Comparing/Contrasting throughput with manufacturing cycle time

            Throughput is the required time for moving orders through production process, from receipt to delivery. It is a required focus for just-in-time(JIT) process and it is a requirement for good production systems. Manufacturing cycle time is a subset of throughput and estimates the time between the arrival of raw materials and the shipping of finished products.

            In order to create and maintain a good production system, operation managers would need to address three pervasive and fundamental issues: Eliminate waste, remove variability, and improve throughput. Therefore operation managers would also need to focus on manufacturing cycle time in order to improve throughput.

            Throughput can be improved by lowering manufacturing cycle time. For example a company that changes its method and pulls its materials directly from qualified suppliers to the assembly line, can drastically reduce its manufacturing cycle time, incoming inspection staff, and problems on the shop floor caused by defective materials which would lead to throughput improvement.

Manufacturing cycle time is one of throughput’s major concerns. Reducing manufacturing cycle time would improve throughput but throughput also involves administrative activities of receiving orders, ordering raw materials from suppliers, and the time it takes for raw materials to arrive to assembly lines. Manufacturing cycle time and throughput can improve using the pull system. Pull system is a technique that pulls a unit to where it is needed just as it is needed.

Throughput is directly related to manufacturing cycle time which is its subset. Improvement in manufacturing cycle time would improve throughput. However they are different in their activity size. Manufacturing cycle time estimates the time between the arrival of raw materials and the shipping of finished product. Throughput should also estimate its administrative time and the awaiting time of receiving raw materials from suppliers. Throughput improvement is a required focus of just-in-time (JIT) process and lean operations.           

           

Resource:

Heizer Jay, Render Barry; Operations Management, Prentice Hall: 10^th Edition.