Number of purchase requisition line items processed per "order materials/services" FTE
This measure calculates the number of purchase requisition 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 requisition is generated when a department requires good or services. Each item by line is considered an individual purchase requisition line item. This means that one line requesting three one-gallon buckets of red paint and a second line requesting five one-gallon buckets of white paint would constitute two 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
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Compute this Measure
Units for this measure are purchase requisition line items.
Number of purchase requisition 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.