IMPROVING BUSINESS PROCESS

Unblocking Bottlenecks

Fixing unbalanced processes

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Where's the bottleneck in your area?

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Consider this scenario: You own a trucking company, and you've recently had problems in the delivery process for one of your clients. The loading at their factory goes smoothly, but once your trucks arrive at the client's warehouse, efficiency seems to fall apart. The trucks typically wait six to eight hours before workers unload the cargo. Every minute that your trucks are parked and waiting costs your company revenue.
You investigate to find out why the trucks are forced to wait, and you discover something surprising: The reason they wait is because no one notifies the warehouse in advance of their arrival. As a result, when a truck arrives, the forklift that's needed for unloading is often being used for another task. So your truck has to wait until the forklift is free.
Now you begin to wonder why the warehouse isn't notified, as it should be, that trucks are on their way. You investigate more and learn that the person who used to call the warehouse left the company a few months ago, and the task wasn't reassigned. So you delegate the phone call to another team member, and you persuade the warehouse to purchase a second forklift – and your problem is solved.
This bottleneck was pretty easy to fix. But have you ever discovered a bottleneck in your business processes? These can be harder to resolve, mostly because they're harder to identify.

What is a Bottleneck?

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."
There are two main types of bottlenecks:

1. Short-term bottlenecks – These are caused by temporary problems. A good example is when key team members become ill or go on vacation. No one else is qualified to take over their projects, which causes a backlog in their work until they return.
2. Long-term bottlenecks – These occur all the time. An example would be when a company's month-end reporting process is delayed every month, because one person has to complete a series of time-consuming tasks – and he can't even start until he has the final month-end figures.

Identifying and fixing bottlenecks is highly important. They can cause a lot of problems in terms of lost revenue, dissatisfied customers, wasted time, poor-quality products or services, and high stress in team members.

How to Identify Bottlenecks

Identifying bottlenecks in manufacturing is usually pretty easy. On an assembly line, you see when products pile up at a certain point. In business processes, however, they can be harder to find.
Start with yourself. Is there a routine or situation that regularly causes stress in your day? These frustrations can actually be a significant indicator that a bottleneck exists somewhere.
For example, imagine that you're responsible for reviewing a report that another team member creates each week. Once you're done, you give it to another team member, who has to post the report on your company's intranet. Due to your workload, however, the report often sits on your desk for hours – so the next person down the line sometimes has to stay later at the end of the day to post it on time. This causes a lot of stress for you as well as your colleague. In this scenario, you're the bottleneck.
Here are some other signs of bottlenecks:

• Long wait times – For example, your work is delayed because you're waiting for a product, a report, or more information. Or materials spend time waiting between steps of a business or manufacturing process.
• Backlogged work – There's too much work piled up at one end, and not enough at the other end.
• High stress levels.

Two tools are useful in helping you identify bottlenecks:

1. Flow Charts:

Use a flow chart to help you identify where bottlenecks are occurring. Flow charts break down a system by detailing every step in the process in an easy-to-follow diagrammatic flow. Once you map out a process, it's much easier to see where there might be a problem. Sit down and identify each step that your process needs to function well.
For example, in the trucking scenario we mentioned earlier, a flow chart might look like this:

• Step 1 – Goods are manufactured at the factory.
• Step 2 – Goods are loaded onto the truck.
• Step 3 – The warehouse is notified about the truck's arrival time.
• Step 4 – The warehouse schedules a forklift for the expected arrival time.
• Step 5 – The truck arrives at the warehouse, and unloading starts.

In this case, the delay occurred because Steps 3 and 4 were missing, and this led to a long wait between Steps 2 and 5. Creating the flow chart before investigating the problem would have helped you quickly see where your process broke down.

2. The Five Whys Technique:

The Five Whys technique can also help you identify how to unblock your bottleneck.
To start, identify the problem you want to address. Then, working backward, ask yourself why this problem is occurring. Keep asking yourself "Why?" at each step, until you reach the root cause.
Consider our trucking example again. Go back to the beginning, and imagine that you have no idea why the trucks are delayed.

Trucks are forced to wait for hours at the warehouse.

Why?
Because the forklift isn't ready to unload the trucks when they arrive.
Why isn't the forklift ready?
Because there's only one forklift, and it's used for other things. The warehouse doesn't know the trucks are arriving, so the forklift isn't scheduled to unload cargo.
Why doesn't the warehouse know the trucks are coming?
Because no one has called to tell them.
Why has no one called the warehouse?
Because the team member whose job was to call the warehouse left months ago, and no one else was assigned to make the calls.
And there's the solution. You've identified the root cause: a missing team member. The easy fix is to delegate the task to someone else.
By working backward and identifying the root cause, you can clearly see what you need to change to fix the problem.

How to Unblock Bottlenecks

You have two basic options for unblocking your bottleneck:

1. Increase the efficiency of the bottleneck step.
2. Decrease input to the bottleneck step.

In our trucking example, the clear solution was to increase efficiency by notifying the warehouse. How you might increase efficiency in other situations will depend greatly on the nature of the process concerned, but here are some general ideas:

• Ensure that whatever is being fed into the bottleneck is free of defects. By doing this, you ensure that you're not wasting the valuable bottleneck resource by using it to process material that will later be discarded.
• Remove activities from the bottleneck process that could be done by other people or machinery.
• Assign the most productive team members and technology to the bottleneck process.
• Add capacity in the bottleneck process.