OTIF

The OTIF Factor (On-time In-Full) is a KPI that signifies an organisation’s ability to supply “All Products and All Quantities” mentioned on a “Purchase Order” received from a customer within the date mentioned.

OTIF Graph

The above graph indicates that the OTIF Factor has consistently been rising, which is good. However, the OTIF Factor cannot be seen in isolation. A high OTIF can be easily achieved by increasing the lead time. So, the OTIF graph must be seen along with the “Number of Days to Deliver” an order graph.

Number of days to deliver

If the above graph shows a steady downward trend indicating that the lead times are being reduced while the OTIF is increasing, then that would mean something.

There is though one other point that must be taken into consideration. Have we over stocked in order to improve OTIF and reduce Lead Time? Hence the need of a 3^rd graph viz. “Value of Inventory”.

Value of Inventory

If the above graph shows a downward trend or at the bare minimum a flat line, then that would vindicate any doubts on a good OTIF Factor.

I would however add one final graph to nail the OTIF Factor and that is a graph of Sales Returns just in case the cynics suggest that a high OTIF may well be a result of incorrect shipments. 

Sales Returns

If the above graph shows a flat line or a downward trend, then no aspersions can be laid on the OTIF Factor.