What is Throughput Time?

To put it bluntly, throughput time is the time required to make a product. But it’s not only about standing by the assembly line with a stopwatch.

The goal of manufacturing is to supply its customers with quality products at a price that brings in maximum profit to manufacturers while staying competitive.

While the cost of materials, labor, taxes, and other operating expenses are important in the overall cost structure to deliver those goods, the component that makes it all work is time.

Quote time, lead time, and other measurements are common KPIs in assessing a company’s success.

But few measurements are more important for a company’s ability to deliver than Throughput Time.


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Timecode:
0:00 Introduction
0:50 What is Throughput Time?
04:29 Calculating Throughput Time
05:31 Analyzing Throughput Time
06:30 Benefits of Throughput Time
07:45 Conclusion

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