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FAQs on Leadtime Leader Questionnaire

Explanations of individual questions on Leadtime Leader Awards Competition submission form. 
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Profit (Surprised LLA has no profit measure)

Your shop's 2019 net income relative to gross sales

Formula = [(2019 net income/2017 gross sales) *100.] Include a minus sign if your number is negative.

Example: If your 2019 net income were negative $300, and your gross sales were $5000, you would enter -6

Return on Assets (ROA; Testing in Top Shops for the first time this year given potential to be a good measure of ‘success’)

Your shop's 2019 net income relative to total assets

Formula = [(2019 net income/2018 assets) *100.] Include a minus sign if your number is negative.

Example: If your 2018 net income were negative $300, and total assets were $10,000, you would enter -3

Work Mix

The proportion of your company’s work, in units, that falls into one of four types according to original or re-work.

Example:  If your company delivered 120 units total, and…

  • 70 units were original (i.e. not re-makes), you would enter 58% for ‘original.’ 
  • 8 units were re-work of units your company already delivered, you would enter 7% for ‘re-work of your company’s original work.’
  • 12 units were re-work of units another company delivered originally, you would enter 10% for ‘rework of another company’s original work.’
  • 30 units were another type of work, you would enter 25% for ‘other type of work.’
  • Your total would be 100% (58% + 7% + 10% + 25%)

First Pass Quality Rate

The percentage of product that passed inspection on first attempt; i.e. no re-work was required.

Example: if 8 of 10 of batches required no re-work after they were first produced, you would enter 80%

On Time Delivery Rate

The percentage of goods delivered to customers on or before the committed delivery date

Example: If 9 of 10 orders were delivered on time, you would enter 90%

Lead Time

The average number of weeks from receipt of order to delivery to customer

Quote to Close Time

The average number of days between providing a quote for a potential order and selling/booking it 

Quote Conversion Rate

The number of dollars sold/booked as a percentage of dollars quoted

Example: If you quoted jobs totaling $250K and received orders for jobs totaling $225K, you would enter 90%

Sales Growth Rate

The 2019 revenue that is incremental to your 2018 revenue, as a percentage of your 2018 revenue

Formula = (2019 gross sales - 2018 gross sales)/2018 gross sales

Example: if your 2019 sales were $5000 and your 2018 sales were $4000, you would enter 25%

Age 25 & Under Representation

The number of shop floor employees under age 25 relative to your usual total number of shop floor employees

Example: If, on average, 5 shop floor employees were under age 25 and your usual shop floor staff totaled 30, you would enter 17%

Employee Retention

The percentage of employees in 2019 who were also employees in 2016

Example: If you had 20 employees in 2019 who were also employees in 2016, and on average a total of 60 employees in 2019, you would enter 33%

Apprentice to Journeyman Ratio

The number of apprentices relative to the number of journeyman on staff

Example: If, on average, you employed 2 apprentices and 8 journeymen, you would enter 25%

Regretted Turnover

The number of voluntary separations of satisfactory performers as a percentage of your total staff

Example: If 6 satisfactory performers left your company in 2019, and your usual total number of staff was 30, you would enter 20%

New Customer Rate

The number of 2019 customers who were new to your shop in 2019

Example: If you had 5 customers in 2017 who were not customers in 2018 or prior, and a total of 40 customers

in 2019, you would enter 12.5%

Organic Revenue Growth

The percentage of 2019 revenue that was incremental from customers you also supplied in 2018 or prior

Example: If your 2019 revenue was $500,000, and $60,000 came from customers you also supplied in 2018, and who contributed $50,000 revenue in 2018, you would enter 2%

Formula: (60K-50K)/500K = .02

Customer Referral Rate

The percentage of 2019 customers who were referred by other customers of your shop

Example: If you had 40 customers in 2019, and 2 of them were referred to your shop by other customers, you would enter 5%