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Performance Measurements
Part 5 of 6


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Lead Times

delivery time to customers
setup reduction trends
in-house transit time
supplier delivery performance
throughput times
work in process investment
performance to MPS
performance to FAS
ratio of promised customer delivery lead time to cumulative
production lead time
• administrative process times.

Responsive After-Market Service

number of hours of field service training
average response time to service calls
time to repair
availability of spare parts
warranty expense
overstocked field supplies.

Customer Satisfaction and Responsiveness

average customer response time
reduction in customer response time
number of complete items delivered on time
time from customer's recognition of need to delivery
quoted lead time
customer order processing time
time from receipt of order to start of manufacturing
number of customer promises met
percentage of customer orders shipped on customer's request date
customer returns, complaints
backorder rate
degree of satisfaction with complaint resolution
number of customer partnerships established
number of certifications received from customers
enhanced customer value, via added product features or reduced
costs.

Product and Process Design

time from idea to market
rate of new product introduction
percentage first firm to market
number of engineering changes after design
reduction in new product introduction lead time
new product sales revenue as a percent of total sale revenue
project completion cycle times
number of errors found during design review and evaluation.

Manufacturing Planning Process

• master schedule items achieved per week
• final assembly schedule items achieved per week
• material requirement plans achieved per week
• manufacturing orders released on time
• data accuracy of inventory, bills of materials, routings, and forecast
• material and tooling availability
• MPS on-time performance
• number and types of changes made to MPS.

Procurement Process

average procurement cycle time
on-time performance of deliveries
reduction in purchasing lead time
purchase orders released on time
reduction of supplier lead times
purchase order errors
downtime due to shortages
excess inventory
percentage of parts from certified vendors.

Manufacturing Process

reduction of manufacturing lead time
percentage queue time in manufacturing lead time
percentage value-added time in manufacturing lead time
shop orders completed on time
manufacturing cycle times
unscheduled machine downtime
number of past due operations
yield and scrap rates
transactions per person.

Management

net income/number of employees
total sales/number of employees
net income/total direct labor payroll
net income/total factory payroll
total earned hours direct labor/total factory payroll.

To Be Continued


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