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...
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Throughput and overall industrial performance
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