Chapter 3: PLM/SCM integration initiatives

Title: The Value Chain Operations Reference Model as a Framework to Integrate and Manage Cross-Enterprise Business Processes

Author(s): Herbert Heinzel

Address: Business Process Training Center Europe BTC von Rehlingenstr.58a, D-86356 Neusaess Germany

Reference: International Conference on Product Lifecycle Management 2005 pp. 147 - 154

Abstract/Summary: The first requirement in designing and building an analytical model is the necessity to have a framework that accommodates the taxonomy, common language, elements and interrelationships of that which is being analysed. It involves processes within the Enterprise and Extended Enterprise. The Supply Chain Operational Reference [1] (SCOR) model's strength is not only in its content but foundational framework. SCOR's hierarchy, taxonomy, process elements and input/output scheme represent a very powerful framework. Also, SCOR's objective in establishing a common language is critical to its development. However, it must be noted that SCOR is designed specifically for the operations and logistics sector of an Enterprise. The framework of the VCOR model is similar to SCOR in terms of hierarchy, process elements and their interrelationships. The difference is in the taxonomy whereby the VCOR is aimed more at the flow of information and value that goes to the heart of decision-making. In VCOR, a governance layer has been added and SCOR's level 2 manufacturing configurations are considered within lower level process elements. Like SCOR, the VCOR model requires consensus on the definitions of terms used within the model.

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