15.1.

24 DELIVERY: OUTPUT RELIABILITY (OR)

Definition Output Reliability (OR) measures the reliability of the Supply Chain to deliver the
agreed Production Plan.
Production plan for the production week n+1 needs to be frozen by the end of
the week n (at least 2 shifts before the start of the new week).
The production plan quantities cannot be adjusted in the KPI calculation once
the production plan has been frozen and released in week n.
Nevertheless, the factory is expected to make every effort to meet changes to
the plan driven by customer demand. Such changes will impact the OR
percentage.
The measurement is calculated on a weekly basis and consolidated each month
using actual weekly weighted volumes.

Formula
∑𝑆𝐾𝑈(𝑝𝑙𝑎𝑛 − 𝐴𝐵𝑆(𝑝𝑙𝑎𝑛 − 𝑎𝑐𝑡𝑢𝑎𝑙)
% 𝑂𝑅 = 𝑥 100
∑ 𝑆𝐾𝑈 𝑝𝑙𝑎𝑛
Measure Percentage [%]

Source & OR will be uploaded in the Alignment Metrics Information System (AMIS) as a
frequency KPI at sub-family level. Frequency: Monthly.

Comments “Over” and “under” production both penalise OR equally, and the data must be
calculated in absolute figures.
Actual production volume refers only to Finished Goods that meet all quality and
hygiene specifications for consumer sale. Any product rejected for quality or
hygiene incidents will penalise the OR.
Completed production orders must be counted in the week the production order
is completed.
Factories must assign clear responsibilities for addressing OR losses e.g.
Planning, Production, Logistics and Materials.
Each Supply Chain stakeholder involved in the process must identify and
implement all the required countermeasures to attack the OR losses under its
own responsibility.

Example

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OR Week 1 = 65%
Comment: Volumes were delivered above the plan, but plan was not delivered as requested
(only SKU D was delivered according to the plan)

OR Week 2 = 84%
Comment: Volumes were delivered below the plan and also quantity planned for each SKU
were not fully met (only SKU A and SKU B were delivered according to the plan)

OR Week 3 = 50%

Comment: Volumes were delivered below the plan and also quantity planned for each SKU
were not met

OR Week 2 = 0% (calculation -82%)

Comment: Volumes delivered were totally misaligned in relation with the planned quantities
for each SKU)

Week 1 Week 2 Week 3 Week 4

Weekly OR 65% 84% 50% 0%
Volume (actual) 1900 1800 1250 1400
Weight 30% 28% 20% 22%

Monthly OR (volume weighted) = 53%

Yearly OR = OR calculated on 52 weeks (actual volumes weighted)

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