Inventory obsolescence as a percentage of total inventory

This measure calculates the percentage of total inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. It is part of a set of Process Efficiency measures that help companies optimize the performance of their "produce/manufacture/deliver product" process by minimizing waste and refining resource consumption.

Benchmark Data

Lock

Sorry! Not all users have access to all of our resources.

Want to unlock access to all of our resources?

Learn about Membership Arrow with stem
Measure Category:
Process Efficiency
Measure ID:
100790
Total Sample Size:
2,111 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No
Sample image showing interactive filters for more detailed measure peer group data and an interactive graph.

Compute this Measure

Units for this measure are percent.

Back to Top
Value of inventory obsolescence as a percentage of total inventory value

Key Terms

Back to Top

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Measure Scope

Back to Top

Cross Industry (7.4)

  • 4.3.1 - Schedule production (10303)
    • 4.3.1.1 - Model and simulate plant (19563)
    • 4.3.1.2 - Generate line level plan (10306)
    • 4.3.1.3 - Generate detailed schedule (10307)
    • 4.3.1.4 - Schedule production orders and create lots (10308)
    • 4.3.1.5 - Plan for preventive maintenance (10315)
    • 4.3.1.6 - Request unplanned maintenance (10316)
    • 4.3.1.7 - Release production orders and create lots (10309)
  • 4.3.2 - Produce/Assemble product (10304)
    • 4.3.2.1 - Manage raw material inventory (10310)
    • 4.3.2.2 - Execute detailed line schedule (10311)
    • 4.3.2.3 - Report maintenance issues (10319)
    • 4.3.2.4 - Rerun defective items (10313)
    • 4.3.2.5 - Monitor and optimize production process (19566)
      • 4.3.2.5.1 - Automate and control plant (19567)
      • 4.3.2.5.2 - Perform advanced process control (19568)
      • 4.3.2.5.3 - Perform real-time optimization (19569)
      • 4.3.2.5.4 - Manage plant alarms and alerts (19570)
    • 4.3.2.6 - Assess production performance (10314)
  • 4.3.3 - Perform quality testing (10369)
    • 4.3.3.1 - Calibrate test equipment (10318)
    • 4.3.3.2 - Perform testing using the standard testing procedure (10374)
    • 4.3.3.3 - Manage quality samples (20956)
    • 4.3.3.4 - Record test results (10375)
    • 4.3.3.5 - Track and analyze non-conformance trends (12045)
    • 4.3.3.6 - Perform root cause analysis (12046)
  • 4.3.4 - Maintain production records and manage lot traceability (10370)
    • 4.3.4.1 - Determine lot numbering system (10376)
    • 4.3.4.2 - Determine lot use (10377)