[Throughput is the] rate at which the system generates money through sales.

Throughput,” he says, “is the rate at which the system generates money through sales.

If you don’t know your Throughput, make it a priority to find out — measuring Throughput is the first step toward improving it.

Economists have focused too much on the economy’s circulatory system and have neglected to study its digestive tract. Throughput growth means pushing more of the same food through an ever larger digestive tract; development means eating better food and digesting it more thoroughly.

They’re measurements which express the goal of making money perfectly well, but which also permit you to develop operational rules for running your plant,” he says. “There are three of them. Their names are throughput, inventory and operational expense.

With the bottlenecks more productive now, our throughput has gone up and our backlog is declining. But making the bottlenecks more productive has put more demand on the other work centers. If the demand on another work center has gone above one hundred percent, then we’ve created a new bottleneck.

Speed is execution and your ability to go from idea to implementation.

A circuit performed by a capital and meant to be a periodical process, not an individual act, is called its turnover. The duration of this turnover is determined by the sum of its time of production and its time of circulation.

The first characteristic of interest is the fraction of the computational load which is associated with data management housekeeping. This fraction has been very nearly constant for about ten years, and accounts for 40% of the executed instructions in production runs.

Our goal is actually to have about 75% utilization if we had one hundred CPU we would hope that our program will go 75% faster without tweaking it.

Productivity is about how much you accomplish.

Goals are about the results you want to achieve. Systems are about the processes that lead to those results.

Alex, the goal is not to reduce operational expense by itself. The goal is not to improve one measurement in isolation. The goal is to reduce operational expense and reduce inventory while simultaneously increasing throughput,” says Jonah.

The entire bottleneck concept is not geared to decrease operating expense, it’s focused on increasing throughput.