On Time, In Full [OTIF]

OTIF (On Time, In Full) is a Lean Metric describing the success of delivering exactly what the customer ordered, at the time it was supposed to be delivered. Work with OTIF to Increase customer satisfactionReduce penalty payments Calculation: OTIF [%] = 100 ×...

First Pass Yield [FPY, FTY]

The First Pass Yield (FPY) is a Lean Metric describing the percentage of good parts produced without any rework. Work with FPY to: Work on Right-First-Time and hence prevent defects in the fieldEliminate Process Waste (Rework, Transport, Handling)Work on the...

Days of Inventory [DOI]

Days of Inventory (DOI) is a Lean Metric describing the average time period your inventory stays in the warehouse, typically separated into raw materials, intermediate (Work in Process [WIP]) and finished goods (FG). Work with Days of Inventory to indicate the volume...

Bottleneck

A bottleneck is a process step that determines the maximum overall output. An example of a bottleneck is a process step for which the Cycle Time is greater than Takt Time. Lean is about making processes flow and adjusting bottlenecks to the demand in order to meet the...

Lead Time [LT, OLT]

Lead Time (sometimes also referred to as Order Lead Time) is the total elapsed time from order entry to customer delivery. It can be measured by imaginary riding the order from start to finish. Practitioner’s Tip: Lead Time is what the customer experiences....