![]() Profitability – A rough equation where throughput While the basic formula for throughput time was discussedĪbove, there are other calculations related to throughput that can be used to This is especially true in move time, inspection time and queue time where Lean Manufacturing, Six Sigma and other continuous improvement programs can significantly impact cost by reducing those times.Īnd as more and more operations move to digital conversions,Įven the processing time can be analyzed to identify trends and microtrends to Manufacturers can also use these cycles to look for ways to improve the manufacturing process to make it more efficient and cost-effective. This allows for products to be costed correctly for use in other business activities such as planning, pricing and Return on Investment (ROI) for capital expenditures. Total throughput time required to complete each unit. Queue Time – Also referred to as “wait time”, queue time is the wait time that occurs prior to processing, inspection and moving.īy adding these time cycles together, one can arrive at that.This includes the time to move sub-assemblies or partially processed material into and out of production areas as well as the time required to move between workstations. Regardless of the operation, move time must be accurately counted and included in throughput time. Move Time – While many factories are constructed with optimized product flow in mind to reduce movement and staging, other companies may be using older buildings or eclectic space that requires an abundance of staging and moving time for Work in Progress (WIP).This can include automated or electronic testing as well as manual inspection that can range from feel, stress testing, visual confirmation, and even things such as taste and smell. Inspection Time – Because different types of goods require different levels of quality monitoring, inspection time consists of the cumulative time required to check components, mixes, or sub-assemblies as it progresses through the manufacturing process.Blending, spinning, grinding, riveting and endless other automated steps as well as manual assembly are all processing time where the raw materials are transformed into finished goods in a mechanical process. Processing Time – Processing time is the time spent in actual production on a machine.Throughput time is the sum of four different time intervals: Throughput time and improve performance and efficiency. Manufacturers a way to build improvements into the production cycle to shorten Process or machine time, accurate throughput time measurements give This includes its beginnings as raw material all the way through the completion of finished goods ready to ship.īecause so much of throughput time is not spent in actual Throughput time is the measured amount of time that is required to complete a finished product from beginning to end. It is also a key aspect to supply chain planning, forecasting, capacity planning and scheduling. Because the speed of materials and assembly as it passes through various manufacturing stages is what all other aspects of business are based on, throughput time is critical to understanding how materials, labor, capital investment and other costs are measured.
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