05 December, 2013

1-4-3 value delivery: Throughput

The rate at which your value delivery system delivers what you want to achieve
There are 3 ways to measure the throughput. You can use one or more of them. Not all of them are applicable and represent a real indicator to every business

One or more will be more important to your business than the others 

Mainly they depend on 3 things: money, unit number, time

The 3 types are:

1-     Dollar throughput:
How fast does your business generate money over a certain period of time?
-          Example: How much money does a certain subscription-type website make in a month?

2-     Unit throughput:
How many units does your business generate over a certain period of time?
-          Example: How many donuts does a certain bakery make over an hour?

3-     Satisfaction throughput:
How long does your business take to deliver the value AND make a happy customer?
-          Example: How long does it take for a customer to enter Mac, get his order and get out?


Measure these throughputs and you will get a pretty accurate measure of how good is your delivery system :)