Methods
How we measure and price capacity
The method behind every exhibit: from lost hours to units to cash, with the assumption beside each step.
Methods
Placeholder. This page is placeholder copy written to test layout and tone. It is not published research and makes no factual claims.
The chain of conversion
Every loss is expressed first in hours of the constraint, then in units at the line’s rate, then in cash at the margin the plant would have earned. Each conversion carries a stated assumption. The worked example below uses placeholder inputs only.
Illustrative data
- Step 1 Hours
Lost hours at the constraint = 1,900 hAssumption: placeholder total of recoverable hours, one site, one year - Step 2 Units
Units = 1,900 h × 40 units/h = 76,000 unitsAssumption: placeholder line rate at standard speed - Step 3 Cash
Contribution = 76,000 units × $12 = $912,000Assumption: placeholder contribution margin per unit (price minus variable cost)
What counts as a loss
The method separates five categories: stops, changeovers, slow running, rework and waiting. Definitions for each, with measurement boundaries, will be published here.
Exhibit standards
- Every exhibit is numbered, carries a full-sentence title stating its finding, a unit line and a source line.
- Exhibits that use placeholder values carry an “Illustrative data” tag, and their source line says so.
- Charts include a data table alternative and a text description for screen readers.
Limits
This section will describe what the method cannot tell a reader, and where judgment replaces measurement.