Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

1.4.2 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.


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)

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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

  • 1.4.4 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 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 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).

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