Delivery Rate Versus Throughput
Try this: Order a meal via the drive through of a McDonald's restaurant...note of the start time the moment you place your order ... and the end time the moment you get your order (the delivery point). That is the Lead Time -- the time it takes to complete something of value. End to end. In this example, say 5 minutes. Assume, at that time, that they (Macdonald's service providers) have 5 work orders in process (WIP). Delivery Rate ((DR) = WIP divided by Lead Time (LT) DR = 5 orders / 5 minutes DR = 1 order / minute…