Système Excellence

Faurecia

Supply Chain

SUPPLY
CHAIN
INDICATORS

guideline
 Supply Chain Indicators

 SUMMARY

– 1. Stock level (*)

– 2. Raw Material Stock level (*)
– 3. BOP Stock level (*)
– 4. WIP Stock level (*)
– 5. Finished Goods Stock level (*)
– 6. External surfaces
– 7. Logistics Resources
– 8. Exceptional Transports
– 9. Accuracy of Stocks
– 10. Frequent Deliveries
– 11. EDI suppliers
– 12. Misdelivery Rate
– 13. Warehouse Audits
– 14. Supply Chain Savings

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 Supply Chain Indicators

9 Target in the presentation is Faurecia’s average.

9 Targets must be defined with each logistics and

plant manager, and validated by your Industrial
Director.

9 Reporting will be done through Supply Chain Net

before the fifth day of the month.

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 1. Inventory level (*)

 (*) one of the 19 Faurecia ’s Group Indicator.

 Unit: percentage

9 Target: 3%

 Definition:

9 total of raw material, BOP, WIP and FG that

are, for a given period, stored by a company
and that belong to it.

9 Sales: product sales (plant turnover) in the last

12 months.

 Calculation :

9 (Production Inventory x 100)/Product Sales

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 2. Days supply of Raw Material (*)

 (*) one of the 19 Faurecia ’s Group Indicator.

 Unit: days

9 Target: 5 days

 Definition:

9 Stock of all raw material that is bought to

produce the finished products.

9 Note that raw material includes BOP

 Calculation :

9 (raw material inventory for the month M x

number of worked days (M-2, M-1, M)) / (raw
material consumption of the 3 last months (M-
2,M-1,M)).

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 3. Days supply of BOP (*)

 (*) one of the 19 Faurecia ’s Group Indicator.

 Unit: days

9 Target: 3 days

 Definition:

9 BOP: Bought Out Part.

9 the Bought Out Parts stock is raw material that has

already been transformed by supplier. In effect, it is
a raw material that you assemble in the same state
that you bought it.

 Calculation :

9 (BOP inventory of the month M x number of worked

days (M-2, M-1, M)) / (BOP consumption of the last 3
months (M-2,M-1,M)).

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 4. Days in Process (*)

 (*) one of the 19 Faurecia ’s Group Indicator.

 Unit: days

9 Target: 0,5 days

 Definition:

9 In-Process inventory are the parts that are

between two production operations.

9 Product Sales (without margin)= Cost of Sales:

of the last 3 months.

 Calculation :

9 In-Process inventory of the month M x number

of worked days (M-2, M-1, M) / product sales of
the last 3 months (M-2, M-1, M).

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 5. Days supply of Finished Products (*)

 (*) one of the 19 Faurecia ’s Group Indicator.

 Unit: days

9 Target: 2 days (0 days for JIT)

 Definition:

9 All articles for which all operations of

production are finished and that are ready to be
delivered to the customer as products or spare
parts.

9 Product Sales (without margin): of the last 3

months.

 Calculation :

9 Finished Product inventory of month M x

number of worked days (M-2, M-1, M) / product
sales of the last 3 months (M-2, M-1, M).

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 6. External surfaces

 Unit:

9 square meters

 Definition:

9 total of surfaces external to the site.

 Calculation:

9 report of square meters.

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 7. Logistics Resources

 Unit: percent

9 target: TBD

 Definition:

9 percentage of logistics resources compared to

the production site total resources.

9 are included in logistics all the structure, the

UAP logisticians and the handling functions
(forklift drivers, train drivers).

 Calculation :

9 (logistics human resources * 100)/ plant

human resources

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 8. Exceptional Transports

 Unit:

9 kEuros

9 target: 0 k€

 Definition:

9 Monthly costs of exceptional transports for

suppliers and customers because of failures
due to the site activity (Faurecia ’s
responsibility).

9 Are included all the transportations not planed

in the normal trucks planning.

 Calculation :

9 report the cost of exceptional transports of the

month.

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 9. Accuracy of Stocks

 Unit: percent

9 target: 90%

 Definition:

9 Concerns the stocks of Bought Out Parts, Raw

Materials and Finished Goods.

9 Percentage of reliable cycling inventories

(maximum variances of 5% in absolute value)
over the planned inventories.

9 Measure the site performance for stocks

control.

 Calculation :

9 (reliable inventories * 100)/ planned

inventories

9 eg: 90 reliable references / 100 planned

references = 90% of accuracy

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 10. Frequent Deliveries

 Unit: percent

9 target: TBD %

 Definition:

9 ratio determining the importance of daily or

multi-daily suppliers deliveries.

9 Measure the percentage of suppliers delivering

at least once a day compared to the active
suppliers.

 Calculation :

9 number of suppliers delivering at least once a

day / total number of suppliers.

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 11. EDI suppliers

 Unit: percent

9 target: TBD %

 Definition:

9 Ratio determining the integration of suppliers

in our information systems.

9 Measure the percentage of suppliers that are

sending Advanced Shipping Notification (ASN)
thru EDI.

 Calculation :

9 number of suppliers that are sending Advanced

Shipping Notification (ASN) thru EDI / total
number of suppliers.

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 12. Misdelivery Rate

 Unit:

9 Misdeliveries per million

9 Target: 0 (zero)

 Definition:

9 This indicator measures the logistics overall

performance of a site.

9 The expectation is to deliver parts in the right

quantity and at the right time; that means
ZERO short shipments.

9 Since the quality of our parts is measured in

returned Parts Per Million, the logistics
performance is measured in Misdeliveries Per
Million (MPM).

 Calculation method:
MPM = Nb of lines delivered in the wrong quantity or at the wrong time x1,000,000
Total Nb of lines ordered

 Specific case of JIT sites:

MPM = Nb of incomplete vehicles due to misdeliveries x 1,000,000
Total Nb of vehicles assembled

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 13. Warehouse Audits

 Unit: percent

9 target: 95 %

 Definition:

9 Monthly average audit score of the warehouses

realized with the SC net referential.

 Calculation :

9 report the average audit score.

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 14. Supply Chain Savings

 Unit: kEuros

9 target: TBD

 Definition:

9 amount (k€) of the cumulated logistics savings

for the last 6 months.

 Calculation :

9 report the cumulated 6 months logistics

savings.

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 The 14 Supply Chain Indicators

Indicators Unit Target

1 Stocks levels % 3%

2 RM Stocks levels days 5d

3 BOP Stocks levels days 3d

4 WIP Stocks levels days 0.5 d

5 FG Stocks levels days 2d

6 External surfaces m2 0

7 Logistics resources % TBD

8 Exceptional transports kEuros 0

9 Stocks Accuracy % 90%

10 Frequent Deliveries % TBD

11 Suppliers EDI % TBD

12 Misdelivery Rate MPM TBD

13 Warehouse audits % 95%

14 SC Savings kEuros TBD

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