Intended learning outcomes: Differentiate between the indicators scrap factor and yield factor. Present the indicator complaint rate.
Performance of logistics, operations, and supply chain management can have an impact, although a rather low impact, on indicators in the target area of quality; for example, on scrap factors and complaint rates of all kinds. The causes can be many and difficult to pinpoint. They may even be insufficient in quality of information.
Complaint rate and scrap factor in Figures 1.4.2.1 and 1.4.2.2 are related. The source of a complaint may turn out to be a cause that, if discovered sooner, would have entailed scrap. Scrap can lead to supplier complaints. The yield factor is complementary to the scrap factor. Hence, for a given reference object, the scrap factor plus the yield factor is equal to 1.
Fig. 1.4.2.1 The indicators scrap factor and yield factor.
Fig. 1.4.2.2 The indicator complaint rate.
Video (not yet available)
[kml_flashembed movie="https://opess.ethz.ch/wp-content/uploads/elements/CV_142.swf" height="75%" width="100%" /]Recap
The animations on the following pages show the Performance Indicators in the different Target Areas.
Click on the names of the indicators to get the accordant details.
Course section 1.4: Subsections and their intended learning outcomes
1.4 Performance Indicators and Performance Measurement
Intended learning outcomes: Present the basics of the measurement, meaning, and practical applicability of logistics performance indicators. Describe performance indicators in the target areas of quality, costs, delivery, and flexibility. Produce an overview on performance indicators of the primary entrepreneurial objective.
1.4.1 The Basics of the Measurement, Meaning, and Practical Applicability of Logistics Performance Indicators
Intended learning outcomes: Identify central problems in terms of the meaning and applicability of performance indicators in practice.
1.4.2 Scrap Factor, Yield Factor, and Complaint Rate — Performance Indicators in the Target Area of Quality
Intended learning outcomes: Differentiate between the indicators scrap factor and yield factor. Present the indicator complaint rate.
1.4.3 Stock-Inventory Turnover, Work-in-Process-Inventory Turnover, Work Center Efficiency, Capacity Utilization, and Administration Cost Rate — Performance Indicators in the Target Area of Costs
Intended learning outcomes: Present the performance indicators stock-inventory turnover, work-in-process-inventory turnover, work center efficiency, capacity utilization, and administration cost rate.
1.4.4 OTIF, Fill rate, Customer Service Ratio, Delivery Reliability Rate, Lot Size, Capacity Utilization, Order Confirmation Time — Performance Indicators in the Target Area of Delivery
Intended learning outcomes: Present performance indicator fill rate, also called customer service ratio, or OTIF (on-time and in-full). Identify the performance indicators delivery reliability rate, batch size or lot size, capacity utilization, value-added rate of lead time, variance in work content response time and order confirmation time.
1.4.5 Bid Proposal Success Rate, Order Success Rate, Breadth of Qualifications, Temporal Flexibility, Supply Chain Flexibility, Supply Chain Adaptability, Overall Value at Risk (VaR) — Performance Indicators in the Target Area of Flexibility
Intended learning outcomes: Present the performance indicator bid proposal success rate, order success rate, breadth of qualifications, and temporal flexibility. Describe the SCOR indicators upside supply chain flexibility, upside supply chain adaptability, downside supply chain adaptability, and overall value at risk (VaR).
1.4.6 Cash-to-cash cycle time and RONA — Performance Indicators of the Primary Entrepreneurial Objective
Intended learning outcomes: Present the performance indicator cash-to-cash cycle time and return on net assets (RONA).
