Develop an End to End Process Architecture
- 1. Nama : Adis Suhur Nahar – 163011900005 Mata Kuliah : Manajemen Rantai Pasok Magister TI - Universitas Trisakti 2020 Dosen : Dr. Dadang Surjasa, S.Si, MT Program Studi Magister Teknik Industri Fakultas Teknologi Industri Universitas Trisakti UNIVERSITAS TRISAKTI Source ; The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 2. Architecture is a structured working relationship of a system consisting of hardware, software and network. Architecture is also known as the basis of organizational systems that connect components to the system environment and have design and evaluation rules. Architecture (architecture) in the discussion of enterprise-scale information systems is defined as the structure of components, reciprocal relationships, and the principles and guidelines for their design and evolution from time to time, this understanding has the meaning that architecture is basically in the form of a description of the structure of a company / institution / institutions consisting of various kinds of supporting components and relations between these components. Generally Process architecture Develop an end-to-end process architecture https://www.apqc.or g/expertise/supply- chain-management https://medium.com/ea syread/android-mvp- series-membangun- aplikasi-android- dengan-arsitektur-mvp- fbf1f77ecaec
- 3. Develop an end-to-end process architecture Components of supply chain architecture • Description of all supply chain processes (plans, sources, manufacture, deliver, and return) and how they are interconnected. • A view of the interactions between supply chain processes and other company core processes. • Description of the application needed to support the supply of chain processes, including data and performance indicators needed for the execution and control processes. • Description of how the application will be integrated, including specific data and frequency of communication. The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 4. Develop an end-to-end process architecture 1. Strategic conformity Your company's overall supply chain strategy must drive the choices you make in your supply chain architecture, so that priorities can actually be determined to be the basis of competition. 2. Process Focus (end-to-end) The supply chain process must ensure end-to-end management with an architecture that provides an end-to- end vision of the supply chain and the goals that govern the work processes of each player in the supply chain. FOUR TEST FEASIBILITY TEST SUPPLY CHAIN ARCHITECTURE 3. Simplicity of process Simple processes Supply chain architecture can streamline which minimizes complexity which adds to costs and reduces management. With the condition that this simple process must be clear and easily understood by those who use it. 4. Integrity Architecture must be very reliable, can ensure a coherent and strong relationship between processes, data and information systems.The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 5. Primary Strategy Critical SC Practices Innovation • Chain design / supply chain integration • Collaborative innovation with suppliers • Special NPI supply chain Cost • Integrated factory planning and scheduling • Standardization of raw materials and manufacturing processes • Design for manufacturing, procurement, order management Service • Customer collaborative planning • Customer segmentation • Delay Quality • Product traceability and lot-level • Lifecycle tracking of products sold Aligning supply chain practices based on competition : Feasibility of strategic suitability parameters, when: • The value of the new practice is quantified before it is integrated into the supply chain architecture. • New business practices are prioritized based on their ability to advance the supply chain strategy. • The supply chain architecture is regularly reviewed to ensure alignment with the current strategic direction. 1. Strategic conformity The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 6. 2. Process Focus (end-to-end) End-to-end supply chain architecture that identifies places of internal and external integration and can create value for the company as a whole, by improving customer service and working capital, which leads to targets based on 4 metrics are: Timely delivery (to date of commitment). Percentage of orders fulfilled on or before the date of internal commitment. Shipping measurements are based on the date the complete order was shipped. 1. Order fulfillment lead time. The average waiting time that is achieved consistently (in calendar days) from customer orders to customer order receipts. 2. Cash-to-cash cycle time. The average waiting time that is achieved consistently (in calendar days) from customer orders to customer order receipts. 3. Total supply chain management cost. Total costs for managing orders, obtaining materials, managing and storing inventory, and managing supply chain costs, planning, and information technology, represented as a percentage of revenue 4. The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 7. Collaborative planning in the company can be described below : Collaborative planning in an expanded company can be described below : 2. Process Focus (end-to-end) The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 8. End-to-end Process Focus Parameters : 4. Performance and management visibility is shared throughout the organization and with key suppliers and customers. 1. Integrated information systems and support systems inside and outside the company - reaching key suppliers and customers. 2. Supply chain resources such as capacity and inventory are optimized throughout the organization and with key suppliers and customers. 3. Standard metrics and quantitative goals are shared throughout the organization and with key suppliers and customers. 2. Process Focus (end-to-end) The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 9. Before looking at how this complexity can be simplified, it can be examined from 4 different drivers of complexity : 1 Supply chain configuration How to structure the physical assets of the network and the activities that are distributed in that network. 2 Product and service proliferation There are two main causes: the termination or retirement of certain products because they are replaced by newly introduced alternatives, then related to the availability of technology that allows organizations to "massively adjust" each product offering. 3 Process and information systems inconsistency Different locations within the same company have different processes and are not compatible. Even when the same software package is installed, it is often configured differently, according to the process of each location. 4 Over-automation The emergence of decision making applications for supply chain planning and performance management. 3. Simplicity of process The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 10. Feasibility process simplicity parameters : 3. Simplicity of process https://www.onescm.com/wp- content/uploads/eBook-OneSCM- Orchestration-Boost_.pdf 1. The rules for standardizing the supply chain process architecture are defined and enforced. 2. The complexity of products and services and related costs are strictly measured and managed. 3. Standards for components and materials are defined and obeyed. 4. Physical supply chain configurations (warehouses, ordering tables, factories, supplier locations, distribution centers) are regularly reviewed and simplified if possible. The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 11. 4. Integrity https://www.kindpng.com/imgv/hRioixh_it-outsourcing-services-supply-chain- management-png-transparent/ Too many companies use applications that are not integrated that require manual data re-entry, changes in data format, and some quality checking. The missing link between the process and information system results in a fragile supply chain that depends on specific individuals, manual handoffs, and work-around. The result is a high risk of error, longer cycle times, and additional costs, as illustrated below : The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 12. http://www.lokad.com/supply-chain-management-definition The best supply chain has an integrated information flow, Feasibility of Integrity Parameters : 4. Integrity 2. Processes are documented at each level of the supply chain architecture, with clear descriptions of the data needed to run each process. 1. Integration required between applications is defined in the supply chain process architecture, and the impact of application integration problems on business performance is measured. 3. Data quality is measured and managed, with clear ownership for data creation and maintenance. The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 13. That a set of standard definitions for each supply chain planning, implementation, and supporting activities is needed. In the mid-1990s, PRTM developed a framework, or process reference model, which included descriptions of supply chain processes and key performance indicators to help our clients benefit from the emerging "science" of supply chain management. ARCHITECTURE DEVICES supply chain as consisting of four processes: plan, source, create, and send. For setting targets and performance management, we set metrics for each of these processes and for overall supply chain performance. The Supply Chain Council (SCC) further develops and refines this standard, called the supply chain operations reference model (SCOR), which sets best practices, performance metrics and software functionality requirements for each core supply chain process, subprocesses, and SCOR Model activities. provides a standard framework and terminology to help organizations integrate a number of management tools, such as business process reengineering, benchmarking, and analysis of best practices. The SCOR tool enables organizations to develop and effectively manage supply chain architectures. Using the SCOR model's top- down design method, an organization can quickly gain an understanding of current supply chain performance and architecture. He can also compare his own architecture with the architecture of other organizations, identify improvements based on best practices, and design his supply chain architecture in the future The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 14. ARCHITECTURE DEVICES https://fanuelyk.wordpress.com/2013/03/15/bentuk-dan-model-supply-chain-management- arsitektur-teknologi-informasi-scm/ CPFR focuses on the packaging and retail sector, Collaborative Commerce Standards Institute. The CPFR standard consists of detailed process definitions, required data elements, and metrics for the customer-supplier interface. CPFR's aim is to enhance partnerships between retailers and vendor traders through shared information. The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 15. SCOR level 1 Business processes will align with your high-level business structure (business units, regions, etc.) and supply chains partner and perfect your supply chain strategic objectives. SCOR level 2 You improve your supply chain process choices and confirm how the supply chain processes align with your infrastructure (physical location and information technology). SCOR level 3 You can complete your supply chain architecture by adding operational details to your SCOR level 2 design. The Top Three Level Scor model ARCHITECTURE DEVICES The SCOR model sets and manages supply chain performance targets throughout the organization The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 16. 5 Process END-TO-END SCM Plan – Source – Make – Deliver - Return Use timely, accurate information Focus resources on business priorities Aim for simplicity Integrate all supply chain requirements Create explicit actions and accountabilities The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 17. Plan – Source – Make – Deliver - Return Aim for the lowest total cost of ownership (TCO) Set procurement strategies according to category Maintain an enterprisewide focus Measure and manage performance 5 Proses END-TO-END SCM The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 18. Plan – Source – Make – Deliver - Return Focus on business priorities Aim for speed and flexibility, not just low costs Set and monitor quality standards Synchronize all manufacturing activities 5 Proses END-TO-END SCM The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 19. Plan – Source – Make – Deliver - Return Balance service with the cost to serve Cut costs and time with straight- through processing Set up end-to-end tracking and traceability Manage data for ongoing accuracy and timeliness 5 Proses END-TO-END SCM The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 20. Plan – Source – Make – Deliver - Return Create a distinct supply chain for return Feed back return information quickly Base return policies on total cost of returns Maximize revenue opportunities 5 Proses END-TO-END SCM The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 21. Next generation process Theme Current Dominant Practice Next-Generation Dominant Practice Details of the 5 processes for end to end SCM, but the integration between process and between process and application, is missing or incomplete. The Process Architecture integrates all supply chain process activities (plans, Sources create, send and return) data, metrics, and applications. Content Architecture Process Decision support Theme Current Dominant Practice Next-Generation Dominant Practice The process architecture content focuses on execution in organizational subprocesses, with limited analytic integration (performance monitoring, reporting, resolution). The process of creating visibility from a specified set of events and actual performance versus plan, using standard metrics, to support proactive management, expanding as required to suppliers, partners and customers 1 2 The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 22. Current Dominant Practice Next-Generation Dominant Practice Manual interventions are used to resolve (e.g., delays in supplier shipments, out of stock, etc.) and each exception usually takes days or weeks to identify and resolve them. For the specified set of critical business events, automated business rules and problem solving solutions that are submitted for approval by the business owner in a real-time environment. Process automation Company Scope Current Dominant Practice Next-Generation Dominant Practice The contents of the process architecture (activities, data, metrics, and applications) can differ by country or region, based on history or organizational control. The content (activities, data, metrics and applications) is standardized to support the work of virtual teams that are geographically dispersed and to allow sharing and transfer of work between locations. Theme Theme3 4 Next generation process The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 23. Current Dominant Practice Next-Generation Dominant Practice The focus is on the organization, and the process of architectural structure, vocabulary, and content is unique to each organization. The process architecture integrates standards such as SCOR (Supply-Chain Operations Reference mode) and ensures common processes, data, and metrics with suppliers, partners and customers. Standards support the management of liabilities, critical resources (inventory, capacity, etc.), and events in the extended supply chain. Current Dominant Practice Next-Generation Dominant Practice Development and maintenance of process architectures led and carried out by IT; seen as an "IT problem." The process architecture is seen as an "asset" and is managed jointly by business leaders (the responsibility of P&L) and IT to balance business requirements and the benefits of shared processes and IT standards. Next generation process Theme Theme5 6 Cross-Company Scope SCPA Ownership (Supply Chain Process Architecture) The Five Disciplines for Top Performance, Shoshanah Cohen & Joseph Roussel, McGraw-Hill
- 24. Strategic Supply Chain Management Source ; The Five Disciplines for Top Performance Shoshanah Cohen & Joseph Roussel McGraw-Hill Thank You