Sunday, August 29, 2010

Order Accuracy Measurement

Order Accuracy Measurement calculates the accuracy of each process from receiving Purchase orders from customers upto delivery of material and invoicing. Whenever there is an error in shipment a credit note is issued to the customer. When the credit note is issued it should require a "Reason Code" . This reason code helps analyze error rates or accuracy of each activity.
The various examples of Reason Codes issued are Incorrect Sales Order,  Pack and Ship inaccuracy or Damage in  transit.

Formula for calculating Order Accuracy Measurement :
1. Order Entry Accuracy = 99.2%
2. Pick and Ship Accuracy = 99.0%
3. Ontime delivery = 95%
4. Shipped without damage = 98.5%
5. Invoicing Accuracy = 99.6%

Therefore Order Accuracy Measurement = 99.2 x 99 x 95 x 98.5 x 99.6 = 91.53%

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