What Is A Bottleneck?

A bottleneck is a point of congestion or obstruction that slows down, jams, or otherwise impairs the production process. It typically occurs when the available resources are unable to keep up with the demand of an otherwise smooth-running operation, resulting in a significant decline in throughput. Bottlenecks can happen anywhere in the supply chain — upstream in the form of raw material shortages, downstream with packing and shipping, or within a production facility — and, no matter where they occur, can create significant problems for manufacturers, vendors, and consumers alike.

Types Of Bottlenecks

There are two primary types of bottlenecks in a production system: short-term and long-term. Short-term bottlenecks are typically due to external factors and occur as a result of temporary issues relating to the availability of personnel, parts, equipment, and inventory. Long-term bottlenecks are more internalist in nature and are generally built into the manufacturing protocol. Such bottlenecks usually have to do with inefficient equipment or processes.

Consequences of Bottlenecking

Bottlenecking has significant consequences for the average production process:

Time: Bottlenecks can significantly slow production, resulting in delayed lead times and missed deadlines, particularly if new orders occur during a period of high demand.

Cost: As production slows, labor costs quickly increase as workers attempt to overcome bottlenecks while working around them and as they adjust production, resources, or processes to make up for lost time.

Quality: When workers are rushed to meet quotas or deadlines, quality can suffer greatly, resulting in a low-quality product, scrap, and rework.

Eliminating Bottlenecks

Fortunately, bottlenecks can be avoided through an organized effort to identify, analyze, and eliminate them. This involves a careful evaluation of the entire production process, from raw materials to shipping. Once identified and thoroughly studied, bottlenecks can be eliminated through targeted changes to equipment, standard operating procedures, and process layout. These changes can significantly increase production efficiency and reduce costs, allowing businesses to move from an inefficient to a lean manufacturing environment.