On-time delivery performance is a metric used to measure the reliability and effectiveness of meeting customer delivery expectations. It is calculated by comparing the number of customer order lines that are shipped on or before the requested delivery date or promised date against the total number of order lines. The calculation results in a percentage that represents the proportion of orders delivered punctually. This metric provides insight into the efficiency of order fulfillment processes and the ability to meet customer demands within the specified timeframes. By monitoring and analyzing on-time performance over different measurement periods, businesses can identify trends, assess their delivery capabilities, and strive to improve customer satisfaction through timely and reliable order deliveries.