Find where the work gets stuck.

When an operation is slow, the most visible machine or busiest team often gets the attention. Buying equipment or adding staff feels like progress. The question is whether that change will get the customer's work finished sooner.

Start by following one job through the entire process. Where does it wait? What allows it to move? Which step limits completed output at the times that matter?

An operations framework should help you answer those questions, then compare practical fixes on service, quality and cost. The important unit is the completed customer outcome.

Define what “better” means

Suppose a testing service receives 840 items during an eight-hour day. Customers complain that results arrive late, although management says the intake team can handle 960 items per day and the main processing equipment has even more capacity.

Before diagnosing the problem, define the promise. Is every item due within four hours of arrival? Is there a same-day deadline? Are urgent jobs handled separately? What proportion misses the target, and when does that happen?

Throughput, turnaround time and on-time delivery are different measures. Completing 840 items eventually does not establish that each customer's deadline was met.

For this exercise, focus on the time from receipt to delivery of a completed result. That makes both waiting and administrative release relevant, alongside processing speed.

Draw the journey before choosing a fix

A simple process might be:

Arrival → intake → processing → review → result delivery

For each stage, identify the input, the people or equipment required, the usable processing rate and the rule for passing work forward. Include queues between stages. Ask whether some jobs repeat a step, follow a different route or require a specialist.

That map helps you distinguish three problems. Work may arrive faster than a stage can handle it. Completed work may wait for a scheduled handoff. Or the final approval may depend on someone who is available only at certain times.

Those problems require different interventions. “Improve efficiency” does not yet tell you which one exists.

Map the process, compare demand with usable capacity and find the constraint before evaluating new equipment. Otherwise you may buy more capacity at a stage that is already waiting.

Compare demand and capacity during the busy period

Assume 540 of the day's 840 items arrive evenly during the first three hours. Intake can process 120 per hour, continuously, with no initial backlog.

The early arrival rate is 180 per hour. Intake therefore accumulates 60 waiting items each hour, leaving a queue of 180 at the end of hour three.

PeriodArrivals per hourIntake capacity per hourEffect on the queue
First three hours180120Grows by 60 per hour
Remaining five hours60120Falls by 60 per hour while a queue remains

The remaining 300 items arrive evenly over five hours. Intake now has 60 units of spare capacity per hour, so the accumulated queue takes three more hours to clear. It disappears at hour six under these assumptions.

Daily capacity of 960 exceeds demand of 840. Yet the morning arrivals wait because capacity is not available when they need it. For an item joining the back of the 180-item queue, the intake wait is about 1.5 hours at 120 per hour, before its own processing and subsequent steps.

The daily average hid a timing problem. Compare the same unit over the interval relevant to the customer's promise.

Quick Exhibit Drill

A grain terminal receives harvest lorries all day. Its manager says unloading capacity is ample because the site can handle more lorries daily than arrive.

Unloading capacity
20 lorries per hour, 07:00 to 18:00
Queue at 07:00
Empty
PeriodLorries arriving per hour
07:00 to 09:0032
09:00 to 12:0024
12:00 to 18:0012

What is the largest number of lorries waiting at any point in the day?

Separate processing time from time spent waiting

Suppose the main equipment can process 200 items per hour, but intake releases work to it only every two hours. An item that has completed intake may wait for the next release even when the equipment is idle.

Increasing equipment speed does not remove that release delay or the morning intake queue. A smaller transfer batch might reduce waiting, provided it does not create disproportionate setup work or compromise the process requirements.

Then inspect the final stages. Results may wait for review or for a scheduled email export. A faster middle stage offers little benefit if completed work still sits until the same afternoon release.

This is the distinction I would keep returning to in the interview: how much time does the job spend being worked on, and how much time does it spend waiting for permission, people or other jobs?

Make each proposed fix answer the diagnosed cause

For the morning queue, explore whether arrivals can be spread across the day without making customers wait elsewhere. If the collection schedule is fixed, temporary intake support during the peak may be more appropriate.

For the two-hour transfer rule, examine why it exists. If it is only an administrative habit, more frequent releases may help. If each release creates a substantial setup burden, compare the saved waiting time with the extra work.

For a review bottleneck, test reviewer availability and the proportion of jobs needing specialist attention. Adding general intake staff will not resolve a decision that only a qualified reviewer can make.

Evaluate the whole journey after each change. Extra intake output can move the queue to review. Match the operating method to demand variation, product mix and the cost of holding work between stages.

Quick Prioritisation Drill

A hospital wants patients discharged sooner. Many patients spend the afternoon occupying beds while they wait for medicines from the pharmacy.

Pharmacist workload
Busy about 60% of each shift
Porter collections
11:00 and 15:00 only
Ready medicines
Wait about two hours for collection

Which change should the hospital investigate first to shorten discharge waits?

Choose your answer

Leave room for variation

Even when average demand is below capacity, unpredictable arrivals and variable job lengths can create queues. A team scheduled to be fully occupied on average has little ability to absorb a long job or a brief interruption.

Do not turn that observation into a universal “ideal utilisation” percentage. The appropriate buffer depends on variability, service promises, the cost of delay and the cost of capacity. A predictable production run and an emergency-response service need very different arrangements.

Use the case facts to assess the trade-off. If the last 5% of capacity utilisation produces a large increase in missed deadlines, it may be expensive rather than efficient.

Test the change using the customer's result

For this service, a sensible initial recommendation is to address peak intake and the release rule before purchasing faster processing equipment. State what you would measure during the trial: time from arrival to delivered result, performance during the morning peak, errors or repeat work, and additional operating cost.

Record stage-level waits as well. They help explain whether an improvement removed the constraint or moved it downstream. Keep urgent and routine work visible separately so a better average does not conceal deterioration for one group.

If the trial meets the service target at acceptable cost, expand it. If the queue moves to review, update the diagnosis and compare the next intervention. Operations improvement is a sequence of evidence-based decisions, not a one-time declaration of the bottleneck.

Try QSR Drive-Thru Slowdown to practise this approach in a different setting. Trace the customer from joining the queue to receiving the order, and explain which stage you would measure first. For a deeper look at the capacity denominator, continue with the capacity-utilisation framework.

Structure drill

Would your case structure convince an MBB interviewer?

QSR Drive-Thru Slowdown

Follow a drive-thru order to find where speed and accuracy break down. Present your approach to Casey, Case Room’s AI interviewer, then review feedback on your structure and starting point.

Frequently asked questions

Starting the diagnosis

Why is the operation late if intake can handle more than a day's demand?

Daily totals can hide a peak. In the example, intake can handle 960 items a day against 840 arrivals, yet 540 items arrive in the first three hours. During that window, arrivals outpace intake and a queue builds, even though the day looks comfortable on paper. Compare demand and capacity during the period that matters.

How do I work out the size of the morning backlog?

Subtract hourly capacity from the hourly arrival rate, then multiply by the length of the peak. Here, 540 items over three hours is 180 per hour against intake capacity of 120, so 60 items join the queue each hour. With no initial backlog, 180 items are waiting by the end of hour three.

What should I clarify before I start diagnosing an operations case?

Clarify the promise the operation is meant to keep. Ask whether every item is due within a set time of arrival, such as four hours, whether there is a same-day deadline and whether urgent jobs follow a separate route. Without that definition, you cannot say whether a queue actually matters to the customer.

Should I start with the busiest machine or team?

Map the whole journey before you decide where to focus. The most visible resource often attracts attention, but new equipment or extra staff only help if they get the customer's work finished sooner. Follow one job from arrival to result delivery. Note where it waits and what lets it move, then identify which step limits output.

What should my process map include for each stage?

For each stage, note the input, the people or equipment required, the usable processing rate and the rule for passing work forward. Show the queues between stages too. Then check for exceptions, such as jobs that repeat a step, follow a different route or need a specialist. A simple average would miss the delays these create.

Telling waiting time apart from capacity

Would faster processing equipment shorten turnaround?

Faster equipment will not help if work is waiting for reasons the equipment cannot affect. In the example, the equipment can process 200 items per hour, but intake releases work only every two hours. Items that have finished intake therefore wait while the equipment sits idle. A faster machine removes neither that release delay nor the morning intake queue.

Should I always recommend smaller transfer batches?

Smaller batches are not always the answer. Smaller, more frequent transfers can reduce the time items spend waiting between stages, but only if they do not create a disproportionate burden elsewhere. Weigh the waiting time you would remove against the extra handling each additional transfer requires, rather than treating smaller batches as automatically better.

Why do queues form when average demand is below capacity?

Averages hide variation. Arrivals can bunch unpredictably, and some jobs take much longer than others. A team scheduled to be fully occupied on average has little spare capacity to absorb a long job or a short interruption. When one occurs, a queue forms and may take time to clear.

Is there an ideal utilisation level I should aim for?

No universal percentage applies. The right buffer depends on how variable the work is, how strict the service promise is, how costly delay is and how expensive extra capacity is. A service with tight deadlines and erratic arrivals may justify more slack than one with steady, predictable work.

Choosing and testing a fix

What if customers' arrival times cannot be changed?

Consider temporary intake support during the peak instead. Spreading arrivals across the day is worth exploring first, but only if it does not simply make customers wait somewhere else. When the collection schedule is fixed, adding capacity for the busy hours tackles the morning queue directly.

Should I recommend scrapping the two-hour release rule?

First find out why the rule exists. If it is only an administrative habit, more frequent releases may cut waiting at little cost. If each release involves a substantial setup burden, compare the alternatives before changing it. The fix should address the actual reason for the rule, not just its visible effect.

What would be a sensible first recommendation in this example?

Address peak intake and the two-hour release rule before buying faster processing equipment. The diagnosis points to those two causes: a morning queue at intake, and items waiting for release while the equipment sits idle. Faster equipment would add cost without touching either delay, so it should not come first.

What should I measure when trialling a change?

Start with the customer's result: the time from arrival to delivered result. Also track performance during the morning peak, errors or repeat work, and any additional operating cost. Together, these show whether the change improved the service promise without creating new problems in quality or expense.

Can fixing one stage simply move the bottleneck elsewhere?

It can, so record the wait at each stage during a trial, not only the end-to-end result. Stage-level waits show whether the improvement removed the constraint or just moved it elsewhere. For instance, clearing the intake queue faster could leave more items waiting for the next release.

Operations Case Framework: Capacity and Process | Case Room