What does the term "bottleneck" refer to in a process?

The term "bottleneck" in a process refers to a work activity that limits the throughput of the entire process. This occurs when the capacity of a part of the process is less than the capacity of other parts, causing delays and reduced efficiency. When a bottleneck is present, it slows down the entire operation because work accumulates at that point, leading to longer completion times and inefficiencies. Identifying and addressing bottlenecks is crucial for improving process flow and overall productivity, as removing or mitigating the effects of a bottleneck can significantly enhance throughput and operational performance.

The other choices represent different aspects of operations management but do not accurately define a bottleneck. Performance indicators measure efficiency but do not specifically refer to limitations in throughput. Inventory management techniques involve managing stock levels and do not describe constraints within a process. Demand forecasting methods focus on predicting future needs rather than identifying limitations within operational workflows.