Define the process
Set start and end points. Use times for the same order or batch at each operation.
Minutes for the same order or batch. Enter total processing time for the entire batch being tracked. Separate queue time before an operation from storage time between operations.
The first scenario applies to time addition, the second to Little’s Law. Lower WIP shortens lead time only if throughput stays unchanged.
Review the largest time component first. Assign every period once. Compare orders and batches only with matching process boundaries and time bases.
Set start and end points. Use times for the same order or batch at each operation.
Add setup and processing to queue, storage and transport time. Little’s Law instead uses average WIP and average throughput.
Flow efficiency here is processing time divided by lead time. Setup is excluded from processing. Little’s Law alone cannot determine flow efficiency.
Lead time = Σ(P + S + Q + W + T)All times in minutes, across all operations.
Σ processing ÷ lead time × 100Only processing time is included in the numerator.
Lead time = average WIP ÷ average throughputStable process, matching system boundaries and time basis; parts/h gives hours.
Operation 1 takes 30 minutes of processing, 10 of setup, 60 in queue and 5 in transport. Operation 2 takes 20 minutes of processing, 5 of setup, 30 in queue and 10 in storage.
| Item | Calculation | Result |
|---|---|---|
| Operation 1 | 30 + 10 + 60 + 0 + 5 | 105 min |
| Operation 2 | 20 + 5 + 30 + 10 + 0 | 65 min |
| Lead time | 105 + 65 | 170 min |
| Flow efficiency | 50 ÷ 170 × 100 | 29.41% |
| Little’s Law | 500 parts ÷ 100 parts/h | 5 h |
For a serial process, add processing, setup, queue, storage and transport time across all operations.
Here it is processing time divided by lead time. Setup is excluded from the numerator. Align definitions before comparing figures.
For a stable, defined process with matching averages: average WIP = average throughput × average lead time.
Lead time covers passage through the process. Cycle time describes one recurring production cycle.
Use operating hours or calendar hours consistently. Throughput per operating hour and WIP measured across calendar days need reconciliation.
A free tool by SYMESTIC, a cloud Manufacturing Execution System.