2. Throughput and overall industrial performance
2.1 Added value (T for Throughput)
As we saw earlier, added value is defined as the gross difference between the selling price of the product and the purchase price of the incorporated elements. TOC thinking will lead us to constantly identify the process, and then the resource of this process, which limits the flow of added value generated by the company. It is precisely this flow of added value, the Throughput (T ), that will be at the heart of any TOC approach.
But we're talking here about the added value actually sold and delivered to the customer. Potential added value, found in inventories and work-in-progress, does not enter into the composition of Throughput.
This is a major difference from...
The Ultimate Scientific and Technical Reference
This article is included in
Design and production
This offer includes:
Knowledge Base
Updated and enriched with articles validated by our scientific committees
Services
A set of exclusive tools to complement the resources
Practical Path
Operational and didactic, to guarantee the acquisition of transversal skills
Doc & Quiz
Interactive articles with quizzes, for constructive reading
Throughput and overall industrial performance
Spirit of the Theory of Constraints
Bibliography
Websites
• The Bottleneck game http://www.agilecoach.net/coach-tools/bottleneck-game/
• Association TOC France http://www.tocfrance.org
• HC Online http://chohmann.free.fr/
...
The Ultimate Scientific and Technical Reference
