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Bottleneck and Theory of Constraints

Enter each step’s effective capacity, demand and throughput per unit to find the bottleneck, the value of each hour there and what raising its capacity returns.

Pre-sizing and estimating tool: results do not replace design, calculations or reports signed by a licensed professional, nor verification against the applicable codes and standards.

Preliminary estimate
Effective capacity of each step (0 = no step)
More than 6 steps? Paste the list from Excel

One row per step: name (optional) and capacity in units per hour.

See what was read

Use actual capacity, already net of availability, performance and quality losses (nameplate capacity × OEE).

Market and throughput
Economic analysis
—Value of 1 hour at the bottleneck
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Capacity of each step and demand

The shortest bar limits system output; the dashed line is market demand.

Tap the chart to see the values.

Annual gain versus bottleneck increase

The gain grows until the next constraint (another step or the market) and then stops.

Tap the chart to see the values.

Project payback

Cash flow of the improvement: investment in year 0 and annual savings escalated at the rate entered, discounted at the MARR.

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The report gathers this page's inputs, results, equations, assumptions and references, with fields for project, engineer and revision. In the print dialog, choose Save as PDF.

Method, assumptions and references

Equations used

System output = min(step capacities, demand)
Value of 1 h at the bottleneck = bottleneck capacity × throughput per unit (zero if the constraint is the market)
After elevating: output = min(capacity × (1 + increase), next step, demand); annual gain = Δoutput × throughput × hours

Assumptions and limits

  • Serial line where every unit passes every step; capacities already net of losses.
  • Throughput per unit per throughput accounting (price minus truly variable costs).
  • Additional operating expenses to elevate the bottleneck (extra shift, outsourcing) must be deducted from the gain or included in the investment.

Standards and technical documents

  • Goldratt, E. M.; Cox, J. The Goal, 4th ed. North River Press, 2014
  • Corbett, T. Throughput Accounting. North River Press, 1998
  • Hopp, W. J.; Spearman, M. L. Factory Physics, 3rd ed. Waveland, 2011
  • ASCM (APICS) Dictionary, 17th ed.: constraint, drum-buffer-rope

U.S. regulations

  • Fair Labor Standards Act: overtime premium when the bottleneck is elevated with extra hours
  • OSHA 29 CFR 1910.212: machine guarding when speeds or fixtures are changed

Frequently asked questions

How do you find the bottleneck of a line?

It is the step with the lowest effective capacity relative to demand. Practical signs: a queue of material before it, downstream steps waiting and the step running all the time.

What is an hour of downtime at the bottleneck worth?

The output the bottleneck would make in that hour times throughput per unit. At 118 units/h and $16 throughput, a lost hour costs the whole plant about $1,900.

Why does improving off the bottleneck not raise output?

Because total output stays limited by the slowest step. Gains elsewhere only build work-in-process, unless they cut real costs.