Throughput refers to the maximum production rate of a finished product or component through a system or part of a system.
Throughput is generally associated with the production workflow of a company by evaluating the production rate through the bottleneck, or weakest part of the production chain.
Throughput can thus be altered by various factors such as:
- machine maintainability and reliability
- rate of use of resources
- distribution of workload
Throughput optimization aims to improve the processing time of an order and thus increase the overall productivity of a company.
Throughput Accounting is a decision support method that provides an accounting-oriented measurement of operational performance indicators.
It involves designing accounting and asset management from an operational point of view, in order to obtain a better understanding of operational issues by the finance department and thus improve the overall flow of processes in a company.