Quick Definition:
Little’s Law is a fundamental principle of flow that states: Average Cycle Time = Average WIP / Average Throughput.
The Power of Little’s Law
Little’s Law provides a mathematical proof for why limiting WIP is so effective. If you want to reduce your cycle time (deliver work faster), you have two options:
- Increase Throughput: This is often difficult and requires more resources or better technology.
- Decrease WIP: This is much easier and can be done immediately by setting WIP limits.
Why It Matters
By understanding Little’s Law, PMs can move away from “gut feeling” and use data to improve their project’s flow and predictability.
