The Key Performance Indicators are tools used to evaluate the results of the processes and help the manager and his team to identify possible bottlenecks and other problems that impede the achievement of the objectives.
The On Time In Full (OTIF) is a performance indicator used to monitor the quality of deliveries of products . The idea is to always increase customer satisfaction with the service provided by the company.
On Time : it is linked to the term (date and time) and the location that were previously agreed with the customer.
In Full : in this case, the products must be delivered within the specifications passed to the customers at the time of purchase (dimensions, quantities, quality, integrity, among others).
OTIF is the KPI that helps to arrive at the perfect order concept. In other words, the order is to be delivered on time, and meeting all customer expectations - which contributes to increasing satisfaction levels and increasing the loyalty opportunities of these people.
First of all, it should be noted that the monitoring of this indicator must be done with each element being monitored separately, therefore On Time x In Full . To better exemplify, suppose that:
your company makes 95% of deliveries on time: On Time 0.95;
the number of orders delivered within specifications (without damage, loss, among others) is 90%: In Full 0.90.
From this data, the percentage of perfect orders that are sent to your customers will be: OTIF = 0.95 x 0.90 = 0.855 = 85.50%