KPI Library – Order Fulfilment

Order Fulfilment Cycle Time

 

Description:

The time between customer order and customer receipt of product or service – short OFCT is likely to be considered very important by the customer as it represents the total “time waiting” experienced. The OFCT is an organization’s measure of success in its delivery of an end to end process. Review of the OFCT may hi-light areas which contribute a greater / lesser extent to process speed and therefore offer a tool to assist in prioritisation of effort and resources to improve the process. Customers are increasingly demanding short cycle times – requiring flexible production and just in time delivery, an organisation’s ability to match customer expectations in this area of business is therefore important to maintain and grow your customer base.

 

Calculation:

The average time taken (days / weeks / months / years) to source, make and deliver a product / service from order to customer receipt.

 

Example:

The time taken to deliver a fitted kitchen from the point that the design was signed off by the customer.