- Throughput is a term used to describe the speed at which a company produces or processes its products or services.
- The goal of measuring the throughput concept is often to identify and minimize the weakest links in the production process.
- Assumptions about a company’s capacity and supply chain can affect throughput.
- Maintaining high productivity becomes a challenge when different products are produced using a combination of joint and separate processes.
- When a company can maximize its productivity, it can also maximize its earnings.