Six Sigma Supply Chain Using the SCOR Framework

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Six Sigma Supply ChainUsing the SCOR Framework

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Session Objectives

• Assumptions
• Familiar with SCOR
• Understand Six Sigma philosophy
• Read the manuals

• Objectives
• Compare strategic intent of Six Sigma and SCOR
• Highlight integration of the two project
  approaches

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Six Sigma

• Sigma or standard deviation is a statistical
  calculation of variability often used to measure
  the defect rate of processes
• Where 1 sigma represents processes capable of
  30.85 good, 6 sigma references processes capable
  of 99.99966 good
• The purpose of applying Six Sigma goals to
  processes is to help drive the defect rate so
  that customer requirements are missed only 3.4
  times out of a million
• The Six Sigma project approach is called DMAIC or
  DMADV

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SCOR

• SCOR is a supply chain process reference model
  combining 3 levels of process detail, metrics,
  leading practices, and standardized definitions
• The purpose of SCOR is to improve supply
  performance through process improvement, design,
  and control
• The project approach is summarized in the SCOR
  Project Roadmap

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Six Sigma - DMAIC

• DEFINE the problem and what customers require
• MEASURE the defects and process operation
• ANALYZE the data and discover the causes
• IMPROVE the process by removing causes of defects
• CONTROL the process to maintain optimal
  performance

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Six Sigma - DMADV

• DEFINE customer requirements and goals
• MEASURE and match performance to customer
  requirements
• ANALYZE and assess process design
• DESIGN and implement new processes
• VERIFY results and maintain performance

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The SCOR Framework
The integrated processes of Plan, Source, Make,
Deliver and Return, spanning your suppliers
supplier to your customers customer, aligned
with Operational Strategy, Material, Work
Information Flows.
Deliver
Source
Make
Deliver
Make
Source
Source
Make
Deliver
Source
CustomersCustomer
SuppliersSupplier
Your Company
Supplier
Customer
Internal or External
Internal or External
Supply Chain Operations Reference Model
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SCOR Project Roadmap
Operations Strategy

• Supply Chain Scope
• Performance Metrics
• Supply Chain SCORcard
• Competitive Performance Requirements and SCORcard
  Gap Analysis

Analyze Basis of Competition

• AS IS Material Flow
• Disconnect Gross Opportunity Analysis
• Material Flow Strategy and Best Practice Analysis
• Supply Chain Strategy
• TO BE Material Flow

Material Flow
Configure Supply Chain
Align Performance Levels, Practices, and Systems
Information and Work Flow

• AS IS Work/Information Map
• Transactional Analysis
• Design Specifications
• TO BE Work/Information Map
• Prioritized List of Changes

• Master Schedule of Projects
• ROI Analysis
• Technology Selection
• Detail Requirements, Solution Design,
  Configuration, Test Go Live

Implementation
Implement Supply-Chain Changes
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High Level Comparison
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Project Players
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Define the Opportunity
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Customer Requirements

• Chip Exercise

• Kano Analysis

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SIPOC

• SIPOC
• Supplier
• Input
• Process
• Output
• Customer

• SCOR Thread Diagram
• SCOR Overview, page 19
• SCOR Level 3 Processes
• SCOR Overview, page 10

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Measuring Performance
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Measuring Performance
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Cost of Poor Quality - COPQ
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Critical To Quality - CTQ
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Analyzing Data and Processes
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Data Analysis
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Analyzing Data and Processes
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SCOR Level 3 Source
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Productivity Improvement
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Improve the Process
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Improve the Process
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Generate Creative Solutions

• Material Flow Supply Chain Strategy
• Business Blueprint Work and Information Flow
• CPFR Template SCOR Stencils or practices
  modeling best practices
• Supply Chain Council Research Agenda
• SCOR Technical Development Initiatives

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Supply Chain Strategy
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Business Blue Print
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Prioritize Improvements
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Project Portfolio
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Control the Process
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Control the Process
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Resources

• The Six Sigma Way series including a Team
  Fieldbook
• Lean Six Sigma
• SCOR Overview found on www.supply-chain.org
• The SCOR model http//events.totalsupplychain.com/
  event-archive/archive_contents.html
• keepingSCOR archives on www.supplychaintech.com
• www.pragmatek.com
• peter.bolstorff_at_pragmatek.com