tech
Bottleneck
The single constraint that limits how much output the whole system can produce.
Definition
A bottleneck is the slowest step in a process - the constraint that limits total throughput. Adding capacity anywhere except the bottleneck doesn't help; only relieving the bottleneck speeds up the whole system. In service businesses, the bottleneck is usually the founder (selling, delivering, deciding) early on, then shifts to specific delivery roles, then to systems. Theory of Constraints: identify the bottleneck, exploit it (maximize its output), subordinate everything else to it, elevate it (add capacity), repeat.
In your business
- →Identify the current bottleneck explicitly - it's usually obvious once you look
- →Don't invest in non-bottleneck capacity - it just creates inventory
- →When you relieve one bottleneck, the next one becomes visible - the cycle continues