The data in the attachement is based on our dispatch records for an order.
A problem cropped while I was trying to do the delivery performance analysis @ our company.
We stated in our acknowledgement order that we would supply the order qty by 25/11/2003.
However, the above attachement shows that we have been supplying in part quantities at a time which was not mentioned in our acknowledgement.
What would be the delivery performance of this supplier?
If the item is not a critical item would that change the way we evaluate the delivery performance?
When I put up this as one of the probable improvement projects. It was met with stiff resistance with an explanation as below:
· Our delivery performance is satisfactory because we have managed to deliver 60% of the ordered quantity before the agreed on date and the delay is only for 40%.
How would you rate the delivery of such a case as above? I would like to know how you rate such a case. I would for some input from all you experienced folks out there.
...Our delivery performance is satisfactory because we have managed to deliver 60% of the ordered quantity before the agreed on date and the delay is only for 40%.
Hello Shiv,
Unless anything else has been agreed with the customer that would be considered as a 60% delivery precision the way we see things here. In other words, we deem it just as you do. We do however regard the result a bit differently:
They say the delay is only 40%??? Only??? A 60% delivery precision would be considered abysmal here. What about the impact at the customer? Have they expressed any opinion about this?
I've seen lots of differnet ways for companies to measure it. We measure on-time delivery (OTD) on ourselves as 100% of the order shipped on-time, the most stringent way. If the customer ordered 1000 pieces, and we shipped 900 on-time and 100 a week late, our OTD would be 0% for that order, not 90%. After all, the customer wanted 1000 pieces on the due date, not 900.
But, as Claes said, even if you buy the 40% late definition, this is nothing for the vendor to be proud of. Sounds like they need an attitude adjustment or else they will not be in business too long unless all of their competition is even worse.
__________________
Mike S. ("Gun Nut")
And they ask me why I drink....
Unless anything else has been agreed with the customer that would be considered as a 60% delivery precision the way we see things here. In other words, we deem it just as you do. We do however regard the result a bit differently:
They say the delay is only 40%??? Only??? A 60% delivery precision would be considered abysmal here. What about the impact at the customer? Have they expressed any opinion about this?
/Claes
Here I go again, agreeing with Claes - must be because of the holiday season
If I had a supplier with "ONLY 40% delay" they may not be a supplier much longer. Anything less than 100% on time delivery is unacceptable. I may listen to the excuses once but they had better come up with a really good corrective action to ensure it didn't happen again.
Now it appears I have my work cutout to explain why the line of thinking prevailing here at our end is wrong.
Well, in spite of the fact that we slashed the "only 40%" statement you are in no way unique. It's hard to believe, but such figures are not unheard of. Besides, there is another way to look at it:
You have a phenomenal potential for improvement and thereby also a similar opportunity to increase your profit. I'm willing to bet that that appeals to your colleagues...
Delivery performance
A 60% delivery precision would be considered abysmal here. What about the impact at the customer? Have they expressed any opinion about this? 
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