Real Life Story: Is High Utilization Good?

In my first month as an Operations Manager back in 2009 at an Automotive and Architectural Glass company, I faced a situation that completely shifted my perspective on productivity. One day, a Marketing staff member hurried over to the production line, handed the Quality Inspector a stack of yellow pad sheets—three pages, back-to-back and labeled …

Identifying and Exploiting Constraints in Manufacturing

In any production system, identifying the constraint is essential. The constraint shows the process step with the lowest capacity, directly influencing throughput and, ultimately, sales. Any improvements made to a non-constraint process will not enhance overall performance and lead to inefficiencies. Principle #3: Constraint Dictates Throughput Performance Consider a simple three-step production line: Step 1 …

Throughput Defined: Driving Business Success

Throughput is the rate at which a system generates money through sales. It represents the flow of revenue-generating activities within an organization, emphasizing both speed and efficiency in producing and selling products or services. At its core, throughput encompasses the entire process of converting raw materials, labor, and other resources into finished goods or services …