1. Measuring Late Orders
• Accept that everyone’s agenda may differ
• Understand that the goal of an
organization is “to make money, both now
and in the future”
• Standardize the measurement in
accordance to “the goal”
• Consider implementation of the
Dollar/Days measurement

2. Agenda’s differ
• Manufacturing desires long, repetitive runs to
maximize setup times
• Inventory wants low materials, less to count
and keep track of
• Customer Support wants everything, now
• Late orders are some other department’s fault
• Customers don’t care, they only know their
order is late

3. ? The Goal ?
• To ACHIEVE the highest level of customer
satisfaction possible
• To PRODUCE the most product with the least
amount of cost in the most efficient manner
possible
• To SATISFY every customer every time they call
our organization with an opportunity

4. THE GOAL
Be profitable,
both now and in the future

5. DOLLAR/DAYS FORMULA
• Dollars late x Days late/Projected revenue
• Dollars late will increase or decrease with
shipments
• Days late will continue to increase until
shipment
• Yearly revenue used = 20,000,000.00
• My thanks go out to Dr Eliyahu M. Goldratt,
Pima C.C., Sergio Lopez and the entire APICS
organization for the education