Start Compute Corporate Metrics

Purpose:

Corporate Metrics enables users of the Shop Order, Service (Work Order), Client Order and Purchase Order modules to evaluate inventory metrics by running this function.

The Compute Corporate Metrics may also be use to recomputation of the Reorder Level and Order Up To (Min/Max) fields. Typically, this would be done for a period of less than a year. For example, we could capture historical startup parts usage from the previous spring and use them to generate appropriate Reorder/Order Up To levels to assure an adequate stock new spring.

This re-computation will ONLY occurs if you check the Compute box for Min/Max (Reorder Level/Order Up To) in the Compute Corporate Metrics Checklist screen. If this option is checked, the software does not allow ANY other option to be checked, and also validates that the Stock days (from the range screen) is greater than 0. Note that the date range specified on the range screen would be for prior historical periods therefore wouldn't be applicable to any other metric calculations.

If the Show Log option is selected on the range screen, the system will display the original min/max and the new min/max for each part calculated.

Usage:

This function will compute the various metrics for the date range that you select and store them in the appropriate records.

Registries:

See Registry Start Compute Corporate Metrics for a registry to set initial values for this function's range screen.

See Registry Compute Metrics for an option to refine the calculation of Inventory Turns.

Range Screen: Important Fields

Start Date: End Date:
Enter the date range for which you wish to compute metrics and Reorder/Order Up To levels. These fields are required. The date range determines the period for which the usage is calculated for.

Lead Time Add On:
Enter the number of days that will be added to the system-calculated Purchasing Lead Time to allow for internal time needed to create and receive a purchase order. This field This field is used in conjunction with the average daily use of the item (by Location) to calculate the Reorder Level as follows:

[Average Daily Quantity Used or Sold] *([Vendor Lead Time] + [Lead Time Add On])

Stock Days:
The number of days the user would like to keep inventory on hand. This field is used in conjunction with the average daily use of the item (by Location) to calculate the Order Up To level as follows:

[Average Daily Quantity Used or Sold] *[Stock Days]

 

Inventory Item Id:
If this field is blank, metrics will be computed for all inventory items which may take a significant amount of time. To limit the computation, enter an Item or list of (comma-separated) items in this range.

Inventory Group:
This range allows users to run the calculation for a select group of inventory.

Location Id:
If completed, the Inventory Item Location fields (including the Turns field) will only be updated for the specified location. The Location Id field will not be used for any other purpose.

Inventory Group:
This range may be completed to filter the Inventory Items that are to be updated.

Show Log:
If this box is checked, a diagnostic log of the computations is displayed in a pop up box.

 

image\go.gif Click Go to display the next screen.

List Screen: Important Fields

The list screen for this function will contain a check box for each metric described below. The corresponding metric will be computed only if the corresponding box is checked.

Compute Purchases On Time

Purchasing Lead Time for a Vendor /Item will be displayed in the Percent On Time Requested and Percent On Time Promised fields on the Inventory Item Viewer’s Vendors tab.

The Purchasing On Time statistics for a Vendor/Item will be computed from your Purchase Orders by comparing the Request / Promised PO fields with the date the items are actually received.

Compute Sales On Time

Compute Inventory Turns

Turns are computed both on an Inventory Item and on an Inventory Item / Location basis.

Inventory Item Turns for the item in general are displayed on the Inventory Performance tab. Inventory Item / Location turns appear on the Inventory Item Viewer’s Locations tab; click the magnify button to view the Turns detail for his location.

The number of turns over a given period will be computed as the total usage over the period divided by the average on-hand quantity over that same period.

If the period is other than one year, the annualized turns number is computed as the number of turns for the period multiplied by the number of periods in the year. The annualized number of turns that will be saved in the Inventory Item and Inventory Item Location tables. The number of turns (general and by Location) appear in the Stock Status Report.

Compute Min/Max (Reorder Level/Order Up To)

The Reorder Level/Order Up to computations will ONLY occur if this box is checked. If this option is checked, the software does not allow ANY other option to be checked, and also validates that the Stock days (from the range screen) is greater than 0.

When you click the Go button, the selected Metrics will be generated and Reorder / Order Up To levels calculated on the Inventory Item Location tab.

Compute Manufacturing Lead Time

Manufacturing Lead Time is an indication of the number of days required to manufacture an item; it will be displayed in the Inventory Item viewer.

The manufacturing time for a shop order is computed as the number of days between the Entry Date (the Open Date) and the Close Date of the Shop Order. A Shop Order that was closed on the same date it was opened will have a manufacturing time of zero.

The Manufacturing Lead Time for an item is computed as the average manufacturing time for all Shop Orders for the item. Only Shop Orders that were both opened and closed within the date range will be considered in performing this calculation.

The suggested usage period is one year. .

Sales Lead Time

Sales Lead Time is an indication of your organization’s ability to fill Client Orders. It is displayed in the Inventory Item viewer.

The lead time is computed as the number of days between request and ship dates for the item. The request date for an item is taken from the order line’s ‘Date To Ship’ field. If this field is blank, the order will be considered an ‘ASAP’ order and the request date will be taken from the order’s ‘Date Ordered’ field.

If multiple shipments were required to fill the order, the lead time will be computed as the ‘weighted average’ of the lead times for each shipment. For example, consider an order that was fulfilled in two shipments. The first shipment was for a quantity of 90 lbs and was fulfilled in 3 days with the remaining 10 lbs filled 4 days later. The lead time will be computed as
 ((3 * 90) * (7 * 10)) / 100 = 3.4 days.

Only COP lines having complete shipments are considered when computing Sales Lead Time.

Only orders within the ‘sample period’ will be considered in performing this calculation. The suggested usage period is one year (i.e. within 365 days prior to the running of the report).

Purchasing Lead Time

Purchasing Lead Time is an indication of your vendors’ ability to fill your Purchase Orders. Purchasing Lead Time for a Vendor /Item will be displayed in the existing ‘Lead’ field on the Inventory Item Viewer’s Vendors tab.

Purchasing Lead Time for a Vendor/Item is computed from your Purchase Orders. The lead time for an item on a Purchase Order is computed as the number of days between Date Requested and received dates for the item. If the Date Requested field is left blank, the PO will be considered as an ‘ASAP’ order and the request date will be taken from the PO’s ‘Released’ date field.

If multiple shipments were required to fill the order, the lead time will be computed as the ‘weighted average’ of the lead times for each shipment. Only PO lines having complete shipments are considered when computing Purchasing Lead Time.

Only orders entered within the usage period will be considered in performing this calculation. The suggested usage period is one year (i.e. within 365 days prior to the running of the report).