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Supply Chain KPIs
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Cycle Time for Order Fulfillment

Production Schedule Adherence

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Category:  
Operational

Measures the time taken to complete an order, from order receipt to delivery.

What it Measures ?

Time taken to complete order fulfillment.

Relevant StakeHolders 

Fulfillment Manager, Operations

Why it Matters ?

Reduces order cycle delays and improves efficiency.

In-depth Use Case / Real-world Example

A company manufacturing medical devices calculates Cycle Time for Order Fulfillment by tracking the entire process from receiving the order to shipping it out. For example, if an order takes 5 days from receipt to delivery, the cycle time is 5 days. Lower cycle times improve efficiency and help meet customer expectations.

KPI Definition

Business Value

Movement Direction

Sample Formula

Fulfillment Completion Time - Order Placement Time

Should Aim For
1
2
3
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Scrap and Rework Costs
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Labor Utilization Efficiency
Measures the efficiency of labor usage by comparing the actual output to the labor hours used.
Order Cycle Time
Measures the total time taken from receiving a customer order to delivery.
Line Stoppage Incidents
Measures the number of times production is halted due to machinery failures, material shortages, or other issues.
Transit Time Efficiency
Measures the efficiency of the transportation process by comparing the planned and actual transit times.
Outbound Freight Lead Time
Measures the time taken to ship products from the company’s warehouse to customers.
Inbound Freight Lead Time
Measures the time taken to receive goods from suppliers after shipment.
Production Plan Adherence
Measures the extent to which the production schedule is followed and completed on time.
Order Picking Accuracy
Measures the percentage of items picked correctly for customer orders.
Production Downtime
Measures the total time production is halted due to machine failure, maintenance, or other reasons.
First Pass Yield (FPY)
Measures the percentage of products that are manufactured correctly the first time, without defects.
Pick-and-Pack Cycle Time
Measures the time it takes to pick and pack an order from the warehouse.
Work-in-Progress (WIP) Inventory Trends
Measures the trends in inventory that is in the production process but not yet completed.
Return Rate (Defects/Quality Issues)
Measures the percentage of products returned due to defects or quality issues.
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