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Article history:
Received 16 July 2008
Accepted 25 September 2010
Available online 13 October 2010
The supply chain operations reference model model (SCOR) is developed and maintained by the Supply
Chain Council (SCC). The SCOR model is a reference model that can be used to map, benchmark, and
improve supply chain operations. SCOR template is a simulation based analysis tool, developed to capture
the dynamics of supply chain operations. The rst version of the SCOR template was presented in a
previous article by Persson and Araldi (2009). Since the nalisation of the rst article concerning the SCOR
template, a second version of the SCOR template has been constructed and tested in at a case company;
Alfa Laval at Ronneby, Swedena manufacturer of heat exchangers. Version 2 of the SCOR template is
more complete than the previous version. More metrics were introduced and the return processes
included. Emphasis has been on making supply chain analysis simple with the introduction of a new
building blockthe metric module. The case study at Alfa Laval has been based on data from a value
stream mapping (VSM) and aimed at comparing different scenarios in the production networks for one
specic product. The results of the comparison are one of the pieces of data that the company managers
will use when deciding where to allocate production resources in the international production network.
& 2010 Elsevier B.V. All rights reserved.
Keywords:
Simulation
SCOR
Arena
Supply chain
Supply network
1. Introduction
A supply network (supply chain) is a complex set of arcs and
nodes, interconnected by information ows, material ows, and
cash ows (Herrmann et al., 2003). Supply chain management is
the attempt to bring order into this complex system. To be able to
manage a supply network, there is a need for knowledge about the
network and the business aspects of network operations.
Quantitative tools for analysing complex systems like supply
networks such as optimisation, simulation, and decision theory,
have been used for some time to gather knowledge of system
behaviour. Many of the supply chain models found in the literature
are models used for optimisation. These models answer questions
about plant location, product mix, choice of technology, means of
distribution, inventory planning and control, choice of vendors,
conguration, and reverse logistics; see Goetschalckx et al. (2002),
Shapiro (2001), Fandel and Stammen (2004) for extensive work on
supply chain optimisation models. Optimising the performance of
each participant in a supply network is important, but for
improving the overall performance of a network you need
simulation (Herrmann et al., 2003). Simulation of complex
systems such as supply network contains a rich description of
the system, which can clarify the interpretation of results and
improve understanding or cause and effect relationships in a way
that can be hard to obtain in optimisation (Barnett and Miller,
2000).
case study. Modelling in e-SCOR is carried out with a drag and drop
functionality and allows for user modied building blocks. The eSCOR simulation model is coordinated with the use of the high level
architecture (HLA). HLA is a coordination mechanism used to run
several independent simulation models as one whole. Coordination
is carried out through a common event list for all models being
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metrics that can be used for process evaluation. Each process also
contains a list of best practises that can be used in order to improve
the metrics. Best practises are the methods and techniques used in
the best performing companies in that segment.
The SCOR model also provides level 1 metric data to be used for
benchmarking purposes (SCC, 2008). With this benchmarking
database it is possible to map a companys performance against
other companies.
2.4. SCOR methodology
The suggested methodology to implement a SCOR based working environment consists of four steps (Meyr et al., 2002). (i) Analyse
the basis of competition, (ii) congure the supply chain, (iii) align
performance levels, practises and systems, and (iv) implement
supply chain processes and systems. The second step (ii) congure
the supply chain, refers to the modelling using the standardised
processes dened by the modelling tool in the SCOR model. This
modelling is done from the top and down, increasing the level of
detail for each level of the SCOR model. Modelling is only done for
levels 1 and 2 whereas level 3 is generic and left untouched.
The SCOR model has been used as a tool for supply chain
improvements since it was rst dened in 1996. Since then, several
more companies than the original around 70 companies have
adopted the SCOR model and methodology. The SCOR model has
been highlighted in Sweden during the last couple of years and
several companies now adopt the SCOR model in their operations,
see SCC (2008) for a list of member companies.
2.5. Supply chain simulation using SCOR
To use the SCOR model in a simulation study of a supply chain
can simplify the modelling and shorten the time to complete the
study. The benets of using SCOR in supply chain simulation (SCS)
are many. This sub-section will give some insights in some of the
benets. Material, information, and cash ows must be handled in a
supply chain. In conventional SCS, the different ows need to be
separated and dealt with in the model. In SCOR the ows are already
separated in the different SCOR processes. The level of detail in the
supply chain often introduces difculties. In SCS the model need to
handle different levels of detail. Data can be gathered in different
levels of detail and all data must be merged in the model. In SCOR,
data are gathered at predened levels. Also, data are scalable
through the aggregate functionality in SCOR. The validation of
SCS models is often extensive, mostly due to the problem with
different levels of detail, and the fact that supply chain metrics are
not distinctively dened. The use of the SCOR model allows for
comparisons with real data that is dened in the same way as
simulation outputs, thus making validation a simpler task. The same
problems occur in data collection. The SCOR model and all data that
the SCOR model provide is a valuable source for simulation
modelling. The benets of using SCOR, together with the already
referred benets reported by Albores et al. (2006), shows that a
SCOR based simulation tool will be very valuable to industry.
3. SCOR template
Objective
Version 1
Version 2
Version 3
1. SCOR
compliant
2. Ease of use
3. Detailed
modelling
4. Simulation
software
Processes SR1,
DR1 included.
Metrics on level
1
o60 min
Yes
Processes S3,
M3, D3, P1, P5
included, level
1 and 2 metrics
o 20 min
Yes
ARENA
ARENA
Industry
standard
2.
3.
4.
5.
291
SCOR Hierarchy
SCOR Template
Arena Level
Not defined
S
Level 2: Configuration Level
Template Level
S1
S2
S3
S1
S2
(S3)
Not in version 2
S1.1
S1.2
S1.3
S1.4
S1.5
Schedule
Product
Deliveries
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
Fig. 1. A conceptual model over SCOR and SCOR template (exemplied by S: source process).
292
execution module exactly which Plan module will take care of the
planning in that process. This functionality makes it possible to use
different planning approaches for different products at different
parts of the supply chain.
Customer requirements can be modelled in different ways. A
factory (its P4 module) can receive three different types of customer
requirements, depending on its position, into the supply chain. The
orders for the factory closest to the nal customer of the chain can
be read from an MS Excel le (useful if historical data are available) or
be generated with stochastic values (for example: sampled
from a normal distribution ). The third way of receiving orders is
from the upstream factory in the supply chain, or rather from
the Source module that receives the product. The entities that
generate the material ow write the information of their attributes
or the value that the variables have in specic instants in an output
le. As a result it is possible to calculate SCOR metrics in the Metric
module.
4. Case study
To test the new developments in the SCOR template, a case
study was carried out at Alfa Laval in Ronneby, Sweden. Alfa Laval is
a global provider of specialised equipment, systems and services,
dedicated to heat, cool, separate and transport products such as oil,
water, chemicals, beverages, foodstuffs, starch and pharmaceuticals (Laval, 2008).
4.1. Supply chain structure
The supply chain analysis is part of a larger project reported on
in (Feldmann et al., 2007). One of the main product lines is chosen
to be part of the simulation model built with the SCOR template.
The product line was because of its interesting network properties,
being produced in factories in Europe and Asia. As input data, a
Value Stream Mapping (VSM) performed by Alfa Laval is used. Here,
data about capacities, operation times, set up times, waiting times,
etc. can be found and utilized in the simulation model. The supply
chain for the specic product consists of three manufacturing sites,
two distributors and several suppliers. See Fig. 2 for a conceptual
model over the supply chain.
The supply chain of the specic product starts with suppliers for
the main components and material that is used in manufacturing.
Steel and copper is sourced from several different suppliers to be
used in the component unit in Ronneby where a critical component
is manufactured (both to stock and to order). The critical component is sourced by the supply units in Ronneby, Italy, and China.
Connections are sourced locally for each supply unit. The US and
the aftermarket are supplied by distribution centers. The other
sales companies and end customers are supplied by all supply units
and not through the distribution centers.
With the SCOR template, modelling of the Alfa Laval supply
chain is a simple task. Processes are divided into make-to-stock
5. Conclusions
The process of developing the SCOR template has gone through
several stages. First, a test model was developed to see if SCOR
modelling was feasible in Arena. After that, the development of the
SCOR template started and version 1 was soon ready to use. Two
case companies were chosen to test the Template; Ericsson, and
Autoliv. In Persson and Araldi (in press) this development is
reported on. The latest development of the SCOR template
version 2 and the test at the case company Alfa Laval points at
Supplier
Component Unit
Supply Unit
Distributor
Customers
Steel
Factory A
Ronneby
Factory A
Ronneby
After market
After market
Copper
Factory B
Italy
US market
US market
Connections
Factory C
China
Fig. 2. Alfa Laval supply chain.
Other sales
companies
Ronneby CU
P2
S1
Ronneby SU
293
Distributor
P3
P4
P2
P3
P4
M2
D2
S2
M2
D2
S1
S1
Italy SU
P2
S1
P3
P4
M1
D1
P2
S1
Distributor
P3
P4
M2
D2
S1
S1
Supply
Supplier
Transport
Receiving
350.4 tu
Make
2978.4 tu
87.6 tu
Make
Shipping
Customer
700.8 tu
876 tu
36.5 tu
1401.6 tu
87.6 tu
Fig. 4. SCOR template and the connection to the VSM analysis (note that all times are time units, tu, with no connection to reality but with equal proportions).
294
Acknowledgement
The author would like to thank the students Lars Bryngelsson,
Andreas Korhonen, and Andreas Magnusson for their invaluable
work with nalising the SCOR template version 2.
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