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What is Bottleneck?

Bottleneck: The step that limits a whole process's speed.

Where Bottleneck fits

Bottleneck is part of Operations in Management. Operations turn inputs into outputs. Find the bottleneck, cut waste with lean methods, outsource non-core work and use economies of scale as volume grows.

Practical tip

Improve the slowest step first; speeding up others changes nothing.

Related terms

Outsourcing
Hiring outside firms to do part of the work.
Economies of scale
Average cost per unit falls as output grows.
Lean manufacturing
Cutting waste in production while keeping quality and value.
Capacity planning
Deciding how much output a business can handle.
Standard operating procedure
A step-by-step guide for routine tasks.
Process mapping
Drawing the steps of a workflow.
Waste reduction
Cutting activities that add no value.

Formulas you will use with it

Inventory turnoverEconomic order quantity (EOQ)Reorder pointSafety stock

Test yourself

Which term means: “The step that limits a whole process's speed.”?

Outsourcing · Bottleneck · Waste reduction

Answer: Bottleneck

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