Demand Driven Indicators

This form is intended to provide us with a baseline of information for our Demand Driven Value Assessment. Please complete as much information and once complete click on Submit. If you wish to complete over several sessions, click on Save and continue later, and then enter your email address as requested. You will then be emailed a link that you can use to access and update the information within 30 days.

Company Name*
Name*
Email*
1. Response Data
Response times provide a background to overall manufacturing response through the entire facility. The production lead-time is to include all scheduling and queue time, as well as the actual production time when work is being performed. This is not the optimum lead-time in an expedited condition, but rather the average time from when the first subassembly work is begun until the finished unit is back-flushed from production. The customer quoted lead-time is to be considered the average, considering market expectations. Please develop this average based on product-market position; i.e., make-to-stock, design/configure/make-to-order with market-driven customer lead-time segmented by order policies where applicable. As an example would be customer response that includes raw material availability as well as production response for a make to order policy.
Total Production Lead Time
Total Product Cycle Time
Customer Quoted Lead Time
Additonal Production Lead Time Information
2. On-Time Delivery
On-time delivery projections are to be based on the customer request date, not the acknowledgement date given after the customer order is placed nor the actual delivery date when no customer date was requested or documented. For items with very short customer lead times, the order fill rate is the percentage of sales order line items shipped on time compared to the total number of line items. This can be aggregated over a time horizon, weekly or monthly for example.
On-Time Shipments to Order Request Date
Order Fill Rate
On-Time Shipments to Commit Date
3. Inventory Information
Inventory data is to reflect the average monetary amounts. Cyclic or seasonal businesses should also include the peak and trough levels as well as the typical length or duration of these peaks and troughs. In the case of a seasonal business, this would be annual variation, while a cyclic business could be either annual or over multiple years, which should also be stated as backup information. In-process inventory needs to be differentiated from raw material and/or purchased components. It is not unusual that some lack of inventory visibility between raw/purchased and in-process inventory exists. This typically occurs when there is no transaction between incoming receipt of materials and in-process commencement of work. In this case, please estimate the reasonable percentages of inventory value between raw/purchased and in-process inventory values.
It is critical to document the method by which these numbers were determined. Finished goods numbers should be split between the manufacturing site and distribution warehouses. Inventory carrying cost should include the following categories at a minimum; the cost of borrowing money to purchase inventory, whether done at the local or corporate level, taxes, insurance, facilities, equipment and handling, scrap and obsolescence, and any significant opportunity cost pre-empted due to working capital being tied up in inventory. Please use representative annual figures for all numbers.
Average Raw Material Inventory Value
Average In-Process Material Inventory Value
Average Finished Goods Inventory Value
Average Distribution Inventory Value
Slow Moving & Obsolete Inventory Value
Inventory Cost-to-Carry (%)
Average Material Turns
Additional Inventory Information
4. Financial Information
This data is used to determine key financial metrics and will use the current reporting periods and structure as a baseline. The site/business P&L and balance sheet should be used as the baseline and reference for all of the financial data provided. The past 12 months of data is recommended including the most recent annual reporting levels.
Annual Net Sales
Cost of Goods Sold (COGS)
Projected % ∆ Sales/Output Over 24 Months
Average Accounts Receivable
Average Accounts Payable
Product Cost: Material %
Product Cost: Overhead %
Product Cost: Labor %
5. Product Information
A historical inventory activity query on the current inventory control system for the last 2-3 years to identify stock-keeping units (SKUs), field-replaceable units (FRUs or spare parts) and options (in a design/make/configure-to-order environment). Make sure that marketing and sales reviews this list for validation.
# of Active Product Stock-keeping Units (SKU)
# of Active Field Replacement Units (FRU)
# of Component Part Numbers
Quantity of Product Stock-keeping Units (SKUs) Sold in Last 12 Months
Quantity of Field Replacement Units (FRUs) or Spares Sold in Last 12 Months
Annual New Product Introduction (NPI) Rate
6. Manufacturing System Information
Describe the current manufacturing system and associated hardware/software configuration. Manufacturing floor space should include all direct manufacturing space as well as any space occupied by in-process and finished goods inventory. If separate distribution locations are utilized, delineate those and include specific square units of space taken.
Current Manufacturing Method(s)
Planning & Execution System(s)
Number of Manufacturing Facilities
Number of Distribution Sites or Locations
Manufacturing Floor Space (Specify UoM)
Number of Working Days per Year
Number of Shifts per Day (by Major Area)
Number of Open Work Orders
Value of Sales Orders in Backlog
7. Manufacturing and Capacity Information
Take a representative daily rate mitigating seasonality for the current/average daily production. If extreme seasonality and/or cyclic fluctuations occur, note the peak and troughs as well as typical durations as additional data. The desired capacity can be expressed in units or as a relative percentage versus today’s daily rate.
Current Avg. Daily Manufacturing Capacity
Desired Daily Capacity, 18-24 Months
Current Employees - Total in Manufacturing
Current Employees - Direct Labor
Avg. Direct Labor Annual Wage (Burdened)
Direct Labor Overtime Percentage
8. Manufacturing Support Information
Annual indirect and salary staffing and overtime amounts should be taken for the past 12 months of fiscal reporting periods and should current staffing. Annual monetary amounts spent in expediting raw materials/purchased components as well as product shipments are best by monetary units, or as the total shipments and shipping units or both. The number of planners, procurement team members and shipping/distribution/supply chain administrative employees should be documented.
Current Employees – Indirect Labor
Current Employees - Manufacturing Salaried
Annual Indirect and Salaried Overtime
Annual Expediting Costs for Materials/Shipments
9. Quality Measurements
(9) Quality information should reflect the environment. In high volume, lower in process unit cost manufacturing, units may be scrapped rather than reworked, while in lower volume and/or higher in process unit cost, rework is often attempted several times before scrapping would occur, if ever. These costs can be taken as a percentage of the material cost of goods sold (MCGS), or the cost of goods sold (COGS), total internal and external warranty expense, etc. Please state the source of data. Numbers of units’ reworked/scrapped or defects per unit are also appropriate. In labor-intensive environments, please estimate the percentage of rework/scrap that was caused by unintentional operator error, and separate this from total rework/scrap figures. Please detail the average number of purchased raw material or components shortages daily, and document the same for any internal, manufactured component shortages attributable to an inadequate response from upstream processes.
Average Rework Cost per Year
Average Scrap Cost per Year
Average Warranty Cost per Year
Quality Cost Basis (MCGS or COGS)
Avg. # of Daily Component Shortages - Manufactured
Avg. # of Daily Component Shortages - Purchased
10. Demand Execution
Order release frequency is the number of days or hours between the generation or update of order demand being communicated as a cycle from the previous time of update to the production areas from the planners or order management processes. Order release period refers to the time that production volume is held fixed between order release frequency. This can vary by production area and product or part based on order activity, volume and resource constraints. These schedule structures should be defined if they are used in the production planning and control process. The types of orders used in production will be reviewed with these planning parameters which typically include work orders, sales orders, or replenishment communications from distribution or VMI all placed under a production release cycle. Planning cycle periods are how often the generation or update of sales plans, production plans, and supplier part plans are made and how far out in time do these planning areas define future demand.
Order policies define how products are managed to service customer demand, typical policies will be MTS Make-to-Stock, MTO Make-to-Order, ATO Assemble-to-Order, CTO Configure-to-Order and ETO Engineer-to-Order. Backlog policy defines how long you are willing to make customers wait for products. This current policy for customer orders that are not immediately fulfilled, or policy of maintaining a fixed number of units/dollars/or time period that is desired as an overall business strategy or plan. Finished goods policy is the level of finished products inventory that customer service, logistics, or planning groups will try to keep available for customer demand typically associated to make to stock products. Demand allocation is the process of how orders placed for products are managed when the product is either not available to ship on the date requested, or the date requested is in the future and product cannot be shipped until the requested date. Allocation directly effects materials availability and inventory control methods which will be reviewed during the assessment.
Planning Cycle Period (SIOP, CPFR)
Master Schedule Release Period
Number of Weekly Schedule Changes
Finished Goods Policy
Order Policies (MTS, MTO, ATO, CTO, ETO)
Production Scheduling Method
Production Order Release Frequency
Backlog Policy
Average Number of Orders on Backlog
11. Supplier Information
The supplier section is based on active suppliers and parts to support the production or manufacturing by supplying components, packaging material, VMI, sub-assemblies, etc. Supplier performance measurement is defined by On-Time Delivery (OTD) %.
Total Number of Active Suppliers
Suppliers - % Domestic
Suppliers - % International
Number of Purchased Components/Raw Materials - Domestic
Domestic Supplier On-Time Delivery Performance (OTD %)
Domestic Supplier Demand Signal - MRP %
Domestic Supplier Demand Signal - VMI %
Domestic Supplier Demand Signal - Kanban %
Domestic Supplier Demand Signal - Other %
Description of Other Domestic Supplier Demand Signals
Number of Purchased Components/Raw Materials - International
International Supplier On-Time Delivery Performance (OTD %)
Int'l. Supplier Demand Signal - MRP %
Int'l. Supplier Demand Signal - VMI %
Int'l. Supplier Demand Signal - Kanban %
Int'l. Supplier Demand Signal - Other %
Description of Other International Supplier Demand Signals
12. Additional Information
Other Relevant Information
Please email any further related information such as Organization Charts, Plant Layouts etc.

Save & Continue Later

Demand Driven Indicators

Demand Driven Indicators

1. Response Data

2. On-Time Delivery

3. Inventory Information

4. Financial Information

5. Product Information

6. Manufacturing System Information

7. Manufacturing and Capacity Information

8. Manufacturing Support Information

9. Quality Measurements

10. Demand Execution

11. Supplier Information

12. Additional Information