capacity to adapt to changes or modifications in the input quality, output quality, product specifications, and delivery schedules. Profitability There are seven measures used to increase profitability. Not right first time (NRFT) Not getting things right the first time means wasted resources, effort and time. This all leads to excessive costs for the company and poor-quality, high-priced products for the customer. NRFT measures the quality of a product and is expressed in “number of defective parts per million”. The number of defective products is divided by the total quantity of finished products. This figure is then multiplied by 10^6 to get the number of defective parts per million. NRFT can be measured internally (defective parts identified within the production process) or externally (defective parts identified outside the production process (e.g. by the supplier or the customer). Delivery schedule achievement (DSA) DSA analyses how well a supplier delivers what the customer wants and when they want it. The goal is to achieve 100% on-time delivery without any special deliveries or overtime payments, which only increase the delivery cost. DSA measures the actual delivery performance against the planned delivery schedule. Failed deliveries include: "Not on time" deliveries – both late and early. "Incorrect quantity deliveries". Both "not on time" and "incorrect quantity deliveries". People productivity (PP) PP is measured by the time it takes (in staff hours) to produce a good-quality product. Obtaining high PP is only possible when: Most employees' work adds value to the process. Non-value added work is reduced as much as possible. Waste is completely eliminated . Stock turns (ST) The ST ratio shows how quickly a company turns raw materials into finished, ready-to-be-sold products. The quicker the better. A low ST means that the money is tied up in stock, and the company has fewer funds to invest in other parts of its business. Overall equipment effectiveness (OEE) The OEE shows how well a company uses its equipment and staff. OEE is calculated on the base of three elements: Availability – compares the planned and the actual time of the process run. For example, if a machine is planned to run 100 hours a week, but in reality runs only 50, then the availability is 50%. Performance – compares the ideal output and the actual output. For example, if a certain process is planned to take 10 minutes, but actually takes 20, then the productivity is 50%.