Using SCOR As A Supply Chain Management Framework For .
Using SCOR as a Supply Chain Management Fr amewor kfor Gover nment Agency Contr act Requir ementsBrian TuckerOffice for Enterprise Innovation and SustainabilityUniversity of Alabama in HuntsvilleHuntsville, AL 35899256-824-2957brian.tucker@uah.eduJoseph PaxtonOffice for Enterprise Innovation and SustainabilityUniversity of Alabama in HuntsvilleHuntsville, AL 35899256-824-4284joe.paxton@uah.eduAbstract – This paper will present a model that uses theSupply-Chain Operations Reference (SCOR) model as afoundation for a framework to illustrate the informationneeded throughout a product lifecycle to support a healthysupply chain management function and the subsequentcontract requirements to enable it. It will also show wherein the supply chain the information must be extracted. Theongoing case study used to exemplify the model is NASA’s(National Aeronautics and Space Administration) Ares Iprogram for human spaceflight.BIOGRAPHY . 81. I NTRODUCTIONAccording to Galluzzi [6], 70-80% of operational recurringcosts in NASA programs are influenced by the initial phaseof the product lifecycle. Furthermore, sustainment activitiesare delegated from the Program level to the Project Officesand typically outsourced to contractors.Effective supply chain management and contractrequirements are ongoing opportunities for continuousimprovement within government agencies, specificallydevelopment of systems for human spaceflight operations.Multiple reports from the Government Accountability Office(GAO) reinforce this importance. [1]-[5]Supply chain management depends on information flowfrom throughout the supply chain. However, dependency onyour own supply chain to manage the supply chain could bedisastrous. Too often, government agencies make decisionsearly in the lifecycle of a program to reduce immediate costsin exchange for longer term operational and sustainmentcosts that become out of control. One reason for operationaland sustainment costs to become out of control is lack ofsupply chain planning early in the lifecycle and lack ofProgram and Agency level supply chain managementactivities.Much of the supply chain managementresponsibility is delegated, often informally, to the primecontractors who are not ultimately accountable.The SCOR model is a framework for describing a supplychain with process building blocks and business activities.It provides a set of metrics for measuring supply chainperformance and best practices for continuously improving.This paper expands the application of the SCOR to alsoprovide the framework for defining information needed fromdifferent levels of the supply chain and at different phases ofthe lifecycle. These needs can be incorporated intocontracts to enable more effective supply chainmanagement. Depending on the phase of the lifecycle,effective supply chain management will require involvementfrom different levels of the organization and different levelsof the supply chain. 12In a report related to ineffective supply chain managementpractices within the Department of Defense [7], GAOidentified three key areas of weakness and provided thecriteria for being removed from the high-risk designation.The key weakness areas include: T ABLE OF C ONTENTS1. I NTRODUCTION .12. E NTERPRISE SUPPLY C HAIN .23. I MPORTANCE OF SUPPLY C HAIN M ANAGEMENT .24. SCOR .35. M ISSION P ERSPECTIVE OF T HE SUPPLY C HAIN .36. SUPPLY C HAIN L IFECYCLE P HASES .47. C ONTRACT I MPLICATIONS .78. SUMMARY .7R EFERENCES .712Accuracy of supply requirements forecastsDistribution of materialAsset visibilityThere is a clear need in the Department of Defense and inNASA, as well as other government agencies, to haveeffective supply chain management practices in place. Asstewards of taxpayer money, proper and efficient use offunds is imperative. This paper suggests using the SCORModel as a framework for structuring supply chainmanagement activities, as well as providing a means foridentifying contract requirements including, but not limitedto, information flow to and from the supply chain and978-1-4244-3888-4/10/ 25.00 2010 IEEEIEEEAC paper #1656, Version 2, Updated November 6, 20091
dissemination of effective supply chain managementpractices.capabilities.realized.Another benefit of an enterprise approach is the strategicoptimization of overall inventory levels and placement.Total supply chain inventory costs can be reduced, overalllead time can be reduced and cash flow and profitability ofall supply chain entities can be improved.2. E NTERPRISE SUPPLY C HAINSupply chain management can take on various meanings indifferent organizations. It has been referred to any one ofthe following or a combination thereof: 3. I MPORTANCE OF SUPPLY C HAINM ANAGEMENTprocurement of products or serviceslogistics of moving a product from one location toanotherdistribution of goods or services to customersmanaging the link with one’s suppliers andcustomersGalluzzi defines an Exploration Supply Chain as “theintegration of NASA centers, facilities, third partyenterprises, orbital entities, space locations, and spacecarriers that network/partner together to plan, execute, andenable an Exploration mission that will deliver anExploration product (crew, supplies, data, information,knowledge, and physical samples) and to provide the afterdelivery support, services, and returns that may be requestedby the customer.” [6].For complex systems that are dependent on activities andissues deep in the supply chain or late in the lifecycle of asystem, none of the above definitions will suffice by itself.In these cases, an enterprise approach is needed that cancover all levels of the supply chain and all phases of thelifecycle. Some of the functions of enterprise supply chainmanagement include: Only with an enterprise view can this beIn a vertically integrated company, controlling the supply ofparts and materials was relatively easy because it was underthe umbrella of the customer organization. For example, inthe early twentieth century, Ford Motor Company wasvertically integrated and included operations from smeltingiron ore into steel to the final assembly and delivery of avehicle. Today, components and services are designed andmanufactured all over the world. Tomorrow, humanspaceflight supply chains will be spread beyond Earth to themoon and other planets.specifying suppliers to support inter-program andinter-agency effortsoptimizing inventory levels and locationsthroughout the supply chainexecuting corrective actions to improve quality andlead time issues throughout the supply chainprocessing reported data to calculate and makevisible supply chain performance (provideinformation for decisions and actions)ensuring the right hardware and information isprovided at the right time and in the right placemonitoring the industrial base while producing,operating and retiring a systemseeing performance deep in the supply chain thatcould indicate issues affecting system availabilityand readinessSupply chains have become global, creating physical andcultural barriers, extending lead times and hindering theflow of information. To satisfy the customer (cost, quality,delivery), supply chains must operate effectively, efficientlyand integrally. For high value products and systems such asthose supporting human spaceflight, quality and delivery arecritical. Quality cannot be sacrificed or human lives may beat stake. Simultaneously, problems must be identified andaddressed immediately to prevent costly budget andschedule overruns.By managing the supply chain from an enterprise viewpoint,several benefits can be realized. By having the perspectiveof multiple (and perhaps all) levels of the supply chain andvisibility therein, supply chain nodes can be identified fromwhich information needs to originate and where it needs toflow to support supply chain management functions. Thishigh level visibility also enables inter-project, inter-programand inter-agency supply chain improvements. Suppliers thatare shared can be highlighted, points of internal competitionfor common resources can be addressed, and investment canbe made in better-performing suppliers while costs can beeliminated for under-performing ones. In supply chains ofhighly specialized products and services, it is often the casethat suppliers far upstream in the supply chain are commonamong programs and systems due to their uniqueGovernment agencies depend on the prime contractor andoften relinquish supply chain management to them.Responsibility still lies with the agency. In NASA’s case,the launch vehicle is ultimately NASA’s responsibility.While they may be the customer of the prime contractors,NASA’s customers are the US government, the taxpayersand the human race.All requirements are put in a contract, includingdeliverables, schedules, information flow, etc. It is almostimpossible to list everything that may be needed throughoutthe life of the contract. Any additional information typicallyrequires a contract modification and additional cost (not2
including the cost of changing the contract). Relationshipsbetween government agencies and contractors must allowfor flow of information that does not restrict theperformance of the supply chain and needs of the agency.outputs and associated metrics and best practices for each ofthese process elements.The value of the SCOR model is the standardizedframework it provides for modeling a supply chain that canbe used independent of the industry or organization.4. SCORThe SCOR model is a framework for describing a supplychain with process building blocks and business activities.It also provides a set of metrics for measuring supply chainperformance and best practices for continuously improving.The primary building blocks of the SCOR model are PLAN,SOURCE, MAKE, DELIVER and RETURN. They aredefined by the Supply-Chain Council as follows [8]: PLAN - business activities associated withdetermining requirements and corrective actions toachieve supply chain objectives. It is broken downinto five segments for Planning the Supply Chain,Planning Source, Planning Make, Planning Deliverand Planning Return SOURCE – business activities associated withordering, delivery, receipt and transfer of rawmaterial items, subassemblies, product and/orservices MAKE – business activities associated with addingvalue to products through mixing, separating,forming, machining, and chemical processes DELIVER – business activities associated withperforming customer-facing order management andorder fulfillment activities RETURN – business activities associated withmoving material from the customer back throughthe supply chain to address defects in product,ordering, or manufacturing, or to perform upkeepactivities5. M ISSION P ERSPECTIVE OF T HE SUPPLYC HAINMission development and operations is a higher levelperspective than the development of a specific launchvehicle or set of flight hardware. It can encompass thedevelopment of multiple launch vehicles with varyingconfigurations, experiments and other cargo to fly aboardthe vehicles, development of astronauts to carry out themission, development of requirements for the mission andextensive research and development of technologies andprocesses to discover the unknown. From that perspective,Agency and Program level supply chain interests reachbeyond traditional supply chain management practices.These supply chains can be multi-generational and consist ofhardware of the utmost value. Issues and questions thatmust be addressed include: Figure 1 illustrates how these building blocks areincorporated into a supply chain ranging from a company’ssupplier’s supplier to a customer’s customer. The activitiesassociated with Plan, Source, Make, Deliver and Returnoccur at multiple locations throughout the supply chain. Thevalue of the SCOR model is to structure these activities witha standard framework, as well as provide standard metricsfor measuring their performance and best practices forimproving them. Each item illustrated in Figure 1 (Plan,Source, Make, Deliver and Return) consists of multiplebusiness processes in the SCOR model. For example, thesequence of process elements in the SOURCE buildingblock for a stocked product are shown in Figure 2.Furthermore, the SCOR model consists of specific inputs, 3Will the program last through the plannedlifecycle?o Will parts continue to be available?o Will expertise be available if parts fail(identify reason and re-design or re-mfg,etc.)?o Will expertise be there if mission changesand performance requirements change (onmoon longer, land on asteroid vs. moon,unknowns from lessons learned duringmissions)?Can inventory throughout the supply chain beoptimized to save overall (not just at a singlelevel)?Are NASA expectations of primes relegatedthrough the supply chain? Are upstream levels ofthe supply chain exercising supply chainmanagement best practices?Is the supply chain advancing in maturity withprogression through the product?Will mission schedule and budget be sustainedthrough the operation phase of the lifecycle? Willthe industrial base continue to meet the missionrequirements?
Figure 1 – SCOR ModelFigure 2 – Level 3 process elements of the Level 1 SOURCE processprocesses, involvement by the Program Offices, ProjectOffices, prime contractors and sub-suppliers will benecessary to support these activities.6. SUPPLY C HAIN L IFECYCLE P HASESThe management processes below and Figure 3 illustratehow the SCOR model can be used as a framework forsupply chain management activities performed from amission development and operations perspective. As theperspective changes to a specific launch vehicle or flighthardware, the activities associated with PLAN, SOURCE,MAKE, DELIVER and RETURN transform to thetraditional SCOR model. Nonetheless, the SCOR modelstill provides a framework for supply chain management atthe mission development and operations level.SOURCEFrom a mission development and operations perspective, itcannot be assumed that the supply base even exists toprovide the conceptualized hardware and integration thereof.It is necessary in the early lifecycle phases, such asconceptualization, to determine if technologies andprocesses exist or can be developed to support the mission.In the case of the Constellation Program, NASAconceptualized and designed the Ares I launch vehicle and iscontracting out the production of it. Two methods ofdetermining the availability, or potential availability, oftechnologies and processes prior to submitting a request forproposal (RFP) for a contract is to maintain whatcapabilities are available in the industrial base and/or submita Request for Information (RFI). Knowing what capabilitiesexist in the industrial base can contribute to ensuring theconcept or design will be manufacturable. Regarding theRFI, one purpose is to gain feedback from potentialcontractors to help with the development of the RFP. Itwould serve no purpose to go through the cost and time todevelop an RFP only to have potential contractors not biddue to the request of something not feasible or of no interestto the contractors.PLANFrom a mission development and operations perspective,PLAN activities performed by the supply chain managementfunction in support of mission development would include: defining metrics to measure supply chainperformanceidentifying what responsibilities would lie with theAgency, Program and Project officesensuring that all Agency requirements anddirectives are satisfiedFrom a mission development and operations perspective, theresponsibility of the PLAN activities would lie at theAgency level. However, as with the other management4
There are other benefits to remaining knowledgeable of theindustrial base in addition to supporting design formanufacturability. NASA missions often require processeson the leading edge of technological capability, if notactually requiring new technologies to be developed. Thesenew technologies and processes may be further developedfor application within the Department of Defense orcommercial programs, or they may remain only in support ofNASA programs. The less demand for the processes ortechnologies, the more important it is for NASA to ensuretheir availability to support the long lifecycle of their ownprograms. Some examples of unique capabilities mayinclude friction stir welding, specialty materials and alloysand large composite structures. Friction stir welding iscontinuing to be used in many applications while NASAcontinues to develop and push the technology to newheights. While other markets are utilizing this technology,NASA continues to increase the requirements by using it forcurved surfaces and large structures. Specialty alloys arealso needed to provide specific strength and weightperformance, such as the aluminum-lithium alloy used forthe external tank of the Shuttle and segments of the Ares IUpper Stage. A final example is large composite structures.Autoclaves large enough for curing composites for fairingson the Ares V heavy launch vehicle do not even exist today.These are only a few examples highlighting the need forNASA to monitor and maintain the capabilities of theindustrial base.mission or demand is not sufficient to continue operation,the manufacturer may not be able to stay in business. Thereare ongoing efforts to address this by utilizing suppliersacross programs and even across government agencies.Finally, a more traditional obsolescence issue is technologyitself becoming obsolete due to advancement. For example,the Shuttle uses computing technology from the 1980’s.This has been obsolete many times over due to the rapidadvancement and adoption of new technologies. However,the older technology is still needed to support the Shuttleprogram and can be difficult to find sources. The system isso complex that testing and integration of new technology iscost-prohibitive. The major point to be made regardingobsolescence is that the industrial base must be monitoredand action taken when necessary. It cannot be assumed thathardware will continue to be available when needed for aprogram that can span decades.MAKEFrom a mission development and operations perspective,MAKE carries a similar meaning. It includes the productionof the flight hardware. Of particular importance from aProject, Program and Agency level is the cost and lead timeof hardware up through the supply chain. While manycompanies are interested primarily in the tier one cost anddelivery, issues that affect complex systems may arise muchdeeper in the supply chain. There are often many criticalitems and critical suppliers in NASA supply chains. Forexample, as previously mentioned in the case of specialtyalloys, a performance problem very deep in the supply chainmay result in a significant delay for the mission due tolimited resources for that material. Therefore, it is necessaryto know what companies are members of the supply chain(sometimes to the deepest level) and have visibility of theirperformance. If an issue arises, corrective action can betaken before delays impact the mission and cause extremeundue costs.In addition to knowing the capabilities of the industrial base,it is equally important to know the health of it as well. If theindustrial base is not monitored and action is not taken whennecessary throughout a program lifecycle and betweenprograms, the risk of obsolescence and part unavailabilityincreases dramatically. Obsolescence can occur due to avariety of industrial base weaknesses, including: reduction of multiple manufacturers – decreasesavailable sourcesdecrease in the financial liquidity of suppliers –constrains ability of suppliers to operate effectivelydependency of suppliers on a NASA program –fluctuation in NASA’s demand greatly impactsability for supplier to operateevolution of technology – sources for oldertechnologies diminish with decreasing demandAnother opportunity during the MAKE phase is to optimizeinventory levels throughout the supply chain. If anenterprise view is not taken in optimizing inventory,reductions in inventory can simply result in moving theinventory up and down the supply chain out of sight of theoptimizing entity. While this may reduce the cost to some, itmore than likely will just move the cost. To truly reduceinventory costs, an enterprise view must be taken soinventory is only located where necessary. Typically,inventory should be located as far upstream as possible thatstill satisfies availability and readiness needs. It may bepossible with an enterprise view to strategically locateinventory several supply chain links upstream and still meetdownstream demands. The enterprise view, along withsupply chain mapping, enables seeing all links of the supplychain and associated lead times and, thus, the best locationand minimum amount of inventory needed to meet deliveryrequirements.It is obvious that there is more obsolescence risk with a solesource supplier as opposed to multiple suppliers. However,it is still necessary to monitor the industrial base for changessuch as companies dissolving and resulting in a sole-suppliersituation. Sole-suppliers can be beneficial at times if it iscost-prohibitive to invest in technology or capability atmultiple sources. At the same time, it is necessary to knowthe financial stability of the sole-source provider to maintainthe flow of hardware. Similarly, if a supplier is fullydependent on a NASA program and delays occur in the5
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Jan 15, 2010 · The SCOR model is a framework for describing a supply chain with process building blocks and business activities. It also provides a set of metrics for measuring supply chain performance and best practices for continuously improving. The primary building blocks of the SCOR model are PLAN, SOURCE, MAKE, DELIVER and RETURN. They are
both to further model development and to obtain the full benefits of membership. The SCOR-model is still being developed the latest version of SCOR-model is numbered 7.0. SCOR is a management tool. It is a process reference model for supply-chain management, spanning from the supplier's supplier to the customer's customer. The SCOR-model has been
SUPPLY CHAIN OPERATIONS REFERENCE (SCOR) MODEL OF SUPPLY CHAIN COUNCIL SCOR modeling is referred today as the most popular methodology to analyze the Supply Chain Management (SCM) performance. The SCOR model is developed by Supply Chain Council in 1996 by Pittiglio Rabin Todd & McGrath and AMR Research.
SCOR is a novel retrieval framework that combines MRF and word2vec to model order and semantics together. SCOR gives state-of-the-art results on source code retrieval task of bug localization. In the process of developing SCOR we also generated semantic word embeddings for 0.5 million software-centric terms from 35000 Java repositories.
The SCOR model is an integrated approach in supply chain management to measure the performance of organizational standards at each level of the stage into the supply chain framework through a benchmark, gap analysis and best practice approach for sustainable development [14]. The supply chain Council (2012) assert that the SCOR-model has
The Supply-Chain Operations Reference (SCOR) model was developed by the Supply-Chain Council (SCC) to assist Þrms in increasing the effectiveness of their supply chains, and to provide a process-based approach to SCM (Stewart, 1997). The SCOR model provides a common process oriented language for communicating among
Supply chain management 1.1.2.1. Supply chain processes: the integrated supply chain point of view To describe supply chains from a process point of view, we refer to the supply chain operations reference (SCOR) model. SCOR is a cross-industry standard for supply chain management and has been developed and endorsed by the supply-chain council .
Figure 2.2: Scope of the SCOR-model 7 Figure 2.3: The hierarchy of the SCOR-model 8 Figure 2.4: Linking supply chain management to balanced scorecard 10 Figure 2.5: A supply chain balanced scorecard framework 11 Table of tables Table 2.1: Advantages and disadvantages of the SCOR-model
a result of poor understanding of human factors. Patient deaths have occurred as a result. Example: unprotected electrodes n Problems: Device use errors - improper hook ups, improper device settings n Solutions: “Ergonomic or Human factors engineering - See “Do it by Design” and AAMI Human Factors Engineering Guidelines.
