Mehmet Can ÇAPAR, 5th week definitions

2-Manufacturing Throughput Time (manufacturing term)

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The objective is to continiously reduce time once you establish a base, The units in the equations in Figure 7 are in days. Depending on your industry, however, you can use hours, weeks, or any other measure of time. Days and fractions of days seems to work the best when addressing the amount of time it takes to get a product from raw material and/or a set of purchased parts through the process to the customer. How many days it takes to make a part is the Manufacturing Throughput Time. Plant Throughput Time equates to how many days inventory is in the palnt. The number of days or fraction of days it takes to move through your manufacturing process is the metric you want to constantly improve on. Wherever the MTT and PTT are when thet are first calculated, the objective is to constantly improve the time it takes to get raw materials and/or purchased parts through the system into finished product and out the door. The faster you push product through your plant, the greater the profit potential and ability to reduce spending. Say you reduce your throughput time by 25%.That means that you just increased you capacity by 25% with zero investment. Time is key and MTT/PTT should be two of the metrics you prioritize in your plant meetings

 (Dennis G. Lex, Industrialution: The Experience Principles,pg:138)