KPI Development Methodology – Example Life Cycle Volume Accuracy
{"Image DocumentName": "KPI Development Methodology \u2013 Example Life Cycle Volume Accuracy", "Image ImageDescription": "Elements of KPI. Primary owner- Brands\u2019 Sales and Marketing & Communications Teams, Retailers, End Customer, Supplier\u2019s Production and Shipping Teams. Method \u2013 Market Research, Trend Analysis (historic, present and future), Communication of Demand (Brand) Production & Shipping (Supplier) Management Influence \u2013 Brand\u2019s Planning Teams, Retail Forecasting Teams, Supplier\u2019s Production, HR and Purchasing Teams. Type of Indicator \u2013 Leading. Potential Causes \u2013 Fluctuating Retail Demand (Retail / End Customer), Overly Aggressive Forecasting (Brand), Inadequate Resource Planning (Supplier),  Unusual or Emergency Situations. Comments \u2013 Requires monthly reporting of clearly defined and agreed upon metrics. Steps to take. Establish a trusting business relationship with clear and transparent communication between all parties. Plan to EICC working hours requirement. With the Code in mind, define terms & conditions for the Retail/Brand relationship and the Brand/Supplier relationship (upside flexibility, lead times, committed capacity etc) Establish agreed upon reporting metrics (forecasting signals, production planning methods, shipment plans) Ensure adequate resources are in place to meet demand (Supplier) In an  Unusual or Emergency Situation, Supplier tracks any excessive working hours as a result (per worker, per week) Set up formal review of excessive working hours KPI data (Brand and Supplier) Supplier develops a recovery plan to meet EICC requirement for excessive working hours.  Definition of Unusual or Emergency Situation - Per EICC Working hours Guidelines: Unpredictable events that require overtime in excess of legal or EICC limits. Such events cannot be planned for or foreseen. Equipment breakdown, power failure or other emergency resulting in prolonged shutdown of a production line. Unforeseen raw material or component shortages or quality issues that shut down production. Excessive overtime is then needed in both situations to recoup lost production time and meet customer commitments.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}