Bottleneck resource
A bottleneck resource limits the flow of output through a system because its capacity is scarce relative to demand or the capacities of other stages. Improving non-bottleneck speed may only create extra queues or inventory. Identify the current bottleneck, exploit and coordinate its use, then assess improvements and recheck where the constraint moves. The appropriate decision measure depends on whether the model uses contribution, throughput or another relevant objective.
Worked example
Cutting can process 100 units per hour but finishing only 60. Increasing cutting to 120 does not increase completed output if finishing remains the bottleneck.
Common mistake
The slowest machine in isolation is not necessarily the economic constraint if demand, material or another resource limits the whole system.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | PM | Direct | September 2026–June 2027 |
