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Supply Chain KPIs
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Order Cycle Time

Production Schedule Adherence

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Category:  
Operational

Measures the total time taken from receiving a customer order to delivery.

What it Measures ?

Time from order placement to completion.

Relevant StakeHolders 

Order Management, Fulfillment

Why it Matters ?

Improves order processing efficiency.

In-depth Use Case / Real-world Example

A company manufacturing office furniture calculates Order Cycle Time by tracking the time from when a customer places an order to when it is delivered. For example, if an order is placed on day 1 and delivered on day 5, the cycle time is 5 days. Reducing order cycle time helps improve customer satisfaction and reduces the time for inventory turnover.

KPI Definition

Business Value

Movement Direction

Sample Formula

Order Completion Time - Order Placement Time

Should Aim For
1
2
3
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Scrap and Rework Costs
Measures the costs associated with defective products that need to be scrapped or reworked.
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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