delivery resources to meet projected delivery requirements. The plan contains necessary business requirements for information and relationships to effectively and efficiently PLAN the Supply Chain. Production of distinct items, such as parts that retain their identity through the transformation process and are intended to be completed after receipt of a customer order, including custom products that are designed, developed, and produced in response to a specific customer request. The establishment of courses of action over specified time periods that represent a projected appropriation of supply resources to meet delivery requirements.
From Process Category/ Element #: D4
Deliver Return MRO Product
Process Category
DR2
Deliver Stocked Product Delivered End Items Delivery Plan Disposition Defective Product Disposition MRO Product
Process Category Input/Output Input/Output Process Element Process Element
D1 D1.10 P1.4, P4.4 SR1.6 SR2.2
Enable PLAN
Process Category
EP
Engineer-toOrder
Process Category
M3
Establish Delivery Plans
Process Element
P4.4
TERM
Establish Production Plans Establish Sourcing Plans Establish Supply Chain Plans Fill Shopping Cart Finalize Engineering
TYPE
Process Element
DEFINITION
The process that establishes courses of action over specified time periods to appropriate supply resources to meet projected production and operation plan requirements. The establishment of courses of action over specified time periods that represent a projected appropriation of supply resources to meet sourcing plan requirements. Establishing time-based courses of action that attempt to appropriate and allocate supply resources to meet supply-chain plan requirements. A set of tasks associated with product selection, storage and movement through to checkout. Engineering activities required after acceptance of order, but before product can be manufactured. May include generation and delivery of final drawings, specifications, formulas, part programs, etc. In general, the last step in the completion of any preliminary engineering work done as part of the quotation process. Tangible property used in the operations of a business but not expected to be consumed or converted into cash in the ordinary course of events. Plant, machinery and equipment, furniture and fixtures, leasehold improvements comprise the fixed assets of most companies. They are normally represented on the balance sheet at their net depreciated value. The process of scheduling resources to support item-stocking requirements. The process of identifying, evaluating, and considering, as in whole with constituent parts, all things that add value in the delivery of a product or services. The process of identifying, evaluating, and considering, as in whole with constituent parts, all things that add value in the material and other resources of a product or services. The process of identifying, evaluating, and considering, as a whole with constituent parts, all things that add value in the creation of a product or performance of a service. The process of identifying, evaluating, and considering, as in whole with constituent parts, all things that add value in the supply chain of a product or services.
From Process Category/ Element #: P3.4
Process Element
P2.4
Process Element Process Element Process Element
P1.4 D4.5 M3.1
Fixed Asset
Financial Term
EP.4, EP.5, EP.6, ED.7
Generate Stocking Schedule Identify, Assess, And Aggregate Delivery Resources and Capabilities Identify, Assess, And Aggregate Product Resources Identify, Assess, And Aggregate Production Resources Identify, Assess, And Aggregate Supply Chain Resources
Process Element Process Element
D4.1 P4.2
Process Element
P2.2
Process Element
P3.2
Process Element
P1.2
TERM
Identify MRO Product Condition
TYPE
Process Element
DEFINITION
The process where the customer utilizes predetermined MRO policies, business rules and product operating conditions as criteria to identify and confirm that an item requires maintenance, repair, overhaul or disposal. Includes operating failures and planned maintenance requirements. The process of identifying, prioritizing, and considering, as a whole with constituent parts, all sources of demand in the delivery of a product or service. The process of identifying, prioritizing, and considering, as a whole with constituent parts, all sources of demand for a product or service in the supply chain. The process of identifying, prioritizing, and considering as a whole with constituent parts, all sources of demand in the creation of a product or service. The process of identifying, prioritizing, and considering as a whole with constituent parts, all requirements that must be satisfied by the supply chain execution. Courses of action over specified time periods that represent a projected appropriation of total supplychain resources to meet total supply-chain demand requirements. The physical movement of materials (e.g., raw materials, fabricated components, manufactured subassemblies, required ingredients or intermediate formulations) from a stocking location (e.g., stockroom, a location on the production floor, a supplier) to a specific point of use location. Issuing material includes the corresponding system transaction. The bill of materials/routing information or recipe/production instructions will determine the materials to be issued to support the manufacturing operation(s). A record of specific information for each product, which defines the system parameters with which to effectively plan and execute using ERP (MRP, etc) systems. The series of task including placing product onto vehicles, generating the documentation necessary to meet internal, customer, and government needs, and sending the product to the customer.
From Process Category/ Element #: SR2.1
Identify, Prioritize, and Aggregate Delivery Requirements Identify, Prioritize, and Aggregate Product Requirements Identify, Prioritize, and Aggregate Production Requirements Identify, Prioritize, and Aggregate Supply Chain Requirements Integrated Supply Chain (ISC) Plans Issue Product
Process Element
P4.1
Process Element
P2.1
Process Element
P3.1
Process Element
P1.1
Input/Output
P1.4
Process Element
M1.2 M2.2 M3.3
Item Master
Input/Output
EP.7
Load Vehicle, Generate Ship Documents & Ship
Process Element
D1.10, D2.10, D3.8
TERM
Maintain Equipment/ Facilities
TYPE
Enable Process
DEFINITION
The ongoing management of the activities associated with ensuring equipment and facilities are kept in proper order. This process element includes required repairs, alterations, calibration, and other miscellaneous items to maintain production capability of the manufacturing fixed asset base. The process of collecting information to support the day-to-day maintenance of all planning and execution data required supporting the sourcing process. The output of the process used to determine whether a demand will be supplied with internal capacity or purchased through contract manufacturing and/or contracted services externally. Production in a Make-to-Order environment adds value to products through fabrication, assembly, mixing, separating, forming, machining and chemical processes. A Make-to-Order environment is one in which products are completed after receipt of a customer order and are built or configured only in response to a customer order. The process of manufacturing distinct items, such as parts that retain their identity through the transformation process, that is intended to be completed after receipt of a customer order. Maketo-Order includes products built only in response to a customer order and products configured in response to a customer order. The process of manufacturing non-discrete products that have value added through mixing, separating, forming, and/or performing chemical reactions. Make-to-Order products are intended to be completed after receipt of a customer order. Then are built or configured only in response to a customer order. Production of distinct items, such as parts that retain their identity through the transformation process, that is intended to be shipped from finished goods or off the shelf. Make-to-Stock products are completed prior to receipt of a customer order and are generally produced in accordance with a sales forecast. The process of manufacturing distinct items, such as parts that retain their identity through the transformation process, that is intended to be shipped from finished goods or off the shelf. Make-to-Stock products are completed prior to receipt of a customer order and are generally manufactured in accordance with a sales forecast.
From Process Category/ Element #: EM.5
Maintain Source Data Make/Buy Decision Make-to-Order
Enable Process
ES.3
Input/Output
EP.4, EP.5, EP.6 M2
Process Category
Make-to-Order Discrete Manufacturing
Process Category
M2
Make-to-Order Process Manufacturing
Process Category
M2
Make-to-Stock
Process Category
M1
Make-to-Stock Discrete Manufacturing
Process Category
M1
TERM
Make-to-Stock Process Manufacturing
TYPE
Process Category
DEFINITION
The process of manufacturing non-discrete products that have value added through mixing, separating, forming, and/or performing chemical reactions. Make-to-Stock products are intended to be shipped from finished goods or off the shelf, are completed prior to receipt of a customer order, and are generally produced in accordance with a sales forecast. The process of establishing, maintaining, and enforcing decision support criteria for Supply Chain Planning, which translate to rules for conducting business. Business rules align PLAN process performance measures with business strategy, goals, and objectives. The process of establishing, maintaining, and enforcing decision support criteria for Return Planning which translate to rules for conducting business, i.e. developing and maintaining customer and channel performance standards of an return processes such as service levels, given service requirements by supply chain stakeholders/trading partners. Business rules align Return process policies with business strategy, goals, and objectives. Acquisition, maintenance, and disposition of the capital assets. The process of acquiring, maintaining and dispositioning an organizations <capital assets> located at a suppliers facility and/or outside source, which are used to operate the supply chain. The process of developing and maintaining customer and channel performance standards of an entire supply chain such as service levels, given service requirements by supply chain stakeholders/trading partners The process of defining and maintaining rules which affect the acceptance of an order, based on quantity, method of delivery, credit, customer experience, etc. (Include distribution channel rules) Acquisition, maintenance, and disposition of order management, warehouse and transportation capital assets. Determine material handling (inventory) pick pack & ship methods (inventory), and equipment. The process of collecting, maintaining, and communicating information to support deliver planning and execution processes. The information to be managed includes: order data (customer preference, history, status, and delivery requirements, etc.), warehouse data, transportation data, deliver data.
From Process Category/ Element #: M1
Manage Business Rules for Plan Processes Manage Business Rules for Return Processes
Enable Process
EP.1
Enable Process
ER.1
Manage Capital Assets
Enable Process
ES.5
Manage Channel Standards Manage Deliver Business Rules Manage Deliver Capital Assets
Enable Process
EP.10
Enable Process
ED.1
Enable Process
ED.5
Manage Deliver Information
Enable Process
ED.3
TERM
Manage Finished Goods Inventories Manage Import/ Export Requirements Manage Import/Export Requirements Manage Incoming Product
TYPE
Enable Process
DEFINITION
The process of establishing and maintaining finished goods inventory limits or levels, replenishment models, ownership, product mix, stocking locations The process of identifying and complying with import/export regulatory documentation and process standards set by external entities (e.g., government). The process of recording and maintaining regulations and rates that constrain the ordering and delivering of product. Determine customs requirements, establish letters of credit terms and conditions, etc. The process of defining and maintaining the information that characterizes inbound logistics management of all supplier deliveries, including both physical and electronic goods and services. This includes carrier selection and management, tracking deliveries and import. Management of the activities associated with handling / storage / movement of materials used to support production. The process of establishing, measuring, and adjusting limits or levels of long-range supply chain capacity to meet long-range demand requirements, typically conducted at the business plan level. Key aspects of supply chain capacity include inventory, capital (fixed assets), outsource (contract manufacturing), and transportation. The process of specifying, maintaining and dispositioning. Makes capital assets to operate the supply chain production processes. This includes repair, alteration, calibration and other miscellaneous items to maintain production capabilities. The process of measuring actual Return Process performance against internal and/or external standards to develop and implement a course of action to achieve targeted performance levels. The process of measuring actual integrated Supply Chain performance against internal and/or external standards to develop and implement a course of action to achieve targeted performance. Performance targets established for the execution of supply chain processes are reflected in the process elements for PLAN, i.e. cost, delivery reliability, cycle time, responsiveness, and assets. The process of integrating and maintaining the accuracy of information necessary to balance supply resources to demand requirements at both the highest aggregate and lowest SKU planning levels.
From Process Category/ Element #: ED.4
Enable Process
ES.8
Enable Process
ED.8
Enable Process
ES.6
Manage InProcess Products (WIP) Manage LongTerm Supply Chain Planning
Enable Process Enable Process
EM.4 EP.4, EP.5, EP.6
Manage Make Equipment and Facilities
Enable Process
EM.5
Manage Performance of Return Processes Manage Performance of Supply Chain
Enable Process
ER.2
Enable Process
EP.2
Manage Plan Data Collection
Enable Process
EP.3
TERM
Manage Planning Configuration
TYPE
Enable Process
DEFINITION
The process of defining and maintaining the information about a unique supply chain network for a group of similar or complimentary products through their full life cycle, including the evaluation of market need, product realization (development, introduction and production), product discontinuation, and after market support. This element also includes the management of critical sub processes needed to manage the life cycle of individual item numbers including item masters, routings, event planning (promotions, etc.), ABC classification, rationalization, and bill of materials. The process of establishing and maintaining physical inventories and inventory information. This includes warehouse management, cycle counting, physical inventories and inventory reconciliation. For Services, this may include tracking the number of service providers and the financial resources committed at any given point in time. The process of managing, collecting, maintaining, and communicating information to support MAKE planning and execution processes. The information to be managed includes production, order and process data. The process of developing and maintaining performance standards and analysis methods to compare actual production performance against the established standards. This process allows the development and implementation of a course of action to achieve targeted performance. The process of identifying and complying with regulatory documentation and process standards for Make activities set by external entities (e.g. government) The process of establishing, maintaining, and enforcing rules for managing production details in line with business strategy, goals, and objectives. Production details include part/item master, bills of materials/formulas, routings, processes, equipment requirements, tooling, and other information specifying the method of production for a particular product. The process of defining capacity utilization and recovery and then acquiring, maintaining and dispositioning an organizations capital assets as part of the overall Returns process. The process of collecting, integrating and maintaining the accuracy of return execution information necessary to plan the recovery of supply chain resources.
From Process Category/ Element #: EP.7
Manage Product Inventory
Enable Process
ES.4
Manage Production Data
Enable Process
EM.3
Manage Production Performance
Enable Process
EM.2
Manage MAKE Regulatory Compliance Manage Production Rules
Enable Process
EM.8
Enable Process
EM.1
Manage Return Capital Assets Manage Return Data Collection
Enable Process
ER.5
Enable Process
ER.3
TERM
Manage Return Inventory
TYPE
Enable Process
DEFINITION
The process of establishing a return process inventory strategy and planning the recovery process inventory limits or levels (including Raw Material, Work In Process, Finished and Purchased Finished Goods) including replenishment models, ownership, product mix, and stocking locations, both inter and intra company. The process of defining and maintaining the information about the Returns supply chain network for a group of similar or complimentary products through their full life cycle, including the evaluation of market need, product realization (development, introduction and production), product discontinuation, and after-market support. The process of identifying and complying with regulatory documentation and process standards set by external entities (i.e. government, trade officials, etc.) when planning for the Return and Recovery of Assets. The process of defining a Return transportation strategy and maintaining the information, which characterizes total asset recovery transportation requirements, and the management of transporters both, inter and intra company. The process of defining requirements and establishing, maintaining and enforcing decision support criteria, in line with business strategy, goals and objectives. The criteria translated into rules for conducting business within the enterprise and other legal entities including selection, negotiation, fulfillment, consideration and specific levels of collaboration. The management of existing purchase orders or supplier contracts. This includes managing volume/step pricing, resolving issues, enforcing terms and conditions and maintaining an accurate status for existing purchase orders or contracts. Also, the management of a supplier certification process, which includes certifying new suppliers and maintaining the current status of existing suppliers. The process of defining and maintaining a unique network of suppliers to deliver a specific product set. This includes establishment of a new supplier or maintaining an existing supplier and all the tasks and activities associated with identifying and qualifying the supplier and finalizing on the sourcing terms and conditions. The process of 1) defining and maintaining the information which characterizes product, containerization, vehicle, route, terminals, regulations, rates/tariffs and backhaul opportunity (Characterization include information necessary to
From Process Category/ Element #: ER.4
Manage Return Network Configuration
Enable Process
ER.7
Manage Return Regulatory Requirements and Compliance Manage Return Transportation
Enable Process
ER.8
Enable Process
ER.6
Manage Sourcing Business Rules
Enable Process
ES.1
Manage Supplier Agreements
Enable Process
ES.9
Manage Supplier Network
Enable Process
ES.7
Manage Transportation
Enable Process
ED.6
TERM
TYPE
DEFINITION
support maintenance of internal Outbound Transportation equipment CAPITAL ASSETS) and 2) the management of transporters. Availability of a product by location that is reserved, scheduled or available for sale. Orders that have been received and entered into the order processing system and are in a queue waiting to be processed and shipped. A plan that describes how a company will utilize third party business partners to provide products and services which the company chooses not to provide with internal capacity. Outsource Plans can vary in detail from simple policy statements to highly detailed plans with specifics about the third party business partners, specifications for products and services, performance expectations, and contract considerations. The series of activities that containerize completed products for storage or sale to end-users. Within certain industries, packaging may include cleaning or sterilization. The series of activities including retrieving orders to pick, determining inventory availability, building the pick wave, picking the product, recording the pick and delivering product to shipping performed in the distribution center in response to an order. The process of retrieving restocking orders to pick, determining inventory availability, building a pick wave, picking item and quantity from a designated backroom warehouse location, recording the resulting inventory transaction, and delivering the product to point of stock. Transportation modes are selected and efficient loads are built. The development and establishment of courses of action over specified time periods that represent a projected appropriation of supply resources to meet delivery requirements. The development and establishment of courses of action over specified time periods that represent a projected appropriation of production resources to meet production requirements. The development and establishment of courses of action over specified time periods that represent a projected appropriation of material resources to meet supply chain requirements. The development and establishment of courses of action over specified time periods that represent a projected appropriation of supply chain resources to meet supply chain requirements for the longest time fence constraints of supply resources.
From Process Category/ Element #:
Material Availability Order Backlog Outsource Plan
Input/Output Input/Output Input/Output
D2.3 D2.3, M2.1 EP.4, EP.5, EP.6
Package
Process Element
M1.4 M2.4 M3.5 D1.9, D2.8, D3.7
Pick (Staged) Product
Process Element
Pick Product from Backroom
Process Element
D4.3
Plan & Build Loads Plan Deliver
Process Element Process Category
D1.5, D2.5, D3.5 P4
Plan Make
Process Category
P3
Plan Source
Process Category
P2
Plan Supply Chain
Process Category
P1
TERM
Planning Decision Policies Process Inquiry & Quote Produce and Test
TYPE
Input/Output Process Element Process Element
DEFINITION
Any company policies that affect how a planning process is defined, approved, and performed. Receive and respond to general customer inquiries and requests for quotes. The series of activities performed upon material to convert it from the raw or semi-finished state to a state of completion and greater value. The processes associated with the validation of product performance to ensure conformance to defined specifications and requirements. The end object of a transformation process that includes physical objects, information or services. "Result of activities or processes and may include service, hardware, processed materials, software or a combination thereof; can be tangible (e.g. assemblies of processed materials) or intangible (e.g. knowledge or concepts) or a combination thereof; can be either intended (e.g. offering to customers) or unintended (e.g. pollutant or unwanted effects)."1 Product routings represent the way products are made and are integrated with the Bill of Materials. Key elements of proper Routings include proper sequence of operations, work center identification, relevant tolerances, run times, lot size and setups. The equivalent concepts for services are the workflow processes and rules. The total system-wide production ability to provide the maximum output of products or services. A master production plan used to allocate capacity among manufacturing resources and schedule finite manufacturing activities or executing the performance of a service. An estimate of the amount of product or service a particular part of the business (internal capacity) or a third party business partner (external capacity) is capable of producing over a particular period of time when all factors that control the production processes are working optimally. Contract rates and tariffs from carriers by commodity, lane, mode, etc. for shipments. Receive orders from the customer and enter them into a companys order processing system. Orders can be received through phone, fax, or through electronic media. Configure your product to the customers specific needs, based on standard available parts or options. Technically examine order to ensure an orderable configuration and provide accurate price. Check the customers credit.
From Process Category/ Element #: EP.1 D1.1, D2.1 M1.3 M2.3 M3.4
Product
Term
All
Product Routings
Input/Output
EP.4, EP.5, EP.6, EP.7
Production Capacity Production Plans
Input/Output Input/Output
P3.2 P1.4, P3.4
Projected Internal and External Capacity Rated Carrier Data Receive, Configure, Enter and Validate Order
Input/Output
EP.4, EP.5, EP.6
Input/Output Process Element
D1.6, D2.6 D2.2
ISO 8402:1994 Quality Management and Assurance Vocabulary, Geneva Switzerland, International Organization for Standardization.
TERM
Receive Defective Product Receive Excess Product Receive Excess Product Return
TYPE
DEFINITION
The process of receiving and recording a defective product against a warranty claim and/or other similar policies including appropriate replacement. The process of recording a physical receipt of Excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract against an RPA The process of recovering excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract, as available inventory and disposition excess not usable for sale. The process where the service provider receives and verifies the returned MRO item against the return authorization and other documentation and prepares the item for transfer. The activities such as receiving product, verifying, recording product receipt, determining put-away location, putting away and recording location that a company performs at its own warehouses. May include quality inspection. The activities such as receiving product, verifying, recording product receipt, determining put-away location, putting away and recording location that a company performs at its own stores. May include quality inspection. The process of recovering excess and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract product as available inventory and disposition excess not usable for sale. Activities associated with post-production documentation, testing, or certification required prior to delivery of product to customer. Examples include assembly of batch records fir regulatory agencies, laboratory tests for potency or purity, creating certificate of analysis, and sign-off by the quality organization. The process where the customer packages, and handles the MRO product in preparation for shipping in accord with pre-determined conditions. The product is then provided by the customer to the carrier who physically transports the product and its associated documentation to the service provider.
From Process Category/ Element #: DR1.4 DR3.4
Process Element
SR3.6
Receive MRO Product Receive Product
Process Element
DR2.3
Process Element
D1.8
Receive Product at the Store
Process Element
D4.2
Recover and Disposition Excess Product Release Product to Deliver
Process Element
SR3.8
Process Element
M1.6, M2.6
Return MRO Product
Process Element
SR2.5
TERM
Request MRO Return Authorization
TYPE
Process Element
DEFINITION
The process of a customer requesting and obtaining authorization, from a service provider, for the return of an MRO product. In addition to discussing the MRO issue, the customer and service provider would discuss enabling conditions such as return replacement or credit, packaging, handling, transportation and import / export requirements to facilitate the efficient return of the MRO product to the service provider. The customer may need to go through several return authorization iterations with multiple service providers before authorization is received. The process of validating, approving, and recording a Return Product Authorization (RPA) for excess inventory and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract. The process and actions required determining return replacement or credit. Inventory (both on hand and scheduled) is sourced and reserved for specific orders and delivery is committed to and scheduled. The return and disposition of defective products as defined by the warranty claims, product recall, nonconforming product and/or other similar policies including appropriate replacement. The return of excess inventory and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract An update to the aggregate Supply-Chain Forecasts of Demand by Product Family supporting the Market/Channel Plans. Corresponding Projections, supporting Make, Source, Deliver, Inventory and Response Time Plans through the Supply-Chain are produced from these Forecasts Together, they represent balanced Supply and Demand. An update to the expected cause and effect statements that are the base for the Revised Aggregate Forecast and Projections. These are reviewed periodically with actual results to verify the linkage of actual cause and effect. A revision to plan for capital expenditures necessitated by either changes in specific business plans or factors and assumptions affecting a business plan. (See Return on Assets Metrics) Loads are consolidated and routed by mode, lane, and location.
From Process Category/ Element #: SR2.3
Request Return Authorization
Process Element
DR3.1
Request Return Replacement or Credit Reserve Inventory (Resources) & Determine Delivery Date Return Defective Product Return Excess Product Revised Aggregate Forecast and Projections
DR1.2, DR3.2 D1.3, D2.3
Process Category
R1
Process Category Input/Output
R3 EP.9
Revised Business Assumptions Revised Capital Plan ROA Route Shipments
Input/Output
EP.9
Input/Output
EP.4, EP.5, EP.6
Acronym Process Element
D1.6, D2.6, D3.6
TERM
Routing Guide Schedule MRO Return Receipt
TYPE
DEFINITION
Information used to select modes, transportation lanes, available carriers, etc. Listing or routes, carriers & rates. The process where the service provider evaluates the MRO service requirements including negotiated conditions and develops a schedule that tells the Customer when to ship the part. The scheduling activity would also inform Receiving when to expect the shipment and where to send the part, for induction or storage, upon receipt. The process where the customer develops the schedule for a carrier to pick-up and deliver the MRO product. Activities include selecting the carrier and rates, preparing the item for transfer, preparing scheduling documentation and managing overall scheduling administration. Scheduling and managing the execution of the individual return deliveries of product against an existing warranty claim, product recall and nonconforming product, and/or other similar policies including appropriate replacement. Scheduling and managing the execution of the individual return deliveries of product against an existing RPA. Given plans for the production of specific parts, products, or formulations in specified quantities and planned availability of required materials, the scheduling of the operations to be performed in accordance with these plans. Scheduling includes sequencing, and, depending on the factory layout, any standards for setup and run. In general, intermediate manufacturing activities are coordinated prior to the scheduling of the operations to be performed in producing a finished product. Product due to arrive. Specific carriers are selected by lowest cost per route and shipments are rated and tendered. Performance targets in service related measures (i.e. delivery performance, lead times, etc.) compared to the established service requirements. Service levels are established by balancing requirements against operational strategy. A set of minimum acceptable values that describe service requirements of a particular industry, channel, and/or customer segment. Legal documentation of the contents of a shipment (e.g. way bill, bill of lading, export papers, etc....).
From Process Category/ Element #: D1.6, D2.6, D3.6 DR2.2
Schedule MRO Shipment
Process Element
SR2.4
Schedule Defective Product Return Schedule Excess Product Return Schedule Production Activities
Process Element
DR1.3
DR3.3 M1.1 M2.1 M3.2
Scheduled Receipts Select Carriers & Rate Shipments Service Levels
Input/Output Process Element Input/Output
D1.8 D1.7, D2.7, D3.6 EP.10
Service Requirements Shipping Documents
Input/Output Input/Output
EP.10 D1.10, D2.9, D3.8
TERM
Source Return MRO Product
TYPE
Process Category
DEFINITION
The process, initiated by the customer, of returning maintenance, repair, and overhaul items to a service provider. Process includes: customer identification that an action is required and determining what that action should be, communicating with the service provider, generating return documentation, and physically returning or disposing of the product. An aggregate material requirements plan used to schedule material deliveries to meet production plans. For restocks, the tasks associated with identifying the item location, stocking the shelf according to merchandise plans, and recording the appropriate inventory transaction. For promotional items and stock repositioning the tasks associated with shelf and point of sale preparation, stock placement, and end of sale activities. The movement of packaged products into a temporary holding location to await movement to a finished goods location. Products that are made to order may remain in the holding location to await shipment per the associated customer order. The actual move transaction is part of the Deliver process. A longer range, high-level plan that describes how a company intends to conduct business. Improve its market and competitive position, and increase its earnings performance. The effectiveness of an organization in managing assets to support demand satisfaction. This includes the management of all assets: fixed and working capital. The costs associated with operating the supply chain. The performance of the supply chain in delivering: the correct product, to the correct place, at the correct time, in the correct condition and packaging, in the correct quantity, with the correct documentation, to the correct customer. The agility of a supply chain in responding to marketplace changes to gain or maintain competitive advantage. A plan that describes goals and objectives for a supply chain and the steps that will be taken to reach those goals and objectives from the current performance levels. Standard measures that indicate how well a supply chain performs within certain categories of performance known as Performance Attributes, e.g. delivery reliability, flexibility and responsiveness, cost, and asset management.
From Process Category/ Element #: SR2
Sourcing Plans Stock Shelf
P1.4, P2.4 D4.4
Stage Product
Process Element
M1.5 M2.5 M3.6
Strategic Plan
Input/Output
EP.9
Supply Chain Asset Management Efficiency Supply Chain Costs Supply Chain Delivery Reliability Supply Chain Flexibility Supply Chain Performance Improvement Plan Supply Chain Performance Metrics
Performance Attribute Performance Attribute Performance Attribute
All
All All
Performance Attribute Input/Output
All EP.2
Input/Output
EP.2
TERM
Supply Chain Responsiveness Transfer MRO Product Verify Defective Product Verify Excess Product
TYPE
Performance Attribute Process Element Process Element Process Element
DEFINITION
The velocity at which a supply chain provides products to the customer. The process where the service provider transfers the MRO product to the appropriate process to implement the disposition decision. The process and actions required determining the cause of defective product conformance to requirements and recording disposition profile. The process of verifying excess product and/or serviceable or obsolete products as defined by the terms and conditions of a customer/supplier contract as available inventory and disposition excess not usable for sale.
From Process Category/ Element #: All DR2.4 SR1.5 SR3.7
METRICS
Level 1 Metrics are primary, high level measures that may cross multiple SCOR processes. Level 1 Metrics do not necessarily relate to a SCOR Level 1 process (PLAN, SOURCE, MAKE, DELIVER, RETURN).
TERM
# Of call backs as % of total inquiries % Defective
TYPE
Metric Metric
DEFINITION
Number of callbacks divided by total inquiries. The percentage of time a product is considered unacceptable against standard criteria. The # of unacceptable products divided by the total number of units produced during the manufacturing run. The number of invoices processed without issues and or errors divided by the total number of invoices processed in the measurement period Amount of valid MAKE information divided by original source data. The % of time an equipment/operation is idle due to no WIP in queue for that particular equipment/operation. Percentage of orders received via electronic data interchange, EDI. Number of Faultless Installations divided by Total Number of Units Installed. The number of invoices issued without error. Examples of potential invoice defects are: Change from customer purchase order without proper customer involvement Wrong Customer Information (e.g., name, address, telephone number) Wrong Product Information (e.g., part number, product description) Wrong Price (e.g., discounts not applied) Wrong Quantity or Wrong Terms or Wrong Date Information technology capital assets that support production operations / total capital assets devoted to production operations. # of EDI generated invoices divided by the total number of invoices. The percentage of orders whose delivery is scheduled to within an agreed to time frame of the customers requested delivery date. The percentage of material receipts that are delivered directly to production or a consolidation point or to point of use on the production floor with no inspection or minor visual/paperwork inspection only.
From Process Category/ Element #: D1.1, D2.1 S1, S1.1, S3
% Invoices processed without issues and/or errors % Of Data Accuracy % Of Downtime Due to Non-availability of WIP % Of EDI Transactions % Of Faultless Installations % Of Faultless Invoices
Metric
S1.5, S2.5, S3.7
Metric Metric Metric Metric Metric
EM.3 EM.4 S1.1, S2.1, S3.3 D1.12, D2.11, D3.10 D1.13, D2.12, D3.11
% Of Information Management Assets Used / Production Assets % Of Invoice Receipts and Payments Generated via EDI % Of Orders Scheduled to Customer Request % Of Parts Delivered To Point Of Use
Metric
EM.3
Metric Metric Metric
S1.5, S2.5, S3.7 M2.1, M3.2, D2.3 M1.2, M2.2, M3.3
TERM
% Of Potential Suppliers Selected which Become Qualified % Of Qualified Suppliers which Meet Defined Requirements % Of Receipts Received without Item and Quantity Verification % Of Receipts Received without Quality Verification % Of Single and/or Sole Source Selections % Of Supplier Contracts Negotiated Meeting Target Terms and Conditions for Quality, Delivery, Flexibility and Cost % Of Time Data Available When Needed % Orders/Lines Processed Complete % Orders/Lines Received Complete % Orders/Lines Received Damage Free
TYPE
Metric
DEFINITION
The number of suppliers who become qualified divided by the total number suppliers who were selected for qualification in the measurement period The number of qualified suppliers who meet defined requirements divided by the total number of qualified suppliers used as sources in the measurement period # of receipts with Quantity variance requiring corrective actions (outside industry standard tolerance) divided by total number of receipts. # of receipts with Quality variance requiring corrective actions divided by total number of receipts. # of Single and/or Sole Source selections divided by the total number of awards The number of contracts negotiated meeting all business requirements divided by the total number of contracts processed in the measurement period
From Process Category/ Element #: S3.1
Metric
S3.1
Metric
S1.2, S2.2, S3.4
S1.3, S2.3, S3.5 S3.2 S3.2
Metric
The amount of time that data is accessible by applications during those time periods when it is scheduled to be available. Data availability is often measured as a percentage of an elapsed year. The number of orders / lines that are processed complete divided by the total orders / lines processed within the measurement period The number of orders / lines that are received complete divided by the total orders / lines received in the measurement period The number of orders / lines that are processed damage free divided by the total orders / lines processed in the measurement period The number of orders / lines that are received defect free divided by the total orders / lines processed in the measurement period The number of orders / lines that are received ontime to the demand requirements divided by the total orders / lines for the demand requirements in the measurement period The number of orders / lines that are received ontime with correct shipping documents divided by the total orders / lines processed in the measurement period
EM.3
S1, S2, S3 S1.2, S2.2, S3.4 S1.2, S2.2, S3.4
% Orders/Lines Received Defect Free % Orders/Lines Received On-Time To Demand Requirement % Orders/Lines Received With Correct Shipping Documents
Metric
S1.3, S2.3, S3.5
Metric
S1.2, S2.2, S3.4
Metric
S1.2, S2.2, S3.4
TERM
% Product Transferred Complete % Product Transferred Damage Free % Product transferred on-time to demand requirement % Product transferred without transaction errors % Return % Schedules changed within Suppliers Lead Time % Schedules generated within Suppliers Lead Time Actual Asset Life Maintenance Cost as % of Replacement Value Actual-to-Theoretical Cycle Time
TYPE
Metric
DEFINITION
The number of orders / lines that are transferred complete divided by the total orders / lines transferred in the measurement period The number of product orders/lines that are transferred damage free divided by the total orders / lines processed in the measurement period The number of product orders / lines that are transferred on-time to demand requirements divided by the total orders / lines transferred in the measurement period The number of transactions processed without error divided by the total transactions processed in the measurement period % Return to sales at any level of merchandise hierarchy The number of schedules that are changed within the suppliers lead-time divided by the total number of schedules generated within the measurement period The number schedules generated within the suppliers lead-time divided by the total schedules generated in the measurement period Measure of total lifecycle maintenance cost of an asset compared to its replacement cost. This ratio is based maintenance cost to-date so that that replacement or upgrade cost can be evaluated as the asset ages on an on-going basis. The ratio of the measured time required to produce a given output divided by the sum of the time required to produce a given output based on the rated efficiency of the machinery and labor operations. The cost of planning and scheduling for labor, training, storage, and transportation for In-Process product. Included are the documentation activities of managing, processing, updating, maintaining and storage of documentation. Total gross product revenue Total net assets # of days each engineering change impacts the delivery date divided by the total # of changes. # of days each schedule change impacts the delivery date divided by the total # of changes. Total payroll for salaried employees divided by total headcount Cycle time for implementing change notices divided by total number of changes. Average time from when a unit/product is deemed shippable by manufacturing until the unit/product actually ships to a customer.
From Process Category/ Element #: S1.4, S2.4, S3.6
Metric Metric
S1.4, S2.4, S3.6 S1.4, S2.4, S3.6
Metric
S1.4, S2.4, S3.6
Metric Metric
R1, R3 S1.1, S2.1, S3.3
Metric Metric
S1.1, S2.1, S3.3 EM.5
Metric
P1.2, P3, P3.4
Administrative Costs Associated with InTransit Handling/Movement of In-Process Product Asset Turns Average days per Engineering Change Average days per Schedule Change Average Plant-Wide Salary Average Release Cycle of Changes Build To Ship Cycle Time
Metric
EM.6
Metric Metric Metric Metric Metric Metric
M1, M1.3, M1.4, M2, M2.3, M2.4, M3, M3.4, M3.5 S1.1, S2.1, S3.3 S1.1, S2.1, S3.3 M2, M3 S1.1, S2.1, S3.3 M1.4, M1.5, M2.4, M2.5, M3.5, M3.6
TERM
Capacity Utilization
TYPE
Metric
DEFINITION
A measure of how intensively a resource is being used to produce a good or service. Some factors that should be considered are internal manufacturing capacity, constraining processes, direct labor availability and key components/materials availability. Cash-to-cash cycle time = inventory days of supply + days sales outstanding average payment period for materials (time it takes for a dollar to flow back into a company after its been spent for raw materials). For services, this represents the time from the point where a company pays for the resources consumed in the performance of a service to the time that the company received payment from the customer for those services. Number of distinct part numbers (purchased commodities) or service components/ resources sourced within the following areas: 200 miles, own country, own continent, and off - shore. Includes pick/pack and prepare for shipment time, in calendar days. Total MAKE cost to comply with regulatory requirements.
From Process Category/ Element #: P1, P1.3, M1, M1.1, M1.3, M1.4, M2, M2.1, M2.3, M3, M3.1, D2.3 P1, M1.2, M2.2, M3.3, D2.12, D3.11
Cash-to-Cash Cycle Time
Metric
Commodity Management Profile Complete Manufacture to Order Ready for Shipment Time Cost of compliance including administrative costs Cost of Goods Sold
Metric
P2, P2.2, P2.4
D2.8, D2.9 EM.8
Cost Of In-Process Metric Product (WIP) Damaged from Handling/Storage as a Percentage of Total Material Cost Cost of Managing Metric MAKE Information Cost of Noncompliance Cost per Invoice Costs Associated with Managing Production Performance as a % Manufacturing Controllable Cost Create Customer Order Costs Metric Metric Metric
The cost associated with buying raw materials and All producing finished goods. This cost includes direct costs (labor, materials) and indirect costs (overhead). The costs of in-process product (WIP) damaged from EM.4, EM.6 handling/storage divided by the total cost of those materials. The cost of managing, updating, and maintaining the EM.3 information technology systems that support manufacturing operations. Measure of the MAKE costs for non-conformance EM.8 with regulatory documentation and process standards set by external entities (e.g. government). All costs associated with the receipt, review, S1.5, S2.5, S3.7 processing, and payment of a suppliers invoice for product received. Ratio of Cost for Managing Production Performance EM.2 to Manufacturing Controllable Cost.
Metric
Includes costs for creating and pricing configurations to order and preparing order documents.
D1.2, D2.2, D3.2
TERM
Cross training
TYPE
Metric
DEFINITION
The providing of training or experience in several different areas (e.g., training an employee on several machines rather than one). Cross - training provides backup workers in case the primary operator is unavailable. The cumulative external and internal lead-time to build shippable product (if you start with no inventory on-hand, no parts on-order, and no prior forecasts existing with suppliers), in calendar days. Includes costs for invoicing, processing customer payments, and verifying customer satisfaction. Includes product installation, acceptance and product up and running time, in calendar days. Time, in calendar days, from when the customer authorizes an order to the time that the order is received. Reductions of actual quantities of items in stock, in process, or in transit. The loss may be caused by scrap, theft, deterioration, evaporation, etc. 5 point annual average of gross accounts receivable (total gross annual sales 365) All time associated with unloading, receiving, inspecting, and placing incoming materials into inventory and processing payment to the supplier including recording exceptions, moving incoming materials to storage location, and inputting data into inventory systems. The percentage of orders that are fulfilled on or before the original scheduled or committed date. The percentage of orders that is delivered on the customers requested date.
From Process Category/ Element #: M3.2
Cumulative Source/Make Cycle Time Customer Invoicing/ Accounting Costs Customer Receipt of Order to Installation Complete Customer Signature/Authorization to Order Receipt Time Damage and Shrinkage
Metric
P1, P2, P3, P3.3, P3.4 D1.13, D2.12, D3.11 D2.10, D2.11, D3.9, D3.10 D1.2, D2.2, D3.2 R1, D4
Metric
Days Sales Outstanding DELIVER Cycle Time
Metric Metric
D1.13, D2.12, D3.11 D1, D2, D3
Delivery Performance to Customer Commit Date Delivery Performance to Customer Request Date
Metric
Metric
Demand/ Supply Planning Costs
Metric
Distribution Costs
Metric
Dock to Stock Cycle Time
Metric
Costs associated with forecasting, developing finished goods or end item inventory plans, and coordinating Demand/Supply process across entire supply chain, including all channels. (Not including MIS associated costs.) Includes costs for warehouse space and management, finished goods receiving and stocking, processing shipments, picking and consolidating, selecting carrier, and staging products/systems. Definition to be determined for next release
M1, M2, M3, M3.1, D1.3, D1.10, D2, D2.9, D3, D3.8 P1, P1.3, P4, P4.3, P4.4, M1, M2, M3, D1.10, D1.3, D2, D2.3, D2.9, D3, D1.3, D3.8 P1
D1.8, D1.9, D2.4, D2.5, D2.6, D2.7, D2.8, D3.5, D3.6, D3.7 D1.8
TERM
Documentation Downside Delivery Flexibility
TYPE
Metric Metric
DEFINITION
Number of orders without correct documentation supporting the order, including packing slips, bills of lading, invoices, etc. Percentage delivery reduction sustainable at 30 days prior to delivery with no inventory or cost penalties. Percentage installation reduction sustainable at 30 days prior to installing with no inventory or cost penalties. Percentage order reduction sustainable at 30 days prior to shipping with no inventory or cost penalties. The percentage order reduction sustainable at 30 days prior to delivery with no inventory or cost penalties. Percentage shipment reduction sustainable at 30 days prior to shipping with no inventory or cost penalties.
From Process Category/ Element #: D2.8 D1, D1.8, D1.11, D1.13, D2, D2.10, D2.12, D3, D3.9, D3.11 D1.12, D2.11, D3.10 D1.2, D2.2, D3.2, D3.3, D3.4 M1.1, M2.1, M3.2 D1.5, D1.9, D1.10, D2.5, D2.8, D2.9, D3.5, D3.7, D3.8 EM.8
Downside Installation Flexibility Downside Order Flexibility Downside Production Flexibility Downside Shipment Flexibility
Metric Metric Metric Metric
Downtime in MAKE Due Metric To Compliance Issues ECO (Engineering Change Order) Cycle Time ECO cost Metric
Metric
End-of-Life Inventory Equipment Utilization
Metric Metric
Equipment/Facility Metric Maintenance Cost as % of Manufacturing Controllable Cost Field Finished Goods Metric Inventory Days of Supply
The measure of process downtime due to noncompliance to external and internal regulatory documentation or process standards (e.g. specifications, SPC, governmental regulations, etc.) The total time required from request for change from M3 customer, engineering, production or quality control to revise a blueprint or design released by engineering, and implement the change within the Make operation. Costs incurred from revisions to a blueprint or M3, M3.1 design released by engineering to modify or correct a part. The request for the change can be from a customer or from production quality control or another department. Inventory on hand which will satisfy future demand D1.8 for products that are no longer in production at your entity. Number of filled equipment SKU locations divided EM.4 by the total SKU locations provided by the equipment expressed as a percentage Cost to repair, alter, calibrate and maintain EM.5 production equipment divided by total Manufacturing Controllable Cost. The inventory which is kept at locations outside the four walls of the manufacturing plant, i.e. distribution center, warehouse.
D2.9, D2.11, D3.10
TERM
Fill Rates
TYPE
Metric
DEFINITION
The percentage of ship-from-stock orders shipped within 24 hours of order receipt. For services, this metric is the proportion for services that are filled so that the service is completed within 24 hours Sum of all costs associated with finished goods inventory: opportunity cost, shrinkage, insurance and taxes, total obsolescence, channel obsolescence and field sample obsolescence. Finished goods inventory days of supply are calculated as gross finished goods inventory (value of transfers/365 days). Plant finished goods inventory days of supply are calculated as gross plant finished goods inventory (value of transfers/365 days). Forecast accuracy is calculated for products and/or families for markets/distribution channels, in unit measurement. Forecast Accuracy = Forecast Sum - Sum of Variance Forecast Sum Where: Forecast Sum = The sum of the units forecasted to be shipped in each month based upon the forecast generated at the critical time fence. Sum of Variances = The sum of the absolute values, at the forecasted line item level, of the differences between each month's forecast as defined above and actual demand for the same month. The time between forecast regenerations that reflect true changes in marketplace demand for deliverable end products. Only true "bottoms-up" forecasts are counted: for example, if weekly or monthly updates to the forecast only re-calendar or shift dates for the forecast to avoid changing the annual dollar-based forecast, they should not be considered true forecast regenerations. Also replenishment interval is the time between successive replenishment orders. # Of received parts which fail inspection divided by the total # of parts received Ratio of total number of employees required to support production in general without being related to a specific product, indirect labor, to the total number of employees that is specifically applied to the product being manufactured or used in the performance of the service, direct labor. The percentage of time work-in-process is not completed. 1 minus the percentage of completed work-in-process units. Includes costs for verifying site preparation, installing, certifying, and authorizing billing.
From Process Category/ Element #: P1, P1.3, P4, P4.4, M1.3, D1, D1.3, D1.9, D2 D1.3
Finished Goods Inventory Carrying Costs Finished Goods Inventory Days of Supply Finished Goods Inventory Days of Supply Forecast Accuracy
Metric
P4, P4.4, D1, D1.3, D1.8, D2, D3, D3.8 M1.5, D2.8, D3.7 EP.4, EP.5, EP.6, EP.7, P1, P1.1, P2.1, P3.1, P4, P4.1, P4.2
Forecast Cycle
Metric
P1.1, P2.1
Frequency of Replenishment Incoming Material Quality Indirect to Direct Labor Headcount Ratio
P2 D1.8 M1, M2, M3
In-Process Failure Rates Installation Costs
Metric Metric
M3.4 D2.11, D3.10
TERM
Intra-Manufacturing RePlan Cycle
TYPE
Metric
DEFINITION
Time between the acceptance of a regenerated forecast is by the end-product producing location and the reflection of the revised plan in the master production schedule of all the affected plants, excluding external vendors. The absolute value of the sum of the variance between physical inventory and perpetual inventory The percentage of total gross inventory (based on value) covered by expected demand within specific time buckets. The absolute value of the sum of the variance between physical inventory and perpetual inventory. Or the number of accurate part cycle counts divided by the total number of cycle counts performed expressed as a percentage. Total gross value of inventory at standard cost before reserves for excess and obsolescence. Only includes inventory on company books, future liabilities should not be included. Five point annual average of the sum of all gross inventories (raw materials & WIP, plant FG, field FG, field samples, other) (COGS 365). The annual obsolete and scrap reserves taken for inventory obsolescence expressed as a percentage of annual average gross inventory value. The time required for a specific machine, resource, work center, process, or line to convert from the production of the last good piece of item/product/grade of A to the first good piece of item/product/grade of B. The percentage of time a machine facility is idle; 1 minus the utilization rate. The sum of the following average times: Order release to start actual build + Total build cycle + End build to leaves plant (i.e., moves to on/off-site distribution or goes to customer). For continuous and mixed processes, manufacturing cycle time is calculated as the average number of units (doses, kilos, pounds, gallons, etc.) in process divided by the average daily output in units. The ratio of the time needed to make a decision about a particular process divided by the cycle time of that process. (This generates a number that is better if it is lower). For example, if an operation can be performed in 2 hours, and it takes 4 hours to make a decision about that operation, the ratio would be 200%. The Timeframe would be affected by the time it takes to collect data, process information, develop knowledge and evaluate the situation, and implement the decision.
From Process Category/ Element #: M1.3, M2.3, M3.4
Inventory Accuracy Inventory Aging Inventory Cycle Counting Accuracy
M1.2, M2.2, M3.3, D4 M1, M2, M3 EM.4
Inventory Days Of Supply
Metric
P1, P1.3, S1, S1.4, S2, S2.4, S3, S3.6, M1.1, M2.1, M3.2
Inventory Obsolescence as a % of Total Inventory Item/Product/Grade Changeover Time
Metric Metric
M1, M1.2, M2.1, M2.2, M3.3, D1.8, D2 M1, M1.3, M2, M2.3
Machine Wait Time MAKE Cycle Time
Metric Metric
M1.1, M2.1 M1.2
Management Decision Timeframe Ratio
Metric
EM.3
TERM
Manufacturing Controllable Cost
TYPE
Metric
DEFINITION
All costs under direct control of the MAKE function. These costs are: direct labor and expenses, indirect labor and expenses, asset charges, and excess material & packaging costs. (Raw and packaging materials used to make a finished good are not included.) The total amount of time required converting the identification of capacity needs for key material resources to the receipt of those resources. The average time interval between failures for repairable equipment and facilities for a defined unit of measure (e.g. operational hours, cycles, miles). The average time to repair equipment and facilities for a defined unit of measure (e.g. operational hours, cycles, miles). Total number of revisions to a blueprint or design released by engineering to modify or correct a part, engineering change orders (ECO). The request for the change can be from a customer or from production quality control or another department. Total number of internal and external direct production material suppliers used. Number of orders for which not all of the items on order are delivered in the quantities requested. Consolidation: is defined as the activities associated with filling a customer order by bringing together in one physical place all of the line items ordered by the customer. Some of these may come directly from the production line and others may be picked from stock. The following profiles have been captured: Shipped direct to customer's dock from point of manufacture (No Consolidation). Shipped direct to the customer with consolidation completed, local to customer by your transport company. Moved to on-site staging location for consolidation and shipment direct to customer. Moved to on-site stockroom for later pick, pack and ship. Shipped to different locations for consolidation or later pick, pack and ship. Includes costs for maintaining the customer database, credit check, accepting new orders and adding them to the order system as well as later order modifications. Including release to manufacturing, order configuration verification, production scheduling, build, pick/pack, and prepare for shipment time, in calendar days.
From Process Category/ Element #: EM.2, EM.3, EM.5
Material Requisition Cycle Time Mean Time Between Failure Mean Time to Repair Asset Number of ECOs
M1.2, M2.2, M3.3 EM.5 EM.5 M3, M3.1
Number of Supply Sources On Time in Full Order Consolidation Profile
P2, P2.2, P2.4 D2.8 D1.4
Order Entry and Maintenance Costs Order Entry Complete to Order Ready for Shipment Time
Metric
D1.2, D2.2
Metric
D1.4, D1.5, D1.6, D1.7, D1.9, D1.10, D3.5, D3.6, D3.7
TERM
Order Entry Complete to Start Manufacture Time Order Fulfillment Costs
TYPE
Metric Metric
DEFINITION
Time from completion of order entry to that of the release to manufacturing, in calendar days. Includes costs for processing the order, allocating inventory, ordering from the internal or external supplier, scheduling the shipment, reporting order status and initiating shipment. The average actual lead times consistently achieved, from Customer Signature/ Authorization to Order Receipt, Order Receipt to Order Entry Complete, Order Entry Complete to Start-Build, Start Build to Order Ready for Shipment, Order Ready for Shipment to Customer Receipt of Order, and Customer Receipt of Order to Installation Complete. The aggregation of the following cost elements (contained in this glossary): Create Customer Order Costs Order Entry and Maintenance Costs Contract/Program and Channel Management Costs Installation Planning Costs Order Fulfillment Costs Distribution Costs Transportation Costs Installation Costs Customer Invoicing/Accounting Costs The total amount of time required converting a customer order into a receipt by the customer. Including total transit time (all components to consolidation point), consolidation, queue time, and additional transit time to customer receipt of order, in calendar days. Time required, in calendar days, for order revalidation, configuration check, credit check, and scheduling of received orders. Costs incurred in the operation of a business that cannot be directly related to the individual products or services produced. These costs, such as light, heat, supervision, and maintenance, are grouped in several pools and distributed to units of product or service by some standard allocation method such as direct labor hours, direct labor dollars, or direct materials dollars. The total time required to perform a series of activities that containerize completed products for storage or sale to end-users. (Within certain industries, packaging may include cleaning or sterilization.) The cost to package product as a finished good, not including intermediate handling of materials, based on given number of Delivered Finished Goods.
From Process Category/ Element #: D2.4, D2.5, D2.6, D2.7, D3.4 D1.3, D2.3, D3.3, D3.4 M3, M3.1, D1, D2, D3
Order Fulfillment Cycle Time
Metric
Order Management Costs
Metric
D1, D1.1, D2, D2.1, D3, D3.1
Order Management Cycle Time Order Ready for Shipment to Customer Receipt of Order Time Order Receipt to Order Entry Complete Time Overhead Cost
Metric Metric
P4, P4.1, P4.2 D1.11, D2.9, D3.8 D1.2, D1.3, D2.2, D2.3, D3.3 M1, M2, M3
Metric Metric
Package Cycle Time
Metric
M1.4, M2.4, M3.5
Packaging Cost
Metric
M1.4, M2.4, M3.5
TERM
Perfect Order Fulfillment
TYPE
Metric
DEFINITION
A perfect order is defined as an order that meets all of the following standards: Delivered complete; all items on order are delivered in the quantities requested Delivered on time to customers request date, using your customers definition of on-time delivery Documentation supporting the order including packing slips, bills of lading, invoices, etc., is complete and accurate Perfect condition: Faultlessly installed (as applicable), correct configuration, customer-ready, no damage Placement information as measured by RFID
From Process Category/ Element #: D1.10, D1.11, D2, D2.2, D2.9, D2.10, D3, D3.8, D3.9
Placement Information (RFID) Plant Cost Per Hour Plant-Level Order Management Costs
P2, P4
Product Acquisition Costs
Metric
Product Losses (Sourced/inprocess/finished) Product Management and Planning Costs as a % of Product Acquisition Costs
Metric
Metric
Product Process Engineering as a % of Product Acquisition Costs
Metric
Total planning expenditures divided by the total M1, M2 number of hours spent exercising the plan The aggregation of the following cost elements for M2.1, M3.2 which manufacturing is central focal point of orders (contained in this glossary): Create Customer Order Costs Order Entry and Maintenance Costs Contract/Program and Channel Management Costs Installation Planning Costs Order Fulfillment Costs Distribution Costs Transportation Costs Installation Costs Customer Invoicing/Accounting Costs Product acquisition costs include costs incurred for S1, S2, S3, the production of product: sum of product D1.8 management and planning, supplier quality engineering, inbound freight and duties, receiving and product storage, incoming inspection, product process engineering and tooling costs. The total cost of lost material from receipt and M1, M2, M3 inspection of raw materials to the shipping of the finished good, per given number of Inventory Turns or Delivered Finished Goods. Product (Commodity) Management and Planning S1.1, S2.1, All costs associated with supplier sourcing, S3.2, S3.3 contract negotiation and qualification and the preparation, placement, and tracking of a Purchase Order expressed as a percentage of product acquisition costs. This category includes all costs related to buyer/planners. Product Process Engineering Cost associated with S3.1 tasks required to document and communicate product specification, as well as reviews to improve the manufacturability of the purchased item expressed as a percentage of product acquisition costs.
TERM
Product Structure Product Structure Cycle Time Production Material Administrative Cost Production Material Cycle Time Production Material Handling Cost Production Material Handling Damage Production Material Storage Cost Production Plan Adherence
TYPE
Definition Metric Metric Metric Metric Metric Metric Metric
DEFINITION
Recipes / formulas / BOMs / that define the composition of a product Total time from demand to release of product structure Administrative costs associated with the handling / storage / movement of materials Time required moving material to point of use. Cost of handling/movement of materials used to support production. Cost of material damaged from handling / storage / movement as a percentage of total material cost. Cost of storage space used for the production materials. Production Plan Adherence is calculated at the shippable end-product level in units, using the following formula: Production Plan - Sum of Variance Production Plan Where: Production Plan = The sum of the units planned to be completed (i.e., placed into inventory or shipped) in each month based upon the plan generated in the previous month. Sum of Variances = The sum of the absolute values, at the end item level, of the differences between each month's production plan as defined above and actual production for the same month. Total Time from demand rules for production rules until releases of production details. The typical standard lead-time (after receipt of order) currently published to customers by the sales organization. For typical orders only, not standing/re-supply orders. The typical standard lead-time (after receipt of order) currently published to customers by the sales organization. For typical orders only, not standing/re-supply orders. Number of the following distinct part numbers of: Raw materials, Externally manufactured intermediates, Toll manufactured finished products, Packaging product, Labeling product that are sourced within the following areas: 200 miles, Own country, Own continent, Off-shore. Setting aside of items from availability for use or sale until all required quality tests have been performed and conformance certified.
From Process Category/ Element #: EM.1 EM.1 EM.4 EM.4 EM.4 EM.4 EM.4 P3, P3.4
Production Rules Preparation Cycle Time (PRPCT) Published Delivery Cycle Time Published Delivery Lead Times Purchased Product by Geography
Metric Metric
EM.1 D1, D2
Metric
D1, D2
Metric
S3.1
Quarantine Time
Metric
M1.6, M2.6
TERM
Ratio Of Actual To Theoretical Cycle Time
TYPE
Metric
DEFINITION
The ratio of the measured time required for completion of a set of tasks divided by the sum of the time required to complete each task based on the rated efficiency of the machinery and labor operations. The ratio of these two metrics provides an understanding into the effect of IT on the Make operating cost. Raw material & WIP inventory days of supply are calculated as gross raw material and WIP inventory (value of transfers/365 days). Raw material or product inventory days of supply are calculated as gross raw material or product inventory (value of transfers/365 days). The costs associated with breakage, pilferage, and deterioration of raw material inventories. A measure of receipt conformity of recorded values to the actual values. Receiving and Product Storage All costs associated with taking possession of and storing product. Includes warehouse space and management, product receiving and stocking, processing work orders, pricing, and internal product movement. This does not include incoming inspection. The total amount of time required moving materials from an inbound location to an internal storage location. All costs associated with taking possession of product expressed as a percentage of product acquisition costs. This does not include inspection. Total elapsed time from time product is received to time it is passed to next process The time required to complete regulatory documentation during a production run. The product cycle less this metric is the basic production cycle time. Does not include required product data collection for quality or process improvement. The time between the initial creation of the regenerated forecast and its reflection in the Master Production Schedule of the end-product production facilities. Minimizing elapsed time, including all delays, to receive a customer order and transform resources into goods and services, through to the point of customer receipt. A financial measure of the relative incomeproducing value of an asset. It is calculated as net income divided by total assets.
From Process Category/ Element #: M1.3, M1.4, M2.3, M3.4
Ratio of the Cost of Managing MAKE Information/ Manufacturing Controllable Costs Raw Material & WIP Inventory Days of Supply Raw Material or Product Days-of-Supply Raw Material Shrinkage Receiving Accuracy Receiving & product storage costs as a % of Product Acquisition Costs
Metric
EM.3
Metric Metric Metric Metric Metric
P2, P3, D2, D3 M1.2 P2 S1 S1.3, S2.3, S3.5
Receiving and Put Away Cycle Time Receiving costs as a % of Product Acquisition Costs Receiving Cycle Time Regulatory Documentation Cycle Time Re-plan Cycle Time
M3.3 S1.2, S2.2, S3.4 S1.2, S2.2, S3.4 EM.8
Metric
M1, M2
Responsiveness Lead Time Return on Assets
Metric
M1.1, M2.1, M3.2 P1
Metric
TERM
Sales Per Employee Schedule Achievement
TYPE
Metric Metric
DEFINITION
Total product revenue divided by total number of full-time equivalent employees The percentage of time that a plant achieves its production schedule. This calculation is based on the number of scheduled end-items or total volume for a specific period. Note: over-shipments do not make up for under-shipments. This is the measure of the time required to regenerate the schedule to manufacture specific parts, products, or formulations in specified quantities within a specific time frame. The schedule interval must be less than the manufacturing cycle time to be (not complete) The measure of the cost of people, information systems, management direction, and any other costs associated with provided schedules for manufacturing. Expenses incurred from material falling outside of specifications and possessing characteristics that make rework impractical. The costs associated with breakage, pilferage, and deterioration of inventories. Stock keeping unit The number of times a SKU cycles or turns over in year; divide the average inventory level into the annual cost of sales APICS. Cumulative lead-time (total average combined inside-plant planning, supplier lead time [internal or external], receiving, handling, etc. from demand identification at the factory until the products are available in the production facility) required sourcing 95% (chosen to eliminate outlying data) of the dollar value of products from internal and external suppliers. The time required to achieve a sustained increase in volume by 20%. Total elapsed time from the time the requirement is identified until the source(s) are identified. Total elapsed time from time the source is identified until it is qualified and approved. Total elapsed time from the time the RFQ is created until the contract is awarded and accepted by the supplier. The time required to provide manufacturing with a needed component, service, or additive from the time of requisition to the time of delivery. All costs associated with the identification of potential suppliers, evaluation of RFQs and supplier qualifications and the generation of a contract expressed as a percentage of product acquisition costs.
From Process Category/ Element #: P1 M1.1, M2.1, M3.2
Schedule Interval
Metric
M1.1, M2.1
Scheduled Resource Cost Scrap expense Shrinkage SKU SKU Turnover
Metric
M1.1, M2.1
M1.3, M2.3, M3.4 P4 EM.4 P2, P4
Source Cycle Time
Metric
S1.2, S2.2, S3.4
Source Flexibility Source Identification Cycle Time Source Qualification Cycle Time Source Selection Cycle Time Sourced/In-Process Product Requisition Cycle Time Sourcing Costs as a % of Product Acquisitions Costs
P2, P2.3 S3.1 S3.1 S3.2 M1.2, M2.2, M3.3 S3.2
TERM
Staging Time
TYPE
Metric
DEFINITION
The percentage of the time that the actual stage cycle time (interval of time required for individual products to move into a temporary holding location to the time of actual shipment or movement into finished goods) complies with customer requirements. A lack of materials, components, or finished goods that are needed. Volume of all materials stored divided by the total volume of the storage facility expressed as a percentage. The time required for a supplier to complete a single cycle, beginning with the receipt of an order and ending with the fulfillment of that order. The percentage of time a supplier completes a commitment to a customer to ship or deliver an order within 24 hours. The percentage of orders that are fulfilled on or before the original customer requested date (suppliers performance measured by the customer). Costs associated with paying invoices, auditing physical counts, performing inventory accounting, and collecting accounts receivable. (Does not include customer invoicing/accounting costs.) Total time and/or cost variance to standard related to expediting a product through the Total Source Cycle.
From Process Category/ Element #: M1.5, M2.5
Stock Outs or In Stocks Storage Space Utilization Supplier Cycle Time Supplier Fill Rate Supplier On-Time Delivery Performance Supply Chain Finance Costs Time and Cost related to Expediting the Sourcing Processes of Procurement, Delivery, Receiving and Transfer. Time and/or Cost Reduction related to Expediting the Transfer Process. Time and/or Cost reduction related to Source Identification
P4, D1, D4 EM.4 P2, P2.4 P2, P2.4 P2, P2.3, P2.4 P1.3
Metric
S1, S2, S3
Metric
Metric
Time Interval Between a Metric Performance Standard Request and Availability. Time to Comply with Metric Regulatory Changes Total Build Time Metric
Expediting cycle time for Transfer Process S1.4, S2.4, S3.6 compared to the Standard Cycle time for the Transfer Process. Delta is the additive cost required by the disconnect. Desired State Source Identification Cycle metric S3.1 compared to the As-Is State Source Identification Cycle metric. The delta being the cost /cycle improvement. The time interval from the receipt of a performance EM.2 standard request and the availability of the standard. Time interval between regulatory change issuance and implementation of the change. Total build time is the average time for build-to-stock or configure-to-order products from when production begins on the released work order until the build is completed and unit deemed shippable. Costs associated with the Deliver Processes including execution, administration, and planning. EM.8 M1.3, M2.3, M3.4 P4
Total Deliver Costs
Metric
TERM
TYPE
DEFINITION
Direct and indirect costs that can be attributed to inaccurate production details. Includes rework, scrap, recalls, preparation, etc. Total elapsed time from time of requirement identification to time product is in the appropriate stocking location within the supply chain and the supplier payment is authorized. Total source lead time is the cumulative lead time required to source 95% of the dollar value of materials from internal and external suppliers. Costs associated with the supply chain including execution, administration, and planning.
Total Internal and/or Metric External Costs That Are The Result Of Inaccurate Production Rule Details Total Source Cycle Metric Time to Completion Total Source Lead Time Total Supply Chain Costs Metric Metric
From Process Category/ Element #: EM.1
S1, S2, S3
Total WIP Inventory DOS Training/ Education
Metric Metric
Transfer and Product Storage Costs as a % of Product Acquisition Costs Transfer Cycle Time Transportation Costs Unit Cost
Metric
Total WIP inventory days of supply are calculated as gross WIP inventory (value of transfers/365 days). The total number of programs aimed at new work methods for experienced workers and short courses in current practices for new employees to increase productivity. All costs associated with the storage and/or movement of the product to the next appropriate stocking location (transfer point) in the supply chain expressed as a percentage of product acquisition costs. Total elapsed time from the time the product is presented for transfer until product is moved to the next process. Includes all company paid freight and duties from point of manufacture to end-customer or channel. Total labor, material, and overhead cost for one unit production, e.g., one part, one gallon, one pound. Percent of time facilities or equipment are unavailable when scheduled compared to the Total Build Time (Production Time). Number of days required to achieve an unplanned sustainable 20% increase in deliveries.
S1, S1.1, S2, S2.1, S3, S3.1, S3.2, S3.3 EP.1, EP.2, EP.3, EP.4, EP.5, EP.6, EP.7, EP.8, EP.9, E.10, P4 P3, P3.3, P3.4 M1.3, M2.3
S1.4, S2.4, S3.6
S1.4, S2.4, S3.6 D1.4, D1.5, D1.6, D1.7, D2.9, D3.8 M2, M3 EM.5
Unplanned Metric Maintenance Downtime % of total Production Time Upside Delivery Metric Flexibility
Upside Installation Flexibility Upside Order Flexibility Upside Production Flexibility
Number of days required to achieve an unplanned sustainable 20% increase in installations Number of days required to achieve an unplanned sustainable 20% increase in orders. The number of days required to achieve an unplanned sustainable 20% increase in production.
D1, D1.8, D1.11, D1.13, D2, D2.10, D2.12, D3, D3.9, D3.11 D1.12, D2.11, D3.10 D1.2, D2.2, D3.2, D3.3, D3.4 M1.1, M2.1, M3.2
TERM
Upside Shipment Flexibility
TYPE
Metric
DEFINITION
Number of days required to achieve an unplanned sustainable 20% increase in shipments.
Validation Frequency
Metric
Value of assets provided by service provider (cost avoidance) Value-Added Employee Productivity Verification Costs as a % of Product Acquisition Costs Verification Cycle Time Warranty and Returns
Metric
The amount of time between reviews of a process. For example, Production Process Validation Frequency would refer to the amount of time between the reviews of the Production Process. This generally would be performed periodically to ensure that the process is generating the desired results with the desired inputs. Value of process and/or procedure provided by a service provider that directly results in cost savings in reviewing and selecting a source. Value added per employee is calculated as total product revenue less total material purchases total employment (in full-time equivalents). All costs associated with verifying the product meets all quality and contract specifications expressed as a percentage of product acquisition costs. Total elapsed time from time product starts the validation process until it moves to the next process. Number of returns within the warranty period. Warranty is a commitment, either expressed or implied, that a certain fact regarding the subject matter of a contract is presently true or will be true. Warranty costs include materials, labor and problem diagnosis for product defects. The ratio of usable output from a process to its input. The condition that occurs when the output of a process is not consistently repeatable either in quantity, quality, or combination of these.
From Process Category/ Element #: D1.5, D1.9, D1.10, D2.5, D2.8, D2.9, D3.5, D3.7, D3.8 EM.3
S3, S3.1
M1, M1.3, M2, M2.3, M3, M3.4 S1.3, S2.3, S3.5 S1.3, S2.3, S3.5 M1.3, M1.4
Warranty Costs Yield Yield Variability
M1, M1.3, M1.4, M2, M2.3, M2.4, M3, M3.4, M3.5 M1, M1.3, M2, M2.3, M2.4, M3.4 M1.3, M2.3, M3.4
APPENDIX
The Following Metrics were renamed or considered to be Level Four or unnecessary for SCOR Version 5.0 by the Technical Committees, so are no longer included in the Model Glossary for Version 6.0 either. New Name/reason for exclusion are included for the information of the user. From Process TERM DEFINITION New Name/Reason for Category/ Exclusion in 5.0/6.0 Element#: # of Orders Not Number of orders for which not all of the items on D2.8 Replaced by "On Time In Full" Delivered order are delivered in the quantities requested. and "Documentation" to Complete measure Reliability # of Orders with Number of orders without correct documentation D2.8 Replaced by "On Time In Full" Complete and supporting the order, including packing slips, bills of and "Documentation" to Accurate lading, invoices, etc. measure Reliability Documentation Build Cycle Build cycle time is the average cycle time for build- P Considered out of scope for Time to-stock products calculated as the average number PLAN of units in process divided by the average daily output in units. Faultless The number of invoices issued without error. D1.13, Now only listed as "% of Invoices Examples of potential invoice defects are: Change D2.12, Faultless Invoices" from customer purchase order without proper D3.11 customer involvement. Wrong Customer Information (e.g., name, address, telephone number) Wrong Product Information (e.g., part number, product description) Wrong Price (e.g., discounts not applied) Wrong Quantity or Wrong Terms or Wrong Date Finished Goods The costs associated with breakage, pilferage, and P4 Considered to be Level 4 Shrinkage deterioration of finished goods inventories Inventory Inventory Carrying Costs are the sum of opportunity P1 Considered out of scope for Carrying Costs cost, shrinkage, insurance and taxes, total PLAN obsolescence for raw material, WIP, and finished goods inventory, channel obsolescence and field sample obsolescence. Make Flexibility This time it typically takes to implement a P3, P3.3 Difficult to measure and sustainable unplanned increase in end product calculate supply of 20% if each of the factors shown below was the only constraint; Internal manufacturing capacity; Direct labor availability; Constraining processes; Key components/materials availability; Direct labor availability Manufacturing Total time from demand to release of manufacturing EM.1 Difficult to measure and Preparation details calculate Cycle Time (MPCT) Material Total Material carrying costs which include all capital P3 Not relevant for SCOR Overhead Cost cost, storage cost, and risk costs divided by the total Per Dollar of cost of acquiring the material. Material Expenditure
TERM
Number of End Products/SKU's Percent Defective
DEFINITION
Total number of unique end item product offerings. End items are individually planned and managed. The percentage of time a product is considered S1, S1.1, unacceptable against standard criteria. The # of S3 unacceptable products divided by the total number of units produced during the manufacturing run.
From Process New Name/Reason for Category/ Exclusion in 5.0/6.0 Element#: P3, P3.2 Not relevant for SCOR Replaced by "% Orders/lines Processed Complete," "% Schedules Generated within Supplier's Lead Time," and "% Schedules Changed within Supplier's Lead Time" M2.1, M3.2, Replaced by "% of Orders D2.3 Scheduled to Customer Request" Replaced by "% of Parts Delivered to Point of Use, "% of Parts Received at Point of Use" Considered Level 4 metric Replaced by "Finished Goods Inventory Days of Supply" Considered to be Level 4
Percent of The percentage of orders whose delivery is Orders scheduled to within an agreed to time frame of the Scheduled to customer's requested delivery date. Customer Request Percent of parts The percentage of material receipts that are M1.2, M2.2, Delivered to delivered directly to production or a consolidation M3.3 Point of Use point or to point of use on the production floor with no inspection or minor visual/paperwork inspection only. Plan Stability The number of changes within the critical time frame EP.4, EP.5, defined as the boundary between flexible capacity EP.6, P1.4 and fixed capacity. Plant Finished Plant finished goods inventory days of supply are M1.5, D2.8, Goods calculated as gross plant finished goods inventory D3.7 Inventory Days divided (value of transfers/365 days). of Supply Product & The number of planning items with complete and EP.3, EP.7, Process Data accurate Product & Process Data divided by the total P1, P1.2 Accuracy (Bills number of planning items. of Material, Routings, Planning Factors, etc.) Production Upside Flexibility: The number of days required to M1.1, M2.1, Flexibility achieve an unplanned sustainable 20% increase in M3.2 production. Downside Flexibility: The % order reduction sustainable at 30 days prior to delivery with no inventory or cost penalties. Quality Levels Not Defined M1.3, M2.3 Raw Material Sum of all costs associated with raw material P2 Inventory inventory: opportunity costs, shrinkage, insurance Carrying Costs and taxes, and total obsolescence. Routing Data The numbers of planning items with complete and EP.3 Accuracy accurate routing information divided by the total number of planning items. Total Not Defined M1.3, M2.3, Manufacturing M3.4 Employment Touch Labor Not Defined M1.1, M2.1, Job M3.2 Classifications
Separated into Upside Production Flexibility and Downside Production Flexibility Considered out of scope Considered Level 4 metric Considered Level 4 metric Replaced by "Total Production Employment" Considered out of scope
From Process TERM DEFINITION New Name/Reason for Category/ Exclusion in 5.0/6.0 Element#: WIP Shrinkage The costs associated with breakage, pilferage, and P3 Considered Level 4 metric deterioration of WIP inventories. The loss of any material, part, and/or assembly that are being worked on or are waiting to be processed within the operations system. Work-InSum of all costs associated with WIP inventory: P3, P3.4 Considered Level 4 metric Process opportunity cost, shrinkage, insurance and taxes, Inventory and total obsolescence. Carrying Costs

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Supply-Chain Council, 2003. All rights reserved.

Copyright 2003 Supply-Chain Council, Inc.

Supply-Chain Operations Referencemodel Version 6.0

1 11 55 92 133 197 241 242 259 276

Process Terms Metrics

Supply-Chain Operations Reference-model (SCOR) 6.0 Introduction

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Supplier Suppliers Suppliers Supplier Supplier Internal or External

Customers Customers Customer Customer

SCOR Contains Three Levels of Process Detail

Supply-Chain Operations Reference-model

Process P1.1 Element Level (Decompose P1.2 Processes)

Figure 2 - SCOR is a hierarchical model with specific boundaries in regard to scope.

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Figure 3 - SCOR is a business process reference model.

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Performance Attributes and Level 1 Metrics

Customer-Facing Reliability Responsive- Flexibility ness

Internal-Facing Cost Assets

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Performance Attributes and Associated Level 1 Metrics

Supply Chain Responsiveness Supply Chain Flexibility Supply Chain Costs

Supply Chain Asset Management Efficiency

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SCOR Version 6.0 Changes

eBusiness Best Practice Changes

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The Technical Change Process

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P1: Plan Supply Chain

P1.1 Identify, Prioritize, and Aggregate Supply-Chain Requirements

P1.3 Balance Supply-Chain Resources with Supply-Chain Requirements

P1.4 Establish and Communicate Supply-Chain Plans

P1.2 Identify, Assess, and Aggregate SupplyChain Resources

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Process Element Number: P1.1

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Process Element Number: P1.2

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Process Element Number: P1.3

Collaborative Planning, Forecasting and Replenishment (CPFR) Business Intelligence (BI)

Customer Relationship Management (CRM)

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Process Element Number: P1.4

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P2: Plan Source

(EP.1) Planning Decision Policies

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Process Category: Plan Source Process Category Definition Performance Attributes

Supply Chain Event Management Systems

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Process Element Number: P2.1

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Process Element Number: P2.2

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Process Element Number: P2.3

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