Supply chain process documentation

However, it is rare to think about a business as a network. Nonetheless, each business exists in the context of a supply chain network. 

This chapter moves from the process evaluation methods described in Chapter 23 to methods for process documentation. The need to document extends from as-is to redesigned to-be processes. Our introduction to the subject of processes in Chapter 22 asserted that processes, as building blocks of activities, contribute mightily to competitive position. While process management tools such as the Supply-Chain Council s SCOR, described in Chapter 23, will help, most companies have one-of-a-kind existing processes and unique requirements for future processes. 

William Walker s observation reasonably raises the issue of documenting the supply chain network because the scope of the supply chain extends far beyond company boundaries. Supply chain improvement efforts bring the need for efficient tools to chart supply chain flows. These should reduce the risk of bogging down the effort in tedious and unneeded analysis work. 

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Process Management develops as a means to properly secure a supply chain process wherein the firm must be infimately aware of the cross-functional activities involved in moving from farm to fork. Activities should be documented and formalized via cross-functional flow charts. These flow charts should document each activity and each step of the process as well as track both product and iirformation flows. Additionally, firms should engage in mock disraptions and table-top exercises in order to simulate the firm s reaction to a security event. 

For medical devices, inspectors expect to see a process improvement program in place encompassing all activities within the supply chain, including the systems that support it. Activities that would provide evidence that such a program is in place include the implementation of documented processes such as Corrective and Preventative Action (CAPA), self-inspection, and internal audits." Organizations should ensure that where an SOP has been put in place to initiate a process improvement activity, the SOP is adhered to. For example, if a quality audit SOP states that all areas shall be subject to audit at least once every 2 years, then inspectors will expect to see evidence that this has been the case. Failure to do so is likely to result in a citation similar to that issued to Krieger Medical, Inc. ... 

Distribution is an important activity in the integrated supply-chain management of pharmaceutical products. Various people and entities are generally responsible for the handling, storage and distribution of such products. In some cases, however, a person or entity is only involved in and responsible for certain elements of the distribution process. This document sets out appropriate steps to assist in fulfilling the responsibilities involved in the different aspects of the distribution process. The guidelines are intended to apply to all steps in the distribution/supply chain. The relevant sections should be considered by various role players as applicable to their particular role in the distribution process. The document does not specifically cover... 

Shop for rate and schedule data Generate, transmit, and file shipping documents Manage inventory and multiple-point distribution Trace shipments Measure carrier performance Identify supply chain weaknesses Process and pay freight bills Budget and manage costs... 

As asserted in the quotation above, quality function deployment (QFD), introduced previously in Section 6.5, has much to recommend it for supply chain design. QFD, in fact, originated in 1971 from the deployment of quality engineers to document customer requirements, remains a tool in popular siK sigma process improvement programs. 

The CSCMP standards target users who want to quickly assess their supply chain practices, perhaps as a first cut at identifying needs for improvement. A user of these standards assesses where they stand on a 1 to 5 scale, ranging from Below Minimum to Best Practice. Because the process standards document what are already widely adopted practices, adopting these standards does not ensure improved competitive position. 

Documentation is important because Design Teams charged with process improvement must understand thoroughly how and how well their processes work. As the teams come up with supply chain innovations, they must also communicate the chosen direction and the reasons for that direction to process stakeholders. 

Documentation is an art form. There are many methods and tools. This chapter describes a few that have proven useful, particularly in their application to multicompany supply chains. The tools can also be executed using standard business software or specialized graphics tools. An important warning is not to get bogged down in unnecessary documentation. A balance must be established based on business requirements. Elsewhere we discuss concepts and tools for application in processes. Applying these tools will certainly require that certain process elements be eaptured in the process documentation. 

Both top-down and bottom-up mapping are required in supply chain improvement efforts. Table 24.1 describes the role for process analysis in the application of these tools. A column in the table indicates the likely type of mapping — top down or bottom up. Depending on the needs of the organization, the Design Team can employ Table 24.1 in designing its documentation approach to a particular process. Teams should review the list to be sure they are capturing the information required to apply a listed concept or tool. 

Many companies undertake training of employees in the concepts and tools shown in Table 24.1. Much of this time is wasted without application to a process improvement effort. Supply chain improvement efforts are a good way to introduce Design Team members to process documentation as part of lean. Six Sigma, Total Quality initiatives, or unlabeled efforts. Process documentation and analysis skill is the core competency for these initiatives. 

In SITELINK, each process step must be considered. In a retail chain supply chain application, this should include sourcing, warehousing, and transportation operations. Note that the documentation is for direct requirements. Indirect requirements were nonprocess costs. Examples are the logistics management and other building-related costs. These are resources that are not directly involved with the process. The indirect requirements matrix contained relationships between the direct and the indirect resources. 

The many activities to be conducted on the performance Y, such as order logging, order clarification, design, work preparation, allocation, selection of suppliers, procurement, incoming merchandise, quality assurance, preparation of all production documents and inventory, planning and readiness of capacity, production, storage, assembly, start-up operation, acceptance, shipping, transport to the customer, and in the case of single item producers, also the set up, start-up operation and acceptance on site are to be understood as the performance processes to be accelerated, i.e. the intra-corporate supply chain. Each of these activities are to be implemented and coordinated so as to ensure that a maximum overall company result is achieved. 

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