Knowledge Base

The process step with the lowest capacity, it limits the output of the entire process.

The percentage of available capacity that is actually being used.

The labour cost to produce one unit of output.

The percentage of units that pass through a process step correctly on the first attempt, without rework or rejection.

The total time a unit spends in the process from arrival to completion, including all delays and waiting.

The effective workforce at a process step, adjusted for resource availability.

The rate at which new work arrives at the process, expressed in units per time period.

A fundamental relationship: Inventory = Throughput × Flow Time. It holds for any stable process.

Two or more work centres performing the same process step simultaneously.

The maximum number of units a process can produce per time period when running at full utilization.

The number of units a process step can complete per time period.

The time it takes to complete one unit of work at a single process step.

The percentage of units that fail quality requirements and must be reworked or discarded.

The percentage of time an employee or resource is actually available to process work.

A process laid out as a sequence of steps, where each step's output feeds into the next.

The total time to complete one unit across all process steps, excluding any delays or waiting time.

The pace at which units must be completed to meet demand, the heartbeat of the process.

The amount of work actually flowing through the process per time period.

A classification of process activities into those that directly create value for the customer and those that don't.

The number of units currently being processed or waiting in a queue at any point in time.