Question About On-time Delivery

This topic has 4 replies, 3 voices, and was last updated 2 years, 9 months ago by Mike Chambers.

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November 21, 2017 at 11:32 am #55874

Chris Plaisier
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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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November 21, 2017 at 11:36 am #201997

Chris Seider
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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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November 22, 2017 at 5:24 pm #202002

Strayer
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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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November 25, 2017 at 12:24 pm #202006

Chris Seider
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@straydog what a great finding.
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November 27, 2017 at 6:49 am #202010

Mike Chambers
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@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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