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Hi John,
I watch your lectures along with notes provided. So far everything is clear to me.
My only question is regarding Bottleneck Process. Could you please explain to me what
is Bottleneck process.Thanks.
If a product has to pass through several processes before it is finished, then the speed at which the finished goods are produced is determined by whichever is the slowest process. This is the bottleneck process.
For example, suppose a product is made by one machine and then goes to a second machine to be painted and is then finished.
If the machine making the product can only make 10 units per hour, then only 10 units per hour can go for painting. So even if the painting machine could paint 20 units per hour, it is only getting 10 units per hour, so only 10 units per hour get painted and get finished.
So the process making the units (the slowest process) is the bottleneck that is determining how many units per hour get finished.
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