This measure calculates percentage of purchase orders for direct materials and services transmitted to the vendor manually. A purchase order (or supplier order) is a form used by the purchasing department to order goods or services. For our purposes, this does not include any change orders. Typically, a purchase order contains information regarding the items to be purchased, the person or department placing the order, and any special delivery terms the circumstances may dictate. A purchase order may be in either hard copy or electronic form. Direct materials and services are procured items and activities used in the production process and are directly traceable to the product. Direct materials and services include raw materials and any additional services or costs necessary to convert raw materials to finished goods. This Process Efficiency measure is intended to help companies minimize waste and refine resource consumption related to the process group "Procure materials and services".
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Percentage of purchase orders for direct materials and services transmitted to the vendor manually.
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.
The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.