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Question About On-time Delivery

Six Sigma – iSixSigma Forums Operations Manufacturing Question About On-time Delivery

This topic contains 4 replies, has 3 voices, and was last updated by  Mike Chambers 1 year, 9 months ago.

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  • #55874

    Chris Plaisier

    I am tasked to review our current OTD matrix. At the moment we are only monitoring the % of the orders shipped that are on time or late. We currently are not adding to the equation all of the orders we do not ship that are due. Ex. we are scheduled to ship 50 orders today, we have 50 orders that are late, we ship 27 orders due today and 3 orders from our “late” group. Our current equation 27/(27+3) would say we are at 90% OTD, does not display the fact we still have 47 jobs late. This matrix is not jiving with our OEE or other performance matrix’s we have running. Can I add the late jobs to the jobs due everyday or can I only count the late jobs once??

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    #201997

    Chris Seider
    Participant

    Well they may have designed the metric to update daily and with the technique you demonstrated, it will keep from double/over counting those that were late and not delivered (e.g. late ones that aren’t delivered aren’t in the denominator until they are shipped that day and then they are in the numerator and denominator).

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    #202002

    Strayer
    Participant

    Do you know how many orders you do not ship when they are due? If so, you can easily revise your matrix to include the relevant data. I once had a situation where on-time delivery data showed that customers nearly always got what they wanted, when they wanted it. But customers said otherwise. On investigation we found that customer service didn’t enter orders into the system until they confirmed that it could be shipped on time — something the computer system couldn’t do. It was a royal pain to change orders so they worked with the customer off-line and the real data was never captured.

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    #202006

    Chris Seider
    Participant

    @Straydog what a great finding.

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    #202010

    Mike Chambers
    Participant

    @gaishinmfg,

    I agree with @cseider and @Straydog. The subtlety that I would add is any metric should drive improvement. Given that, as a team, select the format/calculation that will help the organization best reduce late deliveries. I’m not one for meetings, but you might canvas the key players individually and bounce ideas off them. When you have a consensus, aggressively drive those late deliveries to 0!

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