Excelling at On Time Delivery (OTD) and Manufacturing Quality Rating

Image of Custom Interface Team
Custom Interface Team

Two metrics which are very important to customers but without an industry standard are On-Time-Delivery and Manufacturing-Quality-Rating.


OTD – On Time Delivery

The On-time delivery performance refers to the ratio of customer orders shipped on or before the requested delivery date / customer promised date versus the total number of orders. This is usually expressed as a percentage and can be calculated for several measurement periods.

On time delivery (OTD) shows whether or not an organization is meeting its promised delivery times. OTD rarely refers to a specific date; it usually refers to a range of dates.

To have an outstanding On-Time-Delivery

  1. We forecast estimated demand, run MRP, order materials, and create a purchase order for the required materials.

    • MRP run or planning run is an engine which is used to fill the demand and supply gap.

  2. The materials are received, recorded, and put into our raw material stores area.

  3. An order was received, available inventory checked, and we determine when we can produce the order and promise customer delivery on a specific date.

  4. We then create and issue a work order to production.

  5. The materials are picked with care and moved to the production area.

  6. Inventory is yielded and quality confirmed so that products meet required specifications.

    • Yield refers to the percentage of non-defective items of all produced items and is usually indicated by the ratio of the number of non-defective items against the number of manufactured items. Yield = the number of non-defective items / the number of manufactured items.

  7. Per customer promised date, products produced are picked and delivered to the shipping dock where proper shipping documentation is prepared.

  8. Delivery is scheduled and truck arrives to take the finished goods for the delivery to arrive on-time and undamaged.

When all goes well, execution is perfect with a 100% On-time Delivery and most importantly, our customers are happy.

Custom Interface
Current On-Time-Deliveries (OTD)

97.40% YTD

 

Key metrics for manufacturing quality rating

Yield  - how many units pass final inspection at Custom Interface.  First pass yield would be how many units pass the customer’s inspection

Scrap Rate % - of units that fail divided by the total count. It can also reference the dollar value of raw materials that were damaged during the build process versus the total COGS for that time period.

Customer Complaints - also called Warranty Claims - Typically we want our customers to send a defective product back for analysis, but occasionally the customer will make the repair themselves because they need the harness immediately.  Keep in mind that there are occasions when damage is done by the customer, but this is managed by taking photos prior to shipping.

Supplier Defect Rate - The number of raw material components that are damaged at arrival versus total units shipped. 

Supplier Chargebacks - Credit against our balance for the value of something that was defective upon arrival.

Custom Interface
Current Manufacturing Quality Rating

99.53% YTD

 

We are very proud of our team who makes every effort to adapt to the constant changes to meet the highest wire harness manufacturing standards, OTD rate and manufacturing quality rating. From the point of design and assembly at the drawing board to the finished wire harness, our team goes through the step-by-step planning process. Each wire harness has a specific purpose and usually integrates into a larger electronic network. They understand that wire harnesses are indispensable and looking forward to building yours. If you are interested, take a moment to reach out and request a quote.

Request a Quote >

 

Leave a Comment

Blog posts

Related Articles.

Image of Custom Interface Team
Custom Interface Team

Is your wire harness flexible enough?

Designing a wire harness is simple, right? Just pick out an appropriate wire for your voltage and...

Read more
Image of Custom Interface Team
Custom Interface Team

Take a Tour of Custom Interface

"To build long-term relationships, we try really hard to say yes. We try to make it simple, and we...

Read more