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The KPI's That Can Be Analyzed
Service Level Monitoring – this KPI shows you what status your inventory has had over time, in terms of what colors the Duration Meters of your products have had. Duration Meters display the run-out time, or duration, visually. The color-coding of the Duration Meter is explained in the PipeChain Supply User Reference Manual. The Service Level KPI measures the percentage of a specified time period that the Duration Meter for a certain stock keeping unit has been red, yellow, green or blue. There is also measures for "green + yellow" (= Service Level is OK) and "Empty". This KPI is analyzed using the Supply Inventory cube.
Run-out Time – this KPI lets you follow how the run-out time (referred to as duration in PipeChain) of your own and your customers’ stock changes over time. The best way of visualizing this change is probably a graph, where the X-axis is time, and the Y-axis is the inventory level expressed as the run-out time. You can analyze either the run-out time at a specific time or as an average over a predefined period of time. This KPI is analyzed using the Supply Inventory cube.
Tied-up Capital – this value is obtained as the standard cost of the product multiplied by the inventory level. The inventory level can be either an average of the inventory level over a predefined period of time, or “snapshots” of the inventory on specific occasions. The former method is interesting if you want to find out how much capital is bound in stock on average. The latter method is interesting if you wish to follow how much capital is tied up in stock at each occasion. The capital in stock is also valuable because it enables you to meaningfully summarize the inventory level along the Product or Business Node dimension. This KPI is analyzed using the Supply Inventory cube.
Inventory Turnover – calculated as the total outflow during a period of time, divided by the average inventory level during the same period. At levels higher than the grain of the Product and Business Node dimension, the standard cost is used as a weighting factor, allowing you to analyze the Inventory Turnover at all intersections of the cube – i.e. for whole product groups as well as single products. This KPI is analyzed using the Supply Inventory cube.
Delivery
Precision – refers to the precision of a
shipment in terms of demand time, confirmed time, shipment time, receipt
time, and corresponding quantities. A number of difference values are
calculated: e g the actual difference (in time, absolute quantity and
relative quantity) between the last confirmed shipment and the actual
shipment. Note that “time differences” refers to business hours.
There are also combined KPIs which show the percentage of "correct"
deliveries (order lines): Demand Fulfillment, Delivery Precision
(First Confirmed) and Delivery Precision (Last Confirmed). Here, the date and
quantity of the Demand, First
Confirmation and Last Confirmation are compared to the actual date and
quantity. Depending on the supplier's responsibility (Terms of Delivery)
"actual" means either shipment time or receipt time. What is
considered "correct" is controlled by the Deviation Limit settings
in PipeChain Supply. These are also used to control sending of deviation
notification email. All these measures are analyzed
using the Supply
Shipments cube.
Lead-time Precision – the lead-time precision is a function of the receipt and shipping time precision. A number of measures are available in order to analyze the precision of the lead time. For example, you can see by what percentage the actual lead time differs from the lead time set up in PipeChain.
Actual lead time is defined in PipeChain Analyzer as the receipt time minus the shipment time minus the number of whole non-business days in the interval, according to the supplier’s business calendar. Therefore, the supplier’s business calendar has to be considered in order to achieve correct measurements of lead-time precision. You can measure lead-time precision between a supplier and yourself. This KPI is analyzed using the Supply Shipments cube.
Demand Precision per Day – this concept includes several measures, the aim of which is to judge how correctly the Flow Meter and/or Flow Models predict demand per day. You can also compare whether the Flow Meter or the Flow Model is more precise (on condition that the Flow Model is using its own defined constant outflow value, i e not the Flow Meter value). You can measure demand precision per day for your own business as well as your customers’. This KPI is analyzed using the Supply Flow Model Precision Day cube. The values are aggregated as straight averages (Avg) or as volume value weighted averages (Vvw). Please note that the averaged daily value for week or month is not the same thing as a weekly or monthly precision.
Demand Precision per Week I – this KPI analyzes the precision of the Flow Models and Flow Meter per week in the same way as described above (Demand Precision per Day). This KPI is analyzed using the Supply Flow Model Precision Week cube and is used for VMI products.
Demand Precision per Week II – this KPI analyzes the precision of Delivery Schedule (Forecast) per week versus the actual order demand. This KPI is analyzed using the Supply Delivery Forecast Week cube and is used for non-VMI (Purchase Order) products.
Communication Stability – an administrative KPI; allows you to analyze what percentage of all data exchanges was successful. Communication Stability is analyzed using the Supply Data Exchange Stability cube.