What Is Bottleneck Analysis? Tools for Identifying and Overcoming Bottlenecks

A manufacturing bottleneck is a work stage that cannot meet the production quota even at its maximum throughput capacity, thereby delaying or stopping the flow of operations.

This concept equally applies to management and logistics. Here, bottlenecks can restrict the flow of information, guidance, and work instructions.

A bottleneck in production works the same as a physical bottle. The narrow neck reduces the rate at which water flows out, and causes backup behind it.

In an operation, bottlenecks can cause major interruptions to work productivity, delaying the production process across the board, and failing to keep up with the rate of customer demand.

Download our Guide to Remote Deployments →

A bottleneck analysis is any combination of tools and processes used to identify where bottlenecks are occurring in a production environment, the impact they're having, and solutions for eliminating the bottleneck.

The goals of a bottleneck analysis can include:

• Identify the key bottlenecks in production and managerial processes
• Collect relevant quantitative data for bottleneck analysis
• Explore possible solutions to address the bottlenecks
• Minimize poor-quality products, increase worker efficiency, reduce downtime
• Increase the overall production capacity and shorten lead time

Most likely, the machine or the process that has the longest queue will be the bottleneck. To identify whether a target step is the root barrier to the overall workflow, you can look for these red flags in the production process to make an accurate assessment.

Throughput and throughput time

Increasing the throughput of each machine one at a time will reveal which has the greatest effect on the overall production output. Longer than average throughput time will also mean a possible delay in the process, inspection, and move time, as well as an increase in the wait time. This may require further investigation to identify which step of the throughput time is taking unnecessarily long.

Accumulation

Whenever the input is greater than what a machine can handle, an accumulation will occur following that step. Inventory and work hours can accumulate because the work order cannot be processed at the same rate as the other steps in the manufacturing process.

Full capacity

A unit or a machine that uses the highest percentage of its full capacity will likely be the bottleneck of the production process. This can be easily compared to the lower capacity utilization rate of the other units on the shop floor. If the input was to increase for the bottleneck unit, it will most likely cap out first.

Slow communication

Are there errors resulting from miscommunication or slow communication that may lead to slowdowns in the manufacturing process? Faulty communication at all operational levels can translate into low physical productivity.

Every production line has one step that moves slower than the rest. That step decides the pace for everything else. Until you deal with it, the rest of the process can only go as fast as the bottleneck allows.

The Theory of Constraints puts a name to this: system performance is limited by its slowest point. Speeding up non-critical steps won’t change the outcome if the constraint isn’t addressed.

The impact is wider than most people expect. A single bottleneck can:

• Cap how much finished product you can ship in a given period

• Push out lead times, making on-time delivery harder to hit

• Add cost by keeping operators waiting, building up WIP, and creating extra scrap

Fixing bottlenecks isn’t about chasing perfection. It’s about clearing the roadblocks that hold back the rest of the operation.

Common Signs of Bottlenecks

Not every slowdown is a bottleneck. But when you see these, it’s worth taking a closer look:

• Work piling up at one station. Queues that don’t clear usually mean capacity is off.

• Idle operators or machines. If people are waiting, the hold-up is usually upstream.

• Growing WIP. Too many half-finished parts almost always trace back to a constraint.

• Schedules slipping. Bottlenecks push delivery dates out.

• Cycle times jumping around. Inconsistent timing can hide moving bottlenecks.

• Lots of quick fixes. If teams are patching problems every day, the real issue hasn’t been addressed.

The 5 Whys

As part of Root Cause Analysis, the 5 Whys can identify contributing events that lead to bottlenecks in production. This method backtracks from the problem to its source by continuously asking ‘Why’ to its previous answer.

Fishbone Diagram (or Ishikawa)

The Fishbone Diagram is the visual method of root cause analysis. The problem is written on the fish’s head, with the causes of that problem listed under major causes that branch off into the shape of fishbones. Learn more about the diagram and how Tulip can help you standardize Fishbone Diagram methodologies throughout your factory!

Tools like 5 Whys and Fishbone are good for digging into causes, but they only take you so far. To see bottlenecks clearly, manufacturers are leaning on methods that crunch real data instead of just opinions on a whiteboard.

Process Mining
By pulling event logs from MES or ERP systems, process mining shows how work really moves through the plant. It makes slowdowns, rework loops, and hidden queues visible in a way you can’t get from a manual map.
Example: One packaging team found that nearly half their time was lost on label rework. Nobody saw it clearly until the data exposed it.

Discrete Event Simulation (DES)
DES builds a digital model of your line so you can test changes before trying them on the floor. It’s especially useful for “what happens if” questions like shifting crew sizes, adjusting layouts, or changing batch rules, without risking production.

Real-Time Monitoring
With MES dashboards and IoT sensors, you can watch cycle times, machine uptime, and throughput as they happen. That kind of visibility lets you catch small constraints before they snowball into a late shipment.

AI-Based Predictive Models
Looking at both historical and live data, predictive tools can flag where bottlenecks are likely to form. That gives you a chance to shift schedules, balance staffing, or slot in maintenance before the line bogs down.

No single method gives you the full picture. Used together, they let you see the system from multiple angles and tackle constraints before they harden into chronic problems.

Static vs. Dynamic Bottlenecks

Some bottlenecks never move. They’re tied to hard limits—like a slow inspection step or a machine that simply can’t match the rest of the line. Others are more slippery. A bottleneck might show up in assembly one day, then jump to packaging the next, depending on product mix or staffing.

That’s why one-time analysis isn’t enough. A line can look balanced on Tuesday and be out of sync by Friday. Teams that track continuously are better at spotting those shifts and adjusting before the whole schedule is thrown off.

Spotting a bottleneck is only the start. Fixing it—and keeping the fix in place, takes a methodical approach.

DMAIC Applied to Bottlenecks

• Define – Look closely at where flow breaks down. Long queues and idle workers are usually the giveaway.
  

• Measure – Track cycle times, utilization, and throughput step by step. Real-time data beats static reports that hide spikes.

• Analyze – Use tools like 5 Whys, Fishbone, or process mining to get to the actual cause, not just the symptom.

• Improve – Act on what you find. That could mean shifting work, adding capacity, or redesigning steps. Keep changes specific.

• Control – Keep monitoring. Today’s fix won’t hold forever, bottlenecks move.

Where Teams Go Wrong

• Relying on averages. Extremes, not the middle, usually jam production.

• Throwing people or inventory at it. That just papers over the issue.

• Assuming bottlenecks stay put. They shift with mix, schedules, and staffing.

Sustaining Improvements

Tools built for plant-floor use make it easier to hold the line:

• Dashboards that surface delays as they happen

• Digital workflows that help teams stick to new processes

• Analytics that track whether improvements hold or start slipping

Bottleneck analysis isn’t a project you finish. It’s part of how you run the operation every day.

Bottlenecks set the pace for your entire operation. They hit throughput, drive up costs, and make delivery harder to meet. Finding them, and fixing them, requires more than gut feel. Tools like process mining, simulation, and real-time monitoring give you the visibility to see where flow is actually breaking down.

This isn’t work you do once and move on from. Bottlenecks shift with product mix, staffing, and demand. The teams that stay ahead are the ones treating bottleneck analysis as part of daily operations, not as a side project.

Tulip is used by manufacturers across a variety of industries to collect and visualize production data and identify sources of waste and inefficiency across production processes.

With data collected by Tulip, supervisors are able to have an informed discussion about where bottlenecks are occurring, why they're happening, and the impact that a bottleneck is having on the rest of production.

If you’re interested in learning how Tulip can help identify and eliminate bottlenecks across your operations, reach out to a member of our team today!

Bottlenecks set the pace for your entire operation. They hit throughput, drive up costs, and make delivery harder to meet. Finding them—and fixing them—requires more than gut feel. Tools like process mining, simulation, and real-time monitoring give you the visibility to see where flow is actually breaking down.

This isn’t work you do once and move on from. Bottlenecks shift with product mix, staffing, and demand. The teams that stay ahead are the ones treating bottleneck analysis as part of daily operations, not as a side project.