I frequently spot telltale signals of what needs to be addressed while working with firms that are looking for on-time delivery performance more easily (delivering on time with blood, sweat, and tears are not sustainable).
Here are listed the top 7 mistakes that you need to avoid for your on-time delivery performance.
Do you get caught out by lower capacity during holiday periods?
Any company that permits its employees to take vacation time during the school holiday season shouldn’t be overly surprised by this. This problem inspired me to write this essay because I’ve recently received several phone calls from potential clients asking about their computer systems in relation to this problem. They had neglected to model their capability in accordance with their expectations for the holiday.
During these busy holiday seasons, a reasonable rule of thumb is to reduce the number of employees available by 20%. (Compared to non-holiday periods). It will be simpler to achieve on-time delivery promises and more effective to schedule services, projects, and manufacturing if your capacity model more properly accounts for your holiday seasons.
Your company’s capacity model is influenced by a lot of variables; if you need assistance, consult The OTIF Improvement System.
Do you monitor the ‘health’ of the final step in your process?
In response to the remark about “blood, sweat, and tears,” tracking the last stage of your process is a fantastic way to gauge how easily your company performs in terms of on-time delivery. Your company may provide its goods and services on time while still experiencing varied degrees of stress.
You can quickly tell how effective your entire system is at delivering on time if you see that the initial stages of the process are relatively uncomplicated and that levels of stress and strain rise as you move through each phase in the process.
You can improve by being aware of any mistakes made at each stage of the process. Another simple technique to identify certain problems for additional study is to have a talk with the person in charge of the last stage.
Your process’s final step serves as an excellent barometer for the overall system’s health.
Is the first step in your ‘delivery’ process getting monitored and measured?
How frequently does your team evaluate and measure the effectiveness of the first step, taking a look at the other end of the delivery process? One issue that is challenging to resolve later in the process is starting late.
That would be a nice experiment to run in your company to redistribute resources so that the first process step starts promptly. Naturally, you shouldn’t try to do this at the expense of your company, but check if you can improve your on-time delivery record by making this one tiny adjustment.
Does your team get ‘faked out’ by on-time delivery metrics?
Over the years, I’ve encountered numerous teams with various methods for gauging productivity. Their techniques ranged from speculating to measuring just a portion of their process (yep, not even taking a meaningful look at the process’ last phase!).
The contradiction between the OTIF (On Time in Full) and DSA (Delivery Schedule Adherence) techniques is one of the issues I frequently observe. In order to get points in the OTIF game, you must deliver every order on time and on the correct day. DSA bases its calculations on the proportion of items that have been delivered on time for each order.
My argument is that if your team settles for a DSA-type score, they may settle for a subpar performance. If you find yourself in this predicament, my recommendation is to take the hit and work with the harder score. From there, with the proper perspective, you can create your action plan and enhance OTIF.
I performed this conversion while serving in one of my operations management responsibilities, and it appeared that our factory’s performance fell from 76% to 22%. While maintaining our performance, we adjusted our expectations for the degree of service we provide to our clients.
Are your teams neglecting the housekeeping of your ERP system?
To manage their order books, most businesses use some type of computer system. An ERP (Enterprise Resource Planning)-style system performs this task for the majority of industrial organizations. Whatever system you employ in your company, needs to be routinely maintained, especially in terms of data.
When spreadsheets—or, worse yet, handwritten lists—appear to take the place of system-capable functions, there is a problem with the data or the system’s design. Finding improvement opportunities and enhancing the operation and performance of your computer system can be accomplished by identifying these problems and tracking them back to their root causes.
Follow these breadcrumbs and approach the problems one at a time, unless there is something seriously wrong with your computer system. When some time has passed, if you see any general flaws in your company, make sure to address those as well.
Spending less time on system workarounds will free up more time for you to focus on the proper process tasks that will improve the on-time delivery performance of your company.
Does your team have an effective routine?
Continuing from the previous point, many teams object to having a routine that specifies certain periods of their working day (or week or month). Routines are sometimes thought of as something that only schoolchildren do, not adults (yes, this is the reaction I often get from businesses that are struggling – not just with their on-time delivery performance). A good routine makes managing the whole thing much simpler and helps teams synchronize. It also improves clarity about process-supporting activities.
It is really simple to establish a routine for your company, and a good place to start is by analyzing the causes of your crises.
There is a significant likelihood that any issue you suffer resulted from an earlier event that didn’t get done in a timely manner. You have the start of your routine if you can recognize these flaws. It can turn into a crucial business document by including additional elements in your routine. Responsibility, deliverables, and a mention of your standard operating procedures could all be included in these adjustments.
Avoiding crises is a fantastic strategy to stop wasting money and put it into initiatives that will help your company grow.
Do you plan on there being 35 days in a month?
The final issue I want to bring up in this post is connected to many of the others I have brought up in the first six issues. This is it.
The likelihood that you will deliver on time increases with the frequency at which you measure your on-time delivery position.
Your financial systems are likely to use some type of accounting period to measure the performance of whatever you deliver. This is often connected to the work month. Looking at the month as a whole is OK as long as daily performance is still taken into account and handled.
The team may experience a false sense of security (“Phew, we made it out of last month’s production, let’s catch our breath!”) if the end of the month is the only thing you think about. Projects with long lead times and exam revision sessions in school are comparable. Many people will take advantage of this pause to let up on their performance if it is thought that it will be a while before it is examined.
Intelligent teams will use this time to gradually complete the orders, projects, and tasks they must complete. By choosing this path, you may avoid wishing there were 35 days in a month (as one struggling client informed me! ); the output will be clearer and simpler to control. You may strive towards successful weeks, months, and years if every day is productive.
This final strategy can significantly increase your on-time delivery performance if combined with an efficient routine, a completely functional computer system, an efficient on-time start, a stress-free finish, an efficient capacity model, and a realistic assessment of your performance.
