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.
Logistics, operations, and supply chain management have a direct effect on the target area of delivery. The performance indicators in Figure 1.4.4.1 and Figure 1.4.4.2 are direct measures of objectives.
Fig. 1.4.4.1 The performance indicator fill rate, customer service ratio, or OTIF (on-time and in-full)
Fig. 1.4.4.2 The performance indicator delivery reliability rate.
The next performance indicators are connected with lead time. For terms, definitions, and arguments, see Sections 1.2.1, 1.2.3, and 1.2.4.
Fig. 1.4.4.3 The performance indicator batch size or lot size.
Fig. 1.4.4.4 The performance indicator capacity utilization.
Fig. 1.4.4.5 The performance indicator value-added rate of lead time.
Fig. 1.4.4.6 The performance indicator variance in work content.
And, finally, there are two performance indicators in Figure 1.4.4.7 and Figure 1.4.4.8 for data and control flow.
Fig. 1.4.4.7 The performance indicator response time.
Fig. 1.4.4.8 The performance indicator order confirmation time.
Additional performance indicators may reflect the time required for product design or maintenance time of the production infrastructure.
The SCOR model contains the following performance indicators in the area of delivery. The first concerns the goal of high fill rate, the second the goal of short lead times.
- Perfect order fulfillment: The percentage of orders meeting delivery performance with complete and accurate documentation and no delivery damage. This includes all items and quantities on-(customer’s)-time, and documentation.
- Order fulfillment cycle time: The average actual cycle time consistently achieved to fulfill customer orders. For each individual order, this cycle time starts from the order receipt and ends with customer acceptance of the order.
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).
