Processing time performances

Processing time statistics

SPM documentation - April 5th 2011 – Written by Rémi Equoy

Introduction

Those statistic tools enable to measure processing time in the purchase/sales processes.

Most important milestones in the Purchase/Sales are:

Client's order receipt date
Customer order acknowledgment date
Purchase Order sent date
Real ship date
Physically receipt date
Goods availability date
Latest shipping date

Those milestones enable to define major processes :

1 to 2 / Order taking measures the number of days between client's order receipt date and latest order acknowledgment date.
2 to 3 / Purchase measures the number of days between latest order acknowledgment and PO sent date.
3 to 6 / Supplier chain measures the number of days between PO sent date and Goods availability date.

3 to 4 / Attributable to vendor: Number of days to ship goods

4 to 5 / Attributable to forwarder: Number of days to deliver goods

5 to 6 / Attributable to vendor: Number of day to close discrepancy (if exist)

6 to 7 / Store/Dispatch measures the number of days between Goods availability date and Shipping date.

The Customer order forecast enables to verify if the Requisition's estimated lead time are in concomitance with the time delay rules.

The Full Process enables to compute milestone 2 to 7. This is the Customer point of view.

The Synoptic enables to explain the reason of delay of delayed lines detected into the Full Process.

Standard granted time delay and processing time depends of the priority level:

Priority level	Order taking granted time delay	Purchase granted time delay	Supplier chain	Store/Dispatching granted time delay	Full process - Stock origin	Full Process - Vendor origin
Routine	2*	4*	to be advise	4*	6*	10 days* + supplier's lead time
Expedite	1*	3*	to be advise	3*	4*	7 days* + supplier's lead time
Critical	0	2*	to be advise	2*	2*	4 days* + supplier's lead time
AOG	0	0	to be advise	0	0	Supplier's lead time

Quotation's and Requisition's Estimated lead time don't include the order taking processing time.

IMPORTANT RULE: Into the Requisition, the estimated lead time becomes a due lead time when the customer order acknowledgment has been printed and sent !

From this moment, the Expected shipping date is computed by using with the Customer Order Acknowledgment date and the Estimated lead time saved in the Requisition.

If more than one customer order acknowledgment have been printed and sent, the latest date will be in used.

By applying this rule, here is the commitments due to a Customer:

Priority level	Stock origin	Vendor origin
Routine	4*	8 days* + supplier's lead time
Expedite	3*	6 days* + supplier's lead time
Critical	2*	4 days* + supplier's lead time
AOG	0	Supplier's lead time

IMPORTANT NOTE

(*) The number of days granted will be worked out in working days: The calculation method exclude automatically Saturdays and Sundays to work out the real number of days to process.

SUPPLIER's RULE:

The expected ship date becomes a contractual ship date when the PO's acknowledgment is received.

The forwarder will be audited by using the number of days allowed to forward.

The supplier is responsible of the number of day of delay to ship AND the number of day to close discrepancy (except if discrepancy is not attributable to vendor).