Work order cycle time
Work orders that take far longer from release to completion than their routing needs.
Measure: Work Order Cycle TimeOracle Fusion Manufacturing
Shorten production lead time. Release the cash sitting on the shop floor.
Estimate the work in progress a shorter production cycle would release, and see where incomplete work definitions, rework and late work orders add days in Oracle Fusion Manufacturing.
82+outcomes delivered for Orbrick clients
500K+life-hours saved
Production lead time calculator
What is a shorter production cycle worth?
Less time in production means less work in progress. The calculator sizes the WIP released and the carrying cost avoided each year.
$
Material, labour and overhead for production in scope.
days
Work order release to completion, averaged.
days
A realistic target for your routings and product mix.
%
Storage, insurance, obsolescence, shrinkage and cost of capital.
What stretches production lead time
Where production days pile up.
Each one keeps work, and the cash in it, on the shop floor for longer.
Incomplete work definitions
Work orders released without resources, or with routings that do not match the item structure.
Measure: Work Order w/o Resources %; Item Structure Matches with Work Definition %Late completion
Work orders finishing after their planned date, delaying everything behind them.
Measure: On-Time Production Rate (%)Rework
Jobs sent back for rework, adding days to the order and to the queue behind it.
Measure: Rework Rate (%); First Pass Yield (%)About the calculator
Straight answers.
The calculator sizes a possibility. Your Oracle Fusion data is what turns it into a number you can act on.
Request a Value DiscoveryWhy does the calculator count only half of production cost?
Work in progress carries, on average, about half its finished cost while it moves through production. Materials go in at the start and labour and overhead build up along the way. Using full cost would roughly double the result.
Does a shorter lead time also win sales?
Often, through shorter quoted delivery times. The calculator leaves that out because it depends on your market, so the number stays defensible.
Is working capital released an annual saving?
No. It is a one-off cash release. The carrying cost released is the recurring annual benefit.
How accurate is the calculator?
It is only as accurate as the assumptions you enter. It is designed to size a possibility, not to produce an auditable number. A Value Discovery replaces your assumptions with evidence from your own Oracle data.
Further reading
More on Oracle Fusion Manufacturing
-
How Oracle SCM Cloud Cuts Production Lead Time (And Why Your Factory Needs It Now)
How Oracle SCM Cloud cuts production lead time, and why the factory floor feels it first.
Read the article -
The Machine was Running, it was just not producing
The machine was running, it just was not producing: where production hours really go.
Read the article -
Dead Stock Is a Decision, Not Bad Luck
Dead stock is a decision, not bad luck: the inventory cost of slow production.
Read the article
Watch
From Orbrick’s YouTube channel
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Working Capital Optimisation: From Metrics to Measurable Business Outcomes 19 min
Next step
Find the days your work orders spend waiting.
A Value Discovery splits lead time into run time and wait time from your own work order data, and identifies the operations and resources adding the most days.