AUGMENTED SCORE: THE ENGINEERING PROCESSES

Design and production engineering go hand in hand with supply chain improvements
efforts. Ineffective product design or design for manufacture and supply
inhibit profitability just as much as poor supply chain design and execution. In
fact, the two sets of processes are complementary, and we see the same five
levels of maturity � firms at level 1 in their supply chain thinking tend to be
level 1 in their design and production engineering thinking.
The maturity matrices for the design and production engineering processes
are shown in Tables 1.3 and 1.4. The matching technology maturity matrix is
provided in Table 1.5.
At level 1, the Manage product portfolio process is often the preserve of
just the engineering department. As maturity increases to level 2, other departments
become actively involved in the process � sharing ideas and decisions
in a way that enhances the whole enterprise. Suppliers and partners get in on
the act at level 3. By level 4, there is evidence of shared thinking about product
development up and down the extended value chain.
A level 1 company executes the Design product process in silos, just as it
runs its internal supply chain. Products are invented by marketing, designed by
engineering, and made by manufacturing. By level 2, there is integration across
the whole internal process � an organized set of interactions to ensure that a
product is designed in a way that maximizes the company�s total profitability.
In level 3, the suppliers of key components and assemblies are also becoming
involved in the design process, which extends, in levels 4 and 5, to ever-greater
collaboration, supported by Web-based tools for product data management and
computer-aided design.
The Configure product process can create great problems at level 1, as it
is, by its nature, an integrating process. With the design process fragmented,
configuration management is difficult. The problem is solved within the company
at level 2, using product data management applications to manage the
product structure, record new versions/revisions, and plan effectivity. As suppliers
become involved, at level 3, the process often causes the number of
suppliers to be reduced, as both sides invest in the growing relationships. By
level 4 and 5, the collaboration reaches a stage at which configuration is managed
across the extended chain and can be coordinated from anywhere.
At level 1, tooling and manufacturing processes are established after the
product design is complete. By level 2, the Design (manufacturing) process and
tooling process works in tandem with Design product. A level 3 company has
integrated the processing to the stage where the manufacturing process can
support more rapid changes � configure or build to order, incorporating customer
order requirements directly into the manufacturing and assembly processes.
By level 5, the network has a full mass-customization capability, with
postponement of final work right into the logistics chain.
The final two processes � Change product design and Maintain (manufacturing)
process � both follow similar paths. The level 1 company lives within
its functions. The level 5 company plays in networks, collaborating with its
partners to maximize the value they can jointly create.
These grids should all be customized to meet the needs of the individual firm
and its business network allies. They should accompany any analysis and
development plans as the firm moves to its highest level of appropriate maturity
in the SCOR� and supply chain model. They will guide our own consideration
of how a company and its trusted allies move toward supply chain management,
and use ASCM in conjunction with business process management tools, to be
described to attain a significant advantage over less capable
networks.