| Of all the factors that influence a customer's desire | | | | of the several factors affecting performance. These |
| to remain loyal to a manufacturer or job shop, the | | | | include: |
| greatest of all is, perhaps, consistent on-time delivery | | | | |
| of their orders. Throughout the supply chain, on-time | | | | 1. Material Lead Time: What is the history of vendor |
| delivery is vital to the continuation of the | | | | shipments to you? How much time must you allow |
| manufacturing effort--should one domino in the | | | | to build in tolerances for parts and material delivery |
| system go down, the rest are sure to follow in suit. | | | | that may take longer than usual? Is the material |
| However, today it is not enough to merely know | | | | subject to delays due to unstable supplies? |
| you are on-time, but it is also important to know just | | | | 2. Process Time for Each Step: How does the job fit |
| how much you are on-time. Indeed, supplier | | | | into the various jobs that surround it in the schedule? |
| performance has never been more crucial to | | | | How long will the breakdowns and set-ups take to |
| manufacturing success than it is today. Factors such | | | | perform, and then how long will the processes take |
| as outside processing, sourcing from suppliers in | | | | in actual production time? |
| low-cost countries, extended supply chains due to | | | | 3. Outside Processing: Are there any off-site |
| globalization, unstable supply markets as well as a | | | | processes that must be made in the production |
| general supply risk, all conspire to impede on-time | | | | sequence, any outsourcing that must be completed |
| delivery. | | | | before the job is finished? What is the delivery |
| To help ensure that you, as a link in the | | | | performance history of the outsourcing operation? |
| manufacturing supply chain, are doing everything in | | | | 4. Shipping Transit Time to Customer: Are there any |
| your power to produce on-time delivery, enterprise | | | | special packaging/pallet requirements that must be |
| resource planning (ERP) software is developed to | | | | prepared for the shipment? How reliable is the |
| easily and instantly process several layers of | | | | shipper being used for the delivery and what is the |
| production data for the improvement of | | | | standard transit time? |
| performance. In a highly competitive marketplace | | | | With this information input into an ERP software |
| such as that faced by manufacturers, supply chain | | | | system, productive analyses can be made on a daily |
| optimization is a key operating benchmark of the | | | | basis regarding on-time delivery performance. As a |
| truly flexible, adaptive company. In addition, with | | | | result, the enterprise can be adjusted to allow for |
| nearly 80% of the cost to manufacture flowing | | | | any predictable (or even unexpected) delays in |
| through the supply chain, a manufacturer or job shop | | | | process, and in turn produce more consistently |
| cannot ignore the value of supply and they must | | | | reliable promised delivery dates. Ultimately, by |
| constantly resolve any weaknesses in their own | | | | following stringent observation of both internal and |
| on-time delivery performance. | | | | external performance measurements, your own |
| A key metric for a company looking to enhance their | | | | performance in as a link in the supply chain becomes |
| on-time delivery is the daily visibility and measurement | | | | a source of pride, rather than a source of excuses. |