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Effects of Set a Limit on WIP (Work in Process)

When you set a limit on WIP, you create positive and negative effects.
#cycle-time
#queueing-theory
#work-in-process
Zettelkasten, October 24th, 2022.
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Notes

When you set a limit on WIP, you create positive and negative effects.

Positive

  • Reduces average cycle time.
  • It's the easiest way to force rate-matching between adjacent processes.

Negative

  • Permanently reject potential valuable demand.
  • Reduce capacity utilization because you lose the demand you rejected during periods of congestion.

References

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