Bottleneck Management: Theory and Practice
Department
Management and Entrepreneurship
Document Type
Article
Publication Date
7-2006
Abstract
Advocates of TOC believe that bottleneck resource restricts an operation's ability to make money, and the best way to maximise income is to fully exploit the bottleneck resource. Almost all TOC literature focuses on situations where 100% bottleneck utilisation is applied. Based on the implementation experience, the finding is that the optimal level of bottleneck utilisation should be less than 100% and any attempt to increase utilisation beyond the optimal level brings disastrous results for a door manufacturing plant. In order to improve and maintain the performance of the plant effective bottleneck management is critical. The experience provides a deeper understanding of how to design such plants, which could be beneficial for practising managers and academics working with TOC concepts.