CHAPTER TWELVE
Measurements for the Logistics Department
THE LOGISTICS FUNCTION IS composed of production scheduling, purchasing, materials handling, and distribution. These areas are all central to the smooth functioning of a company's production processes. A failure in any of these areas can severely affect or even halt production, so this is a prime area in which to set up and maintain a rigorous system of measurement tracking. The 28 measurements described in this chapter are intended to address the key operational aspects of logistics and should be measured on a trend line to ensure that management can spot operational difficulties as soon as they arise. The measurements discussed are:
| Production Schedule Accuracy Economic Order Quantity Number of Orders to Place in a Period Economic Production Run Size Raw Material Inventory Turns Raw Material Content Finished Goods Inventory Turns Obsolete Inventory Percentage Percentage of Inventory > XX Days Old Percentage of Returnable Inventory Excess Inventory Index Inventory Accuracy Percentage of Certified Suppliers Electronic Data Interchange Supplier Percentage Distribution Turnover Supplier Fill Rate On-Time Parts Delivery Percentage | Purchased Component Defect Rate Incoming Components Correct Quantity Percentage Percentage of Actual Payments Varying from Purchase Order Price Percentage of Purchase Orders Issued below Minimum Dollar Level Proportion of Corporate Credit Card Usage Percentage of Receipts Authorized by Purchase ... |
