Compliance metrics represent any metrics that relate to specific industry, safety, environmental and/or governmental regulatory standards that the manufacturer must comply with and/or achieve to earn and maintain business.

Business Value to Demand-Driven Manufacturers:

The ability to drive flow and maintain on time delivery (OTD) rates while adhering to compliance standards.

While there are no compliance metrics specific to Demand-Driven Manufacturing, we advocate being a good steward of compliance issues. Manufacturers will, however, want to monitor if/how compliance requirements impact other Demand-Driven Manufacturing metrics. A typical Compliance metric used throughout all manufacturers:

Number of days between incidents

Action:

While the nature of an incident will drive your action, monitor any trends in activity, such as types of incidents, when/where it occurs, frequency, etc.

Tip: Depending on the compliance requirements, an additional metric to consider from a safety standpoint is the Insurance Risk Modifier, or the rate at which you pay insurance claims (e.g., if your payments are trending downward, your compliance to safety issues are effective).