Thanks for the great post, Rory. In reality, I think the intended output often increases as any of the input factors increases. However, your point remains that increasing the most limiting input factor may increase the output much more than increasing other input factors.
Thanks Vasco! I think it depends on how well your particular system is a strict A > B> C> Done flow. If it’s as linear as car production, then it is indeed that case that if you make 100 wheels, 20 front axles and 40 windshields per day, you have made 20 cars (your bottleneck is the axles). And making 400 wheels the next day without changing your axle output has zero effect on the number of cars produced, the additional “productivity” is entirely wasted.
Not every process will be quite so linear, but at least for the elements that are, I do think that increasing the output of non-bottlenecks will have zero effect on the output you care about.
That makes sense. I was imagining inputs which are broader than car pieces, but narrower than just people (labour) and money (capita), like people in specific roles, or certain production equipment.
Thanks for the great post, Rory. In reality, I think the intended output often increases as any of the input factors increases. However, your point remains that increasing the most limiting input factor may increase the output much more than increasing other input factors.
Thanks Vasco! I think it depends on how well your particular system is a strict A > B> C> Done flow. If it’s as linear as car production, then it is indeed that case that if you make 100 wheels, 20 front axles and 40 windshields per day, you have made 20 cars (your bottleneck is the axles). And making 400 wheels the next day without changing your axle output has zero effect on the number of cars produced, the additional “productivity” is entirely wasted.
Not every process will be quite so linear, but at least for the elements that are, I do think that increasing the output of non-bottlenecks will have zero effect on the output you care about.
That makes sense. I was imagining inputs which are broader than car pieces, but narrower than just people (labour) and money (capita), like people in specific roles, or certain production equipment.