Throughput

In operations, throughput refers to the rate at which a system or process produces outputs or completes tasks within a given time frame. It is a key performance indicator in operations management, reflecting the efficiency and effectiveness of processes in delivering products or services to customers.

Throughput Rate

Throughput rate is the measure of how many units of output a system can produce in a specific period of time. It is often expressed as units per hour, units per day, or any other relevant time interval. Throughput rate is influenced by various factors, including resource availability, process efficiency, and demand levels.

Throughput Time

There are two ways to think about throughput time. One of which is just so much more useful than the other.

• Minimum throughput time: The shortest possible time required to complete a process or produce an output, assuming optimal conditions and no delays. Essentially, if the entire process is empty, how long does that first item take to be built.
• Actual throughput time: The real-world time taken to complete a process or produce an output, accounting for all delays, inefficiencies, and variations in the process. This is the time it actually takes for an item to be built when the system is running at normal capacity.