Little's law was named after Mr. John Little who was a professor at MIT's Sloan School of Management. The law states that by reducing work in progress and maintaining a processes average completion rate the lead time will be reduced too. On the same note, according to little's law increasing the average completion rate while maintaining the same level of work in progress will reduce also reduce the lead time.
How to calculate?
Little's law can is expressed with the following equation:
- Lead time = Amount of work in progress / Average completion rate