operation management

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Qnivq12

Business Finance

Description

Describe how the concept of bottlenecks would apply to services as well as products. Give some examples from your experience.

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The solution to your question is as such:

A bottleneck in a process occurs when input comes in faster than the next step can use it to create output. The term compares assets (information, materials, products, man-hours) with water. When water is poured out of a bottle, it has to pass through the bottle's neck, or opening. The wider the bottle's neck, the more water (input/assets) you can pour out. The smaller, or narrower, the bottle's neck, the less you can pour out - and you end up with a back-up, or "bottleneck."

One example would be a company's month-end reporting process. It is delayed every month because one person has to finish a sequence of time-consuming responsibilities - and that person can't even begin until he has the final month-end information.

Bottlenecks can bring about major problems for any company, and detecting their root causes is crucial. Look for the usual signs of bottlenecks - such as backlogged work, waiting (either by people, materials, or paperwork) and high stress concerning to a task or process. A Flow Chart or the Five Whys technique can be used to find out not just one of the effects but the root cause.

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