Key Performance Indicators (KPIs)
This application enables users to monitor operations and track value realization based on built-in KPIs.
Key Performance Indicator (KPI) | Definition |
Excess Inventory Rate | The Excess Inventory Rate (EIR) is defined as the percentage of inventory on hand (i.e. total stock) which exceeds current target stock. Target stock is computed based on safety stock and cycle stock. |
Material Availability | The Avg. Material Availability is defined as the average share of days on which a given material has had a stock greater than zero in a given timeframe. The time period considered for evaluation is indicated in parentheses, e.g. (1y) limits the input to the last twelve closed months. |
Turnover Rate | The Turnover Rate (TOR) is defined as the total consumption divided by the average inventory across the same time period based on valuated stock and consumptions. Consumption is defined as amount of consumed inventory in the considered timeframe |
Service Level | The Service Level is defined as the share of Sales Orders delivered between one day before and one day after the confirmed date during the considered timeframe. These tolerances can be adjusted by updating the Knowledge Model. |
Days of Cover | The Days of Cover is defined as the amount of days a particular material would have stock based on historical consumption levels, if no other replenishment took place. |
Supplier Reliability | The Supplier Reliability is defined as the share of purchase orders received between five days before or one day after the scheduled date during the considered timeframe. These tolerances can be adjusted by updating the Knowledge Model. |
Production Adherence | The Production Adherence is defined as the share of Production Orders completed between one day before or one day after the scheduled date during the considered timeframe. These tolerances can be adjusted by updating the Knowledge Model. |