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Scor Model2
Scor Model2
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Table of Content
Table of Content
Table of Abbreviations
1 Introduction
1.1 Initial Situation and Problem Statement
1.2 Core question and Objective
1.3 Structure and Methodology
5 Conclusion
Literature- and List of sources
Attachment
Figure 5: Thread Diagram of Evonik showing material flow with process categories
Table of Abbreviations
illustration not visible in this excerpt
1 Introduction
- What are the purpose and the constituents of the SCOR model?
- What are the Strengths and weakness of the SCOR model?
- What differentiates the SCOR model from other Supply chain perfor- mance measurement
systems and Supply Chain evaluation models?
The main objective of this Thesis, is to Analyse the Supply Chain Operation
Reference(SCOR) model as an effective instrument for measuring Supply Chain Performance.
At the end a conclusion will be drawn based on the investigation carried out and a future
perspective will be mentioned.
The Three Chapter will proceed with a detailed portrait of the SCOR model. Its development,
purpose and objectives will be described. Moreover the Process types and process categories
of the SCOR model will also be illustrated. The Key Performance indicators(KPIs) and
Performance attributes of the SCOR model will be mentioned likewise. In order to further the
analysis of our Core question, a contrasting of the SCOR model with respect to its
Advantages and disad- vantages and its strengths and weaknesses will be displayed and
analyzed. Fi- nally, in Chapter 3. a benchmarking of supply chain Measurement Systems will
done.
The Fourth Chapter deals with a practical application of the SCOR model. This will be carried
out by narrating a SCOR project implemented at the Evonik Indus- tries AG(Stock
Company).The Project will further illustrate the rewards gained by the ,company after
implementing the SCOR Model in some of their business units. In the ,Final Chapter.5 a
conclusion will be drawn, based on all our analysis and the core question of, analyzing the
SCOR model as an effective instrument for measuring supply chain performance will thus, be
answered. Due to formal limitations this thesis, is mainly based on secondary statistical data.
The Reference Model is a universal or generic model with a conceptual approach used as a
blueprint to develop information systems. They have to be adapted to the requirement of
individual Cooperations e.g. SAP´s reference model. They collect characteristics identical to
companies within and across the industrial sector. Thereby they provide best practices for
conducting business. There is no particular enterprise represented by them but rather a class of
domains.5 Reference models should be generally valid and display a degree of abstraction in
order to be suitable for a variety of situations.6
The Process Reference Model is a system, which integrates known concepts of Business
Process Reengineering, benchmarking and the measurement of process efficiency into a cross
functional framework. It contains standardized descriptions of sub-processes, best practices
and standardized metrics for measuring the process efficiency.7
Taking these criticisms into consideration has led to the requirement for implementing KPIs:
Companies need the right quantification and measurement in order to achieve their aim e.g.
Process improvement .This is only possible with the use of a corresponding performance
measurement approach.13
Performance measurement systems have risen in importance because they help logistic,
supply chain managers to increase visibility of the areas and units which are not directly under
their control.14 Information obtained from performance measures assist managers to
appropriate decisions at the convenient times.15
Logistics and supply chain performance measurement have emerged to be a major business
area where companies can obtain a competitive advantage. Supply chain performance
measurement is a key strategic factor for increasing organizational objectives such as good
customer care and profitability.
Performance measures are crucial for steering the firm through the challenging and
competitive global market, thereby permitting the company to monitor its progress with
regard to its strategy by identifying potential improvement and benchmarking itself against its
competitors.
The effect of performance measurement on corporate success is portrayed in the figure below.
The BSC was introduced in the 1990s. It supports the corporate strategy with balanced
measures and consists of four areas: customer, finance, internal processes, innovation and
growth. It also incorporates human dimensions for measuring performance. Its objective is to
establish causalities between the performances of each analytical axis.
The EFQM Excellence Model was defamed in 1992. It begins with a 50 questions
questionnaire on test persons placed along the scale of excellence. It consists of areas relating
to personnel management and progress, process efficiency and continuous improvements in
production and services.18 The EFQM model con- sists of nine criteria’s divided only into two
categories: enabler and results. It’s a generic management model that displays the relevant
elements of a company.19
The BSC supports corporate strategy with balanced measures, whereas the EFQM model is a
generic model and portrays vital elements of a company.
In this figure the supply chain evaluation models BSC, SCOR and EFQM are brought into
comparison based on the weighting of certain criteria:
By observance it can be deducted, that the SCOR model is more network and most business
process oriented than the BSC and EFQM models. SCOR fulfills most of the key
requirements on performance measurement for Supply Chain networks, than the other two
models. The SCOR model is thus a most effective tool among the three, because, it considers
all essential supply chain partners and focus all processes along the entire supply chain. Thus,
Processes could be adapted and improve through best practice exchange along the entire
supply chain network.
KPIs help to create transparency in companies and by so doing they help managers in making
right decisions. Nevertheless, KPIs have to be linked to the corporate strategy in order for
them to be effective. Moreover, Performance measurement positively influences supply chain
management and thereby help to improve the corporate success. The SCOR model considers
and accommodates all SC-partner and it makes use of past and future data, thus, a more
network and business oriented evaluation model.
The purpose of SCOR purpose is to devise improved business process models for the SC that
could be implemented across a variety of industries, and could be supported by a set of agreed
metrics and best practices.23 The SCOR model en- ables complex SCM processes to be
visualized and analyzed. Moreover, it ena- bles the assessment of the own company SC
performance and locate areas with performance improvement potentials. SCOR establishes a
uniform language, which facilitates the communication intra and inter
organizational.24 Further pur- poses of the SCOR are:
At level 1,the processes to be analyzed are assigned to the corresponding standard SC process:
namely Plan, Source, Make and Deliver. Then the splitting of the sub-processes starts in level
two. E.g. the core process delivery is splitted into stockable products and order specific
product deliveries. The third perspec- tive enables a further improvement as well as an
interconnection with the input and output values of the process. At this level, the KPIs for
process measurement are assigned. Here they are not closely stated. All other improvements
are sum- marized at level four.29
*At the SCOR level one processes are analyzed and allocated to the standard of supply chain
processes.
The model defines five performance attributes, which each present a different characteristic in
the individual process categories and elements. According to Table.2 in accordance with their
significance, there are concretized with increasing detailed Performance indicators.