Promise Delivery Dealer
Figure 4.8 Dealer Category: Delivery Dealer - Cumulative percentage of vehicles per days of delay (Source: FCA)
4.2.4 On Route – Promise and Delivery
For the On Route category the production process does not affect delivery delays, because the vehicle has already left the manufacturing plant.
The starting point to distinguish the three categories is to identify the Promise one. To do so, the interval OCF – CCF has been compared to the standard times given by the ATP (only transportation lead times) retrieved from FCA databases, plus 10 days of dealer standard lead time. All vehicles that are not part of this group were necessarily included in one of the other two.
The ranges to be compared to the standard lead-times are OCF – POD for Delivery FCA and POD – CCF for Delivery Dealer. The range OCF – POD was compared to the transportation lead times resulting from ATP, while POD – CCF was compared to the threshold of 10 days previously set.
It must be noted that it is possible to have vehicles that exceed both Delivery FCA and Delivery Dealer standard lead times: in this case FCA will take in charge the responsibility, because its delay might have caused problem to the dealer, who had to deliver the car out of the standard lead time set. So, in this case the vehicle will result in
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Days of delay Dealer - Delivery Dealer
To recap, the critical cases are included in these categories (Figure 4.9):
• Promise: if the interval OCF – CCF ≤ Primary Transportation + Secondary Transportation + Dealer Standard Lead Time;
• Delivery FCA: if the interval OCF – POD > ATP (= Primary Transportation + Secondary Transportation);
• Delivery Dealer: if the interval POD – CCF > Dealer Standard Lead Time (= 10 days).
Figure 4.9 On Route: Categories' sizes (Source: FCA)
Numbers are almost in line with results from other categories. Promise is still the dominant class, confirming the existence of a problem on the creation of customer expectation. Since the quantity of critical cases is almost the half compared to Dealer and Order, the Delivery FCA regards a small number of vehicles. Distribution includes variability that is difficult to exclude completely from the process, and inevitably there will be vehicles delivered with small delays.
As done previously, an analysis of the distribution of critical cases per days of delay has been made. Regarding the Delivery FCA class (Figure 4.10), almost 80% of the vehicles considered in delay have been delivered within 14 days (circa) over the standard times set (ATP = Primary Transportation + Secondary Transportation). Considering that, most of the times, the vehicles included in this investigation arrive from a foreign country, or even another continent, an additional buffer might be introduced, in order to reduce the critical cases. Introducing a buffer of 7 days in the calculation is enough to reduce the cases of 50%.
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Promise Delivery FCA Delivery Dealer
Global Overview
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23% Promise Delivery FCA Delivery Dealer
Promise Delivery FCA Delivery Dealer
On Route Overview
Order Overview
Dealer Overview
Promise Delivery Dealer
For Delivery Dealer class (Figure 4.11) the same reasoning of the Dealer category can be applied. Indeed, the long tail will certainly include information exchange problems or critical cases with not solvable issues.
Figure 4.10 On Route Category: Delivery FCA - Cumulative percentage of vehicles per days of delay (Source: FCA)
Figure 4.11 On Route Category: Delivery Dealer – Cumulative percentage of vehicles per days of delay (Source: FCA) 0%
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70 4.2.5 Order – Promise and Delivery
This is the most articulated category, because the manufacturing process may influence the potential delivery delays, since the OCF is paired when the vehicle has not been produced yet.
The starting point is the same as the On Route category: to identify which vehicles are included in Promise, comparing the interval OCF – CCF to FCA’s standard lead times set.
For the Delivery FCA category the comparison was made between the range OCF – POD and the ATP (that now includes also the production time), while for Delivery Dealer it was compared the range POD – CCF with the dealer standard time of 10 days.
In the Order category might also happen that a vehicle results in both these two classes, and, as it has been done before, FCA will take in charge the responsibility for the delay, and the critical cases are attributed only to Delivery FCA.
To recap, the critical cases are included in these categories (Figure 4.12):
• Promise: if the interval OCF – CCF ≤ Production Lead Time + Primary Transportation + Secondary Transportation + Dealer Standard Lead Time;
• Delivery FCA: if the interval OCF – POD > ATP (= Production Lead Time + Primary Transportation + Secondary Transportation);
• Delivery Dealer: if the interval POD – CCF > Dealer Standard Lead Time (= 10 days).
Figure 4.12 Order: Categories’ sizes (Source: FCA)
In this case Delivery FCA includes a lot of cases in which there was a combination of responsibilities with the dealer, that shows a small number of vehicles indeed.
Since production process is also included in the calculation, it might be useful to investigate beyond. Indeed, if a vehicle is included in the Delivery FCA class, it might Promise Delivery FCA Delivery Dealer
Global Overview
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Promise Delivery FCA Delivery Dealer
Promise Delivery FCA Delivery Dealer
On Route Overview
Order Overview
Dealer Overview
Promise Delivery Dealer
have had problems in the manufacturing stage, in the distribution process, or in both.
To check which part of the process is responsible for the delay, more comparisons have to be made with standard ATP split in production and distribution. In particular the production lead time will be compared to the range OCF – ASS, and the distribution lead time with the range ASS – POD.
For this reason, Delivery FCA has been split in three additional categories (Figure 4.13):
• Production: if the interval OCF – ASS > Production Lead Time;
• Distribution: if the interval ASS – POD > Primary Transportation + Secondary Transportation;
• Production & Distribution: if both previous conditions are true.
Figure 4.13 Delivery FCA: split categories’ sizes (Source: FCA)
The influence of the production is relevant, since it occurred to three quarter (32% + 44%) of the vehicles included in Delivery FCA category. This can be due to the standard times used, that do not include additional time for vehicles with optional configuration.
Production scheduling for basic vehicles with no optional configuration is easier. Indeed, a customer that has specific requests for his car will have to wait more for it to be produced, but in this analysis the data used were an approximation of the lead time needed to manufacture a vehicle with standard configuration. These production delays might be the causes of the high result of 44% of vehicles with distribution issues too, because delivery might have been rescheduled causing troubles in respecting standard times.
The analysis of the distribution of the critical cases belonging to Delivery FCA (Figure 4.14) per days of delay shows that 80% of the vehicles are delivered within a month after the considered standard times (ATP = Production Lead Time + Primary Transportation +
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Promise Delivery FCA Delivery Dealer
Global Overview
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23% Promise Delivery FCA Delivery Dealer
Promise Delivery FCA Delivery Dealer
On Route Overview
Order Overview
Dealer Overview
Promise Delivery Dealer
32% 24% 44%
Production Distribution Combined