Difference between revisions of "RS1"

Latest revision as of 15:25, 8 December 2021

The Order Cycle Time metric (OCT) measures the average time required to fulfill customer orders; demonstrating the speed at which the company can satisfy demand.

Delivery Date = The date/time the order was delivered and accepted by the customer or the customer's agent at the agreed delivery point. Example agreed delivery points include: Pickup (EXW), Departure Port (FCA, FAS) or Vessel (FOB), Destination Port (CPT, CIF, CFR, DAT) or Customer (CIP, DAP, DDP)
Order Date = The date/time the order was submitted by the customer
n = Total number of orders or order lines delivered

Unit of Measure: Days (Calendar days)

Importance

Companies with shorter Order Cycle Times are more responsive to customer orders. Longer lead times may ultimately result in customer dissatisfaction and competitive disadvantage. Order Cycle Time is considered less relevant to Make-to-Stock supply chains, these generally put more emphasis on improving Fill Rates.

Notes

The impact of planning processes on Order Cycle Time is limited; Order Cycle Time is typically measured for MTO and ETO supply chains, where planning is mainly focused on establishing capacity. Planning will have a direct impact on Order Cycle Time if or when capacity is or becomes the primary constraint.

Make-To-Stock (MTS) supply chains typically measure Order Fill Rate, as Order Cycle Time may underemphasize the scale of product shortages.

Alternative names include: Order Fulfillment Cycle-time. Order-to-Cash

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Hierarchy

ID	Name	Level	x
RS	Responsiveness	0	RS
RS1	Order Cycle Time	1	RS1
RS11	Planning Frequency	2	RS11
RS12	Deliver Cycle Time	2	RS12
RS13	Make Cycle Time	2	RS13
RS14	Sourcing Cycle Time	2	RS14

Process(es)

ID	Name	Level	x
P	Plan	1	P
P1	Plan Supply Chain Operations	2	P1
P2	Plan Source	2	P2
P3	Plan Make	2	P3
P4	Plan Deliver	2	P4
S	Source	1	S
S2	Source-to-Order	2	S2
S3	Source-to-Engineering-Order	2	S3
M	Make	1	M
M2	Make-to-Order	2	M2
M3	Make-To-Engineering-Order	2	M3
D	Deliver	1	D
D1	Deliver-From-Stock	2	D1
D2	Deliver-to-Order	2	D2
D3	Deliver-To-Engineering-Order	2	D3
D4	Deliver Returns	2	D4

Term(s)

ID	Name	x
CIP	Carriage and Insurance Paid To (Destination)	CIP
CPT	Carrier Paid To (Destination)	CPT
CFR	Cost and Freight (Destination Port)	CFR
CIF	Cost, Insurance and Freight (Destination Port)	CIF
DDP	Delivered Duty Paid (Destination)	DDP
DAP	Delivered at Place (Destination)	DAP
DAT	Delivered at Terminal (Destination or Destination Port)	DAT
DRP	Distribution Requirements Planning	DRP
DRP-II	Distribution Resource Planning	DRP-II
EXW	Ex Works (Origin)	EXW
FAS	Free Alongside Ship (Departure Port)	FAS
FCA	Free Carrier (Carrier)	FCA
FOB	Free On Board (Departure Port)	FOB
MRP-II	Manufacturing Resource Planning	MRP-II
MRP	Material Requirements Planning	MRP
O2C	Order-to-Cash	O2C

Order Cycle Time Responsiveness 21000 1 Responsiveness, Order Cycle Time, Cycle-time, Lead-time, Supply Chain The average time required to fulfill customer orders; demonstrating the speed at which the company can satisfy demand

@@ Line 2: / Line 2: @@
 ===Calculation===
 {{math|{{this}}|{{frac|{{sum|(Delivery Date &#8211; Order Date)|n}}|n}}}}
-where
+{{where|Days (Calendar days)|Delivery Date|The date/time the order was delivered and accepted by the customer or the customer's agent at the agreed delivery point. Example agreed delivery points include: Pickup ([[Link::t:EXW|EXW]]), Departure Port ([[Link::t:FCA|FCA]], [[Link::t:FAS|FAS]]) or Vessel ([[Link::t:FOB|FOB]]), Destination Port ([[Link::t:CPT|CPT]], [[Link::t:CIF|CIF]], [[Link::t:CFR|CFR]], [[Link::t:DAT|DAT]]) or Customer ([[Link::t:CIP|CIP]], [[Link::t:DAP|DAP]], [[Link::t:DDP|DDP]])
-* Delivery Date = The date/time the order was delivered and accepted by the customer or the customer's agent at the agreed delivery point. Example agreed delivery points include: Pickup ([[Link::t:EXW|EXW]]), Departure Port ([[Link::t:FCA|FCA]], [[Link::t:FAS|FAS]]) or Vessel ([[Link::t:FOB|FOB]]), Destination Port ([[Link::t:CPT|CPT]], [[Link::t:CIF|CIF]], [[Link::t:CFR|CFR]], [[Link::t:DAT|DAT]]) or Customer ([[Link::t:CIP|CIP]], [[Link::t:DAP|DAP]], [[Link::t:DDP|DDP]])
+|Order Date|The date/time the order was submitted by the customer
-* Order Date = The date/time the order was submitted by the customer
+|n|Total number of orders or order lines delivered}}
-* n = Total number of orders or order lines delivered
-Unit of measure: Days (Calendar days)
 ===Importance===
 Companies with shorter {{this}}s are more responsive to customer orders. Longer lead times may ultimately result in customer dissatisfaction and competitive disadvantage. {{this}} is considered less relevant to [[t:MTS]] supply chains, these generally put more emphasis on improving [[m:RS2|Fill Rates]].

RS1