Changes since last version are highlighted in yellow SCMH Section 7.11.2 KPI Metrics and Definitions iaqg.

SCMH Section 7.11.2 KPI Metrics and Definitions iaqg.org/tools/scmh Rev. D Dated 31 July 2020
Key Performance Indicator
KPI Description What the KPI Measures Remarks
Indicator (KPI) Expressed in;
1. Customer Metrics
Item Escape Rate (IER) Number of non-conforming items under Number of items delivered to the customer and subsequently identified by this customer as not Parts per million (PPM) For Detailed Definitions and Formula refer to SCMH Section
company liability vs. Number of items compliant to the applicable definition or specification. It excludes non-conformities that are not or % 5.1.2 Delivery KPI Detailed Definitions.
delivered by the company during the period. under liability of the organization (e.g. parts damaged by the customer during installation).

Defects per Unit (DPU Number of system defects, under company Number of system defects, anomalies or non-conformities detected on a delivered system or Unit per system or For Detailed Definitions and Formula refer to SCMH Section
liability vs.. Number of systems delivered by assembly by the customer to whom it was delivered. It excludes defects or non-conformities that assembly 5.1.2 Delivery KPI Detailed Definitions.
the company during the period. are not under liability of the organization (e.g. systems or assemblies damaged by the customer
during installation, parts removed with no defect fault because of incorrect trouble shooting by the
customer, etc.).
Concession Rate (CR) Number of concessed items delivered vs.. Number of items delivered by the organization to its customer covered by a concession accepted PPM, % or Unit For Detailed Definitions and Formula refer to SCMH Section
or Concession Number Number of items delivered by the company by the customer vs. total Number of items delivered by the company to its customer during the 5.1.2 Delivery KPI Detailed Definitions.
(CN) during the period. period.
May also be the total number of items delivered by the organization to its customer covered by a
concession accepted by the customer during the period.

Concession per System Number of concessions raised on systems (or Number of concessions accepted by the customer on systems (or assemblies) delivered by the Unit For Detailed Definitions and Formula refer to SCMH Section
(CPS) assemblies) vs. Number of systems or organization divided by the number of systems (or assemblies) delivered by the organization to this 5.1.2 Delivery KPI Detailed Definitions.
assemblies delivered by the company during customer during the period.
the period.

On Time Delivery to On Time Delivery punctuality level of item On Time Delivery (OTD): Number of Purchase Order lines/items delivered on time in the period by % For Detailed Definitions and Formula refer to SCMH Section
Customer deliveries (at the customer) the company vs. Number of Purchase Order lines/items due in the period. 5.1.2 Delivery KPI Detailed Definitions.

Customer Delivery Delay Average): Delay Average or Delivery Variance (DV): Cumulative number of days for all late deliveries in the Unit (days) For Detailed Definitions and Formula refer to SCMH Section
Delay Average degree of performance related to the late period vs. number of late deliveries in the period. 5.1.2 Delivery KPI Detailed Definitions.
delivered items (at the supplier)
Very Late Delivery Number of items delivered with more than Measures the potential high impact of late deliveries on the customer production line and final Percent % For Detailed Definitions and Formula refer to SCMH Section
10 days of delay (or a number of days as product deliveries to the next customer 5.1.2 Delivery KPI Detailed Definitions.
fixed by the customer)

2. Engineering and
Product Development
Quality of Engineering Measures the rate of published drawings Measures the drawings which do not require corrections following internal review by Design Percent % For Detailed Definitions and Formula refer to SCMH Section
Release which do not require rework for correction. Engineering, Manufacturing Engineering or Production. Corrections can occur mostly after the 2.6.2 Design and Develop KPI Detailed Definitions.
design deliverable has been released and the design activity (tool/process) failed to prevent the
error.

Drawing changes due to new customer demand or Improvement requests should be out of scope
when calculating QER.
Design and Engineering A measure of missed requirements or An Engineering or Design escape occurs when components, products, or other deliverable Percent % For Detailed Definitions and Formula refer to SCMH Section
Escapes requirements non-compliant with the products or services do not meet technical specifications or technical requirements/expectations, 2.6.2 Design and Develop KPI Detailed Definitions.
defined design or specification. as identified by the producer or customer and root cause determines the event is a result of:
•a noncompliance to standard work in place at the time the hardware was designed or service
was provided, and/or
•a failure to meet reasonable engineering design practices at the time the hardware was designed
or service was provided.

On Time Internal It is a measure of the adherence to the Schedule Performance Index - Actual release date relative to planned release. Percent % For Detailed Definitions and Formula refer to SCMH Section
Engineering Release release requirements as developed in the 2.6.2 Design and Develop KPI Detailed Definitions.
current Product Development Plan.

Engineering Capacity This metrics is used to measure of the Estimate resource needs based on complexity scale. Percent % For Detailed Definitions and Formula refer to SCMH Section
business engineering capacity required to Measure estimated resource needs versus actual. 2.6.2 Design and Develop KPI Detailed Definitions.
cover the customer's needs related to a
certain scope of work (e.g., contract,
program, process, etc.)
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Classification of It is a measure of the basic nature/reason of It is a pareto analysis of design change categories Count or Percent % For Detailed Definitions and Formula refer to SCMH Section
Engineering Changes engineering design/product definition 2.6.2 Design and Develop KPI Detailed Definitions.
changes.
On-Time Design It is a measure of design changes completed Measures the quantity of engineering design/product definition changes. Depending on the nature Percent (%) For Detailed Definitions and Formula refer to SCMH Section
Changes Completed on-time vs. total number of design changes of the business it may be more suitable to measure by program or product family. 2.6.2 Design and Develop KPI Detailed Definitions.
due to have been completed within a certain
period of time.
Design Changes It is a measure of design changes requests Measures the quantity of requested engineering design/product definition changes. Depending on Number of Design For Detailed Definitions and Formula refer to SCMH Section
Requested received and registered within a certain the nature of the business it may be more suitable to be measure by program or product family. Changes per period of 2.6.2 Design and Develop KPI Detailed Definitions.
period of time. time

Design Change Cycle It is a measure of the speed at which design Measures the Engineering Cycle and lead-time to execute design changes to correct an issue Period of time (days, For Detailed Definitions and Formula refer to SCMH Section
Time changes are released. It counts the time from weeks or months) 2.6.2 Design and Develop KPI Detailed Definitions.
the initiation of the design change until the
release of the design to production. Shorter
times are preferable

Design Non-Quality at Measures the number of design issues raised Measure of design non-quality at a specific design review by tracking and classifying the design Count per designated For Detailed Definitions and Formula refer to SCMH Section
Design Review during a design review that require issued raised during a design review. frequency for a 2.6.2 Design and Develop KPI Detailed Definitions.
engineering action. program or project

Engineering Cost of Summation of costs of engineering labor, Engineering post certification (or post qualification as applicable) non-recurring costs to fix internal Currency For Detailed Definitions and Formula refer to SCMH Section
Poor/Non-Quality development hardware and tests or external Engineering escapes. 2.6.2 Design and Develop KPI Detailed Definitions.

Technology Readiness The TRL value is selected from the table An attribute scale to show technology capabilities relative to application in full-scale product TRL Scale For Detailed Definitions and Formula refer to SCMH Section
Level below based on the attributes of the product design and development activities. 2.6.2 Design and Develop KPI Detailed Definitions.
technology under consideration. For product
concepts that embody multiple new
technologies the lowest readiness level
applies to the product.
Technology Readiness Measures the adherence to planned TRL Measures the TRL achieved vs. TRL required at specific milestones for a specific program Gap Value For Detailed Definitions and Formula refer to SCMH Section
Level (TRL) Adherence during project implementation 2.6.2 Design and Develop KPI Detailed Definitions.
Manufacturing Manufacturing Readiness Level (MRL) at a An attribute scale to show manufacturing capabilities relative to application in full-scale product MRL scale For Detailed Definitions and Formula refer to SCMH Section
Readiness Level specific Manufacturing Review during design and development activities. 2.6.2 Design and Develop KPI Detailed Definitions.
product development.

Manufacturing Measures the adherence to planned MRL Measure the MRL achieved vs. the MRL required at specific milestone - for a specific program. Gap Value For Detailed Definitions and Formula refer to SCMH Section
Readiness Level (MRL) during project implementation 2.6.2 Design and Develop KPI Detailed Definitions.
Adherence
Qualification Tests Measures the qualification tests success rate Measure the Right First Time rate of qualification tests for a new product to prove compliance of Percent % For Detailed Definitions and Formula refer to SCMH Section
Success Ratio the manufactured products with their design specifications. 2.6.2 Design and Develop KPI Detailed Definitions.

3. Program
Management
Adherence to Program Adherence to Program Gates (APG) Measure the number of program milestones successfully passed on time. Percent% For Detailed Definitions and Formula refer to SCMH Section
Gates measures the number of program gates 7.11.3 Plan and Manage KPI Detailed Definitions.
successfully passed on time as planned.

Program Non-Recurring It is a measure of adjustment of actual non- Measure the Non Recurring Costs vs. program target. Percent (%) For Detailed Definitions and Formula refer to SCMH Section
Costs Adherence recurring costs versus program target non- This is generally measured at some specific program milestones. 7.11.3 Plan and Manage KPI Detailed Definitions.
recurring costs.
Program Recurring It is a measure of adjustment of actual Measure the Recurring Costs vs. program target. Percent (%) For Detailed Definitions and Formula refer to SCMH Section
Costs Adherence program recurring costs versus program This may be done at the end of a program or at specific program milestones to regularly verify 7.11.3 Plan and Manage KPI Detailed Definitions.
target recurring costs. Recurring Costs evolution versus time.

4. Manufacturing and
Production

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A selection of the KPIs below should be deployed at several steps of each manufacturing process (e.g. first, middle and final steps). The use of the KPIs will allow for the detection of possible issues as soon as they occur in order to anticipate mitigation
and improvement actions and reduce the probability of poor On Time On Quality performance originated in production.

First Pass Yield Rate of right quality deliverables coming out Measures the ability of a process to produce first time right. Percent % For Detailed Definitions and Formula refer to SCMH Section
Indicator of a process divided by the number of 3.14.2 Manufacturing and Production (Make) KPI Detailed
deliverables going into that process over a Definitions.
specified period of time.
Only good units with no rework or scrap are
counted as coming out of an individual
process.

FAI Success Rate Number of First Article Inspections (FAI) Measure the number of FAIs passed first time versus the number of FAIs performed Percent (%) For Detailed Definitions and Formula refer to SCMH Section
passed first time 3.14.2 Design and Develop KPI Detailed Definitions.

FAI Accuracy Measure the number of errors or non- Average number of errors during FAI review per unit of time. Number of errors or For Detailed Definitions and Formula refer to SCMH Section
conformities detected during an FAI (First non-conformities per 3.14.2 Design and Develop KPI Detailed Definitions.
Article Inspection review performed on a FAI reviewed
production part, sub-assembly or assembly.
Inventory Accuracy It is a measure of the variance of actual Measures the accuracy of an inventory by taking an actual count of items in stock, and comparing Percent% For Detailed Definitions and Formula refer to SCMH Section
stored items versus items registered as it to what is recorded in the database. 3.14.2 Design and Develop KPI Detailed Definitions.
stored at inventory location

Staffing Levels The metric measures the ratio between the Measure the number of working hours required to perform the job vs. the total number of Percent % For Detailed Definitions and Formula refer to SCMH Section
(Capacity) workload and the capacity of existing work available working hours (number of persons multiplied by number of working hours per person). 3.14.2 Manufacturing and Production (Make) KPI Detailed
forces (personnel) available for a work center
May be done for global activities and/or only for those requiring specific skills. Definitions.
(present and forecast) or for a project. Measures the margin/criticality of the available resources.
Forecast can vary from weeks, months, years, … The horizon should correspond to at least twice
the time needed to increase the capacity.
Internal & External Actual time needed to cover the complete Number of days needed to cover the complete step of an operation or sum of all times needed to Time (Days, Hours, For Detailed Definitions and Formula refer to SCMH Section
Lead Time step of an operation or sum of all times perform a sequence of operations (including manufacturing, inspection, waiting time, bottlenecks, Weeks…) 3.14.2 Manufacturing and Production (Make) KPI Detailed
needed to perform a sequence of operations. stops of production, shift change, etc.). Definitions.

Buffer Stock Turn BST is a description of number of parts or Number of finished parts/products currently produced and in stock (not yet used/sold) in relation Number of finished For Detailed Definitions and Formula refer to SCMH Section
products in buffer stock to safeguard against with the number of parts/products manufactured/needed during a period of time. parts/products 3.14.2 Design and Develop KPI Detailed Definitions.
unforeseen shortage or demand (also called
strategic stock).
Days of Buffer Stock DBS is a description of number of days Number of days (weeks or months) needed to consume all parts/products (not yet used/sold) Units of time (days, For Detailed Definitions and Formula refer to SCMH Section
needed to consume all parts or products in currently produced and in stock with current production rate. weeks, months) 3.14.2 Design and Develop KPI Detailed Definitions.
buffer stock with current production rate
Inventory Turnover Cost of goods sold (net sales) divided by cost Measures number of times a company's inventory is sold and replaced over a period of time Turns per unit of time For Detailed Definitions and Formula refer to SCMH Section
of the average inventory. (generally one year) or number of days required to consume the entire inventory. 3.14.2 Design and Develop KPI Detailed Definitions.
Manufacturing Ratio between the amount of goods and Measures the amount of goods and services produced by one unit of labor. Indicator can be For Detailed Definitions and Formula refer to SCMH Section
Productivity services produced during a given time, and expressed in 3.14.2 Manufacturing and Production (Make) KPI Detailed
the given time. deliverables divided by Definitions.
Quantity of deliverables achieved (or to be unit of measure of
achieved) per a resource unit deployed to resource deployed
achieve these deliverables. (e.g. parts/manhour,
milestones/persons,
items/machining hour).

Capacity Utilization Ratio between the capacity of production Compares the capacity of the production means (machine, installation, equipment, etc.) effectively Percent % For Detailed Definitions and Formula refer to SCMH Section
Rate means effectively utilized to manufacture, utilized to manufacture, inspect and/or test the current level of production and the total available 3.14.2 Manufacturing and Production (Make) KPI Detailed
inspect and/or test the current level of capacity of these production means (if all used at 100%). Definitions.
production and the available capacity of
these production means

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Manufacturing The metric measures ratio between the Ratio between the number of hours the manufacturing equipment (or machine) is running to Percent % For Detailed Definitions and Formula refer to SCMH Section
Equipment Utilization
productive time of the equipment (or produce or test product in a day (or in a period) versus the number of available hours (taking into 3.14.2 Manufacturing and Production (Make) KPI Detailed
Ratio (availability)machine) and the total available time for that account number of shifts per day and number of hours per shift). Definitions.
equipment.
Equipment Breakdown Ratio between the down time resulting from Measures the impact of equipment breakdown on production/testing capacity. Percent (%) For Detailed Definitions and Formula refer to SCMH Section
Ratio a machine or equipment breakdown or 3.14.2 Design and Develop KPI Detailed Definitions.
unplanned maintenance versus the total
planned operational time.
Equipment Breakdown A measure of a number of equipment Measures how often a machine or equipment encounters breakdown or requires unplanned Number of Equipment For Detailed Definitions and Formula refer to SCMH Section
Frequency breakdowns or unplanned necessary maintenance. Breakdowns per unit of 3.14.2 Design and Develop KPI Detailed Definitions.
maintenance over a period of time. time (week, month,
year)
Internal On-time Measures the percentage of items delivered Internal on-time delivery measures the percent of items completed on time for a specific process. Percentage % For Detailed Definitions and Formula refer to SCMH Section
Delivery on time to internal customers. Processes with on time internal delivery include material review board dispositions, department 3.14.2 Manufacturing and Production (Make) KPI Detailed
work transfers, PPAP submittals, etc. The IOTD for each process can be utilized to identify process Definitions.
improvements for each function.
On-time Manufacturing Number of items completed (manufactured / Measure the percentage of items manufactured on time (the number of units that have been Percent % For Detailed Definitions and Formula refer to SCMH Section
or Manufacturing inspected / tested) on time in the period / effectively produced or tested over a period of time versus the total number of units that should 3.14.2 Manufacturing and Production (Make) KPI Detailed
Schedule Adherence Number of items planned in the period have been produced or tested by a machine / production line / inspection line over the period of Definitions.
time as per initial plan)
Unproduced Units per It is the number of scheduled units not Measures the quantity of items missed per schedule. Number of finished For Detailed Definitions and Formula refer to SCMH Section
Schedule manufactured for a specified time period. units for a unit of time 3.14.2 Design and Develop KPI Detailed Definitions.

Manufacturing Flow The MFI value reflects the total number of Measures how often production is stopped or interrupted per period of time Number of For Detailed Definitions and Formula refer to SCMH Section
Interrupter times Production is stopped or interrupted interruptions per unit 3.14.2 Design and Develop KPI Detailed Definitions.
regardless of the reason. The definition of of time
what constitutes an interruption (e.g. more
than 5 minutes delay) must be determined by
the organization. This Performance Indicator
is to be shared with other departments, such
as HR, Logistics, Procurement and/or
Maintenance since it measures their input
performance to manufacturing.

Manufacturing Flow The MFI - MP value reflects the number of Measures how often production is stopped or interrupted due to missing or defective part, Number of For Detailed Definitions and Formula refer to SCMH Section
Interrupter -Missing times Production is stopped or interrupted by component or material. The definition of what constitutes an interruption (e.g. more than 5 interruptions due to 3.14.2 Design and Develop KPI Detailed Definitions.
Parts a missing part or component part or minutes delay) must be determined by the organization. This Performance Indicator is to be material shortage per
material. This is a sub-KPI of the shared with the Logistics and Procurement functions since it measures their input performance to unit of time
Manufacturing Flow Interrupter KPI. manufacturing.
Buffer Stock (parts) It is a measure of stock for a production step, Measures the stock, expressed in number of items available at a given time. Number of items For Detailed Definitions and Formula refer to SCMH Section
expressed in number of items available at a 3.14.2 Design and Develop KPI Detailed Definitions.
given time.

Buffer Stock (Time) It is a measure of stock for a production step, Measures the stock of items available, expressed in unit of time Unit of time (hours, For Detailed Definitions and Formula refer to SCMH Section
expressed in time unit (hours, days, week days, weeks) 3.14.2 Design and Develop KPI Detailed Definitions.
etc.) of items available.

Backlog (parts) For a production step, number of items or Measures the orders expressed in number of items that need to be processed at a given time. Number of For Detailed Definitions and Formula refer to SCMH Section
orders that remain to be processed items/orders 3.14.2 Design and Develop KPI Detailed Definitions.
Backlog For a production step, number of orders that Measures the orders expressed in number of days, weeks or months of production, that need to be Days, weeks or months For Detailed Definitions and Formula refer to SCMH Section
(days/weeks/months) need to be processed at a given time divided processed at a given time to deliver the quantity expected/ordered by the customer 3.14.2 Design and Develop KPI Detailed Definitions.
by the number of items that can be
processed per day, week or month

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Work in Progress It is a measure of the work which has started Measures the number of items being processed Cost (or) % of For Detailed Definitions and Formula refer to SCMH Section
the conversion process from Raw Material to completion (or) 3.14.2 Design and Develop KPI Detailed Definitions.
Finished Goods, but have not entered in to a number of units
‘Finished Good’ inventory state.
WIP can be calculated either in terms of Cost,
% of completion, number of units or man-
hours depending of the companies’ definition
thereof.
Scrap Rate Number of scrapped items divided by the The scrap rate indicates the percentage of the items that were scrapped (i.e. mutilated, disposed Percent % For Detailed Definitions and Formula refer to SCMH Section
number of items produced during a period of with traceability or reclassified) because of non-conformities were produced during manufacturing 3.14.2 Manufacturing and Production (Make) KPI Detailed
time. cycle (or a specific manufacturing operation) and reworks allowing to restore conformity were not Definitions.
possible or would have been too costly considering the value of the items.
Production Rework Indicates the percentage of production parts The rework rate indicates the percentage of parts that were reworked or re-processed to restore Percent % For Detailed Definitions and Formula refer to SCMH Section
Rate that were reworked or re-processed to an acceptable condition after non-conformities or defects were produced during manufacturing 3.14.2 Manufacturing and Production (Make) KPI Detailed
restore the part to its approved design data, cycle (or a specific manufacturing operation). Definitions.
after non-conformities were generated
during the manufacturing cycle.
Item Escape Rate from Item Escape Rate from internal processes to Number of items produced and identified by internal customers, as not compliant to the applicable IPM (Item per Million) For Detailed Definitions and Formula refer to SCMH Section
internal processes to internal customers definition or specification versus the total number of items produced during the period. or % 3.14.2 Manufacturing and Production (Make) KPI Detailed
internal customer Definitions.
Manufacturing Item MICR is the number of items produced Rate of items produced requiring concession. IPM (Item per Million) For Detailed Definitions and Formula refer to SCMH Section
Concession Rate requiring concession vs. Number of items 3.14.2 Manufacturing and Production (Make) KPI Detailed
produced by the organization during the time Definitions.
period.
Manufacturing Item MICN is the number of items produced Number of items produced requiring concession. Number of units per For Detailed Definitions and Formula refer to SCMH Section
Concession Number requiring concession by the organization unit of time 3.14.2 Manufacturing and Production (Make) KPI Detailed
during the time period. (week/month/year) Definitions.
RCCA Process Percentage of Non-Conformities and Non- Measures the number of Non-Conformities and issues having been subject of formal RCCA plans Percent (%) For Detailed Definitions and Formula refer to SCMH Section
Deployment Rate Conformances being subject of formal RCCA divided by total number of Non-Conformities and issues. 3.14.2 Manufacturing and Production (Make) KPI Detailed
plans (RCCA = Root Cause Analysis and Definitions.
Corrective Action).
RCCA Effectiveness Number of RCCA (Root Cause Analysis and Measure the effectiveness of root cause analysis and corrective action process. % For Detailed Definitions and Formula refer to SCMH Section
Corrective Action) plans which prevented 3.14.2 Manufacturing and Production (Make) KPI Detailed
recurrence of the related non-conformity or Definitions.
non-conformance divided by total number of
RCCA plans executed during a period of time.

Time to Root Cause Number of days between detection of an Measures how long the Organization needs to define root cause from the detection of an issue. Number of Days For Detailed Definitions and Formula refer to SCMH Section
issue and defining the root cause. Measures Average number of 3.14.2 Manufacturing and Production (Make) KPI Detailed
how long the Organization takes to define days Definitions.
root cause from the detection of an issue.
Can also be used as a business performance
indicator which will be the, Monthly Average
Number of Days taken to Root cause analysis
(Average number of days to RCCA over a
defined period).
Non-conformity It is a measure of the average time to Measures the average time to process RCCAs, including containment action, root cause analysis, Unit of time (hours, For Detailed Definitions and Formula refer to SCMH Section
Response Time process non-conformity within a period of corrective action implementation and verification (9S). days, weeks, etc.) 3.14.2 Manufacturing and Production (Make) KPI Detailed
Average time/per program (project). Definitions.
Corrective Action Ratio of issues resolved within the customer
Measures the number of issues resolved within the customer and/or internal target time (from Percent (%) For Detailed Definitions and Formula refer to SCMH Section
Timeliness and/or internal target time. initiation of the RCCA process to closure) divided by total number of issues due to be solved (final 3.14.2 Manufacturing and Production (Make) KPI Detailed
corrective action implemented) on the target time. Definitions.
Equipment Item Number of equipment item calibrations done Measure the percentage of equipment items calibrated on time Percent (%) For Detailed Definitions and Formula refer to SCMH Section
Calibration Rate on time, based on their defined 3.14.2 Manufacturing and Production (Make) KPI Detailed
calibration frequency. Definitions.
Measures the quantity of item calibrations
done and percentage of equipment
items calibrated on time.

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Labor efficiency Efficiency is the ratio between the amount of Measures efficiency of the direct labor force. Percent % For Detailed Definitions and Formula refer to SCMH Section
time planned for completing certain activities 3.14.2 Manufacturing and Production (Make) KPI Detailed
and the actual time taken to complete those Definitions.
activities.

Material Variance/ It is a measure of the variance in Measure quantity or costs of materials/components/parts required to manufacture a product vs. Percentage of variation For Detailed Definitions and Formula refer to SCMH Section
Efficiency (cost and consumption of raw-materials with respect the forecast. (%) (Where positive 3.14.2 Manufacturing and Production (Make) KPI Detailed
usage) to the plan. It measures the ability to comply variance is overspend, Definitions.
with standards in terms of volumes or costs Negative variance is
of the raw material. underspend)

5. Supplier
Management
Purchase Order Launch Number of Purchase Orders that have been Number of POs sent on time vs. total number of POs. Percent (%) For Detailed Definitions and Formula refer to SCMH Section
Performance sent to suppliers in due time in line with 4.6.2 Manufacturing and Production (Make) KPI Detailed
business needs and supplier contractual lead- Definitions.
time divided by total number of Purchase
Orders sent during a period of time.

Direct Purchase Order It is a measure of the percentage of POs Number of POs acknowledged by the Supplier within due date (acknowledgment received by the Percent (%) For Detailed Definitions and Formula refer to SCMH Section
Acknowledgment Rate pertaining to direct material, acknowledged Customer within a fixed time limit) vs. the total number of POs sent by the Customer. 4.6.2 Manufacturing and Production (Make) KPI Detailed
by the Suppliers within due date. Definitions.
Supply Chain A measure of the On-Quality and On-Time Same definitions as Customer (OEM) metrics, being applied to suppliers: Item Escape Rate (IER), Rating/ Dashboard/ For Detailed Definitions and Formula refer to SCMH Section
Performance (Global overall performance of the supply base Defects per Unit (DPU) and On-Time (OTD) Color Code 4.6.2 Manufacturing and Production (Make) KPI Detailed
plus Key Supplier (overall figures including all suppliers and Definitions.
Quality and Delivery) individual figures for key suppliers, those
being more critical and/or representing the
highest business volume).

Supplier Capacity It is a measure of the supplier’s capacity Measures the workload required by your suppliers to design, produce and deliver your products vs. Percent % or Ranking For Detailed Definitions and Formula refer to SCMH Section
Rating available or forecasted versus the capacity total available supplier working capacity (A, B, C) 4.6.2 Supplier Management (Buy) KPI Detailed Definitions.
required by the product (service) / program
fulfilment as planned and/or expected by the
Customer
Performances and Shows main non-conformities/findings/ Percentage of non-conformities/issues per type of issues (defect code or root cause codes) and Percentage %, spider For Detailed Definitions and Formula refer to SCMH Section
Audits Results (pareto , weaknesses identified during supplier audits classification per number of occurrences/re-occurrences. chart, bar chart, etc. 4.6.2 Supplier Management (Buy) KPI Detailed Definitions.
repeat occurrence, or operational monitoring, their percentage
evolution), by categories of findings, main re-
(Recommended occurrences - repetitive issues - and
dashboard related associated evolution.
practice)

Supplier Corrective Shows if corrective action plans launched by Measure the effectiveness of root cause analysis and corrective action process. Percent (%) effective For Detailed Definitions and Formula refer to SCMH Section
actions effectiveness suppliers are effective to eradicate issues 4.6.2 Supplier Management (Buy) KPI Detailed Definitions.
indicator and if their implementation dates were in
line with customer target dates.
The effectiveness of the containment,
correction and corrective actions taken that
prevent and avoid a repeat of the issue
within a defined timeframe.
6. In Service (Feedback
from Operations)

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In-Service It measures the non-quality that has been It measures the non-quality that has been exported to the operator or final customer and all Percent % For Detailed Definitions and Formula refer to SCMH Section
Failures/Quality Issues exported to the operator or final customer quality filters have failed to detect and contain. 6.6.2 Customer Support KPI Detailed Definitions.
and all quality filters have failed to detect
and contain.

Number of the item non-conformities or

quality issues (occurrences for a certain
period of time or number of delivered
products) that have not been detected
before delivery to the final operator / final
customer and have generated specific field
actions after entry into service and within the
warranty period.
Early In-Service Number of the item non-conformities or This KPI measures the non-quality that the organization has not been capable to detect and correct Percent (%) or PPM For Detailed Definitions and Formula refer to SCMH Section
Failures/Non-Quality quality issues that have not been detected before delivery and has immediate negative impact on the customer of operator at or very soon 6.6.2 Customer Support KPI Detailed Definitions.
Issues before delivery to the final operator / final after the start of operations of the product. The fact that it is detected so quickly after entry into
customer and have been raised during the service generally increases the customer or operator dissatisfaction because it generally means it
first weeks or months of service. could have been detected easily before delivery so it reveals or is perceived as a weakness in the
quality system which is less the case when similar issues occur much later in the life of the product

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