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Delivery Management Fundamentals

Production Management Planning Grade 3 生産管理プランニング (BC検定) · ビジネス・キャリア検定 生産管理プランニング3級 · Written by Tokutei Pass based on the official study texts; not copied verbatim.

1. Significance of Delivery Management, Harm of Late Delivery, and "Harm of Early Delivery"

"Delivery date (Nouki)" refers to the "Contracted (Promised) Delivery Date" agreed upon after verifying production capacity and material availability against the "Requested Delivery Date" specified by the customer or downstream process. "Delivery Management" is the control activity ensuring that the specified items and quantities are reliably delivered to the promised place on the promised date.

Causing a "Delivery Delay (late delivery)" not only halts the customer's production line and destroys corporate credibility, but also triggers severe losses such as penalty fees, lost future orders, and surging costs from expedited shipping and overtime work.

On the other hand, the belief that "as long as it's not late, the earlier we deliver the better" is mistaken. Producing or delivering earlier than the specified due date—"Early Production / Early Delivery"—also causes serious harm.

Early production and early delivery squeeze warehouse space at both the customer's site and your own plant, increase inventory holding costs, tie up working capital prematurely, cause rework losses if design changes occur, and delay the production of other items that are genuinely urgent. The ironclad rule of delivery is "Neither too late nor too early (Just-In-Time)."

Key points


  • Delivery Management = strictly meeting the "Contracted Delivery Date" (reconciled between the customer's "Requested Delivery Date" and plant capacity) while shortening production lead time.

  • Harm of Late Delivery = loss of customer trust, penalty charges/damages, lost orders, and cost spikes from overtime and special transport.

  • Harm of Early Production / Early Delivery = cramped storage space, higher inventory carrying costs, worsened cash flow, obsolescence/rework upon design changes, and delaying other urgent products.
WordMeaning
Requested Delivery Date and Contracted Delivery Date
harm of delivery delays
harm of early production and early delivery
Just-In-Time (neither too late nor too early)

2. Delivery Management Characteristics by Production Type (Make-to-Stock vs. Make-to-Order)

The focus of delivery management differs greatly depending on the production type. First, in "Make-to-Stock Production (low-mix high-volume continuous production)," products are shipped immediately from finished-goods inventory, making the delivery lead time to the customer extremely short.

Therefore, delivery management in make-to-stock production centers on high-accuracy "Demand Forecasting," setting appropriate "Safety Stock (preventing stockouts)," and "Progress Control (using cumulative flow curves, etc.)" to maintain leveled daily production without falling behind.

In contrast, in "Make-to-Order Production (high-mix low-volume individual or lot production)," design, material procurement, and manufacturing begin only after an order is received, so the entire cumulative lead time from order receipt to shipment directly determines the delivery date.

Consequently, delivery management in make-to-order production places top priority on shortening lead times across all departments—"Sales → Design → Production Planning → Purchasing → Manufacturing → Inspection & Shipping"—together with order-by-order "Schedule Control and Capacity Control (using Gantt charts, etc.)."

Key points


  • Make-to-Stock Delivery Management = focuses on improving demand forecast accuracy, maintaining proper finished-goods inventory (preventing stockouts), and sustaining steady continuous output.

  • Make-to-Order Delivery Management = focuses on "shortening total lead time across all departments" (design, purchasing, manufacturing, shipping) and "individual order progress/capacity control."

  • In make-to-order production, "late drawing release from Design" or "late material arrival" before work even reaches the shop floor easily becomes the biggest cause of delivery delays.
WordMeaning
Make-to-Stock delivery management (stockout prevention and demand forecasting)
Make-to-Order delivery management (company-wide lead time reduction)
procurement, design, and manufacturing lead times

3. Delivery Delay Causes and Countermeasures by Department ① (Design & Production Planning)

Delivery delays have causes and countermeasures across five departments from upstream to downstream. First, in the "Design Department," causes of delay include slow specification finalization with customers, "late drawing/BOM release (Shutsuzu okure)," frequent "engineering design changes" due to drawing errors, and overuse of custom non-standard parts.

Countermeasures in the Design Department include: ① "Part standardization and commonality (modularization)" and 3D CAD utilization, ② Implementing "Concurrent Engineering" and "Design Reviews (DR)," and ③ "Setting Checkpoints" at key milestones in the design schedule along with "Buffer Time (cushion time)" to absorb unexpected changes or delays.

Second, in the "Production Planning (Process Control) Department," causes include unrealistic schedules that ignore actual shop-floor capacity, shop-floor chaos caused by disorderly "rush / drop-in orders" from sales, ordering omissions, and lead-time estimation errors.

Countermeasures in the Production Planning Department include: ① Accurately grasping standard times and process capabilities, ② Leveling workloads via "Load Piling and Load Leveling (Yamazumi / Yamakuzushi)" and resolving bottleneck processes, and ③ Holding regular "Production-Sales Coordination Meetings" and establishing clear rules for accepting rush orders.

3. Delivery Delay Causes and Countermeasures by Department ① (Design & Production Planning)

Key points


  • Design Dept countermeasures = part standardization/commonality, Design Review (DR), setting schedule Checkpoints, and building Buffer Time into the schedule.

  • Production Planning Dept causes = scheduling that ignores shop capacity, disorderly insertion of rush orders.

  • Production Planning Dept countermeasures = thorough capacity control (load piling & leveling), resolving bottlenecks, and establishing Production-Sales coordination rules.
WordMeaning
late drawing release, schedule Checkpoints, and Buffer Time
part standardization and commonality (modular design)
Concurrent Engineering and Design Review (DR)
rules for rush orders and Production-Sales coordination

4. Delivery Delay Causes and Countermeasures by Department ② (Purchasing, Manufacturing, Logistics/Shipping)

Third, in the "Materials, Purchasing & Subcontracting Department," delay causes include delayed purchase order processing, sudden stockouts due to discrepancies between book and physical inventory, and late delivery or receiving defects from suppliers and subcontractors.

Countermeasures in the Purchasing Department include: ① "Advance expediting / follow-up (using a Come-Up System, etc.)" several days before the due date, ② Process audits and technical guidance for subcontractors (preventing defects and delays), and ③ Multi-sourcing (two-supplier ordering) to spread risk and shorten procurement lead time.

Fourth, in the "Manufacturing Department (Shop Floor)," causes include sudden equipment breakdowns, rework or remaking due to quality defects, lengthy setup/changeover times, and work stoppages when the only skilled worker capable of a task is absent.

Countermeasures in the Manufacturing Department include: ① Zero breakdowns through daily and preventive maintenance, ② Zero defects through Poka-yoke and adherence to standard operating procedures, ③ Lot-size reduction via Single-Minute Exchange of Die (Single Setup), and ④ Building flexible backup capability through "Multi-Skilled Workers (Tanoukou-ka)."

Fifth, in the "Logistics & Shipping Department," causes include picking errors (wrong item shipped or quantity shortage), shortage of packing materials, truck booking mistakes, or traffic delays; countermeasures include barcode/handheld-terminal verification to prevent shipping errors and early sharing of shipping schedules.

Key points


  • Purchasing Dept countermeasures = "Advance expediting (Come-Up System)" prior to due dates, technical/process guidance for subcontractors, and multiple-supplier ordering.

  • Manufacturing Dept countermeasures = preventive maintenance (no breakdowns), Poka-yoke (no defects/rework), setup time reduction, and multi-skilled workers (flexibility for load shifts and absences).

  • Logistics & Shipping Dept countermeasures = preventing picking/shipping errors via barcode verification and arranging transport vehicles early.
WordMeaning
advance expediting and subcontractor guidance
multi-skilled workers and setup time reduction
preventing mis-shipments (picking errors)

5. Material Procurement Methods (MRP, Cock Warehouse, VMI) and Physical / Progress Control (POP, RFID, Seiban, Oiban)

Among material procurement and replenishment methods, first, "MRP (Material Requirements Planning)" uses the Master Production Schedule (MPS), Bill of Materials (BOM), inventory data, and lead times to calculate backward from the finished product's due date, determining net order quantities and order release dates for every part.

Inter-company procurement methods include: ① the "Cock Warehouse Method (Consignment Inventory Method)"—where the supplier places supplier-owned consignment stock inside the buyer's plant, and the buyer pays only for the quantity drawn and used (like turning a tap/cock)—and ② "VMI (Vendor Managed Inventory)," where the supplier monitors the customer's inventory and consumption data to proactively replenish stock.

In contrast, "POP (Point of Production)" is a "progress and performance management system" that collects real-time production results from shop-floor machines and terminals (Note a classic Planning exam trap: "POP is NOT a material procurement method"). For physical item identification, barcodes and "RFID (IC tags)"—capable of non-contact simultaneous multi-tag reading and rewriting—are widely used.

Traditional shop-floor numbering methods include "Seiban Control (Manufacturing Number Control)," which assigns a unique manufacturing number to each custom order, and "Oiban Control (Sequential Number Control)," which assigns cumulative serial numbers starting from unit #1 in continuous production.

Key points


  • Material procurement methods: MRP (backward calculation from BOM & inventory), Cock Warehouse Method (supplier consignment stock inside buyer's factory paid upon usage), and VMI (supplier-managed replenishment).

  • Note: POP (Point of Production) is a real-time shop-floor production result collection system, "NOT a material procurement method."

  • Physical item control uses barcodes and RFID (IC tags) / Seiban Control = suited for make-to-order production; Oiban Control = suited for continuous make-to-stock production.
WordMeaning
Cock Warehouse Method (consignment inventory) and VMI
MRP (Material Requirements Planning)
POP (Point of Production) and RFID (IC tags)
Seiban (manufacturing number) control and Oiban (sequential number) control

6. Problem-Solving Procedure for Delivery Delays (Emergency vs. Permanent Countermeasures & Recurrence Prevention)

If a process delay or delivery delay occurs (or is predicted), rapid action is taken following a systematic problem-solving procedure. First, "accurately grasp the current status"—which order and which process is delayed by how many days (or units)—and immediately notify the customer and related departments to coordinate schedule adjustments.

Simultaneously, implement immediate "Emergency (Temporary) Countermeasures" to recover the current delay: overtime or holiday work, deploying support workers from other shops, utilizing subcontractors, lot splitting (sending completed partial quantities ahead to the next process or customer), and arranging express transport.

However, emergency measures alone allow delays to recur. Therefore, stratify delay data "by department, product, and cause" into a Pareto chart, and use a Cause-and-Effect Diagram and "Why-Why Analysis (5 Whys)" to uncover the "True Root Cause" (Note: the exam option "halting all factory production across the plant to investigate delay causes" is INCORRECT because it worsens delays).

Then execute "Permanent Countermeasures (Recurrence Prevention)" to eliminate the root cause, verify the effect, and perform "Standardization (Locking-in)" by revising ordering rules, standard operating procedures, and lead-time settings.

Key points


  • When a delay occurs: first grasp the status, notify related departments & the customer, and recover the delay via "Emergency Countermeasures" (overtime, support staff, lot splitting).

  • Next, stratify delay data (Pareto chart) and identify the "True Root Cause" using 5-Why Analysis and Fishbone diagrams (Note: completely stopping all factory production to investigate delay causes is inappropriate).

  • Implement "Permanent Countermeasures (recurrence prevention)" targeting the root cause, confirm effectiveness, and revise work rules/standards for "Standardization."
WordMeaning
emergency / temporary countermeasures (overtime, support, lot splitting)
permanent countermeasures (recurrence prevention)
Why-Why Analysis (5 Whys) and root cause identification
standardization and establishing control

7. Visual Delivery Management ① (Come-Up System, Dispatching Board, Toyota Production System & Kanban)

A representative "Visual Management" method for preventing delivery delays is the "Come-Up System." Copies of purchase orders or delivery slips are placed into a filing rack with dated pockets (boxes) numbered 1 through 31 under the "due date (or advance expediting date) pocket"; checking today's pocket each day causes slips requiring follow-up to automatically surface (Note a frequent exam trap: the Come-Up System is NOT a "progress graph with time on the horizontal axis").

On the manufacturing shop floor, a "Dispatching Board (Sashitate-ban / Control Board)" slots work instruction tickets for each machine or operator to manage job sequence and delays, while "Andon" boards display real-time target counts, actual output, and equipment abnormalities via lights.

Furthermore, the "Toyota Production System (TPS)" aims to reduce costs by thoroughly eliminating waste, resting on two main pillars: ① "Just-In-Time (JIT: making only what is needed, when it is needed, in the amount needed)" and ② "Autonomation / Jidouka (automation with a human touch: machines stop automatically upon detecting an abnormality so defects never flow downstream)."

The operational tool realizing Just-In-Time is the "Kanban System (downstream pull system)." The downstream process withdraws only the parts it consumed from the upstream process using a "Withdrawal Kanban (inter-process or supplier kanban)," and the upstream process produces only the quantity withdrawn according to a "Production Instruction Kanban (in-process or signal kanban)" (which requires "Heijunka / Leveled Production" as an essential prerequisite).

7. Visual Delivery Management ① (Come-Up System, Dispatching Board, Toyota Production System & Kanban)

Key points


  • Come-Up System = a slip-filing method using date-indexed boxes/files so slips requiring follow-up automatically surface on the expediting or due date (Note: it is NOT a graph!).

  • Two pillars of the Toyota Production System (TPS) = ① Just-In-Time (JIT: what is needed, when needed, in the amount needed) and ② Jidouka / Autonomation (automatic machine stop upon abnormality to prevent defects).

  • Kanban System = a downstream pull system using "Withdrawal Kanbans" and "Production Instruction Kanbans," requiring "Leveled Production (Heijunka)" as a prerequisite.
WordMeaning
Come-Up System (advance expediting via date-indexed files)
Dispatching Board (Sashitate-ban) and Andon
Just-In-Time (JIT) and Jidouka / Autonomation (Toyota Production System)
Kanban System (Withdrawal Kanban and Production Instruction Kanban)

8. Visual Delivery Management ② (Gantt Chart, Cumulative Flow Curve, Manufacturing Triangle Chart)

The three major charts that visualize schedules and progress graphically are the "Gantt Chart," "Cumulative Flow Curve," and "Manufacturing Triangle Chart." First, the "Gantt Chart" places time (dates) on the horizontal axis and compares planned vs. actual progress for each order or machine using horizontal bars—best suited for individual make-to-order progress control.

Second, the "Cumulative Flow Curve" plots time (dates) on the horizontal axis and "cumulative quantity" on the vertical axis, drawing cumulative input and cumulative output (completion) lines; the vertical gap shows "WIP inventory," the horizontal gap shows "average dwell time (lead time)," and deviation from the plan line shows "production lead or lag."

Third, the "Manufacturing Triangle Chart (Seizou Sankakuzu)" adapts the cumulative flow curve by plotting "Time (period)" on the horizontal axis and "Production Quantity (cumulative)" on the vertical axis, drawing ① the Planned Production Line, ② the Actual Material Input (Start) Line, and ③ the Actual Completion (Delivery) Line for a specific lot inside a triangular frame.

By looking at the Manufacturing Triangle Chart, one can diagnose at a glance how far the start line and completion line lag behind the hypotenuse (planned line) of the right triangle formed by planned period and planned quantity, how many WIP units are backed up in the process, and whether the current pace will meet the delivery date.

Key points


  • Gantt Chart = places time on the horizontal axis and contrasts plan vs. actual with horizontal bars (ideal for individual and lot production progress control).

  • Cumulative Flow Curve = grasps "WIP quantity (vertical gap)" and "lead time / dwell time (horizontal gap)" from cumulative input and cumulative completion lines.

  • Manufacturing Triangle Chart = plots time on the horizontal axis and quantity on the vertical axis, drawing Plan, Start, and Completion lines in a triangular graph to visualize progress and WIP.
WordMeaning
Gantt Chart (horizontal bar comparison of plan vs. actual)
Cumulative Flow Curve (cumulative input and cumulative completion)
Manufacturing Triangle Chart (plan line, start line, completion line)

High-Frequency Exam Points and Memory Aids

In Delivery Management, true/false questions frequently test the principle that "Early delivery (making or shipping too early) is NOT good—it causes excess inventory, cramped storage space, tied-up capital, and delays to other products." Also note that the statement "shutting down all factory production across the entire plant to investigate the cause of a delivery delay" is FALSE.

Next, among "Delay countermeasures across the 5 departments," the exam especially targets the Design Department's "Part standardization, Design Review (DR), setting Checkpoints, and setting Buffer Time," as well as the Purchasing Department's "Advance expediting (Come-Up System)."

Watch out for the material procurement trap: "MRP, the Cock Warehouse Method (placing supplier consignment stock inside the buyer's plant and paying only for what is used), and VMI" are material procurement/replenishment methods, whereas "POP (Point of Production) is a shop-floor result collection system and NOT a material procurement method."

Finally, memorize the trap that "the Come-Up System is a date-indexed slip filing method, NOT a graph with time on the horizontal axis (such as a Gantt chart, Cumulative Flow Curve, or Manufacturing Triangle Chart)," along with the "Two Pillars of the Toyota Production System (Just-In-Time & Jidouka) and the Kanban System (downstream pull)."

Key points


  • Early production / early delivery causes excess inventory and tied-up cash / Design Dept delay countermeasures = DR, setting Checkpoints, and setting Buffer Time.

  • Cock Warehouse Method = supplier places consignment stock in buyer's factory, paid as used / POP is Point of Production tracking, NOT a material procurement method.

  • Come-Up System = advance expediting method filing slips by date (NOT a graph!) / Toyota Production System = JIT + Jidouka (Kanban = downstream pull).
WordMeaning
harm of early delivery and Design Department delay countermeasures
distinguishing Cock Warehouse Method, VMI, and MRP from POP
Come-Up System, Manufacturing Triangle Chart, and Cumulative Flow Curve
Toyota Production System (JIT, Jidouka) and Kanban System

Official references

Zalo