Delivery reliability in a manufacturing company
Routila, Henri (2017-08-15)
Delivery reliability in a manufacturing company
Routila, Henri
(15.08.2017)
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Turun yliopisto. Turun kauppakorkeakoulu
Kuvaus
siirretty Doriasta
Tiivistelmä
Delivery reliability and on-time delivery have attracted growing interest in manufacturing in the past years. Manufacturing companies need to fulfil these order-qualifying criteria to enter into the competitive arena.
This thesis aims at describing how delivery reliability and on-time delivery is considered in a manufacturing company. In the previous literature delivery reliability is seen in general as the main capability and on-time delivery as a Key Performance Indicator within the delivery reliability. To deliver reliably is vital even when customers’ demand fluctuates and it needs to be measured with an effective on-time delivery measure.
Delivery reliability is one of the key capabilities in a manufacturing company in addition to quality, cost and flexibility. The capabilities define whether a manufacturing company is successful in producing effectively. No company can concentrate on all of the capabilities at the same efforts and the companies need to choose their path of concentration. There also exist trade-offs and compatibilities between the capabilities, and they need to be identified by the companies.
On-time delivery is a measurement of the delivery reliability. There exist three main factors that effect on-time delivery: i) demand forecasting, ii) procurement and material availability and iii) manufacturing lead times. To achieve a good on-time delivery the whole supply chain needs to be considered.
Based on these theoretical findings the researcher started a descriptive research process to examine how delivery reliability is considered in the case company. The findings implicated that the case company considers delivery reliability as one critical factor in being successful with their customers and business.
In addition to the three effective factors in on-time delivery the case company considered material and end-product buffering, and manufacturing planning and resourcing as very important in achieving a good delivery reliability. The company considers the On-Time-Delivery-To-Request measurement and Earnings Before Interest and Tax as their main key performance indicators in being successful and effective with their supplier-customer relationship.
This thesis aims at describing how delivery reliability and on-time delivery is considered in a manufacturing company. In the previous literature delivery reliability is seen in general as the main capability and on-time delivery as a Key Performance Indicator within the delivery reliability. To deliver reliably is vital even when customers’ demand fluctuates and it needs to be measured with an effective on-time delivery measure.
Delivery reliability is one of the key capabilities in a manufacturing company in addition to quality, cost and flexibility. The capabilities define whether a manufacturing company is successful in producing effectively. No company can concentrate on all of the capabilities at the same efforts and the companies need to choose their path of concentration. There also exist trade-offs and compatibilities between the capabilities, and they need to be identified by the companies.
On-time delivery is a measurement of the delivery reliability. There exist three main factors that effect on-time delivery: i) demand forecasting, ii) procurement and material availability and iii) manufacturing lead times. To achieve a good on-time delivery the whole supply chain needs to be considered.
Based on these theoretical findings the researcher started a descriptive research process to examine how delivery reliability is considered in the case company. The findings implicated that the case company considers delivery reliability as one critical factor in being successful with their customers and business.
In addition to the three effective factors in on-time delivery the case company considered material and end-product buffering, and manufacturing planning and resourcing as very important in achieving a good delivery reliability. The company considers the On-Time-Delivery-To-Request measurement and Earnings Before Interest and Tax as their main key performance indicators in being successful and effective with their supplier-customer relationship.