How to Improve Throughput Time: A Guide to Increasing Operational Efficiency

Throughput time is a crucial metric for evaluating manufacturing efficiency. It measures the total time required for a product to proceed through production – from raw materials to finished goods out the door. The shorter the throughput time the faster and more responsive your operations.

Lengthy throughput times indicate inefficient processes and excess work-in-progress. This leads to higher operating costs, inability to meet customer demand, and declining competitiveness. Improving throughput is thus vital for maximizing productivity and profits.

Follow this comprehensive guide to reduce your throughput times

Understand Current Workflow

Start by thoroughly understanding your existing workflow and production steps. Map out the:

• Sequence of manufacturing processes
• Time spent at each workstation
• Movement of materials between stations
• Inputs and outputs of each step
• Methods used for each operation

Document any queues or delays between processes. Identify bottlenecks where work piles up. Time how long each activity takes with a stopwatch.

Conduct this analysis during both peak and average loads to see impacts at different utilization levels. Observe processes first-hand when possible rather than relying on hearsay.

The goal is pinpointing where throughput bogs down. This data serves as a baseline to measure improvements against. You can’t optimize what you don’t fully comprehend.

Eliminate Operational Bottlenecks

Bottlenecks are the greatest constraints to efficient throughput. They occur when one process holds up the entire workflow. Typical bottlenecks include:

• Overloaded machines or departments – Resources lack capacity to handle volume.

• Unbalanced line flow – Some steps are quicker than others, causing work to accumulate.

• Equipment downtime – Breakdowns bring the line to a standstill.

• Delayed material deliveries – Parts shortages grind operations to a halt.

• Slow testing or inspections – Mandatory quality checks create logjams.

Once you’ve identified the bottlenecks, address them with one of these tactics:

• Add capacity – Increase staffing, facilities, equipment and inventory where needed.

• Balance workflows – Level out uneven workflows by re-sequencing steps or using smaller batches.

• Improve scheduling – Stagger workloads, plan maintenance and balance priorities.

• Upgrade equipment – Invest in newer technology and automation to remove constraints.

Alleviating even one bottleneck can significantly improve overall throughput. Monitor progress and tweak capacity levels as needed.

Reduce Equipment Downtime

When machinery goes down, it brings production to a standstill. Each minute of downtime translates directly into slower throughput.

To minimize disruptions:

• Follow preventative maintenance schedules – Perform routine inspections, testing and repairs to prevent surprise outages.

• Reduce changeover times – Standardize setup procedures and tooling to shorten changeovers between product runs.

• Streamline repairs – Have spare parts, technicians and procedures in place to fix issues quickly.

• Train staff – Educate employees on proper equipment operations to avoid misuse and damage.

• Consider redundancies – For critical assets, have backups available to swap in during outages.

Monitoring overall equipment effectiveness (OEE) helps assess downtime impact and improvement opportunities. Every percentage gain makes throughput more robust.

Decrease Defects and Rework

Defective parts that require rework or cause production stoppages severely hinder throughput. Some options to reduce defects include:

• Optimize processes – Tweak settings and parameters to boost quality consistency. Perform design of experiments.

• Tighten supplier standards – Improve inspection of purchased materials and specifications for outsourced parts.

• Implement quality controls – Add testing throughout processes to catch issues immediately. Perform root cause analysis.

• Train staff – Ensure employees have skills needed to meet quality requirements and handle parts properly.

• Upgrade equipment – Automate processes and add sensors to minimize human errors.

• Simplify designs – Reduce unneeded complexity that increases opportunities for defects.

High-quality products keep throughput smooth by eliminating rework, scrap and delays. Use metrics like parts rejection rates and scrap costs to quantify improvements.

Optimize Inventory and Logistics

Insufficient materials and delayed deliveries negatively affect throughput by disrupting production flow. Some best practices include:

• Right-size inventory – Carry adequate stocks of parts to avoid shortages but not excess. Consider safety stock for high-runners.

• Improve forecasting – Boost forecast accuracy to plan inventories and capacity. Account for uncertainty.

• Standardize processes – Document procedures to reduce variability in cycle times.

• Communicate with suppliers – Collaborate with suppliers to align deliveries with demand.

• Simplify product designs – Use fewer unique parts to streamline sourcing and inventory needs.

• Utilize smart storage – Design organized warehouses and storage areas to locate parts faster.

Smooth logistics keeps the right materials in the right place at the right time. This balances supply with production requirements for optimal throughput.

Leverage Factory Automation

Automating manual or slow processes using robotics and smart technology can dramatically speed up throughput. Benefits include:

• Faster speeds – Machines work quicker than human hands.

• 24/7 operation – No breaks, fatigue or distraction.

• Fewer errors – Consistent quality with minimal defects.

• Easy scalability – Add capacity simply by adding equipment.

• Real-time monitoring – Sensors track metrics and alert to issues.

• Enhanced control – Software ensures precise process parameters.

Look for repetitive, hazardous or slow steps involving material handling, assembly, inspection or data collection that can benefit most from automation. Weigh costs against throughput savings.

Improve Operational Visibility

You can’t manage throughput efficiently without real-time visibility into production. Technology like manufacturing execution systems (MES), sensors and IoT devices provide:

• Live status of work-in-progress levels, cycle times and inventories

• Automated alerts for delays, outages and shortages

• Data to optimize staffing, scheduling and forecasting

When issues arise, instantly deploy actions like rerouting orders, reassigning labor or expediting deliveries. Staying on top of operations is crucial for fast throughput.

Motivate Employees

The people running equipment and processes significantly impact throughput too. Boost productivity with tactics like:

• Incentives – Reward workers for throughput achievements with bonuses or recognitions.

• Training – Expand worker skills to master procedures and overcome problems.

• Feedback loops – Share throughput data and gather input on improvements.

• Ergonomic tools – Provide equipment and aids to reduce fatigue.

• Friendly competition – Post throughput metrics by workgroup to motivate gains.

Informed, engaged employees will help achieve aggressive throughput targets.

Take a Continuous Improvement Approach

Boosting throughput requires continuous monitoring of production and seeking ongoing refinements. Possibilities include:

• Right-sizing batch sizes for optimal work flow

• Adding overflow workstations as needed during peak loads

• Rebalancing processes as volumes change

• Further automating manual or inefficient steps

• Switching suppliers or logistics partners if better options exist

Small tweaks and innovations add up over time for substantial collective gains. Maintain an improvement mindset.

Key Takeaways

Throughput directly influences operating expenses, customer service and responsiveness. Cutting throughput time unlocks substantial savings and performance gains.

Assess your workflow to pinpoint bottlenecks and waste. Alleviate constraints through added capacity, upgraded equipment, defect reductions, automation, optimized inventory and employee engagement.

Target throughput improvements as an ongoing initiative, tracking quantifiable results like cycle times, downtime, work-in-progress and product velocity. Faster throughput means faster growth and profits.