Maximizing Resource Utilization: Addressing Bottlenecks
Jan Willem Tromp
Co-founder and researcher on Epicflow Multi-Project Resource Management Enterprise Solution
In project management, focusing solely on utilization as a KPI can lead to resource behavior changes aimed at fulfilling utilization targets, rather than improving productivity. To truly increase utilization across the entire company, especially when dealing with bottlenecks, you need a strategic approach.
When a bottleneck occurs, it restricts the workflow, causing delays and reducing overall utilization. To increase utilization across the company, it's essential to address the bottleneck effectively. What’s the solution? Elevating the bottleneck.
Let’s see how we can do this by following the simple steps:
Ensure that the most critical tasks for the bottleneck resource are prioritized. This minimizes idle time and maximizes throughput. Simplify and streamline the processes involving the bottleneck resource to reduce setup times and inefficiencies. Make sure the bottleneck never becomes idle.
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Distribute work more evenly across all resources to balance workload. While focusing on the bottleneck, ensure that other resources have a steady flow of tasks ready to start as soon as the bottleneck is cleared. Train other team members to handle tasks (or parts) that typically fall on the bottleneck resource, thereby spreading the load and increasing flexibility.
Establish clear communication channels to ensure that all team members are aware of priorities and task statuses. This reduces delays and confusion. Utilize project management tools to monitor and manage tasks, ensuring that any issues at the bottleneck are quickly identified and addressed.
By enabling the bottleneck, you maximize the flow of work through the most constrained resource. This, in turn, ensures that other resources have a continuous stream of tasks to work on, organically increasing their utilization. The result is a more balanced and efficient workflow across the entire company, leading to higher overall utilization without compromising on quality or efficiency.
Engineering, Product and Innovation Leader | Transforming Product Development Systems into Dynamic Growth Engines
3 个月Resource utilization is probably one of the worst metrics to use for delivering value because the default is more is better which is not true.
Digital Transformation in Manufacturing / Defense / Aviation&Space | Epicflow | AI-Driven Enterprise Solution for Multi-Project Resource and Portfolio Management | JOSCAR Certified & Trusted by the UK MOD
3 个月I completely agree that prioritizing bottlenecks is key to maximizing resource utilization. Addressing constraints effectively ensures smoother operations and better overall outcomes.
Senior consultant at ADSE
3 个月I've seen this in a big aerospace program where management was steering solely on CPI and SPI whilst overlooking slip on the critical path... The team only did the easy tasks and postponed the trickier ones to later in time. I only convinced them by explaining that in the beginning we pick apples hanging lowest in the tree but in the end we will climb higher and need to put more effort in one apple than before to get all apples out of the tree.