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1 Throughput, Work-in-Process, and Cycle Time

IEOR 4000: Production Managementpage 1 Professor Guillermo Gallego1 Throughput, work -in-Process, and Cycle TimeThe purpose of this section is to obtain a basic understanding of the relationship that exists betweenthroughput, work -in process, and Cycle times. We will assume a production system where parts gothrough a specific routing. Thethroughput, denoted byTH, is the average output per unit time , ,number of widgets per hour. The inventory between the start and the end points of a productionsystem (not counting crib inventory or finished goods inventory) is calledwork-in-process(WIP).Thecycle time (CT) of a given production system is the average time parts spend as bottleneck raterbis the rate of the process center having least long-term capacity.

1 Throughput, Work-in-Process, and Cycle Time The purpose of this section is to obtain a basic understanding of the relationship that exists between throughput, work-in process, and cycle times. We will assume a production system where parts go through a specific routing. The throughput, denoted byTH, is the averageoutput per unit time, e.g.,

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