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
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.
Production lead time calculator
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.
Work order release to completion, averaged.
A realistic target for your routings and product mix.
Storage, insurance, obsolescence, shrinkage and cost of capital.
What stretches production lead time
Each one keeps work, and the cash in it, on the shop floor for longer.
Work orders that take far longer from release to completion than their routing needs.
Measure: Work Order Cycle TimeWork 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 %Work orders finishing after their planned date, delaying everything behind them.
Measure: On-Time Production Rate (%)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
The calculator sizes a possibility. Your Oracle Fusion data is what turns it into a number you can act on.
Request a Value DiscoveryWork 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.
Often, through shorter quoted delivery times. The calculator leaves that out because it depends on your market, so the number stays defensible.
No. It is a one-off cash release. The carrying cost released is the recurring annual benefit.
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
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
Working Capital Optimisation: From Metrics to Measurable Business Outcomes 19 min
Next step
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.