Throughput Time

/in /by

Throughput Time is elapsed time required for a product to go through a defined process, from beginning to end, including both lead time and processing time.

Throughput Time Work in Process / Total Units delivered

Throughput time for a process is synonymous with Average Lead Time and is calculated by dividing the number of items within the process (work-in-process inventory) by the number of units that move through the process in a given time period (throughput). For example:

  • If you generate 10 purchase orders on day 1 and on day 11, you receive all units ordered, you have 10 units delivered in 10 days. 10 days x 10 units = 100.
  • 100/10 units received = 10 days Average Lead Time or Throughput Time.

For more information, see: Little’s Law

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