It is extremely important to know that capacity should always be greater than throughput. This fact infers that the Cycle time will always be less than the takt time. Remember, throughput is the average number of inflow and outflow units per unit of time. When applying these concepts to make effective decisions, one needs to know the purpose of such equations. As managers, if we want a smooth flow, we want to make as much units as possible in small amount of time. Therefore, our goals would be to maximize capacity and throughput. In hand, our goals will also be to lessen takt time and cycle time. TERMS AND SYMBOLS RELATING TO THROUGHPUT AND CAPACITY In the future examples, we will be using the terms Ra, which refers to throughput, and Rp, which refer to capacity. In problems we will be given resources, people or objects performing each activity or sub process of the entire process. We will see a value known as Tp, which is the unit load of a resource unit. That is, how long a resource needs to work for each flow unit produced. Using that one can, in turn, discover capacity! THE PROCESS OF EFFECTIVE CAPACITY, THROUGHPUT, AND UTILIZATION We will connect the concept of throughput, the equivalent of demand, after in depths look into the process of calculating effective capacity for individual resource units and, in turn, resource pools hourly and daily. We will then compare our demand, or throughput, with the maximum capacity our individual activities are able to withhold. That would determine our utilization. Based on our utilization, we can make effective decisions.
It is extremely important to know that capacity should always be greater than throughput. This fact infers that the Cycle time will always be less than the takt time. Remember, throughput is the average number of inflow and outflow units per unit of time. When applying these concepts to make effective decisions, one needs to know the purpose of such equations. As managers, if we want a smooth flow, we want to make as much units as possible in small amount of time. Therefore, our goals would be to maximize capacity and throughput. In hand, our goals will also be to lessen takt time and cycle time. TERMS AND SYMBOLS RELATING TO THROUGHPUT AND CAPACITY In the future examples, we will be using the terms Ra, which refers to throughput, and Rp, which refer to capacity. In problems we will be given resources, people or objects performing each activity or sub process of the entire process. We will see a value known as Tp, which is the unit load of a resource unit. That is, how long a resource needs to work for each flow unit produced. Using that one can, in turn, discover capacity! THE PROCESS OF EFFECTIVE CAPACITY, THROUGHPUT, AND UTILIZATION We will connect the concept of throughput, the equivalent of demand, after in depths look into the process of calculating effective capacity for individual resource units and, in turn, resource pools hourly and daily. We will then compare our demand, or throughput, with the maximum capacity our individual activities are able to withhold. That would determine our utilization. Based on our utilization, we can make effective decisions.
5.2.ThroughputFinal.docx