In a nutshell: All four negative states a bottleneck is loosing (system) throughput

In a nutshell: All four negative states a bottleneck is loosing (system) throughput


btw: tp. means system throughput

Let’s go through all four negative and one ideal state of the bottleneck:

  • no work: if the bottleneck has no work, it can’t put things through; since the system’s throughput is determined by bottleneck’s it drops
  • missing parts: the bottleneck can start work but needs to interrupt work due to missing parts; it needs to touch this work order more times than required; this leaves it with less time to actually work on orders, hence system’s throughput drops
  • multitasking: similar effect and very popular in knowledge work: the bottleneck switches between multiple work packages; it’s net productive capacity and therefore system throughput drop
  • working on wrong material: if we need rectangular shaped figures but the bottleneck is busy with a circular one, it’s overactivated; in production prevalent where batches of different product variants exceed actual demand; variant: working on defect material
  • all negative combined: of course the preceding list entails each dynamic in isolation; in the field we find some combination of them, therefore depending on their prevalence we have a combined drop in throughput
  • ideal: ideally the bottleneck is never starved of non-defective work, only full-kits (no missing parts) that is actually driven by demand, no multitasking
  • potential: the potential is the multiple between the previous reduced throughput and the full utilisation of the bottleneck’s capacity


Definitions:

  • utilisation: actually using capacity for real demand without wasting it
  • overactivation: using capacity but not for current demand (we might consider to include wasted capacity for unnecessary switching here)


Since that also applies also to any organisation that works in some parts in projects…

Perform a quick self-check of your department’s state of work flow (project organisation or engineer-to-order) => Register for the Dolphin Study: https://dolphinstudy.info

It’s 2 studies in 1:

  1. Determine the root causes of your current (reduced) work flow level and
  2. a first indication of the potential of what’s possible with your current resources (with less stress btw).

You’ll get a benchmark against other participants. And it’s free.

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