Bottlenecks interfere with process efficiency. To prevent this, companies must identify and find ways to overcome these bottlenecks. Doing so will restore smooth, efficient operations.
What is a Bottleneck?
Bottlenecks are items that reduce the efficiency of a process or system.
They limit production and efficiency by slowing the flow, much as the neck of a bottle slows the liquid flow. The slowest machine or worker in a process or system determines the pace of the process, serving as the bottleneck.
These items may interfere with the process continuously or temporarily. They may have a minor impact on the process or bring it to a halt altogether. The slowdown is dependent on the complexity of the process and its interdependencies.
Pinpointing Bottlenecks
Business owners must be able to uncover bottlenecks and resolve them. How can they do so? It begins by assessing your productivity. The process flow must be observed and analyzed to determine where work is backing up and why.
One process step may be backed up, which suggests it is a bottleneck.
However, the owner should also determine where resources aren’t balanced or areas of significant delays. Key performance indicators help identify bottlenecks, and the owner may use other metrics such as throughput, wait times, and cycle times.
Correctly identifying bottlenecks requires objective data.
Using Lean Six Sigma to Identify Problem Areas
Lean Six Sigma tools and techniques help identify bottlenecks.
Process mapping recreates the process flow visually to locate them. This visual representation makes it easy to see where work is backing up or if there is a wait time. The Value Stream Map might be a simple diagram or very detailed.
It might show each step’s cycle time and the amount of work waiting to be completed at that process step.
Data Analysis provides more information about each process stage and its performance. Owners can review and analyze information regarding throughput and wait times while learning about how resources are utilized.
They then determine which stages are underperforming and how to increase productivity.
The bottleneck theory requires the application of queuing theory and operations research principles. It looks at how lines form and evolve with time so they can be better managed.
This theory becomes more important when waiting times lead to bottlenecks. Operations research uses mathematical techniques to determine the performance of complex systems and how best to allocate resources.
Types of Bottlenecks
Bottlenecks vary by location within an organization. Physical bottlenecks result from physical limitations, such as a lack of space, while technical bottlenecks occur because the right tools aren’t in place. Often, the bottlenecks are organizational.
These roadblocks must be overcome by changing policies or improving human resource processes. Sadly, organizational bottlenecks are typically the most critical but often overlooked.
Addressing Bottlenecks
Organizations may take many steps to address these problem areas. Short-term strategies include resource reallocation and process adjustments. Long-term strategies include increasing capacity, re-engineering processes, and implementing technology.
The company must determine which steps are most appropriate for the identified bottlenecks.
Any bottleneck within an organization is of concern as it interferes with normal business processes. Companies must identify these challenges and find solutions to overcome them, a skill many lack.
Lean manufacturing techniques can help uncover and address the challenges through short-term and long-term strategies. Doing so will result in optimized processes and increased productivity.
The company will gain a competitive edge while better meeting the needs of its customers, so everyone wins.