23-oegretmen-the scor model - an implementation and analysis by merck serono

8/8/2019 23-Oegretmen-The SCOR Model - An Implementation and Analysis by Merck Serono

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2010 Supply Chain Council. ALL RIGHTS RESERVED. | < filename > | Slide 1 | October 29, 10

The SCOR ModelAn Implementation and Analysis by Merck Serono

Ferhat Oegretmen, Global Data Manager

Munich, 26 October 2010

2010byFerhatO

egretmen.ALLRIGHTSRESERVED.


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Ferhat OegretmenGlobal Data Manager, Merck Serono MS-TSE

Munich, 26 October 2010

The SCOR Model

An Implementation and Analysisby Merck Serono

2010 by Ferhat Oegretmen. ALL RIGHTS RESERVED.


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An Implementation and Analysis by Merck Serono | 26 October 20103

Table of Contents

1. About Merck Serono2. Management Summary3. General Situation4. Consequences

6. Overall Message7. Back-Up

5. Solutions


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Table of Contents



5. Solutions


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1. About Merck SeronoA subsidiary of Merck KGaA

Pharmaceuticals Chemicals

Merck Serono

Consumer Health Care Divisio

ns

Business sectors

Merck Millipore

Performance Materials

Merck KGaA


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Merck KGaA

Headquarter Merck KGaA.

Darmstadt, Germany.

Worlds oldest pharmaceutical andchemical company

A history that began in 1668 Around 40,000 employees in 64

countries Product line: Oncology, Fertility,

Multiple Sclerosis, Liquid Crystals,

Reagents, Pigments,

Innovative, specialized, international


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Merck Serono

Headquarter Merck Serono.

Geneva, Switzerland.

Founded on 05 January 2007, whenMerck KGaA acquired Serono

16,000 employees share the spirit ofour founders

Biotechnology leader in treatments fordiseases with serious medical needs

Therapeutic Areas: Oncology, Fertility,Multiple Sclerosis, Endocrinology,

Our active ingredient is innovation


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Table of Contents



5. Solutions


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2. Management SummaryBasic principles of procedure

General Situation

Implementation of SCOR

Consequences Solutions

Situation before SCOR

implementation

Outcomes due to

general situation

Actions due to

consequences


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Table of Contents



5. Solutions


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General Situation



Situation before SCOR

implementation

3. General SituationBasic principles of procedure


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3. General SituationManufacturing sites operate in different countries

More than within one singlelocation

High in managing global

processes

Limited product shelf-life

More temperature-controlledtransportation

Thwart product counterfeiting

More coordination More communication More collaboration

Challenges

Requirements


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3. General SituationTo meet requirements an overview is needed

Manufacturing sites use individual models related to single activities

Supply Chain Description

Reference Model

Process Language

No


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Table of Contents



5. Solutions


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4. ConsequencesBasic principles of procedure

General Situation



Outcomes due to

general situation


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4. ConsequencesOutcomes due to individual models

Thinking in

departments Improving at one point in the network without

considering consequences at other points

Isolated improving Counterproductive to overall performance


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Thinking in

departments

Organization-specific

models Value Stream Mapping (VSM) Supply Chain Mapping

by Cooper, Lamber and Pagh

Supply Chain Mappingby manufacturing sites

Tools: ARIS, Excel, Visio, ViFlow,


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Thinking in

departments


models

No access in

documentation Manufacturing sites have no supply chain

descriptions

Manufacturing sites have incompletedocumentations

Existing documentations are only printed onpaper and not available for other sites


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Thinking in

departments


models

No access in

documentation

Challenges in

comprehension Existing and available documentations have

different business process languages

Employees have troubles in understanding


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Thinking in departments


models

No access in

documentation

Challenges in

comprehension

Decision makers are not able tokeep track of all processes

But rather about the workflows ofeach subsidiary

Manufacturing sites processesare not comparable

A common repository, i.e. aknowledge database, is missing


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Table of Contents



5. Solutions


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5. SolutionsBasic principles of procedure

General Situation



Actions due to

consequences


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5. SolutionsDecision for introducing a reference model

Objectives Pilot Project IT-Tool

Get an overview of process flow between manufacturing sites Get capability for supply chain analysis Get capability for supply chain management


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Starting a pilot project between two manufacturing sites There is a continuity between these sites Autonomous management teams with own supply chain management No process documentation


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ARIS database gives a predetermined structure The core is the representation of processes in form of diagrams The SCOR database is a crucial benefit of the ARIS platform It improves modeling by reducing functions and tools Publishing created models on intranet


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5. SolutionsImplementation of SCOR combined with ARIS

ARIS Web Export Process stepsMapping

process

eswithARI

S

Upload

datainto

intranet

Provide

linkto

employees

Employ

eesrevi

ewprocess

es The supply chain description

consists of three versions:

SCOR Level 1, 2 and 3

Employees have to click an icon tosee the relevant description

At all levels employees see the holesupply chain

SCOR Level 1

SCOR Level 2

SCOR Level 3

Icons to click


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Level 1 Level 2 Level 3


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Level 1

Level 2

Level 3

Defines scope and content Five distinct management

processes are used

Number of supply chain is defined

Process categories are used Typical redundancies, such as

duplicated purchasing activities, can

be identified

Detailed process description Process elements are used Difficult for non supply chain

managers


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5. SolutionsInteractive implementation Step by step

CMG A

Example

CMG B

Proc. Prod. Distr.

Distr.Pack.Proc.

Raw

Materials

Semi-finished

Products

Finished

Products

Benefits Each process step can be clicked Overview is ensured for each employee ARIS helps to build-up the processes hierarchically


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CMG A

Example

Proc. Prod. Distr.

Raw

Materials

Source Make Deliver

Semi-finished

Products

SCOR Level 1


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CMG A

Example

Proc. Prod. Distr.

Raw

Materials

Source Make Deliver

Semi-finished

Products

SCOR Level 1

Make-To-Order SCOR Level 2


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CMG A

Example

Proc. Prod. Distr.

Raw

Materials

Source Make Deliver

Semi-finished

Products

Make-To-Order

Due to an overchargedvisualization, employees

are guided interactivelyby a wizard in Mercks

intranet

They are leaded to thatprocess informationwhich they need

It results in more visualclearness and employeeshave not to beacquainted with the

whole supply chain


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models

No access in

documentation

Challenges in

comprehension

5. SolutionsInternal survey to reveal the practical relevance

Process thinking

Company-wide model

Access in document.

Comprehension


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Main characteristic features

Thinking

Departmental Process

1 = No Change with SCOR

2 = Few Change with SCOR

3 = Partly Change with SCOR

Evaluation Scale

4 = Fully Change with SCOR

5 = Out performer

Documentation

No Access Access

Comprehension

Challenges No Challenges

Models

Specific Common


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models

No access in

documentation

Challenges in

comprehension

1 542 3

Process thinking

Company-wide model

Access in document.

Comprehension


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5. SolutionsAdded Value

Employees think more in processes Improving overall processes Helps to identify process relationships

Confirms a company-wide model Employees can be trained faster

Documents internal processes Prepares knowledge database (repository)

Advances supply chain comprehension Gives a comprehension of end-to-end processes


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5. SolutionsFurther implementations at Merck Serono

Pilot Project Is an initial and exploratory contribution tothe development of a company-wide model

within Merck KGaA

Other Sites The investigation and implementation ofSCOR is repeated between other

manufacturing sites in a similar way

Once processes are described meaningfulresults can be evaluated and compared

The strong impression can be gained thatthis will lead to even more integrated and

complex supply chain improvements in

networks


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Table of Contents



5. Solutions


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6. Overall MessageSituation before and after implementation of SCOR

Before After

One employee knows processes No joint process understanding No feeling for dependencies Perfect silo optimizers Excellent stand alone experts

All employees know processes Joint process understanding Feeling for dependencies No longer silo optimizers Excellent SCM experts


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6. Overall MessageSCOR allows to map, measure and manage processes

Improve constraints

1

Map

2

Measure

3

ManageCheck the current

performance

Create a supply chain

description


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Table of Contents



5. Solutions


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7. Back-UpPersonal Background

Name Ferhat Oegretmen

Job Title Global Data Manager

Department MS-TSEERP Supply Chain Processes & Systems


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7. Back-UpContact Data

Location F131 / 560Postcode: F131 / 511

E-Mail [email protected]

Phone

Mobile

+49 (0) 6151 72 6479

+49 (0) 151 1454 6479


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Q&A

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