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Implementing Process Of On Going Improvement (POOGI) Part 2 - Introduction to Bottleneck

At the first part of Implementing POOGI  , I described that in order to balance a system, market demand should not be matched to resource capacity because of the relationship of two phenomenons: Dependent Events and Statistical Fluctuation. However, you should balance the capacity of the production "flow" to market demand. In this case, some resources may have idle time and some may turn into system constraint. In fact, the capacity of the flow should be little bit less than the demand, so if demand goes down you do not loose money. In balancing the flow, you may realize that some resource have less capacity than market demand and are impacting the entire flow. These resources are bottlenecks or to put it in a better term,system constraints. So, bottleneck is a resource whose capacity is equal to or less than demand placed upon it. And a non-bottleneck is any resource whose capacity is greater than the demand placed on it. Here are couple of facts on bottleneck / Constrai...