--- title: "On-Time Delivery in CNC Shops: Measure OTD and Fix Late Jobs" description: Learn how to calculate on-time delivery (OTD) in a CNC shop, how it differs from OTIF and lead time, and why jobs ship late. 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In a CNC job shop it is the number customers feel first, and it is usually measured after the fact, when the job is already late. This guide shows how to calculate OTD and how it differs from OTIF and lead time. It then explains why jobs ship late in a CNC shop and how machine data helps you find the cause of each late job. The aim is better on-time delivery without adding machines or people. ## What Is On-Time Delivery (OTD) in a CNC Shop? OTD measures promises kept. A job counts as on time when it ships on or before the date promised to the customer, and as late otherwise. The result is a percentage over a period, for example a month, often called the on-time delivery rate. OTD is a result, not a cause. It tells you that jobs are late, not why. The reasons sit upstream: setups that run long, unplanned stops, standard times that do not match reality, and promise dates set without checking the real load. The rest of this guide works back from the result to those causes. ## OTD vs OTIF vs Lead Time | Measure | What it tells you | Question it answers | | --- | --- | --- | | **OTD** (on-time delivery) | Share of jobs shipped by the promised date | Did we ship on time? | | **OTIF** (on time in full) | Share of jobs shipped on time and with the complete quantity | Did we ship on time and complete? | | **Lead time** | Elapsed time from order to shipment | How long does a job take from order to ship? | OTIF is stricter than OTD: a job shipped on time but short of the ordered quantity counts as on time for OTD and as a miss for OTIF. Lead time is a duration, not a percentage. A shop can have a short lead time and still miss promised dates if the dates were set too tight. For the duration side, see [how to calculate and reduce lead time in production](https://www.jitbase.com/blog/how-to-calculate-and-reduce-lead-time-in-production). ## How to Calculate On-Time Delivery **OTD (%) = jobs shipped on or before the promised date ÷ total jobs shipped in the period × 100** Example: in October a shop ships 40 jobs. 34 ship on or before the promised date, so OTD = 34 ÷ 40 × 100 = 85%. Of those 34 jobs, 3 shipped short of the ordered quantity, which leaves 31 jobs on time and complete. OTIF = 31 ÷ 40 × 100 = 77.5%. The gap between 85% and 77.5% is the share of jobs that arrived on time but incomplete. Four rules keep the number honest: - **Fix the date you measure against.** Use the date promised when the order was accepted and keep it. If you measure against a revised date, every late job quietly becomes on time. - **Measure the ship date, not the end of machining.** If you promised a delivery date, add the transit time, because the customer feels the arrival date. - **Count the same way every period.** Per job or per order line, but not both. - **Report by customer or job type as well as overall.** One overall rate can hide a customer who is always late. The numbers above are an illustration. Replace them with the jobs your shop shipped. ## Why Do Jobs Ship Late in a CNC Shop? Late jobs rarely have a single cause. Most trace back to a short list of causes that repeat. | Cause | What it looks like | What to check | | --- | --- | --- | | **Setups running over standard** | The job starts late and pushes back everything after it | Actual setup time against standard, and the reasons entered by operators | | **Unplanned stops** | The machine stops mid-job and the plan slips | Stop reasons by machine, time between failures and repair time | | **Wrong standard times** | The plan assumes a cycle time the machine never reaches | Actual cycle time against the planned one | | **A bottleneck machine** | Jobs queue in front of one machine | Which machine has the longest queue and the highest load | | **Promise dates set without the real load** | The date was unrealistic when it was accepted | Planned load on the machines the job needs | | **Hidden operator tasks** | Operators are busy with tasks the plan did not count | Time operators spend on tasks outside the machine cycle | | **Waiting for material, approvals or outside processing** | The job is ready to run but cannot start | Order status and dates in your ERP or order system | Several of these causes have their own guide: [why a cycle time estimate does not match reality](https://www.jitbase.com/blog/cnc-cycle-time-mismatch-diagnostic-guide), [bottleneck analysis in CNC shops](https://www.jitbase.com/blog/bottleneck-analysis-cnc-shops), [hidden-time operator tasks](https://www.jitbase.com/blog/hidden-time-operator-tasks-cnc-shops) and [downtime root cause analysis](https://www.jitbase.com/blog/downtime-root-cause-analysis-pareto-charts). Machine data helps with the first five causes and with hidden operator tasks. Promise dates also need the planned load, and machine data does not see material shortages, customer approvals or outside processing, which come from your ERP or order system. Knowing which causes you can and cannot see keeps you from blaming the machines for a delay that started in purchasing. **Compare actual times with standard times.** JITbase collects actual setup and cycle times per job, so you can see where a job lost time against standard. [See production monitoring](https://www.jitbase.com/production-monitoring) ## How to Improve On-Time Delivery in Manufacturing 1. **Log every job against its promised date.** Record the promised date, the ship date and, for each late job, one main cause. Two extra columns in a sheet are enough to start. 2. **Rank the causes.** After a month or two, count late jobs by cause. A few causes usually explain most late jobs, and a Pareto chart makes them visible. The method is the same as in [downtime root cause analysis](https://www.jitbase.com/blog/downtime-root-cause-analysis-pareto-charts). 3. **Fix the standard times.** If planned times are wrong, the plan cannot hold. Compare planned and actual times first, then use the real times when you quote. See [how to quote CNC jobs with standard times](https://www.jitbase.com/blog/cnc-machining-quote-standard-times). 4. **Protect the bottleneck machine.** Keep it fed and avoid unplanned stops and avoidable changeovers on it. The bottleneck sets the pace of the whole shop. 5. **Size batches with the queue in mind.** Batch size affects both changeovers and waiting time. See [lot sizing for CNC shops](https://www.jitbase.com/blog/lot-sizing-cnc-shops). 6. **Promise dates from the real load.** Before accepting a date, check the load on the machines the job needs and the open jobs ahead of it. See [production planning and scheduling for CNC shops](https://www.jitbase.com/blog/production-scheduling-cnc). 7. **Review late and at-risk jobs every week.** Go job by job and decide what to change: sequence, machine, overtime or a call to the customer. ## What Data Do You Need to Track OTD? - **Promised date and ship date for each job.** They are usually in your ERP or order system. - **Actual and standard times for setup and run.** They come from machine and program data. - **Stop reasons and overtime reasons.** They are entered by operators at the machine. - **Job progress and expected completion.** They come from live job tracking. In JITbase, the production side is available: actual times against standard, the stop and overtime reasons entered by operators at the machine screen, and the progress of each job with its expected completion date. The promised and ship dates generally stay in your ERP or order system, and your team still decides the promise date and what to do about a late job. JITbase supplies the data that helps you find the cause. It does not replace your shipping record. **See where each job stands.** Live job tracking follows the progress of each job and updates its expected completion date, so you can see earlier when a job will miss its deadline. [See live job tracking](https://www.jitbase.com/scheduling-workforce) ## Where to Start This Month 1. **Week 1:** choose the date rule and list the jobs shipped over the last three months to get a baseline. 2. **Week 2:** tag each late job with its main cause. 3. **Week 3:** pick the most frequent cause and one change that targets it. 4. **Week 4:** measure again and compare with the baseline. ## Common OTD Measurement Mistakes - **Measuring against a revised date.** It hides late jobs instead of showing them. - **Watching only the monthly number.** The rate tells you that jobs were late, not which job is about to be. - **Using one rate for every customer.** A customer who is always late disappears in the average. - **Ignoring partial shipments.** A job shipped on time but short is still a miss for the customer. - **Setting a target before knowing the baseline.** Measure first, then decide. - **Blaming the machines for every delay.** Some delays start in purchasing, approvals or outside processing. ## Key Takeaways - OTD is the share of jobs shipped on or before the promised date. It is a result, not a cause. - OTIF adds the quantity check, and lead time is a duration. They answer different questions. - Fix the date you measure against and keep the counting rules the same every period. - Tag each late job with its main cause, then fix the most frequent causes first. - Machine data shows setups, stops, actual times and job progress. Your order system covers the rest. **See what on-time delivery is worth.** Estimate the return of finding the causes of late jobs on your own machines. [Calculate your return on investment](https://www.jitbase.com/return-on-investment) ## Frequently Asked Questions ### What is on-time delivery (OTD) in manufacturing? On-time delivery is the percentage of jobs or orders shipped on or before the date promised to the customer. It is one of the most watched service measures in manufacturing because it shows whether a shop keeps its promises. In a CNC job shop it is usually measured per job over a month. It tells you that jobs were late, not why, so it works best next to measures of setup time, stops and standard times that explain the cause. ### How do you calculate the on-time delivery rate? Divide the number of jobs shipped on or before the promised date by the total number of jobs shipped in the period, then multiply by 100. If 34 of 40 jobs shipped on time in a month, the rate is 85%. Decide the rules once and keep them. Measure against the date promised when the order was accepted and count per job or per order line consistently. Use the ship date, or the delivery date if that is what you promised. Changing the rules between periods makes the trend meaningless. ### What is a good on-time delivery rate? There is no single number that fits every shop, because the right target depends on your customers, your contracts and your mix of work. Some customers set a required rate in their supplier agreements, and that figure is the one to check first. Start by measuring your current rate over a few months, then set a target slightly above it and raise it as the causes of late jobs get fixed. A target chosen without a baseline tends to be either ignored or missed. ### What is the difference between OTD and OTIF? OTD checks only the date: was the job shipped on or before the promised date. OTIF, on time in full, also checks the quantity: the job must arrive on time and complete. For the same jobs, OTIF is always equal to or lower than OTD. A job shipped on time but short counts as on time for OTD and as a miss for OTIF. Many shops start with OTD and add the quantity check once partial shipments become a visible problem. ### What is the difference between on-time delivery and lead time? Lead time is a duration: the time from the order to the shipment. On-time delivery is a result against a promise: the share of jobs that shipped by the promised date. The two are linked but not the same. A shop with a short lead time can still miss dates if it promises dates that are too tight. A shop with a long lead time can have a high OTD if its promised dates are realistic. ### How can a CNC shop improve on-time delivery without adding machines or people? Start by recording the cause of each late job, then fix the most frequent ones first. Typical causes are setups that run over standard, unplanned stops, standard times that do not match reality and promise dates set without checking the load. Machine data helps with those causes because it shows actual times, stop reasons and the progress of each job. Causes that start outside the machine, such as late material or customer approvals, need to be tracked in your order system and handled with purchasing and sales. #### SHARE [mailto:email@example.com?subject=Mail%20from%20our%20Website](mailto:email@example.com?subject=Mail%20from%20our%20Website) ## Related Articles [![Machinist comparing a CNC milling cycle with a daily demand schedule on a shop floor: takt time with JITbase](https://www.jitbase.com/hs-fs/hubfs/ChatGPT%20Image%20Mar%2028%2c%202025%2c%2004_25_04%20PM.png?width=352&name=ChatGPT%20Image%20Mar%2028%2c%202025%2c%2004_25_04%20PM.png)](https://www.jitbase.com/blog/what-is-takt-time-how-to-calculate-and-reduce-it) [Production planning and scheduling](https://www.jitbase.com/blog/tag/production-planning-and-scheduling) ### [Takt Time vs Cycle Time vs Lead Time: Formulas for CNC Shops](https://www.jitbase.com/blog/what-is-takt-time-how-to-calculate-and-reduce-it) Read more [![Two CNC shop workers reviewing a paper maintenance schedule next to a machine tool](https://www.jitbase.com/hs-fs/hubfs/preventive-maintenance-cnc-machines-data-driven-schedule.webp?width=352&name=preventive-maintenance-cnc-machines-data-driven-schedule.webp)](https://www.jitbase.com/blog/preventive-maintenance-cnc-machines-data-driven-schedule) [Production planning and scheduling](https://www.jitbase.com/blog/tag/production-planning-and-scheduling) ### [CNC Preventive Maintenance: Build a Schedule From Data](https://www.jitbase.com/blog/preventive-maintenance-cnc-machines-data-driven-schedule) Read more [![Tablet mounted next to a CNC machine control showing production status and planned stop buttons: recording stops for MTBF with JITbase](https://www.jitbase.com/hs-fs/hubfs/mtbf-cnc-machines-calculate-shop-floor-data.webp?width=352&name=mtbf-cnc-machines-calculate-shop-floor-data.webp)](https://www.jitbase.com/blog/mtbf-cnc-machines-calculate-shop-floor-data) [Production planning and scheduling](https://www.jitbase.com/blog/tag/production-planning-and-scheduling) ### [MTBF for CNC Machines: How to Calculate Mean Time Between Failures from Shop-Floor Data](https://www.jitbase.com/blog/mtbf-cnc-machines-calculate-shop-floor-data) Read more [![CNC operator turning the feed override knob on a vertical machining center control panel: feed override monitoring with JITbase](https://www.jitbase.com/hs-fs/hubfs/cnc-feed-override-monitoring-hero.webp?width=352&name=cnc-feed-override-monitoring-hero.webp)](https://www.jitbase.com/blog/cnc-feed-override-monitoring) [Production planning and scheduling](https://www.jitbase.com/blog/tag/production-planning-and-scheduling) ### [CNC Feed Override: What It Is and What It Reveals](https://www.jitbase.com/blog/cnc-feed-override-monitoring) Read more [![JITbase block logo](https://www.jitbase.com/hs-fs/hubfs/eca01011d7169e8c6395a8d7eebe802d.webp?width=317&height=158&name=eca01011d7169e8c6395a8d7eebe802d.webp)](https://www.jitbase.com) ![image-2](https://www.jitbase.com/hs-fs/hubfs/image-2.webp?width=156&height=78&name=image-2.webp) Solutions - 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[Privacy Policy](https://www.jitbase.com/privacy-policy) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Judicael Deguenon", "url" : "https://www.jitbase.com/blog/author/judicael-deguenon" }, "dateModified" : "2026-10-30T14:43:21.392Z", "datePublished" : "2026-10-30T14:43:21.000Z", "headline" : "On-Time Delivery in CNC Shops: Measure OTD and Fix Late Jobs", "image" : [ "https://www.jitbase.com/hubfs/on-time-delivery-cnc-shops.webp" ], "mainEntityOfPage" : { "@id" : "https://www.jitbase.com/blog/on-time-delivery-cnc-shops", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.jitbase.com/hubfs/logo%20jitbase%201.svg" }, "name" : "JITbase" } } ``` ```json { "@context" : "https://schema.org", "@type" : "FAQPage", "mainEntity" : [ { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "On-time delivery is the percentage of jobs or orders shipped on or before the date promised to the customer. It is one of the most watched service measures in manufacturing because it shows whether a shop keeps its promises. In a CNC job shop it is usually measured per job over a month. It tells you that jobs were late, not why, so it works best next to measures of setup time, stops and standard times that explain the cause." }, "name" : "What is on-time delivery (OTD) in manufacturing?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Divide the number of jobs shipped on or before the promised date by the total number of jobs shipped in the period, then multiply by 100. If 34 of 40 jobs shipped on time in a month, the rate is 85%. Decide the rules once and keep them. Measure against the date promised when the order was accepted and count per job or per order line consistently. Use the ship date, or the delivery date if that is what you promised. Changing the rules between periods makes the trend meaningless." }, "name" : "How do you calculate the on-time delivery rate?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "There is no single number that fits every shop, because the right target depends on your customers, your contracts and your mix of work. Some customers set a required rate in their supplier agreements, and that figure is the one to check first. Start by measuring your current rate over a few months, then set a target slightly above it and raise it as the causes of late jobs get fixed. A target chosen without a baseline tends to be either ignored or missed." }, "name" : "What is a good on-time delivery rate?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "OTD checks only the date: was the job shipped on or before the promised date. OTIF, on time in full, also checks the quantity: the job must arrive on time and complete. For the same jobs, OTIF is always equal to or lower than OTD. A job shipped on time but short counts as on time for OTD and as a miss for OTIF. Many shops start with OTD and add the quantity check once partial shipments become a visible problem." }, "name" : "What is the difference between OTD and OTIF?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Lead time is a duration: the time from the order to the shipment. On-time delivery is a result against a promise: the share of jobs that shipped by the promised date. The two are linked but not the same. A shop with a short lead time can still miss dates if it promises dates that are too tight. A shop with a long lead time can have a high OTD if its promised dates are realistic." }, "name" : "What is the difference between on-time delivery and lead time?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Start by recording the cause of each late job, then fix the most frequent ones first. Typical causes are setups that run over standard, unplanned stops, standard times that do not match reality and promise dates set without checking the load. Machine data helps with those causes because it shows actual times, stop reasons and the progress of each job. Causes that start outside the machine, such as late material or customer approvals, need to be tracked in your order system and handled with purchasing and sales." }, "name" : "How can a CNC shop improve on-time delivery without adding machines or people?" } ] } ```