1. I n t e g r i t y - S e r v i c e - E x c e l l e n c e AF Global Logistics Support Center (AFGLSC) 1 Mike McClure, 402 SCMS/GUSB Order Response Time Mike McClure, 402 SCMS/GUSB 12 Mar 2013

2. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 2 Order Response Time Agenda Review AFGLSC monthly ORT charts Currently distributed to OSD, AFMC, Depot Mx, AFGLSC, DLA Mainly at the working level, with some going up to leadership as requested Presentation normally contains 16 slides of performance, today only 5 slides Review some recent ORT analysis What we are doing with ORT and what is it telling us? Back-up Slides - Improving the CWT Metric ORT developed by AFGLSC to overcome measurement and analysis issues with average CWT Uses both closed and open orders ….. combines two traditional measures, CWT with open BOs Uses customer order date, not closed date ….. real time, not delayed Uses percentile buckets ….. much more accurate than the average of a non-normal distribution

3. I n t e g r i t y - S e r v i c e - E x c e l l e n c e AF Global Logistics Support Center (AFGLSC) 3 Mike McClure, 402 SCMS/GUSB Order Response Time Mike McClure, 402 SCMS/GUSB 13 Feb 2012

4. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 4 Measuring Enterprise Performance AFGLSC 402nd, LIMS-EV Pipeline Analysis Responsiveness to all customer demands AFGLSC, DLA, and Other SOS provides spares to customers Best option is to have the part locally for immediate issue Not all parts available locally, so backorder response time is key to deliver part within customer expectations Order Response Time (ORT) Measures immediate issue rate (same day) and backorder response times

5. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 5 Measuring Enterprise Performance Order Response Time (ORT), an improved CWT look Order Response Time (ORT) previously called Calculated Issue Effectiveness (CIE) Whats the data source? LIMS-EV CWT data Whats different than CWT? Open orders included Performance grouped by open date, not closed date Why ORT? Real-time responsiveness measure Much more accurate indicator of current support Customer focused by measuring percentage of immediate issues and how long backorders are taking True Tier measure can be applied at multiple Organizational levels How to read the chart? The date axis represents customer order date Black line represents total customer orders Solid colors represent % of orders closed within time period White % numbers represents % immediate issues What about the goal? TDD like standard (customer gets x% of parts in y days) Calculated cumulative wait time (by order) What does this metric tell us? How often does a mechanic get a part when they order it? If not, how long does it take to fill an order? How many orders are placed in a given month? ORT shows the real time, direct impact of supply support to the customer

6. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 6 Depot Mx (available by MXW, MXG, Mx shops, workload & supply codes) Order Response Time AFGLSC 402nd, LIMS-EV Pipeline Analysis, DLA Emall

7. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 7 Operational Bases (available by WS, location & supply codes) Order Response Time AFGLSC 402nd, LIMS-EV Pipeline Analysis, DLA Emall

8. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 8 ORT measure the percent of customer orders meeting their TDD standards ORT includes both open & closed orders in the month they were ordered The dotted black line shows the ORT goal (read on the left axis) The white diamonds & values show the percent of orders filled within their TDD standard (read on the left axis) Solid black line shows the count of orders received (read on the right axis) Colors show the percent of orders that either passed or failed during the month Dark Green/Pass – Base Issue = Immediately filled Light Green /Pass – Closed = Filled during the month within standard Light Red/Failed – Closed = Filled, but exceeded their TDD standard Dark Red/Failed – Open = Not filled and have already passed their TDD standard Yellow/Pass – Open = Not filled, but have not exceeded their TDD standard TDD Standards: These standards are specific to the geographic location of the customer, the priority of the order, and the mode of transportation with one exception: AFGLSC uses a 2-day standard for all depot maintenance orders Order Response Time TDD goal applied

9. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 9 Depot Mx Order Response Time AFGLSC 402nd, LIMS-EV Pipeline Analysis, DLA Emall Depot TDD std set to 2 days

10. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 10 Operational Bases Order Response Time – IPG 1 AFGLSC 402nd, LIMS-EV Pipeline Analysis, DLA Emall DoD Operational TDD std

11. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 11 Operational Bases Order Response Time – IPG 2 AFGLSC 402nd, LIMS-EV Pipeline Analysis, DLA Emall DoD Operational TDD std

12. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 12 Order Response Time Additional Analysis Examples

13. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 13 Additional Analysis Examples MICAPs Analysis Source: SMART & LIMS-EV

14. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 14 Additional Analysis Examples Tier down to MD/MDS, Command, Base, SOS, etc. Analysis Source: SMART & LIMS-EV

15. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 15 Additional Analysis Examples Bad Actors (identify NIINs, analyze, work root causes, chart)

16. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 16 Questions?

17. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Air Force Global Logistics Support Center (AFGLSC) 17 Improving the CWT Metric Mike McClure Operations Research Analyst AFGLSC 402 SCMS/GUSB

18. I n t e g r i t y - S e r v i c e - E x c e l l e n c e BLUF 18 Customer Wait Time (CWT) is an established metric, but is sensitive to extreme-value effects, volume bias and is lagging in nature Order Response Time (ORT) has been designed to be more illustrative and actionable of real-time customer support ORT was designed to overcome the shortfalls of CWT

19. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Customer Wait Time (CWT) Defined in DoD 4140.61.3.2…a measurement of the total elapsed time between the issuance of a customer order and satisfaction of that order Data is restricted to closed orders Excludes open orders, cancellations, and partial fills – significant INFORMATION loss! Presented in the month the order was closed, therefore reflects problems after the fact Typically, top-driver issues have already been fixed 19 M1 M2 Order 1 Order 2 Order 3 Order 4 M3 When CWT is calculated in M2, both order 3 and 4 are omitted from CWT calculation

20. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Customer Wait Time (CWT) Typically reported as an average with a target Average is skewed by extremes – Penalty for closing old orders! Missing a target could be a function of a single bad actor out of 100,000+ orders Average is skewed by volume change, immediate issues offset longstanding backorders Significantly more meaningful in percentile buckets 20 Typical CWT distribution Average is a poor representation of the CWT distribution Volume Extreme values

21. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Contribution of Closed Orders to CWT 21 Volume skew Extreme value skew + Next to impossible to interpret real trends Issue date aggregation +

22. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Order Response Time (ORT) Order Response Time The percent of orders falling within pre-designated wait time buckets, DoDs real intent? LIMS-EV CWT data source Both open and closed orders Data attributed to the customer order date Open orders seen as they age, data will update until the 90+ day population establishes itself Performance directly attributed to the period in which it happened, making trend analysis valid Not skewed by extreme values or by large volume changes Goals established using a TDD like standard (customer gets x% of parts in y days) or by calculating a cumulative wait time (by order) 22 Actionable, top-drivers can be restricted to aging open orders, the future drivers of CWT True Tier measure can be applied at multiple Organizational levels Customer-focused, real-time responsiveness measure M1 M2 Order 1 Order 2 Order 3 Order 4 M3 When ORT is calculated in M2, M3 is still unknown, but order 3 and 4 current is used

23. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Order Response Time Examples 23

24. I n t e g r i t y - S e r v i c e - E x c e l l e n c e ORT Top Drivers Example ORT Analysis Found the worst performers for last 18 months for AF SOS ORT Upper left chart is looking at just the bad actors Lower left chart are when bad actors are filtered out AF SOS constraints analyzed from the bad actors are below Bad actors Best performers