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Study P:D Ratio lecture notes PDF with supply chain management definitions and explanation to study What is P:D Ratio?. Study p:d ratio explanation with SCM terms to review supply chain management course for online MBA programs.

P:D Ratio Definition:

  • A ratio that contrasts the total length of time customers have to wait between asking for a product or service and receiving it (D) and the total throughput time to produce the product or service (P).

    Operations Management by Nigel Slack, Alistair Brandon-Jones, Robert Johnston



P:D Ratio Notes:

The P : D proportion of an activity is the proportion of "interest" time (i.e., the time a client must hang tight between requesting an item and accepting it) to the entire activity generation cycle, P (i.e., to what extent the activity needs to deal with the progression of materials and data). The P-D Ratio was Shingo's examination of the time required to Produce an item to the time given by the client to Deliver the item. An enormous P-D proportion, for instance, was characteristic of a maker who took any longer to create an item than wanted by the client. The air in the plant was one of excited facilitating, especially at month and quarter end. I don't review utilizing "culture" at the time, however according to present-day standards we didn't yet have a culture of progress.

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