Balance flow with demand. Not capacity with demand

It might seem luring to isolate each process and look at it separately and analylize if it satisfies the market demand. However, the system should be looked at as a whole.
Therefore demand should not be balanced with capacity but with flow. The flow is determined by the capacity of bottleneck. Therefore the capacity of the process is determined by the bottleneck. The bottle necks should be placed at the beginning of a process to regulate the flow of the process.

The simplest way to recognize a bottle neck is to locate the machine with largest amount of inventory in front of it.