What percentage of deliveries do you make, in full and on the delivery dates agreed with your customer?
 
Delivery of quality products on time and in full (OTIF) is a cornerstone of effective supply chains and is a key supplier selection factor for customers. A predictable, reliable production system can offer significant cost savings through the release of cash tied up in insurance inventory. This cash can then be used to reinvest in the equipment, ICT systems and training needed to make your overall business more competitive 
Key Issues
·         Customer delivery schedules must be a key driver for the business through the production schedule.
·         Your production schedules have to be managed at three levels:
o    long term for your business planning,
o    medium term for ordering your production materials
o    short term for customer deliveries
·         If you are to achieve your delivery targets OTIF, then all members of your supply chain must also commit to 100% OTIF deliveries to you.
·         Delivering 95% of items OTIF should be regarded as a failure to deliver
·         To meet the 100% OTIF target:
o    Items, as delivered, must meet all quality requirements and be free of any physical or environmental damage
o    Packaging must protect your products in your factory and in transit and should be environmentally acceptable
o    Delivery quantities from your suppliers should be negotiated by you, with your suppliers, based on their value, daily usage, storage requirements, shelf life and lead time
·         Good production planning and control techniques reduce the disruptions in production, making supply chains easier to manage and more predictable
o    Centralised computer systems (such as MRPII or ERP) that schedule, plan and control the delivery of parts, processing of materials and the dispatch of goods are helpful, but difficult to manage well due to the complexity of maintaining accurate information
o    Documentation, paperwork and data on computer systems must be accurate or your scheduling will be wrong and delivery targets will suffer.
o    Bills of materials should classify components as high, medium and low value items and also in terms of high, medium and low usage
o    Different processes should be used for planning, purchasing, scheduling and controlling different classes of materials through the supply chain
Factors for Success      
Factors to  Avoid
1)     Achievement of customer delivery schedules is a key measure of management performance.
2)     You should use a complementary range of production planning and control methods depending on the materials in use.
3)     Information and data on your computer systems must be at least 95% accurate
4)     Your senior management team must own the delivery and manufacturing schedules
1)     Allowing a disconnect between what the customer needs and the factory produces
2)     Managers over-riding the production planning and control processes rather than improving them.
3)     Packaging that is not fit for purpose and cannot be economically recycled
4)     Large computer systems full of inaccurate information
Who does this apply to?
Logistics management, operations management, everyone involved in manufacturing
Realisable Benefits
Retention of satisfied customers, who will probably provide more business. Reductions in stock levels due to increased production reliability, releasing reinvestment cash
Key buying factorsKey buying factors

Key buying factors

Understanding valueUnderstanding value

Understanding value

Measuring customer satisfactionMeasuring customer satisfaction

Measuring customer satisfaction

Improving customer satisfactionImproving customer satisfaction

Improving customer satisfaction

Quality standardsQuality standards

Quality standards

Delivering quality standardsDelivering quality standards

Delivering quality standards

Continuous improvementContinuous improvement

Continuous improvement

Deliveries (on time and in full)Deliveries (on time and in full)

Deliveries (on time and in full)