Common Sense Throughput
Throughput is a measure of productivity that considers the contribution of a job or product toward company profit. To calculate actual throughput, it is the price of goods sold minus the cost required to produce it. VISUAL Enterprise includes a Common Sense Throughput™ module, which uses a throughput accounting strategy that takes this information and aggressively increases the profit of a manufacturing company by creating a schedule that increases throughput.
Using the Common Sense Throughput strategy, VISUAL Enterprise uses measurements not commonly used in ERP and MES software systems. Using the Throughput Window to access a variety of reports and inquiries, you can generate Actual or Expected Throughput reports, and Utilization, Contention, and Material Constraint inquiries. These tools provide the information you discuss at the daily Common Sense Throughput meetings.
You can use Common Sense Throughput to avoid incorrect decisions based on allocations and theoretical profit of a piece, and view audit trails that reliably identify potential resource and material bottlenecks. This allows you to obtain accurate measurements of absolute profit contribution, as well as assess the present and future orders that will produce the greatest profit.