Reinventing the Customer-Centric Business Process through SCOR

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Reinventing the Customer-Centric Business Process through SCOR Mr. Henry Soo Authorized SCOR-p, CSCP, CPIM instructor MBus, SCOR-p, CSCP, CPIM, CPF, CLM, CSCM, CDDP, IC3PM, CPP, TOC Jonah. BBiT

Customer-Centric Business Process design in SCOR

About [Mr. Henry Soo] He is a Certified Practitioner by TOCICO (Theory of Constraints International Certification Organization) in Supply Chain Logistics and TOC Fundamental and a Trained Project Manager (by Goldratt Consulting and Goldratt Schools). He is a Certified Lean Master (CLM ) by ISCEA US. He is a Certified Six Sigma Black Belt by International Academic for Quality Certification (IAQC) with 25 years experience of implementing enterprise software in companies throughout Greater China, will provide a range of services to highlight the power and capability of TOC, Lean, Six Sigma, ERP recovery and SCOR modeling. Now, DataDevelop focuses to provide solution for profits growth without taking real risk and significant investment. Premier Channel Partner (PCP) and recognized instructor of APICS certification program DBA researcher in supply chain design at UK Master in Business (MBus) Certified SCOR professional by Supply Chain Council, USA (SCOR-p) and Instructor Certified Supply Chain Manager (CSCM) Certified in Production and Inventory Management (CPIM) Certified Supply Chain Professional (CSCP) Certified Demand Driven Planner (CDDP) Certified Critical Chain Project Manager (IC3PM) Certified Positive Core/Appreciative Inquiry (PC/AI Coach) Certified Professional Forecasting (CPF) Certified Process Professional Master (CPP Master) Certified TOC Jonah Black Belt in Thinking (BBiT) President of Six Sigma Society of Hong Kong (2010-14), Professional member of HKLA (Hong Kong Logistics Association), member of HKMA and Hong Kong Society for Quality Member of Chartered Institute of Marketing (MCIM) Founding member of TOC Learning Network Asia Pacific Mr. Henry Soo Managing Director of DataDevelop Consulting Ltd. email: henrysoo@datadevelop.com Web site: www.datadevelop.com www.apics.hk My ultimate goal is helping our customers to succeed

OPENING STORY.

一段真實海上無線电通訊對話 這是一段真實的無線電通話, 一艘美國海軍艦艇跟加拿大紐芬蘭島的海防局, 於 1995 年 10 月的通話記錄 ( 這段記錄由美國海軍總指揮於 1995 年十一月十日公佈 ) 美國 : 請轉移你的航線, 朝北 15 度, 以避免相撞 加拿大 : 建議你, 轉移你的航線, 朝南 15 度, 以避免相撞 美國 : 這是美國海軍艦艇的艦長, 我再說一次, 請你轉移你的航線 加拿大 : 不, 我再說一次, 請你轉移你的航線 美國 : ( 堅決的聲調 ) 這是美國海軍航空母艦林肯號, 美國大西洋艦隊的第二大軍艦 我們有三艘驅逐艦, 三艘巡洋艦, 和許多艦艇護航 我要求你改變你的航線, 朝北 15 度, 就是一十五度向北, 不然會採取反抗措施, 以確保本軍艦的安全 加拿大 : 這是燈塔 你自己決定要怎麼辦!

Do you get the similar experience in your daily lives?

Why customer-centric SCOR is important in supply chain improvement? Know yourself and know your enemy, and you will never be defeated (idiom, from Sunzi s Art of War)

Standardization through SCOR model

Re-orienting the Customer-Centric Business Process through SCOR From inside-out to outside-in Customer Experience Management (CEM) SCOR model process mapping by customercentric process design Key Objectives 1. This session is engaging participants to understand, appreciate and interact with Customer Experience by outside-in Process Improvement in SCOR model. 2. It will be themed how to reorient processes by an internationally recognized SCOR Business Process Modeling aligned with customer-centric success.

1. From inside-out to outside-in Inside-out vs Outside-in

Pixar Inside-out Trailer

Your emotions are the driving force! Inside-out mind-sets Sadness Anger Joy Fear Disgust

Inside-out mind-sets in organization Sadness We are running out of CASH$! Which department s voice?

Inside-out mind-sets in organization Anger Schedules are always shifting? Which department s voice?

Inside-out mind-sets in organization Joy Our forecast is fabulous! Which department s voice?

Inside-out mind-sets in organization Fear We are running out of stock in some items, but stock level is very high! Which department s voice?

Inside-out mind-sets in organization We fail to conform the standard! Which department s voice? Disgust

Who Care? Inside-out vs outside-in Voice of Inside-out Efficiency Cost reduction Productivity Profitability Voice of Outside-in Customer expectation Customer services Customer successful outcomes Customer experience

Customer Experience Moments of Truth The customer experience is the process The process starts with a Need and isn t over until that Need is delivered Ultimately every MOT should possess all elements of the customer lifecycle Any interaction with the Customer is a MOT.

What are the key customer interactions? Contact? What are the main points of customer contact? What? What is it you do? 2 1 4 3 Success? What does success look like? Where? Where is the beginning? What is the ending?

2. Customer Experience Management (CEM) Customer Experience Management (CEM)

The Enlightened Customer Christmas Miracle: Spirit of Giving

Christmas Miracle: Spirit of Giving The Enlightened Customer If you were passenger in flight, what is your feeling? 4 different satisfaction services levels: 1. Wow 2. Great 3. Good 4. Fine

The Enlightened Customer How to design the service processes with customer-centric success?

Magician Explorer Jester Sage Caregiver Helper Lover Friends

3. SCOR model process mapping by customer-centric service design Customercentric process design in SCOR modeling

To design the key customer interactions in SCOR?

Modeling in practice Customer sends order Sales checks order Logistics sends goods Accounting sends invoice Customer pays Everything said? Understood?

Value of a Process Reference Model with customer-centric services design Business Process Re-engineering Performance Benchmarking Best Practices Analysis Organizational Design Capture the as-is business activity and design the future tobe state Quantify relative performance of similar supply chains and establish internal targets Identify practices and software solutions that result in significantly better performance Assess skills and performance needs and align staff and staffing needs to internal targets Process Reference Framework Processes Performance (metrics) Practices People (skills) Customer -centric process Satisfacti on level Wow/ Great/ Good/ Fine 8 Services Archetype Outsidein mindsets

SCOR Processes Plan Deliver Return Suppliers Supplier Source Return Plan Make Enable Supplier Internal or External Deliver Return Source Make Deliver Return Return Enable Your Organization Source Return Plan Make Enable Customer Deliver Return Source Return Customers Customer Internal or External SCOR MODEL

SCOR Metrics Attribute SCOR 11.0 Metrics Reliability Responsiveness Agility Cost Asset Management Efficiency RL.1.1 Perfect Order Fulfillment RS.1.1 Order Fulfillment Cycle Time AG.1.1 Upside Supply Chain Flexibility AG.1.2 Supply Chain Upside Adaptability AG.1.3 Downside Supply Chain Adaptability AG.1.4 Overall Value At Risk (VAR) CO.1.1 Total Cost to Serve AM.1.1 Cash-to-Cash Cycle Time Which customerfacing attribute should be designed in Wow / Great / Good / Fine level of customer satisfaction? AM.1.2 Return on Supply Chain Fixed Assets

SCOR Decomposition Current scope of SCOR Level Description Examples Comments 1 Process Types (Scope) 2 Process Categories (Configuration) Plan, Source, Make, Deliver, Return and Enable Make-to-Stock, Make-to- Order, Engineer-to-Order, Defective Products, MRO Products, Excess Products Level-1 defines scope and content of a supply chain. At level-1 the basis-of-competition performance targets for a supply chain are set. Level-2 defines the operations strategy. At level-2 the process capabilities for a supply chain are set. (Make-to-Stock, Make-to-Order) 3 Process Elements (Steps) Future scope 4 Activities (Implementation) Schedule Deliveries Receive Product Verify Product Transfer Product Authorize Payment Industry-, company-, location-, and/or technology specific steps Level-3 defines the configuration of individual processes. At level-3 the ability to execute is set. At level-3 the focus is on the right: Processes Inputs and Outputs Practices Technology capabilities Skills of staff Level-4 describes the activities performed within the supply chain. Companies implement industry-, company-, and/or location-specific processes and practices to achieve required performance. Customer-centric processes design

SCOR model simulation for cost, cycle time and resources consumption and identify bottlenecks To design and evaluate the customer s success outcomes

Paradigm shift from inside-out to outside-in 4 take-away 8 Service Archetypes - Friends - Lover - Caregiver - Jester - Magician - Explorer - Sage - Helper SCOR model Process, Performance, Practice & People Simulation for Cost, Cycle Time, Resource consumption & identify constraint

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