UNIT II Benchmark, Bottlenecks and

Best Practices
Concepts of benchmarking,
 Bottleneck and best practices,
 Best performers – Gaining competitive edge
through world class manufacturing –
Value added manufacturing –
Value Stream mapping –
Eliminating waste -Toyota Production
System -Example.
• Definition:
• Benchmarking, is a tool of
strategic management, that
allows the organization to set
goals and measure
productivity, on the basis of
the best industry practices.
 CCE ‘S OF WCM
• 1)WORK HOME ASSIGNMENT
• 10 QUESTIONS
• 2)CASE STUDY PPT PREPARATION
MINIMUM 10 SLIDES
• 3)CASE STUDY PRESENTATION
• 4)Write a summary of 2 to 3 pages on Lean
practices followed at Iron Ore Mining in the
Pilbara region of Western Australia.
• 5)Group Discussion on 2 topics.
• Benchmark:
• A “benchmark” is a reference or
measurement standard used for
comparison.
• Dictionary defines a benchmark as a
standard or a point of reference
against which things may be
compared and by which something
can be measured and judged.
• Benchmarking:
• In simple words, benchmarking is an
approach of setting goals and measuring
productivity based on best industry
practices.
• “Benchmarking” is the continuous
activity of identifying, understanding and
adapting best practice and processes that
will lead to superior performance.
• It is a practice in which quality level is
used as a point of reference to evaluate
things by making a comparison.

• Benchmarking is defined “as the

continuous, systematic process of
measuring ones output and/or work
processes against the toughest
competitors or those recognized best in
the industry.”
• Benchmarking is an approach of
setting goals and measuring
productivity based on best industry
practices.
• Benchmarking helps in improving
performance by learning from best
practices and the processes by which
they are achieved.
• It involves regularly comparing different
aspects of performance with the best
practices, identifying gaps and finding out
novel methods to not only reduce the gaps
but to improve the situations so that the gaps
are positive for the organization.
• Benchmarking is periodical exercise for
continuous improvement within the
organization so that the organization does not
lag behind in the dynamic business
environment.
• The process helps in comparing and gauging
the processes, programs, strategies and
performance metrics with the standard
measurements or to other similar companies.
• It is concerned with the analysis of three
major dimensions:
• Quality
• Time
• Cost
• It is a useful technique for
enhancing the organisation’s
performance by identifying and
implementing the finest process
and practices, for achieving them.
• The process involves repeatedly evaluating the
aspects of performance with the similar
measurements of its peers, identifying the
gaps, discovering new methods for filling gaps
and also for excelling the condition, so that
the gaps might prove positive for the
organisation.
• Types of Benchmarking
• There are two types of Benchmarking,
discussed as under:
• Internal Benchmarking: When
measurement and comparison of key
operations between teams, groups
and individuals are made within the
organization, the benchmarking is
said to be internal
• External Benchmarking: When
measurement and comparison of
key operations are made with the
competitors, then, it is called as
external benchmarking
• Process of Benchmarking
• Identifying the need for Benchmarking
• Understanding the existing process and practices
• Obtaining support and approval from the top
management.
• Identifying best practices.
• Making a comparison between the firm’s processes
and performance with those of rivals.
• Preparation of report, regarding the differences in
standard and actual results.
• Implementing steps necessary for filling gaps in
performance.
• Evaluation and review
• Benchmarking does not provide a solution to all
the problems rather it analyses the situations and
processes and helps in improving the
performance.
• It is a continuous improvement process. Hence,
the benchmarking exercises are applied
appropriately and performed regularly, so as to
gain competitive advantage and also refining
performance in the major areas of business.
• In this process, a firm’s major operations are
measured and compared with the rivals and
acknowledged leaders of the industry.
• Benchmarking should not be treated
as just comparison. It is necessary to
have a point of reference to know
how well one is doing.
• In a business environment with cut-
throat competition it is necessary to
gain edge over their competitors.
• Benchmarking helps organization to
get ahead of competition.
• Comparing the results with a competitor
helps the management to get a goal that
is both desirable and achievable but
provides no clue on how the goals are to
be achieved.
• It is a comparison of work progress that
tells us how the competitor follows a
process which produce outstanding
results and this is the essence of
benchmarking.
• In cut-throat competition it is
important for organizations to gain
an edge over their competitors.
• Benchmarking helps organization to
get ahead of competition.
• The data and information collected
and analyzed as part of a self-
assessment can be used in a
benchmarking exercise.
• Example – A customer support
engineer of LG (a television
manufacturing company) attends a
call within forty-eight hours.
• If the industry norm is that all calls
are attended within twenty-four
hours, then the twenty-four hours
can be a benchmark.
• Benchmarking is the process of identifying “best
practice” in relation to both products (including)
and the processes by which those products are
created and delivered.
• The search for “best practice” can take place both
inside a particular industry, and also in other
industries.
• It studies the circumstances and processes that
help in superior performance.
• Benchmarking is a process of continuous
improvement in search for competitive advantage.
• It measures a company’s products, services and
practices against those of its competitors or other
acknowledged leaders in their fields.
• Benchmarking – Concept
• Benchmarking is a systematic and continuous
measurement process.
• It is a process of measuring and comparing an
organization’s business processes against
business process leaders anywhere in the
world, to gain information which will help the
organization to improve its performance.
• It is basically a quality practice.
• Companies choose to benchmark excellent
companies whose business processes are
analogous to their own.
• Benchmarking identifies whose practices that
have enabled the successful company’s
superior performance and that can be
adopted to the benchmarking company’s
business.
• This process results in two types of outputs;
benchmarks or measures of comparative
performance, and enables or practices that
lead to exceptional performance.
• Often, benchmarking has been equated
to copying or imitating and it is said that
benchmarking is ‘stealing shamelessly.
• Benchmarking was originated in Japan
during the early 1960s due to the
Japanese curiosity and fondness for
imitation.
• Benchmarking has evolved through a process
which has resembled the classic ‘art-
transitioning-to-science’ model for the
emergence of new management discipline.

• The benchmarking practice has started with

product- oriented reverse engineering or
competitive product analysis.
• The former involved a tear-down and
evaluation of technical product characteristics.
• While the later was market-oriented and
evaluate the relative capabilities of the
competitive product offerings.
• Strategic benchmarking is similar to process
benchmarking in nature but differs in scope
and depth.
• It involves a systematic process by which a
company identifies and evaluates alternatives,
implements strategies and improves overall
performance levels by incorporating
successful strategies from companies engaged
with it in a strategic alliance.
• The issues addressed in this process
include building core competence to
sustain competitive advantage, targeting
specific shifts in strategy such as entering
a new market or developing a new
product, making acquisition and creating
a learning and adaptive organization.
• The future generation will be in global
benchmarking through which distinctions
in international culture, business
processes and trade practices across
companies are bridged and their
ramifications for business process
improvements are understood and
utilized.
• Benchmarking – Need
• The essence of benchmarking is the
continuous process of comparing a company’s
strategy, products and processes with those of
world leaders and best in class organizations in
order to learn how they achieved excellence
and then setting out to match and even
surpass it.
• For many companies, benchmarking has
become a key component of their TQM
programs.
• It is a method of identifying new ideas
and new ways of improving processes
and hence meeting customer
expectations.
• A properly designed and implemented
benchmarking program will take a total
system approach by examining the
company’s role in the supply chain
(looking upstream at the suppliers) and
downstream at distribution channels.
• Need of Benchmarking:
• 1. Benchmarking helps organizations
focus on the external environment and
improve process efficiency.
• 2. Benchmarking promotes a climate for
change by allowing employees to gain an
understanding of their performance
what they are achieving now and how
they compare to others in order that
they become aware of what they could
achieve.
• Benchmarking – 5 Key Reasons
• Key reasons for benchmarking are as follows:
• 1. Defining Customer Requirements:
• It is not based on history or gut
feeling, perception and low fit but on
the basis of market reality, objective
evaluation and high conformance.
• 2. Establishing Effective Goals and
Objectives:
• It is not on the basis of lacking external
focus, reactive response, and lagging
industry but on the basis of credibility,
inarguable, proactive and leading
industry goals and objectives.
• 3. Developing True Measures of
Productivity:
• Without benchmarking this may be done
by pursuing pet projects, strengths and
weaknesses not understood on-route of
least resistance.
• But with benchmarking this is carried out
by solving real problems and
understanding outputs of each decision
based on the best industry practices.
• 4. Becoming Competitive:
• This is not carried out on internally
focused, evolutionary change, and
low commitment.
• But it is done on the basis of
concrete understanding of
competition, new ideas of proven
practices, technology and high
commitment.
• 5. Industry Best Practices to be
Achieved:
• This is also not done on methods not
invented here, few solutions, average
of industry progress and frantic catch
up activity.
• But it is done on the basis of proactive
search for change, many options,
business practice breakthrough and
superior performance.
• Benchmarking – Top 8 Types:
1. Internal,
2. External,
3. Generic,
4. Functional,
5. Competitive,
6. Compatible Industry,
7. Strategic and
8. Global Benchmarking
• 1. Internal Benchmarking:
• It involves looking within the
organization to determine other
departments, locations and projects
which have similar activities and then
defining the best practices amongst
them.
• It involves seeking partners from within
the same organization.
• For example- from business units
located in different areas.
• The main advantages of internal
benchmarking are that access to sensitive data
and information are easier;
• standardized data is often readily available;
and usually less time and resources are
needed.
• There may be fewer barriers to
implementation as practices may be relatively
easy to transfer across the same organization.
• However real innovation may be lacking and
best in class performance is more likely to be
found through external benchmarking.
• 2. External Benchmarking:
• External benchmarking involves seeking help of
outside organizations that are known to be best in
class.
• External benchmarking provides opportunities of
learning from those who are at the leading edge,
although it must be remembered that not every
best practice solution can be transferred to others.
• In addition, this type of benchmarking may take
up more time and resource to ensure the
comparability of data and information, the
credibility of the findings and the development of
sound recommendations.
• 3. Generic Benchmarking:
• Generic benchmarking involves comparing with
organizations that have similar processes.
• It involves the comparison of an organization’s
critical business processes and operations against
best practice organization that performs similar
work or deliver similar services.
• For example- how do best practice organization
process customer’s orders?
• It extends the benchmarking process outside the
organization and its industry to get inspiration
from organizations in dissimilar industry.
• 4. Functional Benchmarking:
• This type of benchmarking is used
when organizations look to
benchmark with partners drawn from
different business sectors or areas of
activity to find ways of improving
similar functions or work processes.
• This sort of benchmarking can lead to
innovation and dramatic
improvements.
• 5. Competitive Benchmarking:
• It involves examining the products, services and
processes of competitors and then comparing them
with their own.
• It involves the comparison of competitors’ products,
process and business results with own.
• It requires that the company perform a detailed
analysis of its competitors’ products, services, and
processes.
• Benchmarking partners are drawn from the same
sector.
• However to protect confidentiality it is common for
the companies to undertake this type of benchmarking
through trade associations or third parties.
• 6. Compatible Industry Benchmarking:
• Compatible industry will include those
companies that are not directly
competing for the same customer.
• It make comparisons within a general
industry category.
• For example- a company, which is
manufacturing automobile spare parts,
compares itself with another company
which is manufacturing automobile
accessories.
• 7. Strategic Benchmarking:
• It is similar to the process benchmarking
in nature but differed in its scope and
depth.
• It involves a systematic process by
which a company seeks to improve their
overall performance by examining the
long-term strategies.
• It involves comparing high-level aspects
such as developing new products and
services, core competencies etc.
• 8. Global Benchmarking:
• It is a benchmarking through which
distinction in international culture,
business processes and trade practices
across companies are bridged and their
ramification for business process
improvement are understood and
utilized.
• Globalization and advances in
information technology leads to use this
type of benchmarking
• Benchmarking – Five Generations
• Benchmarking is an evolutionary process and resembles
the “classic art transitioning to science model” for
development of new management disciplines.
• This transition occurring through four generations of
development from the time of Taiichi Ohno’s
Supermarket Study Application and is interpreted in the
light of that publication.
• Xerox Corporation practised the benchmarking in the
late 1980s’. In response to this, Xerox became the winner
of the 1989 Malcolm Baldrige National Quality Award.
• The first generation may be construed as product
oriented reverse engineering or competitive product
analysis.
• The second generation competitive benchmarking
was defined into a science of Xerox during the
1976-1986 decade.
• Competitive benchmarking moved beyond the
product-oriented approach to include
comparisons of processes with those of
competitors.
• The third generation is called process
benchmarking and developed during 1982-1983,
as more quality leaders recognised that they
could learn more easily from companies just
outside their industry than from competitive
studies without boundaries and restrictions.
• The fourth generation is referred to as strategic
benchmarking which differs from process benchmarking
in terms of the scope and depth of commitment among
the sharing companies.
• The fifth generation of benchmarking is referred to as
global benchmarking, lies in global application where
international trade, cultural and business process
distinctions among companies are bridged and their
implications for business process improvement are
understood.
• Today, only a few companies are systematically working
on these issues as part of their strategic planning process.
• Thus, a fundamental shift is taking place among
companies through these five generations of
benchmarking.
• Benchmarking – 4 Phases: Planning, Analysis,
Integration and Action
• The process of benchmarking involves the following
four phases:
• 1. Planning:
• (a) Identification of the factor to be benchmarked
• (b) Identification of the critical performance indicators
• (c) Identification of the entity that is the standard for
benchmarking
• (d) Identification of the modalities for collection of data.
• 2. Analysis:
• (a) Collection and collation of data to detect
gaps
• (b) Measurement of gaps in performance and
practices
• (c) Setting up of metric targets.
• 3. Integration:
• (a) Collaboration of the modalities of analysis
and targets set among peers
• (b) Development of implementation
programs.
• 4. Action:
• (a) Preparation and ‘sensitization’ of target
audience for implementation
• (b) Deployment of monitoring and measuring
mechanism for deviations
• (c) Final assessment of success of
benchmarking both quantitatively and
qualitatively.
 Benchmarking – 6 Stages involved in the Benchmarking Process

• A systematic approach of the benchmarking

process involves six stages:
• 1. Identify and understand your processes.
• 2. Agree what and who to benchmark.
• 3. Collect data.
• 4. Analyse data and identify gaps.
• 5. Plan and action improvements.
• 6. Review
 Stage 1 – Identify and Understand Processes:

• It is helpful to begin a benchmarking

programme on a small scale so that the
organisation can gain lessons from the
systematic approach that is adopted.
• The lessons can then be applied to other parts
of the business.
• In this way the cost of benchmarking can be
kept to a minimum as benchmarking can take
place on a process by process basis.
• 1. Understand Processes:
• The preparation stage of benchmarking is the
most critical. Until an organisation
understands its business processes it is
difficult to compare them with other parts of
the organisation or with external sources
• i) Identifying Process:
• Everything which happens in a company is part of a
process. All processes should lead to achievement
of an organisation’s aims. The first question,
therefore, to ask is- ‘what is the organisation in
business for?’ A process is a series of steps or
sequence of activities, the end result of which is to
achieve client satisfaction, i.e., providing what the
customer needs, when they need it and as they
expect it.
• ii) Process should be Customer Driven:
• The result of all processes should be to satisfy
a customer requirement. A customer may be
internal or external. The customer is the
person who receives the output or benefits
from the process.
• iii) Identify Added Value Processes:
• The concept of a value chain can help organisations identify the
various processes within an organisation which offer value to both
the internal or external customer. It is useful to map out an
organisation’s process to identify critical success factors.
• Benchmarking studies make a measurable impact on the bottom
line when they bring about improvements to core processes.
Processes can be divided into those which are primary processes.
Primary processes are directly concerned with delivering a
product or service to the external customer. Secondary processes
support the primary processes within an organisation and are
often concerned with providing a service to the internal customer.
• iv) Ask Your Customers:
• Organisations need to identify which of their
primary processes or core activities are critical
for the company to remain in business and to
be successful. Customers will have a clear idea
of what is important to them.
• 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.
• Short-term bottlenecks are temporary and are
not normally a significant problem.
• An example of a short-term bottleneck would be
a skilled employee taking a few days off.
• Long-term bottlenecks occur all the time and can
cumulatively significantly slow down production.

• An example of a long-term bottleneck is when a

machine is not efficient enough and as a result
has a long queue.
• Another example is in a
surface-mount technology board assembly
line with several pieces of equipment aligned.
• Usually the common sense strategy is to set
up and shift the bottleneck element towards
the end of the process, inducing the better
and faster machines to always keep the
printed circuit board (PCB) supply flowing up,
never allowing the slower ones to fully stop; a
strategy that could result in a deleterious (or
damaging) and significant, overall drawback in
the process
 Identifying bottlenecks

• Almost every system has a bottleneck, even if

it is a minor one.
• If every system was running at full capacity, at
least one machine would be accumulating
processes.
• Identifying bottlenecks is critical for improving
efficiency in the production line because it
allows you to determine the area where
accumulation occurs.
• The machine or process that accumulates the
longest queue is usually a bottleneck, however
this isn't always the case.
• Bottlenecks can be found through:
• identifying the areas where accumulation
occurs, evaluating the throughput,
• assessing whether each machine is being
used at full capacity,
• and finding the machine with the high wait
time
• Accumulation
• When input comes in faster than the speed of
the process, accumulation starts to occur.
• This means that the machine either does not
have enough capacity, is not being fully
utilized or has an under-qualified operator.
• This method is not effective at identifying
bottlenecks where the queues are at several
process steps, as there are multiple processes
with accumulation.
• Throughput
• Since the production line is directly linked to
the output of the machines,
• it allows for the identifying of the main
bottleneck in the manufacturing process.
• In changing each machines throughput, it will
be possible to assess which machine affects
the overall output the most, and hence
determine the bottleneck in the chain of
processes
• Full capacity
• By using the utilization percentage of each
production unit, it is possible to determine the
machine which uses the highest percentage of its
capacity.
• This machine is bottlenecking the other machines
by 'forcing' them to operate at a lower capacity.

• However, if all machines in the chain of processes

are running at a similar capacity level, increasing
the capacity of the lowest machine will not create
a significant improvement to the total output.
• Wait times
• In the case where several production units are
already running at full capacity, tracking the
down time of machines will allow you to identify
which machine is being bottlenecked.

• Usually the machine prior the machine with the

highest wait or down time in the chain of
processes is a bottleneck.

• The result of this is a machine being under

utilized.
• Fishbone diagram (Cause and Effect Diagram)
• A fishbone diagram is a graphical means for
finding possible problems in a chain of processes.
• By collecting the different data related to the
problem, and inputting them into the diagram, it
becomes easier to analyze the data in the order it
is used, and hence determine the root of the
problem.
• This is commonly used to find the bottleneck in a
chain of processes due to being able to pinpoint
the machine precisely responsible for the delay in
production.
 Consequences of bottlenecks in production

• The consequences of having bottlenecks in production

are possible
• stalls in production,
• supply overstock,
• fall in employee morale,
• and loss of customers.

• Bottlenecks can result in the overloading of a machine.

• Overloading a machine can lead to the machinery
getting damaged or worn out, and the result of this
would be potential stretches of downtime in the long
term
• Stall in production
• A stall in production would be the result of
one machine slowing down the entire chain of
processes and consistently leaving the other
machines unable to continue while it
accumulates a large queue.
• This inefficiency significantly slows down
production as many resources such as time,
people, and machines are being paid to wait.
• Supply overstock
• In the event of accumulation in the long-term,
the capacity at which the bottlenecked
machine is running could be so slow that the
accumulated resources that are in the queue
need to be stored.
• The cost of storing resources is significant as it
takes resources to transport the materials
back and forth as well as requiring space,
another potential cost.
• Fall in employee morale
• The result of bottlenecks could require more
work from employees as well as longer hours.
• In addition, there's the factor of stress and
frustration with the bottlenecked machine and
its operator.
• This could result in loss of efficiency as
employees may not be very motivated to
work.
 Managing bottlenecks.

• Once the bottleneck has been identified,

assessing the degree of the bottleneck is
crucial for determining how to manage
the bottleneck.
• The bottleneck could be either minor or
severe.
• Minor bottlenecks may not need to be
immediately addressed, whereas severe
bottlenecks should be dealt with
immediately.
• There are several ways to eliminate bottlenecks.
• Some means of doing so are:
• Adding resources to the bottleneck operation
(more people)
• minimising downtime,eliminating non-value
activities,
• investing in more machinery which completes
the same action, and optimising the bottlenecks
operation.
• Other sources similarly suggest that once the
bottleneck has been identified it is best
• To ensure it is well maintained, to provide a
constant buffer stock upstream of the
bottleneck, to reduce time wasted in set ups
and changeovers, and to train more operators
for the bottlenecked machines.
• Increasing number of operators or employees
• Increasing the number of operators or
increasing the number of staff can be
beneficial for multiple reasons.
• Increasing the number of operators can
increase efficiency, as they can all work
different timed shifts and hence the
bottlenecked machine can run for longer
hours.
• In addition, if one worker is sick, unable to
work, or quits, there will always be someone
available to replace him.
• Increasing the number of employees can be
beneficial to increasing efficiency.
• This is because they can be reassigned to work
on parts of the bottlenecked machines
operations which can be broken down in to
smaller activities and reassigned to reduce the
work load of the machine, hence reducing the
accumulation.
• Reassigning other work to different machines,
allows less accumulation or delay for the
bottlenecked machine.
• This significantly speeds up production, as it
reduces the wait time of the machines farther
along the chain of processes, increasing
productivity.
• Minimizing downtime, setup and changeover time
• To compensate for being the weakest link in the
chain of processes, the bottleneck machine will have
to run for longer periods of time.
• Changeover and setup time should be minimised to
allow the machines to run for slightly longer,
reducing the impact of the bottleneck.
• Minimizing downtime by having the bottlenecked
machines run from earlier until later is a common
strategy for working around the problem, however
this does increase the likelihood for the machine to
be overloaded and need regular maintenance.
• Eliminating non-value activities
• In removing all non-value activities, you
reduce the amount of redundant tasks
performed by the bottlenecked machine and
hence maximize efficiency.
• Removing the waste operations results in a
shorter cycle time hence allowing the machine
to complete each process in less time
• Provide a constant buffer stock upstream
• In order to optimise the usage of the machine, the
machine should be kept running for as long as
possible and hence should never have to wait for
materials or stock, to increase productivity.
• This can be achieved by putting a buffer stock in
place, so that the machine always has some task it
can be doing.
• The down side to this strategy is that inventory
space will be needed to store the buffer stock, for
when the machine before it in the chain of
processes, is working
• Preventing bottlenecks
• Preventing bottlenecks would be ideal to avoid
having to manage and resolve them in the future.
• There are ways to work around them when
planning the production environment.
• Giving employees free rein over minor decision
making, will allow them to make the decision
they feel is most efficient, and being operators of
the machine, their experience will allow them to
become specialised in the use of the machine
over time.
• Cross-training employees will increase
adaptability in the production line and therefore
reduce potential downtime in the future.
• Hiring high performance employees will reduce
the possibility for bottlenecks to be formed by
underperforming employees who are inefficient
at using their assigned machinery.
• Planning for a higher potential output when
designing the production environment is crucial
in the long run, for occurrences of larger orders
when there is need to run all the machinery.
• Having all the machinery running at full capacity is
not always ideal, due to situations where
malfunctions occur and production is halted.
• Having inspiring leaders who have a strong
understanding of how to keep production running
smoothly, will allow greater control of all the
different processes in the chain of production.
• Taking into account the layout of the different
processes, can also increase efficiency as it
minimises delay caused in the transportation stage.
• The use of a proper layout can reduce the overhead
of machines and can reduce material handling time.
[20]
• Establishment of standardized exchanged
protocols, can minimise the potential for
future bottlenecks to occur through
minimising down time.
• This increases efficiency by reducing any
potential confusion between different sectors
and hence reduces the possibility for delays of
the arrival of raw materials
• Static and dynamic systems and shifting
bottlenecks
• A static bottleneck is where no random or
unexpected fluctuations (such as those that
would happen during either a changeover or
a breakdown of the system) occur.
• A static system does not change in behavior
and hence the system stays constant.
• Finding a bottleneck in a static system is very
simple, it is simply the machine or process
with the longest constant cycle time.
• Static systems do not exist in reality as no
matter what, there will always be a slight
fluctuation in cycle time.
• This is because there is no way to prevent all
fluctuations from occurring to slow the system
down. An example of this could be a power
shortage or a natural disaster.[22]
• The behavior of any system is vulnerable to
any random event and hence all systems are
dynamic.
• Dynamic systems can be divided into two main
groups:
• Stable and unstable. The significant difference
in the context of dynamic systems, is that the
bottlenecks can shift. The speed of which a
bottleneck shifts depending on the buffer
between the processes.[22]
• Bottlenecks shift when the location of the
work center in the production area changes,
and this leads to control problems due to the
significant delay in output.
• Shifting bottlenecks are a result of inevitable,
unexpected events, for which no planning is
possible.[23]
• The steps suggested to avoid or prevent shifting
bottlenecks are:
• Step 1) Re-evaluate the maximum load of every
machine, process or work center when accepting a
new order.
• Step 2) Find the bottleneck in the system and identify
its surplus capacity.
• Step 3) Fill the bottlenecks surplus capacity.
• Step 4) Find out the release time of the material as a
result of the new bottlenecks scheduling.
• Through following these steps, the order production
will be completed in the shortest possible time frame.