Measuring Performance of an Order-to-Delivery Process
DEGREE PROJECT IN MECHANICAL ENGINEERING,
SECOND CYCLE, 30 CREDITS
STOCKHOLM, SWEDEN 2018
Measuring Performance of
an Order-to-Delivery Process
A study at Scania CV AB
PHILIP SUNDSTR?M
KLARA TOLLMAR
KTH ROYAL INSTITUTE OF TECHNOLOGY
SCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT
Measuring Performance of an
Order-to-Delivery Process
- A Study at Scania CV AB
Philip Sundstr?m
Klara Tollmar
2018
Supervisor: Daniel Tesfamariam Semere
Examiner: Andreas Archenti
KTH Royal Institute of Technology in Stockholm
School of Industrial Engineering and Management
Acknowledgements
This thesis project is performed as the final part of our master¡¯s degree in Production Engineering and
Management at the KTH Royal Institute of Technology in Stockholm, Sweden. The thesis was
conducted at Scania CV AB in S?dert?lje.
First of all we would like to thank Scania for welcoming us and for giving us this opportunity. We want
to acknowledge all of those that we have met at the company and who have answered our questions
and given us their time and knowledge. This acknowledgement and gratitude is also extended to the
interviewed companies that have participated in our thesis. Above this, we especially want to thank
our supervisor, Libna Monteiro, who have supported and helped us in our work. We also want to
extend our gratitude to Per Hedlund, the responsible manager, and Daniel Sterner for initiating this
thesis project. Lastly we want to thank our KTH supervisor Daniel Semere for his help, time and
knowledge. Without all of you this thesis would not have been possible.
S?dert?lje, Sweden
June 2018
_____________________________
_____________________________
Philip Sundstr?m
Klara Tollmar
Abstract
The Order-to-Delivery (OTD) process covers the entire flow from an initiated order until the product
or service is delivered to the customer. OTD is considered a core flow in order to successfully deliver
products according to the customer¡¯s needs. Therefore, is it of importance to track the performance
of this flow and all intermediary processes through performance measurements. The key to successful
performance measurement is to identify critical factors that can be measured towards previous states,
future goals and industry best-practices. However, there are no standardized solutions that can be
adopted. Instead performance measurements need to be adapted to each organization¡¯s capabilities,
limitations and needs. Effective performance measures and indicators can help steer a company in the
right direction.
In this thesis, Scania¡¯s industrial OTD process and the connecting indicators has been studied. The
company would like to know possible indicators to measure the performance of this process so that it
will contribute to find deviations, continuous improvement and challenge the current state. There is
also a need to increase the knowledge of how to interpret and manage indicators.
The project has been conducted through both empirical and theoretical studies. An extensive literature
review has been performed. The study concluded in methods and best practices for performance
measurements, as suggested by literature. It has also resulted in an identification of relevant OTD
measures. Empirical studies have been conducted through a current state analysis of Scania and a
company comparison. Five companies were interviewed on the topic of performance measurements.
The aim was to identify the measurements used in each of the companies OTD flow and to investigate
if any best practices could be identified. The empirical findings have been analyzed towards the
theoretical findings in order to find gaps and improvement suggestions. It was found that lead time
and delivery performance are two strategic elements to evaluate a company¡¯s OTD flow.
Lastly, a concept has been developed as an additional approach to measure the part of a lead time
that has the largest variance - transport time. The concept can, with further work, be extended to
include the entire lead time. The aim with the concept was to fairly compare different transport times
against each. It is believed that the approach can be used as a tool to visualize the efficiency of the
transport flow to different delivery countries and therefore determine if the country behaves
according to a normal situation.
The thesis has resulted in recommendations to implement new measures that could be of value to
Scania. Process wise it is suggested to better differentiate between indicators and to improve the way
they are presented and reported. It is also suggested that that quality of the input data and the
reporting process for this should be reviewed.
Keywords
Logistics, Supply Chain Management, Order-to-Delivery, Performance Measurements, Key
Performance Indicators, Lead Time, Delivery Performance
Sammanfattning
Order till leverans-processen t?cker hela fl?det fr?n orderl?ggning tills att slutprodukten eller servicen
levereras till kund. Processen anses vara en k?rnprocess och ?r kritisk f?r att kunna leverera produkter
enligt kundens behov. Det ?r d?rf?r viktigt att f?lja upp prestandan av detta processfl?de genom olika
prestationsm?tt. F?r att lyckas med prestationsm?tning ?r det viktigt att identifiera kritiska faktorer
och m?ta dessa mot tidigare l?gen, framtida m?l och best practices inom industrin. Det finns dock inga
standardiserade l?sningar som kan implementeras p? f?retag. Prestationsm?tt m?ste anpassas efter
varje organisations kapacitet, begr?nsningar och behov. Genom att anv?nda effektiva prestationsm?tt
och indikatorer kan ett f?retag styras i ?nskv?rd riktning.
I detta examensarbete har Scanias industriella order till leverans-process och dess tillh?rande
prestationsm?tt studerats. F?retaget har en ?nskan om att identifiera m?jliga indikatorer f?r att m?ta
prestandan av order till leverans-processen, vilket kan bidra till att hitta avvikelser, st?ndiga
f?rb?ttringar och att utmana den nuvarande situationen. Det finns ?ven ett behov av att ?ka
kunskapen om hur prestationsm?tt ska tolkas och hanteras.
Detta projekt har utf?rts genom empiriska och teoretiska studier. En omfattande litteraturstudie har
resulterat i l?mpliga metoder och utf?randen g?llande prestationsm?tt. Studien har ?ven resulterat i
relevanta order till leverans-m?tt enligt akademisk forskning. De empiriska studierna har best?tt av en
nul?gesanalys av Scania och en j?mf?relsestudie d?r fem olika f?retag har blivit intervjuade inom
?mnet prestationsm?tning. M?let med j?mf?relsestudien var att unders?ka de olika m?tt som
f?retagen anv?nder i sin order till leverans-process och f?r att ta reda p? hur de arbetar med
prestationsm?tning. De empiriska studierna har analyserats i f?rh?llande till teori, f?r att hitta
kunskapsluckor och f?rb?ttringsf?rslag. Det kan konstateras att ledtid och leveransprestanda ?r tv?
strategiskt viktiga faktorer f?r att kunna utv?rdera ett f?retags order till leverans-process.
Slutligen har ett nytt ledtidskoncept blivit utvecklat. Konceptet m?ter transporttiden, vilket ?r den del
av ledtiden d?r st?rst variation uppst?r. Konceptet har potential att utvecklas och f?rl?ngas till att m?ta
den totala ledtiden. M?let med konceptet var att j?mf?ra olika transporttider p? ett r?ttvist s?tt mot
varandra. Konceptet kan anv?ndas som ett verktyg f?r att visualisera effektiviteten av transportfl?det
till olika leveransl?nder och d?rav avg?ra om landets processer presterar enligt ett normall?ge.
Examensarbetet har resulterat i rekommendationer om att implementera prestationsm?tt som kan
skapa v?rde f?r Scania. Det rekommenderas ocks? att s?rskilja olika typer av prestationsm?tt samt
f?rb?ttra hur dessa presenteras och rapporteras. ?ven kvalit¨¦n p? indata och hur data rapporters b?r
ses ?ver.
Nyckelord
Logistik, f?rs?rjningskedja, order till leverans, prestationsm?tt, nyckeltal, ledtid, leveransprestanda
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