Economics is no different. Economists use many abbreviations. One of the most common is GDP, which stands for gross domestic product. It is often cited in newspapers, on the television news, and in reports by governments, central banks, and the business community.
The throughput, denoted byTH, is the averageoutput per unit time, e.g., number of widgets per hour. The inventory between the start and the end points of a production. system (not counting crib inventory or ï¬nished goods inventory) is called work-in-process (WIP). The cycle time (CT) of a given production system is the average time parts spend as WIP. The bottleneck rate rb is the rate of the process center having least long-term capacity. The raw. processing time To is the sum of the long-run average processing times of each workstation in the. routing.
Calculating Lean Process Capability. In a typical manufacturing environment, processes are considered Lean when the efficiency of the process is 25 percent or more. Total time includes the setup, changeover, maintenance and scheduled downtime. In a transactional environment, most of these measures have no counterpart. The equation is therefore modified to: A transactional process is considered Lean when the execution time is less than one third of the delay time, or about 25 percent of the cycle time.