System and method for throughput measurement
View Patent ↗A computerized method for determining throughput includes generating a demand array of item orders and generating a supply array of manufacturing inventory. The method includes selecting an item order in the demand array, and; matching manufacturing inventory in the supply array with the selected item order. The method also includes assigning a throughput value to the selected item order based on the matched manufacturing inventory.
1. A computerized method for determining a throughput value associated with one or more item orders, the method comprising:
(a) generating a demand array of customer order line items;
(b) generating a supply array of manufacturing inventory work orders;
(c) selecting a customer order line item in the demand array;
(d) matching a manufacturing inventory work order in the supply array with the selected customer order line item;
(e) determining a selling price based on the selected customer order line item;
(f) determining a materials cost and an outside services cost from the matched inventory work order;
(g) determining a throughput value of the selected customer order line item by subtracting the determined materials cost and the determined outside services cost, but not subtracting any fixed costs, from the determined selling price, wherein the throughput value is an amount that the customer order line item contributes to the generation of profit through sales; and
(h) associating the determined throughput value with the selected customer order line item.
2. The method of claim 1 wherein step (g) further comprises subtracting further variable costs that are not fixed costs from the determined selling price.
3. The method of claim 1 wherein step (a) comprises generating a demand array of unshipped customer order line items.
4. The method of claim 1 wherein step (b) comprises generating a supply array of uncompleted inventory work orders.
5. The method of claim 1 wherein step (a) comprises generating a demand array of shipped customer orders line items.
6. The method of claim 1 wherein step (b) comprises generating a supply array of manufactured inventory work orders.
7. The method of claim 1 , further comprising repeating steps (c), (d), (e), (f) and (g) until all of the manufacturing inventory in the supply array have been allocated.
8. The method of claim 1 , further comprising repeating steps (c), (d), (e), (f) and (g) until all of the item orders in the demand array have been allocated.
9. The method of claim 8 , further comprising calculating the sum total throughput value for all of the ordered items.
10. The method of claim 1 , wherein step (d) comprises matching the inventory work order with the customer order line item according to the sequence in which the customer order line items are stored in the demand array and the sequence in which the inventory work orders are stored in the supply array.
11. The method of claim 7 , further comprising generating a list of any unmatched customer order line items.
12. The method of claim 7 , further comprising generating a list of unmatched inventory work orders.
13. The method of claim 1 further comprising:
providing a plurality of needed resources for the selected item order;
selecting a first resource from the plurality of needed resources;
determining a number of resource hours of the first resource needed for the selected item order; and
calculating a throughput value per resource hour by dividing the associated throughput value by the number of resource hours.
14. An article of manufacture having computer-readable program portion contained therein for determining a throughput value associated with one or more item orders, the article comprising:
a computer-readable program portion for generating a demand array of customer order line items;
a computer-readable program portion for generating a supply array of manufacturing inventory work orders;
a computer-readable program portion for selecting an customer order line item in the demand array;
a computer-readable program portion for matching a manufacturing inventory work order in the supply array with the selected customer order line item;
a computer-readable program portion for determining the selling price from the selected customer order line item;
a computer-readable program portion for determining a materials cost and an outside services cost from the matched manufacturing inventory work order;
a computer-readable program portion for determining a throughput value of the selected customer order line item by subtracting a cost comprising the determined materials cost and the determined outside services cost associated with the matched manufacturing inventory work order from the selected customer order line item net selling price, but not subtracting any fixed costs, wherein the throughput value is an amount that the item order contributes to the generation of profit through sales; and
a computer-readable program portion for associating the determined throughput value with the selected customer order line item.
15. The article of claim 14 further comprising:
a computer-readable program portion for providing a plurality of needed resources for the selected item order;
a computer-readable program portion for selecting a first resource from the plurality of needed resources;
a computer-readable program portion for determining a number of resource hours of the first resource needed for the selected item order; and
a computer-readable program portion for calculating a throughput value per resource hour by dividing the associated throughput value by the number of resource hours.