Throughput:
In Operations, the throughput is a key concept and is defined as the "rate at which money is generated by the system through sales".
It focuses on money, and on the sales of products or services, and not on the production of products or services. If the products are produced but not sold...this results in inventory, and is one of the key 'wastes" that a manager should try to get rid of. A build up of inventory takes the place of cash, and increases the cash-conversion-cycle, a key measurement of the time it takes to turn Accounts payables into Accounts receivables, and into cash. The more inventory needed, the less cash available, and the more financing that is needed to pay for this resource.
Rule, in general = keep inventory low, and dont count production as throughput...only when its sold should it count toward "productivity"!
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