When a business can maximize the product or service delivered within a given period of time, it has reached maximum throughput. This is the basis of maximizing earnings and therefore profits for a company. This article will examine the definition more thoroughly and illustrate to the reader how to identify issues associated with the throughput for your business.
Theory of Constraints
The theory of constraints is simply stated as the system is no stronger than the weakest link. Within this theory are measurement variation(s) known as throughput. The key is to identify the weakest link and make continuous improvements.