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Metric Detail (Example) Order Fulfillment Cycle Time SR-01 DEFINITION REASON FOR METRIC CALCULATION DATA ELEMENTS SOURCE DATA GAPS FREQUENCY Average actual cycle time consistently achieved to fulfill customer orders. For each individual order, this cycle time starts from the purchase request placed for an order and ends with date of customer acceptance of the order. Cycle time improvements have been linked to reduced costs, reduced inventories, and increased capacity. Having to compensate for a long cycle time drives a need for increased inventory. An increased inventory increases the days of supply; increased days of supply lowers inventory turns. Obviously, an increased inventory raises materiel costs in the supply chain. Order Fulfillment Cycle Time is a top level measure of the strategic responsiveness of the supply chain; it is also a point of comparison to work towards cycle time reduction. Order Fulfillment Cycle Time = [Sum Actual Cycle Times For All Orders Delivered] / [Total Number Of Orders Delivered] Expressed in days. As shown in the example, the sum includes the elapsed time between the date the purchase order is assigned and the date the item is received. Currently, OFCT is measured as the time from the release of the purchase order to the time the order is received at facility inbound logistics. However, OFCT is commonly defined as the sum of the source cycle time and the delivery cycle time. That is, from purchase request until it is delivered to the end user, excluding non-value add time. In our case, Source Cycle Time to Primary Inventory is the time from purchase request to the time the purchase order is released + time until the order is received at facility inbound logistics; and Delivery Cycle Time is the time from order receipt at the VA facility until it is delivered to user, currently only measured to the primary inventory. IFCAP • Item receipt time-stamp is not regularly recorded • Initial requirement date is not regularly recorded Monthly PurchaseOrderNum SupplyStatus DatePoAssigned PoDate OriginalDeliveryDate DateReceived LineItemIDNum QtyReceived XXX-0U8570 Transaction Complete (Amended) 7/8/2010 7/8/2010 7/13/2010 7/14/2010 1 1 XXX-0U8570 Transaction Complete (Amended) 7/8/2010 7/8/2010 7/13/2010 7/14/2010 2 2 XXX-0U8570 Transaction Complete (Amended) 7/8/2010 7/8/2010 7/13/2010 7/14/2010 3 1 XXX-A02051 Partial Order Received (Amended) 7/14/2010 7/14/2010 8/14/2010 8/18/2010 3 1 XXX-A02051 Partial Order Received (Amended) 7/14/2010 7/14/2010 8/14/2010 8/18/2010 4 1 XXX-A02051 Partial Order Received (Amended) 7/14/2010 7/14/2010 8/14/2010 9/7/2010 4 1 XXX-P02854 Transaction Complete 8/30/2010 8/30/2010 9/9/2010 9/15/2010 1 6 XXX-P02854 Transaction Complete 8/30/2010 8/30/2010 9/9/2010 9/15/2010 2 4 XXX-P02854 Transaction Complete 8/30/2010 8/30/2010 9/9/2010 9/21/2010 2 2 © 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Supply Chain Perf. Mgmt. at VA | Slide 18 | 28 March 2012
Table of Contents VA Supply Chain Transformation SCOR Baseline Supply Chain Performance Metrics Prototype Supply Chain Dashboard Supply Chain Performance Management Framework © 2010 Supply Chain Council. ALL RIGHTS RESERVED. | Supply Chain Perf. Mgmt. at VA | Slide 19 | 28 March 2012
Page 1 and 2: Supply Chain Performance Management
Page 3 and 4: We have an obligation to provide as
Page 5 and 6: Table of Contents VA Supply Chain
Page 7 and 8: The existing VA supply chain manage
Page 9 and 10: Understanding organizational supply
Page 11 and 12: The Supply Chain Maturity Assessmen
Page 13 and 14: The Supply Chain Maturity Assessmen
Page 15 and 16: Performance metrics will capture ho
Page 17: Performance Management Framework: T
Page 21 and 22: Prototype Dashboard Data Processing
Page 23 and 24: Reports will be transmitted using v
Page 25 and 26: The dashboard gives managers at all
Page 27 and 28: We have the metrics; we have the da

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