this presentation is the exclusive property of the supply

This presentation is the exclusive property of the Supply Chain Council. Copyright © Supply Chain Council. 2009. All rights reserved. The marks SCOR®, CCOR™, DCOR™ and SCOR Roadmap™ are the exclusive property of the Supply Chain Council.

Introducing all elements of the

design chain reference model:

Standard processes, metrics and

best practices

Provide insight into the next

release of the DCOR model

DCOR Framework Overview and Update

Copyright © Supply Chain Council, 2009. All rights reserved 22

DCOR Framework Overview

• Understand the History and Context of DCOR

• Learn the Components of the DCOR Framework

• Process Nomenclature

• Process Metrics

• Process Best Practices

• Understand how to model a design-chain with DCOR

• Understand how to characterize a design-chain with DCOR metrics

• Understand the differences between the first release of DCOR and the next release

• Show you the next release with a demo

• Seek volunteers to review the forthcoming release


DCOR Framework Agenda

• Introduction• Introducing presenter

• History of DCOR

• Positioning the Design Chain process domain

• DCOR Processes, Modeling and Metrics• Execution Processes (Research, Design and Integrate)

• Planning and Control Processes (Plan and Enable)

• Reverse Flow Processes (Amend)

• Modeling with DCOR

• Strategic Metrics (KPIs)

Copyright © Supply Chain Council, 2009. All rights reserved

Supply-Chain Council

• The SCC is an independent, not-for-profit, trade association

• Membership open to all companies and organizations

• Focus is on research, application and advancement and advancing state-of-the-art supply chain management systems and practices

• Developer and endorser of the Supply Chain Operations Reference (SCOR®) as a cross-industry standard for supply chain management

• Offers Training, Certification, Benchmarking, Research, Team Development, Coaching, and Cross-standard Integration focused on the SCOR® framework

• Founded in 1996, Approaching 1000 Association Members

• Chapters in North America, Europe, Japan, South Africa, Latin America, Australia/New Zealand, South East Asia and Greater China, with developing Chapters India and Middle East

4

Driving value through the use of SCOR®Driving value through the use of SCOR®

4


DCOR History

• 2002 : DCOR was developed by a small team at HP to resolve product design issues impacting supply chain operational execution.

• 2003 : HP validates and refines DCOR framework on internal projects.

• 2004 : Hewlett-Packard conveys DCOR to Supply-Chain Council in order to enrich and expand the model. (HP's model does not include transferable best practices).

• 2005 : SCC DCOR project team established.• 2006 : SCC releases DCOR release 1.0.

This includes best practices, revampedmetrics and a 3rd Amend process.

• 2008 : SCC started revision of DCOR release 2.0.

A discussion of enhancements to the model will be at the end of this presentation.

5


Cu

stom

er pro

cessesSu

pp

lier

pro

cess

es

Product/Portfolio Management

Supply Chain SCOR ®

Product Design DCOR™

Sales & Support CCOR™

Cu

stom

er pro

cessesSu

pp

lier

pro

cess

es

Product/Portfolio Management

Supply Chain SCOR ®

Product Design DCOR™

Sales & Support CCOR™

Design Chain


Design Chain Processes

Process, arrow indicates design materials flow direction

Process, no design materials flow Information flow

Cu

sto

mer p

rocessesS

up

plier

pro

cesses

Supply Chain

“C

usto

mer”

pro

cesses“

Su

pp

lier”

pro

cesses


Integrate

DesignResearc

h

Amend

Plan

7


End-to-End

storage

human interface

mp3 technology

mp3 player

web technology

hard drive co.

flash drive co.

hard and flash co.

internal labs.

online music store

integratedesignresearch integratedesignresearch integratedesignresearch


DCOR Hierarchy

Level 1 Level 2 Level 3 Level 4 Level 5

Scope Configuration Activity Workflow Transactions

Differentiates Business

Differentiates Complexity

Names Tasks Sequences Steps

Links Transactions

Defines Scope Differentiates Capabilities

Links, Metrics, Tasks and Practices

Job Details Details of Automation

Framework Language

Framework Language

Framework Language

Industry or Company Specific Language

Technology Specific Language

R1Research

Product Refresh

Design ChainResearch

R1.2Source Materials

Standard DCOR definitions Company definitions

EDIXML


R1.1 Schedule Research Activities: Process Element

Description/Definition: Scheduling and managing the execution of the individual deliveries of materials and technology. The requirements are determined based on the detailed Research plan. This includes the identification and validation of potential suppliers of materials or technology.

Reading the DCOR Manual

inputs

metrics category

best practicesoutputs outputs

process

source of input

destination of output

10


Execution Processes

Cu

sto

mer p

rocessesS

up

plier

pro

cesses

Supply Chain

“C

usto

mer”

pro

cesses“

Su

pp

lier”

pro

cesses


Integrate

DesignResearc

h

Amend

Plan


Capability Models

Level: Different capabilities

Product Refresh (R1, D1, I1)• Plan driven• Minor changes to the product• Short turn-around times

New Product (R2, D2, I2)• Market driven• Significant change in product (line)• Longer turn-around times

New Technology (R3, D3, I3)• Market and technology driven• Significant change to product and

production processes• Strategic change, long lead-times


Research (Level 1)

• Objective:• Finding, testing and approving sources of materials,

knowledge and technology for products or services. This includes collecting and archiving specifications of parts, obtaining (new) manufacturing, delivery and/or sales techniques, and identification and verification of (sub-) contractors.

• Keywords:• Technology/knowledge/product trends

• Supplier identification

• Supplier and component verification

• Documentation of form/fit/function


Research (Level 2)

• Research Product Refresh (R1)• The ongoing research (and supplier relationships) for existing

products, components and services. This includes updating internal documentation.

• Research New Product (R2)• The research of a new product, component, or service. A new

product is a product similar to existing products and is generally based on the same technology.

• Research New Technology (R3)• Research new technology. This includes both emerging

technology as well as a established technology that may be new to your company. Technology includes techniques for manufacturing or services delivery.


Research (Level 3)

Product Refresh (R1) New Product (R2) New Technology (R3)

R1.1 Schedule Research Activities

R2.1 Receive and Validate Request

R3.1 Receive and Validate Request

R3.2 Identify Sources for Technology



R1.2 Source Materials R2.3 Source Materials R3.4 Source Materials/ Technology

R3.5 Establish Verification Process

R1.3 Verify Materials R2.4 Verify Materials R3.6 Verify Materials/ Technology

R1.4 Transfer Findings/ Materials



R1.5 Authorize Supplier Payment




Design (Level 1)

• Objectives:• Decomposition of the (new) product requirements and

design of the product or service. This includes developing and testing prototypes.

• Keywords:• Prototypes ('laboratory' environment)

• Technical drawings/Specifications

• Form, fit and function

• Product/service costing

• Manufacturing process design

• Supply chain process design* (DfSC)

• Service and support process designDfSC = Design for Supply Chain and other Design for’s: Manufacture, Repair, Reliability, etc


Design (Level 2)

• Design Product Refresh (D1)• Plan-driven scheduled update of an existing product or service.

The existing product specifications are refreshed, no significant redesign activities.

• Design New Product (D2)• The grounds-up or significant redesign of a product or service.

The product or service is build on an existing technology

• Design New Technology (D3)• Design new technology. This includes technology that is new to

your company. Technology includes techniques for manufacturing or services delivery.


Design (Level 3)

Product Refresh (D1)

New Product (D2) New Technology (D3)

D2.1 Receive Validate and Decompose

D3.1 Receive Validate and Decompose

D1.1 Schedule Design Activities



D3.3 Acquire Knowledge

D1.2 Develop Prototype/ Model

D2.3 Develop Prototype

D3.4 Develop Prototype

D1.3 Build and Test Prototype



D1.4 Package Design D2.5 Package Design D3.6 Package Design

D1.5 Release Design to Integrate




Integrate (Level 1)

• Objective:• Preparing the company for new or changed product. This

includes distributing the information, such as contracts, work-instructions, business rules and goals, throughout the company: supply-chain, sales, service and support.

• Keywords:• Pilot builds ('production' environment),

• Readiness (company operations),

• Product transition,

• Product roll-out and migration plans


Integrate (Level 2)

• Integrate Product Refresh (I1)• Replace an existing product. Examples: minor revision of a car

(new model year), upgrade of standard specs of consumer products such as appliances, electronics and personal computers

• Integrate New Product (I2)• The roll-out of a new product. Significant change in workflow,

instructions, bills-of-materials/recipes. Normally not a significant change in production and/or test equipment.

• Integrate New Technology (I3)• Launching new products which contain or require new

technology. A significant change in production and testing equipment, training and change in procedures.


Integrate (Level 3)

Product Refresh (I1) New Product (I2) New Technology (I3)

I1.1 Receive & Validate Request



I1.2 Decompose Request



I2.3 Distribute Requirements

I3.3 Distribute Requirements

I1.3 Obtain & Validate Design

I2.4 Receive & Validate Design

I3.4 Receive & Validate Design

I3.5 Establish Execution Processes

I1.4 Pilot Design I2.5 Pilot Design I3.6 Pilot Design

I1.5 Package Product I2.6 Package Product I3.7 Package Product

I1.6 Release Product I2.7 Release Product I3.8 Release Product


Planning Processes

Cu

sto

mer p

rocessesS

up

plier

pro

cesses

Supply Chain

“C

usto

mer”

pro

cesses“

Su

pp

lier”

pro

cesses


Integrate

DesignResearc

h

Amend

Plan


Plan (Process ID: P)

23

• Objectives of this process:• The process of determining requirements and corrective actions

to achieve design chain objectives

• Key Processes Comprehended:• Design chain planning/forecasting

• Research requirement planning

• Facilities capacity planning (Laboratories, Pilots in Production)

• Manage planning parameters

• Hint: Budgeting or Roadmap planning?

Probably Plan in DCOR


Plan Configurations (1/3)

• Plan Design Chain (Process ID: PP)• Planning overall design chain targets. Plan Design Chain

drives and coordinates Research, Design, Integrate and

Amend plans

• Compare to “R&D Budget” in certain industries

PlanIntegrate

PlanDesign

PlanResearch

PlanDesign Chain

IntegrateDesignResearch

Design-Chaincoordination

Process resourcesplanning

Activity schedulingand execution



• Plan Research (Process ID: PR)• The planning and coordination of the Research execution

activities. This includes assigning and prioritizing research and laboratory staff to specific projects and positioning capacity for Research activities. Plan Research may trigger research activities.

• Plan Design (Process ID: PD)• The planning and coordination of the Design execution

activities. This includes assigning and prioritizing prototyping and laboratory staff to specific projects and positioning capacity for Design activities.

25



• Plan Integrate (Process ID: PI)• The planning and coordination of the Integration execution

activities. This includes scheduling and prioritizing pilot builds and training and positioning capacity for Integrate activities - planning for pilot builds on ‘production’ lines.

• Plan Amend (Process ID: PA)• The planning and coordination of the Amend activities. This

includes prioritization of resources to support resolution of design issues, recalls and other product or process quality related issues.

26


Plan Process Elements (1/2)

27

Plan Design Chain (PP) Plan Research (PR) Plan Design (PD)

PP.1 Gather Design Chain Requirements

PR.1 Gather Research Requirements

P3.1 Gather Design Requirements

PP.2 Gather Design Chain Resources

PR.2 Gather Research Resources

P3.2 Gather Design Resources

PP.3 Balance Design Chain Resources with Requirements

PR.3 Balance Research Resources with Requirements

P3.3 Balance Design Resources with Requirements

PP.4 Establish & Communicate Design Chain Plans

PR.4 Establish & Communicate Research Plans

P3.4 Establish & Communicate Design Plans


Plan Process Elements (2/2)

28

Plan Integrate (PI) Plan Amend (PA)

PI.1 Gather Integration Requirements

PA.1 Gather Amend Requirements

PI.2 Gather Integration Resources

PA.2 Gather Amend Resources

PI.3 Balance Integration Resources with Requirements

PA.3 Balance Amend Resources with Requirements

PI.4 Establish & Communicate Integration Plans

PA.4 Establish & Communicate Amend Plans


Enable Processes

Cu

sto

mer p

rocessesS

up

plier

pro

cesses

Supply Chain

“C

usto

mer”

pro

cesses“

Su

pp

lier”

pro

cesses


Integrate

DesignResearc

h

Amend

Plan


Enable Processes

• Objective: The Enable processes are five groups of processes under Plan, Research, Design, Integrate and Amend with 3 distinct types of objectives:

1.Manage process performance

2.Manage process control data

3.Manage process relationships

• Key processes comprehended: • Managing business rules and monitoring adherence

• Measuring design chain performance and determine corrective

action

• Managing supplier and service provider relationships

• Managing the design chain network and facilities

• Hint: Documentation management? Probably Enable30


Enable Categories

• Enable Plan (Process ID: EP)• Performance, data and relationship management processes

for all types of planning processes: Plan Design Chain, Plan research, Plan Design, Plan Integrate and Plan Amend. Examples: maintain planning cycles and processes, monitor planning accuracy.

• Enable Research (Process ID: ER)• Performance, data and relationship management processes

for all research partner and supplier related processes. Examples: Monitor supplier performance, maintain what knowledge is sourced where.

• Enable Design (Process ID: ED)• Enable management processes for prototyping and design

activities. Examples: laboratory maintenance, monitoring laboratory capacity utilization/shortage. 31


Enable Categories

• Enable Integrate (Process ID: EI)• Performance, data and relationship management processes

for all integration activities and pilot build related processes. Examples: Monitor pilot build performance, monitor health and safety compliance for pilotbuilds.

• Enable Amend (Process ID: ER)• Enable management processes for all types of reverse

processes: Product fall-out, product deficiencies andspecification changes. Examples: Maintain Amendapproval rules, Maintain issue tracking software, maintain a network of production quality engineers.

32


All Enable processes

Manage Business Rules EP.1 ER.1 ED.1 EI.1 EA.1

Manage Process Performance EP.2 ER.2 ED.2 EI.2 EA.2

Manage Process Information EP.3 ER.3 ED.3 EI.3 EA.3

Manage Product Life Cycle EP.4 ER.4 ED.4 EI.4 EA.4

Manage Design-Chain Capital Assets EP.5 ER.5 ED.5 EI.5 EA.5

Manage Knowledge Transfer EP.6 ER.6 ED.6 EI.6 EA.6

Manage Process Network EP.7 ER.7 ED.7 EI.7 EA.7

Manage Process Regulatory

ComplianceEP.8 ER.8 ED.8 EI.8 EA.8

Manage Financial Plan AlignmentManage Intellectual Property

EP.9 ED.9

Pla

n

Rese

arc

h

Desi

gn

Inte

gra

te

Am

end


Reverse Processes

Cu

sto

mer p

rocessesS

up

plier

pro

cesses

Supply Chain

“C

usto

mer”

pro

cesses“

Su

pp

lier”

pro

cesses


Integrate

DesignResearc

h

Amend

Plan


Reverse Flow: Amend

• Objective of this process:• Resolving design issues and supporting design adaptations (for

product and processes designed and integrated).

• Key Processes Comprehended• Identification of the need to amend a product

or process

• Checking validity of request/need

• Decide which team/organization needs to re-research, redesign

and/or re-integrate

• Publish notifications and/or corrective actions to initiators/field

• Hint: Design issue? Probably Amend in DCOR


Amend Configurations

• Amend Product Fall Out (Process ID: A1)• The product cannot be manufactured or fulfilled. Examples:

• Vendor disappeared (earthquake, bankruptcy)

• Component availability (single vs. dual sourcing)

• Dimensions not supported (too heavy, too tall)

• Amend Deficient Product (Process ID: A2)• Product does not perform according to specifications.

Examples:• Product 'quality' issues• Repair volume increased observed• Product recalls

• Amend Product Specifications (Process ID: A3)• Product specification changes required to support orders

• Primarily Engineer-to-Order orders (e.g. planes, trucks)36


Amend Process Elements

37

Product Fall Out (A1) Deficient Product (A2) Product Specs (A3)

A1.1 Receive & Validate Issue

A2.1 Obtain Deficiency Information

A2.1 Obtain Specification Information

A2.2 Validate Issue A2.2 Validate Issue

A1.2 Decompose Issue A2.3 Decompose Issue A2.3 Decompose Issue

A1.3 Distribute Issue A2.4 Distribute Issue A2.4 Distribute Issue

A1.4 Publish Advisory (ECN)

A2.5 Publish Advisory (ECN)

A2.5 Publish Advisory (SCO)


DCOR Metrics

• Definitions:• Performance Attribute: a characteristic to describe a

strategy. Performance attributes serve as classification for KPIs and metrics

• Key Performance Indicator (KPI): a metric that is

representative to measure the overall performance or state-

of-affairs

• Metric: a standard for measurement

• Measurement: an observation that reduces the

• amount of uncertainty about the value of a quantity

• DCOR metrics: Diagnostic metrics• Linked to business objectives

• Highlight the gap in performance

• Change over time is more valuable than a single sample38


Performance Attributes

Attribute Strategy

Reliability Consistently getting the right product AND process design, meeting quality requirements and on-time completion of integration

Responsiveness The consistent speed of designing and integrating new products/services

Agility The ability to respond to unplanned events(incl. external influences and quality issues)

Cost The cost associated with managing and operating the design chain

Assets The effectiveness in managing the design chain’s assets in support of design and integration of new products

Question: What are the most important attributes for your design chain?


DCOR KPIs; Strategic Metrics

Attribute Strategic Metric

Reliability Perfect Product Design

Responsiveness Design Chain Cycle Time

Agility Product Design Chain Change Cycle Time

Cost Total Design Chain Cost

Assets Design Chain Fixed Assets Value


Metric: Perfect Product Design Definition: The ability of the design chain to deliver product

designs which meet the following standards: on-time,

right product, complete documentation, supply-chain

ready, product testing and certification complete

Calculation:

[Total perfect designs]/[Total designs] x 100%

Perfect design = on-time request * certifications

complete * documentation complete * manufacturing

readiness and risk assessment complete * more..L2 Metrics:

(sample) • % On-time to commit• # of design errors• Documentation complete• Perfect Integration

Notes: Perfect design is the product of lower level metrics

For each design the value is either 0 or 100%

Strategic Reliability Metric


Strategic Responsiveness Metric

Metric: Design Chain Cycle Time Definition: The average speed at which a design chain generates

product designs.

Calculation

:

[Sum of actual cycle times for all completed designs]/

[Total number of completed designs]

Actual cycle time = time between receipt of design

requirements and release of the product design to

operationsL2 Metrics:

(sample) • Research cycle time• Design cycle time• Integrate cycle time

Notes: Consider the cycle time targets for

different products and different

technology life cycle phases


Strategic Agility Metric

Metric: Product Design Change Cycle Time Definition: Time to change a product design after it has been

released to operations.

Calculation:

[Sum of Amend cycle times]/[Total number of events]Amend cycle time = time between receipt of ECO requirements and release of the revised design to operations

L2 Metrics:(sample)

• Pilot build time• Amend cycle time• Replan frequency

Notes: Typical scenarios:• Supplier bankruptcy• Product recalls

The product has prior been released to operations

RECALL


Strategic Cost Metric

Metric: Total Design Chain Cost Definition: The costs associated with operating the design chain.

Calculation

:

Sum of the cost to plan, research, design, integrate

and amend. These are all costs associated with

managing the design chain. (People, facilities,

materials, etc.) L2

Metrics:(sample)

• Plan Cost• Research cost• Design cost• Integrate cost• Amend cost

Notes: Compare: R&D Cost on the 10-K for public companies


Strategic Asset Metric

Metric: Design Chain Fixed Assets Value Definition: The total value of all design chain assets

Calculation

:

Sum of Plan, Research, Design, Integrate and Amend

fixed asset values

L2 Metrics:

(sample)

• Plan Fixed Assets Value• Research Fixed Assets Value• Design Fixed Assets Value• Research Fixed Assets Value• Integrate Fixed Assets Value• Amend Fixed Assets Value

Notes: Check Ex.5 Manage Fixed Asset processes


Recap: DCOR Background

• Originally developed by Hewlett-Packard

• Adopted by Supply-Chain Council

• First SCC release refined or added metrics, best practices and A3 Amend product specifications process

• DCOR is founded on the SCOR framework architecture:

• Input, process, output, planning and control

• 3 pre-defined levels

• Integrated metrics, processes and best

practices


Recap: Process Framework

• Process Framework components and benefits:

• Processes defined

• Metrics defined

• Best practices identified

• And relationships between these pre-defined

• What it is not:

• A pre-defined map of your company

• A must-have list of metrics

• A must-have list of practices


Recap: Key DCOR Processes

• Planning and control processes:• Plan Design Chain; Drive overall plan and budget• Plan Research, Plan Design, Plan Integrate, Plan

Amend• Enable; Align resources and monitor performance

• Execution processes:• Research; Collecting knowledge and parts• Design; Technical engineering and documentation• Integrate; Prepare and release to operations

• Reverse processes:• Amend; Correct research, design or integration flaws


Recap: Process Configuration

• Categories:• Product Refresh; Existing products, small change• New product; Existing technology, change to product• New Technology; New processes, significant change

• Behaviors:• Life Cycle status of product determines which

category• Different categories are measured differently• New technology products is partially new product and

partially product refresh• New product is partially product refresh


Recap: Key DCOR Metrics

• Metric Types

• Reliability; Perfect Product Design

• Responsiveness; Design Chain Cycle Time

• Flexibility; Product Design Change Cycle Time

• Cost; Total Design Chain Cost

• Assets; Total Design Chain Fixed asset Value

• Metrics and levels;

• Set the scope using level 1 (strategic) metrics

• Drill down to the root cause

• Different process configurations make different measurements


Introduction to DCOR 2.0

• Highlight the differences between the first release of DCOR and the next release

• Show you the next release with a demo

• Seek volunteers to review the forthcoming release

51


DCOR 2.O Demo

http://scc-aris.eiisolutions.net:8080/businesspublisher/

Userid: Guest Password: Houston

So what is new and different? 1. Revised to conform to look and feel of SCOR 92. Five new process elements – Risk Management3. New Metric Trees from L1 to L3 4. Metrics

DCOR 1.0 In DCOR 2Cost 117 193Responsiveness 69 160Agility 10 123Asset Management 11 37Reliability 5 88

5. Best Practices: 270 3116. Inputs/Outputs 115 223

52

http://scc-aris.eiisolutions.net:8080/businesspublisher/


DCOR 2.O Call for Volunteers

Volunteers are needed:

Process Team – Review and revise the Processes, inputs and outputs

Metrics Team – ensure that metrics are correct for eachprocess, process category, process element and that themetric trees are

Best Practices Team –

Bi-Weekly conference calls with ECD of April 1. Use/Access to business process modeling tools.

53

This presentation is the exclusive property of the Supply Chain Council. Copyright © Supply Chain Council. 2009. All rights reserved. The marks SCOR®, CCOR™, DCOR™ and SCOR Roadmap™ are the exclusive property of the Supply Chain Council.

www.supply-chain.orgwww.scorlabs.org

54

For follow-up questions about the DCOR™ Model or the Supply Chain Council and its Products or Services:

[email protected]

For follow-up questions specific to the content and discussions of this Workshop:

[email protected] 693 1685

http://www.supply-chain.org/

http://www.scorlabs.org/

mailto:[email protected]

mailto:[email protected]

this presentation is the exclusive property of the supply

Documents

design chain processes

dcor metrics

design research

release of dcor

dcor history

supplychain council

standard processes

context of dcor