Benchmarking Delivery vs. Engineering & Design

Marc

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From: ISO Standards Discussion
Date: Wed, 29 Mar 2000 07:22:26 -0600
Subject: Re: Benchmarking: Delivery Practices /../Coffelt/Gladstone/Hartman

From: dhartman

PHD, Inc. has for years been driven by the policy that we will "Provide the customer what they want, when they want it.". I have only been here for 5 months and am meeting with the Purchasing Manger and Buyers on a monthly basis to discuss vendor-related quality and delivery issues. One of the things that I noted at the end of last year was the fact that we were expecting a >90% acceptance rate at in-coming inspection from our vendors, but only a >80% on-time delivery rate. And guess what, the biggest problem we face in meeting our commitments for delivery to our customers is driven by vendor delinquency.

As of the beginning of this year, we have notified our key suppliers (~80% of our purchase dollar value) that since delivery to our customer's is a driving force within our company, we are expecting to finish this year with those key suppliers meeting a >90% on-time delivery rate.

But, we have also found that this forces us to perform some introspection regarding the accuracy of engineering and requirements data being provided to the supplier, the accuracy of our planned need by date, and our commitment to developing long-term relationships with these suppliers. We have in-fact visited certain suppliers in an effort to help them determine their constraints, and develop methods to eleviate these roadblocks.

All of these steps cost money, and therefore require commitment of upper-management. But in the first 3 months of this year, these steps have raised our overall vendor on-time delivery rate from 79% (12/99) to 88% (3/2000). And we are delivering more of our product on-time to our customers.

David Hartman
 
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