Re: Performance metrics

Date: Fri Aug 01 1997 - 21:41:32 EEST


 You wrote:
              If on-time delivery is the measure, then it requires turning
              away work with unreasonable due dates and possibly not
              maximizing the throughput potential of the equipment. These
              are not options where I work.

         If you measure on-time delivery with respect to an available-to-
         promise date, (not customer request date, rather a first-available
         due date based upon your production constraints) it is definitely
         an important measure of your customer service level, and probably
         should be measured. It might also be an indirect measure of set-
         up efficiencies, defective runs and restarts, as well... as long
         as your production constraints are realistic/accurate.

         You might want to look at either: a) value of raw material on hand
         at any time or b) raw material inventory turns. They are balance
         sheet issues, but they let you know if you're wasting too much
         cash on raw material that you don't need (yet).

         All production issues really are balance sheet issues at some
         point. The objective should be to measure the "right things" that
         have the most impact on total cost/income. Continuously improve
         those metrics to an agreed upon acceptable level that demonstrates
         success for your shop.

         Greg Weisenborn
CFT Consulting, Inc.
Supply Chain Management Group
Sarasota, FL

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