Mit ARIS Express zum SCOR-Referenzmodell

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1 Mit ARIS Express zum SCOR-Referenzmodell How To Use The Approach Consultant Paper Arbeitsberichte zur Wirtschaftsinformatik Nummer: 01/2010 Autoren: Peter Mayer, Anne Reiner, Daniel Wittkowsky, Georg Kästle Studiengang Wirtschaftsinformatik DHBW Ravensburg

2 Bibliographische Information der Deutschen Bibliothek Die Deutsche Bibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über abrufbar. bei den Autoren, 2010 Herausgeber: Studiengang Wirtschaftsinformatik, DHBW Ravensburg Anschrift: Marienplatz Ravensburg +49 (0) 751 / Version: 1.0 ISSN: Diese Publikation ist urheberrechtlich geschützt. Sie darf ohne vorherige Genehmigung der Autoren/Herausgeber nicht vervielfältigt werden.

3 Table of Contents List of Figures... iv 1 Introduction SCOR Overview Supply Chain Council Supply Chain Management and SCOR What does SCOR model provide? What is not included in SCOR model? ARIS Express ARIS Express Overview IDS Scheer, ARIS and SCOR ARIS Express ARIS Express vs. ARIS-Toolset ARIS Express Notation Organisational diagram Process landscape Business process : Extended Event-driven Process Chain (eepc) Data model IT Infrastructure System landscape Free Diagram SCOR Processes Structure of the SCOR Model Levels of SCOR Model SCOR Version 9.0 Table of Contents SCOR notation SCOR Level 1 (Top Level) Level 2 (Configuration Level) Function Structure Description of a process category Level 3 (Process Element Level) Function and Structure Description of a process Element Level 4 (Implementation Level) i

4 4.5.1 Function and Structure Description of a process Inputs/Outputs Best Practices SCOR Metric System Metrics and Benchmarking with SCOR Performance Attributes Levels of SCOR metric system Standard notation Metric data sheet Benchmarking in Supply Chain with Scor Description of the company Bike Shop 3000 GmbH Organization of the Company The IT-Systems in the Company The Infrastructure of the IT The IT-Infrastructure in Ohnewitz The IT-Infrastructure in Schönholz Data of the Company Configuration of the Supply Chain Implementation of a Source Process Overview of SCOR-Source Processes Description of the SCOR-Process Element S Implementation of the SCOR-Process Element Implementation of a Make Process Overview of the SCOR Make Processes Description of the SCOR Process Element Implementation of the SCOR Process Element Overview: How to implement SCOR Initial Phase Phase One Phase Two Phase Three Phase Four Phase Five Value of a SCOR Initiative SCOR & SAP General information mysap Supply Chain Management (mysap SCM) SAP Solution Manager SAP Business ByDesign ii

5 9 Conclusion Bibliography iii

6 List of Figures Figure 1 SCOR: Business process reference model... 4 Figure 2 Organisational Diagram: Notation Figure 3 Process landscape: SCOR structure, Notation Figure 4 Process landscape: SCOR Metric System, Notation Figure 5 eepc: Notation Figure 6 Data model: Notation Figure 7 IT Infrastructure: Notation Figure 8 System landscape: Notation Figure 9 Free Diagram: Available Symbols Figure 10 Levels of SCOR model Figure 11 SCC standard notation Figure 12 SCOR Notation Process Categories M1, M2, M Figure 13 SCOR's five core management processes Figure 14 SCOR Performance Attributes and associated Level 1 Metrics Figure 15 SCOR: metric system notation Figure 16 Hierarchical Structure Metric Level 1 RL Figure 17 Hierarchical Structure Metric Level 2 RL Figure 18 Bike Shop 3000 GmbH Organizational Chart Figure 19 Bike Shop 3000 GmbH System Landscape Figure 20 IT-Infrastructure Ohnewitz Figure 21 IT-Infrastructure Schönholz Figure 22 Bike Shop 3000 GmbH Data Diagram Figure 23 Bike Shop 3000 GmbH Data Model S Figure 24 Bike Shop 3000 GmbH eepc S Figure 25 Bike Shop 3000 GmbH Data Model M Figure 26 Bike Shop 3000 GmbH eepc M Figure 27 Sample Scorecard Figure 28 Sample Geographic Map Figure 29 Sample Thread Diagram Figure 30 Sample Disconnect Analysis Figure 31 Sample Opportunity Analysis Figure 32 SCOR Project Example Overview Figure 33 SCOR Project Example Detail Part Figure 34 SCOR Project Example Detail Part Figure 35 SCOR Index Comparison Figure 36 SCOR framework & IT Figure 38 SAP solution map: SAP SCM Edition Figure 39 SCM based on SAP Figure 40 Components of SCM in SAP Business ByDesign iv

7 1 Introduction "Theory without practice leads to an empty idealism, and action without philosophical reflection leads to mindless activism." This manual is intended to link the two above displayed worlds the theoretical and the practical one regarding the business process reference model SCOR and business process management software ARIS Express. It is intended to give a detailed insight into the SCOR model with the support of figures modelled witch ARIS Express. The theoretical part starts with a short overview about the SCOR model in general, afterwards the BPM platform ARIS and one solution ARIS Express used in the course of this manual will be described. Short information about IDS Scheer and notation in ARIS Express will be given. Fourth chapter deals with SCOR Processes. After a short description of SCOR Model s structure detailed information about level 1 to 4, inputs/outputs and best practices will be given. Next chapter gives information about the SCOR metric system and benchmarking in supply chain with SCOR. In the following chapters theory explained before will be applied on a specified company, Bike Ship 3000 GmbH. That s just level 4 of the SCOR model which is being implemented. After an overview of possibilities how to implement SCOR, especially regarding project management, and benefits resulting from using SCOR in a company last chapter covers software solutions from SAP implementing the SCOR model. Bibliography provides a list of famous technical literature concerning the SCOR model and related topics covered in this manual. 1

8 2 SCOR Overview This sub-chapter is intended to give an overview about the Supply-Chain Operations Reference (SCOR)-Model and related topics, such as Supply Chain Management (SCM) and SCC (Supply Chain Council). 2.1 Supply Chain Council The SCOR model was developed by the Supply Chain Council, a non-profit-organization, to be able to evaluate and compare supply-chain activities and performance. 1 SCC was founded in 1996 in the United States of America by two consultancies, Pittiglio Rabin Todd & McGrath (PRTM) and Advanced Manufacturing Research (AMR). The Supply Chain Council initially included 69 of the world s leading companies, such as Bayer, Compaq or Procter & Gamble. 2 It now has closer to 1,000 corporate members world-wide. This fast growth in the last years led to establishment of international chapters, amongst others in Europe, Australia and Brazil. Because of the ongoing wish to spread SCOR s idea around the world the foundation of additional chapters in other countries, such as India, is planned. 3 The more the SCOR-model will be disseminated the easier software systems and best practice can be developed. 4 There is a platform with lots of information about the SCOR model and related topics provided by the SCC. Interested readers may visit Membership in SCC is open to all companies and organizations with an interest in advancing the state-ofthe-art in supply-chain management systems and practices. 5 As a member of SCC you pay an annual fee to support Council activities on the one hand and get lots of special offers, such as upcoming webinars and events, white papers or template data bases for ARIS or TIBCO to discover SCOR for you and your company on the other hand. Furthermore you can download SCOR s complete up to date version. 2.2 Supply Chain Management and SCOR There are many different approaches to define Supply Chain Management. As Bolstorff recognized well the definition depends on your motivation and interest. While a third-party logistics provider trying to sell its outsourcing capabilities will align SCM with distribution practices, a technology provider trying to sell software might align SCM with the use of advanced planning functionality. 6 SCM has its origin in the early 80s in the United States of America where Anglo-American consultants, such as Oliver and Webber, formed the term. Theoretical elaborations started in late 80s, again in the USA. Pioneers are for example Bothe (1989), Hewitt (1994) or Towill (1996). In Germany, SCM was established both theoretical and practical in the mid 90s. Towill, for example, defined SCM just as linking of systems for order processing. 7 Knolmayer, author of SCM based on SAP systems which was used in chapter SCOR and SAP, describes SCM as follows: 1 SCC Inc. (2008a), Summary Bolstorff, Rosenbaum (2007), p. 2 3 SCC Inc. (2010), 4 SCC Inc. (2008a), Summary SCC Inc. (2008a), Summary Bolstorff, Rosenbaum (2007), p. xiii 7 Werner (2008), p. 3 f. 2

9 Supply Chain Management tries to improve the flow of materials, information and financial resources within the company and among companies collaborating under long- or mediumterm agreements by sharing information, concerted planning and scheduling, coordinated execution, and collaborative monitoring and controlling to improve the competitiveness of the entire supply chain. 8 First of all, the SCOR-Model is highly accepted in SCM. Last but not least, because it provides solutions for problems concerning supply chains. SCOR as a cross-industry standardised model is an objective way to help SCM. 9 As mentioned by Holten and Melchert information technology becomes more and more key to success in SCM. SCM has the intention to create value in a corporate and coordinated way. Managers and practitioners working to optimize Supply Chains want to meet customer needs as efficient as possible and maximize customer supports at the same time. With reference to SCM level of development (published by Bechtel and Jayaram) they describe 4 steps to implement SCM in a company network: Material flow of value-added chain has to be integrated from initial production to endconsumer in other words the elements of chain have to be linked! 2. At this step material flow between companies has to be designed actively to increase in efficiency. For this purpose especially Advanced Planning Systems (APS) are used. 3. A bidirectional flow of information, which both displays material flow along whole value-added chain and follows way backwards too. This can be achieved, for instance, by using the SCOR-Model, which provides metrics for each process at different levels. According to Holten and Melchert this step could be seen as kind of state of technology in Process integration From theirs point of view this step marks next great challenge. SCM has the objective to develop a supply chain with partners, who bring his/her core competences. 8 years after above mentioned book was published it has to be admitted that process integration is in progress and has even led to successful results! 2.3 What does SCOR model provide? The SCOR Model was developed with the aim to standardise actions within a supply chain and be able to describe those actions consistently by all involved partners along the supply chain. 11 Working process resulted in a normative business process reference model which provides a standard methodology to analyze and describe all aspects of a supply chain. In general and as described by SCC, a process reference model differs from classic process decomposition model which address one specific configuration of process elements. 12 In this context, a normative model consists of predefined alternatives and describes how an object of the model should be seen and acts. Due to higher level of abstraction used in normative models modelling becomes much easier. 8 Knolmayer (2009), p. 3 f. 9 Bolstorff, Rosenbaum (2007), p. xiii f. 10 Holten, Melchert (2002), p. 207 f. 11 Werner (2008), p. 48 f. 12 SCC Inc. (2008b), p. 6 3

10 There are following further advantages, which results from standardisation: - Exchange of models beyond company units and organisations is possible. - General problems and metrics can be described. - Industry standards and business practices can be exchanged. 13 SCOR model contains elements of business process reengineering, process (and not functions!) definitions, metrics, benchmarking and best practices; focal point on core processes plan, source, make, deliver and return at all times. 14 These parts combined with the features associated with the execution of a supply chain in a unique format 15 are the characteristics of a business process reference model. SCOR became as powerful and unique as it is because of the combination of the four mentioned elements. See this synthesis visualised in the graphic below. Figure 1 SCOR: Business process reference model With the help of the metric system it is possible to measure particular actions within standardised supply chains. Furthermore concept of SCOR includes requirements for software which supports companies in improving their supply chains. As (business) process reference model SCOR model ranges from source of supply to point of consumption. There are several alternatives to model one process. Actions are configurable. Thereby a standardised language for intern and network communication is provided, which is an important condition for benchmarking between partners. 16 Besides the SCOR model there are also other normative business process reference models, such as ARIS. But special feature of the SCOR model in this context is the concentration on company s supply chains Bolstorff, Rosenbaum, Poluha (2007), p IDS Scheer IV 15 SCC Inc. (2008a), Introduction Werner (2008), p. 48 f. 17 Bolstorff, Rosenbaum, Poluha (2007), p. 17 4

11 2.4 What is not included in SCOR model? As you can see, the SCOR-model provides a basis for improvements in SCM for global projects as well as specific projects. On the one hand, it spans all customer interactions, all physical material and all market interactions, but on the other hand it doesn t have the objective to describe every business process. SCC doesn t intend to give a concrete reference supply chain because degree of freedom would be restricted. Due to the vision to provide a reference model you will not find any process modelled beyond company gateway. Furthermore there are no declarations about marketing, research & development and customer support. According to SCC, the areas human resources or training which are also not mentioned, are implicit in the SCOR model. 5

12 3 ARIS Express Easy Installation - Fast Modeling - Instant Results. BPM on The Fast Track - Join the ARIS Express IDS Scheer V 6

13 3.1 ARIS Express Overview This chapter is intended to give an overview about ARIS Express and related topics, such as ARIS and IDS Scheer IDS Scheer, ARIS and SCOR The well-known and proven method to model business processes ARIS was developed by IDS Scheer. According to information on their website IDS Scheer is the market leader in Business Process Management (BPM) software, solutions and services for corporations and public organizations worldwide. 19 The company was founded in 1984 by Prof. Dr. Dr. August Wilhelm Scheer, who has been working at Institute for Information Systems at University Saarbrücken. Headquarter of IDS Scheer is also in Saarbrücken. 20 Again proudly pronounced by IDS Scheer on the website, they are the worldwide market leader in business process analysis and optimization with its ARIS Software. 21 ARIS is said to be a tool for analyzing, designing, implementing and controlling corporate processes. There are four main modules of ARIS platform which was implemented with the aim to provide tools for every phase of a BPM project: ARIS Strategy Platform ARIS Design Platform ARIS Implementation Platform ARIS Controlling Platform ARIS Platform provides different starting points for companies to adapt SCOR with the help of ARIS. Furthermore IDS Scheer offers various reference models with ARIS Business Performance Edition, amongst others ITIL (Information Technology Infrastructure Library) or SCOR. Consequently, they also keep an eye to ongoing development of the SCOR-Model. 22 Commercial application ARIS EasyScor, which is based on SCOR Version 8.0, provides support with best practices and metrics ARIS Express IDS Scheer published a starter s version in September 2009 called ARIS Express, which can be downloaded for free. ARIS Express is part of ARIS Design Platform. According to IDS Scheer it is the first free business process management (BPM) software to model and optimize business processes. 23 You will have to be registered at ARIS Community (see if you want to use ARIS Express. 19 IDS Scheer II 20 Please visit 21 IDS Scheer III 22 Please visit to get more information about IDS Scheer and provided solutions. 23 IDS Scheer I 7

14 ARIS Community offers lots of helpful things, such as: 24 ARIS Express online-help various video-tutorials user forum to discuss and get quick and competent answers for questions free training material for self-studies Modeling area and diagram types Modeling area of ARIS Express is very similar to commercial ARIS Tools. However, range of the symbols used is limited. Design of the symbols changed. ARIS-Toolset offers a wide range of diagram types. There have been chosen seven out of them for ARIS-Express. See table below with information about available diagram types. Diagram type Organizational diagram Purpose Description of hierarchical structure of an organization Process landscape / value added chain Description of process hierarchies Division of processes into subprocesses Overview about all processes in an organization Business process : Extended Event-driven Process Chain (EPC) chronological and logical sequence of activities Use of additional objects, such as IT systems, organizational units or documents Data model Description of data interrelation on an abstract level IT infrastructure Description of running software and hardware, used network devices System landscape Description of IT systems and their belonging logical units (domains) Free diagram Free modeling with various shapes and possibilities to link objects As all IDS Scheer products are continuously advanced they pronounced recently to integrate BPMN modelling into ARIS Express. For describing SCOR all diagram types listed in the table above will be used. Functionality of ARIS Express There are some innovations implemented in ARIS Express which make modelling easier and faster than in ARIS Toolset, for instance. See table on next page with some examples. All of these functions have even not been implemented in the commercial ARIS-Tool! 24 Allweyer (2009) 8

15 What? How? Benefit Pattern catalogue (amongst others tree and process flow) Create modeling content textual in any text editor and copy to ARIS Express Use existing patterns: Drag & Drop: Choose a pattern and drop into model Create new patterns: drag model extract menu create pattern name pattern Example: Type names of all required activities into text editor copy & paste to ARIS Express (select object type) new object for each inserted line Smart Design idea: kind of wizard to create a new model input into a table automatic layout Just object names and possibly links between objects have to be filled in See above Faster modeling Reduce effort to capture objects and links ARIS Express vs. ARIS-Toolset Furthermore there are some new display options, which are not in available in ARIS either: further text formatting possibilities totally free placement of attribute values On the other hand, there are many missing functionalities in the free version: create own filters and reports export possibilities (only predefined exports in pdf or rtf) multi-user-support (no data base in background as in commercial ARIS Tools, everything is stored in files) links and navigation between models (no data base in background, hyperlink as only possibility in ARIS Express) different copy modes (no data base in background) multilingualism Fortunately, some comfortable functionalities known from ARIS Toolset were taken over to ARIS Express. switch link mode on/off arrange objects (left-aligned, right-aligned, centre horizontally/vertically, space horizontally/vertically etc.) insert graphic objects, such as rectangle, ellipse insert freeform text While models, which were designed in ARIS Express can be imported to the commercial version, the other way around won t work. 9

16 Nevertheless, ARIS and especially ARIS Express have been chosen as modelling language respectively modelling tool/notation in this SCOR project because of the publicity and spreading of ARIS and simplicity and power of ARIS Express. 10

17 3.2 ARIS Express Notation The following overview is intended to describe used ARIS Express elements and their specific notation. For each ARIS Express element benefit is described textually and notation is shown in a figure. Please note: All following explanations concerning ARIS Express are based on ARIS Express version Organisational diagram Benefit This ARIS Express element is used to describe organisational structures, such as relationships between organisational units, roles and persons. Organisational unit Role Person Figure 2 Organisational Diagram: Notation Process landscape Benefit This ARIS Express element is used to describe process hierarchies. An overview about value adding processes in a company can be given. Furthermore, processes can be divided into sub-processes. Team SCOR used given ARIS Express notation to model SCOR model structure (level 1 to 4). Process landscape: SCOR model level 1 to 4 Process Figure 3 Process landscape: SCOR structure, Notation 11

18 According to SCC and SCOR Version 9.0, where SCOR levels 1 to 4 and SCOR metric system is looked at separately, Team SCOR used following self-developed notation to model structure of SCOR metric system. (see figure below) SCOR Metric System Esp. display hierarchy: performance attributes and associated SCOR metrics level 1 Topic Category Performance Attribute Performance attribute Metric Metric code Figure 4 Process landscape: SCOR Metric System, Notation 12

19 3.2.3 Business process : Extended Event-driven Process Chain (eepc) Benefit Event-driven Process Chains in general are used to show the chronological and logical sequence of activities. If additional objects, such as organisational units, documents or IT systems shall be visualised too, ARIS Express offers suitable symbols. Corresponding diagrams, which use in addition to processes and functions various other symbols (documents, IT systems, risk see detailed notation on next page), are called Extended Event-driven Process Chains (eepc). Team SCOR used eepc to model especially SCOR model level 4 for a sample bike company. Event Organisational unit Person Document Activity Roll Entity IT System AND connector Database Product Risk XOR connector OR connector Figure 5 eepc: Notation Data model Benefit ARIS Express Data model can be compared with Entity-Relationship-Model (ERM) which is used for software engineering purposes. Data structures are visualised with the help of entities, their properties and relations. As you can see in the figure on next page there are special notation standards to visualise cardinalities in this ARIS Express element. Team SCOR used Data model to illustrate some central entities of the bike company, which are associated with selected sample processes, such as purchase order and production order. 13

20 Symbols Cardinalities Source Target Entity Primary key Entity Entity Source Cardinality: 1 Target Cardinality: 1 Attribute Foreign key Entity Entity Source Cardinality: 1 Target Cardinality: c Entity Entity Source Cardinality: 1 Target Cardinality: cn Entity Entity Source Cardinality: 1 Target Cardinality: n Entity Entity Source Cardinality: 1 Target Cardinality: 2.. Entity Entity Source and Target Cardinality not specified Figure 6 Data model: Notation IT Infrastructure Benefit An IT infrastructure gives information about following facts: Which software system is running on which hardware? In which network is the hardware located? Which network devices, such as switches or routers, are used for linking existing networks? Team SCOR used this ARIS Express element to make the sample bike company s IT infrastructure clear. IT System Hardware Network Network component Figure 7 IT Infrastructure: Notation 14

21 3.2.6 System landscape Benefit ARIS Express element system landscape shows which IT systems are used in a company. Furthermore IT systems and their corresponding domains can be visualised. As described for last ARIS Express element, Team SCOR used system landscape to describe the bike company concerning their IT systems. Domain IT System Figure 8 System landscape: Notation Free Diagram Team SCOR used free diagrams to make a textually described connection clear. As shown below various symbols are offered by ARIS Express. Please note: There is no connection in syntax (meaning of symbols) between different free diagrams. Figure 9 Free Diagram: Available Symbols 15

22 4 SCOR Processes I put my heart and my soul into my work, and have lost my mind in the process Vincent van Gogh

23 4.1 Structure of the SCOR Model This chapter is intended to describe the levels of the SCOR model on the one hand and structure of the actual SCOR Version 9.0, which was published by SCC in April Last topic covers both table of contents and used process notation applied throughout the entire SCOR model Levels of SCOR Model The SCOR model is a hierarchical model. 26 It consists of 4 levels, but only the first 3 levels are discussed in the SCOR model. Figure 10 Levels of SCOR model 27 Degree of concretion rises over different levels from top level over configuration level and process element level to implementation level. 26 SCC (2008a), Introduction SCC (2008c), p. 1 17

24 In the following characteristics of each level are described. 28 Level 1 Top Level 1 sets the basis of competition performance targets by defining the scope and content for the SCOR-model. There are following five process types: plan, source, make, deliver and return. Level 2 With the help of process categories companies implement their operations strategy at this level by choosing configuration for their supply chain. Level 3 This level give companies the possibility to fine tune their operations strategy. Therefore it decides on company s success and behaviour of competitors. Level 4 This is the point, where companies have to think about their individual operational sequences to achieve competitive advantage. As a result company specific implementation of SCM practices is the main function of this level. As well as level 4 is not in scope of the SCOR-model level 5 and 6, which are even not pictured in the graphic above, would break the definition of SCOR as a normative reference model. Nevertheless, organisations which want to apply SCOR-model successfully, will need to extend the model, at least to level 4. While level 4 contains tasks and level 5 activities which are developed from the tasks, level 6 describes appropriate instructions SCOR Version 9.0 Table of Contents Members of SCC aim to improve continuously their reference model to facilitate the use of the model in practice 29. Actual version 9.0 of the SCOR-model is the eleventh revision since Model s introduction. 30 It consists of 651 pages! After a short introduction, which covers amongst others SCOR-Model structure and SCOR Version 9.0 Changes, section 2 describes SCOR s performance measurement system. Metrics are presented according to their performance attributes (see Chapter Metrics and Benchmarking ). Section 3, which is the most comprehensive part, covers all relevant processes concerning a successful supply chain, from planning to returning products. Firstly, plan processes are described. After this, processes to source material, make and finally deliver products are described. Returning products also belongs to a supply chain these processes are presented afterwards. In the end of this section inputs and outputs are characterized. Another substantial part of the SCOR-Model follows in Section 4 Best Practices. 28 SCC (2008b), p. 7; Werner (2008), p. 49 f. 29 SCC (2008a), Summary SCC (2008a), Summary

25 The launching of the SCOR-Model Version 9.0 brought some changes, such as the new Special Applications section, which is described by SCC as follows: (It) allows special interest groups and project groups to present applications of SCOR that may be under development, not yet generally be accepted, or may require additional case studies or proof points. 31 An actual application is GREEN SCOR. In section 4 SCC presents a set of strategic environmental metrics. SCC follows the objective to provide an environmental accounting framework with the help of the SCOR-Model. Of course, this would have additional benefit SCOR notation SCC uses a consistent notation in their SCOR-model. Each process identification code consists of two parts, which gives information about process type respectively process category and concrete process at the same time. See example below. P: Plan S: Source Process Type Process Category M: Make M2.3 M1: Maketo Stock D: Deliver R: Return Be careful! This is just a sample of process types and process categories! M2: Maketo Order M3: Eng. to Order Figure 11 SCC standard notation The process number (in the example 3 ) indicates the concrete process. (e.g. Produce and Test ) There is also used a schema within each process category plan, source, make, deliver, return, which gives information about the idea of the process. This means that, for example, process M1.3 and M2.3 have the same idea, namely production and testing. They only differ in concrete products which are transformed in the particular process In this context that is M1 process category includes Make-To-Stock products whereas M2 processes deals with Make-To-Order products. 31 SCC (2008a), Introduction

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