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09/30/2011 10:11 AM
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In a lean company, what is the indicators used to value its improvement of supplychain?
Stock turnover, stock value, or some other indicators?
What is the expected level for those indicators?
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09/30/2011 12:44 PM
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The supply chain is just an extension of the value stream that crosses company boundaries.
Look from the perspective of the customer / user of whatever you are bringing in.
- What would help their process flow more smoothly, fewer disruptions, enable them to serve their customers better?
- What would allow the customer process to be more flexible?
- What would the customer process like to be able to do for THEIR customers that, today, they cannot? What about the supply chain is keeping them from doing it?
If you look at things from that perspective, the indicators you want should emerge.
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09/30/2011 01:52 PM
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And the one measure you want to avoid is something like "Purchase Price Variance" where one is not taking lead time, quality, pipeline inventory or anything else into account.
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10/07/2011 01:07 PM
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Hi ,
If a Purchasing Manger is reporting to GM in a lean company, which should be included?
Could you elobrate ?
Thanks.
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10/07/2011 05:23 PM
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To add to what Mark said:
The measure is Value Stream Profit.
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10/11/2011 03:09 PM
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Mark, you'll find as many sets of metrics as you will find consultants and authors. But, to keep it simple, may I suggest the following:
-Level of manufactured and purchased materials inventory relative to total sales
-Total cost of production and procurement relative to total sales
-Lack of materials availability to actual needs, not due dates
-Absolute number of defects
Of course, the goal in all of these is ZERO, and such perfection will likely never be achieved. What's important is measuring progress toward the goals (e.g. Was performance today better than yesterday?), identifying root causes for lack of improvement, and taking permanent corrective actions.
I too would be interested on the suggestions of others in this forum.
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10/13/2011 03:50 PM
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HI,Don,
Thanks for your input.
My email: lintao9166@hotmail.com. Hope can echange opinions furture!
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01/19/2012 05:08 PM
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I'm interested in keeping this thread going if anyone has more to add.
We are using multiple metrics that may or may not be the most conducive to managing a lean supply chain. There are 7 total.
On time delivery
Scrap dollars
Number of Dock to stock items
LTA's
Inventory turns
# of descrepancy notices
# of suppliers
I would like to know some opinions.
Thanks
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01/20/2012 12:26 PM
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Hello, I am interested in learning how you measure on time delivery.
Do you allow any leeway? Do you count early shipments as not on time as well as late. We have studied that metric and found emphasis on early to be of as much benefit as late.
I understand # of suppliers but how do you effectively manage that. Do you have supplier criterion to select who stays and who goes?
I am really tagging onto your thread to bench mark some of what we are doing.
Also, if this is supplier management isn't scrap dollars an operational metric?
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01/30/2012 03:36 PM
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Hi all,
To add what Kaye mentioned, what time is using in OTD, time of delivery, time of arrival ,or time of doing goods received?
As we are on the way to lean, there is some scraps, and we have to do quality check, thus there is a period for quality check ,how do you mange to do with this period, what is your benchmark for leadtime.
Thanks.
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01/30/2012 03:36 PM
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HI Kaye,
For our current supply base. wo are following duo-sourcing for same merchandise but different items.
We take quality as our first criterion, and then quotation and leadtime, soem times we do trade off in leadtime and quotation.
SO we can easily get feedback from purchaser or system for the criterion and maek decisions for supply base.
Hope this can be help.
Mark
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08/31/2012 10:07 AM
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The time of arrival is the factor that needs consideration in case of OTD. And in addition, if the order gets delayed by the 3rd party then the OTD has to be marked as delayed in case the 3rd party is hired by you. In case the customer is associated or has hired the 3rd party, then you can mark your OTD to be on time.
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