# Bottleneck Analysis

> Find the one step that limits the whole process and fix that first.

Chapter I, Systems thinking · 1.07 · Origin: Eliyahu M. Goldratt (1984) · Time: 20 to 40 min · Solo or group

**Use it when** work piles up and more effort doesn't make anything faster.

Interactive workspace: https://kogu.tools/tools/bottleneck-analysis

## Abstract

A process only moves as fast as its slowest step. Eliyahu Goldratt built the Theory of Constraints on that observation. Speeding up any other step makes people look busier, but the system doesn't produce any more.

His Five Focusing Steps turn the idea into a routine. Find the constraint and get as much as you can out of it. Pace everything else to it. Add capacity there only if you still need to, then go looking for the next constraint.

## Method

1. **Map the stages.** List the steps work goes through, in order, with how much each one can handle in a day or a week.
2. **Identify the constraint.** Find the stage with the least capacity compared with demand. Work usually piles up right in front of it.
3. **Exploit it.** Make sure the constraint never sits waiting for input and never spends time on work that will be thrown away.
4. **Subordinate everything else.** Set the pace of the other stages by the constraint. Producing more upstream just makes the queue longer.
5. **Elevate it.** If the constraint still holds the system back, add capacity there, whether that's another person or a better tool.
6. **Repeat.** Once the constraint moves, start again with the new one. Rules written for the old constraint often become the next one.

## When to use it

- Everyone is busy but output isn't going up.
- Work queues up in one place while other teams wait for it.
- You have money for improvements and want to spend it where it makes a difference.

## Common pitfalls

- Improving every step. Gains away from the constraint add cost without adding output.
- Buying capacity first. Getting more out of the constraint is cheaper and often enough.
- Chasing full utilisation everywhere. Steps that aren't the constraint should have some slack.
- Forgetting that the constraint can sit outside the process, in market demand or a company policy.

## References

- Goldratt, E. M., & Cox, J. (1984). The Goal: A Process of Ongoing Improvement. North River Press.
- Goldratt, E. M. (1990). What Is This Thing Called Theory of Constraints and How Should It Be Implemented? North River Press.
- Little, J. D. C. (1961). A proof for the queuing formula L = λW. Operations Research, 9(3).