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How ambitious is your OTIF target?
Companies embarking on OTIF as a key measure of their Supply Chain performance often struggle to set an improvement target. The first time OTIF measurement itself gives them a shock… I have heard surprised and shocked voices when they find that they are actually operating at 30% OTIF. Anyway, better late than never.
The companies operating at 30% OTIF often set their target at say 35%. Similarly, companies who have been tracking and improving their OTIF for some time and now operating at 80% set a target of 85% or so.
How ambitious should our OTIF target be?
A small incremental target normally yields minor improvement ideas which are nothing but tweaking the current processes here and there, and tightening their execution.
If you want to make fundamental improvement in your underlying supply chain processes, I would suggest setting a really ambitious, impossible-looking target. My recommendation would be 100% OTIF.
This target will force the team to question their current policies, processes and practices. More importantly, the underlying assumptions.
You will be surprised by the ideas that are generated and their positive impact on the OTIF performance! Try it…