10 Questions
What is the formula for calculating throughput rate?
Throughput = Inventory / Time
Which stage of the production process does Move Time refer to?
Sub-assembly movement
Why is it important for company managers to identify backlogs, bottlenecks, or slowdowns?
To improve efficiency and increase ROI
Which category of throughput time covers the steps from raw material to assembly and finished product?
Processing Time
In the context of throughput accounting, what does 'I' stand for in the formula mentioned?
Inventory
What factor can help increase return on investment (ROI) and profitability in a production process?
Quicker throughput times
What does Inspection Time mainly involve?
Visual quality testing
'Queue Time' increases depending on what aspect of the production process?
Complexity of the production process
'Move Time' in a production process is primarily influenced by what factor?
of workstations for moving sub-assemblies
How does identifying backlogs, bottlenecks, or slowdowns affect company efficiency?
Increases efficiency and improves ROI
Test your knowledge on counting units at different stages of the production process and calculating total physical inventory. Understand the concept of cycle time in throughput accounting.
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