Little’s Law

What are the effects of strongly reduced lead times?

Shortening the lead time will not go unnoticed. The significantly shortening of lead times leads to a great number of important consequences. Here we will give you an enumeration of the consequences for such a process.

Overview / insight

First of all the amount of work in process (WIP) decreases directly proportional with the reduction of the lead time. Little’s law tells us:

WIP = LT x number of orders

Example:little's law afbeelding engels

This decrease brings transparency, we regain overview and we get insight in our own
situation. Above that a decrease of work in process has a strong psychological effect: it reduces stress and we get the feeling that we don’t have to do so much things at the same time any more.