PeopleSoft Scorecard 9.1 PeopleBook

Using Manufacturing Scorecard

This chapter provides overviews of Manufacturing Scorecard, Manufacturing Scorecard summary, and delivered KPIs, lists prerequisites, and discusses how to:

Set up and use Manufacturing Scorecard.
Define calculations and calculate metrics.

Understanding Manufacturing Scorecard

Today, businesses measure their success based on several key performance indicators (KPIs). A scorecard is an enterprise tool for the evaluation and communication of strategic objectives and these KPIs. The Manufacturing Scorecard implements the SCOR (Supply Chain Operations Reference) model within the Scorecard framework, and enables you to effectively monitor, analyze, and respond to those measures that characterize your manufacturing supply chain performance.

Manufacturing Scorecard works in conjunction with Scorecard to provide a current representation of how your manufacturing organization is meeting its manufacturing-centric objectives. Data flows through Scorecard based on a defined frequency. Transactional data is provided to the PeopleSoft EPM warehouse tables, where it is transformed using the Scorecard analysis tools. The system displays analysis results to users who can use this information to analyze or take actions as necessary. The analysis results are accessed from the company intranet or business home page.

Manufacturing Scorecard enables the alignment of day to day management decisions with the overall corporate strategy by combining best practice key performance indicators to monitor and respond to performance changes in real time. The Manufacturing Scorecard supports the Supply Chain Council's SCOR model. The Manufacturing Scorecard comprises the following metrics:

Measures defined by SCOR
Supplier metrics
Customer metrics

This section discusses:

Integrations
Scorecards and strategy components
KPIs
Batch processes

Integrations

Manufacturing Scorecard supports the plan, source, make, deliver, and return business processes.

Manufacturing Scorecard data tables reside in PeopleSoft EPM, which serves as a data repository that can include data from other PeopleSoft applications and other legacy systems, enabling you to source the supply chain, supplier, and customer data that you need. Manufacturing Scorecard leverages the functionality of the Scorecard to manage and measure key performance indicators and communicate strategic direction and results to your organization.

Scorecards and Strategy Components

A scorecard is the visual representation of the objectives that your organization is striving to achieve. The scorecard's foundation is a strategy tree that is comprised of hierarchical nodes of strategy components. Manufacturing Scorecard delivers the Manufacturing scorecard (MFG_SCORECARD).

Strategy components are the elements that make up your strategy, and are the nodes on your strategy tree or tables. Vision, strategic thrusts, and critical success factors are all strategy components, and represent the goals that your manufacturing organization is trying to achieve. KPIs, which measure how well an organization is achieving those goals, are attached to scorecard strategy components.

The predefined data components that make up the Manufacturing Scorecard are delivered at installation. After you install the database, setting up and accessing the Manufacturing Scorecard involves setting up PeopleSoft EPM, populating the data warehouse with data, updating several components of the Scorecard, and populating the final reporting tables.

Note. Before you attempt to set up the Manufacturing Scorecard, you should have installed the appropriate components using the installation documentation and moved the appropriate data components to your system database.

The predefined data components, as delivered, are set up to run with a specific business unit, setID, model ID, scenario ID, and so on. All of the appropriate security and object IDs are delivered as sample data. If you install the Manufacturing Scorecard to a demo database, you can acquaint yourself with the functionality in a demo environment. Using the delivered scorecard is optional, and you can modify it to suit your implementation. You can use the KPI Data Migration Utility to customize content for the delivered scorecards.

This table lists the field values for this scorecard:

Scorecard ID	MFG_SCORECARD
SetID	SHARE
Business Unit	CORP1
Scenario ID	MFG_SC
Model	MFG
Strategy Tree	MFG_STRATEGY
Strategy Components	The strategy components for the operating strategy (strategic thrust) are: MFG_SCOR_RELB — Increase reliability. MFG_SCOR_RESP — Improve responsiveness. MFG_SCOR_FLEX — Maximize flexibility. MFG_SCOR_COST — Reduce supply chain costs. MFG_SCOR_ASSET — Improve asset utilization. MFG_SUPP_PERF — Optimize supplier performance. MFG_CUST__SATS — Improve customer satisfaction. MFG_LEAN_EFF — Improve manufacturing efficiency. MFG_OPR_STRATEGY — Operating Strategy.

KPIs

A KPI defines the data value or calculation from the PeopleSoft EPM warehouse tables that is evaluated to determine how well your organization is meeting its critical success factors.

Manufacturing Scorecard delivers a set of preconfigured KPIs that provides your management with the tools necessary to analyze your manufacturing operation against business objectives. These KPIs have been developed in conjunction with leading consultants and measure many factors including reliability, responsiveness, flexibility, and cost. Most of these KPIs are derived or calculated from existing PeopleSoft EPM data elements based on data from the transactional database.

In cases where data values required for generating the KPIs cannot be derived from PeopleSoft EPM warehouse tables, manual KPIs are provided. Manual KPIs require manual data input.

Manufacturing Scorecard consists of Level 1 KPIs and Level 2 KPIs. Level 1 KPIs are derived from level 2 KPIs. Without level 2 KPIs, level 1 KPIs cannot perform the proper calculations. This dependency is documented in the technical details of the delivered KPIs section in each KPI table.

The KPI IDs of the delivered Manufacturing Scorecard KPIs are delivered under the SHARE setID and are associated with each strategy component as described in this table:

Component ID	Description	KPI List
MFG_SCOR_RELB	Improve Reliability	MFG_SC011
MFG_SCOR_RESP	Increase Responsiveness	MFG_SC021
MFG_SCOR_FLEX	Improve Flexibility	MFG_SC031
MFG_SCOR_COST	Reduce Supply Chain Costs	MFG_SC041 MFG_SC042 MFG_DPO001 MFG_DSO001
MFG_SCOR_ASSET	Improve Asset Utilization	MFG_SC051 MFG_SC052
MFG_SRS_PERF	Monitor Supplier Performance	MFG_SR061 MFG_SR062 MFG_SR063 MFG_SR064 MFG_SR065
MFG_CUST_SATS	Improve Customer Satisfaction	MFG_CS071 MFG_CS072 MFG_CS073 MFG_CS074
MFG_LEAN_EFF	Improve Manufacturing Efficiency	MFG_LMIDD MFG_LMIN MFG_LMIT MFG_LMNP MFG_LMOE MFG_LMP MFG_LMROI MFG_LMT MFG_LMTDD

Batch Processes

You must run the following jobstreams to populate key tables:

KP_ANALYZE

This jobstream populates KP_KPI_CALC_F00 and KP_KPI_ASMT_F00. Run this jobstream to validate the KPI calculation rules, verify end values, and test the KPI assessment rules.
BC_ANALYZE

This jobstream populates KP_KPI_CALC_F00, KP_KPI_ASMT_F00 and BC_ASSESS_F00. Run this jobstream to generate the final scorecard assessments after you validate your setup (by running KP_ANALYZE). If you set up this job to run regularly, the KPI process can aggregate data month-to-month and year-to-date. You must run this process after you populate or update the PeopleSoft EPM warehouse tables (such as during the Extract Transform and Load process) to view current results for your manufacturing scorecard.

Manufacturing Scorecard Summary

The following table contains a summary of the KPIs that are delivered with Manufacturing Scorecard. It lists the KPI description, dimension or object type, perspective type, and KPI calculation definition.

KPI Name	Dimension (Object Type)	Perspective	KPI Calculation
Total Product Revenue	Business Unit	Financial	Calculates the total revenue of all products sold .
Inventory Cost	Business Unit	Internal	Total of all inventory costs.
Supply Chain Cost	Business Unit	Internal	sum of all supply chain related costs / (total product revenue – total product profit)
Supply Chain Adaptation Time	Business Unit	Internal	# days to identify environmental change & devise response + # days to achieve supply of material for new demand level + days to achieve sustained production rate for new demand level + # days to achieve sustained delivery rate at required service levels
Return on Supply Chain Assets	Business Unit	Internal	Supply Chain Revenue Contribution / Supply Chain Fixed Asset Value
Perfect Order Fulfillment	Business Unit	Internal	[total orders shipped on time and in full - orders with faulty documentation - orders with shipping damage] / [total orders]
Order Fulfillment Lead Time (average)	Business Unit	Internal	[actual lead times for orders shipped] / [total number of orders shipped]
Total # of Purchase Orders	Business Unit	Internal	Total number of purchase orders for a period.
Total # of Shipments	Business Unit	Internal	Total # of shipments made for a period.
# Shipments On-Time & Qty Correct	Business Unit	Internal	# shipments made by the commit date with the quantity requested.
Sum of Shipment Lead Times	Business Unit	Internal	Sum difference between shift date and request date.
# of On-Time Shipments	Business Unit	Internal	# shipments made on or before the scheduled date.
# Shipments With Backorder Qty	Business Unit	Internal	# shipments made having a backorder amount.
# Shipments Made In-Full	Business Unit	Internal	# shipments made with the correct requested quantity.
Total # of Orders Received	Business Unit	Internal	Total number of orders received in a period.
# of Orders Invoiced Correctly	Business Unit	Internal	# Orders received with correct invoice amount.
Purchase Qty Accepted	Business Unit	Internal	Sum of QTY_SH_ACCPT_SUOM for all orders received
# Orders Received On-Time	Business Unit	Internal	# of orders received by the promised date
# Orders Received Qty Correct	Business Unit	Internal	# orders received with the correct order quantity
Total Order Qty Received	Business Unit	Internal	Sum of QTY_SH_RECVD_SUOM for all orders received
Total purchase amount	Business Unit	Internal	Sum of MERCH_AMT_BSE for all orders
Purchase amount under contract	Business Unit	Internal	Sum of MERCH_AMT_BSE where CNTRCT_ID is not NULL'
Customer Satisfaction Score	Business Unit	Internal	Average of customer satisfaction scores.
Cost Of Goods Sold	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
% PO Invoiced Correct	Business Unit	Supplier	(# of purchase orders invoiced correctly / total # purchase orders) * 100
% Orders Returned	Business Unit	Internal	# orders returned within a period / # orders shipped within same period
% Orders Received On Time	Business Unit	Internal	% of orders received on time.
% Ordered Quantity Correct	Business Unit	Internal	(quantity received correct / total receipt quantity) - (received qty correct / receipts qty shipped) * 100
% Ordered ($) Under Contract	Business Unit	Internal	(purchased amount under contract / purchased amount closed) * 100
% On Time Delivery	Business Unit	Internal	# shipments made per commit date / total # shipments made
% Returned	Business Unit	Internal	(# orders returned within a period / # orders shipped within same period) * 100
Days Payable Outstanding	Business Unit	Internal	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Days of Inventory Supply	Business Unit	Internal	Current days of inventory supply
Days Sales Outstanding	Business Unit	Internal	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
% Perfect Order Fulfillment	Business Unit	Internal	( (# shipments made on time per a requested date - # shipments having errors ) / total # shipments) * 100
Sum of Supply Chain Costs	Business Unit	Internal	MFG_CST011 + MFG_CST012 + MFG_CST013 + MFG_CST014 + MFG_CST015 + MFG_CST016 + MFG_CST017
Cash to Cash Cycle Time	Business Unit	Internal	(total inventory days of supply + days of sales outstanding) - days of payables outstanding
# Shipments Having Errors	Business Unit	Internal	# of instances of product returns for a period
# Returned Orders	Business Unit	Internal	# of instances of product returns for a period
% Receipts Qty Correct	Business Unit	Internal	( MFG_RCV003 / MFG_RCV001 ) * 100
% Backorders	Business Unit	Internal	# shipments having a backorder qty / total # of shipments made
# of Orders Shipped	Business Unit	Internal	Total # of shipments.
# of Orders Shipped On Time	Business Unit	Internal	# of on-time shipments.
Delivery Performance	Business Unit	Internal	Percent on time delivery.
Average Item Cost (Unit Cost Per Item)	Business Unit	Internal	Sum of (std_cost) / sum of (items)
Average Item Inventory	Business Unit	Internal	Sum of (qty_onhand) / sum of (items)
Average Item Use Per Month	Business Unit	Internal	use_per_year / 12
Inventory Dollar Days	Business Unit	Internal	unit cost * (average inventory / average use per month)
Investment	Business Unit	Internal	material costs + cost of work in progress + finished goods costs + facilities costs + equipment costs
Raw Material Costs	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Work in Progress Cost	Business Unit	Internal	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Facilities Costs	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Equipment Costs	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Inventory Turns	Business Unit	Internal	throughput / inventory
Net Profit	Business Unit	Internal	throughput – operating expense
Operating Expense	Business Unit	Internal	throughput – operating expense
Cost of Salary and Wages	Business Unit	Internal	wage costs + cost of benefits + utilities costs + insurance costs + lease expenses + interest + taxes
Cost of Benefits	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Cost of Utilities	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Insurance Costs	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Lease Costs	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Interest Costs	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Taxes	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Productivity	Business Unit	Internal	throughput / operating expense
Return on Investment	Business Unit	Internal	net profit / inventory
Throughput	Business Unit	Internal	total sales – total variable expense
Shipment Days Late	Business Unit	Internal	Sum of (ship_date – request_date)
Shipment Value	Business Unit	Internal	Sum of (unit_price * ship_qty)
Throughput Dollar Days	Business Unit	Internal	shipment days late * shipment value
Total Variable Expense	Business Unit	Internal	material cost + sales commissions + shipping costs + packaging costs
Material Costs	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Sales Commissions	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Shipping Costs	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Packaging Costs	Business Unit	Financial	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Respond To Environment Change	Business Unit	Internal	#days to identify environmental change and devise response + # days to achieve supply of material for new demand level + days to achieve sustained make rate for new demand level + # days to achieve sustained delivery rate at required service levels.
Achieve New Material Supply	Business Unit	Internal	# days required to achieve a new material supply schedule.
Achieve New Production Rate	Business Unit	Internal	# days required to implement a new production rate.
Achieve New Delivery Rate	Business Unit	Internal	# days required to achieve a new delivery rate.
Order Management Costs	Business Unit	Internal	Costs associated with order processing.
Procurement Costs	Business Unit	Internal	Costs associated with purchasing and procurement.
Planning Costs	Business Unit	Internal	Costs associated with planning activities.
MIS Costs	Business Unit	Internal	Costs associated with operating MIS operations.
Warranty Costs	Business Unit	Internal	Costs associated with warranty replacements.
Returned Product Costs	Business Unit	Internal	Costs associated with processing returned goods.
Total Product Profit	Business Unit	Internal	Resolved using customer-specific PeopleSoft tree structure defining list of General Ledger account groups.
Supply Chain Fixed Asset Value	Business Unit	Internal	(Supply chain revenue contribution / supply chain fixed asset value) * 100.

Delivered KPIs

Details about the delivered KPIs are provided in the MFGPIS.PDF file that is located on the PeopleBooks CD. This file provides information on each of the delivered predefined KPIs via summary and detail tables. Use these tables to better understand Manufacturing Scorecard calculations. You can also use the information in these tables as a basis for altering the scorecard to update KPIs and target rules.

Setting Up and Using Manufacturing Scorecard

To use Manufacturing Scorecard perform the following tasks:

Set up PeopleSoft EPM warehouse tables.
- Define PeopleSoft EPM components including business rules, general options, business units, business models, scenarios, security, ledgers and templates, tablemaps, datamaps, filters, and constraints.
- Extract, transform, and load data from source tables into the Operational Warehouse Staging tables.
- Review data warehouse tables delivered with the system.
- Run ETL to populate the data warehouse tables.
Set up Scorecard tables (optional).

You are not required to set up these tables to implement Manufacturing Scorecard if you plan to use only the delivered Manufacturing Scorecard KPIs. The metadata for these KPIs is also delivered; it is in the SHARE setID. However, if you plan to establish your own scorecards or KPIs, you will need to establish these tables.
- Define your strategy, which includes creating strategy trees and strategy components; setting up strategy components and specifying their assessment method, and creating the scorecard definition.
- Prepare data required for KPIs which includes these tasks: define the data from the Enterprise Warehouse that is the basis for your data elements (data elements are used by KPIs to measure actual results); create calculation definitions on which to base a KPI; specify what type of activity should occur as a result of KPI assessment; establish actions to take as a result of KPI assessment (actions are made up of one or more activities); establish assessment definitions—that is, when the target rule that uses this assessment evaluates as true, the image assigned appears on the scorecard.
- Define KPIs, including calculation and assessment frequency, attachments, analysis paths, report attributes, and notes.
- Establish the security groups for viewing KPIs and for KPI assessment.
- Define assessments.
- Define summary calendars.
- If you use default targets for any KPI dimension members, enter those values.
- Set up user profiles.
Set up Manufacturing Scorecard.
- Define calculations.
- Define parameters for calculating metrics.

Defining Calculations and Calculating Metrics

This section provides an overview of Manufacturing Scorecard calculations and discusses how to:

Define data elements and calculations.
Calculate metrics.
Review metrics.

Understanding Manufacturing Scorecard Calculations

The Manufacturing Scorecard, provides you with the ability to manage the metrics that formulate the KPIs. Here you can define the root data element values and the associated SQL, financial data, or manual input used to extract the metrics from PeopleSoft EPM. Doing so allows you to easily configure the metric derivations without having to navigate through all of the PeopleSoft EPM and KPI configuration pages.

You can use the Define Calculations component to define the data element IDs that are used to calculated the scorecard metrics. The configuration settings are stored in the MFG_KPIVAL_DFN table. They are keyed by data element ID and are global to PeopleSoft EPM (that is, they are not keyed by setID or business unit).

You then request the system to calculate the metrics for a specific business unit and fiscal period. The system reads the data element definitions from the MFG_KPIVAL_DFN table and allows you to override any manual KPI values. You schedule the Calculate Manufacturing KPI Metrics (MFG_KPI_CALC) application engine. This engine reads the data element definitions and carries out the specific logic to resolve metric calculations. The engine carries out the logic for each data element defined for the Manufacturing Scorecard and writes the results along with any manual KPI entries to the MFG metric F00 table (MFG_KPIVAL_F00). The results are keyed by business unit and transaction date such that the PF KPI Generator process can select data values using the standard Enterprise Scorecard assessment logic.

You can review the results for any fiscal period from the MFG_KPIVAL_F00 table.

The PF KPI Generator process refers to the MFG_KPIVAL_F00 table to resolve the final KPI calculations and post to the scorecard.

The following graphic illustrates the calculation process flow, from defining data elements through posting to KPI history tables and scorecards:

KPI calculation process flow

Pages Used to Define Calculations and Calculate Manufacturing Scorecard Metrics

Page Name	Definition Name	Navigation	Usage
Define Calculations	MFG_KPIVAL_DFN	Scorecards, Industry-Specific Processing, Mfg Scorecard Calculations, Define Calculations	Identify data element IDs that are used to calculate Manufacturing Scorecard KPIs, and associate an existing SQL object to perform the calculation.
Calculate Metrics	RUN_MFG_KPI_JOB	Scorecards, Industry-Specific Processing, Mfg Scorecard Calculations, Calculate Metrics	Enter any manual KPI value overrides and schedule the Calculate MFG Metrics (MFG_KPI_CALC) Application Engine process. This process calculates period-based metric values. The process performs calculations according to the metric definitions that are specified on the Define Calculations page.
Review Metrics	MFG_KPIVAL_RVW	Scorecards, Industry-Specific Processing, Mfg Scorecard Calculations, Review Metrics	Review and confirm the calculated results for a specific fiscal period and year.

Defining Data Elements and Calculations

Access the Define Calculations page (Scorecards, Industry-Specific Processing, Mfg Scorecard Calculations, Define Calculations).

You can use this page to maintain calculations values as well as to add metrics.

Data Element Tab

Data Element ID	Lists the data element ID from the KP_DATAELEM_DEFN table.
Metric Type	Indicates the metric type of Manual, Financial, or resolved using SQL. Financial designates the calculation of financial general ledger-based metrics. For this metric type, you use trees to specify the specific account for the calculations on the Metric Details tab.
SQL Object ID	For metric types of SQL (prompted) and Financial (display only - MFG_FIN001 is always used), displays the SQL object ID that is used to perform database selection and calculation.
Default Value	For a metric type of Manual, use to enter a default metric value. Note. The default value can be overridden at calculation time.

Metric Details Tab

SetID and Tree

For a metric type of Financial, specify the setID and tree that contains the account group structure.

Node

For a metric type of Financial, specify the tree node that contains the account values.

Note. Each account value and/or range of account values contained in the selected node (and any child nodes) will be used at calculation time in order to determine the correct general ledger F00 table data to extract and use in the metric.

Click the Select Tree Node button to access the Tree Viewer page, on which you can select the specific account that you want to use by expanding the folders of the tree, highlighting the account, and clicking the Select button. The account appears in the Node field on the Define Calculations page.

Calculating Metrics

Access the Calculate Metrics page (Scorecards, Industry-Specific Processing, Mfg Scorecard Calculations, Calculate Metrics).

Description and Business Unit

Enter a description and select the performance business unit to which the KPI results resolves.

Fiscal Year and Accounting Period

Specify the fiscal year and period for the metric calculation.

Review/Change Manual Values

Use the Review/Change Manual Values group box to review the current values for the manual KPIs. These are initially set on the Define Calculations page. You can override any value before calculating by setting the value type to Override and entering a new value in the Value field.

You can also specify No Value for a metric. Doing so cancels the assessment of any KPI that is based on that metric.

After you have completed any manual value override setup, click the Run button to schedule the MFG_KPI_CALC application engine process. This process reads the data element definitions and carries out the SQL to resolve metric calculations. The engine writes the results to the MFG_KPIVAL_F00 table, where they are picked up by the BC_Analyze process.

Reviewing Metrics

Access the Review Metrics page (Scorecards, Industry-Specific Processing, Mfg Scorecard Calculations, Review Metrics).

Specify the fiscal year and accounting period for which you want to review the results.

Calendar ID	Displays the ID of the calendar associated with the selected business unit.
Date From and Date To	Displays the date range of the fiscal period (based on the calendar ID used).
Calculation Date	Displays the date and time that the calculation was performed.
Data element ID and Description	Displays the ID and description of the data elements that were included in the calculation.
Value	Displays the value of the metric. For manual KPIs this is the manual value entered. For calculated KPIs, this is the calculated value.
Value Type	Displays the value type. Possible types are: Default (default manual value), No Value (no value was entered for a manual metric), Error (an error occurred during calculation), and Calculated.
Metric Type	Displays the metric type. Possible types are: Manual (manual KPIs), Financial (KPIs that are derived from financial general ledger data), and SQL (SQL derived KPIs).

Note. This is a display-only page. To make corrections, rerun the Calculate KPI application engine for the fiscal year and period.