An operations improvement book for laymen.
Insights included:
1. Every sequence of tasks forms a process which can be improved.
2. The bottleneck is the resource that can’t keep up with the demand, so a queue (build up) forms in front of it.
3. The system throughput is limited by the bottleneck throughput. Thus, to improve a system you must act on the bottleneck.
4. Use the FOCCCUS framework to do that. Essentially, work both directly on the bottleneck (Find, Optimise and Upgrade), and on how non-bottlenecks can help the bottleneck (CCC)
1. Find. You can spot the bottleneck by the pile of things piling up right before it (the ‘waiting room’). The step which waiting room has the most items waiting to be processed, that’s where the bottleneck is.
2. Optimise. “Squeeze more work out of it” Analyse the bottleneck in isolation. Ask what is the ‘bottleneck inside the bottleneck’? Can you make anything different to save time?
3. Coordinate. How can the non-bottlenecks help the bottleneck? You may want to introduce some rules, or adjust non-bottlenecks so that a queue (build up) doesn’t form on the bottleneck.
4. Collaborate. Reallocate work. It works better with people. How can non-bottleneck people do some of the work of the bottleneck people?
5. Curate. “Prioritise work that is relevant”. Reduce demand on the bottleneck by filtering out less important stuff to work on. Only work on stuff that are relatively more important.
6. Upgrade. Once you reduced the impact of the bottleneck by re-thinking your system around it, consider upgrading the bottleneck resource. A new machine, perhaps? If you did all the above, you collected improvements. The steps above “cleared the way” for you to extract the most benefit from upgrading.
7. Start again (strategically). Repeat the process. Improvement is continuous. This is management!
5. Your most valuable resource in the system should be the bottleneck. You want a hotel’s bottleneck to be guest rooms, not toasters; a surgeon’s bottleneck to be her own availability, not room for prep.