On Time In Full
OTIFOn Time In Full (OTIF) is a supply chain metric that measures whether an order was delivered to the customer at the agreed-upon time and with the correct quantity.
On Time In Full (OTIF) is a key performance indicator (KPI) for supply chain management. It measures how well a manufacturer meets customer orders. The metric has two parts. 'On Time' checks if the order arrived by the promised delivery date. 'In Full' checks if the customer received the exact quantity of items ordered.
OTIF directly connects shop floor performance to customer satisfaction. A low score signals problems in production, inventory, or logistics. For example, unexpected machine downtime can delay an entire order, affecting the 'On Time' component. Similarly, a high scrap rate on a production run can lead to a short shipment, affecting the 'In Full' component.
To track OTIF, manufacturers compare purchase order details with shipping and delivery records. They use data from ERP and MES systems to monitor promise dates, actual delivery dates, ordered quantities, and shipped quantities. Analyzing orders that fail the OTIF measure helps identify root causes. These causes can include supplier delays, inaccurate demand forecasts, or inefficient warehouse processes.
A medical device manufacturer shipped 500 orders last month. 470 of those orders arrived on the correct date with the exact quantity of sterile kits. The company's OTIF for the month was 94% (470 / 500 * 100).
What is the difference between OTIF and On-Time Delivery (OTD)?
OTD only measures if an order was delivered on time. OTIF is a stricter metric because it measures both on-time delivery and order completeness.
What is a good OTIF score for a manufacturer?
Many high-performing manufacturers aim for an OTIF score of 95% or higher. The target can vary based on the industry and customer agreements.
Does the 'In Full' part of OTIF account for product quality?
Yes, the 'In Full' component implies that all items in the order meet the required quality specifications and are free from damage.
How can we improve a low OTIF score?
Improving OTIF involves analyzing the root causes of failures. Common areas for improvement include demand planning, inventory accuracy, production scheduling, and supplier management.
On-Time Delivery
OTDOn-Time Delivery (OTD) is a performance metric that measures the percentage of orders shipped to customers on or before the promised delivery date.
Lead Time
Lead time is the total time elapsed from when a customer places an order to when they receive the finished product.
Supply Chain Management
SCMSupply Chain Management (SCM) is the process of managing the flow of goods, data, and finances related to a product from procurement to final delivery.
Key Performance Indicator
KPIA Key Performance Indicator (KPI) is a measurable value used to track progress toward a specific manufacturing goal.
First Pass Yield
First Pass Yield is the percentage of products that meet quality standards after a single process step, without needing any rework or repair.