Supply Chain Excellence: A Handbook for Dramatic Improvement Using the SCOR Model by Rosenbaum Robert

Author:Rosenbaum, Robert...
Language: eng
Format: epub
Published: 2014-05-02T16:04:19.842000+00:00

Consolidating Problems to Projects Using SCOR

Consolidating problems into projects is an easier task when someone is experienced with the filter and sort functions of Excel spreadsheets. The ability to organize a pivot table is even more useful.

In preparation for the first day’s meeting, the project manager consolidates the problems from all of the metric worksheets by copying and pasting them onto a single worksheet called Project Portfolio. With the Auto Filter on, the consolidation process begins.

The first step in the process is to filter the heading “SCOR Process” by SCOR Level 3 process ID. At this point, some problems may have more than one SCOR Level 3 ID, such as P1.1, D1.3, and P1.3; and some may have Level 2 IDs, such as P1. In the case of multiple Level 3 IDs, gain consensus on which process area is the most influential relating to the problem. In the case of Level 2 IDs, try to pick the most influential Level 3 process relating to the problem.

The second step in the process is to assign an arbitrary project number to all the problems resulting from the SCOR Level 3 filter; for example, all problems containing the SCOR Level 3 ID D1.3 get assigned the same project number. This routine is repeated for each SCOR Level 3 ID until all problems have a project number assigned.

To be clear, after the filtering, all problem statements should have a project number. It is conceivable (though not probable) that there could be 184 projects—one for each SCOR Level 3 element: 20 for PLAN, 17 for SOURCE, 22 for MAKE, 52 for DELIVER, 26 for RETURN, and 47 for ENABLE.

The focus for the next level of filtering, called Process Similarity, again uses the field called SCOR Process. This time the team uses a custom filter containing a SCOR Level 2 ID (i.e., S1, M2, P1, or D3). For this filter, the team attempts to consolidate projects based on process scope. For example, a filter using S1 may yield five projects—one each for S1.1, S1.2, S1.3, S1.4, and S1.5. There are at least four factors that influence project consolidation within a SCOR Level 2 process. The first is the physical location of where the process occurs. For example, S1.2, S1.3, and S1.4 (receiving, quality assurance, and “put-away”) are typically carried out in the raw material warehouse and therefore are candidates for consolidation.

The second factor is the function or functions performing the process. For example, if your suppliers drop-ship their products to your customer’s warehouse, purchasing may not only have to schedule the product but also enter the receipt transaction in the system when the shipment is physically received by the customer warehouse. In that case, S1.1 and S1.2 would be candidates for consolidation. The third factor is the degree of impact. If improving the scheduling process with suppliers accounts for 50 percent of the inventory benefit in the portfolio, the degree of effort and focus may warrant isolating the process with only one project. Likewise, consolidation is

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