SCMH Section 5.1.

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Delivery Metrics Definition Guidance

Table of contents

1. Introduction

2. Scope

3. Applicability

4. Convention

5. Normative Reference

6. Terms, Definitions and Abbreviations

7. Conformity Metrics

7.1 Escape

7.1.1 Item Escape Rate

7.1.2 Defects per Unit

7.2 Concessions

7.2.1 Concession Rate

7.2.2 Concession per System

8. Punctuality

8.1 On Time Delivery

8.2 Delay Average

9. Frequency and Period of measurement

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1. Introduction
The International Aerospace Quality Group proposes metrics definitions for Key Performance
Indicators used to describe on time and on conformity deliveries of services and products. Unique
definitions aim to harmonize the way customers and suppliers assess together delivery
characteristics and to create a culture of performance measurement.

2. Scope
This document provides guidance for the definition of the following performance metrics:

Conformity Metrics (Non-Conformance Escape / Concessions)

 To measure delivered conformity level of items (at the customer)
 To measure produced conformity level of items (at the supplier)

Punctuality Metrics (On Time Delivery / Delay Average):

 To measure delivered punctuality level of items (at the customer)
 To measure the performance degree related to the late delivered items (at the
supplier)

The metrics should be used by suppliers for measuring performance, driving internal continuous
improvement and for communication with their customers.

This guideline aims to satisfy the expectations of the International Aerospace Industries in
Commercial, Military and Space activities.

3. Applicability
Unless otherwise specified by contractual requirements, this guideline is proposed to all
International Aerospace and Defense companies and their suppliers worldwide. The document
can be used for self-assessment and to measure industrial performance to assist in driving
continuous improvement.

4. Convention
The following conventions, apply in this document:
 The word “should” indicates a strong recommendation with some flexibility allowed in
compliance methodology. It is recommended to customers or suppliers choosing other
methods to satisfy a “should” to be able to show that their approach meets the intent and
the spirit of this document.
 Words “typical”, “example”, “for reference” or “e.g.” indicate suggestions given for
guidance only.
 “Notes” are used for additional clarifications.
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 Words or phrases with specific meaning pertaining to this document are capitalized and
defined in Section 6, Definitions.

5. Normative Reference
This guideline incorporates provisions from other publications. These references are indicated at
the appropriate places in the text and the publications are listed below. For undated references
the latest edition of the publication referred to applies.

AS/EN/SJAC 9100 Quality Systems - Model for quality assurance in design,

development, production, installation and servicing

AS/EN/SJAC 9131 Quality Management Systems – Non-conformance documentation

ISO8402 Quality Management and Quality Assurance – Vocabulary

6. Terms, Definitions and Abbreviations

For the purpose of this document, the definitions given in ISO 8402 and the following definitions
apply:

CR Concession Rate
CPS Concession per System
DPU Defects per Unit
DV Delay Variance
LRU Line Replaceable Unit
NC Non Conformance
IER Item Escape Rate
NFF No Fault Found
OTD On Time Delivery
PO Purchase Order
PPM Parts Per Million
SPD Supplier Promised Date

6.1 Requirements: Requirements refer to technical specifications, as defined on drawings, as

well as commercial specifications, as defined in the purchase order.

6.2 Items: Items refer to parts or lots.

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7. Conformity Metrics

7.1 - ESCAPE:
Escape is a non-conforming item that has reached a customer of the company. This metric
represents the conformity delivered to the customer from delivery to the end of the operation
phase. It is split into two metrics: Conformity for Items, which is the ‘Item Escape rate’ and
conformity for Systems, which is the ‘Defects per Unit’.
Note: Concession and Product Quality Escape differ with respect to the point in time when a non-
conformance is detected during the product life cycle: Concession is relevant before delivery to
the customer while Product Quality Escape is applicable after delivery to the Customer (ref 9131).
Note: The metric should refer to the production rather than the development phases of a project.
Note: Above 1000 items delivered per year use PPM in IER indicator. For low volume deliveries
(below 1000) use DPU for systems, or use only number of escapes for non-systems.

7.1.1- Item Escape Rate;

This metrics is used for Items and is measured during the delivery phase.

Number of non-conforming items under company liability

IER =
Number of items delivered by the company during the period

Rate expressed in parts per million (PPM) by multiplying the ratio by 1 000 000).

Detailed explanations:

 Items: products / parts / components / documentation, and service in the broad

sense, as defined in the purchase order.

 Items delivered: all the items delivered to a specific customer in case of a one to
one assessment. All the items delivered by one supplier to several customers and
averaged for a global assessment.

Note: the units (feet/meter, liter/quart, piece, etc.) used to calculate the number of
items, are those defined in the purchase order.

 Non-conforming items: an item that has one or more characteristics that do not
fulfill the requirements.

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Note: Items can be: rejected by customer, called back by the company, scrapped by
customer with the company agreement, reworked by the company in customer plant,
or refused by customer during an onsite acceptance inspection.
Note: returned items for check or upgrade to the last standard, are not to be
regarded as non-conforming items.
 Items under company liability: items rejected by customer after investigation.
Evaluation where liability is unclear (e.g. No Fault Found, damage by customer or
transporter) are not to be included in the calculation.

7.1.2 - Defects per Unit; this metric is used for Systems; it could be used in the delivery
phase, integration phase or the operation phase.

Number of systems defects, under company liability

DPU =
Number of systems delivered by the company during the period

Rate expressed in unit.

Detailed explanations:

 Systems: assembly of products, operating in a common way and in a permanent

interaction, which could not normally be rejected / returned by customer in its entirety (e.g.
engines, Aircraft Electrical/Electronic Distribution Sub-Systems, seats, etc)

In the case of complex systems, it could be relevant, to replace the ‘number of systems’ of
the denominator, with the number of ‘sub assemblies’ of the system delivered. This is to
be defined in agreement with the customer.

 Systems delivered: all the systems delivered to a specific customer in case of a one to
one assessment. All the systems delivered by one supplier to several customers and
averaged for a global assessment.

 System Defects: one or more characteristics that do not fulfill the system requirements
(ref 9131).

Note: Systems can be: rejected by the customer, called back by the company, scrapped
by the customer with the company agreement, reworked by the company in customer
plant, or refused by customer during an onsite acceptance inspection.
Note: returned systems for check or upgrade to the last standard, are not to be regarded
as non conforming systems.
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 Defects under company liability: defects identified by customer after investigation.

Evaluation where liability is unclear (e.g. No Fault Found, damage by customer or
transporter) are not to be included in the calculation.

7.2- CONCESSIONS: Written authorization to use or release a product that does not conform to
the specified requirements. A concession authorizes the internal/external supplier or
subcontractor to ship a product that has specific non-conforming characteristics (ref 9131).

Note: Concession and Product Quality Escape differ with respect to the point in time when a non-
conformance is detected during the product life cycle: Concession is relevant before delivery to
the Customer while Product Quality Escape is applicable after delivery to the Customer (ref
9131).
Note: the metric should refer to the production rather than the development phases of a project.
Note: Note: Above 1000 items delivered per year use PPM in CR indicator. For low volume
deliveries (below 1000) use CPS for systems, or use only number of concessions for non-
systems.

7.2.1- Concession Rate

Number of concessed items delivered

CR =
Number of items delivered by the company during the period

Rate expressed in parts per million (PPM) by multiplying the ratio by 1 000 000.

Detailed explanations

 Items: products / parts / components / documentation, and service in the broad sense,
as defined in the purchase order.

 Items delivered: all the items delivered to a specific customer in case of a one to one
assessment. All the items delivered by one supplier to several customers and
averaged for a global assessment.
Note: the units (feet/meter, liter/quart, piece, etc.) used to calculate the number of
items, are those defined in the purchase order.
Note: It should refer to production and spare parts, not indirect services.

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 Concessed items: a non-conforming item that is then accepted by the design

authority, or external regulator, or customer.

7.2.2- Concession per System

Number of concessions raised on systems

CPS =
Number of systems delivered by the company during the period

Rate expressed in unit.

Detailed explanations:

 Systems: assembly of products, operating in a common way and in a permanent

interaction, which could not normally be rejected / returned by customer in its entirety
(e.g. engines, Aircraft Electrical/Electronic Distribution Sub-Systems, seats, etc).

In the case of complex systems, it could be relevant; to replace the ‘number of

systems’ of the denominator, with the number of ‘sub assemblies’ of the system
delivered. This is to be defined in agreement with the customer.

 Systems delivered: all the systems delivered to a specific customer in case of a one
to one assessment or delivered to a customer’s sample group in case of global
assessment.

 System Defect: one or more characteristics that do not fulfill the system requirements
(ref 9131)

Note: Systems concessions can be driven by: customer rejects, systems called back
by the company, systems reworked by the company in customer plant, or after refusal
by customer during an onsite acceptance inspection.

8. PUNCTUALITY

8.1 - ON TIME DELIVERY

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Number of Purchase Order lines / items due and delivered on time in the period
OTD =
Number of Purchase Order lines / items due in the period

Indicator expressed in percentage (%) by multiplying the ratio by 100.

Detailed explanations:

 Items: products / parts / components / documentation, and service in the broad sense, as
defined in the purchase order.

 Purchase Order (PO) lines: all purchase order lines regarding items, as defined here-
above, for a specific customer, in case of a one to one assessment or for a customer’s
sample group, in case of global assessment, are taken into account

 PO lines / items due: all purchase order lines / items due to a specific customer in case
of a one to one assessment or due to a customer’s sample group in case of global
assessment.
Note: for PO lines calculation, any line not completely delivered is considered as not
delivered.

 On time: PO lines / items delivered early or on time as defined in the agreed PO (Supplier
Promised Date - SPD).

Note: transportation is to be taken into account according to the PO clauses. That means:
“Departure date” + “transportation duration” ≤ “Supplier Promised Date”

8.2- DELAY AVERAGE

Cumulative number of days for all late deliveries in the period

DV =
Number of late deliveries in the period

Indicator expressed in unit

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Detailed explanations:

 Items: products / parts / components / documentation, and service in the broad sense, as
defined in the purchase order.

 Purchase Order (PO) lines: all purchase order lines regarding items, as defined here-
above, for a specific customer, in case of a one to one assessment, or for a customer’s
sample group, in case of global assessment, are taken into account.

 Deliveries: all purchase order lines /items (as defined here-above) for a specific customer
in case of a one to one assessment or for a customer’s sample group in case of global
assessment, delivered during the period.

 Late: PO lines /items delivered late as defined in the agreed PO (Supplier Promised Date
- SPD).

Note: transportation is to be taken into account according to PO clauses. That means that a
delivery is late if: “Departure date” + “transportation duration” > “Supplier Promised Date”.

9. Frequency and Period of Measurement

Frequency of measurement is recommended to be done: Monthly

Period: 6 months rolling average or in exceptional case 12 months based on volume of parts

For some specific uses yearly averages may be published in order to support yearly customer –
supplier meetings for example.

-End of Document-