What is a bottleneck in a production system?

A bottleneck in a production system refers to a point of congestion where the workload exceeds the production capacity. This occurs when a specific step or stage in the manufacturing process cannot handle the volume of incoming work, resulting in delays and inefficiencies throughout the entire production system.

Bottlenecks can lead to a slowdown in the overall production process, as everything else must wait for that single point to catch up. Identifying and addressing bottlenecks is crucial for improving efficiency and maximizing the output of the production system, as it allows for more balanced operations and better resource allocation.

The other options do not accurately define a bottleneck. For instance, a situation where production costs decrease does not indicate any congestion or limitation in capacity. Similarly, exceeding design capacity relates to overall system capacity rather than identifying a specific point of overload. Finally, a stage of production that is always ahead of schedule would not represent a bottleneck, as it would imply smooth and efficient production flow rather than congestion.