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

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.


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

  • 1.4.4 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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