When I talk to some of my colleagues, I notice that they often speak with a vocabulary that I cannot understand. It is all Anglo-Saxon words (when it is going well) or acronyms (when it is going badly). An example: ICEG, TC, Buddy, CA....they all sound crazy to me....when we start talking about manufacturing I realise that we don't use words that are used in everyday life: Backorder, OTIF, Value Stream Map, Milk Run, OEE, Customer Order, PO, FIFO, LIFO etc...etc...
That is why a few days ago I talked about OEE and today I will talk about OTIF or DIFOT.
OTIF=On Time In Full OR DIFOT=Delivery in full, on time, which is the supply chain's metric that measures how good you are at meeting delivery dates. In practice, out of 100 lines of customer orders, only those lines where you delivered on time are considered correct.
ATTENTION, because even shipping earlier is considered an error, think of tier1 automotive, such as tyre suppliers, these deliver the tyres in the order and at the time they are to be fitted, having the unloading bay on the line, think what would happen if they delivered their load before the date specified on the order, there would be thousands of tyres on the line and a car bag literally on 4 stones.
This is a percentage obtained by taking the number of shipments made on the specific date in the numerator and the total number of lines in the denominator.
The expected value should be around 100
Seems these two KPIs are from fulfillment point of view and JIT (just in time) is from supply pov, right?