Throughput Time (TPT)

 

 

O'PEEP'S THROUGHPUT TIME EXPLANATION

It takes too long? It takes your spouse 20 minutes to prepare breakfast for you? Producing these parts takes 2 months? Your bank responds to a simple request only after 2 days? Yes, it takes too long! It’s about Throughput Time! 

look inside elearning  

audio-guide-app

 

Throughput Time(TPT) is a Lean Metric used to describe the elapsed time from process start to process end. It can be measured for a single process step or for the entire process. It is the sum of Processing Times, Preparation Times, Waiting Times and Inspection Times. Breaking TPT down into these elements also helps identify how to improve TPT.

Determining Throughput Time is critical when analyzing business processes as it helps figure out where improvements can be made. It makes sense to build on Throughput Time if you plan to make your production more Lean, or if you must reduce Work in Progress (WIP). Often it’s helpful to understand TPT when it comes to reducing Lead Time and improving Service Level (OTIF).
 

WHY REDUCE THROUGHPUT TIME? 

  • Reduction in Bound Capital – Cash out.
  • Reduction in WIP (Work in Process).
  • It can lead to reducing Lead Time.
  • It usually leads to reducing costs, however this is often difficult to measure as cost reductions result from eliminating waiting times, rework, inventory, and a generally higher productivity.


WHAT'S DRIVING THROUGHPUT TIME?

  •  Batch size
  •  Process wastes
  •  Production Planning
  •  Work in Process (WIP)
  •  Product mix


HOW TO MEASURE THROUGHPUT TIME? 

  1. Visualize the process in scope, e.g. use Process Mapping.
  2. Clearly define which actions start and end the process in scope.
  3. Select one piece of material and measure the time it takes this material to go through the process from start to end.

FREE LEARNING VIDEO ON LEAN METRICS
Let's understand how these metrics go together:

  • Service Level and OTIF
  • Lead Time and Throughput Time
  • Cycle Time and Takt Time
  • Capacity and Output Rate

Learn how to identify bottlenecks building on metrics.

Have fun and go with O'Peep who wants to order his favourite beverage. Of course, it's GIN!

Watch Video Try out a demo 

audio-guide-app

 

Enjoy our free online course:
Lead Time or Throughput Time.
Contact us to learn more on how to work with Throughput Time in your industry!

look inside elearning  more info on lead time course