CHAPTER 5 – CONNECTING SUPPLY CHAIN PROCESSES Flashcards
– any activity or series of activities that adds value to a product or service.
Supply Chain Process
– most supply chain processes fall into one of these six categories:
PLAN
SOURCE
MAKE
DELIVER
RETURN
ENABLE
– Framework that can be used to map out the processes in supply chain
– contains six top-level processes — the key activities that are involved in creating and delivering value to a customer.
SCOR Model
SIX PROCESSES:
(SCOR MODEL)
PLAN - connects with all of the others
SOURCE - where you buy materials
MAKE - where your manufacture products
DELIVER - get those products to your customer
RETURN - sits underneath all of them
ENABLE - right talent and information technology in place
– five key attributes in analyzing supply chain process
SIPOC
Suppliers
Inputs
Process
Outputs
Customer
– helps to show the dependencies between each of the processes in a supply chain.
SIPOC Analysis
– reduce the subjectivity of a process and bring everyone’s focus to the things that really matter.
Metric
represent objective data that’s easy to measure and verify
Quantitative
rely on someone’s judgment or opinion
Qualitative
Four goals can help you evaluate how your supply chain should be designed:
capacity
responsiveness
flexibility
cost
– refers to how much product or service your supply chain can produce in a given period of time
Capacity
– the capability of a system to provide products or services when customers want them.
Availability
– measure of how quickly your supply chain can provide a product or service to a customer
Responsiveness
– measurement of how well your supply chain scales up or ramps down in response to change.
Flexibility
– the amount of money it takes to operate your supply chain
Cost
