Difference between revisions of "DP11"

Latest revision as of 14:48, 10 June 2017

Orders Damage Free Ratio measures the ability to deliver goods free of damage. 'Damage Free' requires both product and packaging to be free of damage. A damaged product is a product that has exterior damage and typically functions as expected. Damage is generally caused by Deliver processes (handling and transport).

An order or delivery is considered damage-free if all items (product and packaging) delivered were free of damage. If one or more items are damaged the order or delivery is not considered damage-free.

Calculation

where

• Delivered Damage Free = 1 (one) if all items were delivered damage free, 0 (zero) if one or more items were damaged
• n = Total number of orders or order lines delivered

Unit of measure: %

Importance

A higher percentage results in less corrective actions, such as discounts, returns, replacements, repairs.

Notes

Orders Damage Free Ratio does not qualify the level of damage on a delivery. The following interpretations are incorrect:

• 10% of the goods were damaged: Orders Damage Free Ratio = 90%
• 1% of the surface of the product had scratches: Orders Damage Free Ratio = 99%

The correct value for both examples is 0%.

5.00

(one vote)