KPI - On Time In Full (OTIF) | QPR

KPI - On Time In Full (OTIF)

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On Time In Full is a KPI applicable in almost all industries. The criteria often varies depending on the organization’s goals. However, some common characteristics can be identified: 

Delivered On Time: 

  • organizations define a time which they should be able to reach. This can be e.g. requested delivery date, production cycle, or agreed response time. 
  • Typical for On Time criteria is that the delivery should not be late. However, equally important is that the delivery should not be too early. If a case is closed much faster than average it typically means some exceptions have been made. 

Delivered In Full: 

  • Most common way to define In Full is that customer gets exactly the amount they have ordered. However, e.g. in medical industry the manufactured batch size varies and the In Full criteria should be defined so that customer gets at least the amount they have ordered. 

 

Formulas: 

  • On Time In Full:
    • (Cases matching the criteria)/(Total number of cases) 
  • On Time: (Delivery time) - (Confirmed delivery time) 
    • In this case the organization should be able to match a promised delivery time and there is no lower limit, e.g. it is not problem if a case is delivered very early
    • Target: =>0 
  • In Full: (Delivered amount) - (Confirmed amount) 
    • Target: =0, if the delivered amount should be exactly what promised 

 

Learn more about this KPI in our on-demand webinar.

 

Related processes: 

Order to Cash