All federal contracts are judged for On Time Delivery (OTD) Performance, quality metrics, and in some cases, by their performance to the Material Management and Accounting System (MMAS) goals.
On Time Delivery performance metrics can be especially tricky since the metric is usually measured differently than industry measures it. It is much more stringent. For example, if you have a contract to provide 10 products, and you are able to only ship 9 on time, you are not at 90% On Time Delivery since the order was not delivered in full. According to the federal government, you are at 0% on time delivery.
Since metrics drive performance, you want to make sure you understand exactly how your contract performance will be measured.
Successfully applying metrics to PP&C performance in an effort to streamline activity, eliminate waste (operate in a Lean manner), and drive contract adherence means alignment of metrics throughout your entire operation. The SCOR model (Supply Chain Operations Reference), used by DOD, can help you cascade metrics through your organization from the executive team, through tactical activity, and into day-to-day operations to achieve the performance rating you want. Metrics are configured to align with processes and embed diagnostics so that you eliminate functional area controversy before it begins.
Even though it seems daunting, even smaller companies can create usable metrics. To improve your contract performance through strategic use of metrics aligned with your processes, contact Process & Strategy today.
Our President, Dr. Cynthia Kalina-Kaminsky, trains federal surveillance personnel (DCMA) and also holds industry recognized certifications such as SCOR-P. Let her assist you as you work through what data to collect and which metrics to use to track performance.