Flow time in operations management is the total time required for a product to move from the start of the production process to the finish. This important measure of efficiency is used to help identify where bottlenecks can be eliminated and performance be improved.
To calculate the flow time for a product, firstly the total time from start to finish must be calculated. This is done by adding up the different processing times associated with each step of the process:
Gathering inputs and raw materials – includes all times associated with the procurement of the necessary materials to start the production process.
Processing the inputs and raw materials – this includes all times associated with the actual production of the product.
Quality checks and packaging – this includes the times associated with making sure the product is of good quality, and any times associated with the packaging of the product.
Logistical times – this includes all times associated with moving the product from one step in the production process to the next.
Once the total time from start to finish has been calculated, the average flow time can be calculated by dividing this total by the total number of products produced. This is a good measure of the efficiency of a particular production process, as it shows how quickly a product can move through the process, as well as any bottlenecks that exist.
For more information on how to calculate flow times in operations management, please see this guide by the Journal of Business Logistics: https://onlinelibrary.wiley.com/doi/full/10.1111/j.2158-1592.2007.00043.x