Meaning
Systematic identification of the specific stage in a production sequence that limits the total system output. Improving a non bottleneck station provides no benefit to the overall throughput of the plant. Process bottleneck diagnosis is the first step in any capacity expansion project.
It identifies where the most value can be gained from an investment.
Constraint Identification
Utilization levels are measured at every point in the manufacturing cycle. When process bottleneck diagnosis is performed, the station with the highest utilization and the largest backlog is revealed. This point is the primary constraint.
Throughput Analysis
Flow rate of the entire system is dictated by the speed of the slowest machine. If process bottleneck diagnosis is done correctly, it shows that increasing the speed of the bottleneck increases the yield of the whole factory. Other stations will simply wait longer if they are improved instead.
Improvement Priority
Capital and labor should be directed toward the constraint to maximize the return on investment. A process bottleneck diagnosis prevents the waste of resources on secondary issues. Once the first bottleneck is cleared, a new one will inevitably appear elsewhere in the system.
This cycle of analysis and improvement is necessary for a firm to reach its maximum demonstrated rate. Understanding the location of the current limit is the only way to plan for future growth.