Sunday, March 20, 2011

Throughput

Business historian Alfred D. Chandler has argued that a high rate of “throughput” was the most important aspect of these mass production systems. “Throughput” is the speed and volume of its flow. This idea is important in production systems because a high rate of “throughput” means high efficiency. For example, since assembly line systems adopted by McDonald’s, a small number of employees can produce an enormous amount of foods cheaply. In the mean time, because the assembly line systems makes work simple. For employees, work becomes easier and less skill. The employers save a lot of time and money to train employees. It also means, employees are easy to replace, so usually they got minimum wage. For employers, it makes them easily control the employees. A high rate of “through put” is the key of McDonald’s success.   Thus, the way to increase “throughput” is important to a company.

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