Strategy & Finance

Newsletter · Operations

Find the bottleneck before adding capacity

More people or equipment may not solve a delivery problem. Start by understanding where work waits.

Follow the work from start to finish

When orders arrive late, the busiest department often attracts the most attention. Yet visible activity is not the same as the constraint on output. Work may be waiting for specifications, approvals, materials or a final inspection. Looking at the whole sequence helps distinguish a genuine capacity limit from a problem that originates somewhere else.

Separate working time from waiting time

A useful starting point is to follow a typical order through each step. Record when work begins and ends, and what happens in between. A task that takes an hour to complete may spend several days in a queue. Understanding the reason for that queue can be more useful than trying to shorten the task itself.

A hypothetical production example

Imagine a small manufacturer considering another machine because deliveries are slipping. Cutting and assembly appear busy, but completed units are accumulating before inspection. Only one employee can approve them, and that employee also handles customer complaints. Additional production equipment would not remove this approval constraint. It could leave more unfinished orders waiting at the same point.

Test a focused change

In this example, the team might examine inspection scheduling, the causes of repeat checks and whether another person can be trained to the required standard. The appropriate change depends on why the queue exists. A short trial with a clear owner can help reveal whether the proposed adjustment improves completed deliveries without creating quality problems elsewhere.

Measure what reaches the customer

Activity measures, such as machine hours or units started, tell only part of the story. Completed orders, lead times and rework provide another view. After a change, check whether the queue has reduced or simply moved to another stage. Keep the scope of the trial clear so that its results can be interpreted.

A question for the team

Where does an order spend the longest time waiting, and what must happen before it can move? Asking the people who do the work often uncovers dependencies that a production schedule does not show. The aim is to identify the next useful improvement before committing to a larger investment.

Further reading

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