Perfect Order Ratio

Perfect Order Ratio measures the ability to deliver products and services as promised. It is the percentage of orders delivered on-time, in-full, undamaged and defect free as a percentage of the total orders delivered.

• Damage free
• Defect free
• On-time
• In-full
• Error-free documentation

An order is only considered perfect if it meets all 5 of these 'Perfect Order' criteria.

Contents

Calculation

Perfect Order Ratio
=
 n Σ Perfect Order i=1
× 100%
n

where

• Perfect Order = 1 (one) if all perfect order criteria were met, 0 (zero) if one or more criteria were not met
• n = Total number of orders or order lines delivered

Unit of measure: %

Importance

A higher Perfect Order Ratio indicates that the company is delivering products and services as promised. A lower percentage is an indicator that a higher percentage of deliveries require one or more corrective actions which ultimately adds costs and leads to customer dissatisfaction.

Notes

• A common calculation error is some multiplication of level-2 ratios (DP11, DP12, DP13, DP14, DP15). This is incorrect as a single order may fail multiple 'Perfect Order' criteria.
• On-time is defined as per the contractual agreement with the customer or, if absent, per the standard published service levels. There are three general on-time rules that a company may apply (listed from most to least strict):
• Customer Request Date = The date the customer requested the delivery to take place
• Original Commit Date = The date you initially promised delivery at order entry/scheduling
• Latest Schedule Date = The last date you calculated and communicated
• In-full is defined as per the contractual agreement with the customer or if absent per the standard published service levels. In certain industries it is common practice to accept an amount within agreed boundaries, e.g. bulk materials in chemical and food industries. The final invoice will contain the delivered quantity (volume, weight, value component).
Community Importance Rating:
4.33

Hierarchy

IDNameLevelx
DPDependability0DP
DP1Perfect Order Ratio1DP1
DP11Orders Damage Free Ratio2DP11
DP12Orders Defect Free Ratio2DP12
DP13Orders On-time Ratio2DP13
DP14Orders In-full Ratio2DP14
DP15Error-free Documentation Ratio2DP15

Process(es)

IDNameLevelx
PPlan1P
P2Plan Source2P2
P3Plan Make2P3
P4Plan Deliver2P4
SSource1S
S2Source-to-Order2S2
S3Source-to-Engineering-Order2S3
MMake1M
M2Make-to-Order2M2
M3Make-To-Engineering-Order2M3
DDeliver1D
D1Deliver-From-Stock2D1
D2Deliver-to-Order2D2
D3Deliver-To-Engineering-Order2D3
Perfect Order Ratio Dependability 11000 1 Dependability, Metric, Perfect Order, Ratio, Damage free, Defect free, On-time, In-full, OTIF, Supply Chain The percentage of orders delivered on-time, in-full, undamaged and defect free as a percentage of the total orders delivered