ABSTRACT

Little’s law can come in handy for creating pull within processing cells. To create pull, the objective of a cell should be to maintain a stipulated work in progress (WIP; also called a calculated threshold) that has been reached based on the desired standard lead times and the processing (completion) rate. The endeavor should be to maintain the calculated WIP and restrict entry of items until the WIP in the cell is reduced below the calculated threshold. To explain this point, let us look at an auto finance creditprocessing cell.