What Are Two Ways a Process Manager Can Identify a Bottleneck

question 119

Essay

What are two ways a process manager can identify a bottleneck in a service or manufacturing process? If you were in a manufacturing firm, what physical cues would signal a bottleneck?

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Definitions:

Extraction Cost

The cost associated with the removal of resources or raw materials from the earth.

User Cost

The expense of utilizing a product or service, taking into account both the opportunity cost of choosing one alternative over others and the depreciation in value of the good as it is used.

Extraction Cost Curve

A graphical representation showing the cost of extracting resources at various production rates, typically illustrating increased costs as resources become scarcer.

Marginal Extraction Costs

The additional costs incurred in extracting one more unit of a resource, which can increase as the resource becomes more scarce.