Learn How Throughput Influences Your Bottom Line
When we talk about throughput profitability, we’re talking about the intersection of traditional profit measures and measures of operational effectiveness – essentially, how quickly can a business make the most money. Every organization’s money-making ability is constrained by time and by its finite resources:
- A manufacturing business has a set number of machines or lines
- A distributor has a fixed amount of floorspace or number of trucks to transport goods
- A service-based business only has so many people who can do the work