Operating practice
Throughput as a Service
We raise shipped output on the assets you already have. We find the constraint, plan the plant around it, and put AI on top of that plan.
The narrowest point sets the output of the whole plant
01 / The problem
Growth breaks planning
Aerospace and defense manufacturers scaling to rate hit the same wall. The bottleneck moves, work piles up in front of it, ship dates slip, and capital lands on resources that were never the limit. Expediting stops working.
02 / The measure
Throughput
Throughput is the rate at which the plant turns sales into cash: revenue minus truly variable costs, per period. Truly variable costs move one for one with each unit sold, such as raw material, purchased parts, and outside processing. Labor and overhead are operating expense.
- TT / ThroughputSales minus truly variable costs, per period
- Throughput
- II / InventoryMoney tied up in what the plant will sell
- Inventory
- OEOE / Operating expenseMoney spent turning inventory into throughput
- Operating expense
NET PROFIT = TT / ThroughputSales minus truly variable costs, per period − OEOE / Operating expenseMoney spent turning inventory into throughput
RETURN ON INVESTMENT = (TT / ThroughputSales minus truly variable costs, per period − OEOE / Operating expenseMoney spent turning inventory into throughput) / II / InventoryMoney tied up in what the plant will sell
Accountants call it contribution margin. We manage it per hour of the constraint.
Illustrative proportions · measured per period
03 / The method
One number runs the plant
Throughput at the constraint. Everything else is planned to protect it.
01
Identify
Find the resource that sets your output, measured from your order book, routings, and production logs.
02
Exploit
Zero idle constraint hours. No rework reaches it. Setups and test slots sequenced for yield.
03
Subordinate
Drum-buffer-rope release, time buffers in front of the constraint, WIP capped everywhere else.
04
Elevate
Capex, hiring, and new sites go where the plan says the next constraint sits.
05
AI on a sound plan
Constraint-aware scheduling, early-warning buffer alerts, and a planning assistant on your ERP and MES data.
04 / How an engagement runs
Four phases. A decision at the end of each.
PH-01 · 4 to 6 weeks
Constraint diagnostic
Value-stream map, the constraint named and priced per hour, a throughput baseline, and a 24-month capacity, headcount, and site plan.
PH-02 · 8 to 12 weeks
Planning system
Drum-buffer-rope scheduling, buffer management, and an S&OP cadence your team runs.
PH-03 · Overlaps phase 2
AI layer
Constraint-aware scheduler, buffer alerts, and a planning assistant on your own data.
PH-04 · Ongoing
Throughput as a service
An embedded operating cadence with your team. Fees can tie to throughput gains above the Phase 1 baseline.