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In production and project management, a bottleneck is a process in a chain of processes, such that its limited capacity reduces the capacity of the whole chain. The result of having a bottleneck are stalls in production, supply overstock, pressure from customers, and low employee morale. [1] There are both short and long-term bottlenecks.
In streamline manufacturing, the bottleneck is the station of a production line where greatest limiting factor lies. It is generally the station with the greatest amount of work in process at the work station. Bottlenecks often results in slow production times, surplus of raw material and low employee morale.
In engineering, a bottleneck is a phenomenon by which the performance or capacity of an entire system is severely limited by a single component. The component is sometimes called a bottleneck point. The term is metaphorically derived from the neck of a bottle, where the flow speed of the liquid is limited by its neck.
An earlier propagator of a similar concept was Wolfgang Mewes [2] in Germany with publications on power-oriented management theory (Machtorientierte Führungstheorie, 1963) and following with his Energo-Kybernetic System (EKS, 1971), later renamed Engpasskonzentrierte Strategie (Bottleneck-focused Strategy) as a more advanced theory of bottlenecks.
Bottleneck (engineering), where the performance of an entire system is limited by a single component; Bottleneck (network), in a communication network; Bottleneck (production), where one process reduces capacity of the whole chain; Bottleneck (software), in software engineering; Interconnect bottleneck, limits on integrated circuit performance
Throughput Accounting also pays particular attention to the concept of 'bottleneck' (referred to as constraint in the Theory of Constraints) in the manufacturing or servicing processes. Throughput Accounting uses three measures of income and expense: The chart illustrates a typical throughput structure of income (sales) and expenses (TVC and OE).
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Overall equipment effectiveness [1] (OEE) is a measure of how well a manufacturing operation is utilized (facilities, time and material) compared to its full potential, during the periods when it is scheduled to run.