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Welcome to Sourcing Decision Supporting, Inc.
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Sourcing Decision Support, Inc.
Througput Analsyis
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Throughput analysis measures the throughput effectiveness of a value-added
conversion process or factory. It does this by measuring; the amount of time
that the process is not available to perform the value-added conversion; the
cycle time performance (actual versus theoretical) and; quality performance
(number of good units to total units produced). After the data is captured the
three factors are multiplied together to quantify the throughput effectiveness
of a process or factory. The throughput effectiveness can be translated into
loss earnings because: if the process wasn't available 100% of the scheduled
time; the actual cycle did not equal the theoretical cycle time and; if all the
parts produced were not good parts then the process would not be producing the
maximum number of units it was capable of producing. Since it is not producing
the maximum number of units, revenue is lost. A world-class process or factory
availability and cycle time performance is 95%+. World-class quality exceeds 99%
acceptable units. One way a supplier can increase their revenue is to increase
their overall effectiveness versus increasing their prices. This analysis
calculates the impact of increases in these measures of effectiveness.
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