International Journal of Electronic Business Management, Vol. 3, No. 1, pp. 1-7 (2005) 1
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Due to neglect the importance of understanding the current supply chain operations model, the enterprises face many problems from supply chain operations. This research proposes a systematic methodology to help companies to analysis and design their supply chain operations model efficiently. The developed methodology not only based on the Supply
Chain Operations Referenced (SCOR) Model which addressed by the Supply Chain
Council (SCC) in 1996 but strengthened on the SCOR-based study in the literatures. There are three phases included in the methodology. First, SCOR-based Supply chain Typology
Analysis, this phase purposed some steps to help companies to understand the supply chain structure and supply chain operations model. Secondly, SCOR-based Supply Chain
Performance Analysis, this phase purposed some steps to observe the owned supply chain performance and figure out the root problems. The postponement application solution is discussed to solve the root problems. Thirdly, SCOR-based Supply Chain Operations
Model Design, this phase purposed some steps to redesign the owned supply chain structure and supply chain operations models. The proposed methodology systematically integrated some independent technology and concept on the academic research. Finally, the case of
TFT-LCD manufacturer has been applied by this supply chain analysis and design methodology. Based on this methodology, not only build up the current (as-is) supply chain operations model which helps the internal and external partner communication to each other, but also found out the exited problems at the supply chain operations. Then, the postponement application has been purposed to build up the future (to-be) solution and through to evaluate the designed supply chain operations model the e-SCOR simulator.
Keywords: Supply Chain Operations Analysis and Design, Supply Chain Operations
Reference Model, Typology Analysis, Performance Analysis, SCOR-Based
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Stimulated by the concept of globalization and the opportunities in Chinese market, Taiwan’s companies are aiming at enlarging the global-market share to gain competitive advantages and profit.
Many companies built up factories in China. Others built up regional distributor centers around the world to provide service to local customers. Such developments yield much more complicated supply chain structures and much more difficult integrated problems to those companies. For examples, worldwide leading companies emphasize quality control severely, new global logistic models are developing, the collaborative models among the supply chain partners are emerging, the supply chain
* Corresponding author: jeffrey@notes.ie.nthu.edu.tw
performance indexes and the implementation procedures of e-systems are still vague, and so on.
The Supply Chain Council (SCC) proposed a cross-industry Supply Chain Operations Reference
Model in 1996. Its purpose is to build up a supply chain analysis method and a communication mechanism among the supply chain partners.
Furthermore, it provides fundamental requirements for implementing supply chains. Yet no step-by-step guidance of the application of the SCOR model to a company has been introduced and no local case that can help companies understand the SCOR method has been published
This research proposes a systematic approach to analyze and to implement a SOCR-based supply chain. The result of this research not only helps a company to understand and avoid problems corresponding to the supply chain that the company

2 International Journal of Electronic Business Management, Vol. 3, No. 1 (2005) currently involving but also provides an applicable method to implement SCOR-based application. The performance of the result of this research is verified by taking an intensive case study on a TFT-LCD manufacturer in Taiwan.
There are three phases in the SOCR-based
Supply Chain analysis and design methodology, as shown in Figure1:
Phase I: SCOR-based supply chain typology analysis
The purpose is to propose a method to help companies understand the supply chain structure and operations model.
Phase II: SCOR-based supply chain performance analysis
This phase purposes steps to understand the owned supply chain performance and comprehend the root problems. The postponement application solution is discussed to solve the root problems.
Phase III: SCOR-based supply chain operations model design
This phase purposes steps to redesign the structure of the owned supply chain and the operation models of the supply chain. company, every operation department of the company, and among operation departments.
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Build Supply Chain Structure:The point in this step is mapping to the SCOR-based format. By the way of mapping result to build up the SCOR level one structure in the supply chain operations model.
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Secondary Typology Analysis:Based on the previous supply chain structure and take the five steps to finish the second stage typology analysis
(as shown in Figure 3).
Figure 2: The steps in the supply chain typology analysis
Figure 1: Proposed methodology
The supply chain typology analysis contains five steps for helping companies to understand the structure and the operation model of the supply chain of a company (see Figure 2).
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Identify The Scope of Supply Chain:The particular supply chain system and boundary is verified through the definition of the product selection and product structure.
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Preliminary Typology Analysis: The typology analysis is used to analysis the company owned supply chain operations by answering certain critical questions. This stage focuses on the analysis of the fundamental functions of an entire
Figure 3: Second stage supply chain typology analysis
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Build Supply Chain Operation Model:Base on the supply chain typology analysis to map the result to the SOCR-based figure. Build up the company owed supply chain operations model into the
SCOR level two.
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Case verify for the supply chain typology analysis:
The TFT-LCD manufacturer is the case study company. Because the company continues build the factory in the Taiwan and Mainland. The supply chain operations structure more complicated has been obstructed the supply chain analysis more and more difficult. To solve the problem in such company, the SCOR-based
Supply Chain Analysis and Design propose a method to figure out the company owned as-is model and improvement into the to-be model. By

J. T. Lin et al.: A SCOR-Based Methodology for Analyzing and Designing Supply Chain 3 the way of supply chain typology to analysis the company as-is situations.
1.
Identify the scope of supply chain
About the product selection, the TFT-LCD manufacturer base on the rule of the mass production.
The panel of the monitor and notebook consumer product is the analysis product. TFT-LCD manufacturer consider the array, cell and module production process and six key materials into the analysis scope.
2.
Preliminary typology analysis
Based on the preliminary typology analysis, the case company included five business units (entities) and figure out the feature individual. But before integrating further information, T1 and T2 factories should divide into two entities. Because the two factories can take materials from each other at the module production process.
3.
Build supply chain structure
This step takes the SCOR as a tool to model the company owned supply chain structure, based on the preliminary typology analysis data. The modeling result showed in Figure 4. proposed a Supply Chain Operations Reference card (SCORcard) to evaluate a company critical performance. The SCORcard format table is listed in Figure 7.
Figure 5: The HQ and factory supply chain operations model
Figure 6: Five steps in the SCOR-based supply chain performance analysis
Figure 4: My com SCOR-based supply chain structure
4.
Secondary typology analysis
The analysis contains five stages for understanding the company owned supply chain operations model. Information of material flow is included in the analysis stage.
5.
Build supply chain operation model
The mapping result shown in Figure 5 is the
SCOR-based supply chain operations model. The finish goods is post on the back stage production process to be the final product inventory.
The SCOR-Based Supply Chain Performance
Analysis included five steps, as shown in Figure 6.
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Building SCOR card: The critical process of the score card is to select and define the performance indexes. The procedure for properly select and define the performance indexes is critical for constructing meaningful indexes. The
SCOR-based Supply Chain Analysis and Design
Figure 7: SCOR card table
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Data collection and gap analysis: The purpose of this stage is collecting the performance data in the
SCORcard, and analyzing the gap between the current and target performance. There must be a gap rate which is deterred by the company to decide what performance is bad or not good.
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Root causes finding: After seeing the value of the performance indexes at a company, the analysis will be focused on the gaped performance. The concurrent reality tree (CRT) of the thinking process is the technology to find out the cause-effect relation between the gaped performances.
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Profile analysis for applying postponement: On this step, this research took a critical assumption.

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In general, the company will find out the problems of the high-inventory and error-forecast in the supply chain. Apply the postponement theory to rethink the reengineering of the supply chain operations model. When the company applied properly the postponement into their industry environment, the postponement degree will be the decision point in the business model. There are some directions to help a company to do decision-making: the structure of the product differences, the production process matching degree, the constraint of the full-capacity, the degree of the module, the tolerance of the customer lead time or the mass invest cost, and so on.
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Build To-Be supply chain operation model: The change of the difference delay point can be the improvement supply chain operation model. What is the change of the material and information flow in the operations model? It must be based on the company owned current supply chain operations model to improve and buildup.
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Case verification for the supply chain performance analysis: The case company not only figures out the current supply chain operations model, but also analyzes the performance indexes to find out the root causes problems and discuss the improvement solutions. The following is the case company applied steps.
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Building SCOR card
The SCOR-based hierarchical analysis has been built for mapping the SOCR performance structure.
The model can be is reference structure to collecting performance from the company.
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Data collection and gap analysis
After building the SCORcard by collaborative way with the company manager, the manager takes the 0.1 gap rate be the decision point to deter the performance bad or not.
3.
Root causes finding
Selecting the performance indexes based on the gap analysis. Through the CRT is the analysis tool to root causes of the bad performance indexes. The over all CRT analysis figure of the case company showed in Figure 8.
After discussing with the manager of the company, the operation model can further think about change the model to reduce the inaccurate forecast and high-inventory crisis. That will correspond to the nest step of applying postponement.
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Profile analysis for applying postponement
For the case company, refer to the product structure and the production time, not only the diversion of the product on the module production process, but also the production time of the module process. If the difference point is set before the module process, the inventory risk will be reduce mostly thought the customer waiting for two more days, and the solution of the manager of the case company needs further discussion.
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Build To-Be supply chain operation model
Because applying the postponement theory to the module production process, then the to-be company owned supply chain operations model can be buildup. The to-be SCOR-based supply chain operations model showed in Figure 9.
Figure 8: CRT analysis diagram
Figure 9: To-Be supply chain operations model
SCOR-based Supply Chain Operations Model
Design included five steps to evaluate the supply chain operations model solutions, as shown in
Figure10.
Figure 10: Five steps in the supply chain operations model design

J. T. Lin et al.: A SCOR-Based Methodology for Analyzing and Designing Supply Chain 5
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Problem definition: In this stage, we emphasize that the enterprise should understand what kind of problem that desired to be solved. The problem can be defined by describing three points: the simulation purpose, the simulation boundary, and the level of details.
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Simulation modeling building: This research constructed the simulation model by the tool based on SCOR. The tool—e-SCOR is developed as the structure of SCOR and con help enterprises evaluating the different schemes based on SCOR.
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Validation and verification: There are many ways to carry out validations and verifications of simulation model, such as discussing with the experts, communicating with the managers of the enterprise in the real world, and comparing the output data of simulation model with the history on and so on.
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Simulation output analysis: After simulation, there are some points should be confirmed in this stage.
(1)Decide how many numbers of time the simulation should executed to reach the accuracy of corresponding parameters. (2) Analyze the output data, and make comparisons if necessary.
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Supply chain model selection: In case of the KPI could not help the enterprise chooses the better supply chain operation model, this research brought up setting the weights of KPI by hierarchical analysis to help enterprise evaluating schemes. Hierarchical analysis is easy to carry out by collecting the questionnaire to realize the importance of KPI. On one hand, the analysis put an emphasis on the hierarchical relationship of
KPI. On the other hand, it uses the consistency testing to get the reliability.
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Case verification for the supply chain operations model design: This phase is to check the TFT-LCD manufacturer about the final product inventory is really reduced in the to-be model. Or monitor the degree of the reduction. Even the strategy also got right effect on the other performance indexes. So this research took the case company into the
SCOR-based Supply Chain Operations Model application.
1.
Problem definition
The purpose of the simulation ： Evaluate the performance indexes between the current supply chain operations model (As-Is model) and the applied postponement supply chain operations model in the company. The boundary of the simulation: according to the definition of the company. The details of the simulation: according to the details of the operations model in the company. The model included the planning, delivery material, manufacturing and delivery product in the business unit, not involving the detail process at the categories.
2.
Simulation Modeling Building
The simulation tool is the e-SCOR simulator.
There are some mapping rules for quickly modeling the SCOR-based supply chain operations model in the research. The company follow the mapping rule to build up the As-Is and To-Be supply chain operations models.
3.
Validation and verification
The validation of the simulation: this step must discuss with the manager of the company to check the model could represent the current situation of the company. Based on the really operations process in the company for the simulation modeling. The verification of the simulation ： Using the event list function in the e-SCOR simulation tool to trace and check reasonable of the processing model. Also the simulation animation function can be the skill to track the operations process for the reasonable of the simulation model.
4.
Simulation output analysis
After the last validation and the verification step, taking some replications on the As-Is and To-Be simulation models. Finally, the performance data showed the advantage and disadvantage on the As-Is and To-Be model individually. Facing the trade-off of the performance result, there is a multi-attribute stage that handles the decision-making step.
5.
Supply chain model selection
According to the hierarchical analysis methodology, the company needs to build up the hierarchical performance layer structure. Based on the structure to analysis the questionnaire, and take the result of the questionnaire back to get the weight of the key performance indexes. Then the normalization of the simulation performance indexes is taken to multiply and summary. Finally the result is shown in Figure 11.
Figure 11: The score table of the As-Is and To-Be model
In Figure 11, the To-Be model applying postponement got the higher score than the other one.
Therefore this research considered the applying postponement on the module production process is the proper solution of the supply chain operation models of the company. The phase three verifies the application of the postponement solution for resolving the problems of the supply chain analysis of phase one based on the performance analysis of the phase two.

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The objectives of the supply chain analysis and design that enables to understand operation, performance, and conception in the supply chain.
Above three phases iterations are key reason for enterprise improvement constantly. Key points of implementation are to development of models and methodology in the supply chain operation must consider efficient and convenient by communicating between internal and external of an enterprise. The procedure for understanding the development and structure of supply chain performance also provides overall thinking and quantifying indexes of the supply chain. Improvements of supply chain must have operations model that according to performance-based. Also it needs to support description of improvement advantages.
This research focuses on the design of critical points of the supply chain. A three-phase,
SCOR-based methodology for supply chain analysis and design is developed. This SCOR-based methodology supports supply chain operation model and performance structure. It can help enterprises analyze supply chain operations fast. Furthermore, the SCOR-based and multi-criteria simulation assists enterprise to design supply chain operation.
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James T. Lin is a Professor in the Department of
Industrial Engineering and Engineering Management at National Tsing-Hua University (NTHU), Taiwan

J. T. Lin et al.: A SCOR-Based Methodology for Analyzing and Designing Supply Chain 7
R.O.C. He received his Ph.D. degree in Industrial
Engineering at Lehigh University in 1986. His current research and teaching interests are in the general area of Supply Chain and Production Management. In particular, he is interested in Supply Chain
Management, Simulation Modeling of Manufacturing
Systems, Advanced Planning and Scheduling. He is a member of IIE, SCS, and CIIE.
Tzu-Li Chen is a Ph.D graduate student of Industrial
Engineering and Engineering Management at
National Tsing-Hua University (NTHU). His research interests are Simulation, Planning and Scheduling.
Tiffany Tsai received his MS degree from Industrial
Engineering and Engineering Management
Department at National Tsing-Hua University
(NTHU). His research interests are Simulation,
Supply Chain Management.
Jeffrey J. Lai is a graduate student of Industrial
Engineering and Engineering Management at
National Tsing Hua University (NTHU). His research interests are Simulation, Supply Chain Management.
(Received September 2004, revised November 2004, accepted December 2004)