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1. What is a Bottleneck?

A bottleneck is the slowest process or operation in a sequence that limits the overall performance of a system. It's a constraint that defines the system's maximum output.

• Occurs when the output capacity of one process is lower than the demand.
• Causes accumulation of work (WIP – Work in Progress) before the bottleneck process.
• Impacts efficiency, delivery timelines, and costs.

Key Problems Caused by Bottlenecks:
1. Overstocking of materials waiting for processing.
2. Delays in fulfilling customer orders.
3. Underutilization of downstream processes.
4. Increased stress on employees, causing low morale.


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2. Example of Bottleneck Analysis in Manufacturing

Let's examine a manufacturing process with four operations:
Operation 1: 125 units/hour
Operation 2: 90 units/hour
Operation 3: 100 units/hour
Operation 4: 75 units/hour

In this example:

• The slowest process is Operation 4 at 75 units/hour, making it the bottleneck.
• Even if other operations produce faster, they will cause WIP buildup before Operation 4.
• The total system capacity is limited to 75 units/hour.

How to Calculate System Capacity?

QuoteSystem capacity = Output of the bottleneck process
Example: Operation 4 limits the system to 75 units/hour.

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3. Considering OEE (Overall Equipment Effectiveness)

OEE measures the actual productivity of a process considering:

• Availability: Downtime and uptime of equipment.
• Performance: Speed losses (e.g., running slower than design speed).
• Quality: Products that meet quality standards.

For the same example, if we apply OEE:
Operation 1: 125 units/hour with 60% OEE → 125 * 60% = 75 units/hour
Operation 2: 90 units/hour with 70% OEE → 90 * 70% = 63 units/hour
Operation 3: 100 units/hour with 80% OEE → 100 * 80% = 80 units/hour
Operation 4: 75 units/hour with 99% OEE → 75 * 99% = 75 units/hour

Impact of OEE on Bottleneck:

• Initially, Operation 4 (75 units/hour) was the bottleneck.
• After considering OEE, the bottleneck shifts to Operation 2 with 63 units/hour.
• Therefore, real capacity depends on OEE, not just designed capacity.

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4. Identifying Bottlenecks

Follow these three steps to identify bottlenecks:

• Visualize the Process: Observe the flow and locate bottlenecks where delays or WIP accumulate.
• Map the Process: Create a detailed process flow map with inputs, outputs, and cycle times.
• Measure Cycle Times: Compare cycle times of each operation to find the slowest one.

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5. Managing Bottlenecks

Key Strategies:
1. Prevent Overproduction: Align upstream processes with the bottleneck's capacity.
2. Add Resources: Increase personnel, equipment, or tools at the bottleneck.
3. Monitor WIP: Keep inventory levels manageable before the bottleneck.
4. Adjust Schedules: Plan production based on bottleneck capacity.
5. Extend Operating Time: Increase working hours or shifts for the bottleneck operation.
6. Eliminate Downtime: Reduce scheduled and unscheduled downtimes.
7. Implement Continuous Improvement: Apply Lean or Six Sigma methodologies.

Examples of Continuous Improvement Tools:

• Kaizen: Implement small, incremental improvements.
• 5S: Organize and maintain workspace efficiency.
• Value Stream Mapping: Identify waste in the process flow.

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6. Conclusion

Bottleneck analysis is essential for understanding and improving system performance. By identifying and managing bottlenecks, organizations can:

• Increase efficiency.
• Reduce costs and delays.
• Optimize the use of resources.

Remember: "The slowest step defines the system's speed."