These five steps are:
- Identify the constraint (bottleneck)
- Exploit the constraint; improve capacity utilization
- Subordinate all non-constraint resources to the constraint
- Increase the capacity of constraint if relevant
- Repeat step 1 if the constraint has changed
The final step is an invitation to continuous improvement, but also a warning: do not let inertia, passivity and acceptance of the status quo become the constraint.
Yet one other aspect of this warning remains mostly unknown.
While teams work hard to exploit the bottleneck resource and recover some wasted capacity, they do not anticipate that the next bottleneck is located elsewhere in the future.
Most teams working to elevate a capacity constraint do not imagine that the additional capacity that will be recovered requires immediate anticipated loading.
Indeed, most of the time, once the goal is reached and the bottleneck is no longer the constraint, they “expect” to see another bottleneck emerge in their area, as if they were playing whack-a-mole; hit one, wait for the next to pop-up.
Chance are that the next bottleneck will probably not be found within their perimeter. The next bottleneck can be upstreams, in another department or with some supplier.
The next bottleneck will instead most likely be found either in development, engineering, marketing or sales. And it will come as a surprise due to lack of anticipation.
The next bottleneck may be the order book, as sales nor marketing did not anticipate the loading of the recovered capacity. It may be development, unable to bring forward the launch of the next product.
It lies in the future is a warning about the necessity to anticipate it and the probable time lag before the anticipated efforts pay off.