Skip to main content

Unit 9 — Capacity & Bottlenecks: Making Flow Sustainable

Unit ID: FO-FND-09
Estimated Time: 120–180 minutes
Delivery Mode: Self-Guided or Catalyst-Led
Applies To: Founders, operators, managers, workflow owners
Prerequisites: Completion of Units 4–8 (Workflow, Exceptions, Data, Cross-Functional Flow, Roles)

Unit Purpose and Role in FlowOps

Unit 9 addresses one of the most dangerous misconceptions in operations:

“If we just work harder or hire more people, flow will improve.”

In reality, most operational breakdowns are not caused by a lack of effort — they are caused by invisible capacity constraints.

This unit teaches how to:

  • Identify true bottlenecks
  • Understand how much work the system can actually handle
  • Prevent overload before burnout occurs
  • Protect flow instead of reacting to collapse

Capacity is the governing force of every workflow. Until it is understood and respected, improvements in process, data, or metrics will plateau or fail.

Why Capacity Must Be Addressed Before Metrics

Many organizations attempt to measure performance before understanding capacity. This leads to:

  • Unrealistic targets
  • Chronic fire drills
  • Blame placed on people instead of systems

Unit 9 establishes the physical limits of the system so that metrics in Unit 10 are grounded in reality.

1. What This Unit Solves

The Problem It Addresses

Organizations typically experience capacity problems as:

  • Constant urgency
  • Work piling up in certain stages
  • Some roles overwhelmed while others wait
  • Quality dropping under pressure

These symptoms are often misdiagnosed as:

  • Poor prioritization
  • Weak accountability
  • Staffing issues

In reality, they are signals that capacity is being exceeded or misallocated.

Why Capacity Problems Are Hard to See

Capacity issues are difficult because:

  • Work queues hide delays
  • Busy people look productive
  • Bottlenecks shift over time
  • Exceptions distort perception

This unit makes capacity visible.

2. The Standard: What Capacity Is (and Is Not)

What This Section Defines

This section establishes a shared definition of capacity.

Capacity is the maximum sustainable rate at which a system or role can process work without degradation.

Capacity is not:

  • Maximum effort
  • Peak output on a good day
  • Overtime-fueled performance

FlowOps is concerned with sustainable capacity, not heroics.

Why Sustainable Capacity Matters

Operating above sustainable capacity causes:

  • Errors
  • Rework
  • Burnout
  • Exception amplification

Systems that rely on overcapacity are fragile.

3. Bottlenecks: The Governing Constraint

What a Bottleneck Is

A bottleneck is:

The point in the workflow that limits the rate of flow for the entire system.

Every workflow has at least one bottleneck at any given time.

Why Bottlenecks Matter More Than Everything Else

Improving non-bottleneck areas:

  • Does not increase throughput
  • Often increases WIP
  • Creates false progress

FlowOps focuses improvement at the bottleneck first, always.

Common Bottleneck Locations

Bottlenecks frequently occur in:

  • Review or approval stages
  • Specialized roles
  • Shared resources
  • Decision points

They rarely occur where the most people are busy.

4. Identifying the Bottleneck

Practical Bottleneck Identification Methods

You do not need complex math to identify bottlenecks.

Look for:

  • Where work waits the longest
  • Where queues form consistently
  • Where people feel constant pressure
  • Where exceptions spike

If work is waiting, capacity is constrained.

Avoiding False Bottlenecks

Not all congestion is a bottleneck.

False bottlenecks occur when:

  • Priorities are unclear
  • Inputs are poor
  • Data is missing

This unit assumes earlier FlowOps units are in place to avoid misdiagnosis.

5. Work-in-Progress (WIP) Limits

Why WIP Limits Exist

Unlimited WIP:

  • Hides overload
  • Increases cycle time
  • Degrades quality

WIP limits force reality to surface.

What WIP Limits Do (and Do Not Do)

WIP limits:

  • Protect bottlenecks
  • Reduce multitasking
  • Improve predictability

They do not:

  • Reduce total demand
  • Eliminate hard choices

They make tradeoffs visible.

Setting Initial WIP Limits

Start conservatively:

  • One piece of work per role or stage
  • Increase only with evidence

WIP limits should feel uncomfortable at first — that’s the point.

6. Throughput vs Utilization

The Utilization Trap

High utilization feels efficient but often destroys flow.

When utilization approaches 100%:

  • Small delays cascade
  • Recovery becomes impossible
  • Stress increases dramatically

FlowOps values throughput and stability over individual utilization.

Why Slack Is Not Waste

Slack is:

  • Buffer against variability
  • Space for improvement
  • Protection against burnout

Systems without slack break under pressure.

7. Capacity Signals and Early Warnings

What This Section Is About

Capacity issues should be detected before failure.

Early Warning Signals

  • Increasing queue length
  • Aging work
  • Repeated exceptions
  • Quality degradation

These signals indicate capacity strain, not discipline failure.

Responding to Warnings

Responses include:

  • Pausing intake
  • Reprioritizing
  • Adding temporary capacity
  • Redesigning the bottleneck

Ignoring warnings guarantees escalation.

8. Outputs of Unit 9

By the end of this unit, the organization must have:

  • Identified the primary bottleneck
  • Defined WIP limits for key stages
  • Established capacity warning signals
  • Agreed on response actions

Without these, flow remains reactive.

9. Governance

Ownership

The workflow owner owns:

  • Bottleneck identification
  • WIP limits
  • Capacity adjustments

Leaders support decisions that protect flow.

Review Cadence

Review capacity:

  • During flow reviews
  • When backlog grows
  • When exceptions spike

Capacity must be revisited as conditions change.

10. Common Failure Modes

  • Treating bottlenecks as people problems
  • Ignoring WIP limits under pressure
  • Measuring utilization instead of flow
  • Adding demand instead of fixing constraints

Capacity discipline requires leadership support.

11. Catalyst-Led Option

Catalyst may:

  • Facilitate bottleneck identification
  • Help set WIP limits
  • Coach leaders through constraint protection
  • Prevent short-term pressure from breaking flow

Catalyst’s role is to protect the system.

12. Completion Criteria

Unit 9 is complete only when:

  • The bottleneck is clearly identified
  • WIP limits are defined and respected
  • Early warning signals exist
  • Capacity responses are agreed upon

Do not proceed until these conditions are met.

COPY-PASTE CAPACITY & BOTTLENECK TEMPLATE

(Word / Docs friendly)

Workflow Name: __________________________
Workflow Owner: __________________________

Bottleneck Identification

Primary Bottleneck Stage / Role:

Evidence (queues, delays, pressure):

WIP Limits

Stage / Role

WIP Limit

Rationale
     

Capacity Warning Signals

Signal

Threshold

Response
     

Last Reviewed: __________________________

 

Back to top