Monitoring of lead time - Good KPI identification?

[Ed Panek]

Again Ill say, why do you want to measure what you want to measure? Why Why Why it to a root reason.

 

[qualprod]

Sorry for my delayed answers

Ninja, My answers in italic
When you identify (very specifically) what you want that indicator to be, and how you will use it...you'll likely come up with a number of ideas yourself in addition to those possibles posed above.
I´ll explain it a little bit more....
One of my main purpose is to improve the delivery time of our products to customers, for this, I started like this.
First, I want to measure how many days we spend in production , so that with this reference in mind, will be used to compare how well I´m improving my delivery time over the time.
When I say over the time, is while I´m implementing actions for improvements, e.g. to train operators, to change/repair machines for better performance, to improve communication of work orders, the approval of some activities and so on.

That is my need to set an initial reference so that based on that, I can evaluate if delivery dates are being improved.
I´m sure that once actions are implemented and have good results, I´ll set a
more trustworthy kpi and this be set on the processes on certain periods of time.

My initial question was in this direction, how to define a good reference if my products are very different.
I have a great variety of products, additionally some take more days than others, the same product is required in different quantities, so
that is the problem, I considered as an option the Ninja´s idea (early/late method).
Hope I´ve explained it clear.
Thanks

Bev
Can you tell us what starts the clock and what ends the clock?
for example start = PO acceptance from Customer and end = receipt of product by Customer.
Yes, Agree
The how do you intend to evaluate the metric? control chart, looking at a table of results? how do you intend to share it with your company?
Who is responsible for making improvements to the metric? do they agree?
The metric is to be evaluated in a monthly basis by using a control chart, this will be shared to all processes,
I´m in charge of that (my position is operation engineer) and one of my main tasks is to look for improvements of the processes, I´m under
the top management, all my duties are approved by him, the rest of managers agree on this.
Thanks

 

[Ninja]

It seems that there is a very simple desire being made very complicated.

You want to know lead time from the customer's point of view:
You outline your product realization process
- receive order
- enter order
- order given to production scheduling
- order scheduled
- .....and on and on until ...
- order ships

You choose only steps where you can get a date, or time and date.
You measure them for a while...say 50 orders over the next two months...or find a way to easily trap all of the data in useful form.
You now know current state.

While taking the above measurements, you also consider "what should it look like if all was perfect?"
You talk to the area owners (Order entry, scheduling, production, shipping, etc.) and come up with an ideal picture of steps and timing

Then you compare current state with ideal state
Then you decide which process(es) to speed up first...whether by simplifying, prioritizing, removing steps by automation, etc.

Then you measure it again and see if anything helped...

You can chart fixed items (order entry, hand-off to production, quality inspection, etc. in days or days early/late.
You can chart variable items (production time, packing time, etc.) in days early late, or % early/late.

This above is simple stuff, so I think I'm assuming your asking something more complex.

 

[qualprod]

It seems that there is a very simple desire being made very complicated.

You want to know lead time from the customer's point of view:
You outline your product realization process
- receive order
- enter order
- order given to production scheduling
- order scheduled
- .....and on and on until ...
- order ships

You choose only steps where you can get a date, or time and date.
You measure them for a while...say 50 orders over the next two months...or find a way to easily trap all of the data in useful form.
You now know current state.

While taking the above measurements, you also consider "what should it look like if all was perfect?"
You talk to the area owners (Order entry, scheduling, production, shipping, etc.) and come up with an ideal picture of steps and timing

Then you compare current state with ideal state
Then you decide which process(es) to speed up first...whether by simplifying, prioritizing, removing steps by automation, etc.

Then you measure it again and see if anything helped...

You can chart fixed items (order entry, hand-off to production, quality inspection, etc. in days or days early/late.
You can chart variable items (production time, packing time, etc.) in days early late, or % early/late.

This above is simple stuff, so I think I'm assuming your asking something more complex.

Thanks Ninja.
I understand perfectly what you said, is what I'm doing now, you are right, Is not too easy.
My idea is to give the Director a representative general number of lead time in days which include monthly average days for all type of products.
But have determined that maybe will not give me good information of that.
What I have to do is to separate by same type of product, quantity, line of production, so that I have a more precise numbers, and finally to have as references several led times instead of having just one.
Til now, still continue looking for ideas of what to show the Director a reference to compare while changes are made.
Thanks

It seems that there is a very simple desire being made very complicated.

You want to know lead time from the customer's point of view:
You outline your product realization process
- receive order
- enter order
- order given to production scheduling
- order scheduled
- .....and on and on until ...
- order ships

You choose only steps where you can get a date, or time and date.
You measure them for a while...say 50 orders over the next two months...or find a way to easily trap all of the data in useful form.
You now know current state.

While taking the above measurements, you also consider "what should it look like if all was perfect?"
You talk to the area owners (Order entry, scheduling, production, shipping, etc.) and come up with an ideal picture of steps and timing

Then you compare current state with ideal state
Then you decide which process(es) to speed up first...whether by simplifying, prioritizing, removing steps by automation, etc.

Then you measure it again and see if anything helped...

You can chart fixed items (order entry, hand-off to production, quality inspection, etc. in days or days early/late.
You can chart variable items (production time, packing time, etc.) in days early late, or % early/late.

This above is simple stuff, so I think I'm assuming your asking something more complex.

I understand perfectly what you said, is what I'm doing now, you are right, Is not too easy.
My idea is to give the Director a representative general number of lead time in days which include monthly average days for all type of products.
But have determined that maybe will not give me good information of that.
What I have to do is to separate by same type of product, quantity, line of production, so that I have a more precise numbers, and finally to have as references several led times instead of having just one.
Til now, still continue looking for ideas of what to show the Director a reference to compare while changes are made.
Thanks

 

[Ninja]

you are right, Is not too easy

FWIW...I said it WAS Easy. Been there, done that, many times. It is just not immediate.

still continue looking for ideas of what to show the Director

Surprising suggestion coming...
Why not ask the Director how he/she would like the data presented? Communication works well...