1. Indicator Objectives

 To satisfy customer demand in terms of leadtime
 To make savings in transport costs through better forecasting
 To forecast the load

2. Measure and definitions

Customer satisfaction is measured by a "rate of service".

There are 2 RATES OF SERVICE :

1. / Rate of orders delivered on time to customer’s request (OTD-R On Time Delivery to Request)
2. / Rate of orders delivered on time to a promised date (OTD-C : On Time Delivery to Commit).

In general, it is the 2nd example that is used: OTD-C, or just "OTD".

3. Calculation rules

• Weekly tracking indicator
• The confirmation date corresponds to the exact date of departure from the factory.
• 1 order = 1 line in the planning
• The promised ship date must allow for delivery on the date promised to the client
• Calculation:
  • Performance index = ship date [1]-company commitment
  • OTD = (number of orders where the performance index <= 0) / (Total number of orders delivered in the week).

Now measure your own on time delivery rate and compare it against the scale above. Call us if you want to do better!

4. What are the clues to enhance the service rate ?

 The real delivery date given to the customer depending of tnhe actual work load : a visualisation information tool of the forthcoming load, (not obviously expensive nor complicated),
 Throughput time reduction in workshops and stocks,
 In-line operations installation,
 Order start-up time decrease,
 Purchase planification,
 Takt time increase by process parameters management,

5. Success stories with figures.

 Keep the work load under control with simple means
 In process decrease between merchandise reception and their control
 Workshop cleaning and productivity: example in assembly business
 Batch startup time reduction in production / assembly
 Takt time / production speed increase by process under control