Learning KPIs DB
1.
Value-added Employee Productivity ($k)
Value-added Employee Productivity ($k)
Definition
-Total product revenue less total material purchases divided by
total employees expressed in full-time equivalents. .
Formula
-VAEP = (Revenue – Material) / Full-time Equivalents
Process KPIs DB
1.
Supply Chain Response Time (Days)
2.
Upside Production Flexibility (Days)
3.
Total Logistics Management Cost (%)
4.
Cash-to-Cash Cycle Time (Days)
5.
Inventory Days of Supply (Days)
Supply Chain Response Time (Days)
Definition
-The time … (look up Source and Order Fulfillment Lead-time in
SCOR Glossary)
Formula
-SCRT = Source Lead-time + Orders Fulfillment Lead-time
Description
-This is measuring the responsiveness of the supply chain …
Impact upon business performance
-increase sales due to increased customer satisfaction (accurate
promise dates), customer retention, and attracting new customers
-improved relationships (better terms/conditions) with supplier base
-overall lead time reduction
Upside Production Flexibility (Days)
Definition
-The number of days required to achieve an unplanned sustainable
20% increase in production
Formula
-UPF =
Description
-This is measuring the responsiveness your organization …
Total Logistics Management Cost (%)
Definition
-The sum of supply-chain related MIS, Finance and Planning,
Inventory Carrying, Material Acquisition, and Order Management
costs. (See SCOR Glossary for definition of Each Aspect)
Formula
-TLMC = MIS+Finance+Planning+Inventory
Carrying+Acquisition+OrderMgmt Costs
Description
-This is measuring the cost of managing the supply-chain …
Impact upon business performance
-increase bottom line due to decreased expenditures
Cash-to-Cash Cycle Time (Days)
Definition
-Inventory days of supply + Days sales outstanding (AR) - Average
payment period for materials (AP). (i.e. the time it takes for a dollar
to flow back into the company after its been spent for raw
materials.)
Formula
-CTCCT = Inventory+Sales-Payment
Impact upon business performance
-increase cash flow
Inventory Days of Supply (Days)
Definition
-Total gross value of inventory at standard cost before reserves for
excess and obsolescence based upon annual averages for Raw
Materials, WIP, Plant FG, Field FG, field samples, etc. divided by
Average Daily Cost of Goods Sold (ASCOGS)
Formula
-IDS=Inventory/ADCOGS
Description
-capital unitizations
Impact upon business performance
-increased cash flow