Performing supply chain activities include planning supply chain, procuring materials and services, and managing logistics.
| 4.0 | Deliver Physical Products | |||||
| 4.1 | Plan for and align supply chain resources | |||||
| 4.1.1 | Develop production and materials strategies | |||||
| 4.1.1.1 | Define manufacturing goals | |||||
| 4.1.1.2 | Define labor and materials policies | |||||
| 4.1.1.3 | Define outsourcing policies | |||||
| 4.1.1.4 | Define capital expense policies | |||||
| 4.1.1.5 | Define capacities | |||||
| 4.1.1.6 | Define production network and supply constraints | |||||
| 4.1.1.7 | Define production process | |||||
| 4.1.1.8 | Define standard operating procedures | |||||
| 4.1.1.9 | Define production workplace layout and infrastructure | |||||
| 4.1.2 | Manage demand for products | |||||
| 4.1.2.1 | Develop baseline demand forecasts | |||||
| 4.1.2.2 | Collaborate demand with customers | |||||
| 4.1.2.3 | Develop demand consensus forecast | |||||
| 4.1.2.4 | Determine available to promise | |||||
| 4.1.2.5 | Monitor activity against demand forecast and revise forecast | |||||
| 4.1.2.6 | Evaluate and revise demand forecasting approach | |||||
| 4.1.2.7 | Measure demand forecast accuracy | |||||
| 4.1.3 | Create materials plan | |||||
| 4.1.3.1 | Create unconstrained plan | |||||
| 4.1.3.2 | Collaborate with supplier and contract manufacturers | |||||
| 4.1.3.3 | Identify critical materials and supplier capacity | |||||
| 4.1.3.4 | Monitor material specifications | |||||
| 4.1.3.5 | Generate constrained plan | |||||
| 4.1.3.6 | Define production balance and control | |||||
| 4.1.4 | Create and manage master production schedule | |||||
| 4.1.4.1 | Model production network to enable simulation and optimization | |||||
| 4.1.4.2 | Create master production schedule | |||||
| 4.1.4.3 | Maintain master production schedule | |||||
| 4.1.5 | Plan distribution requirements | |||||
| 4.1.5.1 | Maintain master data | |||||
| 4.1.5.2 | Determine finished goods inventory requirements at destination | |||||
| 4.1.5.3 | Determine product storage facility requirements | |||||
| 4.1.5.4 | Calculate requirements at destination | |||||
| 4.1.5.5 | Calculate consolidation at source | |||||
| 4.1.5.6 | Manage collaborative replenishment planning | |||||
| 4.1.5.7 | Calculate and optimize destination dispatch plan | |||||
| 4.1.5.8 | Manage dispatch plan attainment | |||||
| 4.1.5.9 | Calculate and optimize destination load plans | |||||
| 4.1.5.10 | Manage partner load plan | |||||
| 4.1.5.11 | Manage cost of supply | |||||
| 4.1.5.12 | Manage capacity utilization | |||||
| 4.1.6 | Establish distribution planning constraints | |||||
| 4.1.6.1 | Establish distribution center layout constraints | |||||
| 4.1.6.2 | Establish inventory management constraints | |||||
| 4.1.6.3 | Establish transportation management constraints | |||||
| 4.1.6.4 | Establish storage management constraints | |||||
| 4.1.7 | Review distribution planning policies | |||||
| 4.1.7.1 | Review distribution network | |||||
| 4.1.7.2 | Establish sourcing relationships | |||||
| 4.1.7.3 | Establish dynamic deployment policies | |||||
| 4.1.8 | Develop quality standards and procedures | |||||
| 4.1.8.1 | Establish quality targets | |||||
| 4.1.8.2 | Develop standard testing procedures | |||||
| 4.1.8.3 | Communicate quality specifications | |||||
| 4.2 | Procure materials and services | |||||
| 4.2.1 | Provide sourcing governance and perform category management | |||||
| 4.2.1.1 | Develop procurement plan | |||||
| 4.2.1.2 | Clarify purchasing requirements | |||||
| 4.2.1.3 | Establish materials management contingency plans | |||||
| 4.2.1.4 | Match needs to supply capabilities | |||||
| 4.2.1.5 | Analyze organization’s spend profile | |||||
| 4.2.1.6 | Seek opportunities to improve efficiency and value | |||||
| 4.2.1.7 | Collaborate with suppliers to identify sourcing opportunities | |||||
| 4.2.2 | Develop sourcing and category management strategies | |||||
| 4.2.3 | Select suppliers and develop/maintain contracts | |||||
| 4.2.3.1 | Select suppliers | |||||
| 4.2.3.2 | Certify and validate suppliers | |||||
| 4.2.3.3 | Negotiate and establish contracts | |||||
| 4.2.3.4 | Manage contracts | |||||
| 4.2.4 | Order materials and services | |||||
| 4.2.4.1 | Process/Review requisitions | |||||
| 4.2.4.2 | Approve requisitions | |||||
| 4.2.4.3 | Solicit/Track vendor quotes | |||||
| 4.2.4.4 | Create/Distribute purchase orders | |||||
| 4.2.4.5 | Expedite orders and satisfy inquiries | |||||
| 4.2.4.6 | Reconcile purchase orders | |||||
| 4.2.4.7 | Research/Resolve order exceptions | |||||
| 4.2.5 | Manage suppliers | |||||
| 4.2.5.1 | Monitor/Manage supplier information | |||||
| 4.2.5.2 | Prepare/Analyze procurement and vendor performance | |||||
| 4.2.5.3 | Support inventory and production processes | |||||
| 4.2.5.4 | Monitor quality of product delivered | |||||
| 4.3 | Produce/Assemble/Test product | |||||
| 4.3.1 | Schedule production | |||||
| 4.3.1.1 | Model and simulate plant | |||||
| 4.3.1.2 | Generate line level plan | |||||
| 4.3.1.3 | Generate detailed schedule | |||||
| 4.3.1.4 | Schedule production orders and create lots | |||||
| 4.3.1.5 | Schedule preventive (planned) maintenance (preventive maintenance orders) | |||||
| 4.3.1.6 | Schedule requested (unplanned) maintenance (work order cycle) | |||||
| 4.3.1.7 | Release production orders and create lots | |||||
| 4.3.2 | Produce/Assemble product | |||||
| 4.3.2.1 | Manage raw material inventory | |||||
| 4.3.2.2 | Execute detailed line schedule | |||||
| 4.3.2.3 | Report maintenance issues | |||||
| 4.3.2.4 | Rerun defective items | |||||
| 4.3.2.5 | Monitor and optimize production process | |||||
| 4.3.2.5.1 | Automate and control plant | |||||
| 4.3.2.5.2 | Perform advanced process control | |||||
| 4.3.2.5.3 | Perform real-time optimization | |||||
| 4.3.2.5.4 | Manage plant alarms and alerts | |||||
| 4.3.2.6 | Assess production performance | |||||
| 4.3.3 | Perform quality testing | |||||
| 4.3.3.1 | Calibrate test equipment | |||||
| 4.3.3.2 | Perform testing using the standard testing procedure | |||||
| 4.3.3.3 | Manage quality samples | |||||
| 4.3.3.4 | Record test results | |||||
| 4.3.3.5 | Track and analyze non-conformance trends | |||||
| 4.3.3.6 | Perform root cause analysis | |||||
| 4.3.4 | Maintain production records and manage lot traceability | |||||
| 4.3.4.1 | Determine lot numbering system | |||||
| 4.3.4.2 | Determine lot use | |||||
| 4.4 | Manage logistics and warehousing | |||||
| 4.4.1 | Provide logistics governance | |||||
| 4.4.1.1 | Translate customer service requirements into logistics requirements | |||||
| 4.4.1.2 | Design logistics network | |||||
| 4.4.1.3 | Communicate outsourcing needs | |||||
| 4.4.1.4 | Develop and maintain delivery service policy | |||||
| 4.4.1.5 | Optimize transportation schedules and costs | |||||
| 4.4.1.6 | Define key performance measures | |||||
| 4.4.1.7 | Define reverse logistics strategy | |||||
| 4.4.2 | Plan and manage inbound material flow | |||||
| 4.4.2.1 | Plan inbound material receipts | |||||
| 4.4.2.2 | Manage inbound material flow | |||||
| 4.4.2.3 | Monitor inbound delivery performance | |||||
| 4.4.2.4 | Manage flow of returned products | |||||
| 4.4.2.5 | Control quality of returned parts | |||||
| 4.4.2.6 | Salvage or repair returned products | |||||
| 4.4.2.6.1 | Perform salvage activities | |||||
| 4.4.2.6.2 | Manage repair/refurbishment and return to customer/stock | |||||
| 4.4.3 | Operate warehousing | |||||
| 4.4.3.1 | Track inventory deployment | |||||
| 4.4.3.2 | Receive, inspect, and store inbound deliveries | |||||
| 4.4.3.3 | Track product availability | |||||
| 4.4.3.4 | Pick, pack, and ship product for delivery | |||||
| 4.4.3.5 | Track inventory accuracy | |||||
| 4.4.3.6 | Track third-party logistics storage and shipping performance | |||||
| 4.4.3.7 | Manage physical finished goods inventory | |||||
| 4.4.3.8 | Manage warehouse transfers | |||||
| 4.4.4 | Operate outbound transportation | |||||
| 4.4.4.1 | Plan, transport, and deliver outbound product | |||||
| 4.4.4.2 | Track carrier delivery performance | |||||
| 4.4.4.3 | Manage transportation fleet | |||||
| 4.4.4.4 | Process and audit carrier invoices and documents | |||||
Process and performance improvement, helps organizations adapt to rapidly changing environments, build new and better ways to work, and succeed in a competitive marketplace. With a focus on productivity, knowledge management, benchmarking, and quality improvement initiatives, organisations such as the APQC works with its member organizations to identify best practices; discover effective methods of improvement; broadly disseminate findings; and connect individuals with one another and the knowledge, training, and tools they need to succeed.
This APQC Process Classification Framework® (“PCF”) is an open standard developed by APQC, a nonprofit that promotes benchmarking and best practices worldwide. The PCF is intended to facilitate organizational improvement through process management and benchmarking, regardless of industry, size, or geography. To download the full PCF or industry-specific versions of the PCF, as well as associated measures and benchmarking, please visit www.apqc.org/pcf.
