KPI Development Methodology – Example Material Availability
{"Image DocumentName": "KPI Development Methodology \u2013 Example Material Availability", "Image ImageDescription": "Elements of KPI. Primary owner- Suppliers\u2019 Material Management and Brands\u2019 Purchasing. Method \u2013 Waterfall Chart, Trend Analysis. Mgmt Influence \u2013 Sub-tier suppliers, Planning. Type of Indicator \u2013 Leading. Potential Causes \u2013 Force Majeure, Cost Pressures, Incorrect or poor data inference. Comments \u2013 Impact to working hours occurs when material is not available and then a catch up schedule is introduced to match revised availability. Steps to take. Establish % flexibility of production in contract. Establish material lead times. Establish % material to be held in buffer/safety stock. Establish material delivery plan. Track performance to plan. Measure results using number of units short of plan and time to recovery with and without over time. Determine course of action keeping in mind elimination of excessive working hours. Material shortage begins to drive need for additional work hours.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}