Upside Supply Chain Flexibility - SCOR®

OPERATIONAL DEFINITION
Upside Supply Chain Flexibility is a discrete measurement defined as the amount of time it takes a supply
chain to respond to an unplanned 20% increase in demand without service or cost penalty. The
challenge with this measure is to make it as scientific as possible. With science in mind, then, we must go
to item master for the data! For each item there is usually a "replenishment lead time" which sums
the MAKE and DELIVER planned lead times. To this we must add the longest planned lead time of
the components in the BOM. The idea, here, is that your planned lead times is the best representation of
flexibility without cost or service penalty.

LEVEL 1, 2, AND 3 DECOMPOSITION

Upside Supply Chain Flexbility
Planned Replenishment Lead Time
Make Planned Lead Time
Deliver Planned Lead Time
Planned Component Lead Times

COMMON DATA SEGMENTATION FIELDS

Common data segmentation fields for Upside Supply Chain Flexibility include

MTO
MTS
Ship Point
Plant
Item (SKU) #
BOM Component #

DEFECT ANALYSIS
For the purposes of six sigma type analysis, an analytical unit is an individual item or SKU. A defective unit
is an item or SKU with planned lead times greater than the targeted days of inventory. The number of
defect opportunities is the total number of items or SKUs.

COMMON BENCHMARK DATA SOURCES

Supply Chain Council
The Performance Measurement Group