# Number of purchase order line items processed per FTE that performs the process "order materials and services"

This measure calculates the number of purchase order line items processed per full-time equivalent (FTE) employee who performs the "order materials and services" process, which involves planning, ordering, and executing the physical delivery of materials and services from suppliers to the points of need and use. A purchase order line item is a unique entry on a purchase order. For example, a purchase order for office furniture that includes two chairs, two desks, and one floor lamp would have three line items. This measure is part of a set of Staff Productivity measures that help companies assess the efficiency of their staff related to the process "order materials and services."

## Benchmark Data

Measure Category:
Staff Productivity
Measure ID:
101391
Total Sample Size:
3,972 All Companies
Performers:
25th
-
Median
-
75th
-
Key Performance
Indicator:
Yes

## Compute this Measure

Units for this measure are purchase order line items.

`Number of purchase order line items processed / (Number of FTEs who perform the process group "procure materials and services" * Percentage of process group "procure materials and services" FTEs who perform the process "order materials and services" * .01)`

## Key Terms

#### FTE - (full-time equivalent employee)

To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

#### Staff Productivity

Staff Productivity is a measure of the efficiency of individuals performing specific processes. Measures in staff productivity generally relate the transaction volume or outcome of the process with the effort in terms of full time equivalent employees to perform the process.

#### Median

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.