What is a bottleneck in the context of throughput?

In the context of throughput, a bottleneck refers to any factor that limits or constrains the overall production capacity of a system, thereby preventing it from achieving a higher level of throughput. The bottleneck is essentially identified by assessing which resources or processes are creating obstacles that hinder the flow of production or services.

When considering what limits throughput, it becomes clear that the correct identification of these constraints allows organizations to make the necessary adjustments and improvements. By focusing on the factors preventing throughput from increasing, businesses can streamline operations, reduce waste, and maximize efficiency.

This understanding is critical in performance management as it enables organizations to optimize their processes and resources. By alleviating bottlenecks, companies can significantly enhance their overall productivity and effectiveness, leading to improved operational performance and profitability. In contrast, understanding total output, efficiency measures, and resource overutilization are relevant, but they do not directly address the specific constraints that prevent higher throughput.