The effective constraint on the maximum speed or level of an activity. Its use in economics is a physical analogy to the maximum rate at which a liquid can be poured through the neck of a bottle. In production, transport, or administration, the effective constraint is often a shortage of some specific form of labour or some particular piece of equipment. A major role of efficient management is to observe and remedy bottlenecks as they arise, or still better to foresee them and take action in time to prevent them from emerging.
|Reference: Oxford Press Dictonary of Economics, 5th edt.|