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Delivery Management Fundamentals

Production Management Operations Grade 3 生産管理オペレーション (BC検定) · ビジネス・キャリア検定 生産管理オペレーション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 originate not only on the shop floor but 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 reusing past drawings, ② Utilizing 3D CAD, and ③ Thoroughly implementing "Concurrent Engineering" (collaborating simultaneously with manufacturing and purchasing from the design stage) and "Design Reviews (DR)."

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.

Key points


  • Design Dept causes = late drawing release, frequent design changes / Countermeasures = part standardization/commonality, Design Review (DR), Concurrent Engineering.

  • 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 and engineering design changes
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.

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

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. Delivery Control Systems and Ordering Methods (MRP, POP, VMI, Seiban & Oiban Control)

Various information systems and ordering methods are used to ensure on-time delivery. "MRP (Material Requirements Planning)" is a system that uses the Master Production Schedule (MPS), Bill of Materials (BOM), inventory data, and procurement lead times to calculate backward from the finished product's due date, automatically determining net order quantities and order release dates for every part.

"POP (Point of Production)" is a system that collects real-time shop-floor performance data—"when, who, which lot, and how many units were completed"—directly from machines and worker terminals (barcode readers, touch panels, sensors), enabling instant visibility of progress and delays.

In inter-company collaboration, "VMI (Vendor Managed Inventory)"—where the supplier shares and monitors the customer plant's inventory and consumption data to proactively replenish stock at the right time and quantity—is also highly effective in preventing delivery delays and stockouts.

Traditional shop-floor control methods include "Manufacturing Number Control (Seiban Kanri)," which assigns a unique "Manufacturing Number (Seiban)" to each individual customer order to link and track all parts and processes for that order, and "Sequential Number Control (Oiban Kanri)," which assigns cumulative serial numbers starting from unit #1 in continuous production to track how far production has progressed.

Key points


  • MRP (Material Requirements Planning) = backward-calculates part order timing and net quantities from BOM, inventory, and lead time to meet finished product due dates.

  • POP (Point of Production) = collects and manages real-time production results, progress, and machine status directly from shop-floor machines and terminals.

  • Seiban Control = tracks make-to-order production by unique order manufacturing number / Oiban Control = tracks continuous production progress by cumulative sequential unit number.
WordMeaning
MRP (Material Requirements Planning)
POP (Point of Production information management)
VMI (Vendor Managed Inventory)
Seiban (manufacturing number) control and Oiban (sequential number) control

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

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. Specific actions include 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 the same delays to recur. Therefore, stratify delay data "by department, by product, and by cause" into a Pareto chart, and use a Cause-and-Effect Diagram and "Why-Why Analysis (5 Whys)" to uncover the "True Root Cause" rather than superficial symptoms.

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 by department/cause (Pareto chart) and identify the "True Root Cause" using 5-Why Analysis and Fishbone diagrams.

  • 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 Tools ① (Come-Up System, Dispatching Board, Andon)

To prevent delivery delays before they happen, "Visual Management (management by sight)" tools that let anyone spot abnormalities or delays at a glance are highly effective. A classic method widely used for managing due dates of purchased and subcontracted parts is the "Come-Up System."

The "Come-Up System" uses a filing rack with dated pockets (or boxes) numbered 1 through 31; copies of purchase orders or delivery slips are placed into the "pocket of the due date (or advance expediting date)," so simply checking today's pocket each morning causes the slips requiring follow-up to automatically "come up" without omission.

On the manufacturing shop floor, a "Dispatching Board (Sashitate-ban / Control Board)" slots work instruction tickets for each machine or operator along a timeline, visually managing what job is currently running, what comes next, and whether any tickets are overdue.

Furthermore, "Andon (illuminated overhead boards)" and electronic "Production Management Boards" display real-time line target counts, actual output, progress delays, and equipment abnormalities via lights and LEDs, allowing hourly delays to be spotted and addressed on the spot.

7. Visual Delivery Management Tools ① (Come-Up System, Dispatching Board, Andon)

Key points


  • Come-Up System = a visual delivery control method that files order slips into date-indexed pockets/boxes so slips requiring follow-up automatically surface before the due date.

  • Dispatching Board (Sashitate-ban) = a board that slots work instruction tickets and identification tags by machine and date to visually control job sequence and delays.

  • Andon & Production Management Board = visual tools displaying planned quantity, current actual output, and line abnormalities in real time.
WordMeaning
Come-Up System (advance expediting via date-indexed files)
Dispatching Board (Sashitate-ban / control board)
Andon and Production Management Board

8. Visual Delivery Management Tools 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."

Next, expect matching questions on "Delivery delay causes and countermeasures across the 5 departments (Design, Production Planning, Purchasing, Manufacturing, Logistics)." Organize them clearly: "Part standardization & DR = Design," "Load piling & leveling = Production Planning," "Advance expediting = Purchasing," and "Setup reduction & Multi-skilled workers = Manufacturing."

For terminology questions, memorize the exact names and meanings of the "Come-Up System (placing slips in date-indexed pockets/boxes so they automatically surface several days before the due date for advance expediting)" and the "Manufacturing Triangle Chart (triangular time-vs.-quantity chart showing plan, start, and completion lines)."

Also make sure you can distinguish the three system terms: "MRP (backward-calculating net requirements and order timing from BOM and inventory)," "POP (real-time collection of shop-floor actual results)," and "VMI (supplier-driven inventory replenishment)."

Key points


  • Delivery is NOT "the earlier, the better"! Early production and early delivery cause excess inventory, tied-up cash, and delays to other products.

  • Come-Up System = visual control method storing order slips in dated pockets so they automatically surface before due dates to prevent missed follow-ups.

  • MRP = Material Requirements Planning / POP = Point of Production (real-time shop-floor tracking) / Manufacturing Triangle Chart = Time × Quantity triangular progress graph.
WordMeaning
harm of early delivery
delay countermeasures across 5 departments (Design, Planning, Purchasing, Manufacturing, Logistics)
Come-Up System and Manufacturing Triangle Chart
distinguishing MRP, POP, and VMI

Official references

Zalo