A model for logistic performance measurement in glassware industry

Market needs in the glassware for home and professional use have evolved over the last years towards logistic service requirements. Historically, customers have placed emphasis on quality first and price later on. Nowadays a key aspect is vendor selection and evaluation in terms of on-time and complete deliveries. Since production delays are generally acknowledged as the primary customer dissatisfaction cause, the objective of the present paper is to critically analyse production scheduling and planning models within the above-mentioned industry, in order to have strengths and weakness emerge as critical factors. More specifically, the objective is to pinpoint a formalised framework of logistic performance measurement that may enable managers to reach a twofold aim: (i) on one side to signal possible causes of non-conform deliveries. Such a non-conformity is then exploded and in-depth investigated by carrying out appropriate case studies; (ii) on the other side, based on algorithms that have been specifically designed, to compare total capacity required to overall production and capacity production to optimise the scheduling of redundant jobs. Logistic performances are measured by defining and evaluating different indicators such as On Time In full (OTIF), reliability of deliveries indicators, etc. The overall logistic service is then evaluated by using a scoring system and check-lists are employed to investigate disservice causes. An application of the framework has been carried out on an Italian world leader of glassware for the perfumery industry. Results indicate that Rough-Cut-Capacity-Plan modules to be integrated into MPS (Master Production Schedule) might represent an effective tool in order to verify that capacity production in the middle range (2 to 4 months) is sound to face customer requirements.