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Little’s Law in Production Systems with Yield Loss

Executive Summary

The basic relationship, WIP = CT x TH known as Little’s Law has wide application in both production systems as well as projects [1]. However, when some parts/tasks are never completed because they are either scrapped (yield loss) or have become obsolete (as in a project), the application becomes a bit more complex. This study presents an analysis of these situations and concludes with a more general set of Little’s Law equations, as referenced in Factory Physics [2].

Keywords: Little’s Law; WIP; Throughput; Cycle Time; Variability; Yield Loss

Author: Mark L. Spearman, PhD Director of Technical Solutions, Strategic Project Solutions Inc.,

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