DCOR 1.0 - Design Chain Operations Reference - Model - DCOR 1.0 (1)

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Transcript of DCOR 1.0 - Design Chain Operations Reference - Model - DCOR 1.0 (1)

ARIS Report

DCOR Version 1.0

( Supply-Chain Council, 2006. All rights reserved. The Supply-Chain Council has made every effort to assure the accuracy and usefulness of the information and metrics contained herein and is provided on an "AS IS" basis. The Supply-Chain Council makes no warranty, express or implied, of merchantability, fitness for a particular purpose, or accuracy. The Supply-Chain Council makes no representation as to the results obtained or obtainable and disclaims all liability for direct, indirect, special or consequential damage, including lost profits, lost business or the like, whether based in contract, tort (including negligence), product liability or otherwise.Acknowledgements

The following members of the Technical Development Project Team for DCOR devoted extensive time and/or effort to the development of this Model. John Nyere, Chair, United States Department of Defense

Nicolas Giraldo, Azurian

William Whiddon, Building Technology Incorporated

Ari Luis C. Halos, College of Engineering and Agro-Industrial Technology

Christie Lin, Corporate Synergy Development Center Hong Kong

Lars Magnusson, Ericsson AB

Michael Salhlin, Ericsson AB

Eberhard Frey, Hewlett Packard

Joseph Francis, PCOR

Caspar Hunsche, PCOR

Scott Stephens, Supply-Chain Council

Melinda Spring, Supply-Chain Council

Ricardo Velez, Tampere University of Technology

Design Chain Operations

Reference-model (DCOR) 1.0

Contents

Introduction 3 PLAN

11 RESEARCH

51 DESIGN

87 INTEGRATE122 AMEND159 Glossary

Process Terms 190Inputs/Outputs 198Metrics205Best Practices219Design Chain Operations Reference-model (DCOR) 1.0

Introduction

The Supply Chain Operations Reference-model (SCOR) is the product of the Supply-Chain Council (SCC), an independent, not-for-profit, global corporation with membership open to all companies and organizations interested in applying and advancing the state-of-the-art in supply-chain management systems and practices. The SCOR-model captures the Councils consensus view of supply chain management. The newest model, the DCOR-model, captures the SCCs Technical Development Steering Committees consensus view of design chain management. Background - The Design Chain Operations Reference-model (DCOR) was developed by the Business Process Management organization of Hewlett-Packard. This model was conveyed to the Supply-Chain Council, Inc. in June, 2004. The Models structure is inspired by that of the Supply-Chain Operations Reference Model (SCOR).

While much of the underlying content of the Model was originally developed by practitioners, the DCOR-model provides a unique framework that links business process, metrics, best practices and technology features into a unified structure to support communication among design chain partners and to improve the effectiveness of the extended supply chain.

The SCC was organized in 1996 and initially included 69 practitioner companies meeting in an informal consortium. Subsequently, the companies of the Council elected to form an independent not for profit trade association. The majority of the SCCs members are practitioners and represent a broad cross-section of industries, including manufacturers, distributors, and retailers. Equally important to the Council and the advancement of the SCOR-model (and now the DCOR-model) are the technology suppliers and implementers, the academicians, and the government organizations that participate in Council activities and the development and maintenance of the Model. At the time of this release, the Council has approximately 800 members worldwide and has established international chapters in Australia/New Zealand, Brazil, Greater China, Europe, Japan, Southeast Asia, and Southern Africa with additional requests for regional chapters pending.

The Supply-Chain Council is interested in providing the widest possible dissemination of the DCOR-model. The wide-spread use of the Model results in better relationships, software systems that can better support members through the use of common measurements and terms, and the ability to rapidly recognize and adopt best practice no matter where it originates. SCC requests that all who use the DCOR-model provide attribution to the Supply-Chain Council. Additionally, members are encouraged to monitor the members section of the SCC website (www.supply-chain.org) to ensure that they are using the latest version of DCOR.

This introduction is provided to assist users of the DCOR-model to begin analytic and implementation projects. It is intended to remind experienced users of the framework and structure of the Model to assist in more complex applications and operationalization of the Model for their businesses. Version 1.0 of the DCOR-model is the first publication of this model by the SCC. Revisions of the Model will be made when it is determined by Council members that changes should be made to facilitate the use of the Model in practice.

Scope

The DCOR-model has been developed to describe the business activities associated with all phases of satisfying a customers demand for a product. The Model itself contains several sections and is organized around the five primary management processes of Plan, Research, Design, Integrate and Amend (shown in Figure 1). By describing design chains using these process building blocks, the Model can be used to describe design chains that are very simple or very complex using a common set of definitions. As a result, disparate industries can be linked to describe the depth and breadth of virtually any design chain. The Model has been able to successfully describe and provide a basis for design chain improvement for global projects as well as site-specific projects.

Figure 1 - DCOR is organized around five major management processes.

It spans product development, research and development but does not attempt to describe every business process or activity. Specifically, the Model does not address: sales and marketing (demand generation), and some elements of post-delivery customer support.

It should be noted that the scope of the Model is anticipated to change based on Council member requirements.

The Model is designed and maintained to support design chains of various complexities and across multiple industries. The Council has focused on three process levels and does not attempt to prescribe how a particular organization should conduct its business or tailor its systems / information flow. Every organization that implements design chain improvements using the DCOR-model will need to extend the Model, at least to Level 4, using organization-specific processes, systems, and practice.

The Model is silent in the areas of human resources, training, and quality assurance among others. Currently, it is the position of the Council that these horizontal activities are implicit in the Model and there are other highly qualified organizations that are chiefly concerned with how an organization should train, retain, organize, and conduct their quality programs. Just as the Council recognized the requirements for marketing and sales in commercial organizations, the Council is not minimizing the importance of these other activities.DCOR, like SCOR, Contains Three Levels of Process Detail

Figure 2 - DCOR is a hierarchical model with specific boundaries in regard to scope.

The DCOR-model is a business process reference model as illustrated in Figure 3. That is, it is a Model that links process elements, metrics, best practice and the features associated with the execution of a design chain in a unique format. The uniqueness and power of the Model and its successful implementation is chiefly derived from using these four elements together.

It is important to note that this Model describes processes not functions. In other words, the Model focuses on the activity involved not the person or organizational element that performs the activity.

Business Process ReengineeringBenchmarkingBest Practices AnalysisProcess Reference Model

Figure 3 - DCOR is a business process reference model.

DCOR-model Structure

Besides the five basic management processes (Plan, Research, Design, Integrate, and Amend) that provide the organizational structure of the DCOR-model, it is useful to distinguish between the three process types in the Model: planning, execution, and enable. A planning element is a process that aligns expected resources to meet expected design requirements. Planning processes balance aggregated demand across a consistent planning horizon. Planning processes generally occur at regular intervals and can contribute to design chain response time. Execution processes are triggered by planned or actual demand that changes the state of products. They include scheduling and sequencing, researching and design, materials and integrating product, and amend. Enable processes prepare, maintain, and manage information or relationships upon which planning and execution processes rely.

A set of standard notation is used throughout the Model. P depicts Plan elements, R depicts Research elements, D depicts Design elements, I depicts Integrate elements, and A depicts Amend elements. An E preceding any of the others (e.g., EP) indicates that the process element is an Enable element associated with the Planning or Execution element (in this case, EP would be an Enable Planning element). With the intersections of the DCOR and SCOR models in mind, to differentiate the Plan process, categories and process elements from those in the SCOR Model , we have a different naming convention in DCOR: PP for Plan Design Chain, PR for P