FACTORS AFFECTING ON-TIME DELIVERY: A CASE OF DELIVERY ON TIME IN FULL (DOTIF)
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Date
2012
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Uva Wellassa University of Sri Lanka
Abstract
The Pure Ceylon tea is the superior in high quality and delighting customers in the midst of other competitive exporting countries. But, the dynamic nature of market environment has led service and quality as key competitive energies to be sustained. Thus, Delivery On Time In Full (DOTIF) has played a significant role as a key performance indicator in logistic performance of companies to provide quality service to customers. But, as most companies do, Sunshine Tea Private Limited has encountered a gap between the expected and actual Delivery On Time In Full as they are unable to make orders on time that drag them from their goals in direct and indirect ways. Due to time limitation, its manufacturing hub needs to identify internal manufacturing operations that affect the failure of delivery on time. So, this research project aimed to find out tea manufacturing operation factors affecting Delivery On Time In Full. Factors were considered based on the delayed time gap between the planned and the actual lead times allocated for manufacturing operations from the sample of 53 client orders. Data were analyzed by using multiple linear regression. Data analysis revealed that tea collection and material delay were the significant factors and primary data resulted the blend sheet receiving and PROP approval delay were the significant factors. Brain storming session and root cause analysis were conducted to identify the influential causes as lack of human resource management, inefficient communication and lack of infrastructure facilities for these significant factors to be rectified. Accordingly, the manufacturing operation delays and forecasting errors could lead to fail the Delivery On Time In Full. To rectify these issues; motivation of human resource and its management, introduction to Enterprise Resource Planning System for efficient communication, forecasting transparency and short efficient ex-factory lead time can be worth. The outcome of the research stressed out the scientific basis as factors and causes were not limited to this tea company. Because the time is a key drive to be managed in a manufacturing hub.
Key words: Delivery On Time In Full, brain storming, manufacturing operations, client orders, Key Peformance Indicator
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Tea Technology and Value Addition Degree Programme ( TEA)