barcode using vb.net F I G U R E A 6 in Software

Creating DataMatrix in Software F I G U R E A 6

F I G U R E A 6
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BICCs higher forecast accuracy.
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70% BICC
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Unit Median
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Dollar WICC
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Copyright 2004 The Performance Measurement Group, LLC
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APPENDIX A Source and Methodology for Benchmarking Data
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F I G U R E A 7
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120 100 80 60 40 20 0 BICC Median WICC
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Copyright 2004 The Performance Measurement Group, LLC
F I G U R E A 8
BICCs performance on upside production flexibility.
80 70 60 50 Days 40 30 20 10 0 BICC WICC Median Note: Upside production flexibility was 1 of 4 metrics used to determine the BICC population
Copyright 2004 The Performance Measurement Group, LLC
Days of Supply
Strategic Supply Chain Management
F I G U R E A 9
BICCs cash-to-cash cycle time.
140 120 100 80 Days 60 40 20 0 BICC Median WICC Note: Cash-to-Cash cycle time was 1 of 4 metrics used to determine the BICC population
Copyright 2004 The Performance Measurement Group, LLC
planning costs is only slightly lower for BICCs than for other companies, spending on order management, materials acquisition, and inventory management is significantly lower. Overall supply chain management costs are 9 to 11 percent for most companies, whereas for the BICCs the range is 8 to 10 percent (see Figure A-10). These companies demonstrate better asset turnover, with BICCs at better than 4 net asset turns compared with 3 for the median companies and less than 2.5 for the WICCs. While there could be some industryspecific drivers or more systematic reasons for this result (e.g., inventory levels are a component of assets), it is notable that BICCs with good delivery performance and upside production flexibility also generated a higher level of sales on net assets (see Figure A-11).
APPENDIX A Source and Methodology for Benchmarking Data
F I G U R E A 10
BICCs supply chain management cost.
140% 120% 100% 80% 60% 40% 20%
0% BICC
Percentage of Industry Average
Median
WICC
Copyright 2004 The Performance Measurement Group, LLC
F I G U R E A 11
BICCs net asset turns.
4.5 4.0 3.5 3.0 2.5 Turns 2.0 1.5 1.0 0.5 0.0 BICC Median WICC
Copyright 2004 The Performance Measurement Group, LLC
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A P P E N D I X
The Supply Chain Maturity Model
sing knowledge gained from more than a decade of supply chain benchmarking experience and field knowledge of current and emerging practices across both process and discrete industries, The Performance Measurement Group (PMG) and PRTM jointly conducted the supply chain practice and information technology (IT) assessment that formed the basis for development of the Supply Chain Maturity Model in 2000. The model is used to assess the stage of capability for each of four processes defined by the Supply-Chain Operations Reference-model (SCOR) plan, source, make, and deliver and for what we classify as overall supply chain management practices that govern the strategy and link the processes together. The model also evaluates the extent to which IT enables richer practices and cross-enterprise collaboration in supply chain management. PMG conducts analyses of practices by industry segment, correlations between practice and performance, and distribution of changes in practices over time each year. The findings from the first analysis, conducted in late 2001, showed that process maturity was positively correlated with supply chain performance, profitability, and sales growth. In 2002, the questions in the assessment were refined and expanded.
Copyright 2005 by The McGraw-Hill Companies, Inc. Click here for terms of use.
Strategic Supply Chain Management
This book draws on the results derived over the last three years, and results referenced in 6 are derived from the same population cited in the best-in-class company (BICC) research cited in Appendix A.
DEFINITION OF THE MODEL
Stage of maturity is derived from a qualitative practice assessment that uses more than 270 questions that characterize supply chain practices in four areas plan, source, make, and deliver as well as a number of questions that address overall supply chain practices. These areas are further broken down with specific questions and multiple-choice answers to cover the following scope: planning strategy; demand planning; supply planning; demand-supply balancing and decision making; sourcing strategy; sourcing processes; supplier development/management; sourcing organization and infrastructure; manufacturing strategy; production scheduling; materials issue, movement, and tracking; manufacturing process control; delivery enablement; order entry and scheduling; warehousing, transportation, and delivery; invoicing and cash collection; overall supply chain strategy; overall supply chain performance management; overall supply chain processes; and overall supply chain organization. Each answer choice is organized to denote that the practice is associated with a specific stage of capability. Participating companies characterize both their dominant and their emerging practices. Dominant practices are those which are well established and are used across at least 75 percent of the organization. Emerging or future practices are those which were defined but not fully implemented during 2001 but were anticipated to be dominant by 2003. Based on the company s response in each of the 20 areas listed above, PMG calculates its stage of process maturity. In order for a company to be considered mature for a given stage, it must be effectively using a majority of its practices from that stage. For example, a company with average process maturity ranging from 1.5 to 1.9 is categorized as transitional stage 2 due to a mix of stage 1 and stage 2 practices. A company in this group has most of its practices fully established at stage 1 and also has implemented some practices associated with internal integration, or stage 2.
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