CF Dictionary · Theory of Constraints Terms

Excess Capacity

When a factor has more capacity than the system needs. ToC says don't optimise it — it's not the constraint.

Excess capacity is when a factor has more capacity than the system needs. A machine that can produce 1000 units/hour when only 100 are required is excess.

Why ToC says "don't optimise it"

  • It doesn't help throughput. The bottleneck is still the bottleneck.
  • It can hurt. Speeding up excess-capacity steps produces inventory piles.
  • It's a local-optimum trap. Looks like improvement, isn't.

When excess capacity is good

CF's framing

CF treats excess capacity as one of three classes of factor:

Class Status Action
Constraint Near breakpoint Focus here
Excess capacity Way above breakpoint Don't optimise
Impossible Way below breakpoint Skip

Where excess capacity lives

  • Most of your systems. Most steps in most processes have excess.
  • Easy projects. Where you don't even notice the difficulty.
  • Routine skills. Once automatized.

"Most factors have excess capacity and should not be optimized." — criticalfallibilism.com