Order Fulfillment Cycle Time - SCORĀ® OPERATIONAL DEFINITION Order Fulfillment Cycle Time is a continuous measurement defined as the amount of time from customer authorization of a sales order to the customer receipt of product. The major segments of time include order entry, dwell time for future dated orders, manufacturing, distribution, and transportation.
LEVEL 1 AND 2 DECOMPOSITION Order Fulfillment Cycle Time Customer Authorization to Order Entry Complete Order Dwell Time* Order Entry Complete to Start Manufacture** Order Entry Complete to Order Received at Warehouse Start Manufacture to Manufacturing Ship** Manufacturing Ship to Order Received at Warehouse** Order Received at Warehouse to Order Shipped to Customer Order Shipped to Customer to Customer Receipt of Order Order Received at Customer to Installation Complete * Used for future dated orders ** Used for MTO items
COMMON DATA SEGMENTATION FIELDS Common data segmentation fields for Perfect Order Fulfillment include MTO MTS Future Dated Orders Customer Sales Order Number Customer Ship To Location Ship Point Plant Item (SKU) # Customer ID Customer Channel ID
DEFECT ANALYSIS For the purposes of six sigma type analysis, an analytical unit is an individual customer order. A defective unit is an order cycle time greater than the committed cycle time. The number of defect opportunities is the total number of customer orders in the sampling period.
COMMON BENCHMARK DATA SOURCES APQC Supply Chain Council The Performance Measurement Group Manufacturing Performance Institute iCognitive