The Enterprisewide Metric to Support Order Fulfillment and Drive Continuous Improvement
by Nathan Stoflet and Rajan Suri
Continuous improvement efforts often include cutting costs, reducing waste, improving quality, increasing responsiveness and boosting customer satisfaction. However, quantifying the progress and success of these efforts remians a challenge in any enterprise.
The different approaches (Lean, Six Sigma, Kaizen, Quick Response Manufacturing) propose multiple goals and metrics for measuring the effectiveness of improvement efforts. Supply chain management projects focus on improving supplier performance, but the traditional metrics (quality, delivery and cost) used to measure suppliers focus on the outcomes and hide opportunities for improvement or even mislead people into thinking improvement opportunities do not exist.
Whether improvement projects are conducted within an organization or throughout the enterprise and into the supply chain, a unifying metric to evaluate them has not existed … until now. This report justifies the use of Manufacturing Critical-path Time (MCT) as a robust, unifying, enterprisewide metric to be used to support order fulfillment and drive continuous improvement projects. It demonstrates how MCT — a seemingly simple metric — is powerful in both its application and impact.