What is Throughput?
The rate at which a system or process produces output over a given period of time.
Detailed Explanation
Throughput measures the quantity of work completed within a specific timeframe, such as orders processed per day, patients seen per hour, or projects delivered per quarter. It is a fundamental measure of process capacity and is directly affected by bottlenecks, cycle time, and resource availability. Maximising throughput requires balancing workload across all stages of a process, minimising waiting time between steps, and ensuring adequate capacity at every point. Throughput is distinct from output quality — high throughput with high defect rates indicates a different problem.
Why It Matters
Throughput directly correlates with revenue capacity. Understanding your true throughput helps you make informed decisions about staffing, pricing, and whether to accept new work. It also provides an objective measure of whether process improvements are actually delivering results.
Example
An electrical contracting business tracks that their team of six electricians completes an average of 22 residential jobs per week. After implementing standardised job packs and pre-staged materials, throughput increases to 28 jobs per week without adding staff.
Related Terms
A point in a process where the flow of work is restricted or slowed, limiting the overall throughput of the system.
The total elapsed time from the start of a process or task to its completion.
The process of determining the production capacity needed to meet current and future demand for products or services.
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