Through-
put
Analysis
Example

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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.