In today’s VUCA (volatility, uncertainty, complexity and ambiguity) environment, customer experience is the new battlefield. Increasingly, customers base their loyalty not on price and product but on service—the ability of organizations to keep their customer promise.
As a result, organizations with high throughput levels are perfectly poised to take away market share from lower throughput competitors. Higher throughput is a key indicator that an organization can produce and deliver a product most efficiently and deliver within the promised delivery window, effectively meeting customer demand.
The challenge is that all too many of us do not fully understand how to best leverage SAP tools to build throughput rates nor do we fully grasp the entirety of what is happening on the shop floor. Without insights into the efficiency of our production lines, we won’t be able to identify the capacity restraints that may or may not be built into our supply chain. As a result, we are in danger of under or overpromising to our customers, which leads to customer churn and lost revenue opportunities.
Recognizing the value opportunity of identifying and measuring throughput is therefore essential to keep us agile and flexible in serving customers. For production managers, that means gaining awareness into where the production throughput is being constrained and where choke points are slowing throughput. Through this identification of bottlenecks, managers can then develop improvements and increase production volumes.