Whether you are in the B2B or B2C business, your OTD-performance matters. It is (or should be) a truly holistic view on your operational performance and reflects how much your customers can rely on you. However, even with the best of intentions, your efforts to improve your OTD-performance may not deliver the expected results. Please let me share the most important pitfalls I have come across over the last couple of years.
#1 There is something wrong with your metric
As explained by Frank Stieger in his blog “How to manage your service level?” the OTD-performance can be used only as a diagnostic metric when it is available on a transactional level. Averages or other representations of this data just don’t bring you the necessary insights to be able to improve your performance.
#2 There is something wrong with how you use your metric
Even when having the metric available in a transactional way, at what part of the performance you focus your attention matters too. In his blog, “How to analyse and improve your on-time delivery performance”, Mike Schmitt explains how to use Span to identify and eliminate root causes.
#3 There is something wrong with your data(structure)
Now let’s assume the you have resolved the first two issues and you start reviewing your OTD-performance on a weekly and maybe even daily basis. What we find often during our customer journeys is that the data(structure) underneath the performance metric is not aligned or connected at all! Often times sales orders are not (or poorly) connected to shipping orders, not to mention the (dis)connect to manufacturing orders. Not having these valuable sources connected really limits your options to find out what went wrong where, why and how in your process. Having insight into whether your subprocess were delivered on time can give you valuable information on what you need to do to improve your OTD-performance at the end of the line! Stop the fire-fighting through Sub-Process Analysis. True Data Driven Leadership can help you find your way out of your current pickle!
#4 There is something wrong with your process
Connecting your data does not need to be a huge undertaking and doesn’t require a full-scale IT operating system; there are various standalone options available to help get you started. After having connected your data in a manner that support Data Driven Leadership, you may find you still have a hard time uncovering the hidden potential in your process. This is when Process Mining becomes truly valuable. Viewing your process data in a process mining environment may show you variations within your process you did not know where possible. After all, reducing variation within your process is the key into improving your OTD-performance and increasing your service levels.
Looking for a way out of your data-maze and ready to start improving your OTD performance? Come find out more about our Data-Driven Leadership solutions!